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

Vol. 143 WASHINGTON, TUESDAY, APRIL 22, 1997 No. 48 House of Representatives The House was not in session today. Its next meeting will be held on Wednesday, April 23, 1997, at 2 p.m. Senate TUESDAY, APRIL 22, 1997

The Senate met at 10 a.m., and was SCHEDULE The PRESIDING OFFICER (Mr. ROB- called to order by the President pro Mr. LOTT. Mr. President, today the ERTS). Without objection, it is so or- tempore [Mr. THURMOND]. Senate will be in a period of morning dered. business to accommodate a number of Mr. LEAHY. Mr. President, noting PRAYER Senators who wish to speak on a vari- that nobody has been seeking to be rec- The Chaplain, Dr. Lloyd John ety of subjects. There will be no roll- ognized for about a half-hour, I ask Ogilvie, offered the following prayer: call votes, however, during today’s ses- unanimous consent that I may proceed Lord God of Truth, who calls us to sion due to the observance of Passover. for not to exceed 15 minutes as in absolute honesty in everything we say, I remind my colleagues that the week- morning business. we renew our commitment to truth. In ly party luncheons normally held The PRESIDING OFFICER. Without a time in which people no longer expect today will be held tomorrow, Wednes- objection, it is so ordered. to hear the truth, or what’s worse, see day. f the need consistently to speak it, make By the unanimous consent agreed to us straight arrows who hit the target THE CRISIS IN OUR FEDERAL on Thursday of last week, the Senate JUDICIARY of absolute honesty. Help us to be peo- will begin consideration of the Chemi- Mr. LEAHY. Mr. President, I have ple on whom others always can depend cal Weapons Convention Treaty tomor- noted on the floor of the Senate a num- for unswerving integrity. Thank You row with, I believe, 10 hours of debate ber of times, the crisis in our Federal for keeping us from those little white allowed. Then on Thursday there will judiciary that Chief Justice Rehnquist lies that later on need big black ones be five motions to strike with 1 hour of has spoken of. The Chief Justice and to cover them up. May the reliability debate on each of those and, presum- others have spoken about the nearly of our words earn us the right to give ably, votes on each one of the five, 100 vacancies in our Federal judiciary righteous leadership. Thank you for with the expectation of a final vote at the district court level, at the court the wonderful freedom that comes from around 6 o’clock on Thursday. a consistency between what we promise Under the previously agreed time of appeals level, and at the Federal and what we do. You are present where agreement, Senators can anticipate court of appeals level. So far in this truth is spoken. Thank You for reign- votes on the treaty as early as Wednes- Congress—we have been in session now ing supreme in this Senate Chamber day afternoon—I want to emphasize for 4 months—we have confirmed only today. Now, dear Lord, we intercede for that—as well as a variety of votes on two Federal judges. It is a form of zero the distressed people of Grand Forks, Thursday morning and throughout population growth, as far as the Fed- ND, as they battle the rising waters of Thursday. As always, we will notify eral judiciary is concerned. We seem to the Red River. Give them strength, Senators of any scheduled votes or have this idea that if we do not get but, dear Lord, please bring to an end changes as soon as possible, or actions Federal judges we can, somehow—I am the devastation of this flood. In the we wish to take on the Executive Cal- not sure what we think we are going to name of our Lord and Saviour. Amen. endar. do. f Mr. President, I suggest the absence I will tell you one of the things we of a quorum. have not done. In a number of jurisdic- RECOGNITION OF THE MAJORITY The PRESIDING OFFICER (Mr. tions we are reaching a crisis situation LEADER HAGEL). The clerk will call the roll. where, instead of being able to have The PRESIDENT pro tempore. The The legislative clerk proceeded to criminal cases tried, instead of pros- able majority leader, Senator LOTT, is call the roll. ecutors being able to seek tough pen- recognized. Mr. LEAHY. Mr. President, I ask alties, they have to plea bargain be- Mr. LOTT. Thank you very much, unanimous consent that the order for cause they know they must keep up Mr. President. the quorum call be rescinded. with speedy trial mandates, yet there

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

S3391 S3392 CONGRESSIONAL RECORD — SENATE April 22, 1997 are not enough judges to have a speedy now been asked by a Member of the should not be either. There is no status trial, so they end up having to plea Senate, basically, to tell how she voted quo and never should be a status quo bargain. We do know that in many, on over 100 items in California. when it comes to a healthy environ- many jurisdictions it is clearly impos- Are we stooping so low as a body that ment. New pollution sources appear, sible to have a civil case heard. If you we are asking people how they voted? and none of us can predict today what are a business person with a just claim If they are up for confirmation, how the new pollution sources might be a against somebody and you want to they cast a secret ballot? Would you, decade from now. We know populations bring a suit, bring the suit, but they Mr. President, want to have somebody grow and they shift and pollutants ac- can just wait you out. If you are a liti- go back for the last 20 years and ask cumulate. So, if you are not always gant who has been damaged by some- how you voted every time you went to moving toward a safer and cleaner en- body, you want to bring a suit, they the voting booth in Kansas? I certainly vironment, then you are slipping back- can just wait you out because the would not want anybody to be able to wards. judges are not there to try the cases. ask that. I am very proud of all the The EPA conducted a 5-year review I think it is irresponsible for the votes I cast, but it is my business. It is of existing standards and compared leadership in this body to continue to not anybody else’s business. One of the these with new scientific research block Federal judges. This is some- great hallmarks of this democracy is about the tiny particulates and ozone thing that I have never seen in 22 years the secret ballot, and we should not that we breathe. When EPA issued new here. During times when the Demo- start asking people that, when actually goals to lower the level of these partic- crats were in control of the Senate it appears the real reason is just to ulates coming into our lungs and the when there was a Republican Presi- keep the stall in. ozone levels, the backlash was remark- dent, we have never done it to them. We have followed, in the past, the so- able. Opponents instantly attacked the During times when Republicans have called Thurmond rule of stalling a goals rather than sitting down to work been in control of the Senate, they President’s appointments to the judici- with the Congress and administration have not done this. But this time it is ary in about the last few months of to achieve these goals in a reasonable being done. It shows a lack of respon- their term in office. I have never seen and cost-effective timeframe. Instead sibility on the part of the Senate. It the stall start in the first few hours of of saying, ‘‘What do we do to make air and water safer for our children?’’ it shows a lack of responsibility on the a President’s 4-year term. was, rather, ‘‘We cannot possibly do part of individual Senators that they f this.’’ These are the same people who allow this to continue. It also shows a EARTH DAY 1997: THERE IS NO would do anything to save a child, but demeaning of the Senate. It violates STATUS QUO IN PROTECTING not to save the Nation’s children. the traditions of the Senate. THE ENVIRONMENT We ought to listen to the voices of There are some who do not care for more than 130 million Americans in 170 traditions in this body. Sometimes it is Mr. LEAHY. On another issue, Mr. President, since the first Earth Day in major cities who continue to breathe in things that the public does not see, 1970, Americans have gathered to cele- unhealthy air, including the city we like confining the reporters of debates brate the steps we have taken to clean are in today. When the Clean Air Act to something that looks like a sub- up our environment and to call atten- was drafted, we were unwilling to ac- terranean, medieval torture chamber tion to what still needs to be done. The cept the argument that the present because we want to expand the perks early Earth Day events helped create cost of environment regulation should and privileges of some of the officers of the modern environmental movement. define the future of our environment. the Senate. Our late colleague, Senator Edmund I would hate to think that the Senate They led directly to enactment of the first major environmental legislation, Muskie of Maine said, ‘‘The first re- is willing to toss aside decades, genera- the Clean Air Act. I remember with sponsibility of Congress is not the tions of tradition for momentary perks pride serving here with Senator Gay- making of technological or economic and privileges. I hope Senators will lord Nelson of Wisconsin, knowing judgments. Our responsibility is to es- start thinking that none of us owns the what he had done to help spark that tablish what the public interest re- seat in the U.S. Senate. None of us movement. quires to protect the health of per- owns a piece of the U.S. Senate. We are But I ask Senators and the adminis- sons.’’ merely 1 of 100 who serve here and we tration to look back at the debate that So, on this Earth Day I ask Senators serve here for all Americans, not just took place when we drafted this re- to go back to the original premise of for our partisan interests, not just for markable piece of legislation. At the the Clean Air Act and ask ourselves our political party’s interests, not just time of that first Earth Day, the laws what do we do to carry forward the for our own personal aggrandizement. to limit air pollution were disjointed, torch of environmental progress, not We serve here for the whole country. they were limited in scope. But since only for ourselves but for the next gen- We are not serving the country well on passage of the Clean Air Act, we have erations of Americans? I hope we might the question of judges. made considerable strides in reducing look at the biggest loophole in the This is something where judges, both some pollutants. The level of lead pol- Clean Air Act, allowing the dirtiest Republican and Democrat appointed, lution we and our children breathe powerplants to continue to operate are united in saying it is not respon- today is one-tenth what it was a decade with vastly inadequate pollution con- sible the way we have maintained this. ago—one-tenth. We have healthier chil- trols. We ought to go back and close Mr. President, I will continue to speak dren as a result. In fact, just using that this loophole now, in this session of out on this, but I hope we will wake up figure itself is a tribute to the success Congress. to the fact that the country needs to of the original Clean Air Act. One of the reasons it is so urgent is have these Federal judges. We should One thing we do know is Americans because of the deregulation of the elec- be ready to move forward. We have do not want to stop the progress we tric utility industry. We have the bene- about 25 in the pipeline. Let us start made and say, look what we did back fits of competition in the utility indus- having hearings and start going for- then, 10 years ago; it is what we do try. Some say it is going to be as much ward on them. Let us stop playing po- today to keep moving forward in clean- as $50 billion. Surely, with this we litical games. We have a woman, one of ing up our environment. I have heard ought to be able to offset the environ- the most qualified members of the some of the debate here in the Congress mental costs of utility deregulation California bar, who has found her ap- now, on the Clean Air Act, that it is and have some ability to have cleaner pointment blocked. Contrary to the not to strengthen it, not to make it air. normal tradition of hearing nominees better based on what we learned, but We ought to look at some of the coal- for the circuit court first, she was rather to weaken it. It is almost like fired production plants that were made to wait behind everybody else saying we took care of those children, grandfathered under the Clean Air Act. here recently. As did not escape notice, but tomorrow’s children we are unwill- One study says an annual increase of she was also the only woman nominee ing to help. emissions of 349,000 tons of nitrogen and was treated like a second-class cit- We also learned the ecosystem is not oxide, a component of ozone pollution, izen on the hearing schedule. She has static and that environmental progress comes from them. April 22, 1997 CONGRESSIONAL RECORD — SENATE S3393 Let us look at what happens here. We others because of their geology. The and we will help. Vermonters will help have plants that have been grand- rocky soils of Canada and much of the the people in North Dakota, as will fathered in. That means they are al- Northeast means that we have less Kansans and Californians and every- lowed to spew whatever they want. ability to buffer the acids, so our lakes body else. But it is one thing when you These plants are out here. You see the will die sooner. But in the case of see a disaster that happens all at once. pictures of them. But where do the pol- ozone, we are dealing with children, Unfortunately, there is a disaster in air lutants go from these 25 grandfathered not lakes or forests. As I said, my chil- pollution that happens drip by drip, plants? They move, of course, east. dren will live most of their lives in the day by day, and if we allow these pol- Many of the plants are in the Midwest next century, and I think about that lutants to continue to drift across our or toward the West, but the pollutants all the time. I also think children are Nation, those of us who are in the East move east. the same, whether they are Canadians, and Northeast also face a disaster, a If we are going to talk about what we Vermonters, or Ohioans. Children in disaster not of our making but a disas- do with the Clean Air Act, let us think Ohio, Missouri, West Virginia, and ter of our Nation’s making, a disaster of our children. My children are going other States are just as vulnerable as that may not have a great effect on to live most of their lives in the next those in Canada and Vermont. me, as I stand here in my fifties, but it century. But if we allow this to go on I called on the administration a year will on the children of Vermont and it with no changes, those who live in this ago to develop a mitigation program to will on their children’s children. part of our country are going to be se- address increased air pollution associ- This country can be justifiably proud verely damaged and those children who ated with utility restructuring. To of the steps it has taken in environ- are going to live most of their lives in date, nothing has been proposed. I do mental quality. When I look at the the next century are going to feel the not think we can wait any longer. This newly democratic nations of Eastern results of it. train is leaving the station and, unfor- Europe and I see how they struggle I have talked about the high environ- tunately, it is a polluting train. with health costs and development mental standards we have in Vermont. More than 10 States are already de- costs based on their own ignoring of Each State and community should veloping restructuring legislation. Two the environment for the last several take responsibility for controlling pol- States are implementing open competi- generations, I think how fortunate we lution within their borders. We have tion. With more than $50 billion in ex- are that we have been way ahead of done this in Vermont, implementing pected benefits from competition, we that in this country, but also know some of the toughest environmental should be able to afford the costs of en- that we have a long, long way to go. laws in the Nation. But, even though suring clean air for our children. A Let us look at this, not for those in we have imposed high environmental number of proposals have been ad- my generation, necessarily, but those standards on ourselves, we Vermonters dressed in the House, but none address- in my children’s generation. Let us are faced with an uphill battle when es this problem. The administration look for those who are going to live the pollution we are striving to control has not proposed a solution to it. I most of their lives in the next century. silently creeps into our State each hope that proposal will come. I will see That is something this Congress can night with the wind. We Vermonters what provisions it makes. do. Democrats and Republicans alike are deeply concerned about what is Earth Day reminds us that we share should join together and that is a leg- being transported by air currents. the air, the water and our planet. acy we can leave. We Vermonters are deeply concerned There can be no greater legacy that we Mr. President, I yield the floor. about what comes with the wind at leave behind for our children and our night when we are sleeping from other grandchildren than a society that is se- f parts of this country. Acid rain taught cure in its commitment to a healthy us that our tough environmental stand- and environmentally sound future. RESERVATION OF LEADER TIME ards were not enough to protect us. We On this Earth Day, I want all of us in The PRESIDING OFFICER. Under saw some of our healthiest forests die Congress to stop thinking only in re- the previous order, the leadership time off from pollution borne from outside gional terms of the Clean Air Act and is reserved. our region. This is an experience from the potential benefits and costs from which everybody can learn. Increased utility restructuring. We all share in f power generation at these 25 dirtiest the responsibility to leave behind for the next generations a healthy envi- plants is going to affect air quality MORNING BUSINESS across the country. We learned from ronment. The only way we are going to the acid rain debate that emissions be successful is to look at the quality The PRESIDING OFFICER. Under from these plants could be transported of our air, water, and ecosystems in the previous order, there will now be a more than 500 miles. wider terms. We have to address the period for the transaction of morning Let us look here. Here are the 25 top loopholes that allow these dirty plants business, with Senators permitted to polluters. This is where the pollution is to churn out tons of pollutants for the speak therein for up to 5 minutes each. going. If you look at this, you can see last 20 years. We cannot afford them a Mr. BUMPERS addressed the Chair. from the 25 top polluters, our part of free ride into the next century. The PRESIDING OFFICER. The Sen- the country is being hit especially Let me point out once more, we are ator from Arkansas is recognized. hard. My own State of Vermont, with not in this alone. The plants are here, Mr. BUMPERS. I thank the Chair. the toughest environmental laws you but the pollutants go across our coun- (The remarks of Mr. BUMPERS per- are going to find anywhere, cannot pro- try. I say this today because the Presi- taining to the introduction of S. 624 are tect ourselves by our own laws because dent is going to North Dakota, actu- located in today’s RECORD under these pollutants come across by every ally a place where two of these plants ‘‘Statements on Introduced Bills and wind that comes over Vermont from are. He will go representing our whole Joint Resolutions.’’) the west, carrying those pollutants. country and grant aid to the people Mr. BUMPERS. Mr. President, I yield There is no fence, there is no law who have been badly hurt. Any one of the floor and suggest the absence of a that we Vermonters can set up to pro- us, from whatever State we come from, quorum. tect us, but we in the Congress can pro- when we look at the pictures on tele- The PRESIDING OFFICER. The tect all the people in this region. vision and read the news accounts of clerk will call the roll. I will also say, Mr. President, if we what those people in North Dakota The assistant legislative clerk pro- do not look at these grandfathered have gone through, our hearts have to ceeded to call the roll. plans, it is not only the Northeast that ache for them. Mr. ROBERTS. Mr. President, I ask is going to be affected, all parts of the When a town is hit with both flood unanimous consent that the order for country are going to see their air qual- and fire, it is almost like a Biblical ref- the quorum call be rescinded. ity diminished. erence to devastation. We will, as a The PRESIDING OFFICER (Mr. In the case of acid rain, some areas great nation, as we always do in mat- ENZI). Without objection, it is so or- are more vulnerable to damage than ters of major disasters, come together dered. S3394 CONGRESSIONAL RECORD — SENATE April 22, 1997 THE CHILD CARE EXPANSION ACT welfare for over 5 years—they did two to applicants that desire to form consortium Mr. ROBERTS. Mr. President, I rise things, job training, that is obvious, to provide child care in geographic areas and the second thing was child care. within the State where such care is not gen- today to inform my colleagues of legis- erally available or accessible. lation that I introduced on April 10 Stringent new work requirements will move more welfare parents into (B) CONSORTIUM.—For purposes of subpara- called the Child Care Expansion Act. graph (A), a consortium shall be made up of This legislation—the first legislation the work force and create an even 2 or more entities which may include busi- I have had the privilege of introducing greater demand for quality child care. I nesses, nonprofit agencies or organizations, in this body—does address one of the think this legislation simply addresses local governments, or other appropriate enti- greatest challenges that faces families these issues through a responsible four- ties. today, and that is finding dependable pronged approach. There are no new (4) LIMITATION.—With respect to grant entitlements, no new mandates on funds received under this section, a State and affordable child care. may not provide in excess of $50,000 in assist- The demand for quality child care is businesses. This legislation fills a pressing need without creating more ance from such funds to any single applicant. rising. We have changes in family A State may not provide assistance under a structure, more working mothers, and bureaucracy or more government. Mr. President, I ask unanimous con- grant to more than 10 entities. significant changes in social policy, (e) MATCHING REQUIREMENT.—To be eligible sent that the text of S. 548 be printed which all have helped—all have to receive a grant under this section a State helped—drive this increase. In fact, in the CONGRESSIONAL RECORD. shall provide assurances to the Secretary There being no objection, the bill was only 2 years ago 60 percent of children that, with respect to the costs to be incurred ordered to be printed in the RECORD, as under the age of 5 were cared for by by an entity receiving assistance in carrying follows: out activities under this section, such entity someone other than a parent while S. 548 will make available (directly or through do- their mother or father was working. nations from public or private entities) non- We have had numerous studies that Be it enacted by the Senate and House of Rep- resentatives of the United States of America in Federal contributions to such costs in an indicate the availability of child care Congress assembled, amount equal to— has failed to keep up with this demand. SECTION 1. SHORT TITLE. (1) for the first fiscal year in which the en- Three out of four parents responding to This Act may be cited as the ‘‘Child Care tity receives such assistance, not less than 25 a national poll indicate that there is an Expansion Act’’. percent of such costs ($1 for each $3 of assist- ance provided to the entity under the grant); insufficient supply of child care, Mr. TITLE I—GENERAL EXPANSION OF (2) for the second fiscal year in which an President, especially for infants. ACTIVITIES entity receives such assistance, not less than Child care keeps America working. SEC. 101. SMALL BUSINESS CHILD CARE GRANT 331⁄3 percent of such costs ($1 for each $2 of PROGRAM. In 1994, three out of five women with assistance provided to the entity under the (a) ESTABLISHMENT.—The Secretary of children under the age of 6 were in the grant); and Health and Human Services (hereafter re- work force. A lack of dependable child (3) for the third fiscal year in which an en- ferred to in this section as the ‘‘Secretary’’) care causes these workers to lose time tity receives such assistance, not less than 50 shall establish a program to award grants to percent of such costs ($1 for each $1 of assist- and to be less productive. Child care States to assist States in providing funds to ance provided to the entity under the grant). benefits provided by employers help to encourage the establishment and operation recruit and retain quality employees. of employer operated child care programs. (f) REQUIREMENTS OF PROVIDERS.—To be el- It pays off with lower costs in regard to (b) APPLICATION.—To be eligible to receive igible to receive assistance under a grant the businesses that have a good child- a grant under this section, a State shall pre- awarded under this section a child care pro- pare and submit to the Secretary an applica- vider shall comply with all applicable State care program. And child-care providers and local licensing and regulatory require- are also small business owners who tion at such time, in such manner, and con- taining such information as the Secretary ments and all applicable health and safety contribute to the economy while keep- may require, including an assurance that the standards in effect in the State. ing our children safe. State will provide the funds required under (g) ADMINISTRATION.— Child care provides access to high- subsection (e). (1) STATE RESPONSIBILITY.—A State shall quality learning environments for chil- (c) AMOUNT OF GRANT.—The Secretary have responsibility for administering the dren in their critical learning years. shall determine the amount of a grant to a grant awarded under this section and for Just last week—I think it was last State under this section based on the popu- monitoring entities that receive assistance Wednesday—in the Wall Street Journal lation of the State as compared to the popu- under such grant. there was an article entitled ‘‘Good, lation of all States. (2) AUDITS.—A State shall require that (d) USE OF FUNDS.— each entity receiving assistance under a Early Care Has a Huge Impact on Kids, (1) IN GENERAL.—A State shall use amounts grant awarded under this section conduct of Studies Say.’’ And that article pointed provided under a grant awarded under this an annual audit with respect to the activi- out the monumental importance of section to provide assistance to small busi- ties of the entity. Such audits shall be sub- quality child care in the first 3 years of nesses located in the State to enable such mitted to the State. the infant’s life. And according to the small businesses to establish and operate (3) MISUSE OF FUNDS.— National Institute of Child Health and child care programs. Such assistance may in- (A) REPAYMENT.—If the State determines, Human Development, a study cited in clude— through an audit or otherwise, that an en- the article, high-quality child care pro- (A) technical assistance in the establish- tity receiving assistance under a grant ment of a child care program; awarded under this section has misused such vided by nurturing, stimulating care (B) assistance for the start-up costs related assistance, the State shall notify the Sec- givers improves the cognitive learning to a child care programs; retary of such misuses. The Secretary, upon and language skills. These are skills a (C) assistance for the training of child care such a notification, may seek from such an child depends on for the rest of his or providers; entity the repayment of an amount equal to her life. (D) scholarships for low-income wage earn- the amount of any misused assistance plus So child care is central to the imple- ers; interest. mentation of successful welfare reform. (E) the provision of services to care for (B) APPEALS PROCESS.—The Secretary shall I might add, that the concept of this sick children or to provide care to school by regulation provide for an appeals process child-care bill, as far as I was con- aged children; with respect to repayments under this para- (F) the entering into of contracts with graph. cerned, became very evident as we local resource and referral or local health de- (h) REPORTING REQUIREMENT.— went through welfare reform legisla- partments; (1) STUDY.—Not later than 2 years after the tion in the past session of the Congress (G) assistance for any other activity deter- date on which the Secretary first provides when I had the privilege of being the mined appropriate by the State; or grants under this section, the Secretary chairman of the House Agriculture (H) care for children with disabilities. shall conduct a study to determine— Committee and we were approaching (2) APPLICATION.—To be eligible to receive (A) the capacity of entities to meet the food stamp reform. assistance from a State under this section, a child care needs of communities within a It became obvious to me, if we were small business shall prepare and submit to State; going to provide self-reliance, inde- the State an application at such time, in (B) the kinds of partnerships that are being such manner, and containing such informa- formed with respect to child care at the local pendence, and the tools with which tion as the State may require. level; and about 2,000 people in Kansas needed to (3) PREFERENCE.— (C) who is using the programs funded under get off the welfare rolls and become (A) IN GENERAL.—In providing assistance this section and the income levels of such in- self-reliant—these people had been on under this section, a State shall give priority dividuals. April 22, 1997 CONGRESSIONAL RECORD — SENATE S3395 (2) REPORT.—Not later than 28 months (1) by striking ‘‘$2,400’’ in paragraph (1) and costs, training, scholarships or other after the date of enactment of this Act, the inserting ‘‘$3,600’’, and related activities. Businesses will be Secretary shall prepare and submit to the (2) by striking ‘‘$4,800’’ in paragraph (2) and required to match Federal funds to en- appropriate committees of Congress, a report inserting ‘‘$5,400’’. courage self-sustaining facilities well concerning the effectiveness of the grant (c) PHASE-OUT OF CREDIT FOR HIGHER IN- programs under this section. COME TAXPAYERS.— into the future. (i) DEFINITION.—As used in this section, the (1) IN GENERAL.—Section 21(c) of the Inter- The idea behind this 3-year grant is term ‘‘small business’’ means an employer nal Revenue Code of 1986 (relating to dollar for the small communities and small who employed an average of at least 2 but limit on amount creditable) is amended by businesses in that community to get not more than 50 employees on business days adding at the end the following new para- together to provide the child care facil- during the preceding calendar year. graph: ity. The $50,000 grant over 3 years will ‘‘(2) PHASEOUT OF CREDIT.— (j) AUTHORIZATION OF APPROPRIATIONS.— provide startup money for our smaller There is authorized to be appropriated to ‘‘(A) IN GENERAL.—The amount of the cred- carry out this section, $25,000,000 for each of it allowed under subsection (a) shall be re- communities, for the major businesses the fiscal years 1998 through 2000. duced (but not below zero) by the amount de- in that community to come together (k) TERMINATION OF PROGRAM.—The pro- termined under subparagraph (B). and provide a facility that otherwise gram established under subsection (a) shall ‘‘(B) AMOUNT OF REDUCTION.—The amount would not be achieved. terminate on September 30, 2001. determined under this paragraph equals the Second, this legislation includes an SEC. 102. PROJECTS FOR CHILD CARE BY OLDER amount which bears the same ratio to the expansion of the child and dependent INDIVIDUALS. credit (determined without regard to this care tax credit, targeting the credit to (a) COMMUNITY SERVICE EMPLOYMENT PRO- subsection) as— working parents who need it the most, GRAM.—Section 502 of the Older Americans ‘‘(i) the excess of— Act of 1965 (42 U.S.C. 3056) is amended by add- ‘‘(I) the taxpayer’s adjusted gross income not only the people who are trying to ing at the end the following: for such taxable year, over be self-reliant in regard to welfare re- ‘‘(f) In carrying out this title, the Sec- ‘‘(II) the threshold amount, bears to form but the low- and middle-income retary, and any entity entering into an ‘‘(ii) $10,000. family. It will increase from $720 for agreement under this title, shall take nec- Any amount determined under this subpara- one child, up to $1,080, and from the essary steps, including the development of graph which is not a multiple of $10 shall be current $1,140 for two or more children special projects, where appropriate, to en- rounded to the next lowest $10. to $1,620 for families with more than courage the fullest participation of eligible ‘‘(C) THRESHOLD AMOUNT.—For purposes of individuals (including eligible individuals de- one dependent. In addition, the credit this paragraph, the term ‘threshold amount’ is phased out for higher income wage scribed in subsection (e), as appropriate), in means— projects to provide child care under this ‘‘(i) $90,000 in the case of a joint return, earners, which means that the deficit title. Such child care projects shall, to the ‘‘(ii) $65,000 in the case of an individual exposure or the expenditure side is extent practicable, be carried out in commu- who is not married, and very, very limited. nities with child care shortages, as deter- ‘‘(iii) $45,000 in the case of a married indi- This legislation also addresses the mined by the appropriate State agency des- vidual filing a separate return. needs of parents who choose to work ignated under section 658D(a) of the Child For purposes of this subparagraph, marital Care and Development Block Grant Act of from the home. In this case, the Inter- status shall be determined under section 1990 (42 U.S.C. 9858b(a)).’’. nal Revenue Service rules are expanded 7703. (b) DOMESTIC VOLUNTEER SERVICE ACT.— to allow taxpayers who need to use the ‘‘(D) ADJUSTED GROSS INCOME.—For pur- Title IV of the Domestic Volunteer Service family room or some other room for poses of this paragraph, adjusted gross in- Act of 1973 (42 U.S.C. 5043 et seq.) is amended come of any taxpayer shall be increased by home-based business while caring for by adding at the end the following: any amount excluded from gross income dependents. The current IRS rules are ‘‘SEC. 427. PARTICIPATION IN PROJECT TO PRO- under section 911, 931, or 933.’’ much too strict and simply do not VIDE CHILD CARE. (2) CONFORMING AMENDMENTS.—Section make sense for people who want to ‘‘(a) IN GENERAL.—In carrying out this Act, 21(c) of such Code is amended— the Director, and any recipient of a grant or work at home but have to take care of (A) by striking ‘‘(c) DOLLAR LIMIT ON contract under this Act, shall take necessary the youngsters as well. AMOUNT CREDITABLE.—The’’ and inserting: steps, including the development of special Finally, this legislation encourages ‘‘(c) LIMITATIONS.— projects, where appropriate, to encourage ‘‘(1) DOLLAR LIMIT.—The’’, our Nation’s most experienced care the fullest participation of individuals 55 and (B) by redesignating paragraphs (1) and (2) givers, our older Americans, who are older, in projects to provide child care under as subparagraphs (A) and (B), respectively, already participating in federally sup- this Act. Such child care projects shall, to and ported work programs, to provide child the extent practicable, be carried out in (C) by striking ‘‘paragraph (1) or (2)’’ in the care services in communities where it communities with child care shortages, as last sentence and inserting ‘‘subparagraph determined by the appropriate State agency is feasible to do so. Obviously, there is (A) or (B)’’. a bonding that goes on, Mr. President, designated under section 658D(a) of the Child (c) EFFECTIVE DATE.—The amendments Care and Development Block Grant Act of made by this section apply to taxable years in regard to grandkids and also grand- 1990 (42 U.S.C. 9858b(a)). beginning after December 31, 1997. parents. This bill certainly encourages ‘‘(b) FUNDING OF PROJECTS.—The Director SEC. 202. EXPANSION OF HOME OFFICE DEDUC- that bonding. may, using amounts available for experi- TION TO INCLUDE USE OF OFFICE This legislation includes no new enti- mental projects under section 502(e), provide FOR DEPENDENT CARE. tlements or mandates on the business for the development of special projects under (a) IN GENERAL.—Section 280A(c)(1) of the subsection (a).’’. Internal Revenue Code of 1986 (relating to community. It fills a pressing need without creating more bureaucracy or TITLE II—TAX INCENTIVES FOR certain business use) is amended by adding DEPENDENT CARE at the end the following: ‘‘A portion of a Government. Child care is an issue that impacts each and every one of us. SEC. 201. EXPANSION OF CHILD AND DEPENDENT dwelling unit and the exclusive use of such CARE CREDIT. portion otherwise described in this para- While parents continue to struggle to (a) INCREASE IN CREDIT PERCENTAGE FOR graph shall not fail to be so described if such meet the constant demand of work and LOW AND MIDDLE INCOME WORKERS.—Section portion is also used by the taxpayer during family, it seems to me we must con- 21(a)(2) of the Internal Revenue Code of 1986 such exclusive use to care for a dependent of tinue to do our part to expand the child the taxpayer.’’. (relating to credit for expenses for household care options and protect our Nation’s and dependent care services necessary for (b) EFFECTIVE DATE.—The amendment made by this section applies to taxable years most valuable resource—our children. I gainful employment) is amended to read as urge my colleagues to join me in sup- follows: beginning after December 31, 1997. ‘‘(2) APPLICABLE PERCENTAGE DEFINED.—For Mr. ROBERTS. Mr. President, first, port of America’s kids and cosponsor purposes of paragraph (1), the term ‘applica- the Child Care Expansion Act includes the Child Care Expansion Act. ble percentage’ means 30 percent reduced funding for a short-term, flexible grant I yield the floor. (but not below 20 percent) by 1 percentage program to encourage small businesses The PRESIDING OFFICER. The point for each $2,000 (or fraction thereof) by to work together to provide day care Chair recognizes the Senator from which the taxpayer’s adjusted gross income services for employees. This program is Maryland. exceeds $20,000.’’ (b) INCREASE IN MAXIMUM AMOUNT CRED- a demonstration project that will sun- Ms. MIKULSKI. Mr. President, I ask ITABLE.—Section 21(c) of the Internal Reve- set at the end of 3 years. In the mean- unanimous consent I be permitted to nue Code of 1986 (relating to dollar limit on time, small businesses will be eligible speak for such time as is necessary for amount creditable) is amended— for grants up to $50,000 for startup the nomination of Alexis Herman. S3396 CONGRESSIONAL RECORD — SENATE April 22, 1997 The PRESIDING OFFICER. Is this and I have known her for 20 years, I want to just underscore two dif- part of the hour that is under the Dem- when she worked in the Carter admin- ferent items, Mr. President. First, the ocrat leader’s control? istration and I was a Congresswoman. Labor and Human Resources Commit- Ms. MIKULSKI. Yes. Alexis Herman comes to us having tee had the opportunity to go through The PRESIDING OFFICER. Without graduated from a Catholic college in the hearings. These were extensive objection, it is so ordered. New Orleans, Xavier University. She background hearings on the qualifica- f was a social worker, working at Catho- tions of Ms. Herman. I will have an op- ALEXIS HERMAN TO BE lic Charities in foster care. Then she portunity, when the Senate finally SECRETARY OF LABOR wanted to make sure she prevented comes to consider the nomination, to family breakups, and she began work- review the record on her background Ms. MIKULSKI. Mr. President, once ing in job training and placement. In and experience, but Senator MIKULSKI again I am deeply disturbed that Alexis 1974, she headed up a black woman’s has done so this afternoon in a very, Herman’s confirmation to be Secretary employment program that then, be- very thorough way. This is really an of Labor has been held up. Miss Her- cause of its innovation and her man- extraordinary individual. man is being subjected to a level of agement skill, went to nine other In spite of many allegations and scrutiny that is not deserving of her cities. charges which have been responded to, nor this institution. Miss Herman is Miss Herman brings to us a back- we are in a situation where the one being held hostage for political rea- ground where, at age 27, she was run- Cabinet office which is there to hold sons. ning a 10-city program to help minor- the spokesperson for working families What is the real reason for the delay? is vacant—vacant—and the nomination Well, my colleagues on the other side ity women break into the work force. is being held hostage because of a dif- of the aisle say it is because of an Ex- Is that not a Secretary of Labor we ecutive order that would encourage want to move people from welfare to ference with the President of the Unit- Federal agencies to consider the use of work? At 29, she was the youngest per- ed States signing an Executive Order something called ‘‘project labor agree- son ever named to head the Women’s regarding project labor agreements, or ments’’ on any construction contract Bureau of the Department of Labor. what they call PLA’s. Those are ar- sent out for bid. How ironic that it is Following that first Government serv- rangements and agreements that can my colleagues that would hold up the ice, she then went on to run her own be done voluntarily within States, that nomination of the next Secretary of business and help manage the 1992 more often than not result in the sav- Labor because of an Executive order Democratic convention. She is a coali- ing of taxpayers’ money and the reduc- that asks contractors and subcontrac- tion builder. Throughout her career, tion of accidents on the construction tors who bid on a Federal project to she has worked with parties on all site. PLA’s also allow for the relation- consider paying union wages, provide sides to find good solutions. If you go ships between workers and manage- union-scale benefits, and use union hir- back and talk with the people who ment to be worked out in a very con- ing halls for labor—projects that are fi- have worked for her over the years, ad- structive and positive way to make nanced with taxpayers dollars. vocacy groups believe she will speak up sure we have ontime results and This order does not require the con- for those who are left out and left be- achieve high quality outcomes. tractor to sign a collective bargaining hind. PLA’s have been done under Repub- agreement. It just makes sure that we The community that provides the lican Governors and Democratic Gov- help our workers maintain a decent jobs, the business community, feels ernors, in New York, New Jersey, and wage and living standard. My Repub- that she is a coalition builder and helps Nevada, among others. Now the Presi- lican colleagues would hold up the them solve issues from regulatory re- dent of the United States wishes to ex- nomination of the Secretary of Labor, form to how to do outreach in the mi- ercise his power to issue an Executive whose responsibility it is to enforce nority communities. order. That is differed with by Mem- our Nation’s labor laws, because we She will bring to the Labor Depart- bers. But they have the right to go into want to ensure that contractors work- ment a lifelong commitment to mak- court and challenge that at a later ing on Federal projects abide by Fed- ing sure that we create an opportunity time. eral laws. ladder in this century. She has said The point that Senator MIKULSKI, I want the nomination of Alexis Her- publicly and to me privately that she Senator REID, others, and I will make man and the debate about her to focus wants to accept the challenge of mov- is that if our Republican friends have a on her qualifications and her com- ing people from welfare to work in a difference with the President on the petency to lead the Department of new era of time limit on welfare. She issue of the PLA’s, why hold up Alexis Labor. This should not be a debate on wants enhanced health and pension se- Herman, who is the spokesperson for President Clinton’s Executive order. I curity for working people. She wants working families in this country, from call upon the leadership of the other to ensure a safe and equal opportunity being able to assume the responsibil- side of the aisle to let this nomination workplace, and she wants to work with ities of that particular position? go forward, let there be debate on the the President in this on extending the It is a very important position. We Senate floor about Miss Herman’s com- lifelong education and training oppor- have several pieces of legislation that petency. Is she a coalition builder? Can tunities for our citizens. are on the calendar which relate to the she provide leadership? And does she Mr. President, we need a Secretary of conditions of working families in this provide a framework for the future? Labor. We need someone who is a lead- country, including the so-called TEAM That is what the debate should be all er, who is effective, and who has a vi- Act, the so-called comptime bill, and about. sion for the future. I really encourage others, which we will have an oppor- My constituents are deeply con- that the nomination of Alexis Herman tunity to debate at some time. These cerned that Miss Herman, who brings be brought up after we finish our dis- are pieces of legislation that will have so many credentials and competency, cussion on the chemical weapons trea- a direct impact on working conditions has been waiting month after month, ty. and wages of working families. Still, subjected to character assassination, I yield the floor. we do not have a Secretary of Labor in leaks in the press that distort her The PRESIDING OFFICER. The Sen- place, who will speak for workers, and record, and now, just when she thought ator from Massachusetts. that is because there is a small group she was going to come to the Senate Mr. KENNEDY. Mr. President, I want of Senators who are effectively holding floor, not have that opportunity be- just to commend the Senator from her hostage. cause some people are cranky about an Maryland for an excellent presentation We understand today is the Passover Executive order issued by President and one which I hope our friends and holiday, which is a period of celebra- Clinton. Be cranky with President colleagues on the other side of the aisle tion and a very special time of con- Clinton. Do not be cranky with Alexis would hear and heed. I see my good templation and thought and prayer by Herman or hold up her nomination. friend from Nevada on the floor, who many Americans, and therefore we are We cannot have this held up because will address the Senate in a few mo- not doing the Senate’s business, and we of crankpots. I know Alexis Herman ments as well about the labor nominee. do not ask the Senate to consider the April 22, 1997 CONGRESSIONAL RECORD — SENATE S3397 nomination today. We understand to- under consideration within the admin- vigorously enforces this provision of morrow we are considering the chemi- istration. the labor laws, and unions know how to cal weapons treaty. That is extremely That order would direct Federal and do comply. Furthermore, in the 21 important. agencies to consider—not mandate— so-called ‘‘right-to-work’’ States, no Mr. President, this issue was alleg- the use of so-called project labor agree- worker can ever be required to give fi- edly agreed to be considered on the ments on Federal construction nancial support to a union. In the floor of the U.S. Senate last week. But projects. other 29 States, if the particular con- Members on the other side of the aise Such agreements have been used on tract provides it, workers can be re- reneged on that agreement, so that we large-scale construction projects, in quired to pay a fee to the union while were unable to come to completion on the public and private sectors, for dec- workers are employed on the job site. this nomination. Now, Mr. President, ades. Examples of Federal projects However, no employee can ever be we are calling on the leadership on the built under PLA’s include the Grand forced to join the union, or to pay for other side to give us an opportunity to Coulee Dam in the 1930’s; atomic en- union activities that are not related to have Senate consideration of this ergy plants in the 1940’s; Cape Kennedy collective bargaining. nominee and to stop this attempt to in the 1960’s; and today, on the Boston PLA’s thus are beneficial to project play hostage with the President’s Harbor cleanup. Such agreements are owners and workers alike. Further, it’s nominee. She is someone who was re- also being used in the present decom- clear that the President has the au- ported out favorably by all the mem- missioning and decontamination of nu- thority to issue an Executive order bers of the committee. clear facilities at Oak Ridge, TN; Sa- dealing with Federal procurement It is time to end these kinds of vannah River, SC; Fernald, OH; Han- practices. President Bush did just that, games. The American people want us ford, WA; Idaho National Engineering when, in October 1992, he issued an Ex- to find ways of working together, not Labs, ID; and Lawrence Livermore, CA, ecutive order forbidding Federal agen- to be blocking the consideration of a among others. cies to require PLA’s on Federal con- nominee who has the support of Repub- In the private sector, too, PLA’s have struction projects. Republican attacks licans and Democrats alike. been used on many projects across the on President Clinton’s power to issue Mr. President, I hope at the time Nation, including the construction of an order directing the consideration of that we are back into full session, that Disney World in Florida, the Toyota such agreements thus are disingenuous we will be able to set a time in the next plant in Georgetown, KY, the Trans- at best. very few days, on the completion, per- Alaska Pipeline System in Alaska, and It’s particularly unconscionable to haps, of the chemical weapons conven- the Saturn auto plan in Tennessee. hold up Alexis Herman’s nomination on tion, or perhaps even during the con- State governments use PLA’s as well. this basis. The country’s working fami- sideration of that there can be time Governor Pataki of New York issued an lies deserve a representative, and the found for a short discussion of the mer- Executive order strikingly similar to Republicans know it. It’s time for the its of this nominee. She is an outstand- the Clinton proposal in January 1997. political extortion to stop, and for the ing nominee. She will perform her The Nevada and New Jersey Governors Republicans to give up their hostage. work well. It is wrong to hold up the recently issued similar orders. State Free Alexis Herman, and free her now. President’s nominee. The President, projects constructed under PLA’s in- Mr. GREGG addressed the Chair. after all, won the election. When you clude the Boston Harbor cleanup; modi- The PRESIDING OFFICER. The Sen- win the election, you have the time- fications to the Tappan Zee Bridge in ator from New Hampshire. honored privilege of selecting your own New York; the Southern Nevada Water Mr. REID. Parliamentary inquiry, advisers. There is one standard that is System improvements project outside Mr. President. used for the President’s advisers who Las Vegas; and many others. Mr. GREGG. Without yielding the come and go at the time the President What PLA’s do is require contractors floor, I will yield. is elected. There is a different set of to comply with the terms of labor Mr. REID. I understand that. I ask criteria when we talk about those who agreements for the duration of the the Parliamentarian this. I thought have more extended terms, such as the project. The advantages of such PLA’s from 12 until 1 o’clock was under the Federal Reserve Board and some of the are many. Projects are more often control of the Democratic leader. other agencies; those continue at the completed on time, because a skilled The PRESIDING OFFICER. That is time of a particular administration and labor supply is always available. There correct. can lapse on to another administra- are fewer cost overruns, because work- Mr. GREGG. Mr. President, I believe tion. We have even a higher standard place disputes are resolved through we are in morning business, is that cor- when we are talking about lifetime ap- grievance-arbitration procedures, in- rect? pointments, like Federal district stead of by strikes or lockouts, which The PRESIDING OFFICER. The pe- judges and circuit court judges, and the cost valuable work time for employers riod is for morning business until the highest standard for the Supreme and employees alike. Projects built hour of 2 o’clock, with the hour from 12 Court. That is something we all under- under PLA’s have lower accident rates, to 1 reserved for the Democratic leader stand. because contractors can hire highly and the hour from 1 to 2 reserved for But we are at the point now where skilled and trained employees. Produc- the Senator from Georgia. the President, who won the election, tivity increases as well, because of the Mr. GREGG. Mr. President, I ask has indicated that he wants Alexis Her- higher skill level of workers. unanimous consent that I be allowed to man as his adviser on labor for the Opponents of PLA’s claim that such proceed for 5 minutes as in morning country’s working families. It is wrong agreement unfairly deny contracts and business and to the extent that it af- to continue to hold her hostage, and I jobs to nonunion firms and individuals. fects the time of the Democratic lead- hope we move ahead with consideration This is simply not true. er, that that time be added to his time of her nomination. Nonunion contractors can and do bid at the end of the hour, as originally Mr. President, the Republican leader- on jobs where PLA’s are in effect. For scheduled. ship is holding the nomination of Alex- example, in the Boston Harbor project, The PRESIDING OFFICER. Is there is Herman hostage to an unrelated pol- fully 40 percent of the subcontractors— objection? icy dispute. Ms. Herman was reported over 100 firms—are nonunion. Simi- Without objection, it is so ordered. out of the Labor Committee unani- larly, on the Idaho National Engineer- The Senator from New Hampshire. mously 2 weeks ago. Republicans and ing Labs PLA with the Department of f Democrats alike voted in her favor. Energy, 30 percent of the subcontrac- The Republican leadership had sched- tors were nonunion. THE BUDGET NEGOTIATIONS uled a floor vote on her confirmation Similarly, nonunion workers can and Mr. GREGG. Mr. President, I want to last week, but in an abrupt about-face do work on sites where PLAs are in raise a couple of points here as we they reneged on that commitment. The place. Unions are required by law to move through the budget negotiations. reason was the leadership’s disagree- refer nonmembers to jobs on the same There are ongoing negotiations with ment with a proposed Executive order basis as union members. The NLRB the White House relative to trying to S3398 CONGRESSIONAL RECORD — SENATE April 22, 1997 reach a budget agreement. But those this country, and, if not, borrowed under a majority controlled by the Re- negotiations deal with a budget that from our children. In either event, it publicans and the Democrats. When I will run through the year 2002. My con- will aggravate the balance in the Medi- first came here, the Democrats had the cern is that, as we look at a budget in care trust fund and continue to drive majority, and now the Republicans that short timeframe, action which we the Medicare trust fund toward insol- have the majority. take to address a budget that would vency. During the times that the Democrats reach balance by 2002 would have im- The second area the President has had the majority, there were some very pact beyond that period, obviously, be- taken the same course of action on is controversial nominees that came for- cause we will put in place decisions in the area of Medicaid. In the Medic- ward, but they always came forward that are not going to end at the time aid accounts, he has proposed $16 bil- and there was a vote. My concern is that budget concludes in 2002, but it lion of new spending during the budget that we are now entering into a new will affect spending beyond that time. period between 1998 and the year 2002. era, where the majority is using nomi- In two major accounts, the Presi- But that $16 billion in new pro- nees of the President—and there is no dent’s budget, as proposed, is basically grammatic spending that occurs in the question about their capabilities and a budget that has a low initial cost but first 5 years explodes in the next 4 their credentials to hold the job, and has a dramatic, explosive cost in the years to $34 billion, for a 113-percent there is nothing relating to their moral outyears when you get past the year increase. That is a 113-percent increase qualifications. They are simply holding 2002. Both in the Medicare account and over the initial spending period—an- up the President’s appointees because the Medicaid account, the President’s other explosive expansion of an entitle- they don’t want them to be selected, or budget, as sent up here, has significant ment program through the process of they have some other issue and they increases in spending, but those in- adding new benefits. In this area, we are trying to hold the nominee hos- creases in spending that are for the 5- are talking about new benefits for dis- tage. year timeframe running through 2002 abled, illegal immigrants, and new ben- As an example, Alexis Herman has are really minuscule compared to the efits for children of illegal immigrants. been nominated to be the Secretary of spending that will occur in the period And so you have this dramatic increase Labor. We were initially told we are not going to get her out of committee after 2002. I believe this needs to be in spending. When you combine these until there is comptime legislation highlighted because, if it is not, I am two proposals—the President’s pro- marked up in the Labor Committee. afraid we will adopt initiatives in the posal in Medicare and the proposal in That hurdle has gone over. The legisla- President’s budget that come out of it Medicaid—the new spending accounts tion is marked up. Now there is an- as part of this process of building our aggravate and compound the problem other hurdle this woman must find her- own budget and reaching a bipartisan even more dramatically. self facing. Now we are told that there budget. You see here that in the next 5 years, I am concerned that we will adopt which is the budget period the Presi- is an issue that deals with an opposed Executive order that would permit initiatives that will cost us dramatic dent sent us on this, there is $49 billion Federal agencies to consider requiring amounts of money outside the budget in new spending in Medicare and Med- contractors on certain large Federal window and, once again, aggravate the icaid accounts. As you move into the construction projects to comply with real problem that confronts the coun- outyears, that $49 billion translates labor contracts for the duration of the try. We would be passing on to our into $127 billion in new spending, or a project. Governor Miller of Nevada is- children a country with huge debts of 159-percent increase because of new sues a similar order and a project labor obligation that our children will never programmatic activity. Now, what we agreement is now in use on a very large be able to pay. are talking about here—and this needs construction project outside of Las Let me highlight this in specifics. to be stressed—is new programmatic Vegas to bring water into Las Vegas. Under the President’s proposal for activity. We are not talking about Mr. President, I respectfully submit Medicare, there is $33 billion in new maintaining the Medicare trust fund or Medicaid trust funds; we are talking that holding Alexis Herman’s nomina- spending during the budget window, tion hostage to this is wrong. To hold through the year 2002. When you go be- about adding to that program. Mr. President, we are talking about her nomination hostage over an Execu- yond the year 2002 to the period of the tive order is wrong. She is qualified next 4 years—this is a 4-year period, increased spending as a result of brandnew programs. So as we move morally and educationally and is expe- and it would run past that, obviously— rienced. Therefore, she should be work- there will be an explosion in the cost of down this road of trying to reach agreement on this budget, I think we ing for the taxpayers of this country in those new programs. Those new pro- have to be very sensitive that we not the job she was selected to do by the grams, which cost $33 billion in the add a lot of new programs that may President. What is happening is not next 4 years, in the 4 years after that look affordable over the next 4 or 5 right. will cost $93 billion in new spending. years, but which, in the outyears, be- We can get into the merits of the That represents a 182-percent increase comes totally unaffordable and further issue of the majority holding Alexis over the 5-year period. That is in the aggravates what is already a very seri- Herman hostage, but should that really Medicare accounts. be the case? If we looked at it closely, Some of these new programs involve ous situation, because we know the Medicare trust fund is going bankrupt we would find that in the State of Ne- the following—and I agree they are in 2000 and this will only aggravate vada, as an example, of the seven con- probably programs which we all feel that. All of these costs, if passed on to tracts awarded, three went to nonunion would be nice. But the question is: Can our children, may end up making their contractors. I assume that is what the we afford them? Can we afford to pass capacity to have a prosperous and pro- majority is concerned about. They them on to our children? Can we afford ductive country much less. This must have this problem with unions. Well, in to pass $93 billion in new spending on be focused on as we go down the road Nevada, even though the Governor en- to our children, which is outside the to reaching a budget agreement. tered this order, three of the contracts budget window? Some of the new pro- I yield back such time as I may have went to nonunion contractors, and four grams include: A new initiative in the left. I appreciate the Senator from Ne- went to traditional union contractors. area of cancer screening, for $2.5 bil- vada allowing me to speak at this Of the 36 contractors who bid on the lion; a direct payment to hospitals, point, during the time of the Demo- seven contracts, 16 were nonunion, 20 outside of AAPCC, $26 billion; changing cratic leader. were union. the way the Medicare accounts for the The PRESIDING OFFICER. The The point I am making, Mr. Presi- part B, 20-percent charge, which ac- Chair recognizes the Senator from Ne- dent, is that this issue, this proposed counts for $42 billion; and a whole list vada. Executive order, is just that—an issue. of other new initiatives, all of which f We should debate it. It is wrong and add up to $93 billion in spending that is there is legislation to hold hearings or outside the budget window, and is new PRESIDENTIAL NOMINATIONS try to get the Executive order over- spending for new programs and which Mr. REID. Mr. President, since I have turned, but we should not hold up this will have to be paid by the taxpayers of been here in the Senate, we have been woman’s nomination. April 22, 1997 CONGRESSIONAL RECORD — SENATE S3399

Are we going to continue without a Mr. DEWINE. Mr. President, I ask portant that we do so because our will- Secretary of Labor until the majority unanimous consent to speak for 10 min- ingness to discuss it now, our willing- leadership gets their way on every utes, and I also ask unanimous consent ness as a people to be open and to orga- labor issue? I hope not. I don’t think that the time for the Senator from nize a donation is really a matter of that hostage holding is a proper way to Georgia be extended by 10 minutes. life and death. pass good legislation. It is not the way The PRESIDING OFFICER. Without My wife, Fran, and I faced this issue to have the President’s nominees cho- objection, it is so ordered. when our daughter, Becky, was killed sen. The President has a right to select f almost 4 years ago. This was not some- who he wants to work in these very ORGAN DONATION STATUS thing that we had thought about real- sensitive Cabinet positions. He has cho- REPORT ly. It was not something that we had sen a woman that is certainly quali- talked about as a family. When we fied. Mr. DEWINE. Mr. President, I rise were asked the question whether we Mr. President, this woman is a grad- today on the occasion of National would do this or not, my wife, Fran, uate, as is my colleague, the junior Organ and Tissue Donor Awareness turned to me, and said, ‘‘You know Senator from Maryland, from Xavier Week. I rise to challenge all of us to that is what Becky would have wanted University in New Orleans, LA. In 1977, take actions that will eliminate the us to do.’’ So we did it. she was the youngest director ever of chronic shortage of organs available I think, Mr. President, that most the Woman’s Bureau at the Depart- for transplant in the United States. people would want their loved ones to Mr. President, this Nation faces a se- ment of Labor. She is certainly enti- do the same thing. Too often the survi- vere organ shortage. I have talked tled to this job by virtue of her quali- vors—people who are faced with life’s about this issue several times on the fications. most horrible tragedy—just do not Senate floor. Last year at this time We are willing to debate these issues want to do it. They do not know that when I talked about it, at least eight and work for compromises if, in fact, the loved one would have wanted them people in America every day were that is necessary. But the majority is to do it. dying while waiting for organ trans- saying that it is their way or no way. So I think by talking about this we plants. One year later, tragically, the This tactic is becoming a way of busi- will increase the number of organs that figures are even worse. Today, 10 peo- ness under this majority. Also, I don’t are available, and we will, in fact, save ple now die every day while waiting for believe there has ever been judicial lives. organs. I think too often that the No. 1 ob- nominations put on hold by a Congress Mr. President, these numbers are cer- stacle to life-saving organ donation is as we have seen with this one. One tainly very distressing. They are dev- simply that lack of awareness. People must wonder about the pattern of the astating because the technology to simply aren’t aware of the huge dif- recent majority attacks—Alexis Her- save these men, women, and children is ference—the life-saving difference that man, Senator LANDRIEU, Congress- available. It is there. If you ask our ex- woman SANCHEZ, and judicial nominee pert on this issue, and the Senate’s ex- they can make in someone else’s life. They don’t think about it. They don’t Margaret Morrow. For example, take pert, Dr. FRIST from Tennessee, he will Margaret Morrow; she has been found tell us that these people can be saved. talk about it. And that is natural. But very qualified by the American Bar As- These 10 people who die every day that is why the decision to donate the sociation. could have been saved. The technology organs of a loved one sometimes is a She was first nominated almost a is there. Medical science has advanced very difficult decision. But I think year ago, and we still have not had the that far. But they die because there are when people talk about it that it will opportunity to vote on this woman. simply not enough available organs. be made much easier. This is wrong. The rules of the Senate That is a tragedy, Mr. President, As elected officials, we in this Cham- allow leadership to delay a nomination In January 1996, there were almost ber have another responsibility. I be- if there are questions about the nomi- 44,000 patients in this country waiting lieve that we must take this message nee’s qualifications. But there are no for an organ transplant. One year later, to the American people. Educational questions about this nominee’s quali- the figure is up to 51,000 individuals efforts have, of course, already begun. fications. who are today waiting—up 7,000 from Thanks to the leadership of our col- There is no reason that we don’t have just a year ago. league, Senator DORGAN, information a vote on Alexis Herman. And we The need for transplantable organs about organ donations is being en- should have it this week. I think that has increased in all categories. These closed with Federal income tax refunds it is wrong that we go forward with leg- aren’t just statistics, not just numbers, that are going out this year. It is esti- islation—the majority feels important, not just longer and longer lists. These mated that 70 million individuals will and the minority goes along with are people. These are children, friends, receive these refunds. So information that—but I think we are going to have and families that love them, and that contained in those envelopes is going to arrive at a point where we have to pray every day that there will be a out. take a look at how the majority is han- chance for that loved one to live—that Further, today I sent a letter to dling what takes place on this Senate there will be an organ that is available Postmaster General Runyon asking floor. Maybe what we should do is for that child, that parent, that hus- him to approve a ‘‘Gift of Life’’ postage nothing until these people who are band, or that mother. stamp as soon as possible. Mr. Presi- qualified, like Alexis Herman and like I think that we have to ask ourselves dent, I have been talking to the Post- Margaret Morrow, until we have votes what we can do about this. What can master General’s office for more than a on them. we do about this as individuals and as year now about this issue because I am If they want to vote against Alexis elected officials? firmly convinced that this stamp will Herman, then the majority should vote As private citizens, when we go to remind people of the vital importance against Alexis Herman. But to hold get our driver’s license for the first of organ donation. It will save lives. It this woman hostage—it is now ap- time, or when we go to get it renewed, will bring about more awareness. Mr. proaching the 1st of May, and this we are asked sometimes very quickly, President, anything that we can do to woman has not been able to go to work ‘‘Do you want to donate your organs in encourage families to discuss this issue as Secretary of Labor. That is wrong. I case of an accident, in the case of your will, in fact, better prepare them to think the American public deserve death?’’ We all need to say yes when make this life-saving decision. more, and I hope that majority leader- that question is asked. We can also, Further, Mr. President, as you and ship will allow her nomination to go and should, encourage our relatives other Members of the Chamber may forward along with some of other nomi- and friends to do the same thing. As know, Senator KENNEDY and Rep- nees that are being held up for reasons Americans, we need to talk about this resentative MOAKLEY held a field hear- unknown to most of us. issue. As families we need to talk ing in Massachusetts on this very Mr. DEWINE addressed the Chair. about this issue before tragedy strikes. issue. I will hold a similar field hearing The PRESIDING OFFICER. The Sen- This is not a subject that anyone of in Ohio this fall, and I encourage all of ator from Ohio is recognized. us likes to discuss. But it is very im- my colleagues to do the same in their S3400 CONGRESSIONAL RECORD — SENATE April 22, 1997 home States, to bring this issue closer Mr. President, I suggest the absence poor, it is making us totally inad- to home. of a quorum. equate at the governmental level in Recently, there has been a lot of pub- The PRESIDING OFFICER. The Washington, DC. All our moneys are licity about organ donation—publicity clerk will call the roll. being expended for interest costs on The legislative clerk proceeded to specifically about controversial proto- the debt rather than active Govern- call the roll. ment. cols that have been considered to en- Mr. HOLLINGS. Mr. President, I ask hance the viability of transplanted or- unanimous consent that the order for Specifically, I want to talk about the gans. I support an informed public dia- the quorum call be rescinded. here and now rather than the next mil- log on this, or any other medical issue. The PRESIDING OFFICER. Without lennium. Dick Morris detailed in his As this debate continues, however, Mr. objection, it is so ordered. book, Mr. President, that he had coun- President, we have to make sure that The Senator from South Carolina is seled President Clinton, running for re- we keep our eye on the ball, that we recognized. election last year, that the budget defi- stay focused, and not lose sight of the Mr. HOLLINGS. Mr. President, I ask cit was a boring subject. He claimed fact that organ donations save many unanimous consent I may proceed in that nobody was really interested in it thousands of lives each year in this morning business for 20 minutes. and that the President should instead country, and that thousands of other The PRESIDING OFFICER. Without focus on school uniforms and child cur- Americans are still waiting for this objection, it is so ordered. fews, family values and everything precious gift of life. f else. Mr. President, together we can build BUDGET REALITIES Mr. President, people are interested in the crushing burden of our federal a national consensus to increase the Mr. HOLLINGS. Mr. President, on rate of organ donations. Seriously ill this past Sunday, the Outlook section debt, and to show specifically what Americans who are on these waiting of the Washington Post published arti- concerns them, I have a chart that I lists should not have to wait so long cles regarding Uncle Sam’s red ink. would refer to. It is in enlarged fash- for a second chance. They should have The unfortunate part is that these sto- ion. I ask unanimous consent that we a second chance. And I look forward to ries highlight is that debt is nothing have printed in the RECORD at this par- working with all of my colleagues in new for the United States. While it is ticular point this one budget document the Senate and with people across this making us poor, one article claims that ‘‘Hollings’ Budget Realities.’’ country to achieve this goal in the is has made us prosperous. There being no objection, the chart months ahead. I rise today to make the point that was ordered to be printed in the I thank the Chair. I yield the floor. our debt is not only making us very RECORD, as follows: HOLLINGS’ BUDGET REALITIES [In billions of dollars]

Annual in- U.S. budget Borrowed Unified def- Actual defi- National creases in President and year (Outlays) trust funds icit with cit without debt spending trust funds trust funds for interest

Truman: 1945 ...... 92.7 5.4 ¥47.6 ...... 260.1 ...... 1946 ...... 55.2 ¥5.0 ¥15.9 ¥10.9 271.0 ...... 1947 ...... 34.5 ¥9.9 ¥4.0 +13.9 257.1 ...... 1948 ...... 29.8 6.7 11.8 +5.1 252.0 ...... 1949 ...... 38.8 1.2 0.6 ¥0.6 252.6 ...... 1950 ...... 42.6 1.2 ¥3.1 ¥4.3 256.9 ...... 1951 ...... 45.5 4.5 6.1 +1.6 255.3 ...... 1952 ...... 67.7 2.3 ¥1.5 ¥3.8 259.1 ...... 1953 ...... 76.1 0.4 ¥6.5 ¥6.9 266.0 ...... Eisenhower: 1954 ...... 70.9 3.6 ¥1.2 ¥4.8 270.8 ...... 1955 ...... 68.4 0.6 ¥3.0 ¥3.6 274.4 ...... 1956 ...... 70.6 2.2 3.9 +1.7 272.7 ...... 1957 ...... 76.6 3.0 3.4 +0.4 272.3 ...... 1958 ...... 82.4 4.6 ¥2.8 ¥7.4 279.7 ...... 1959 ...... 92.1 ¥5.0 ¥12.8 ¥7.8 287.5 ...... 1960 ...... 92.2 3.3 0.3 ¥3.0 290.5 ...... 1961 ...... 97.7 ¥1.2 ¥3.3 ¥2.1 292.6 ...... Kennedy: 1962 ...... 106.8 3.2 ¥7.1 ¥10.3 302.9 9.1 1963 ...... 111.3 2.6 ¥4.8 ¥7.4 310.3 9.9 Johnson: 1964 ...... 118.5 ¥0.1 ¥5.9 ¥5.8 316.1 10.7 1965 ...... 118.2 4.8 ¥1.4 ¥6.2 322.3 11.3 1966 ...... 134.5 2.5 ¥3.7 ¥6.2 328.5 12.0 1967 ...... 157.5 3.3 ¥8.6 ¥11.9 340.4 13.4 1968 ...... 178.1 3.1 ¥25.2 ¥28.3 368.7 14.6 1969 ...... 183.6 0.3 3.2 +2.9 365.8 16.6 Nixon: 1970 ...... 195.6 12.3 ¥2.8 ¥15.1 380.9 19.3 1971 ...... 210.2 4.3 ¥23.0 ¥27.3 408.2 21.0 1972 ...... 230.7 4.3 ¥23.4 ¥27.7 435.9 21.8 1973 ...... 245.7 15.5 ¥14.9 ¥30.4 466.3 24.2 1974 ...... 269.4 11.5 ¥6.1 ¥17.6 483.9 29.3 Ford: 1975 ...... 332.3 4.8 ¥53.2 ¥58.0 541.9 32.7 1976 ...... 371.8 13.4 ¥73.7 ¥87.1 629.0 37.1 Carter: 1977 ...... 409.2 23.7 ¥53.7 ¥77.4 706.4 41.9 1978 ...... 458.7 11.0 ¥59.2 ¥70.2 776.6 48.7 1979 ...... 503.5 12.2 ¥40.7 ¥52.9 829.5 59.9 1980 ...... 590.9 5.8 ¥73.8 ¥79.6 909.1 74.8 Reagan: 1981 ...... 678.2 6.7 ¥79.0 ¥85.7 994.8 95.5 1982 ...... 745.8 14.5 ¥128.0 ¥142.5 1,137.3 117.2 1983 ...... 808.4 26.6 ¥207.8 ¥234.4 1,371.7 128.7 1984 ...... 851.8 7.6 ¥185.4 ¥193.0 1,564.7 153.9 1985 ...... 946.4 40.5 ¥212.3 ¥252.8 1,817.5 178.9 1986 ...... 990.3 81.9 ¥221.2 ¥303.1 2,120.6 190.3 1987 ...... 1,003.9 75.7 ¥149.8 ¥225.5 2,346.1 195.3 1988 ...... 1,064.1 100.0 ¥155.2 ¥255.2 2,601.3 214.1 Bush: 1989 ...... 1,143.2 114.2 ¥152.5 ¥266.7 2,868.3 240.9 1990 ...... 1,252.7 117.4 ¥221.2 ¥338.6 3,206.6 264.7 1991 ...... 1,323.8 122.5 ¥269.4 ¥391.9 3,598.5 285.5 1992 ...... 1,380.9 113.2 ¥290.4 ¥403.6 4,002.1 292.3 Clinton: 1993 ...... 1,408.2 94.3 ¥255.0 ¥349.3 4,351.4 292.5 1994 ...... 1,460.6 89.2 ¥203.1 ¥292.3 4,643.7 296.3 April 22, 1997 CONGRESSIONAL RECORD — SENATE S3401 HOLLINGS’ BUDGET REALITIES—Continued [In billions of dollars]

Annual in- U.S. budget Borrowed Unified def- Actual defi- National creases in President and year (Outlays) trust funds icit with cit without debt spending trust funds trust funds for interest

1995 ...... 1,514.6 113.4 ¥163.9 ¥277.3 4,921.0 332.4 1996 ...... 1,560.0 154.0 ¥107.0 ¥261.0 5,182.0 344.0 1997 ...... 1,632.0 130.0 ¥124.0 ¥254.0 5,436.0 360.0 * Historical Tables, Budget of the US Government FY 1988; Beginning in 1962 CBO’s 1997 Economic and Budget Outlook—April 15, 1997.

Mr. HOLLINGS. Mr. President, on Those are the terms upon which we wouldn’t have any ISTEA bill. We the matter of the budget realities, I must speak. If we are going to continue could take care of all the demonstra- have listed here beside the different to talk of a unified net kind of deficit, tion projects you could possibly imag- Presidents from 1945 right on through which is not net, the fraud will con- ine. We could go ahead with star wars President Clinton’s first term includ- tinue. There is not any question in my immediately. We could have all these ing estimates for 1997—the different mind that taxes are too high. But taxes things that they want for education, years of the U.S. budget, the actual are too high because of the interest student loans and everything else. But budget. cost on the national debt. instead, we are spending the money Incidentally, these are Congressional All you need do is go to look at our and not getting anything for it. Budget Office figures. These are not actual interest costs, let us say, before That is the cancer that we have in tricky figures. They are the ones that President Reagan came in, just a few the fiscal affairs of the U.S. Govern- we all rely upon. short years ago. The interest costs in ment that is totally obscured by news Then I have listed the borrowed trust 1980, going straight across, are $74.8 bil- articles like those that claim to show funds. That is all the trust funds that lion. Well, that is $74.8 or $75 billion. how debt has made us prosperous, like are borrowed—not just Social Security You now in 1997 have listed $360 billion. all we have to do is borrow again and but the military retirees trust funds, We have increased spending $285 billion that debt has always been with us. Well, Mr. President, it has not been the civil service retirees trust funds— for nothing. You are not getting a road with us all the time for the simple rea- there is still a surplus in the Medicare paved. You are not getting a library son you can see that when President account—Medicare trust fund, the Fed- built. You are not getting research Reagan came to town—we have it eral finance bank, the moneys we have over at the National Cancer Institute. here—the national debt was $994.8 bil- been using from the airport and air- You are not providing for a stronger lion. When President Reagan came to ways improvement fund, the highway defense. You are not engaging more in town, after 204 years of history, after 38 trust fund. You can go right on down foreign assistance or anything else of Presidents, Republican and Democrat, the different trust funds that are bor- that kind. You are getting absolutely after the cost of all the wars, the Revo- rowed. nothing for the past profligacy and lutionary, the War of 1812, the Civil And then the unified deficit which is waste. War, the Mexican War, the Spanish- the real culprit here in this particular Bottom line. The crowd that came to American War, World War I, World War budget fraud. I refer directly to the town in 1981, against taxes and against II, Korea, Vietnam, the cost of all the fraud that occurs when we cannot get waste, has taxes on automatic pilot, wars never gave a national debt of $1 the truth out. That is the purpose of waste on automatic pilot of $1 billion a trillion. It was less than $1 trillion my rising again today, to somehow, day. after 204 years of history. But in 16 somewhere, sometime talk the truth Now, let me say that one more time. years without a war, because the cost because it is not an accurate figure At $360 billion—this figure, of course, is of the war in Desert Storm was paid for when you say unified. They say, well, the January figure from the Congres- by the Saudis and others, so in 16 years that is the net amount in and out. It is sional Budget Office, and it does not without the cost of a war, we have gone not net amount in and out. It is the take into account the recent increase from less than $1 trillion to almost $5.5 amount you borrow and you have to re- in interest rates by Alan Greenspan trillion. Up, up, and away with the in- place. and the Federal Reserve. So that is terest costs, interest spending, interest The distinguished Presiding Officer, bound to be at least 365. taxes going up, up and away and added being a certified public accountant, So we have interest payments, that to the debt to the tune of $1 billion a knows exactly what I am speaking is, annual increases in spending on in- day and we never want to seem to rec- about. If you were trying to use that terest that total $1 billion a day. And ognize that. unified deficit on your return, the bor- it has to be paid just like taxes. It is Right to the point, Mr. President. If rowed moneys on April 15, they would not like increases in other spending you take all the deficits from President cart you off to jail. You are not al- which we could forego, but it has to be Truman, the actual deficits and aver- lowed to do that. But we do that in paid. So that is why I categorically say age them out right on down to Presi- Washington, and then the media, the the crowd that said they were going to dent Reagan, 25 years, if you took all market, the Government and everyone come to town in the early 1980’s and do those deficits, the average would be else continue to cite the unified deficit away with taxes have put taxes on an about $20 billion a year. as a sort of net figure as to what the automatic pilot of $1 billion a day. Now, in contrast, take the deficits real deficit is. The crowd that came in town in 1981 for the last 16 years without the cost of On the contrary, the real or actual and said they were going to be against a war, without the so-called guns and deficit is listed in the next column waste, fraud and abuse—and I was ap- butter, as they say; but rather, with with the national debt going up and pointed on the Grace Commission, got spending cuts of President Reagan for 8 the annual increase in the amount of an award for it and recognition. It was years, spending cuts of President Bush spending in order to take care of the a wonderful instrumentality that went for 4 years, spending cuts of President interest costs. through the Government and tried to Clinton, because he brought the deficit So I will be glad to show this particu- cut out all the waste. But we have real- down—his 1993 plan included $500 bil- lar chart in an enlarged manner. What ly increased the waste because we get lion in deficit reduction. Even with all we have here, Mr. President, is again absolutely nothing for it. the cuts, we have been giving an aver- the Presidents. You have the years. Now, we increased spending since 1980 age deficit each year to the American You have the United States budget, the by $285 billion. If we had not done that, people of $277 billion more in Govern- actual budget, the borrowed trust we would have $285 billion here for us ment than we are willing to pay for. funds, the unified deficit with trust to sit around in the Senate Chamber Let us not just talk abstractly about a funds. Then the actual deficit without and spend or give back to the American deficit. We are actually giving away trust funds. That is without the bor- people. It would be a wonderful thing. $277 billion more in Government than rowings, what the actual deficit is. We could get all the highways. We we are actually willing to pay for. S3402 CONGRESSIONAL RECORD — SENATE April 22, 1997 Let us go to just last year and the Revenue System, and everything else we do not govern by decree in America. campaign, when both Senator Dole and of that kind. We have three branches. A major and President Clinton used $107 billion, the Mr. President, we ought to under- fundamental change in labor law must unified deficit figure, like it was net. stand once and for all that we are en- be legislated. The President can sign or That was not the case at all. In order gaged in a fraud that continues to be veto it, but he cannot write law. That to get to a $107 billion deficit, they had obscured, due to the fourth estate. The is not a function of the Presidency. to borrow from all the pension funds. fourth estate has taken it on as a reli- I will probably visit some of these Why not borrow another $107 billion gion, almost, of reciting the unified documents in a bit, but published re- and call it balanced? The actual deficit deficit as if it were the actual deficit. ports show that labor leaders and the was $261 billion. You could not get that The truth of the matter is, the actual administration wrote the law that cited or printed in the press. We gave it deficit is substantially more. It has would essentially squeeze out all non- to them time and time again. We will averaged $277 billion last year, the year union subcontractors and employees give it to them again this morning. I before, and the last 16 years. We have from doing work on Federal contracts. defy you to find it in the morning been giving out some $277 billion in It is a lot more complicated than that, paper or cited in the evening news on Government that we are not willing to but that is the bottom line. So this law TV. They do not want to say what the pay for. was written somewhere in the offices of actual deficit is. They want to use this We had that Reaganomics. Yes, there these labor leaders. It is the fundamen- obscure figure of unified, trying to act is even talk about that—cut taxes and tal construction of what the adminis- like we ought to be encouraged. That is we will get growth, we will grow out of tration purports will be an Executive why they are getting together on a deficits. No mayor in his right mind of order, bypassing the legislative branch budget deal. They will get together on a city tries that. No Governor in her and writing law in a very narrow con- a deal that will obscure truth in budg- right mind has tried that. There was an fine. eting. exception up in New Jersey. Governor You know, our forefathers were very This fraud has to stop somehow, Whitman up there said, ‘‘Whoa, tax careful in the construction of this Gov- somewhere, because it is not a bridge cuts work.’’ But look at the papers last ernment to assure proper airing, thor- to the next millennium. We are going week. She is now doing two things. She ough venting, debate on all sides. It is over a cliff by the year 2000. Our do- is borrowing, raiding the pension funds, not easy to pass laws in America. It is mestic budget is $266 billion. Our de- just like we are doing in Washington. not meant to be easy. The very thing fense budget is $267 billion. Those two She has learned from Washington. And for which this system was constructed budgets together are slightly over $500 she is calling for a bond issue to cover was to prevent the very thing we are billion. But you will soon have interest her financial situation. It does not seeing from the administration. I would like to begin our discussion costs exceeding the combined cost of work. on this by sharing with the Senate sev- both the domestic and defense budgets. There is no free lunch. Long since, we eral letters that I have received from We are not building a bridge, we are should have understood it. If I have to folks back home with regard to this. digging a hole. come every day and point this out, I The first order of business, they say, Here is a letter dated March 13, 1997, will because these facts and figures are from Large & Gilbert, certified public when you are in a hole and you are try- not disputable. They are not political. ing to get out, is stop digging. We con- accountants. They are located in They are not Democratic figures or Re- Macon, GA. It says: tinue to dig, and we do it in a dignified publican figures. These are Congres- fashion around here and praise each DEAR PRESIDENT CLINTON: I am writing sional Budget Office figures. That is this letter to express my outrage regarding other. The President and the Congress the actual debt that has gone to exceed comments made by Vice President Gore in a have gotten together on a budget $5 trillion. speech to the AFL-CIO in Los Angeles on agreement and all of that kind of stuff. I see from the Presiding Officer that February 18, 1997. Vice President Gore an- But watch for the gimmicks in it. my time is just about up. Let me just nounced the Administration’s plans to The biggest gimmick that is never say one word. I thank the distinguished change the nation’s federal procurement pol- talked about is the fact people consist- Chair and the distinguished Senator icy through an Executive Order that would ently obscure the actual size of the def- encourage union-only project labor agree- from Georgia for indulging me just one ments. icit. To get it down to $254 billion, we second more. An Executive Order encouraging union- still have to find $110 billion, that is What we have is a fraud on the Amer- only PLAs would immediately implement an without any cuts, just continuing what ican public. We have to expose this anti-competitive, protectionist, and dis- we call current policy. I sat at the fraud. We have to speak to truth in criminatory policy that goes against the budget table today to try to get to a budgeting. We have to come up with an basic principles of free market, open com- budget now of $1.632 trillion. That is actual plan that will eliminate this petition, and equal opportunity upon which current policy. That is domestic of $266 the country was founded. deficit financing by raiding the trust Greater use of union-only PLAs will billion, defense of $267 billion, entitle- funds in America. threaten job opportunities for the vast ma- ments of $859 billion. That is $1.382 tril- I yield the floor and suggest the ab- jority of America’s workers. Union-only lion. Just put in the minimal figure sence of a quorum. agreements discourage bidding by open shop, $360 billion, that is $1.742 trillion. To The PRESIDING OFFICER. The or merit shop, contractors and limit employ- bring it down, then, to the $1.632 tril- clerk will call the roll. ment opportunities for workers who do not lion, I have to find $110 billion. I have The bill clerk proceeded to call the wish to be represented by a union. Union to cut entitlements, domestic, defense workers are less than 15 percent of America’s roll. work force. This kind of union-favoring tac- combined $110 billion. Mr. COVERDELL. Mr. President, I tic discriminates against the majority of That is my job, conscientiously going ask unanimous consent that the order American workers who choose not to join a to the budget table to sit as a member for the quorum call be rescinded. union. of the Budget Committee, where I have The PRESIDING OFFICER (Mr. AL- PLAs add significantly to the cost of con- been since we instituted the budget LARD). Without objection, it is so or- struction projects, because union labor costs process in 1974. But, instead of discuss- dered. are generally 10 to 20 percent higher than ing the cuts and how are we going to merit shop. Competitive bidding on public f projects is in the best interest of all tax- get on top of this downward spiral of payers because it ensures contracts are interest costs or interest taxes being LABOR LAW CHANGES BY EXECUTIVE ORDER awarded based on who will do the best work increased $1 billion a day, instead of at the best price, regardless of labor affili- that, we are getting letters now to do Mr. COVERDELL. Mr. President, as ation. away with the inheritance tax. We are many of us in the Congress and in the And I might add that Georgia is one getting letters now to do away with the country began to realize last week, the of about half the States that is a right- capital gains tax. We are getting let- President and the administration are to-work State. ters now from Steve Forbes and that endeavoring to change 60 years of labor At a time of strict budgetary constraints, other crowd: Let’s just get a flat tax law by edict or decree. I spoke on the PLAs are certainly a step in the wrong direc- and do away with the IRS, the Internal floor and reminded the administration tion. April 22, 1997 CONGRESSIONAL RECORD — SENATE S3403 Vice President Gore stated, ‘‘If you want Your signing an executive order to use The proposed Executive order clearly to do business with the federal government, union-only project labor agreements is not is an effort by the administration to you’d better. . .respect civil, [no one would fair to the families associated with our com- set national labor policy, a job that is take offense with that] human [no one would pany. You are depriving them of work that delegated to the Congress by the Con- their tax dollars are paying for and depriving be offended by that] and [here is the kicker] stitution—by the Constitution—of the union rights.’’ fellow taxpayers of highly skilled craftsmen. United States and not to the President. In other words, if you want to do Our employees believe that Americans should be guaranteed federal policy that sup- The wisdom of this delegation of pol- business with the Federal Government, port equal opportunity and free enterprise. icymaking to the legislative process by the Vice President said, you better be They have earned the right to compete on a the drafters of the Constitution is in a union, you better point your direc- level field for any work they are qualified proven in the matter before us. The tion toward a union or union member- for. A union-only agreement has been earned proposed Executive order raises many ship or a union contract. in all the cheap ways to the detriment of all more questions than it answers, ques- Unions do not have the basic right to pref- involved. All of us strongly urge you to cease your tions, I note, that, if subjected to the erential treatment. plans to issue the proposed executive order. debate and factfinding of the legisla- That is what this gentlemen said. Mr. President, we have been joined tive process, could be resolved. The union does not have the basic right by the chairman of the Labor Commit- For example, what is the effect of the to preferential treatment. They have tee, Senator JEFFORDS of Vermont. I Employee Retirement Income Security equal access, but they do not have pref- would like to yield up to 10 minutes to Act, the ERISA, on a project labor erential access. the Senator for comment on this mat- agreement’s provision that would re- Every American has the right to make a ter. quire an open shop contractor to par- living and have equal access to federal work, The PRESIDING OFFICER. The Sen- ticipate in a union pension plan? The regardless of organizational membership. ator from Vermont. contractor likely covers its employees How right he is. Mr. JEFFORDS. Mr. President, I rise in another plan, and the contractor’s No one’s tax dollars should be spent to sup- to raise my concerns also as expressed employees probably would receive no port discriminatory federal policies [or Fed- by the Senator from Georgia. I rise to benefits from the union pension plan eral policies that select who among the bid- express my continuing and growing because they would not be vested be- ders would have the most opportunity to get concerns regarding the efforts of Presi- fore the completion of the federally the work]. dent Clinton and his administration to funded project. He goes on to say: bypass Congress and impose the ulti- Another example of a question best Americans should at a minimum be guar- mate in top-down union organizing— addressed by congressional review is anteed federal policies that support equal op- union organizing by the President of whether the anticompetitive and over- portunity and free enterprises at the most ly restrictive provisions of the pro- basic level. Every American deserves the op- the United States—on Federal con- struction projects. I am speaking, of posed order violate the spirit, if not the portunity to compete, win and execute work letter, of the Federal Acquisition Re- based on merit—not because of race, gender, course, of the widely circulated draft of a proposed Executive order that would form Act of 1996, just recently passed. union affiliation, or any other discrimina- The proposed Executive order, how- tory factor. It is not the role of the federal result in most, if not all, federally ever, raises even more fundamental government to put our taxpayer dollars to- funded construction being performed questions regarding the continued vi- ward guaranteeing work for the unions or to under a union project labor agreement. help them increase their market share and A project labor agreement would tality of our national labor policy that membership. deter a major portion of the contractor provides for Federal Government neu- Vice President Gore’s blanket statement universe—open shop or nonunion con- trality in matters of labor-manage- promising a presidential veto of any legisla- ment relations, a longstanding policy. tion the unions find objectionable, without tractors—from bidding on construction work paid for by American taxpayers. This neutrality has been at the core of any consideration of improvements to work- the national policy since the passage of place opportunities, is an outrage. Ameri- Because the project labor agreement the Wagner Act back in 1935. The ad- cans would be better served by an Adminis- adopted pursuant to the proposed Exec- ministration, without the benefit of tration that supports efforts to improve fair, utive order would require a contractor studied review and debate inherent in flexible and equal workplace opportunities to enter into an agreement with a the legislative process, would reverse that will help make companies and workers labor union as a condition of bidding more competitive. this policy and ignore the over 60 on the Federal project, most open shop America has always been a leader for the years—over 60 years—of its fine tuning contractors, unwilling to impose a rest of the world in the areas of a free mar- by Congress and the courts. The admin- union on themselves and their employ- ket and equal opportunity, and this has al- istration’s approach, that of lawmak- ways been a point of pride for our country. ees, simply would not submit a bid. ing by Executive fiat, would answer Please take the contents of this letter into Thus, the union-only project labor account before making any Executive Order these, and other questions posed by the agreement not only eliminates open Executive order, by litigation, not leg- that would jeopardize the American peoples competition for Federal contracts, an belief in our country, and the principles upon islation. which it stands. anticompetitive effect that would re- I expressed my strong support for S. sult in increased costs of Federal con- 606, a bill introduced by Senator That is Thomas K. Savage of Large & struction to the taxpayers, but also Gilbert, an accounting firm in Macon, HUTCHINSON, that would prevent the ex- discourages open shop contractors from clusion of nonunion contractors from GA. bidding on work that they are paying Some of these letters are very inter- federally funded construction. I note for with their own tax dollars. esting and deserve a standing in the that I am a cosponsor of this bill and In addition to its anticompetitive look forward to its deliberation in the RECORD. impact, the proposed Executive order This is a letter from W.S. Nielsen manner established by the Constitu- also would deprive nonunion workers of tion. Co., Inc. Skylight Systems, Alpharetta, jobs in Federal construction, again jobs GA, writing to the President. He says: I urge my colleagues to take note of paid for out of those workers’ wallets. what is going on. This is a gross exam- DEAR MR. PRESIDENT: Our small family Union agreements invariably require ple of the abuse of the authority of the owned business has grown over the last six- job seekers to obtain work through a teen years to where it directly supports over President through the Executive order. 15 families. union hiring hall. Hiring hall referral He tried this before. The courts traditions favor longstanding union That is not a big company. It is awful knocked it down with respect to strik- members. Others, such as the nonunion big to the 15 families, I might point er replacement. Here they come again workers of the open shop contractor, out, though. with another proposal. would find themselves at the end of the This is extremely important for con- We have worked hard to train all our staff referral line. This Executive order to be the best and safest in our field. Ours is tractors, for the Nation, and for the a dangerous business. Our staff has earned an would penalize the overwhelming ma- taxpayer. I yield the floor. excellent reputation with our customers, jority—majority—of construction Mr. COVERDELL. Mr. President, I many of whom work on federal and state workers in this country, who have not thank Senator JEFFORDS for his com- construction projects. chosen to be union members. ments and extensive work in this S3404 CONGRESSIONAL RECORD — SENATE April 22, 1997 arena. I want to compliment him on changing the rules because they’re just After an extended debate, the Con- the statement he made last week, a plain wrong.’ ’’ gress refused to enact a law denying very thorough description and outline They may be, they may not be. But employers the right to hire other peo- of this circumstance. I think the Sen- the way you change the law is in the ple when their current workers refuse legislative branch. You do not do it be- ator has done the debate a great serv- to work and a strike drags on and on. ice. The letter of you and your col- cause of your own opinion. The President, by Executive order, leagues on the Labor and Human Re- Shortly thereafter, on March 10, sources Committee that was sent to about 4 weeks later, lo and behold, tried to do what Congress had refused the President was a noteworthy con- John Sweeney, president of the AFL- to do, by mandating that companies tribution to the debate. CIO, issues a press statement that says not be permitted to replace striking I will read one more letter for the ‘‘Sweeney Blasts Avondale’’—that is a workers. The courts properly stepped RECORD, Peachtree Interior Builders, shipbuilding company. in and said that the President had another letter dated March 27, to the In the four years since Avondale Shipyard overstepped his bounds and had no au- President: workers won a union election, management thority to make such law by Executive has waged a . . . campaign of firings, dis- The purpose of this letter is to voice my order. In fact, Congress had already re- opposition to your proposed Executive order criminatory layoffs and legal challenges. to require Federal agencies to use union-only In other words, they have been in a fused on exactly that same subject to project labor agreements on Federal con- battle. take legislative action. struction projects. This order would elimi- Today, AFL-CIO President John Sweeney If we can believe what the Vice Presi- nate the possibility of thousands of contrac- met with the workers at the New Orleans dent has said in a speech before the tors like myself from bidding on Federal shipyard and calls on Avondale management AFL-CIO, it appears that the President projects. As a contractor and a taxpayer I to end its attack. He will remind Avondale, would expect a level playing field on govern- which receives Federal funds, that two weeks is about to do the same thing again. ment contracts so everyone would have the ago Vice President Gore said companies Now, he is going to try to do it a little opportunity to compete, win, and execute doing business with the government must re- bit differently. He is going to allow the work based on merit. The 50 families that de- spect . . . union rights. individual Federal departments and rive all or part of their livelihood from this So the Vice President makes his company should be given the opportunity to agencies to take action if they choose. compete on any government project, regard- statement. They have said they will The net result is that through Execu- change the rules. I am here to tell you, less of their union affiliation, race, gender, tive order, the President is going to be ‘‘You better pay attention to me’’ is or any other discriminatory factor. violating the constitutional powers of Mr. President, I think it is somewhat what John Sweeney is saying. We have been joined by the senior Congress. This Executive order has useful to try to put this debate in con- been alluded to before, but what it text. I go back to Tuesday, February Senator from Texas who wants to boils down to is this: If the President 18, of this year, when the Office of the speak on this matter. I yield up to 10 Vice President issued a press release. It minutes to the Senator from Texas. goes ahead with his Executive order, he Mr. GRAMM. Mr. President, let me says: ‘‘For immediate release, Tuesday, is going to be saying that in order to first congratulate our distinguished February 18, 1997.’’ bid on a contract, a company is going Vice President Gore Sends Message colleague from Georgia for his leader- to have to hire union workers. to Businesses. ship on this issue. I came over today to speak on this subject because I think Now, 89.1 percent of all private work- ‘‘Record of Labor Relations and Em- ers in America are not members of ployment Practice Counts in Contract- this is a very serious matter. It be- unions. So what this Executive order ing. hooves us, and it is in the interests of ‘‘In remarks to the AFL-CIO Execu- the American people on issues like would do is say to almost 90 percent of tive Council, Vice President Gore this, to speak before the President American workers in the private sector today pledged that the Federal Govern- acts, rather than to wait for the action of the economy, ‘‘You can’t work on a ment will change its rules’’—now that to occur and then complain about it. Federal Government contract. You are is a key sentence—‘‘will change its I want to be very emphatic today on precluded because you are not part of a rules on Federal contracting to take this issue because I think this is a fun- privileged group empowered by the damentally important issue. First of into account businesses’ record of labor President to have rights beyond any- all, the Constitution is very clear in ar- relations on employment practices and body else’s rights. That is, you are not ticle 1 that Congress shall have the policies.’’ a member of a labor union.’’ So, the Vice President, speaking to power to make law. Now, granted, the AFL-CIO Council says, ‘‘The Fed- within the parameters prescribed by Now, Mr. President, if the President’s eral Government is going to change its law, the President has the ability, Executive order and new regulations rules.’’ What he did not say was the through Executive power, to imple- went forward we would mandate union President is going to change the rules ment those laws, and has from time to representation of all workers on all arbitrarily, by decree, by edict, by fiat, time used Executive orders to imple- Government projects. We would man- as the Senator from Vermont said. To ment the laws passed by Congress and date that all workers on all Govern- change the labor rules, which have enacted by the President’s signature. ment construction projects be hired been a condition of law for the last 60 Many of you will recall that 2 years out of union halls. We would require years, requires a legislative act and not ago the President attempted to put that all workers on Government con- a decree. into operation by Executive order a struction projects pay union dues. We He goes on to say, ‘‘How you treat provision that had already been re- would eliminate competition. Mr. your employees and how you treat jected by Congress. Though it is a very President, 89.1 percent of all American unions counts with us. If you want to important issue, the principle is what I workers would be precluded from work- do business with the Federal Govern- want to deal with today. ing on contracts funded by their tax ment you’d better maintain a safe Basically, Congress had refused to dollars. Finally, we would impose on workplace,’’—everyone would agree pass a law that said that if workers contractors doing work for the Federal with that—‘‘respect civil, human’’—ev- refuse to work, the employer could not Government union rules, including re- erybody agrees with that,—‘‘and union hire other workers to take their place. strictive rules that limit the ability of rights.’’ I never viewed that issue as a labor- workers to carry out their functions of- Well, that is not the law. You are not management issue. I always viewed it ficially. So the first thing the Presi- obligated to join a union in the United as a freedom issue, as I believe most dent’s order would do is say to 89 per- States. Americans do. Simply stated, I have a cent of all workers in America, ‘‘You ‘‘The Vice President said the old right, if I do not want to work for you, can’t do work for the Federal Govern- rules,’’ what he means is the old law to quit. If I want to stop supplying my ment on contracts.’’ ‘‘allowed Federal contractors to get re- labor, or in concert with others, stop imbursed for the costs of trying to per- supplying my labor, I have a right to Second, if the current contractors suade employees not to join unions and strike. But you have rights, too. One of switched and required mandatory fighting unfair labor practices allega- those rights is hiring somebody else union membership by their workers, tions. ‘But today we are going to start who is willing to work. the President’s proposed Executive April 22, 1997 CONGRESSIONAL RECORD — SENATE S3405 order, in one swoop, would increase the ecutive order, it will seriously jeopard- Now, Sweeney, president of the AFL- number of people who are members of ize bipartisanship cooperation in this CIO, said, ‘‘In any given year, Federal unions by at least 13 million members. Congress. There is no way we could let contracts total as much as $200 billion, Let me repeat that: If the President’s this stand and little possibility that we and Federal contractors employ one- Executive order is put into place and it could act as if nothing had changed fifth of the Nation’s work force.’’ And stands, and if existing contractors, when our very powers prescribed in ar- with great glee, he says, ‘‘If properly rather than lose their livelihoods and ticle I of the Constitution are being implemented . . .’’—referring to Presi- businesses, employers would be forced usurped by the President. It difficult to dent Clinton’s order—‘‘. . . it would af- to say OK, we will pay tribute and imagine us acting as though we simply fect hundreds of billions of dollars force our workers to join unions wheth- disagree with each other and then go every year.’’ What he could have said er they want to join and pay dues for on working together hand-in-hand and didn’t say, but was thinking, is: services they do not want or not. That doing whatever we might be doing. Think of the money that it will bring one action alone would mandate at There is little chance of that happen- into the unions and how much more least 13 million people to pay tribute ing. money we will have to play with. and earnings to organizations they Our message today is a warning to What we are talking about is the have chosen not to join. the President: Mr. President, don’t do President, by the stroke of a pen, That does not sound like America to this. This is wrong for America. If you changing the laws of this country. Gov- me. I have a right to join a union. I do this, it is going to be very difficult ernment contracts have always been have always supported that right. But I for us to work together. awarded on the basis of the low bidder also have a right not to join a union. I yield the floor. and the company that was capable of Mr. COVERDELL. Mr. President, I And I ought to have a right not to join doing the job. Unions have never held a thank the Senator from Texas, Mr. a union and still do contract work for special claim to Government contracts. President. I am going to yield to the the Federal Government, which is run But, under this, everybody else would Senator from North Carolina for up to in small part by my taxes. be excluded and the unions would be 10 minutes. I thank him personally for As my final point, if the President totally in charge. his extended work and contributions in puts this Executive order and new reg- What we are saying is that all of the the formulation of the Right to Work ulations into effect, and we are then $200 billion the Federal Government Act, which has now been introduced. forced to pay union scale on every con- spends would go to 20 percent of the He has a long, long record in this struction project undertaken on behalf work force, or probably a much smaller arena. I welcome him to the floor. of the taxpayers, it will add 17 to 21 The PRESIDING OFFICER. The Sen- percentage than that; probably closer percent to the cost of Federal projects, ator from North Carolina is recognized. to 10 percent of the work force in this according to the General Accounting Mr. FAIRCLOTH. Mr. President, I am country is unionized. And to the other Office, which is the accounting arm of here today to join the Senator from 85 to 90 percent, we would say: Tough the Congress and the Federal Govern- Georgia in letting the American people luck, you simply don’t qualify. You ment. The President’s Executive order know what a costly and dangerous pay the taxes and keep working, but and new regulations would add $42 bil- paragraph the President of this coun- any Government contracts will go to lion of additional expenses on the try has proposed on behalf of the labor union members only. backs of the American taxpayers. unions, its bosses. What I am referring Now, the General Accounting Office So what the President proposes to do to is the President’s Executive order, has said that union labor will run the by Executive order, in summary, is first announced to great applause by price of a contract up 20 percent or deem 89.8 percent of Americans ineli- Vice President GORE before a recent more. I think they, very simply, under- gible to work on Government con- gathering of union bosses. It would estimated the amount. That is cer- tracts. And at least 13 million Ameri- force all contractors doing business tainly a low figure, that 20 percent of cans, if they choose to work on Govern- with the Federal Government to be the cost will be added to every Federal ment contracts, would be forced into unionized. To be specific, Clinton has contract because of this requirement. involuntary union membership. Fi- issued an Executive order in draft I am troubled by the fact that no nally, the taxpayer would be forced to form—he hasn’t issued the order— committee of Congress has had the op- pay union wage levels higher than the which would require that anybody that portunity to review proposed language. level typically paid in the private sec- sells goods to the Federal Government There have been no hearings. None of tor and often above the level paid to become a party to a labor agreement— the millions and millions—13 million- many people who are paying the taxes in plain language, become a unionized plus—of American workers who are that fund the project. closed-shop company. These agree- going to be affected by this mandate Now, I wanted to make two points ments are nothing more than a clever have had an opportunity—or their rep- today, and then I will yield the floor. device proposed and written by the resentatives—to be heard on it. The First, this is a terrible Executive order. union bosses that all contractors would President has shown no interest in the This seems to be little more than polit- have to be unionized if you do business American people or in what they think. ical payoff. Those are strong words to with the Federal Government. He is simply putting a proposal up as a say on the floor of the U.S. Senate, but Now, this is a union-only mandate payback to the unions. It is just simply it is hard to find any other justifica- for anyone who sells to the Federal that. He has not submitted it to Con- tion or any other rationalization for Government. But that isn’t as far as it gress, and from what it would appear, barring almost 90 percent of American goes—not by a long way. These agree- he doesn’t plan to. If he wants to do it, workers from working on contracts for ments would force the contractor to this is the place he needs to do it— their Government, mandating that at have a union, but, in turn, it would bring it before the Congress and then least 13 million people join a union force anybody he buys from to have a see what happens to it. It would pass they do no want to join, and paying an union. Anybody that sold him a pencil through the normal checks and bal- additional $42 billion per year in new would have to be a union contractor, if ances between the Congress and the ad- labor costs. If that does not give the it were going to be used in Government ministration. The Congress is bypassed appearance of a political payoff, I business. So 13 million people, as Sen- and this would impose unions on busi- would like to know what does. It is ator GRAMM said, would be forced to nesses across the country, without the hard to think of any other explanation. join unions. But I think it would run a American people or the Congress hav- Second, and probably the most im- lot more than that because this thing ing anything to say about it. portant point that I want to make, is goes to the ultimate end of who would As the Senator from Georgia has so that sometimes things occur between have to join the union. Big fleas have eloquently stated, in America, we branches of Government that create ill little fleas upon their backs to bite didn’t elect a President to rule by de- feeling and hinder the ability to engage them, and little fleas have lesser fleas. cree. My State of North Carolina is a in bipartisanship. They make it more So this would go down to the ultimate right-to-work State. I am sure that difficult for us to do our job. If the end of who would have to join a union nonunion employees in North Carolina President follows through with his Ex- to comply with this proposed order. would be forced to become unionized S3406 CONGRESSIONAL RECORD — SENATE April 22, 1997 because of what the President has cumventing the law. We simply cannot cent of all family businesses do not done. They would have to join a union. allow this kind of power grab to go un- survive through the second generation, I understand that the checks and bal- checked. and 87 percent do not make it to a ances may be inconvenient to the INHERITANCE TAX third generation. The reason for this is President. He would rather do it by de- Mr. President, I also want to bring to pretty simple. The primary cause of cree. But that system has served us the attention of the Senate an item the demise of family farms and busi- well—the system of checks and bal- that I found this morning in the Wash- nesses after the death of a founder and ances—for over 200 years. The proposed ington Post. I got up thinking it was the founder’s spouse is the death tax. Executive order is a payback to the going to be a good morning, poured When a tax can take more than half labor union bosses, who spent hundreds myself a cup of coffee, got out the Post of the current valuation of the assets— of millions of dollars on behalf of the and the Washington Times, and was many of these assets are invested in President in last year’s election, and thumbing through and happened to machinery, in buildings, in land, and in who do not want to subject their plans come across a headline that certainly farm equipment, and the tax is more for American workers and employers to grabbed my attention. The Post arti- than half of that total valuation—very congressional scrutiny. They know it cle, written by Clay Chandler says, few families have the liquid assets would lose in the Congress. ‘‘Treasury Official Slams Estate Tax available to pay the immediate tax I am opposed to compulsory union- Rollback Effort. Changes Sought as and, therefore, have to liquidate the ism. No worker should be forced to join Part of Budget Pact.’’ Deputy Treasury farm, have to sell off acreage, sell the a union, and no employer should be Secretary Larry Summers, senior entire farm, sell off the business, or forced by the Federal Government to member of the Clinton administration, sell ownership in the business, and it be unionized as a condition of doing and someone whom the Post says is can’t be passed on to the family. business with the Federal Govern- clearly becoming one of the key play- Recently the U.S. Department of Ag- ment—particularly, not by an Execu- ers in the President’s economic agenda, riculture estimated that between the tive decree that has never seen the and certainly in the budget discus- years 1992 and 2002, more than 500,000 light of day in the Congress of the sions, has indicated that the efforts to farmers will retire and that 95 percent United States, or given the Members of roll back the inheritance tax as part of of these farms are sole proprietorships, the Congress an opportunity to oppose this year’s budget agreement is ‘‘moti- or family partnerships, and that every it or to speak on it. vated by selfishness.’’ He goes on to one of these estates, unless they are Mr. President, I yield the floor. say, ‘‘When it comes to the estate tax, Mr. COATS addressed the Chair. there is no case other than selfishness’’ under a very low threshold, are subject The PRESIDING OFFICER. The Sen- for providing relief to families from to death taxes. ator from Indiana is recognized. this death tax. Further, he asserts that On average, 75 percent of the farms in Mr. COATS. Mr. President, I yield the evidence put forth in support of re- America today consist of nonliquid as- myself 10 minutes from the time con- pealing the burdensome tax ‘‘is about sets, such as I mentioned—real estate trolled by the Senator from Georgia. as bad as it gets.’’ and farm equipment—making payment The PRESIDING OFFICER. The Sen- Mr. President, I would like to review of the death tax extraordinarily dif- ator is recognized. for the Senate the evidence that cur- ficult to achieve without liquidating Mr. COATS. Mr. President, I appre- rently exists about the effect of this so- capital. called inheritance or death tax and let ciate the efforts of the Senator from For small business owners, 33 percent the Members of the Senate and the Georgia in bringing to light an impor- report that they expect all or part of public decide whether or not this is ‘‘as tant issue that this Congress clearly their businesses will be liquidated bad as it gets’’ or is ‘‘selfishness’’ on needs to examine and examine quickly. when death taxes come due. Two basic problems exist with the the part of the American people. Among a survey of black-owner en- President’s attempt to unilaterally Currently the death tax would take terprises, nearly one-third say their overturn a 50-year-old law. The first is as much as 55 to 60 percent of a small heirs will have to sell the business to that it usurps the very function of the business owner’s assets at death. Whether you are a farmer who has pay the death tax, and more than 80 legislative branch, and appears to be a worked for years to build an estate, a percent report that they do not have payoff, a payoff to a special interest small businessman, or an individual sufficient assets to pay the death tax. group—big labor. who has worked successfully and The President, knowing that he can’t If that wasn’t bad enough, look at achieved some success and self-reliance secure the support of a majority of the the average cost of just paying those and prudence in terms of how you use Congress, simply decides to bypass the taxes. The average family business your money, or are someone who has Congress. I think it is a pure usurpa- spends nearly $20,000 in legal fees, planned for the future, upon death the $12,000 in accounting fees, and $11,000 tion of the role of the legislative family will find itself in a very un- branch. Second, it will cost the tax- for other advisers in order to do the pa- seemly situation, one that requires, perwork and the processing to compute payers hundreds of millions of dollars, immediately after the funeral, that the if not billions, in additional expenses. the tax and to sell the necessary assets family move right on down to the IRS to pay the death tax. To mandate that each agency seeking office to try to figure out how to deal to contract with the Government needs with the extraordinarily difficult prob- Mr. President, the point here is not to get big labor’s seal of approval be- lem; that is, the Federal inheritance how many examples we can give of fore making a contract award clearly is tax, or the so-called death tax. ‘‘bad and selfish’’ evidence that Mr. going to add substantial cost to Fed- It is particularly difficult for those Summers cited. I don’t think any of eral construction and to Federal con- who have run a farm, those who have this could be categorized as ‘‘bad and tracting. run a small business, those individuals selfish’’ evidence. That doesn’t serve If the Clinton administration wants who have paid a great price, and at the point to castigate Mr. Summers. to change the laws governing the great sacrifice, to accumulate some de- The bottom line is that the Congress awards of Federal contracts, it ought gree of wealth, to pass it on to the fam- owes it to all Americans, and particu- to have the courage to send the legisla- ily. Clearly, the situation that exists larly the American farmer and the tive changes to this Congress for con- today is that in many cases the farm or American small business men and sideration. If then it can make the case the business has to be sold instead of women and their families, to get relief to the American people that the passed on through the family from gen- from the current estate tax, which is a changes are justified, so be it. But it is eration after generation just to garner perverse tax that goes against the very simply unacceptable for the President the funds necessary to pay the estate things that we want Americans to to cut a deal with a special interest tax. When you are paying a 55 percent strive for. We want Americans to be group that has been supportive of him to 60 percent rate, it usually forces the self-reliant. We want them to save and politically, with such a deal having tre- sale of a particular business. to invest. We want them to build up mendous ramifications for the Amer- The White House Conference on their businesses and their farms. We ican economy and, arguably, cir- Small Business indicated that 70 per- want them to be prudent. We want April 22, 1997 CONGRESSIONAL RECORD — SENATE S3407 them to be self-reliant. And we want work hard. It is a disincentive to be The PRESIDING OFFICER. The Sen- them to have the ability to pass that successful, a disincentive to pursue the ator from Oklahoma is recognized. farm on to the next generation and the American dream because when you die Mr. NICKLES. Mr. President, I want next generation. the fruits of your labors will be taken to compliment my colleague from I have a very close friend who runs a away from you and away from your Georgia for his managing this past farm in western Kansas. It is a typical family and given to the Government. hour. I hope that my colleagues have farm that you find in the West with This is selfish? had a chance to listen very clearly. thousands and thousands of acres be- Mr. Summers, who speaks for the I would also like to compliment my cause of the sparse amount of rainfall— President and the Vice President, says colleague from Indiana on his very raising hogs and cattle, a great invest- this ‘‘is about as bad as it gets;’’ that forceful statement denouncing the ment in equipment and land, barely it is about as selfish as it gets; that it statement that was in the paper today, making it from year to year, depending is selfish to want to retain the fruits of reported to be made by Mr. Summers, on the weather. Some years are better your labors; that it is unselfish to give Deputy Assistant Secretary of the than others. When this individual it to the Government, which in many Treasury, when he said that those who dies—and their farm has been in the instances wastes the money that you want to cut inheritance taxes are family now for two generations—his have worked so hard for. wanting to do so for greedy individuals. son’s dream has been to continue the The President campaigned on repeal I just totally disagree. I am one of farm within the family. Yet, my friend of the exemption for the estate tax, those individuals who wants to reduce is faced with what farmers and busi- and Senator Dole when he was running the inheritance tax, and I don’t think I ness men and women all across this for President on his proposal to lower am trying to do it for greedy individ- country are faced with: The reality the estate tax. Now that we are debat- uals. I think the tax is unfair. It is too that, upon the death of he and his ing this in the budget, Mr. Summers high. spouse, most of the farm will have to comes along and says it is a selfish The Senator from Indiana mentioned be sold or liquidated in order to pay thing to want to do. I don’t think it the fact that farmers and ranchers worked hard in their lifetime to build the taxes. It is a double form of tax- selfish, Mr. President, to allow the up a ranch, farm, or estate, and find ation because the earnings from that American taxpayers to keep the fruits that Uncle Sam is taking 39 percent, farm have been taxed on a year-to-year of their hard-earned labors and not to maybe 45 percent, or 55 percent of that basis. have it taxed away to the point where estate. I think it is too high. It is high- So it is a governmental grab. they have to sell their farms, to sell er even than the income tax. Is it selfish to want hard-working their businesses, or to sell their assets If you have a taxable estate of $1 mil- Americans to be able to keep the assets just to pay the tax to the Government. lion and you are at the 39 percent tax they have accumulated through their Mr. President, I am a proud a cospon- bracket, that is too much. Why should ability or good fortune, hard work and sor of legislation—in fact, four pieces the Government be entitled to take 39 dedication? Is it selfish to say that of legislation—that call for repeal or at percent of a farm or ranch that has a least reduction in the amount of estate they can’t pass that on to their family value of $1.6 million—there is a $600,000 tax to counter the efforts that are cur- but they are better off giving it to the exemption and a $1 million estate—why Government so that Government can rently underway to eliminate even the should Uncle Sam be entitled to take make better use of that money than exemption. I am pleased, and I hope 40 percent, or, if you have a taxable es- the family to continue the business or that the Congress will hold firm on this tate of $3 million, maybe two or three continue the farm? issue as we go through our budget ne- restaurants or businesses that you put I think we have all heard the horror gotiations. together and the taxable estate is $3 stories about how $1 comes into Wash- I would like to, in closing, invite Mr. million, why should Uncle Sam be enti- ington, comes into the Government, Summers to visit some mom and pop tled to take over half? and suddenly disappears. We can’t businesses in Indiana that are hard hit Mr. Summers may think you are trace where it goes. Of the money by this devastating tax. I would like being greedy because you don’t want to which goes into fighting poverty, 65 them to visit some farms of some lose half of what you have built and percent never makes it to the people friends of mine who want to pass it on worked all your life to accumulate, and who are the recipients, who are at or to their children and grandchildren but you want to pass it on to your children. below the poverty line. It gets eaten up have to liquidate the farm in order to He thinks maybe you are trying to be in bureaucracy. It gets eaten up in pay the estate tax. Come out to Indi- greedy because you want to keep it in other special designations. ana and tell the family that is forced the family. Mr. Summers is wrong. So, Mr. President, the American to sell the farm or the business that I concur with my colleague from In- dream is not to die and pass everything has been in the family for more than diana. I hope that the administration you have worked so hard—Mr. Presi- 100 years that they are being selfish for will denounce, renounce, or disasso- dent, I ask unanimous consent for 3 ad- wanting to keep that farm in the fam- ciate themselves from his remarks be- ditional minutes. ily and not to turn that money over to cause trying to reduce the inheritance Mr. COVERDELL. Mr. President, I the Government. tax is not being greedy. yield 3 additional minutes to the Sen- Mr. President, the Federal Tax Code I tell my colleagues that this is one ator from Indiana. is the only part of this debate that can Senator who is going to be very ener- Mr. COATS. Mr. President, I thank truly be labeled selfish. The Govern- getic in trying to make sure, when that the distinguished Senator. ment has no right to take unjustly the tax bill comes up this year, that we are The PRESIDING OFFICER. The Sen- fruits of its citizens’ labors. going to have estate tax relief. ator is recognized for 3 additional min- I hope the President and the Vice I hope we will cut estate taxes for ev- utes. President will quickly disavow the erybody. I hope we will increase the ex- Mr. COATS. Mr. President, the Amer- statement made today, or reported emption because I do not think the ican dream has been to be prudent, to today in the Washington Post, by Mr. Federal Government should be entitled save, to try to make life better for Summers when he calls it selfish on to take part of the property that peo- your children and your grandchildren the part of the American people to try ple have worked their lifetime to pass than it has been for you. The current to retain the business of a farm that on to their children. I do not think inheritance tax system takes away they have worked so hard to acquire. Uncle Sam should be entitled to take that American dream—the dream that Mr. President, I yield the floor. I 40 or 50 or 55 percent. one generation can build upon the suc- thank the Senator from Georgia. Mr. President, I am not sure what cess of another to build a better life for The PRESIDING OFFICER. The Sen- time remains of Senator COVERDELL’s themselves and their children. ator from Georgia. time, but I ask unanimous consent to The current tax sends a message that Mr. COVERDELL. Mr. President, I speak as if in morning business for 10 the Government will take away what yield the remainder of my time to the minutes. you have earned and not allow you to Senator from Oklahoma, the assistant The PRESIDING OFFICER (Mr. pass it on. That is a disincentive to majority leader. COATS). Is there objection? The Chair S3408 CONGRESSIONAL RECORD — SENATE April 22, 1997 hears none, and it is so ordered. The administration tried to change the law quired, is the President’s Executive ac- Senator from Oklahoma is recognized by Executive order in March 1995. That tion requiring that if you are under age to speak as if in morning business for was contested in the courts. 27, if you buy cigarettes, you are re- 10 minutes. I might make note that in the No- quired to show an ID wherever you are f vember elections of 1994, Republicans buying them. And if retailers are found took control of the Senate and it was selling to minors or anybody under the LEGISLATING BY EXECUTIVE obvious that this legislation could not age of 27, they face civil penalties of ORDER pass Congress. So President Clinton, in $250 or more and could be subject to Mr. NICKLES. I would like to follow my opinion, overstepped his bounds other sanctions. Retailers reported to up on some of the statements that have and issued an Executive order in 1995 have sold cigarettes or smokeless to- been made by our colleagues concern- barring management from hiring re- bacco to someone under 27, without ing the executive branch’s current will- placement workers during a strike—a checking their photo ID, risk compli- ingness to legislate by Executive order. perfectly legal practice under the Na- ance checks being conducted in the fu- I have talked to the White House two tional Labor Relations Act. He issued ture. or three times now. I have let it be this order knowing that Congress had Maybe we should do that. I will tell known that I want to use whatever twice rejected legislation that would my colleagues, I do not want kids tools are available to get their atten- have done the same thing. The courts smoking. I have four kids. I absolutely tion and make sure they quit attempt- didn’t let him get away with it. do not want them to smoke. This is ing to legislate by Executive order. On February 2, 1996, the U.S. court of hazardous to their health. I have a Some of our colleagues may not be appeals threw out President Clinton’s mother who has emphysema, lung can- aware of what we are talking about, Executive order ruling that the Presi- cer, which is very serious. I absolutely but we have had two or three dis- dent’s action was clearly unlawful and do not want anybody to smoke. But if putes—maybe we should have had was preempted by the National Labor the President wants to have ID checks more—with the administration over Relations Act. Clearly, the court’s for anybody under age 27, or age 40 for the last few years about executive ac- message was a reminder that the Presi- that matter, he can introduce it in tions that clearly should be imple- dent does not have a blank check to Congress and maybe we can pass it. I mented through legislation by Con- adopt policies in direct conflict with think that is a proper prerogative of gress, the body elected by the people Federal laws established by Congress. the States. But at least it should go for legislative purposes. This adminis- The President does not have legisla- through the legislative route. He did tration, the Clinton administration, tive authority. I think that is what we not do that. has tried to bypass Congress and legis- are finding in a couple of his other Ex- He has advocated other Executive late by Executive order. I think they ecutive actions. Another example deals rules dealing with advertising. I sup- have done so knowing full well in many with the Grand Staircase-Escalante ported banning smoking on airplanes. I cases they could not get their desired National Monument where the Presi- may support banning various types of objective through Congress so they just dent in September 1996 unilaterally advertising. But we should go through decided to do it by fiat. took a 2 million acre coal-rich block of the legislative process. We should have I am here to say all of us, Democrats land in Utah and made it a national hearings. We should let elected people and Republicans, should reject that ap- monument. He did it without talking make a decision. I think the Presi- proach. We should uphold this institu- to Congress. He did it without consult- dent’s Executive action goes so far as tion, the legislative branch, the branch ing the Utah delegation. He did it with- to ban outdoor billboards or baseball of the people, and say this is why our out consulting the people who live and caps that say Marlboro, and so on. I forefathers had separation of powers. work in that area. He did it without think the President’s actions and the The Constitution is very clear. If you consulting the Governor of Utah. He FDA’s rules have exceeded the con- read the Constitution, it states in arti- basically said we are going to take that stitutional authority of the executive cle I, ‘‘All legislative powers herein 2 million acres and declare it a na- branch. I think that is wrong. granted shall be vested in a Congress of tional monument. Finally, Mr. President, let me bring the United States which shall consist Maybe I would support such a thing, up the latest proposed Executive order, of the Senate and the House of Rep- but again we have a committee, the and I say proposed because it has been resentatives.’’ ‘‘All legislative powers.’’ Energy And Natural Resources Com- announced by the President that he is It does not say some. It does not say mittee, that considers such bills. We going to issue an Executive order that that if the administration cannot ac- should have had a hearing on that leg- deals with Federal construction complish its objectives through the islation. There has never been a hear- projects which will in practice screen Congress it can go ahead and pass them ing. There has never been a chance for out nonunion businesses from partici- by Executive order. the Utah delegation to speak out on pating in Federal construction projects In the 10th amendment it says all that legislation. Is it good or not? I am or force their employees to join a other powers are reserved to the States not sure how I would vote. Maybe I union, the so-called project labor and to the people. So the executive would vote with the President. agreements. branch has the power to enforce the My point is he usurped congressional Mr. President, this is an egregious law but not to write it. That is the re- responsibility and basically said we are power grab by organized labor. If they sponsibility of the legislative branch. going to declare this a national monu- want to try to do this they should do it And then if people do not like the laws ment by Federal fiat. through the legislative branch. They we pass, they can vote for someone I might mention that when he did should see if they have the votes. We else. They have a chance to do that this—it was in September 1996, during have $239 billion of Federal construc- through the election process. a campaign—he had a press conference tion spending available between now There are a couple of cases where the around the Grand Canyon in Arizona. and 2002, and to come up with an Exec- administration has overstepped its He did not do it at a press conference utive order and say you need not apply bounds, and I think where Congress has in Utah because his decision was quite unless you have a union is totally spoken up, or should have spoken up. unpopular. wrong. Totally wrong. More than 80 One example was a case where the ad- My point is not whether his decision percent of the workers that are doing ministration tried to give organized is popular or not. He did it clearly for Federal work on construction projects labor a gift and issued an Executive political purposes. But he did not allow now, according to this proposal, need order to prohibit hiring replacement the people to speak. The President is not apply; or if you are going to apply workers during a strike. They tried to not king. He cannot do that. And you need to join a union. What about get Congress to pass a bill that would maybe this will be contested. Probably free competition? What about competi- do that in 1993 and 1994—and actually we did not speak out enough on it. tive bidding? What about the tax- passed legislation through the House Another example where I seriously payers? but could not get it passed through the think he has exceeded his Executive For the administration to try to Senate. So after the 1994 elections, the authority and I think legislation is re- make this kind of behind-the-scenes April 22, 1997 CONGRESSIONAL RECORD — SENATE S3409 deal with organized labor—and we have sibility of this body. That is called leg- through the committee which the Pre- reports that organized labor was writ- islation. And that is a subject for a siding Officer and I sit on together, the ing this regulation, that they were in- speech at another time. I am strongly Labor and Human Resources Commit- volved in formulating this regulation— opposed to the executive branch legis- tee. There, the Senator from Penn- to come up with this type of a power lating as well as the judicial branch sylvania noted we ought to vote on grab I think is absolutely wrong. If legislating. Both are wrong. This is the these people up or down, but we ought they want to do it, they should do it legislative branch. I as one Senator, to at least vote. through the legislative branch. Have whether I agree with the direction of The committee voted unanimously to somebody who supports this legislation the Executive order or the judicial de- send Alexis Herman’s name to the full introduce it. Let us debate it. Let us cision, I am going to speak out loudly Senate for consideration. As I said a find out where the votes are. Let us go and strongly and use tools available to moment ago, now it is getting to be the legislative route. Let us go the con- make sure the Congress remains the late April. I am told her nomination stitutional route. legislative branch of Government. will not be considered until something And so I have contacted the White Mr. President, I yield the floor and I is worked out on these project labor House and tried to let them know that thank my colleague from Connecticut agreements. I think that is regrettable. I am very sincere about trying to pro- for his patience. Again, I will discuss in a moment the tect the constitutional prerogatives of The PRESIDING OFFICER. The Sen- project labor agreement issue. Six Congress. This is the legislative body ator from Connecticut. months after an election, to be missing and I am very sincere about making Mr. DODD. Mr. President, are we in yet a meaningful and important mem- sure that the White House does not be- morning business? ber of the President’s Cabinet, I think come the legislative body by Executive The PRESIDING OFFICER. We are, is an unfortunate use of our power action. with Senators allowed to speak for up here, to deny the Senate even a vote on And so, Mr. President, I have told the to 5 minutes. this nomination. So I hope we would White House we are willing to use what Mr. DODD. I ask unanimous consent have that nomination come sooner actions we have at our disposal to try that I may be able to proceed for 10 rather than later, so we could have to get their attention. We have the minutes as in morning business, and I that individual sitting at the Cabinet confirmation process. We also have the may need a couple minutes beyond table. appropriations process. We have the ju- that, but I will try to move through f dicial process. We have other tools the material fairly quickly. available to try to convince the admin- The PRESIDING OFFICER. Without PROJECT LABOR AGREEMENTS istration they cannot legislate by Ex- objection, it is so ordered. Mr. DODD. Mr. President, let me ecutive order. That’s very much my in- Mr. DODD. I thank the Chair. briefly address these project labor tention. f agreements. Again, this is maybe con- I just noticed an article in the Thurs- fusing to some people because it sounds ALEXIS HERMAN NOMINATION day, April 17th Roll Call where Mr. rather esoteric: Project labor agree- Reed Hunt, the Federal Communica- Mr. DODD. Mr. President, first of all, ment. There is nothing new about tions Commission Chairman, is talking let me address if I can—and there are a project labor agreements. They go back about drafting a notice of proposed couple matters I want to speak on—the to the 1930’s. They have been a very ef- rulemaking to examine the idea of free issue of Alexis Herman. I have listened fective means by which governing bod- broadcast time for Federal candidates here to my colleagues address their ies, States, cities and the Federal Gov- and predicted that free time for can- concern about the Executive order re- ernment, where there have been major didates could be implemented in time garding project labor agreements. My public works projects, have been able for the 1998 elections. hope is that we would not be holding to bring people together to try to work Mr. President, we have campaign re- Alexis Herman hostage over a particu- out arrangements, in terms of wages, form before this body, and there is cer- lar matter that Members have some benefits, hours and so forth, in return tainly legitimate debate and we have concern about. And I respect that. I for which there would be no work stop- talked about having free time for polit- note my good friend and colleague pages, strikes and the like. ical candidates. Some people call it from Oklahoma is still on the floor. It I note Governor Pataki of New York food stamps for politicians. That is a was back in I think 1991 when Presi- has very effectively used project labor legitimate legislative item we should dent Bush issued an Executive order to agreements on projects in the State of discuss. But the FCC Chairman does prohibit project labor agreements. I do New York. Christine Todd Whitman, not have the authority to say by fiat, not recall a similar outcry that this the Governor of New Jersey, has used by direction from the administration, was acting without legislative author- project labor agreements on major pub- that we are going to give candidates ity. lic works projects in the State of New free time and mandate that or dictate I do not disagree, I say to my col- Jersey. There are numerous projects it or bribe the broadcasting authorities league, by the way, with his concern around the country, Federal projects— to enforce it. where executive branches, regardless of the Boston Harbor is the one I am most That is a serious mistake. If we are party, try to exceed their authority familiar with in New England—where going to say politicians are entitled to here. But nonetheless, I hope that de- there is a project labor agreement free time, let us have that as part of a spite the legitimacy or illegitimacy, there. bill. Let us debate it. But Mr. Hunt whatever one’s point of view is, on I might point out it was noted by our cannot do it. project labor agreements, Alexis Her- colleague from Texas that these We as a legislative body, Democrats man’s nomination can go forward. She project labor agreements result in tre- and Republicans, need to reassert our was proposed in December. The elec- mendous cost overruns. It is estimated legislative authority, our legislative tion was in November. This is almost right now, and the project is not com- responsibility, and we need to object. If May. We are missing a Secretary of plete—the estimated cost of the Boston we find the administration, the execu- Labor. And whether it is organized Harbor project was $6.1 or $6.3 billion. tive branch, trying to legislate, we labor, unions, management, it is im- It is estimated now, in no small meas- need to object. At a different time I portant there be someone at that table ure because of the project labor agree- will speak about the need to object to represent the interests of manage- ment, that project may be completed when the Supreme Court or courts are ment and labor. And the Secretary of for about $3.4 billion, substantially legislating as well, because we find Labor needs to be there. under the original estimates. So there that branch of Government is involved My colleague from Pennsylvania, is nothing inherent in this that says it in the legislative process. Right now Senator SPECTER, I think addressed is going to increase costs. In fact, it they are considering two cases legaliz- this issue appropriately back, as the has worked very, very well. ing assisted suicide. The Supreme Presiding Officer will recall, when The suggestion was also that non- Court does not have the authority to there was some question of whether or union businesses would be prohibited legalize anything. That is the respon- not the nomination was going to move from bidding. Nothing could be further S3410 CONGRESSIONAL RECORD — SENATE April 22, 1997 from the truth. That would be against I should back up and point out that tremely helpful to millions and mil- the law. In fact, I think, as someone of all trades, the construction trades lions of Americans. I encourage every- pointed out, in one of the Boston suffer the most injuries and death. one in this country to read this edi- projects—102 of the 257 subcontractors Even with a lot of improvements, it is tion, particularly young families. It is were nonunion firms; 102 of the 257. So highly dangerous work. So, even with very valuable information for people to the notion that nonunion firms would the improvements that have been made have. We are gathering new informa- be prohibited from being a part of these in occupational safety and health, con- tion, almost on a daily basis, about the projects is unfounded. struction work, just by its nature, as remarkable events that occur in the As I noted earlier, in October of 1992, one would well imagine, is very dan- earliest days of a child’s development, President Bush issued an Executive gerous. What we were looking for was about how important it is that we do order which prohibited Federal agen- to create some specific emphasis and everything we can to maximize paren- cies and Federal contractors from en- focus on the construction trades. So tal understanding and to provide what- tering into these project labor agree- that bill required those two points and ever support we can so these earliest ments. So the outrage that is being ex- further required increased civil and days turn out to be productive days in pressed because an Executive order has criminal penalties when there were the development of a child’s life. been issued to reinstate them—as I knowing violations of occupational As we all know, last week the Presi- said, I would be sympathetic if the out- safety and health standards, and it dent and the First Lady hosted an im- rage had been focused equally vocifer- would require employers to develop portant White House conference on this ously when President Bush banned specific procedures to ensure health very topic, bringing together leading these project labor agreements—as we and safety on building sites. The bill voices from around the country to dis- cuss the early development of children now hear with this President’s decision was never approved. We offered it and and how we could better support that to issue or allow these project labor had hearings on it, but it was never ap- development. Scientists have now pre- agreements to be used on Federal proved. If you, Mr. President, and my col- sented us with hard evidence of what projects. leagues had seen L’Ambiance Plaza, many parents have long held true— So, again on the Alexis Herman issue the devastation there, I think most have known, I think instinctively— I hope she will go forward. that children whose lives are stimu- On these project labor agreements, I would have come to the same conclu- sion that I did, that we need to do a lated from birth by words, by affection, think it is important we utilize what better job in monitoring these con- and by playful interactions with their has been a very effective tool for being struction sites. I pointed out, it was parents and other devoted caregivers able to complete very, very important the single largest construction tragedy are far more likely to develop to their public works projects. As I said earlier, in the State of Connecticut. The prob- full intellectual and emotional poten- these are not just used by the execu- lem is that lift-slab construction had tial than those who are not. tive branch at the national level, they caused hundreds of injuries around the All that we already knew about giv- have been used by Governors all across country, yet in most instances, on the ing children a good start in life still the country. specific site, the injury, although it holds true. Genetics, nutrition, wheth- f was bad, had not resulted in a death, so er a mother drinks or smokes—all L’AMBIANCE PLAZA reporting was not required. these factors still play a role in a So there was no warning ahead of child’s development. Now we also know Mr. DODD. Mr. President, tomorrow, time about the dangers of this type of that the environment that we provide the 23d of April, will mark the 10th an- construction. As a result of our efforts, to children, starting at the moment of niversary of a major tragedy in the you would have been required to report birth and into their earliest years, has State of Connecticut. It was April 23, those incidents when they happened so an astonishing impact on their poten- 1987, that 28 workers in Bridgeport, CT, the collective information would be tial to learn and to grow. lost their lives at a place called gathered and better decisions could be I do not pretend to understand all of L’Ambiance Plaza, a construction site. made about this kind of construction. the scientific studies. In fact, just the My colleague from Indiana may recall So, next week we will again gather to language of it, the jargon of it, can be that it was the largest industrial acci- commemorate the lives of the 28 men dazzling for those of us who are lay dent we had ever had in the State of whose lives were lost on that date 10 people in this area. But I am trying to Connecticut. It occurred during the years ago. Like all of my colleagues, I gain a basic grasp of the facts. Sci- construction of an apartment building hope never to have to attend another entists have now discovered, for in- using a technique called lift-slab con- such ceremony. My hope is still that stance, that the brain of a baby is struction. You would actually con- we will do a better job in improving the wired to learn. Starting at the very struct the floors and then, by hydraulic enforcement and the penalties in- first days, each time a parent holds, lift, lift the floors up. Within a matter volved, because that seems to be the rocks, or talks to her child, connec- of seconds, these floors collapsed and only way we get the kind of compliance tions are formed between the neurons took the lives of 28 of my constituents that is necessary. of the child’s brain. These connections, from Connecticut. f the building blocks of a child’s cog- It was a dreadful day, one that people nitive and emotional development, still talk about in our State. In fact, BRAIN DEVELOPMENT IN EARLY grow exponentially in the earliest early next week there will be a memo- CHILDHOOD years. rial service, with the families and oth- Mr. DODD. Mr. President, I rise to Just consider this. By the time a ers who are still feeling the pain of the talk about a subject about which I child is 3 years old, that child’s brain loss of their loved ones. know the Presiding Officer has a great has formed 1,000 trillion synapses, or We ended up banning, in the State of deal of interest, and that is the atten- connections between brain cells. Just Connecticut, lift-slab construction. tion that has most recently been fo- to give some idea of the magnitude of There were Federal regulations put out cused on the breakthroughs in our un- this, this evening if you have a starry on that construction as well. As a re- derstanding of the human brain and in night and you look up at the stars, you sult of that accident, in fact, my col- the early development of children. In should know that 1,000 trillion synap- league from Connecticut, Congressman fact, Newsweek just released a special ses is more than all the stars in the CHRISTOPHER SHAYS, who represents edition: ‘‘From Birth to Three. What Milky Way. So, as you gaze at the that congressional district, he and I in- you need to know, how speech begins, a heavens tonight and you look at the troduced legislation to create some baby’s brain, genes, emotions, what is Milky Way with all its stars, know new requirements to monitor health normal, what is not.’’ I commend that just in 36 months of a child’s life and safety on construction sites. That Newsweek for dedicating a special there are more synapses and more con- legislation would have created an of- issue to this subject matter. I think it nections formed than all those stars. fice of construction safety. It would is extremely worthwhile. That will give you some idea of what is have created a 15-member advisory Time magazine earlier did an issue occurring in these earliest days of a committee on construction safety. on education, which I think was ex- child’s life. April 22, 1997 CONGRESSIONAL RECORD — SENATE S3411 Scientists have found that these con- so more families can take advantage, these studies—I mentioned a moment nections in a child’s brain only survive even for 12 weeks, of the opportunity to ago this Newsweek article which I if they are reinforced, a sort of ‘‘use-it- stimulate a child’s early development. think will be very helpful—that we try or-lose-it’’ phenomenon. As an exam- In short, I think it means for us as to pull together here to figure out how ple, and I am very familiar with the policymakers that we need to think we can support these families, these one I am about to give you, studies carefully and critically about what we children, recognizing the economic have found that children who develop are doing for children in their earliest pressures, all the things that make it cataracts at an early age lose their years. I believe we in the Senate have more difficult today than in earlier ability to see, even after those cata- an extraordinary opportunity to help days to raise families the way the Pre- racts are removed because the brain families, to ensure that our Nation’s siding Officer and I may have been pathways for sight were not allowed to children are able to grasp and reach raised. That is not possible for many develop during the critical period for the highest rungs of their potential. people today. So we need to try to achieving sight. Why do I know about I have also joined with several of my come up with support structures that this? My oldest sister, Carolyn, a colleagues to introduce the Working will allow families to at least approxi- teacher in Connecticut, was born with Family Child Care Act of 1997. Given mate that world that existed for many cataracts many years ago. She is blind these scientific findings, quality child of us—not for ala—in a time when one today. Had we known, had we had the care can no longer be considered a lux- parent worked and another stayed information we have today, my parents ury. This bill will provide $500 million home and raised the family. might have been able to do something to meet supply shortages, including the I know the Presiding Officer cares differently. She has been a wonderful acute shortage of high-quality infant about this very much. I have had the teacher and an independent individual, care. Let’s talk about the families who privilege of working with him on these but I was struck when I read of this have no choice—not the families who issues. I look forward to being involved particular fact by what we know now have the choice of working or not. I with him on this one as well. There are that we did not know then. have my own feelings about that a lot of good things we can do to assist So this particular discovery came issue—but, let’s talk about the families families. With this new information racing home to me in relation to my who have no choice, they have to work. coming to us, not only is it desirous, oldest sister—what a difference the Or let’s talk about the parent who is but I think we have no other choice but current advances of knowledge and in- raising children on her own. The best to act and to see to it that these chil- formation might have made in her life. thing is a caring parent, but if for dren get the best start they possibly Although she has been tremendously whatever reason that caring parent can. successful with her physical handicap, cannot be with that child all the time, Mr. President, I appreciate my col- it struck me life might have been a lit- then we have to make sure that in league’s indulgence in allowing me a tle different for her had the informa- child-care settings there are quality little more time than I otherwise tion we know now about the develop- caregivers so these infants, in the ear- would have taken. ment of the brain been available then. liest days, get the next best thing to a I suggest the absence of a quorum. Other information shows that a baby mom and dad. The PRESIDING OFFICER. The who is not read to—the simple act of I am hopeful, as a result of this new clerk will call the roll. reading, even before a child can under- information, we can develop broad- The legislative clerk proceeded to stand the words—that child may later based, bipartisan support for quality call the roll. struggle with language skills. Simi- child care. We have done a lot on the Mr. BYRD. Mr. President, I ask unan- larly, a child who does not get the availability of child care, but the qual- imous consent that the order for the chance to play may later have dif- ity of the care has to be good as well. quorum call be rescinded. ficulty interacting with peers. If a parent cannot be there with that The PRESIDING OFFICER (Mr. As the Carnegie Corporation’s semi- child, then the child care provider has KEMPTHORNE). Without objection, it is nal publication, ‘‘Starting Points’’ so to know what they are doing. Hope- so ordered. The Senator from West Vir- succinctly states: fully, we will get support on this issue. ginia is recognized. How individuals function from preschool Our chairman, Senator JEFFORDS of Mr. BYRD. I thank the Chair. Mr. years all the way through adolescence and Vermont, is taking a leadership role in President, what is the question before even adulthood hinges, to a significant ex- this area, and I commend him for it. I the Senate? tent, on the experiences children have in am soon going to introduce a bill that The PRESIDING OFFICER. We are their first three years. will put us on a path to fully funding currently in morning business. Sen- What does this exciting research Head Start. Again, this has been a con- ators are allowed to speak for up to 5 mean to us as policymakers? I think it troversial matter. We have authorized minutes each. means that what we thought of as full funding, but we have never come Mr. BYRD. Mr. President, I ask unan- ‘‘early interventions’’ to help children up with the money. We know Head imous consent that I may be permitted learn may not have been early enough. Start works and makes a difference in to speak for not to exceed 15 minutes. It means that programs for school-age the lives of children. Hopefully, we can The PRESIDING OFFICER. Without children and even for preschool chil- get broad-based support. It is expen- objection, it is so ordered. dren miss a window of opportunity, the sive, I know it. But, we have to come Mr. BYRD. It will more than likely extraordinary potential for learning up with a means to do it. be 10 minutes, or thereabout. that exists in a child’s brain before the We have to look at our priorities in The PRESIDING OFFICER. The Sen- age of 3. light of this new information. Whether ator from West Virginia is recognized. It means we need to start even ear- it is 5 years, 7 years, or 8 years, we Mr. BYRD. I thank the Chair. lier, at the first day of a child’s life need to say that at the end of that (The remarks of Mr. BYRD pertaining with guaranteed parental leave, for in- time, we will fully fund Head Start. I to the introduction of S. 630 are located stance, which the Chair was so instru- am willing to talk with anyone about in today’s RECORD under ‘‘Statements mental in helping us pass a few years the fastest possible way to do this. on Introduced Bills and Joint Resolu- ago. Providing even those few months Recently, our colleague from Utah, tions.’’) for parents who have to work to be Senator HATCH, with Senator KENNEDY Mr. BYRD. Mr. President, I yield the with their children is a lot better than of Massachusetts, introduced legisla- floor. they used to have. As the Chair knows, tion to insure our children and to I suggest the absence of a quorum. I would like to lower the threshold thereby ensure that untreated injuries The PRESIDING OFFICER. The from 50 employees to 25, so we can in- or illnesses do not impede a child’s de- clerk will call the roll. clude 13 million additional people in velopment in the most critical years. I The bill clerk proceeded to call the the country who today cannot take ad- commend them for their work. roll. vantage of family leave. I am still Mr. President, there are a lot of good Mr. CHAFEE. Mr. President, I ask going to try to persuade him to support things going on that our colleagues are unanimous consent that the order for this. I hope we will lower the threshold working on. I urge, in light of some of the quorum call be rescinded. S3412 CONGRESSIONAL RECORD — SENATE April 22, 1997 The PRESIDING OFFICER. Without riod for environmental legislation. The days, two-thirds of the rivers, lakes, objection, it is so ordered. key players in that legislation, Mr. and streams of the United States were f President, were on the very committee considered nonfishable and nonswim- on which you serve so ably, the Envi- mable. Now the reverse is true. Two- THE 27TH ANNIVERSARY OF ronment and Public Works Committee. thirds of the rivers and lakes and EARTH DAY We remember that Democrats like Jen- streams in America are considered Mr. CHAFEE. Mr. President, today nings Randolph from West Virginia and fishable and swimmable. Every year we celebrate the 27th anniversary of Ed Muskie from Maine worked closely that percentage rises. the first Earth Day. In the spirit of with several Republicans, including What have we done on auto emis- that celebration, it behooves us to re- Howard Baker from Tennessee and Bob sions? Well, from 1970 to 1994, the num- member how the first Earth Day came Stafford from Vermont. Indeed, their ber of vehicle miles traveled in the about, and what brought it about. I success was the result of a nonpartisan, United States increased by 111 percent, know the distinguished occupant of the bipartisan cooperation. Magnificent more than a doubling of VMT. Yet, in Chair participates in Earth Day activi- progress was made. that same period, the combined emis- ties and is deeply interested and in- It is hard to think that, before 1970, sions of the 6 principal air pollutants volved in environmental matters. Per- none of the laws or institutions that I dropped by 24 percent. In other words, haps he also will be interested in a lit- am going to rattle off existed; but then we had dramatic emissions reductions tle history of what happened. they passed in 1970, 1971, and 1972. In- while vehicle miles traveled shot up. In the 1960’s, a series of events oc- deed, under President Richard Nixon, Lead in the air—which everybody curred that shocked the Nation into an the Environmental Protection Agency knows has a terrible effect on the men- awareness of the need to protect the was created. We never had an Environ- tal development of children, particu- environment. Rachel Carson wrote her mental Protection Agency. The Presi- larly in congested inner cities—was re- famous book, ‘‘Silent Spring,’’ in 1962. dent’s Council on Environmental Qual- duced by 98 percent—a 98-percent re- The country was appalled by her rev- ity was born; the National Environ- duction of lead in the air. elations of the destruction caused to mental Policy Act, or NEPA, the guid- How did that come about? Because our environment by widespread pes- ing law upon which so many of our acts we mandated the use of unleaded gaso- ticide use—DDT and others, for exam- depend; the Clean Air Act; the Clean line in the mid-1970s. What an achieve- ple. Then, in 1969, another extraor- Water Act; the Endangered Species ment. dinary event occurred—the Cuyahoga Act. I wasn’t here at the time, but the The Montreal Protocol, as I men- River in Cleveland caught fire. When a Endangered Species Act passed on the tioned before, has been a tremendous river catches fire, it certainly is an eye floor of the Senate 92 to 0. That is the success. Let’s look at this chart. The catcher. Why did it catch fire? It was way the Senate felt about environ- Montreal Protocol was signed in 1985. so polluted with oils and other sub- mental laws. Since then, because of the restrictions stances that it suddenly burst into Then another Republican President, on the production of chlorofluoro- flames. That is, somebody threw a Ronald Reagan, had the United States carbons—it is now projected that the match into the river and it caught fire. take the lead internationally in envi- ozone layer will gradually recover, and Extraordinary. So in the early 1960’s, a Democratic ronmental matters, and we signed the return to pre-ozone-hole levels by the President, President Lyndon Johnson, Montreal Protocol in 1987, to eliminate year 2050. What are laid the foundation for the major envi- the production of chlorofluorocarbons, chlorofluorocarbons? They are cooling ronmental laws that came later. He the gaseous culprit responsible for the agents found in refrigerators and air signed antipollution and open space destruction of the ozone layer. It was conditioners in our homes, offices and legislation into law, including the cre- under still another Republican Presi- automobiles. Because of the leadership ation of the Redwood National Park, dent, George Bush, that the 1990 Clean shown by President Reagan and later the Wilderness Act, and the Land and Air Amendments were passed. In addi- President Bush, we have made great Water Conservation Fund. I might say, tion, President Bush personally went progress. This red line shows what Mr. President, it was moneys from that to the Earth Summit at Rio de Janeiro would have happened without the con- Land and Water Conservation Fund and signed the International Treaty on trols of the Montreal Protocol. that enabled me, as Governor of our Global Climate. So we have seen Re- Instead, we have been able not only State of Rhode Island, to purchase land publicans and Democrats in the White to stabilize chlorine loadings, but actu- for open space, wetlands, and parks. House exhibit strong leadership. This ally reduce them. That line will go The improvements we made continue was a bipartisan effort. down and down. All of this has tremen- to give pleasure to thousands of Rhode This bipartisanship has brought dous effects on what comes through Islanders in the past and will do so for about tremendous, tangible change. this protective shield, the upper atmos- literally millions of individuals in the Let us review the bidding to see what phere. future. That is a wonderful law, the has taken place in the past 27 years. Now, what about the Endangered Land and Water Conservation Fund. Have these acts done a good job—the Species Act? That is something the When Senator Gaylord Nelson of Wis- Clean Water Act, the Clean Air Act, Presiding Officer has worked so hard consin proposed the idea of Earth Day and the Endangered Species Act? It is a on. The endangered species are—per- in 1970, even he didn’t know how it remarkable story. haps—the proverbial ‘‘canaries in the would galvanize Americans into action, Before the EPA, before all of the laws coal mine’’; that is, when a canary how it would catch the imagination of now on the books, there was lead in our keels over, it shows there is dangerous Americans. The first Earth Day was a air and sewage in our rivers. I can re- gas. It gives you a hint that something phenomenal success, a reflection of member at the time when I was Sec- is wrong. America’s strong conviction for clean- retary of the Navy, we took a trip on The best way to judge how successful ing up the environment. I can remem- the Sequoia, the Presidential yacht, we have been in preserving the habitat ber some of the activities that took down the Potomac River here in Wash- is to look at how the plant and animal place on Earth Day where I was—clean- ington. I invited my British counter- species are doing. If the plant and ani- ing up the riverbeds where there were part, the equivalent of our Navy Sec- mal life around us is in trouble, that old tires and dishwashers and refrig- retary, to join us. It was a lovely July means trouble for us in the future. erators and many other things thrown evening, calm and quiet, not a ripple The Endangered Species Act is over the bank and down into the on the water. As we started down the geared toward preserving the habitat. stream. We took time to clean our river, the propeller churned up the How do you save the animals? You pre- nearby streams, as countless others water and it was like going for a ride serve the habitat and thus bring them did. Ours was one small activity in one down the sewer. The smells were so back from the brink of extinction. small section of the country, but it overpowering from the polluted river Since its enactment in 1973, by a vote made a difference. water that we all had to retreat in- of 92 to 0 in this Chamber—not a single The years that immediately followed board to have our dinner. That is not Senator in 1973 voted against that the first Earth Day were a vibrant pe- the way it is now, though. In those law—the populations of whooping April 22, 1997 CONGRESSIONAL RECORD — SENATE S3413 cranes, brown pelicans, and the per- tion of wetlands, and there are Federal that, I have decided to include in the egrine falcon have come back from dollars to match private contributions. RECORD an extensive interview with near extinction. To date, well over 4 million acres former Senator Talmadge published by The bald eagle has increased from a have been protected, restored, or en- The Macon, GA, Telegraph. That news- low of 400 nesting pairs in 1963 to just hanced—some of it through easement, paper’s Randall Savage conducted the over 4,700 pairs in 1995. Think of it. In and some of it through purchases by interview. the Continental United States, the the United States and Canada. And 20 Mr. Savage asked good questions and lower 48 States, as they say, there were million additional acres are protected Herman Talmadge gave great answers. only 400 nesting pairs of bald eagles in in Mexico. His assessment of many things about 1963. Thirty-two years later—in 1995— Has it done any good? Listen to this: America reflect the fact that Herman there are now 4,700 nesting pairs. Re- In 1996, there was the largest migration Talmadge still has the good judgment markable. of waterfowl in the previous 40 years— that he possessed while in the Senate. The grizzly bear has been saved from 89.5 million ducks, which is 7 million Mr. President, accordingly, I ask extinction and brought back from the more than 2 years before, and 18 mil- unanimous consent that the February endangered list to the threatened list. lion more than the year before that mi- 11, 1997, interview, headed ‘‘Hummon’’ The California gray whale and Amer- grated south for the winter; 90 million be printed in the RECORD. ican alligator have recovered to the ducks, the largest migration in the There being no objection, the inter- point where they have been removed past 41 years. That came about because view was ordered to be printed in the from the endangered list. of the North American Waterfowl Plan, RECORD, as follows: Of the 960 species currently listed on which I mentioned before. [From the Macon Telegraph, Feb. 11, 1997] the endangered species list, more than So it seems that the way that the ‘‘HUMMON’’ 40 percent are stable and gaining plan operates, involving partnership (By Randall Savage) ground. And for many others the rate between the States, the Federal Gov- HAMPTON.—Former U.S. Sen. Herman E. of decline has been reduced. ernment, and private entities, it rep- Talmadge is 83 now. The recovery of the striped bass is resents the wave of the future, which He doesn’t dip, smoke or chew anymore, al- another success story. The striped bass all of us ought to think about as we though he’s not above nibbling on a cigar is a magnificent fighting fish, one that ponder how fast we can save these wet- now and then. A year ago, doctors removed a has been valued up and down the At- lands and wildlife habitat areas. cancerous tumor from his throat, and he un- lantic coast for centuries. We are not done. We should not rest derwent 25 radiation treatments. It is interesting to hear what the ‘‘They can’t find any trace of it now,’’ he on our laurels. Some of the trickiest said. original settlers said, and what Capt. and most difficult environmental prob- But Talmadge no longer runs two miles John Smith said in 1614, over 350 years lems lie ahead, and we have to address every day, as he did for more than 20 years. ago. This is what he said about the these with purpose and ingenuity. We He gave that up five years ago, opting for striped bass. ‘‘I myself, at the turning took on the formidable environmental brisk daily walks instead. Arthritis, how- of the tide, have seen such multitudes challenges of the past and were suc- ever, had ended even those. The condition pass out of a pond that it seemed to me cessful. Now we look to the future. We hinders his mobility, and he walks with a that one might go over their backs cane. shouldn’t just rest on our laurels, as I ‘‘I got to be an old man at 82. I was a young dryshod.’’ There were so many it said. We have to remember that these man until then,’’ Talmadge said. seemed you could walk across on their efforts can never succeed without Nevertheless, Talmadge, one of Georgia’s backs. strong and sincere bipartisan coopera- most powerful politicians, is as politically So it was with great alarm that we tion—Republicans and Democrats astute today as he was when he left the Sen- learned of the precipitous decline of working together; Congress and the ad- ate 17 years ago. And he’s still delighted to the striped bass in the late 1970’s. And, ministration, likewise. share his views on politics and the world: by 1983, commercial harvest had In conclusion, I just want to quote Question. You held political office for more dropped by 77 percent as compared to than 30 years as a Democrat. What do you probably the greatest environmental think of the Democratic Party? the previous year. By 1983, the sports President of them all, Teddy Roosevelt. Answer. I think well of some of them and harvest of striped bass had declined by This is what he said 86 years ago. ‘‘Of poorly of others. I think they helped the Re- 85 percent from 4 years earlier. So we all the questions which can come be- publican Party gain power by continuing to inaugurated an Emergency Striped fore this Nation, short of the actual push their liberal policies when the country Bass Study by the Fish and Wildlife preservation of its existence in a great was becoming more conservative. Service and the National Marine Fish- war, there is none which compares in Question. Do you still consider your self a Democrat? eries Service. I am proud to say that importance with the central task of Answer. I guess you could classify me as an this legislation came out of the Envi- leaving this land even a better land for independent. I vote for the man or woman. ronment and Public Works Committee. our descendants than it is for us.’’ For a number of years, Democrats—the na- And fewer than 20 years later, Those are pretty good words for us to tional Democrats in particular—have be- through the cooperative efforts of remember as we celebrate Earth Day in come more and more liberal in their think- State fish and wildlife agencies and the 1997—words to be considered while ing and actions. Federal agencies, most Atlantic striped thinking of the future and preserving Question. How so? bass stocks have recovered to healthy Answer. Excessive taxes. Excessive spend- the environment for our children and ing. Excessive regulations, Excessive govern- pre-1979 levels. This dramatic turn- grandchildren and those who come ment. around is proof that, if we act quickly after us. Question. And you think the Democratic to reduce the threats and preserve f Party is involved too heavily in that? habitat, we can recover imperiled spe- Answer. Yes. The Republican takeover (of cies. ‘‘HUMMON’’ TALMADGE HIGHWAY Congress) slowed down the Democrats. Wetlands loss has slowed dramati- BEING DEDICATED TOMORROW They’d been reacting to popular thinking in- cally. When it comes to wetlands con- IN HAMPTON, GA stead of pursuing sound policies. They lean whichever way the wind is blowing. servation, perhaps no program has been Mr. HELMS. Mr. President, tomor- Questions. What do you think of House as successful as the North American row, down in Hampton, GA, a highway Speaker Newt Gingrich? Waterfowl Management Plan—signed will be dedicated to one of our former Answer. I think you have to give Newt 11 years ago, in 1986, by the United colleagues, the distinguished former Gingrich credit with leading the Republican States and Canada, and later, Mexico. Senator Herman Talmadge. It would be revolution that resulted in the Republicans Under this plan, the North American fun to be there tomorrow and see Her- taking over both houses of Congress. But I Waterfowl Management Plan, partner- man’s reaction when the honor is an- don’t know what I think of him. I listen to ships are established bringing together nounced at a luncheon in the ballroom him talk and I find myself agreeing with a lot of what he’s saying. But he irritates me. Federal and local governments, and of the Atlanta Motor Speedway. When he gets through speaking, I’m irritated nonprofit groups such as Ducks Unlim- Fewer than one-fourth (23) of today’s over what he said. I don’t know why. ited, and private donors, as well as Members of the Senate were here when Question. The Republican takeover of Con- landowners—to work on the conserva- Senator Talmadge was. Because of gress—what do you think of that? S3414 CONGRESSIONAL RECORD — SENATE April 22, 1997 Answer. Well, it remains to be seen. They nalism teachers instilled those fundamental Twenty-five years ago, April 21, 1972, slowed the expenditures of government. They virtues in their students. Now, they’re pros- the Federal debt stood at made the Democrats pause and look and lis- ecutors of anybody holding public office. A $427,853,000,000 (Four hundred twenty- ten. In fact, the only reason (President) Clin- politician has to prove his innocence every seven billion, eight hundred fifty-three ton got elected the last time is because he day. (Media) treats everyone as if they’re foreclosed (GOP presidential hopeful Bob) crooks. million), which reflects a debt increase Dole on all his issues. He took his issues Question. How is the world different today of nearly $5 trillion—$4,924,880,602,413.77 away from him. from what it was before you retired? (four trillion, nine hundred twenty-four Question. You mean he adopted Sen. Dole’s Answer. The collapse of communism has billion, eight hundred eighty million, platform and turned it into his own? When made it a different world. Freedom is begin- six hundred two thousand, four hun- we talked last week, you mentioned that you ning to be brought to all countries through- dred thirteen dollars and seventy-seven think Bill Clinton is the cleverest president out the world, almost all of them. During my cents), during the past 25 years. since Franklin Roosevelt. Why do you say days in the Senate, we wondered what was f that? going to prevail, communism or freedom. Answer. He can turn it around on a dime, Question. What are you most proud of? SUPPLEMENT TO COMMITTEE ON and nobody ever notices. I give that fellow Answer. My accomplishments as governor RULES AND ADMINISTRATION (former presidential consultant Dick) Morris of the state of Georgia. I think Georgia made RULES OF PROCEDURE credit for that. President Clinton was talk- its greatest progress when I was governor. It ing about gays in the military and divisive became truly the Empire State of the South. Mr. WARNER. Mr. President, on things like that, and (Morris) takes over his It’s been making progress since that time in April 17, 1997, the Senate Committee on campaign and turns it around 180 degrees. He building schools, protecting natural re- Rules and Administration adopted took Dole’s issues away from him, and he got sources, building roads and bridges—you rules of procedure as a supplement to elected on Dole’s issues. name it. We paved 10,000 miles of roads. We the Committee Rules of Procedure for Question. What do you think of President gave teachers a raise in salary of over 100 Clinton’s performance so far? percent. We built new buildings. We built the purpose of the committee’s inves- Answer. I’d give him a plus on some things, health centers and hospitals throughout the tigation of the election for U.S. Sen- like turning away from his liberal policies state. When I took office, the only hospitals ator in the State of Louisiana in 1996. and adopting basic conservative policies and we had in Georgia were a few in the larger I ask unanimous consent that the getting elected. cities. If a person had an accident in rural rules of procedure be printed in the Question. What are some minuses? Georgia, they had to go to Macon or Savan- RECORD. Answer. Shifting around and not having nah or Jacksonville, Fla., to get treatment. any strong opinions on anything. There being no objection, the mate- Now they’re all over. rial was ordered to be printed in the Questions. What do you think of U.S. Sen. Question. If you were running for office Paul Coverdell, the man who holds the seat today, what would your platform be? RECORD, as follows: you held so long? Answer. It would be what I’ve always run COMMITTEE ON RULES AND ADMINISTRATION Answer. I don’t know Coverdell well. I’ve on—economical government, service to the COMMITTEE MOTION had two or three conversations with him. constituency and hard work. (As passed by the Committee, April 17, 1997) But I’ve been impressed with him. I check Question. What advice would you give to Whereas, the United States Constitution, his voting record every week in the Sunday anyone who’d listen? paper. I like the way he votes. Thus far, I Article I, Section 5 provides that the Senate Answer. Work hard and stay out of trouble. is ‘‘the Judge of the Elections, Returns, and think his voting record has been good. I Save your money and make prudent invest- agree with him more than 90 percent of the Qualifications of its own Members * * *’’; ments. Take an Egyptian or Indian who Whereas, the United States Supreme Court time. I think he’s doing all right. comes to this country. They don’t speak the Question. What concerns you most about has reviewed this Constitutional provision English language, and they work for mini- on several occasions and has held: ‘‘[The government in 1997? mum wage. But they save half their money. Answer. Too much taxes. Too much regula- Senate] is the judge of elections, returns and In a few years, they’re wealthy. They save tion. Too much expenditure. Basically, the qualifications of its members. * * * It is fully their money and make prudent investments. government does for people what they can- empowered, and may determine such matters Once an avid hunter, Talmadge no longer not do for themselves. without the aid of the House of Representa- pursues that sport because of his arthritic Question. What about society? What do you tives or the Executive or Judicial Depart- knees, but he spends many hours fishing in think of society in general? ment,’’ [Reed et al. v. The County Comm’rs of one of the five lakes near his home in Hamp- Answer. It reminds me of the latter days of Delaware County, Penn., 277 U.S. 376, 388 ton. After he finished the interview, he sat the Roman Empire. We have gotten away (1928)]; and down to rest in his leather recliner sitting from faith and values, the things that made Whereas, in the course of Senate debate, it between a portrait of himself on the rear this country great. It’s a sad commentary. has been stated: ‘‘The Constitution vested in wall and a portrait of his famous father, Crime is rampant, and children are being this body not only the power but the duty to Gene Talmadge, over the mantel. born out of wedlock and looking to their judge, when there is a challenged election re- ‘‘Come see me in two or three months,’’ government for support. There’s declining sult involving the office of U.S. Senator.’’ Talmadge smiled and said. ‘‘When the weath- morality and a lack of discipline all over the [Congressional Record Vol. 121, Part 1, p. er warms up, we’ll go fishing.’’ country. 440]. Question. What should be done to turn f Therefore, the Committee on Rules and things around? Administration, having been given jurisdic- Answer. We should have substitute fathers THE VERY BAD DEBT BOXSCORE tion over ‘‘contested elections’’ under Rule and mothers for these (parentless and single- Mr. HELMS. Mr. President, at the 25 of the Standing Rules of the Senate, au- parent) people. They could teach them val- close of business yesterday, Monday, thorizes the Chairman, in consultation with the ranking minority member, to direct and ues while they’re young. The substitutes April 21, 1997, the Federal debt stood at would be role models for them. They would conduct an Investigation of such scope as have role models besides prostitutes and $5,352,733,602,413.77. (Five trillion, three deemed necessary by the Chairman, into ille- drug peddlers. hundred fifty-two billion, seven hun- gal or improper activities to determine the Question. How would you hook up young- dred thirty-three million, six hundred existence or absence of a body of fact that sters with the substitutes? two thousand, four hundred thirteen would justify the Senate in making the de- Answer. It would take an organized effort dollars and seventy-seven cents.) termination that fraud, irregularities or on the part of all churches in the country, Five years ago, April 21, 1992, the other errors, in the aggregate, affected the all of the governments in the country, all of Federal debt stood at $3,885,690,000,000. outcome of the election for United States the civic clubs in the country. It would be Senator in the state of Louisiana in 1996. the most mammoth undertaking we’ve had (Three trillion, eight hundred eighty- This Committee Motion will operate in in a long time. But it could save the country. five billion, six hundred ninety mil- conjunction with and concurrent to the It would take a long time. But a good start lion.) Standing Rules of the Senate. In addition, would be to save 50 children in Henry County Ten years ago, April 21, 1987, the Fed- the following Rules of Procedure are applica- (where Talmadge lives). eral debt stood at $2,271,325,000,000. ble, as a supplement to the Committee Rules Question. You’ve had a few bouts with the (Two trillion, two hundred seventy-one of Procedure: news media. What do you think of the billion, three hundred twenty-five mil- A. Full Committee subpoenas: The chairman, media? lion.) with the approval of the ranking minority Answer. They’ve adopted a new policy member of the Committee, is authorized to since World War II when I first started out in Fifteen years ago, April 21, 1982, the subpoena the attendance of witnesses or the politics. They used to want to know why, Federal debt stood at $1,066,640,000,000. production of memoranda, documents, who, where, what, when and how. Those were (One trillion, sixty-six billion, six hun- records, or any other materials at a hearing fundamental virtues of journalism. The jour- dred forty million.) or deposition, provided that the chairman April 22, 1997 CONGRESSIONAL RECORD — SENATE S3415 may subpoena attendance or production (2) Witnesses may be accompanied at a WILD BLUE THUNDER without the approval of the ranking minor- deposition by counsel to advise them of their ity member where the chairman or a staff of- legal rights, subject to the provisions of Sec- Mr. FORD. Mr. President, the city of ficer designated by him has not received no- tion D. Louisville and the U.S. Air Force have tification from the ranking minority mem- (3) Oaths at depositions may be adminis- proven beyond a shadow of a doubt that ber or a staff officer designated by him of tered by an individual authorized by local they know how to throw a party. On disapproval of the subpoena within 72 hours, law to administer oaths. Questions shall be Saturday, April 20, 44 tons of fireworks excluding Saturdays and Sundays, of being propounded orally by Committee member(s) were loaded onto barges in the Ohio notified of the subpoena. If a subpoena is dis- or Committee staff or consultant(s). If a wit- River and 225 food booths dished up ev- approved by the ranking minority member ness objects to a question and refuses to tes- as provided in this section, the subpoena tify, the objection shall be noted for the erything from corn dogs to barbecue to may be authorized by vote of the members of record and the Committee member(s) or Cajun wings. The armed services the Committee. When the Committee or Committee staff or consultant(s) may pro- brought 130 planes, including nearly chairman authorizes subpoenas, subpoenas ceed with the remainder of the deposition. every type of aircraft owned by the Air may be issued upon the signature of the (4) The Committee shall see that the testi- Force, helicopters, jets, and vintage chairman or any other member of the Com- mony is transcribed or electronically re- planes. mittee designated by the chairman. corded (which may include audio or audio/ When the party began, as many as B. Quorum: One member of the Committee video recordings). If it is transcribed, the shall constitute a quorum for taking sworn transcript shall be made available for inspec- 650,000 people were given the perform- or unsworn testimony. tion by the witness or his or her counsel ance of a lifetime. Thunder Over Louis- C. Swearing Witnesses: All witnesses at pub- under Committee supervision. The witness ville, part of the Kentucky Derby Fes- lic or executive hearings who testify to mat- shall sign a copy of the transcript and may tival, has already gained a reputation ters of fact shall be sworn. Any Member of request changes to it. If the witness fails to as a one-of-a-kind air show and fire- the Committee is authorized to administer sign a copy, the staff shall note that fact on works display. But I think everyone an oath. the transcript. The individual administering agreed that this year will be hard to D. Witness Counsel: Counsel retained by any the oath shall certify on the transcript that witness and accompanying such witness the witness was duly sworn in his presence, top. shall be permitted to be present during the the transcriber shall certify that the tran- Called Wild Blue Thunder in tribute testimony of such witness at any public or script is a true record of the testimony, and to the 50th anniversary of the U.S. Air executive hearing or deposition, and to ad- the transcript shall then be filed with the Force, it was the world’s largest show vise such witness while he is testifying, of chief clerk of the Committee. The chairman of its kind in America, both for the his legal rights. Provided, however, that in or a staff officer designated by him may stip- fireworks display and for the air per- the case of any witness who is an officer or ulate with the witness to changes in the pro- formances. employee of the government, or of a corpora- cedure; deviations from this procedure which tion or association, the Committee chairman The fireworks were reported to be do not substantially impair the reliability of larger than the opening and closing of may rule that representation by counsel the record shall not relieve the witness from from the government, corporation, or asso- his or her obligation to testify truthfully. the Atlanta Olympics combined and of ciation, or by counsel representing other (5) The Chairman and the ranking minor- the Inaugural fireworks. The impres- witnesses, creates a conflict of interest, and ity member, acting jointly, or the Commit- sive show culminated in an 11,000-foot that the witness may only be represented tee may authorize Committee staff or con- waterfall of fireworks off the Clark Me- during deposition by Committee staff or con- sultants to take testimony orally, by sworn morial Bridge. sultant or during testimony before the Com- statement, or by deposition. In the case of mittee by personal counsel not from the gov- The television and radio commercials depositions, both the Chairman and ranking for Thunder Over Louisville use the tag ernment, corporation, or association, or by minority member shall have the right to des- personal counsel not representing other wit- ignate Committee staff or consultants to ask line ‘‘you haven’t seen anything until nesses. This rule shall not be construed to questions at the deposition. This section you’ve seen everything.’’ The Air Force excuse a witness from testifying in the event shall only be applicable subsequent to ap- and other armed services certainly his counsel is ejected for conducting himself proval by the Senate of authority for the pulled out all the stops with air per- in such a manner so as to prevent, impede, Committee to take depositions by Commit- formances showcasing the ‘‘Thunder- disrupt, obstruct, or interfere with the or- tee staff or consultants. derly administration of the hearings; nor birds USAF Aerobatic Team,’’ the F– F. Interviews and General Inquiry: Commit- 117A stealth fighter, the B–2 stealth shall this rule be construed as authorizing tee staff or consultants hired by or detailed counsel to coach the witness or answer for to the Committee may conduct interviews of bomber, the SR–71A strategic recon- the witness. The failure of any witness to se- potential witnesses and otherwise obtain in- naissance plane, the B–1B long range cure counsel shall not excuse such witness formation related to this Investigation. The strategic bomber, F–14 Tomcat jet from complying with a subpoena or deposi- Chairman and the ranking minority member, fighter, the A–10 Warthog tank killer tion notice. acting jointly, or the Committee shall deter- jet fighter, the F–15 Eagle jet fighter, E. Full Committee depositions: Depositions mine whether information obtained during the T–33 Thunderbird, and Apache and may be taken prior to or after a hearing as this Investigation shall be considered secret provided in this section. Blackhawk helicopters. or confidential under Rule 29.5 of the Stand- The Louisville Courier Journal re- (1) Notices for the taking of depositions ing Rules of the Senate and not released to shall be authorized and issued by the chair- any person or entity other than Committee ported that the F–117 stealth fighter man, with the approval of the ranking mi- Members, staff or consultants. was a crowd pleaser, along with the nority member of the Committee, provided G. Federal, State, and Local Authorities: 1. Army’s impressive helicopter assault that the chairman may initiate depositions Referral: When it is determined by the chair- demonstration on the two floating without the approval of the ranking minor- man and ranking minority member, or by a ity member where the chairman or a staff of- bridges in the middle of the Ohio River. majority of the Committee, that there is rea- And after the 123d’s C–130H demonstra- ficer designated by him has not received no- sonable cause to believe that a violation of tification from the ranking minority mem- law may have occurred, the chairman and tion, I can assure my colleagues the ber or a staff officer designated by him of ranking minority member by letter, or the Pentagon doesn’t stand a chance of disapproval of the deposition within 72 Committee by resolution, are authorized to taking them out of Kentucky. hours, excluding Saturdays and Sundays, of report such violation to the proper Federal, I want to commend the city of Louis- being notified of the deposition notice. If a State, and/or local authorities. Such letter ville, the Derby Festival, the U.S. Air deposition notice is disapproved by the rank- or report may recite the basis for the deter- Force, and Kentucky’s 123d for putting ing minority member as provided in this sub- mination of reasonable cause. This rule is section, the deposition notice may be au- on such an incredible show. Not only not authority for release of documents or were the performances simply spec- thorized by a vote of the members of the testimony. Committee. Committee deposition notices 2. Coordination: The Chairman is encour- tacular, but despite the magnitude of shall specify a time and place for examina- aged to seek the cooperation and coordina- the crowd, I found the event to be man- tion, and the name of the Committee mem- tion of appropriate federal, state, and local aged with few glitches. ber(s) or Committee staff member(s) or con- authorities, including law enforcement au- This was truly a day for family. And sultant(s) who will take the deposition. Un- thorities in the conduct of this Investiga- from parking to crowd control, city, less otherwise specified, the deposition shall tion. Air Force, and National Guard officials be in private. The Committee shall not initi- H. Conflict of Rules: To the extent there is did everything possible to make sure ate procedures leading to criminal or civil conflict between the Rules of Procedure con- enforcement proceedings for a witness’ fail- tained herein and the Rules of Procedure of Kentucky families could enjoy them- ure to appear or produce unless the deposi- the Committee, the Rules of Procedure con- selves safely and without hassles. tion notice was accompanied by a Commit- tained herein apply, as it relates to the con- Mr. President, let me close by con- tee subpoena. duct of this Investigation authorized herein. gratulating the Air Force for their 50th S3416 CONGRESSIONAL RECORD — SENATE April 22, 1997 anniversary. Their service to this coun- trying to escape to America. Com- permission, I would like to take some time try is immeasureable as is our grati- munist authorities imprisoned him for to testify through my own experience about tude to all our Air Force service men 5 years in a Romanian labor camp. the positive side and the benefits of the legal and women. A big thanks also goes to After 15 more years of wait, he finally immigration in the United States. I would like your permission to use some parts of my all those involved with Saturday’s made it to America, drove a cab, swept life story to better understand why the lib- event. I look forward to going back floors, and saved his money to buy a erty and freedom from this country can next year and seeing the festival offi- factory, which today is the country’s change some lives forever and bring many cials, the city, the armed services, and largest producer of replicas of the Stat- benefits to this country. the National Guard try and top this ue of Liberty. I was born in Bucharest, Romania in 1939, year’s sensational performance. Finally, we heard from John Tu, during the beginning of World War II in Eu- f president of Fountain Valley, CA-based rope. That war changed for a long time the Kingston Technology, a leading manu- lives of people from many countries. After FAMILY IMMIGRATION, SMALL facturer of computer memory products the war ended in 1945, when the paranoia communists came to power in many coun- BUSINESS, AND ENTREPRENEUR- for personal computers. Mr. Tu, born in SHIP IN AMERICA tries, many people left their home countries, China, immigrated to America after but many could not. One of those people was Mr. ABRAHAM. Mr. President, over being sponsored by his sister. He and my own father. When I grew older, I grew up the past 30 years, family immigration fellow immigrant David Sun employ with that missing spirit of liberty and free- has contributed to a virtual renais- over 500 people and built the company, dom. I spent time together with my father sance of small business culture in the started as a family based business oper- night after night and year after year enjoy- United States, according to Prof. Jimy ating out of a garage, into a company ing the only liberty. For 30 minutes each M. Sanders of the University of South they sold last year for $1 billion. Both night, we got together in the house with the lights turned off and listening to our only Carolina, a witness at a recent hearing Mr. Tu and Mr. Sun took the $1 billion hope, two radio stations, Voice of America of the Senate Immigration Subcommit- in profits from the sale of the company and Free Europe. This was the only freedom tee. His examination of census data and gave $100 million to their employ- we could afford. and field research shows that the fam- ees, most of them native born, result- When I was 18, I took my way to liberty, ily is an institution that embodies an ing in bonuses ranging from $100,000 to hoping to reach my dream. I decided to leave important form of social capital that $300,000 per employee. ‘‘Only in Amer- the country in order to come to America. In immigrants draw on and that the com- ica,’’ Mr. Tu testified, ‘‘could this hap- the summer of 1958, I decided to cross the mon self-interests of family members pen.’’ border to swim over the Danube River on the provide financial and labor resources Gary MacDonald, a native born em- night. I hid myself in the corn fields for crucial to establishing successful en- ployee of Kingston Technology, point- many hours near the river, waiting for the night. When I felt the cold metal of the terprises. edly noted in his testimony that four guard’s gun pointing on my head, on that At the hearing we heard testimony of the five high-growth companies that moment, my way to freedom and liberty was from four immigrant entrepreneurs he has worked for in his career were closed. I was arrested, then sent to a prison who were sponsored by family members started by immigrant entrepreneurs. labor camp for the next 5 years. What was and whose life experiences supported Overall, immigrants are approxi- my crime? I wanted to be free, to have lib- Professor Sanders’ findings: mately 10 to 20 percent more likely erty and to reach America. Five years of Ilija Letica, an immigrant born in than the native born to start a new starvation, physical punishment, long hours the former Yugoslavia, started Letica business in this country, and more of labor in hot and cold weather, sleeping on the floor, eating the roots of the plants and Corp. as a family business, and still than 1 in 10 legal immigrants own their digging for growing seeds in the soil and employs several family members. own businesses. In addition, in 1995, 12 being punished for trying to learn a foreign Today, the manufacturer of plastic and percent of the Inc. 500—a compilation language. Nothing of this changed my deter- paper packaging products of the fastest growing corporations in mination of trying to come to America. headquartered in Rochester, MI, em- America—were companies started by After two decades, I came to America with a ploys 1,800 people in 10 other States as immigrants. It is important to have a visa. When I came to the United States, I well—Delaware, Oklahoma, Iowa, Ala- discussion about both what is right and was penniless, but this country gave me bama, Nevada, Indiana, Pennsylvania, wrong with different aspects of U.S. hope. Oregon, Tennessee, and Georgia. His immigration policy. But any balanced My first job in 1978 was working in a cast- ing factory, making $3.00 an hour. In the daughter Mara Letica testified that her debate on legal immigration must take night, which was my second job, I drove a father witnessed the effects of com- into account the economic and social taxi in New York City. I also had a third job, munism: No food, no freedom, no op- contributions made by the 1 in 10 legal which I worked during the weekends for over portunity, and ultimately immigrated immigrants who own small and large 3 years. I got married and had two children. to America so he could fulfill his entre- businesses in this country. After 9 months working for a company, I was preneurial dreams. I ask unanimous consent that Mr. laid off. After 1 week of unemployment, I Adrian Gaspar, born in Portugal, em- Colea’s testimony be printed in the opened a partnership company, Barrett- Colea. ploys more than 20 people in Massachu- RECORD. setts at his firm Adrian A. Gaspar and There being no objection, the testi- In 1982, my company won a contract from AT&T for an Olympic project to make 65,000 Co., LLP. His company provides tax mony was ordered to be printed in the replicas for the Olympic commemorative in services to 400 small companies and RECORD, as follows: Los Angeles, the largest sculpture reproduc- over 1,400 individuals. He is proud that TESTIMONY OF OVIDIU COLEA, PRESIDENT, tion ever produced in the United States of his office sits in the same building COLBAR ART INCORPORATED—BEFORE THE America. The company created many jobs where his mother sewed clothes in the SUBCOMMITTEE ON IMMIGRATION, COMMITTEE for this project. In 1985, my company applied hope that she could make a better fu- ON THE JUDICIARY, U.S. SENATE—APRIL 15, for and won a license from the Statue of Lib- ture for her son. 1997 erty-Ellis Island Foundation. We gained the Perhaps the most inspiring testi- Good morning Senator ABRAHAM and sub- right to use the symbol of the Statue of Lib- erty on our product. The replicas of my com- mony came from Ovidiu Colea, founder committee members, good morning ladies and gentlemen. My name is Ovidiu Colea, I pany’s product, which are made only in the of Colbar Art, Inc., which manufac- am the founder and the president of Colbar United States, were presented to President tures sculptures and art reproductions Art Inc., manufacturer of sculptures and art Reagan, who sent us a beautiful letter of rec- in New York. He dreamed of seeing the reproductions, located on Long Island City, ognition of our effort on May 12, 1986. Statue of Liberty with his own eyes, in New York State. It is a great pleasure and Many jobs were created and through their when an armed guard captured him honor for me to be invited here. With your hard work, the company was able to par- April 22, 1997 CONGRESSIONAL RECORD — SENATE S3417 ticipate on the national effort to restore the across the country who are volunteer- ject to the various restrictions, in light Statue of Liberty, our Nation’s most pre- ing in their communities and helping of the difficult circumstances under cious symbol of liberty and freedom. Our rep- to improve the lives of others in their which they arrive on our shores. I sup- licas are used by the INS and other institu- neighborhoods through the TuftServe port these proposals, although I regret tions around the United States of America. The company made a new advancement in Program. Last year, Tufts alumni con- that enactment of the welfare repeal the art field, developing new reproduction tributed more than 218,000 volunteer law has made this new legislation nec- methods using acrylic. This technology is hours. essary. only available in the United States, which Tufts deserves great credit for its I am pleased to join with colleagues gave our country the advantage in the art leadership among the Nation’s univer- of both parties in introducing legisla- field. In 1986, I applied for and obtained a sities in emphasizing service learning tion to continue SSI and food stamp patent on a new technique of embodiment for and providing opportunities for stu- benefits to those legal immigrants al- acrylic sculptures. In 1988, my new company, dents to combine community service ready receiving them and to perma- Colbar Art Inc., consisted of 5 employees de- with their academic curriculum. Pro- veloped new technique and reproduction nently exempt refugees and asylees grams like TuftServe are the types of methods. from the eligibility restrictions. This In 1989, my new company, Colbar Art Inc., service initiatives that will be high- is a good first step in addressing the began a project with the Buddhist Associa- lighted at the President’s Summit for immediate and pressing needs of these tion of America in Carmel, NY, a project to America’s Future, beginning next Sun- immigrants, and I urge our fellow Sen- build the biggest statue of the Buddha in the day, April 27. The summit will reaffirm ators to join us in this effort. It rep- United States of America, which will stand our national commitment to commu- resents the beginning of a bipartisan 37 feet high. This project created new jobs nity service. Every American should discussion on how to address this issue, for the company, the largest of its type in have the opportunity to participate in and I commend the legislation to the the United States. The project took 3 years projects that help others and improve to complete. At present through my com- Senate. pany s efforts, the jobs created over the time their community. increased year after year. At the present I congratulate Tufts for giving their f time, the company employs more than 30 students that opportunity. I am hon- people, among them, many are immigrants. ored to take this opportunity to com- MESSAGES FROM THE PRESIDENT At present, my company is the largest mend Tufts’ President, John DiBiaggio, RECEIVED DURING ADJOURNMENT manufacturer of Statue of Liberty replicas and the many others in the Tufts com- Under the authority of the order of in the United States and a large number of munity for their impressive accom- my employees are working to preserve the the Senate of January 7, 1997, the Sec- plishments in enhancing education and retary of the Senate on April 18, 1997, beauty of our symbol of freedom. At the service. same time, the company is manufacturing received a message from the President the best high quality limited edition repro- f of the United States submitting a with- duction of acrylic sculptures, which are drawal and a nomination which was re- made only in our company. LEGISLATION TO RESTORE ELIGI- BILITY OF LEGAL IMMIGRANTS ferred to the Select Committee on In- A new challenge faces American companies telligence. and the challenge comes from the emerging FOR SSI AND FOOD STAMPS The nomination received on April 18, economic power with low labor costs. In Mr. MOYNIHAN. Mr. President, last 1997, is shown in today’s RECORD at the order to be more competitive in this market, year, the President and Congress en- American companies must find people to em- end of the Senate proceedings. acted welfare legislation which I said ploy on a priority basis which mean Amer- ican companies must be able to employ the was welfare repeal, not welfare reform. f right person at the right time. Any delay At that time, researchers at the Urban could greatly affect the success or failure of Institute estimated 2.6 million people MESSAGES FROM THE PRESIDENT the company. Despite the low labor costs on would fall below the poverty line be- other countries, I chose to keep the jobs in cause of the legislation, 1.1 million of Messages from the President of the my country, America, giving back something them children. The same researchers United States were communicated to that she gave to me. I thank my country for projected that 3.5 million children the Senate by Mr. Williams, one of his the opportunity that was given to me. Amer- would be dropped from the rolls in 2001 secretaries. ican companies must do everything possible to make jobs available primarily for our peo- because of the time limits contained in f ple first. the legislation. Mr. Chairman and subcommittee members, During the debate last year, there EXECUTIVE MESSAGES REFERRED I thank you very much for your time and I was little attention given to the provi- hope my experience will be seen as a positive sions concerning the eligibility of legal As in executive session the Presiding contribution of one immigrant who loves immigrants for benefits. These immi- Officer laid before the Senate messages this country. grants have come to America legally. from the President of the United f They pay taxes and serve in our mili- States submitting a nomination which tary. Yet the new law eliminates the was referred to the Committee on En- 13TH ANNUAL TUFTONIA’S WEEK eligibility of these immigrants—should ergy and Natural Resources. CELEBRATION AT TUFTS UNI- misfortune strike them—for SSI and (The nomination received today is VERSITY food stamps, and it severely limits printed at the end of the Senate pro- Mr. KENNEDY. Mr. President, this their eligibility for TANF and Medic- ceedings.) week marks the 13th annual observ- aid. Many legal immigrants affected by f ance of Tuftonia’s Week by Tufts Uni- these restrictions are elderly. In my versity in Medford, MA, in which many own State of New York, they might be Tufts alumni from around the world re- frail disabled survivors of the Holo- MESSAGES FROM THE HOUSE turn to honor their outstanding univer- caust, or refugees from the former So- RECEIVED DURING ADJOURNMENT sity. This celebration has special viet Union who are about to lose their Under the authority of the order of meaning for me. My daughter, Kara, is only means of support. This situation the Senate of January 7, 1997, the Sec- a graduate of Tufts, and I’ve worked has come to our attention now because retary of the Senate, on April 18, 1997, closely with many scholars at Tufts for it is among the first parts of the bill to during the adjournment of the Senate, many years on a wide variety of public be implemented. received a message from the House of policy issues. I am proud to count my- The President has proposed restoring Representatives announcing that the self as a member of the Tufts family. eligibility for SSI to those legal immi- Speaker has signed the following en- For the second year in a row, the grants who become disabled after en- rolled bill: theme of Tuftonia’s Week is commu- tering this country. He has also pro- H.R. 1003. An act to clarify Federal law nity service. Participants will honor posed permitting refugees and asylees with respect to restricting the use of Federal the large number of Tufts graduates additional time before becoming sub- funds in support of assisted suicide. S3418 CONGRESSIONAL RECORD — SENATE April 22, 1997 Under the authority of the order of pursuant to law, a report on enhanced-use suant to law, the report on the Arts and Ar- the Senate of January 7, 1997, the en- leasing; to the Committee on Veterans’ Af- tifacts Indemnity Program for fiscal year rolled bill was signed on April 21, 1997, fairs. 1996; to the Committee on Labor and Human EC–1604. A communication from the Direc- during the adjournment of the Senate Resources. tor of the Office of Regulations Management, EC–1616. A communication from the Direc- by the President pro tempore [Mr. Office of the General Counsel, Department of tor of the Office of Communication and Leg- THURMOND]. Veterans Affairs, transmitting, pursuant to islative Affairs, U.S. Equal Employment Op- f law, a rule entitled ‘‘Veterans’ Education’’ portunity Commission, transmitting, pursu- (RIN2900–AI55) received on March 26, 1997; to ant to law, a rule entitled ‘‘Procedures for EXECUTIVE AND OTHER the Committee on Veterans’ Affairs. Previously Exempt State and Local Govern- COMMUNICATIONS EC–1605. A communication from the Direc- ment Employee Complaints’’ (RIN3046–AA45) The following communications were tor of the Office of Regulations Management, received on April 8, 1997; to the Committee laid before the Senate, together with Office of the General Counsel, Department of on Labor and Human Resources. accompanying papers, reports, and doc- Veterans Affairs, transmitting, pursuant to EC–1617. A communication from the Dep- law, a rule entitled ‘‘Upgraded Discharges’’ uments, which were referred as indi- uty Executive Director and Chief Operating (RIN2900–AI40) received on March 25, 1997; to Officer of the Pension Benefit Guaranty Cor- cated: the Committee on Veterans’ Affairs. poration, transmitting, pursuant to law, a EC–1592. A communication from the Direc- EC–1606. A communication from the Direc- rule entitled ‘‘Allocation of Assets’’ received tor of the Office of Management and Budget, tor of the Office of Regulations Management, on April 9, 1997; to the Committee on Labor Executive Office of the President, transmit- Office of the General Counsel, Department of and Human Resources. ting, pursuant to law, a report entitled Veterans Affairs, transmitting, pursuant to EC–1618. A communication from the Acting ‘‘Agency Compliance with the Unfunded law, a rule entitled ‘‘Vocational Rehabilita- Secretary of Labor (Chairman of the Board) Mandates Reform Act of 1995’’; to the Com- tion’’ (RIN2900–AI29) received on April 7, and the Acting Executive Director of the mittee on Governmental Affairs. 1997; to the Committee on Veterans’ Affairs. Pension Benefit Guaranty Corporation, EC–1593. A communication from the Acting EC–1607. A communication from the Direc- transmitting, pursuant to law, the annual re- Director of the Office of Surface Mining, tor of the Office of Regulations Management, port for fiscal year 1996; to the Committee on Reclamation and Enforcement, Department Office of the General Counsel, Department of Labor and Human Resources. of the Interior, transmitting, pursuant to Veterans Affairs, transmitting, pursuant to f law, a rule entitled ‘‘Navajo Reclamation law, a rule entitled ‘‘Reduction of Debt’’ Plan’’ (NA-003-FOR) received on April 9, 1997; (RIN2900–AF29) received on April 1, 1997; to PETITIONS AND MEMORIALS to the Committee on Energy and Natural Re- the Committee on Veterans’ Affairs. sources. EC–1608. A communication from the Direc- The following petitions and memori- EC–1594. A communication from the Acting tor of the Office of Regulations Management, als were laid before the Senate and General Counsel of the Department of En- Office of the General Counsel, Department of were referred or ordered to lie on the ergy, transmitting, a draft of the proposed Veterans Affairs, transmitting, pursuant to table as indicated: legislation entitled ‘‘The Powerplant and In- law, a rule entitled ‘‘Medical; Nonsub- POM–50. A resolution adopted by the Sen- dustrial Fuel Use Repeal Act’’; to the Com- stantive Miscellaneous Changes’’ (RIN2900– ate of the Legislature of the State of Geor- mittee on Energy and Natural Resources. AI37) received on April 7, 1997; to the Com- gia; to the Committee on the Judiciary. EC–1595. A communication from the Chair mittee on Veterans’ Affairs. of the Federal Energy Regulatory Commis- EC–1609. A communication from the Direc- RESOLUTION sion, transmitting, pursuant to law, a rule tor of the Office of Regulations Management, Whereas, the State of Georgia and other received on April 7, 1997; to the Committee Office of the General Counsel, Department of states have a constitutional provision that on Energy and Natural Resources. Veterans Affairs, transmitting, pursuant to prohibits its legislative body from creating a EC–1596. A communication from the Sec- law, a rule entitled ‘‘Retroactive Payments’’ budget deficit in its appropriations process; retary of Defense, transmitting, pursuant to (RIN2900–AI57) received on April 14, 1997; to and law, a report on the program plan for the the Committee on Veterans’ Affairs. Whereas, the State of Georgia has various Russian Reactor Core Conversion Program; EC–1610. A communication from the Direc- constitutional and statutory constraints rel- to the Committee on Armed Services. tor of the Office of Regulations Management, ative to debt financing which require the EC–1597. A communication from the Assist- Office of the General Counsel, Department of state to maintain a very tight credit strat- ant Secretary of Defense (Command, Con- Veterans Affairs, transmitting, pursuant to egy; and trol, Communications, and Intelligence), law, a rule entitled ‘‘Removal of Certain Whereas, the economic welfare of the Unit- transmitting, pursuant to law, a report rel- Limitations’’ (RIN2900–AI61) received on ed States and its citizens depends on a stable ative to the Department’s automated infor- April 14, 1997; to the Committee on Veterans’ dollar and a sound economy; and mation systems; to the Committee on Armed Affairs. Whereas, the federal budget deficit has had Services. EC–1611. A communication from the Assist- a deleterious impact on the nation’s finan- EC–1598. A communication from the Gen- ant Secretary of Labor for Pension and Wel- cial health and has impeded severely invest- eral Counsel of the Department of Defense, fare Benefits, transmitting, pursuant to law, ment productivity and growth; and transmitting, a draft of proposed legislation two rules including a rule entitled ‘‘Health Whereas, the Georgia General Assembly of revisions to the appointment of Members Insurance Portability’’ (RIN1210–OO54, AA55) has supported an amendment requiring a bal- to the National Ocean Research Leadership received on April 14, 1997; to the Committee anced federal budget for many years, having Council; to the Committee on Armed Serv- on Labor and Human Resources. specifically applied to the United States ices. EC–1612. A communication from the Acting Congress to call a convention for the purpose EC–1599. A communication from the Direc- Administrator of the Public Health Service, of proposing such an amendment in 1976: tor of the Office of the Secretary of Defense, Department of Health and Human Services, Now, therefore, be it transmitting, pursuant to law, a rule enti- transmitting, pursuant to law, a rule enti- Resolved by the Senate That the members of tled ‘‘Pilot Program Policy’’ received on tled ‘‘Health Services Research’’ (RIN0919– this body urge the United States Senate and April 10, 1997; to the Committee on Armed AA00) received on March 25, 1997; to the Com- the United States House of Representatives Services. mittee on Labor and Human Resources. to adopt the balanced budget amendment; be EC–1600. A communication from the Direc- EC–1613. A communication from the Direc- it further tor of the Office of the Secretary of Defense, tor of Regulations Policy, Management Resolved That the Secretary of the Senate transmitting, pursuant to law, a rule enti- Staff, Office of Policy, Food and Drug Ad- is authorized and directed to transmit an ap- tled ‘‘Military Recruiting’’ received on April ministration, Department of Health and propriate copy of this resolution to the Sec- 10, 1997; to the Committee on Armed Serv- Human Services, transmitting, pursuant to retary of the Senate of the United States ices. law, five rules including a rule entitled Congress, the Clerk of the House of Rep- EC–1601. A communication from the Assist- ‘‘Medical Devices’’ (RIN0919–AA09, AA19, resentatives of the United States Congress, ant Secretary of the Interior for Land and AA53, AA29); to the Committee on Labor and and to each member of the Georgia congres- Minerals Management, transmitting, a draft Human Resources. sional delegation. of proposed legislation entitled ‘‘The Arizona EC–1614. A communication from the Direc- Bureau of Land Management Wild and Sce- tor of the National Science Foundation, POM–51. Petitions from citizens of the nic Rivers Act of 1997’’; to the Committee on transmitting, a draft of proposed legislation United States relative to the Personal Re- Energy and Natural Resources. entitled ‘‘The National Science Foundation sponsibility Act of 1996; to the Committee on EC–1602. A communication from the Sec- Authorization for fiscal years 1998 and 1999’’; Finance. retary of Veterans Affairs, transmitting, to the Committee on Labor and Human Re- pursuant to law, a report on equitable relief sources. f for calendar year 1996; to the Committee on EC–1615. A communication from the Chair- REPORTS OF COMMITTEE Veterans’ Affairs. man of the National Endowment for the Arts EC–1603. A communication from the Sec- and Member of the Federal Council on the The following report of committee retary of Veterans Affairs, transmitting, Arts and the Humanities, transmitting, pur- was submitted: April 22, 1997 CONGRESSIONAL RECORD — SENATE S3419 By Mr. CHAFEE, from the Committee on S. 628. A bill to designate the United ulation which unfairly burdens a few Environment and Public Works: States courthouse to be constructed at the utility holding companies. It would Special Report entitled ‘‘Activities of the corner of 7th Street and East Jackson Street allow holding companies to improve Committee on Environment and Public in Brownsville, Texas, as the ‘‘Reynaldo G. service and possibly lower the costs of Works for the One Hundred and Fourth Con- Garza United States Courthouse’’; to the gress’’ (Rept. No. 105–13). Committee on Environment and Public consumers’ utility bills. The bill would enhance existing regulatory tools and f Works. By Mr. BREAUX (by request): provide State and Federal regulators INTRODUCTION OF BILLS AND S. 629. A bill entitled the ‘‘OECD Ship- new authority to ensure that they can JOINT RESOLUTIONS building Agreement Act’’; to the Committee protect energy consumers from unfair on Commerce, Science, and Transportation. The following bills and joint resolu- rate increases. By Mr. BYRD: PUHCA was originally enacted more tions were introduced, read the first S. 630. A bill to amend the Internal Reve- and second time by unanimous con- nue Code of 1986 to deposit in the Highway than six decades ago to regulate public sent, and referred as indicated: Trust Fund the receipts of the 4.3-cent in- utility holding companies. At that crease in the fuel tax rates enacted by the time, this Federal statute was needed By Mr. D’AMATO (for himself, Mr. Omnibus Budget Reconciliation Act of 1993; to fill the regulatory gap that enabled MURKOWSKI, Mr. DODD, Mr. SAR- to the Committee on Finance. BANES, Mr. GRAMM, Mr. SHELBY, Mr. holding companies to conceal assets by f MACK, Mr. FAIRCLOTH, Mr. ALLARD, creating and speculating in public util- Mr. LOTT, Mr. DOMENICI, Mr. AKAKA, SUBMISSION OF CONCURRENT AND ity companies. Mr. INOUYE, Mr. COATS, Mr. COCHRAN, SENATE RESOLUTIONS Mr. President, PUHCA has achieved Mr. ROBERTS, Mr. BROWNBACK, Mr. the congressional purpose—it broke up COVERDELL, Mr. SPECTER, and Mr. The following concurrent resolutions the mammoth holding company struc- NICKLES): and Senate resolutions were read, and tures that existed more than half a S. 621. A bill to repeal the Public Utility referred (or acted upon), as indicated: century ago. PUHCA is not only out- Holding Company Act of 1935, to enact the By Mr. THURMOND: dated, it is the relic of a different era. Public Utility Holding Company Act of 1997, S. Res. 76. A resolution proclaiming a na- and for other purposes; to the Committee on tionwide moment of remembrance, to be ob- Today there is strong regulation of the Banking, Housing, and Urban Affairs. served on Memorial Day, May 26, 1997, in energy industry at the State and Fed- By Mr. HATCH (for himself, Mr. order to appropriately honor American patri- eral level. In addition, the Federal se- CONRAD, Mr. COCHRAN, Mr. GREGG, ots lost in the pursuit of peace and liberty curities laws’ registration and disclo- Ms. MOSELEY-BRAUN, Mr. ENZI, Mr. around the world; to the Committee on the sure requirements have become effec- INOUYE, Mr. BAUCUS, Mr. REID, Mr. Judiciary. tive tools for the SEC to protect inves- D’AMATO, Mr. KYL, Mr. ASHCROFT, By Mr. LOTT (for himself and Mr. tors and ensure the integrity of the Mr. DOMENICI, Mr. HAGEL, Mr. BOND, DASCHLE): market for public utility holding com- Mr. THOMAS, Mr. MURKOWSKI, and Mr. S. Res. 77. A resolution to authorize rep- NICKLES): resentation by the Senate Legal Counsel; pany securities. S. 622. A bill to amend the Internal Reve- considered and agreed to. Originally enacted to protect con- nue Code of 1986 to modify the application of f sumers and investors, PUHCA has be- the pension nondiscrimination rules to gov- come an unnecessary impediment to ef- ernmental plans; to the Committee on Fi- STATEMENTS ON INTRODUCED ficient and flexible business operations. nance. BILLS AND JOINT RESOLUTIONS Currently, there are 180 public utility By Mr. INOUYE (for himself and Mr. By Mr. D’AMATO (for himself, holding companies in the United AKAKA): States. Of these 180 companies, 165 are S. 623. A bill to amend title 38, United Mr. MURKOWSKI, Mr. DODD, Mr. States Code, to deem certain service in the SARBANES, Mr. GRAMM, Mr. exempt from PUHCA and only 15 com- organized military forces of the Government SHELBY, Mr. MACK, Mr. panies are subject to direct SEC regu- of the Commonwealth of the Philippines and FAIRCLOTH, Mr. ALLARD, Mr. lation. As a result, PUHCA imposes a the Philippine Scouts to have been active LOTT, Mr. DOMENICI, Mr. burdensome regulatory scheme on service for purposes of benefits under pro- AKAKA, Mr. INOUYE, Mr. COATS, these 15 registered holding companies grams administered by the Secretary of Vet- Mr. COCHRAN, Mr. ROBERTS, Mr. and prevents them from diversifying erans Affairs; to the Committee on Veterans’ BROWNBACK, Mr. COVERDELL, into new business areas. PUHCA keeps Affairs. these holding companies from diversi- By Mr. BUMPERS: Mr. SPECTER, and Mr. NICKLES): S. 624. A bill to establish a competitive S. 621. A bill to repeal the Public fying, limits their growth opportuni- process for the awarding of concession con- Utility Holding Company Act of 1935, ties and options, and requires the com- tracts in units of the National Park System, to enact the Public Utility Holding panies to apply for SEC permission to and for other purposes; to the Committee on Company Act of 1997, and for other pur- engage in almost all new business ac- Energy and Natural Resources. poses; to the Committee on Banking, tivities. By Mr. MCCONNELL (for himself, Mr. Housing, and Urban Affairs. PUHCA also hinders the growth of MOYNIHAN, Mr. LIEBERMAN, Mr. GOR- THE PUBLIC UTILITY HOLDING COMPANY ACT OF nonregistered, exempt holding compa- TON, and Mr. GRAMS): 1997 nies. Once exempt companies expand S. 625. A bill to provide for competition be- their business across State lines they tween forms of motor vehicle insurance, to Mr. D’AMATO. Mr. President, today I permit an owner of a motor vehicle to choose introduce the Public Utility Holding too become subject to PUHCA’s restric- the most appropriate form on insurance for Company Act of 1997. This legislation tions. As a result, exempt companies that person, to guarantee affordable pre- is substantively identical to S. 1317 refrain from expanding across State miums, to provide for more adequate and which the Senate Banking Committee lines even when such a move would timely compensation for accident victims, reported in the 104th Congress. The bill lead to cheaper and more efficiently and for other purposes; to the Committee on would repeal the Public Utility Holding produced energy for consumers. Simi- Commerce, Science, and Transportation. Company Act of 1935, [PUHCA] and larly, PUHCA prevents non-utility By Mr. KENNEDY: holding companies from diversifying S. 626. A bill to amend the Fair Labor would transfer residual regulatory au- Standards Act of 1938 to provide for legal ac- thority from the Securities and Ex- into utility business. countability for sweatshop conditions in the change Commission to the Federal En- Mr. President, PUHCA is more than garment industry, and for other purposes; to ergy Regulatory Commission and State just another example of Government the Committee on Labor and Human Re- public service commissions. overregulation—it is an impediment to sources. Mr. President, this bill is introduced both the deregulation of the energy in- By Mr. JEFFORDS (for himself, Mr. with the bipartisan cosponsorship of dustry and to the growth and diver- MURKOWSKI, Mr. CHAFEE, Mr. COCH- Senators MURKOWSKI, DODD, SARBANES, sification of existing businesses. Since RAN, Mr. LEAHY, and Mr. GRAMM, SHELBY, MACK, FAIRCLOTH, AL- many States have begun to deregulate WELLSTONE): the energy industry and Congress plans S. 627. A bill to reauthorize the African LARD, LOTT, DOMENICI, AKAKA, INOUYE, Elephant Conservation Act; to the Commit- COATS, COCHRAN, ROBERTS, BROWNBACK, to review energy reform issues, the tee on Environmental and Public Works. COVERDELL, and SPECTER. time for PUHCA reform is now. This By Mr. GRAMM (for himself and Mrs. Mr. President, this legislation would year, in my own backyard, Long Is- HUTCHISON): eliminate duplicative, unnecessary reg- land, two utility companies will merge. S3420 CONGRESSIONAL RECORD — SENATE April 22, 1997 This merger is expected to reduce en- mission’s authority to allocate costs (4) limited Federal regulation is necessary ergy bills for Long Island energy cus- when setting rates. The bill also gives to supplement the work of State commis- tomers who currently pay the highest state commissions vital enforcement sions for the continued rate protection of rates for energy in the continental U.S. backup to ensure that they can access electric and gas utility customers. (b) PURPOSES.—The purposes of this Act The merger will not only lead to lower all the books and records necessary to are— rates, but it should also mean better make rate determinations. (1) to eliminate unnecessary regulation, service for customers. Mr. President, the goal of PUHCA re- yet continue to provide for consumer protec- While Long Island’s energy cus- form is increased competition—to tion by facilitating existing rate regulatory tomers can finally look forward to make sure consumers ultimately pay authority through improved Federal and lower rates, PUHCA prevents other lower utility rates not higher ones. State commission access to books and utility companies from expanding, While some would prefer to address records of all companies in a holding com- merging, and offering new services to PUHCA reform in the larger context of pany system, to the extent that such infor- consumers. Like any other utility comprehensive energy deregulation, mation is relevant to rates paid by utility customers, while affording companies the merger, the State, the FERC and other there is no reason to delay consider- flexibility required to compete in the energy Federal regulators will have to approve ation of this separate bill I introduce markets; and this merger. Under PUHCA, if either of today. Rather than package PUHCA (2) to address protection of electric and gas these companies was a registered hold- with comprehensive reform of the fed- utility customers by providing for Federal ing company or the merger involved eral energy laws, PUHCA reform can and State access to books and records of all companies from neighboring States, proceed, on a stand alone basis, as it companies in a holding company system that the companies would also have to seek does not affect the larger energy issues are relevant to utility rates. SEC approval of the merger in advance which my knowledgeable colleagues on SEC. 3. DEFINITIONS. and at all subsequent stages of restruc- the Energy Committee are considering. For purposes of this Act— turing. For example, if this merger in- In fact, the experts in the energy (1) the term ‘‘affiliate’’ of a company means any company 5 percent or more of the cluded utility companies from New field, lead by the distinguished chair- outstanding voting securities of which are Jersey or Connecticut, PUHCA’s re- man and former ranking member of the owned, controlled, or held with power to strictions on diversification and bur- Energy Committee, Senators MURKOW- vote, directly or indirectly, by such com- densome requirements, could have pre- SKI and Johnston, who testified before pany; vented a merger that would benefit the Banking Committee on this issue (2) the term ‘‘associate company’’ of a consumers, investors, and business. last year, believe that PUHCA reform company means any company in the same As one of the leaders in energy de- should move independently of, and sep- holding company system with such company; regulation, New York State provides arate from, full energy deregulation. (3) the term ‘‘Commission’’ means the Fed- an example of why PUHCA reform is eral Energy Regulatory Commission; PUHCA reform is a necessary first step (4) the term ‘‘company’’ means a corpora- necessary now. Without PUHCA re- in creating an efficient energy indus- tion, partnership, association, joint stock form, companies will choose alter- try. company, business trust, or any organized native corporate structures to avoid Mr. President, I have been a pro- group of persons, whether incorporated or PUHCA’s restrictive requirements, pre- ponent of PUHCA reform for 16 years. not, or a receiver, trustee, or other liquidat- venting the efficient restructuring of Congress should allow consumers ac- ing agent of any of the foregoing; the energy industry. Congress must re- cess to the cheapest power and the best (5) the term ‘‘electric utility company’’ form PUHCA so that the energy indus- services by repealing this burdensome means any company that owns or operates try will be efficient and consumers can and unnecessary law. The American facilities used for the generation, trans- mission, or distribution of electric energy for realize the reduction in rates and im- people deserve and expect an efficient sale; provement in services they deserve. energy industry unfettered by unneces- (6) the terms ‘‘exempt wholesale genera- Mr. President, the bill I introduce sary regulation. The legislation I intro- tor’’ and ‘‘foreign utility company’’ have the today follows the SEC’s Division of In- duce today accomplishes this by re- same meanings as in sections 32 and 33, re- vestment Management’s 1995 rec- moving the energy industry from the spectively, of the Public Utility Holding ommendation to conditionally repeal 60-year-old regulatory shackles put in Company Act of 1935, as those sections ex- PUHCA since ‘‘the current regulatory place by PUHCA. I urge my colleagues isted on the day before the effective date of system imposes significant costs, in di- to support this legislation so that we this Act; rect administrative charges and fore- (7) the term ‘‘gas utility company’’ means may provide consumers with a highly any company that owns or operates facilities gone economies of scale and scope, that efficient energy market that has better used for distribution at retail (other than often cannot be justified in terms of consumer protections. the distribution only in enclosed portable benefits to utility investors.’’ The leg- Mr. President, I ask unanimous con- containers or distribution to tenants or em- islation has been crafted in consulta- sent that the full text of the bill be ployees of the company operating such fa- tion with State and Federal utility reg- printed in the RECORD. cilities for their own use and not for resale) ulators, public interest groups, the There being no objection, the bill was of natural or manufactured gas for heat, Senate Energy Committee, and both ordered to be printed in the RECORD, as light, or power; registered and non-registered utility follows: (8) the term ‘‘holding company’’ means— (A) any company that directly or indi- companies. S. 621 rectly owns, controls, or holds, with power to Mr. President, let me summarize the Be it enacted by the Senate and House of Rep- vote, 10 percent or more of the outstanding purpose of the bill. The Public Utility resentatives of the United States of America in voting securities of a public utility company Company Act of 1997 would maintain Congress assembled, or of a holding company of any public utility the provisions of the 1935 Act essential SECTION 1. SHORT TITLE. company; and to consumer protection. In fact, the This Act may be cited as the ‘‘Public Util- (B) any person, determined by the Commis- bill enhances consumer safeguards by ity Holding Company Act of 1997’’. sion, after notice and opportunity for hear- enabling energy regulators to oversee SEC. 2. FINDINGS AND PURPOSES. ing, to exercise directly or indirectly (either all holding company operations. Spe- (a) FINDINGS.—The Congress finds that— alone or pursuant to an arrangement or un- (1) the Public Utility Holding Company derstanding with one or more persons) such cifically, the bill makes it easier for Act of 1935 was intended to facilitate the a controlling influence over the management FERC and State public service com- work of Federal and State regulators by or policies of any public utility company or missions to protect consumers from placing certain constraints on the activities holding company as to make it necessary or paying nonutility related costs by giv- of holding company systems; appropriate for the rate protection of utility ing the regulators expanded authority (2) developments since 1935, including customers with respect to rates that such to review the books and records of all changes in other regulation and in the elec- person be subject to the obligations, duties, holding company activities to deter- tric and gas industries, have called into and liabilities imposed by this Act upon mine energy rates. At the same time, question the continued relevance of the holding companies; model of regulation established by that Act; (9) the term ‘‘holding company system’’ the bill would preserve FERC’s author- (3) there is a continuing need for limited means a holding company, together with its ity to review transactions, acquisi- Federal and State regulation in order to en- subsidiary companies; tions, and mergers of utilities and sure the rate protection of utility customers; (10) the term ‘‘jurisdictional rates’’ means would clarify the FERC and state com- and rates established by the Commission for the April 22, 1997 CONGRESSIONAL RECORD — SENATE S3421 transmission of electric energy in interstate another affiliate, as the Commission deems costs of an activity performed by an associ- commerce, the sale of electric energy at to be relevant to costs incurred by a public ate company, or any costs of goods or serv- wholesale in interstate commerce, the trans- utility or natural gas company that is an as- ices acquired by such public utility company portation of natural gas in interstate com- sociate company of such holding company from an associate company. merce, and the sale in interstate commerce and necessary or appropriate for the protec- SEC. 9. APPLICABILITY. of natural gas for resale for ultimate public tion of utility customers with respect to ju- No provision of this Act shall apply to, or consumption for domestic, commercial, in- risdictional rates. be deemed to include— dustrial, or any other use; (c) HOLDING COMPANY SYSTEMS.—The Com- (1) the United States; (11) the term ‘‘natural gas company’’ mission may examine the books, accounts, (2) a State or any political subdivision of a means a person engaged in the transpor- memoranda, and other records of any com- State; tation of natural gas in interstate commerce pany in a holding company system, or any (3) any foreign governmental authority not or the sale of such gas in interstate com- affiliate thereof, as the Commission deems operating in the United States; merce for resale; to be relevant to costs incurred by a public (4) any agency, authority, or instrumental- (12) the term ‘‘person’’ means an individual utility or natural gas company within such ity of any entity referred to in paragraph (1), or company; holding company system and necessary or (2), or (3); or (13) the term ‘‘public utility’’ means any appropriate for the protection of utility cus- (5) any officer, agent, or employee of any person who owns or operates facilities used tomers with respect to jurisdictional rates. entity referred to in paragraph (1), (2), or (3) for transmission of electric energy in inter- (d) CONFIDENTIALITY.—No member, officer, acting as such in the course of his or her offi- state commerce or sales of electric energy at or employee of the Commission shall divulge cial duty. any fact or information that may come to wholesale in interstate commerce; SEC. 10. EFFECT ON OTHER REGULATIONS. his or her knowledge during the course of ex- (14) the term ‘‘public utility company’’ Nothing in this Act precludes the Commis- amination of books, accounts, memoranda, means an electric utility company or a gas sion or a State commission from exercising or other records as provided in this section, utility company; its jurisdiction under otherwise applicable except as may be directed by the Commis- (15) the term ‘‘State commission’’ means law to protect utility customers. any commission, board, agency, or officer, by sion or by a court of competent jurisdiction. SEC. 11. ENFORCEMENT. whatever name designated, of a State, mu- SEC. 6. STATE ACCESS TO BOOKS AND RECORDS. The Commission shall have the same pow- nicipality, or other political subdivision of a (a) IN GENERAL.—Upon the written request ers as set forth in sections 306 through 317 of State that, under the laws of such State, has of a State commission having jurisdiction to the Federal Power Act (16 U.S.C. 825d–825p) jurisdiction to regulate public utility compa- regulate a public utility company in a hold- to enforce the provisions of this Act. nies; ing company system, and subject to such (16) the term ‘‘subsidiary company’’ of a terms and conditions as may be necessary SEC. 12. SAVINGS PROVISIONS. holding company means— and appropriate to safeguard against unwar- (a) IN GENERAL.—Nothing in this Act pro- (A) any company, 10 percent or more of the ranted disclosure to the public of any trade hibits a person from engaging in or continu- outstanding voting securities of which are secrets or sensitive commercial information, ing to engage in activities or transactions in directly or indirectly owned, controlled, or a holding company or its associate company which it is legally engaged or authorized to held with power to vote, by such holding or affiliate thereof, wherever located, shall engage on the effective date of this Act, if company; and produce for inspection books, accounts, that person continues to comply with the (B) any person, the management or policies memoranda, and other records that— terms of any such authorization, whether by of which the Commission, after notice and (1) have been identified in reasonable de- rule or by order. opportunity for hearing, determines to be tail in a proceeding before the State commis- (b) EFFECT ON OTHER COMMISSION AUTHOR- subject to a controlling influence, directly or sion; ITY.—Nothing in this Act limits the author- indirectly, by such holding company (either (2) the State commission deems are rel- ity of the Commission under the Federal alone or pursuant to an arrangement or un- evant to costs incurred by such public utility Power Act (16 U.S.C. 791a et seq.) (including derstanding with one or more other persons) company; and section 301 of that Act) or the Natural Gas so as to make it necessary for the rate pro- (3) are necessary for the effective discharge Act (15 U.S.C. 717 et seq.) (including section tection of utility customers with respect to of the responsibilities of the State commis- 8 of that Act). rates that such person be subject to the obli- sion with respect to such proceeding. SEC. 13. IMPLEMENTATION. gations, duties, and liabilities imposed by (b) EFFECT ON STATE LAW.—Nothing in this Not later than 18 months after the date of this Act upon subsidiary companies of hold- section shall preempt applicable State law enactment of this Act, the Commission ing companies; and concerning the provision of books, records, shall— (17) the term ‘‘voting security’’ means any or any other information, or in any way (1) promulgate such regulations as may be security presently entitling the owner or limit the rights of any State to obtain necessary or appropriate to implement this holder thereof to vote in the direction or books, records, or any other information Act; and management of the affairs of a company. under Federal law, contract, or otherwise. (2) submit to the Congress detailed rec- SEC. 4. REPEAL OF THE PUBLIC UTILITY HOLD- (c) COURT JURISDICTION.—Any United ommendations on technical and conforming ING COMPANY ACT OF 1935. States district court located in the State in amendments to Federal law necessary to The Public Utility Holding Company Act which the State commission referred to in carry out this Act and the amendments of 1935 (15 U.S.C. 79a et seq.) is repealed, ef- subsection (a) is located shall have jurisdic- made by this Act. fective 18 months after the date of enact- tion to enforce compliance with this section. SEC. 14. TRANSFER OF RESOURCES. ment of this Act. SEC. 7. EXEMPTION AUTHORITY. All books and records that relate primarily SEC. 5. FEDERAL ACCESS TO BOOKS AND (a) RULEMAKING.—Not later than 90 days to the functions transferred to the Commis- RECORDS. after the date of enactment of this Act, the sion under this Act shall be transferred from (a) IN GENERAL.—Each holding company Commission shall promulgate a final rule to the Securities and Exchange Commission to and each associate company thereof shall exempt from the requirements of section 5 the Commission. maintain, and shall make available to the any person that is a holding company, solely SEC. 15. EFFECTIVE DATE. Commission, such books, accounts, memo- with respect to one or more— This Act shall take effect 18 months after randa, and other records as the Commission (1) qualifying facilities under the Public the date of enactment of this Act. Utility Regulatory Policies Act of 1978; deems to be relevant to costs incurred by a SEC. 16. AUTHORIZATION OF APPROPRIATIONS. (2) exempt wholesale generators; or public utility or natural gas company that is There are authorized to be appropriated (3) foreign utility companies. an associate company of such holding com- such funds as may be necessary to carry out (b) OTHER AUTHORITY.—If, upon application pany and necessary or appropriate for the this Act. protection of utility customers with respect or upon its own motion, the Commission to jurisdictional rates for the transmission finds that the books, records, accounts, SEC. 17. CONFORMING AMENDMENT TO THE FED- ERAL POWER ACT. of electric energy in interstate commerce, memoranda, and other records of any person Section 318 of the Federal Power Act (16 the sale of electric energy at wholesale in are not relevant to the jurisdictional rates of U.S.C. 825q) is repealed. interstate commerce, the transportation of a public utility company, or if the Commis- natural gas in interstate commerce, and the sion finds that any class of transactions is Mr. MURKOWSKI. Mr. President, I sale in interstate commerce of natural gas not relevant to the jurisdictional rates of a rise to cosponsor the Public Utility for resale for ultimate public consumption public utility company, the Commission Holding Company Act of 1997. Enact- for domestic, commercial, industrial, or any shall exempt such person or transaction ment of this legislation is long over- from the requirements of section 5. other use. due. (b) AFFILIATE COMPANIES.—Each affiliate of SEC. 8. AFFILIATE TRANSACTIONS. Mr. President, the Public Utility a holding company or of any subsidiary com- Nothing in this Act shall preclude the pany of a holding company shall maintain, Commission or a State commission from ex- Holding Company Act was enacted in and make available to the Commission, such ercising its jurisdiction under otherwise ap- 1935 to curb serious abuses by utilities books, accounts, memoranda, and other plicable law to determine whether a public that hurt consumers. Back then it was records with respect to any transaction with utility company may recover in rates any needed, but since then much has S3422 CONGRESSIONAL RECORD — SENATE April 22, 1997 changed. As a result, PUHCA now does D’AMATO is of like mind. This is not me summarize the evolution of this more harm than good. the place to do this. Retain wheeling issue and why this bill is being intro- This legislation will eliminate unnec- and other utility competitive issues duced today. essary regulation. It will also stream- are not linked to the issues involved in Mr. President, the Federal Govern- line and make more effective the regu- PUHCA reform. Moreover, retail wheel- ment has long ago established a policy lation that is still needed. By doing so, ing and other Federal Power Act mat- of encouraging tax-deferred retirement it will promote competition in the ters are entirely within the jurisdic- savings. Most retirement plans that electric power industry without jeop- tion of the Committee on Energy and benefit employees are employer-spon- ardizing consumer protections. Natural Resources, not the Committee sored tax-deferred retirement plans. Over the past six decades, a com- on Banking, Housing and Urban Af- Over the years, Congress has required prehensive State-Federal regulatory fairs, to which this legislation will be that these plans meet strict non- system has been developed to protect referred. Electric utility issues are discrimination standards designed to consumers. In a nutshell, State public very complex, and they are very sig- ensure that they do not provide dis- utility commissions regulate trans- nificant not only to consumers but also proportionate benefits to business own- actions that are intrastate in nature, to this Nation’s competitiveness and ers, officers, or highly compensated in- and the Federal Energy Regulatory economic well-being. These kinds of dividuals relative to other employees. Commission regulates those that are changes cannot, and will not be made In response to the growing popularity interstate in nature. State commis- without careful and complete consider- of employer-sponsored tax-deferred sions perform their regulatory activi- ation by the Committee on Energy and pension plans, Congress passed the Em- ties pursuant to State law, and the Natural Resources of all aspects of the ployee Retirement Income Security FERC performs it pursuant to the Fed- issues and questions they raise. That is Act [ERISA] in 1974 to enhance the eral Power Act. why the Committee on Energy and rules governing pension plans. How- With the maturity of both State and Natural Resources is now in the proc- ever, during consideration of ERISA, Federal utility regulation, PUHCA is ess of reviewing the factors that affect Congress recognized that non- now at best superflouous, but in some the competitiveness of the electric discrimination rules for private pen- instances it actually interferes with power industry. sion plans were not readily applicable appropriate regulation. For example, Mr. President, it is for these reasons to public pension plans because of the the Ohio Power court case held that de- that I am today cosponsoring this leg- unique nature of governmental employ- cisions by the Securities and Exchange islation and I hope that it will soon be ers. Former Representative Al Ullman Commission under PUHCA preempt on the President’s desk for his signa- stated, during Ways and Means Com- FERC’s regulatory authority over util- ture. mittee consideration of ERISA, that ities under the Federal Power Act. This Congress was not prepared to apply legislation solves that problem by giv- By Mr. HATCH (for himself, Mr. nondiscrimination rules to public ing the FERC clear and exclusive au- CONRAD, Mr. COCHRAN, Mr. plans, saying that: thority to address matters within its GREGG, Ms. MOSELEY-BRAUN, The committee exempted Government jurisdiction and expertise. It will also Mr. ENZI, Mr. INOUYE, Mr. BAU- plans from the new higher requirements be- cause adequate information is not now avail- CUS, Mr. REID, Mr. D’AMATO, enhance the ability of State regulatory able to permit a full understanding of the agencies to do their jobs. In short, the Mr. KYL, Mr. ASHCROFT, Mr. impact these new requirements would have streamlining of the regulatory system DOMENICI, Mr. HAGEL, Mr. on governmental plans. proposed by this legislation will not di- BOND, Mr. THOMAS, Mr. MUR- After studying the issue, the Internal minish needed consumer protection, KOWSKI, and Mr. NICKLES): Revenue Service on August 10, 1977, is- and in several important ways it will S. 622. A bill to amend the Internal sued News Release IR–1869, which stat- actually enhance it. Revenue Code of 1986 to modify the ap- ed that issues concerning discrimina- If the regulatory system created by plication of the pension nondiscrimina- tion under State and local government PUHCA were necessary for consumer tion rules to governmental plans; to retirement plans would not be raised protection, then the regulatory bur- the Committee on Finance. until further notice. Thus, an indefi- dens it imposes might be justified. But NONDISCRIMINATION RULES FOR GOVERNMENT nite moratorium was placed on the ap- as everyone now acknowledges, PUHCA PENSION PLANS LEGISLATION plication of the new rules to govern- is not needed to protect consumers. As Mr. HATCH. Mr. President, I rise ment plans. a result, regulatory costs caused by today to introduce legislation with In 1986, Congress passed the Tax Re- PUHCA are simply passed on to con- Senators CONRAD, COCHRAN, GREGG, form Act of 1986, which made further sumers in the form of higher rates MOSELEY-BRAUN, ENZI, INOUYE, BAUCUS, changes to pension laws and the gen- without any offsetting consumer bene- REID, D’AMATO, KYL, ASHCROFT, DO- eral nondiscrimination rules. On May fits. MENICI, HAGEL, BOND, THOMAS, and 18, 1989, the Department of the Treas- Congress has long recognized that MURKOWSKI that would make perma- ury, in proposed regulations, lifted the PUHCA creates problems. In 1978, the nent the current moratorium on the 12-year public sector moratorium and Public Utility Regulatory Policies Act application of the pension non- required that public sector plans com- provided an exemption from PUHCA discrimination rules to State and local ply with the new rules immediately. for certain types of electric power gen- government pension plans. During the However, further examination re- erators. In 1992, the Energy Policy Act last Congress, I introduced similar leg- vealed, and Treasury and the IRS rec- gave additional exemptions to certain islation as S. 2047. And this year, a ognized, that a separate set of rules other types of electric power genera- similar provision was included in S. 14, was required for State and local gov- tors. These were Band-Aid fixes to introduced by Senator DASCHLE. ernment plans because of their unique PUHCA; needed, but not a complete so- The current laws governing private features. lution. Fundamental reform of PUHCA pension plans contain specific rules Consequently, through final rules is- is needed and is justified. The time is aimed at ensuring that pension plans sued in September 1991, the Treasury ripe to streamline and modernize the do not discriminate in favor of highly reestablished the moratorium on a act. It is for these reasons that I am paid employees. For nearly 20 years, temporary basis until January 1, 1993, cosponsoring Senator D’AMATO’s legis- State and local government pension and solicited comments for consider- lation. plans have been deemed to satisfy ation. In addition, State and local gov- Mr. President, there may be some these complex nondiscrimination rules ernment pension plans were deemed to who will try to use this legislation as a until Treasury can figure out how or if satisfy the statutory nondiscrimina- vehicle to restructure the electric util- these rules are applicable to unique tion requirements for years prior to ity industry, including to impose retail government pension plans. This bill 1993. Since then, the moratorium has wheeling or to federally preempt State simply puts an end to this stalled proc- been extended three more times, the public utility commissions. I will ess and dispels two decades of uncer- latest of which is in effect until 1999. strenuously resist any such effort. I tainty for administrators of State and Mr. President, here we are, in April have received assurances that Senator local government retirement plans. Let 1997, 23 years since the passage of April 22, 1997 CONGRESSIONAL RECORD — SENATE S3423 ERISA, and State and local govern- nondiscrimination rules. Lifting the apply to any matching contribution of a gov- ment pension plans are still living moratorium would impose on govern- ernmental plan (as so defined).’’. under the shadow of having to comply mental pension plans the cost task of (c) NONDISCRIMINATION RULES FOR SECTION with the cumbersome, costly, and com- 403(b) PLANS.—Section 403(b)(12) of the Inter- testing for discrimination when no sig- nal Revenue Code of 1986 (relating to non- plex nondiscrimination rules. Experi- nificant abuses or concerns exist. In discrimination requirements) is amended by ence over the past 20 years has shown fact, finally imposing the non- adding at the end the following: that the existing nondiscrimination discrimination rules at this juncture ‘‘(C) GOVERNMENTAL PLANS.—For purposes rules have limited utility in the public may require benefits to be reduced for of paragraph (1)(D), the requirements of sub- sector. Furthermore, the long delay in State and local government employees paragraph (A)(i) shall not apply to a govern- action illustrates the seriousness of the and force costly modifications to these mental plan (within the meaning of section problem and the doubtful issuance of retirement plans. This legislation coin- 414(d)).’’. (d) EFFECTIVE DATE.— nondiscrimination regulations by the cides with the principle of allowing a (1) IN GENERAL.—The amendments made by Department of the Treasury. State to enjoy the right to determine this section apply to taxable years beginning Mr. President, during consideration the compensation of its employees. on or after the date of enactment of this Act. of another extension of the morato- Mr. President, with another expira- (2) TREATMENT FOR YEARS BEGINNING BE- rium, a coalition of associations rep- tion of the moratorium looming in the FORE DATE OF ENACTMENT.—A governmental resentative of State and local govern- future, I believe it is time to address plan (within the meaning of section 414(d) of the Internal Revenue Code of 1986) shall be mental plans summarized their current this issue. I have no illusion that it position in a letter to IRS Commis- treated as satisfying the requirements of sec- will be resolved quickly. The complex- tions 401(a)(3), 401(a)(4), 401(a)(26), 401(k), sioner Margaret Richardson dated Oc- ities of these rules and the uniqueness 401(m), 403 (b)(1)(D) and (b)(12), and 410 of tober 13, 1995. of governmental plans have brought us such Code for all taxable years beginning be- In our discussions with Treasury over the to where we are today. I believe that, fore the date of enactment of this Act. past two years, there have been no abuses or as Senators better understand the his- Mr. CONRAD, Mr. President, I rise even significant concerns identified that would warrant the imposition of such a cum- tory of this issue, they will agree with today as an original cosponsor of legis- bersome thicket of federal rules on public us that the appropriate step is to end lation to modify the application of pen- plans that already are the subject of State this uncertainty and make the tem- sion nondiscrimination rules to State and local government regulation. porary moratorium permanent. and local governmental pension plans. Accordingly, while we always remain open Mr. President, I ask unanimous con- This legislation, originally introduced to further discussion, as our Ways and Means sent that the text of the bill be printed by Senator HATCH and myself in the statement indicates, the experience of the in the RECORD. 104th Congress, will provide relief to past two years in working with Treasury to There being no objection, the bill was develop a sensible and workable set of non- State and local governments from un- discrimination rules for governmental plans ordered to be printed in the RECORD, as necessary and overly burdensome Fed- has convinced us that the task ultimately is follows: eral regulations. a futile one—portending tremendous cost, S. 622 Pension nondiscrimination laws are complexity, and disruption of sovereign Be it enacted by the Senate and House of Rep- to assure that workers at all levels of State operations in the absence of any iden- resentatives of the United States of America in employment are given access to the tifiable problem. Congress assembled, benefits of tax-exempt pension plans. Mr. President, the sensible conclu- SECTION 1. MODIFICATIONS TO NONDISCRIMINA- As employers, State and local govern- sion of this 20-year exercise is to admit TION AND MINIMUM PARTICIPATION ments employ a wide range of workers, that the Treasury is not likely to issue RULES WITH RESPECT TO GOVERN- MENTAL PLANS. from judges to firefighters to teachers. regulations for State and local pension (a) GENERAL NONDISCRIMINATION AND PAR- Each occupation requires that its plans and Congress should make the TICIPATION RULES.— unique circumstances be considered temporary moratorium permanent. (1) NONDISCRIMINATION REQUIREMENTS.— when determining pension benefits. Furthermore, there are examples to Section 401(a)(5) of the Internal Revenue Laws that were created by the Federal support this legislation. Relief from Code of 1986 (relating to qualified pension, Government do not adequately address the pension nondiscrimination rules is profit-sharing, and stock bonus plans) is the needs of the diverse work force of not a new concept. In reality, Mr. amended by adding at the end the following: State and local governments. ‘‘(G) GOVERNMENTAL PLANS.—Paragraphs President, State and local government Public pension plans are negotiated pension plans face a higher level of (3) and (4) shall not apply to a governmental plan (within the meaning of section 414(d)).’’. by popularly elected governments and scrutiny. State law generally requires (2) ADDITIONAL PARTICIPATION REQUIRE- subject to public scrutiny. They do not publicly elected legislators to amend MENTS.—Section 401(a)(26)(H) of such Code require a high degree of Federal re- the provisions of a public plan. Elec- (relating to additional participation require- view. The process of enacting these toral accountability to the voters and ments) is amended to read as follows: plans promotes fair benefits for govern- media scrutiny serve as protections ‘‘(H) EXCEPTION FOR GOVERNMENTAL mental employees. Public pension against abusive and discriminatory PLANS.—This paragraph shall not apply to a plans have been given temporary ex- governmental plan (within the meaning of benefits. emption from nondiscrimination laws Moreover, precedent exists for Con- section 414(d)).’’. (3) MINIMUM PARTICIPATION STANDARDS.— for almost 20 years, and the result is gress to grant relief from the non- Section 410(c)(2) of such Code (relating to ap- that full-time public employees enjoy discrimination rules. In 1986, the Con- plication of participation standards to cer- almost twice the pension coverage rate gress established the Thrift Savings tain plans) is amended to read as follows: of their counterparts in the private Fund for Federal employees. As origi- ‘‘(2) A plan described in paragraph (1) shall sector. It is time to make this tem- nally enacted, the fund was required to be treated as meeting the requirements of porary exemption permanent. comply with the 401(k) nondiscrimina- this section for purposes of section 401(a), ex- This bill enjoys a wide range of sup- tion rules on employee contributions cept that in the case of a plan described in port from State and local governments, and matching contributions to the subparagraph (B), (C), or (D) of paragraph (1), this paragraph shall only apply if such plan as well as public employee representa- fund. However, in 1987, as part of a Con- meets the requirements of section 401(a)(3) tives. I urge my colleagues to join Sen- tinuing Appropriations Act for 1988, (as in effect on September 1, 1974).’’. ator HATCH and me, along with a bipar- the Congress passed a provision that (b) PARTICIPATION STANDARDS FOR QUALI- tisan group of Senators, to ease the made these nondiscrimination rules in- FIED CASH OR DEFERRED ARRANGEMENTS.— burden of Federal regulation on State applicable to the Federal Thrift Sav- Section 401(k)(3) of the Internal Revenue and local governments. I look forward ings Fund. Thus, Congress has re- Code of 1986 (relating to application of par- to this bill’s consideration in commit- ticipation and discrimination standards) is affirmed the need to treat govern- tee and on the Senate floor. mental pension plans as unique. amended by adding at the end the following: Mr. President, this legislation is not ‘‘(G)(i) The requirements of subparagraph (A)(i) and (C) shall not apply to a govern- By Mr. INOUYE (for himself and sweeping, nor does it grant any new mental plan (within the meaning of section Mr. AKAKA): treatment to these plans. Because of 414(d)). S. 623. A bill to amend title 38, Unit- the moratorium, governmental plans ‘‘(ii) The requirements of subsection (m)(2) ed States Code, to deem certain service are currently treated as satisfying the (without regard to subsection (a)(4)) shall in the organized military forces of the S3424 CONGRESSIONAL RECORD — SENATE April 22, 1997 Government of the Commonwealth of Mr. President, I ask unanimous con- These contracts are very lucrative the the Phillipines and the Philippine sent that the text of my bill be placed way they are let under the 1965 act, and Scouts to have been active service for in the RECORD. the American people are getting purposes of benefits under programs There being no objection, the bill was shafted and have been for a very long administered by the Secretary of Vet- ordered to be printed in the RECORD, as time. erans Affairs; to the Committee on follows: Instead of putting the money that we Veterans Affairs. S. 623 get today back into the Treasury for THE FILIPINO VETERANS EQUITY ACT OF 1997 Be it enacted by the Senate and House of Rep- general purposes, under my bill, the money we get from the contracts will Mr. INOUYE. Mr. President, I rise to resentatives of the United States of America in go to a special account for the use of introduce legislation which amends Congress assembled, the National Park Service, and Lord title 38, United States Code, to restore SECTION 1. SHORT TITLE. only knows every study shows they full veterans’ benefits, by reason of This Act may be cited as the ‘‘Filipino Veterans Equity Act of 1997’’. need it. service to certain organized military SEC. 2. CERTAIN SERVICE IN THE ORGANIZED This will be the 18th year that I have forces of the Philippine Commonwealth MILITARY FORCES OF THE PHIL- worked to reform the concession poli- Army and the Philippine Scouts. IPPINES AND THE PHILIPPINE cies of this country. The very first SCOUTS DEEMED TO BE ACTIVE On July 26, 1942, President Roosevelt oversight hearing I ever held upon be- issued a military order that called SERVICE. (a) IN GENERAL.—Section 107 of title 38, coming chairman of the Parks Sub- members of the Philippine Common- United States Code, is amended— committee in 1979 was on this very wealth Army into the service of the (1) in subsection (a)— issue. One has to have a lot of patience U.S. Forces of the Far East. Under the (A) by striking out ‘‘not’’ after ‘‘Army of to operate around here. command of Gen. Douglas MacArthur, the United States, shall’’; and Since that time, there has been no our Filipino allies joined American sol- (B) by striking out ‘‘, except benefits telling how many reports, hearings, diers in fighting some of the most under—’’ and all that follows and inserting markups, floor debates there have fiercest battles of World War II. in lieu thereof a period; and (2) in subsection (b)— been. Everybody agrees the existing From the onset of the war through (A) by striking out ‘‘not’’ after ‘‘Armed law ought to be changed, but in 18 February 18, 1946, Filipinos who were Forces Voluntary Recruitment Act of 1945 years, with the most diligent efforts I called into service under President shall’’; and can put into it, it has not been Roosevelt’s order were entitled to full (B) by striking out ‘‘except—’’ and all that changed, simply because the park con- veterans’ benefits by reason of their ac- follows and inserting in lieu thereof a period. cessioners have more clout with some tive service in our Armed Forces. Un- (b) CONFORMING AMENDMENTS.—(1) The Members of the Senate than have I. fortunately, on February 18, 1946, the heading of such section is amended to read They have more clout than the Amer- as follows: Congress enacted the Rescission Act of ican people have with the U.S. Senate. 1946 (now codified as section 107, title § 107. Certain service deemed to be active Mr. President, let me just tell you service: service in organized military forces 38, United States Code), which states what has been happening. of the Philippines and in the Philippine In 1995—that is the latest year for that service performed by these Fili- Scouts’’. pino veterans is not deemed as active which we have complete information (2) The item relating to such section in the on these concession contracts—in 1995, service for purposes of any law of the table of sections at the beginning of chapter United States conferring rights, privi- 1 of such title is amended to read as follows: the United States received just under leges, or benefits. On May 27, 1946, the ‘‘107. Certain service deemed to be active $16 million in franchise fees on gross Congress extended the limitation on service: service in organized concession revenues of $676 million, a benefits to the new Philippine Scouts military forces of the Phil- whopping 2.4-percent return. units. ippines and in the Philippine These contracts are almost handed Scouts.’’. Interestingly enough, section 107 de- down from generation to generation. nied Filipino veterans access to health SEC. 3. EFFECTIVE DATE. They probably put them in their will (a) IN GENERAL.—The amendments made by care, particularly for nonservice con- and give them to their first-born son. this Act shall take effect on the date of en- It is almost impossible to undo one. nected disability, and denied them actment of this Act. But the U.S. taxpayer had a 2.4 percent other benefits such as pensions and (b) APPLICABILITY.—No benefits shall ac- return on $676 million of national park home loan guarantees. Additionally, crue to any person for any period before the effective date of this Act by reason of the concessions fees last year. section 107 limited the benefits re- In all fairness, let me add this. Under ceived for service-connected disabil- amendments made by this Act. f the existing law, a concessioner can ities and death compensation to 50 per- also make improvements in the parks cent of what was received by their By Mr. BUMPERS: in consultation and agreement with American counterparts. S. 624. A bill to establish a competi- the National Park Service. He can As a result, Filipino veterans sued to tive process for the awarding of conces- make improvements, he might even obtain relief from this discriminatory sion contracts in units of the National build a new hotel—all kinds of things treatment. The U.S. District Court for Park System, and for other purposes; like that—and he is entitled then to the District of Columbia, on May 12, to the Committee on Energy and Natu- take that into consideration as a part 1989, in Quiban versus U.S. Veterans ral Resources. of his fee. But even when you add that Administration, declared section 107 THE NATIONAL PARK SERVICE CONCESSION in, even when you add in the amount unconstitutional. However, the U.S. POLICY REFORM ACT OF 1997 that concessioners spend to improve Court of Appeals for the District of Co- Mr. BUMPERS. Mr. President, as a the park, which, incidentally, is to lumbia reversed that ruling and the part of the Earth Day celebration, I their benefit because it invariably in- veterans did not file a petition for cer- am, once again, introducing legislation creases revenues, that increases the tiorari to the U.S. Supreme Court. to reform the concessions policies of amount we received to $40 million on Thus, the Congress is the only hope for the National Park Service. This bill is $676 million, still only a 5.9-percent re- rectifying this injustice. very similar to a bill I sponsored in the turn. For many years, Filipino veterans of 103d Congress—listen to this—which You can invest in a T-bill and do as World War II have sought to correct passed the Senate 90 to 9 and passed well, but this is our land, our property, this injustice by seeking equal treat- the House 386 to 30, but it is not yet the reason tourists go there and spend ment for their valiant military service law. It repeals the 1965 Concessions their money, because it is a park that in our Armed Forces. We must not ig- Policy Act which has been over a 30- Congress, in its infinite wisdom, estab- nore the recognition they duly deserve year-old outrage. lished. Any property owner in the Unit- as U.S. veterans. Accordingly, I urge My legislation would establish an ed States should ask yourself this ques- my colleagues to support this measure open competitive process for awarding tion: Would you lease your property which would restore full veterans’ ben- concessions contracts in units of the out for that kind of return when it was efits, by reason of service, to our Fili- National Park System. It will be a producing that kind of revenue for the pino allies of World War II. competitive process for the first time. lessee? You would not even consider it. April 22, 1997 CONGRESSIONAL RECORD — SENATE S3425 A 5.9-percent return we are getting elimination of what is known as good old competition and how it solves now is better than we have received in possessory interest. And here is the all problems. This is the most egre- the past, but listen to this, just to way it has been working. A conces- gious policy I can imagine and yet it show you how ridiculous the current sioner goes to the National Park Serv- has been going on for years and years. policy is. You will recall that ice—this is just a hypothetical case— But if we pass this bill it will not go Matsushita bought MCA, which owned and says, ‘‘We want to build a hotel for on any more. the Yosemite Park and Curry Co., the $10 million.’’ They work out the deal Mr. President, we have made some concessioner at Yosemite. So and the Park Service approves it. progress through the efforts of the ad- Matsushita, when they bought this What happens at that point is, they ministration. However, they have gone company, inherited the concessions start depreciating that hotel. Any busi- about as far as they can go just doing contract at Yosemite, which produces nessman does that, of course. So the things by regulation. They cannot do the most concessions revenue of any concessioner starts depreciating this very much more. But I give a lot of park in the United States. $10 million hotel over a 30- or 40-year credit to Bruce Babbitt and President This will show what happens when period, whatever the IRS requires—let Clinton for at least trying to bring you have competition. The people in us assume it is a 40-year depreciation— some equity into this without changing this place, incidentally, are supposed and at the end of 20 years he has depre- the law. to believe in capitalism. They believe ciated $5 million and has $5 million left But you know, we have a lot of Sen- in competition. They believe if you to recover. ators here who have good friends who leave it to the marketplace, everything Under existing law, he is entitled to had the concession contract on some will work out just hunky-dory, except, receive whatever he can get for that park in their State for 40 years, and it seems, for mining and concessions. hotel. If he surrenders the contract, or they just cannot see fit to change the So, here was a contract that is kicked out, or for any other reason, law. Matsushita gave up, and whoever got loses his contract, he can receive lit- You know, the other night I was the new contract was going to have to erally the fair market value of the watching some show on NBC about pay off a $62 million note. hotel, which may very well be $15 mil- mining and how egregious our mining What happened in this contract, lion. He only paid $10 million, he has a policies are. I have worked on that for Matsushita gave up the contract, the tax deduction of $5 million, and he can about 8 years. And I think this year National Park Foundation took it for 1 turn right around and sell it for $15 may finally be the year because it is day just for transition purposes, and million and make that an obligation of getting to be a kind of a political hot then Delaware North bid and was the next concessioner. potato for people who are not from awarded the new contract, the first How much nonsense can you put in mining States to continue to allow time, I believe, in the history of the one law? You think about that. Now, that kind of ripoff, rape, and pillage of National Park Service, since the old you talk about a bird’s nest on the the taxpayers. But I can tell you it is law, that a contract had been let com- ground, that is possessory interest. not a bit worse than this concessions petitively. Mr. President, there is one other pro- policy we have had for all these years. Would you like to know what hap- vision in the old law that is equally as Mr. President, I ask unanimous con- pened? The year before this contract egregious. And that is the preferential sent that the full text of the bill be was let, the taxpayers got a return right an incumbent concessioner gets printed in the RECORD. from the Yosemite concessions oper- to renew his contract. Another hypo- The PRESIDING OFFICER. Without ations of three-quarters of 1 percent. thetical case—you have a 15-year con- objection, it is so ordered. And the first year—the first year— tract, we will say, in Yellowstone Na- S. 624 Delaware North had it under the new, tional Park. At the end of the 15 years, Be it enacted in the Senate and the House of actually competitively let contract; on the Park Service will put out a notice Representatives of the United States of America over $80 million of gross revenues, the to anybody who might be interested to in Congress assembled, taxpayers received about a 16-percent let them know if they would like to bid SECTION 1. SHORT TITLE. return. on the concessions operation at Yel- This Act may be cited as the ‘‘National Why, Mr. President, do we continue lowstone. Park Service Concession Policy Reform Act to beat this dog about how important So let us assume that I would kind of of 1997’’. it is to rebuild these facilities in the like to have the Yellowstone contract, SEC. 2. FINDINGS AND POLICY. parks and give a concessioner credit for so I go to the Park Service and say, ‘‘I (a) FINDINGS.—In furtherance of the Act of would like to bid on this.’’ And the August 25, 1916 (39 Stat. 535), as amended (16 it and all that? U.S.C. 1, 2–4), which directs the Secretary of My bill eliminates the anticompeti- Park Service says, ‘‘That’s just jakey. the Interior to administer areas of the Na- tive measures of the 1965 act, but it You go ahead and bid. Tell us what you tional Park System in accordance with the also recognizes that all concessions are would give us for it.’’ But let me tell fundamental purpose of preserving their sce- not the same. you something, whatever you bid, the nery, wildlife, natural and historic objects, People come to me and say, ‘‘How guy who has the contract now is enti- and providing for their enjoyment in a man- about the small operators? They’re tled meet your bid, and if so, he gets it. ner that will leave them unimpaired for the struggling to make ends meet.’’ Under You tell me, why would I spend a enjoyment of future generations, the Con- my bill small family operations half-million dollars or whatever it gress finds that the preservation and con- grossing less than $500,000 a year would takes preparing a bid on something as servation of park resources and values re- retain a preference to renew their con- significant as the concessions in quires that such public accommodations, fa- cilities, and services as the Secretary deter- tracts—so would outfitters and guide Yelowstone National Park, knowing mines are necessary and appropriate in ac- operators. Even though they are not a that the person who has that contract cordance with this Act— major share of the revenue, we prob- now need only meet my bid? (1) should be provided only under carefully ably exempt 80 to 90 percent of the con- He may have paid a 2-percent return controlled safeguards against unregulated cession operations because most of to the Federal Government last year. I and indiscriminate use so that visitation will them are admittedly rather small. But may be willing to pay 10 percent. And not unduly impair these values; and my bill ensures that there will be open the incumbent concessioner knows (2) should be limited to locations and de- signs consistent to the highest practicable competition for the large contracts what the contract is worth. So he degree with the preservation and conserva- which generate over 90 percent of the comes in and says, ‘‘Well, I’ll give you tion of park resources and values. total concessions revenue. 10 percent, too.’’ So I ask you, if you (b) POLICY.—It is the policy of the Congress As I have already pointed out, the are a businessman, who in his right that— revenues that we get under this bill mind is going to go out there and spend (1) development on Federal lands within a will go straight into a special account a lot of money preparing a bid, know- park shall be limited to those facilities and to be used by the National Park Serv- ing that the person who has the con- services that the Secretary determines are necessary and appropriate for public use and ice, similar to the entrance fee legisla- tract right now only need match your enjoyment of the park in which such facili- tion just enacted last Congress. bid? ties and services are located; Mr. President, one of the major I hear a lot of talk on the floor of the (2) development of such facilities and serv- changes that is made in this bill is the Senate about good old capitalism and ices within a park should be consistent to S3426 CONGRESSIONAL RECORD — SENATE April 22, 1997

the highest practicable degree with the pres- be used only to authorize provision of serv- (c) PROSPECTUS.—(1)(A) Prior to soliciting ervation and conservation of the park’s re- ices that the Secretary determines will have proposals for a concession contract at a sources and values; minimal impact on park resources and val- park, the Secretary shall prepare a prospec- (3) such facilities and services should be ues and which are consistent with the pur- tus soliciting proposals, and shall publish a provided by private persons, corporations, or poses for which the park was established and notice of its availability at least once in other entities, except when no qualified pri- with all applicable management plans for local or national newspapers or trade publi- vate interest is willing to provide such facili- such park. cations, as appropriate, and shall make such ties and services; (2) The Secretary— prospectus available upon request to all in- (4) if the Secretary determines that devel- (A) shall require payment of a reasonable terested parties. opment should be provided within a park, fee for issuance of an authorization under (B) A prospectus shall assign a weight to such development shall be designed, located, this section, such fees to remain available each factor identified therein related to the and operated in a manner that is consistent without further appropriation to be used, at importance of such factor in the selection with the purposes for which such park was a minimum, to recover associated manage- process. Points shall be awarded for each established; ment and administration costs; such factor, based on the relative strength of (5) the right to provide such services and to (B) shall require that the provision of serv- the proposal concerning that factor. develop or utilize such facilities should be ices under such an authorization be accom- (2) The prospectus shall include, but need awarded to the person, corporation, or entity plished in a manner consistent to the highest not be limited to, the following informa- submitting the best proposal through a com- practicable degree with the preservation and tion— petitive selection process; and conservation of park resources and values; (A) the minimum requirements for such (6) such facilities or services should be pro- (C) shall take appropriate steps to limit contract, as set forth in subsection (d); vided to the public at reasonable rates. the liability of the United States arising (B) the terms and conditions of the exist- SEC. 3. DEFINITIONS. from the provision of services under such an ing concession contract awarded for such As used in this Act, the term— authorization; and park, if any, including all fees and other (1) ‘‘concessioner’’ means a person, cor- (D) shall have no authority under this sec- forms of compensation provided to the Unit- poration, or other entity to whom a conces- tion to issue more authorizations than are ed States by the concessioner; (C) other authorized facilities or services sion contract has been awarded; consistent with the preservation and proper (2) ‘‘concession contract’’ means a contract which may be provided in a proposal; management of park resources and values, or permit (but not a commercial use author- (D) facilities and services to be provided by and shall establish such other conditions for ization issued pursuant to section 6) to pro- the Secretary to the concessioner, if any, in- issuance of such an authorization as the Sec- vide facilities or services, or both, at a park; cluding but not limited to, public access, retary determines appropriate for the protec- (3) ‘‘facilities’’ means improvements to utilities, and buildings; tion of visitors, provision of adequate and real property within parks used to provide (E) minimum public services to be offered appropriate visitor services, and protection accommodations, facilities, or services to within a park by the Secretary, including and proper management of the resources and park visitors; but not limited to, interpretive programs, (4) ‘‘park’’ means a unit of the National values of the park. campsites, and visitor centers; and Park System; (c) LIMITATIONS.—Any authorization issued (F) such other information related to the (5) ‘‘proposal’’ means the complete pro- under this section shall be limited to— proposed concession operation as is provided posal for a concession contract offered by a (1) commercial operations with annual to the Secretary pursuant to a concession potential or existing concessioner in re- gross revenues of not more than $25,000 re- contract or is otherwise available to the Sec- sponse to the minimum requirements for the sulting from services originating and pro- retary, as the Secretary determines is nec- contract established by the Secretary; and vided solely within a park pursuant to such essary to allow for the submission of com- (6) ‘‘Secretary’’ means the Secretary of the authorization; or petitive proposals. Interior. (2) the incidental use of park resources by (d) MINIMUM PROPOSAL REQUIREMENTS.—(1) SEC. 4. REPEAL OF CONCESSION POLICY ACT OF commercial operations which provide serv- No proposal shall be considered which fails 1965. ices originating outside of the park’s bound- to meet the minimum requirements as deter- (a) REPEAL.—The Act of October 9, 1965, aries: Provided, That such authorization mined by the Secretary. Such minimum re- Public Law 89–249 (79 Stat. 969, 16 U.S.C. 20– shall not provide for the construction of any quirements shall include, but need not be 20g), entitled ‘‘An Act relating to the estab- structure, fixture, or improvement on Fed- limited to— lishment of concession policies administered eral lands within the park. (A) the minimum acceptable franchise fee; in the areas administered by the National (d) DURATION.—The term of any authoriza- (B) any facilities, services, or capital in- Park Service and for other purposes’’, is tion issued under this section shall not ex- vestment required to be provided by the con- hereby repealed. The repeal of such Act shall ceed two years. cessioner; and not affect the validity of any contract en- (e) OTHER CONTRACTS.—A person, corpora- (C) measures necessary to ensure the pro- tered into under such Act, but the provisions tion, or other entity seeking or obtaining an tection and preservation of park resources. (2) The Secretary shall reject any proposal, of this Act shall apply to any such contract authorization pursuant to this section shall notwithstanding the franchise fee offered, if except to the extent such provisions are in- not be precluded from also submitting pro- the Secretary determines that the person, consistent with the express terms and condi- posals for concession contracts. corporation, or entity is not qualified, is tions of the contract. SEC. 7. COMPETITIVE SELECTION PROCESS. likely to provide unsatisfactory service, or (b) CONFORMING AMENDMENT.—The fourth (a) IN GENERAL.—(1) Except as provided in that the proposal is not responsive to the ob- sentence of section 3 of the Act of August 25, subsection (b), and consistent with the provi- jectives of protecting and preserving park re- 1916 (16 U.S.C. 3; 39 Stat. 535) is amended by sions of subsection (g), any concession con- sources and of providing necessary and ap- striking all through ‘‘no natural’’ and insert- tract entered into pursuant to this Act shall propriate facilities or services to the public ing in lieu thereof, ‘‘No natural’’. be awarded to the person, corporation, or at reasonable rates. SEC. 5. CONCESSION POLICY. other entity submitting the best proposal as (3) If all proposals submitted to the Sec- Subject to the findings and policy stated in determined by the Secretary, through a com- retary either fail to meet the minimum re- section 2, and upon a determination by the petitive selection process, as provided in this quirements or are rejected by the Secretary, Secretary that facilities or services are nec- section. the Secretary shall establish new minimum essary and appropriate for the accommoda- (2)(A) As soon as practicable after the date contract requirements and re-initiate the tion of visitors at a park, the Secretary of enactment of this Act, the Secretary shall competitive selection process pursuant to shall, consistent with the provisions of this promulgate appropriate regulations estab- this section. Act, laws relating generally to the adminis- lishing the competitive selection process. (e) SELECTION OF BEST PROPOSAL.—(1) In tration and management of units of the Na- (B) The regulations shall include provi- selecting the best proposal, the Secretary tional Park System, and the park’s general sions for establishing a procedure for the res- shall consider the following principal fac- management plan, concession plan, and olution of disputes between the Secretary tors: other applicable plans, authorize private per- and a concessioner in those instances where (A) the responsiveness of the proposal to sons, corporations, or other entities to pro- the Secretary has been unable to meet condi- the objectives of protecting and preserving vide and operate such facilities or services as tions or requirements or provide such serv- park resources and of providing necessary the Secretary deems necessary and appro- ices, if any, as set forth in a prospectus pur- and appropriate facilities and services to the priate. suant to sections 7(c)(2) (D) and (E). public at reasonable rates; SEC. 6. COMMERCIAL USE AUTHORIZATIONS (b) TEMPORARY CONTRACT.—Notwithstand- (B) the experience and related background (a) IN GENERAL.—To the extent specified in ing the provisions of subsection (a), the Sec- of the person, corporation, or entity submit- this section, the Secretary, upon request, retary may award a temporary concession ting the proposal, including but not limited may authorize a private person, corporation, contract in order to avoid interruption of to, the past performance and expertise of or other entity to provide services to park services to the public at a park, except that such person, corporation, or entity in provid- visitors through a commercial use authoriza- prior to making such a determination, the ing the same or similar facilities or services; tion. Secretary shall take all reasonable and ap- (C) the financial capability of the person, (b) CRITERIA FOR ISSUANCE OF AUTHORIZA- propriate steps to consider alternatives to corporation, or entity submitting the pro- TION.—(1) The authority of this section may avoid such an interruption. posal; and April 22, 1997 CONGRESSIONAL RECORD — SENATE S3427 (D) the proposed franchise fee: Provided, paragraph (g)(2) shall also apply to a conces- (1) $17,000,000 for fiscal year 1998. That consideration of revenue to the United sion contract— (2) $18,000,000 for fiscal year 1999. States shall be subordinate to the objectives (A) which the Secretary estimates will re- (3) $18,000,000 for fiscal year 2000. of protecting and preserving park resources sult in annual gross receipts of less than (4) $18,000,000 for fiscal year 2001. and of providing necessary and appropriate $500,000; (5) $18,000,000 for fiscal year 2002. facilities or services to the public at reason- (B) where the Secretary has determined (c) EXISTING CONCESSIONER IMPROVEMENT able rates. that the concessioner has operated satisfac- FUNDS.—Nothing in this section shall affect (2) The Secretary may also consider such torily during the term of the contract (in- or restrict the use of funds maintained by a secondary factors as the Secretary deems ap- cluding any extensions thereof); and concessioner in an existing concessioner im- propriate. (C) that the concessioner has submitted a provement account pursuant to a concession (3) In developing regulations to implement responsive proposal for a new concession contract in effect as of the date of enactment this Act, the Secretary shall consider the ex- contract which satisfies the minimum re- of this Act. No new, renewed, or extended tent to which plans for employment of Indi- quirements established by the Secretary pur- contracts entered into after the date of en- ans (including Native Alaskans) and involve- suant to section 7. actment of this Act shall provide for or au- ment of businesses owned by Indians, Indian (2) The provisions of this subsection shall thorize the use of such concessioner improve- tribes, or Native Alaskans in the operation not apply to a concession contract which ment accounts. of concession contracts should be identified solely authorizes a concessioner to provide (d) INSPECTOR GENERAL AUDITS.—Beginning as a factor in the selection of a best proposal outfitting, guide, river running, or other sub- in fiscal year 1998, the Inspector General of under this section. stantially similar services within a park pur- the Department of the Interior shall conduct (f) CONGRESSIONAL NOTIFICATION.—(1) The suant to subsection (h). a biennial audit of the concession fees gen- Secretary shall submit any proposed conces- (j) NO PREFERENTIAL RIGHT TO ADDITIONAL erated pursuant to this Act. The Inspector sion contract with anticipated annual gross SERVICES.—The Secretary shall not grant a General shall make a determination as to receipts in excess of $5,000,000 or a duration preferential right to a concessioner to pro- whether concession fees are being collected of ten or more years to the Committee on vide new or additional services at a park. and expended in accordance with this Act Energy and Natural Resources of the United SEC. 8. FRANCHISE FEES. and shall submit copies of each audit to the States Senate and the Committee on Re- (a) IN GENERAL.—Franchise fees shall not Committee on Energy and Natural Resources sources of the United States House of Rep- be less than the minimum fee established by of the United States Senate and the Commit- resentatives. the Secretary of each contract. The mini- tee on Resources of the United States House (2) The Secretary shall not award any such mum fee shall be determined in a manner of Representatives. proposed contract until at least 60 days sub- that will provide the concessioner with a SEC. 10. DURATION OF CONTRACT. sequent to the notification of both Commit- reasonable opportunity to realize a profit on (a) MAXIMUM TERM.—A concession contract tees. the operation as a whole, commensurate (g) NO PREFERENTIAL RIGHT OF RENEWAL.— entered into pursuant to this Act shall be with the capital invested and the obligations awarded for a term not to exceed ten years: (1) Except as provided in paragraph (2), the assumed under the contract. Provided, however, That the Secretary may Secretary shall not grant a preferential right (b) MULTIPLE CONTRACTS WITHIN A PARK.— award a contract for a term of up to twenty to a concessioner to renew a concession con- If multiple concession contracts are awarded years if the Secretary determines that the tract entered into pursuant to this Act. to authorize concessioners to provide the contract terms and conditions necessitate a (2) The Secretary shall grant a preferential same or similar outfitting, guide, river run- longer term. right of renewal with respect to a concession ning, or other similar services at the same (b) TEMPORARY CONTRACT.—A temporary contract covered by subsections (h) and (i), approximate location or resource within a concession contract awarded on a non-com- subject to the requirements of the appro- specific park, the Secretary shall establish petitive basis pursuant to section 7(b) shall priate subsection. an identical franchise fee for all such con- be for a term not to exceed two years. (A) As used in this subsection, and sub- tracts, subject to periodic review and revi- sections (h) and (i), the term ‘‘preferential sion by the Secretary. Such fee shall reflect SEC. 11. TRANSFER OF CONTRACT. right of renewal’’ means that the Secretary fair market value. (a) IN GENERAL.—No concession contract shall allow a concessioner satisfying the re- (c) ADJUSTMENT OF FRANCHISE FEES.—The may be transferred, assigned, sold, or other- quirements of this subsection (and sub- amount of any franchise fee for the term of wise conveyed by a concessioner without sections (h) or (i), as appropriate) the oppor- the concession contract shall be specified in prior written notification to, and approval of tunity to match the terms and conditions of the concession contract and may only be the Secretary. any competing proposal which the Secretary modified to reflect substantial changes from (b) APPROVAL OF TRANSFER.—The Sec- determines to be the best proposal. the conditions specified or anticipated in the retary shall not unreasonably withhold ap- (B) A concessioner who exercises a pref- contract. proval of a transfer, assignment, sale, or con- erential right of renewal in accordance with SEC. 9. USE OF FRANCHISE FEES. veyance of a concession contract, but shall the requirements of this paragraph shall be (a) DEPOSITS TO TREASURY.—All receipts not approve the transfer, assignment, sale, entitled to award of the new concession con- collected pursuant to this Act shall be cov- or conveyance of a concession contract to tract with respect to which such right is ex- ered into a special account established in the any individual, corporation or other entity if ercised. Treasury of the United States. Except as the Secretary determines that— (h) OUTFITTING AND GUIDE CONTRACTS.—(1) provided in subsection (b), amounts covered (1) such individual, corporation or entity The provisions of paragraph (g)(2) shall apply is, or is likely to be, unable to completely only— into such account in a fiscal year shall be available for expenditure, subject to appro- satisfy all of the requirements, terms, and (A) to a concession contract— conditions of the contract; (i) which solely authorizes a concessioner priation, solely as follows: (1) Fifty percent shall be allocated among (2) such transfer, assignment, sale or con- to provide outfitting, guide, river running, or veyance is not consistent with the objectives other substantially similar services within a the units of the National Park System in the same proportion as franchise fees collected of protecting and preserving park resources, park; and and of providing necessary and appropriate (ii) which does not grant such concessioner from a specific unit bears to the total facilities or services to the public at reason- any interest in any structure, fixture, or im- amount covered into the account for each able rates; provement pursuant to section 12; and fiscal year, to be used for resource manage- (B) where the Secretary determines that ment and protection, maintenance activi- (3) such transfer, assignment, sale, or con- the concessioner has operated satisfactorily ties, interpretation, and research. veyance relates to a concession contract during the term of the contract (including (2) Fifty percent shall be allocated among which does not provide to the United States any extensions thereof); and the units of the National Park System on consideration commensurate with the prob- (C) where the Secretary determines that the basis of need, in a manner to be deter- able value of the privileges granted by the the concessioner has submitted a responsive mined by the Secretary, to be used for re- contract; or proposal for a new contract which satisfies source management and protection, mainte- (4) the terms of such transfer, assignment, the minimum requirements established by nance activities, interpretation, and re- sale, or conveyance directly or indirectly at- the Secretary pursuant to section 7. search. tribute a significant value to intangible as- (2) With respect to a concession contract (b) SPECIAL ACCOUNT.—(1) Beginning in fis- sets or otherwise may so reduce the oppor- (or extension thereof) covered by this sub- cal year 1998, all receipts collected in the tunity for a reasonable profit over the re- section which is in effect on the date of en- previous year in excess of the following maining term of the contract that the Unit- actment of this Act, the provisions of this amounts shall be made available from the ed States may be required to make substan- paragraph shall apply if the holder of such special account to the Secretary without fur- tial additional expenditures in order to avoid contract, under the laws and policies in ef- ther appropriation, to be allocated among interruption of services to park visitors. fect on the day before the date of enactment the units of the National Park System on SEC. 12. PROTECTION OF CONCESSIONER IN- of this Act, would have been entitled to a the basis of need, in a manner to be deter- VESTMENT. preferential right to renew such contract mined by the Secretary, to be used for re- (a) CURRENT CONTRACT.—(1) A concessioner upon its expiration. source management and protection, mainte- who before the date of the enactment of this (i) CONTRACTS WITH ANNUAL GROSS RE- nance activities, interpretation, and re- Act has acquired or constructed, or is re- CEIPTS UNDER $500,000.—(1) The provisions of search: quired under an existing concession contract S3428 CONGRESSIONAL RECORD — SENATE April 22, 1997

to commence acquisition or construction of (c) NEW STRUCTURES.—(1) On or after the (3) If the Secretary terminates a conces- any structure, fixture, or improvement upon date of enactment of this Act, a concessioner sion contract pursuant to this section, the land owned by the United States within a who constructs or acquires a new, additional, Secretary shall solicit proposals for a new park, pursuant to such contract, shall have a or replacement structure, fixture, or im- contract consistent with the provisions of possessory interest therein, to the extent provement upon land owned by the United this Act. provided by such contract. States within a park, pursuant to a conces- SEC. 15. RECORDKEEPING REQUIREMENTS. (2) Unless otherwise provided in such con- sion contract, shall have an interest in such (a) IN GENERAL.—Each concessioner shall tract, said possessory interest shall not be structure, fixture, or improvement equiva- keep such records as the Secretary may pre- extinguished by the expiration or termi- lent to the actual original cost of acquiring scribe to enable the Secretary to determine nation of the contract and may not be taken or constructing such structure, fixture, or that all terms of the concessioner’s contract for public use without just compensation. improvement, less straight line depreciation have been, and are being faithfully per- Such possessory interest may be assigned, over the estimated useful life of the asset ac- formed, and the Secretary or any of the Sec- transferred, encumbered, or relinquished. cording to Generally Accepted Accounting retary’s duly authorized representatives (3) Upon the termination of a concession Principles: Provided, That in no event shall shall, for the purpose of audit and examina- contract in effect before the date of enact- the estimated useful life of such asset exceed tion, have access to such records and to ment of this title, the Secretary shall deter- the depreciation period used for such asset other books, documents and papers of the mine the value of any outstanding for Federal income tax purposes. concessioner pertinent to the contract and (2) In the event that the contract expires possessory interest applicable to the con- all the terms and conditions thereof as the or is terminated prior to the recovery of tract, such value to be determined for all Secretary deems necessary. such costs, the concessioner shall be entitled purposes on the basis of applicable laws and (b) GENERAL ACCOUNTING OFFICE REVIEW.— contracts in effect on the day before the date to receive from the United States or the suc- The Comptroller General of the United of enactment of this Act. cessor concessioner payment equal to the States or any of his or her duly authorized (4) Nothing in this subsection shall be con- value of the concessioner’s interest in such representatives shall, until the expiration of strued to grant a possessory interest to a structure, fixture, or improvement. A succes- five calendar years after the close of the concessioner whose contract in effect on the sor concessioner may not revalue the inter- business year for each concessioner, have ac- date of enactment of this Act does not in- est in such structure, fixture, or improve- cess to and the right to examine any perti- clude recognition of a possessory interest. ment, the method of depreciation, or the es- nent books, documents, papers, and records (b) NEW CONTRACTS.—(1)(A) With respect to timated useful life of the asset. of the concessioner related to the contracts (3) Title to any such structure, fixture, or a concession contract entered into on or or contracts involved. after the date of enactment of this Act, the improvement shall be vested in the United value of any outstanding possessory interest States. SEC. 16. EXEMPTION FROM CERTAIN LEASE RE- QUIREMENTS. associated with such contract shall be set at (d) INSURANCE, MAINTENANCE AND REPAIR.— The provisions of section 321 of the Act of the value determined by the Secretary pur- Nothing in this section shall affect the obli- June 30, 1932 (47 Stat. 412; 40 U.S.C. 303b), re- suant to subsection (a)(3). gation of a concessioner to insure, maintain, lating to the leasing of buildings and prop- (B) As a condition of entering into a con- and repair any structure, fixture, or im- erties of the United States, shall not apply cession contract, the value of any outstand- provement assigned to such concessioner and to contracts awarded by the Secretary pur- ing possesory interest shall be reduced on an to insure that such structure, fixture, or im- suant to this Act. annual basis, in equal portions, over the provement fully complies with applicable same number of years as the time period as- safety and health laws and regulations. SEC. 17. AUTHORIZATION OF APPROPRIATIONS. sociated with the straight line depreciation SEC. 13. RATES AND CHARGES TO PUBLIC. There is authorized to be appropriated of the structure, fixture, or improvement as- The reasonableness of a concessioner’s such sums as may be necessary to carry out sociated with such possessory interest, as rates and charges to the public shall, unless this Act. provided by applicable Federal income tax otherwise provided in the bid specifications laws and regulations in effect on the day be- and contract, be judged primarily by com- By Mr. MCCONNELL (for himself, fore the date of enactment of this Act. parison with those rates and charges for fa- Mr. MOYNIHAN, Mr. LIEBERMAN, (C) In the event that the contract expires cilities and services of comparable character Mr. GORTON and Mr. GRAMS): or is terminated prior to the elimination of under similar conditions, with due consider- S. 625. A bill to provide for competi- any outstanding possessory interest, the ation for length of season, seasonal variance, tion between forms of motor vehicle in- concessioner shall be entitled to receive average percentage of occupancy, accessibil- surance, to permit an owner of a motor from the United States or the successor con- ity, availability and costs of labor and mate- vehicle to choose the most appropriate cessioner payment equal to the remaining rials, type of patronage, and other factors value of the possessory interest. deemed significant by the Secretary. form on insurance for that person, to (D) A successor concessioner may not re- SEC. 14. CONCESSIONER PERFORMANCE EVALUA- guarantee affordable premiums, to pro- value any outstanding possessory interest, TION. vide for more adequate and timely nor the period of time over which such inter- (a) REGULATIONS.—as soon as practicable compensation for accident victims, and est is reduced. after the date of enactment of this Act, the for other purposes; to the Committee (E) Title to any structure, fixture, or im- Secretary shall publish, after an appropriate on Commerce, Science, and Transpor- provement associated with any outstanding period for public comment, regulations es- tation. possessory interest shall be vested in the tablishing standards and criteria for evaluat- United States. ing the performance of concessions operating THE AUTO CHOICE REFORM ACT OF 1997 (2)(A) If the Secretary determines during within parks. Mr. MCCONNELL. Mr. President, I the competitive selection process that all (b) PERIODIC EVALUATION.—(1) The Sec- am happy today to join with my es- proposals submitted either fail to meet the retary shall periodically conduct an evalua- teemed colleagues, Senator MOYNIHAN minimum requirements or are rejected (as tion of each concessioner operating under a and Senator LIEBERMAN, to announce provided in section 7), the Secretary may, concession contract pursuant to this Act, as the introduction of the Auto Choice solely with respect to any outstanding appropriate, to determine whether such con- possessory interest associated with the con- cessioner has performed satisfactorily. In Reform Act. As you know, we intro- tract and established pursuant to a conces- evaluating a concessioner’s performance, the duced this bill in the last Congress, sion contract entered into prior to the date Secretary shall seek and consider applicable along with Senator Dole. We are proud of enactment of this Act, suspend the reduc- reports and comments from appropriate Fed- to announce that Senator SLADE GOR- tion provisions of subsection (b)(1)(B) for the eral, State, and local regulatory agencies, TON and Senator ROD GRAMS have also duration of the contract, and re-initiate the and shall seek and consider the applicable joined us as original cosponsors. competitive selection process as provided in views of park visitors and concession cus- You will hear lots of discussion section 7. tomers. If the Secretary’s performance eval- today, and in the coming months, (B) The Secretary may suspend such reduc- uation results in an unsatisfactory rating of tion provisions only if the Secretary deter- the concessioner’s overall operation, the about various aspects of automobile in- mines that the establishment of other new Secretary shall provide the concessioner surance and tort liability. But, every- minimum contract requirements is not like- with a list of the minimum requirements thing you will hear about Auto Choice ly to result in the submission of satisfactory necessary for the operation to be rated satis- can be summed up in two words: choice proposals, and that the suspension of the re- factory, and shall so notify the concessioner and savings. duction provisions is likely to result in the in writing. Consumers want, need, and deserve submission of satisfactory proposals: Pro- (2) The Secretary may terminate a conces- both. vided, however, That nothing in this para- sion contract if the concessioner fails to Very simply, the Auto Choice Reform graph shall be construed to require the Sec- meet the minimum operational requirements retary to establish a minimum franchise fee identified by the Secretary within the time Act offers consumers the choice of opt- at a level below the franchise fee in effect for limitations established by the Secretary at ing out of the pain and suffering litiga- such contract on the day before the expira- the time notice of the unsatisfactory rating tion lottery. The consumers who make tion date of the previous contract. is provided to the concessioner. this choice will achieve a substantial April 22, 1997 CONGRESSIONAL RECORD — SENATE S3429 savings on automobile insurance pre- —lawsuits, and the potential for hit- carry—and would recover, or fail to re- miums. ting the jackpot, drive overuse and cover, in the same way that they do Based on an analysis by the Rand In- abuse of the health care system. Re- today. The only change for tort drivers stitute for Civil Justice, the Joint Eco- ducing those costs by $4 billion annu- would be that, in the event that they nomic Committee estimates that, ally, without depriving one person of are hit by a personal protection driver, under Auto Choice, consumers could needed medical care, is clearly in our the tort driver would recover both eco- save a total of $45 billion nationwide in national interest. nomic and noneconomic damages from 1997—at no cost to the Government. Why would an injured party inflate his own insurance policy. This supple- And, over 5 years, Auto Choice could their medical claims, you might ask. mental first-party policy for tort driv- make available a total of $246 billion in It’s simple arithmetic. For every $1 of ers will be called tort maintenance savings. Now, that’s better than any economic loss, a party stands to re- coverage. tax cut that either party has proposed. cover up to $3 in pain and suffering The second choice is the personal What does a $45 billion annual sav- awards. In short, the more you go to protection system. Consumers choosing ings mean to the average driver? Well, the doctor, the more you get from the this system would be guaranteed that savings is colorfully and clearly jury. And, the more you get from the prompt recovery of their economic illustrated behind me with this check: jury, the more money your attorney losses, up to the levels of their own in- ‘‘Pay to the Order of the American puts in his own pocket. surance policy. These drivers would Driver—$243.’’ And this check is not a In addition to the massive fraud en- give up recovery of pain and suffering one-time payment. Motorists could couraged by the liability system, seri- damages in exchange for being immune achieve this type of savings every year. ously injured people are grossly under- from pain and suffering lawsuits. Per- However, before you can truly com- compensated under the tort system. A sonal protection drivers would achieve prehend the benefits of Auto Choice, 1991 Rand study reveals that people substantially reduced premiums be- you must understand the terrible costs with economic losses between $25,000 cause the personal protection system of the current tort liability system. and $100,000 recover on the average would dramatically reduce: First, pain The Nation’s auto insurance system only 50 percent of their economic and suffering damages, second, fraud, desperately needs an overhaul. And no- losses. People with losses in excess of and third, the bulk of attorney fees. body knows this better than the Amer- $100,000 recover only 9 percent. Under both insurance systems—tort ican motorist—who is now paying on Moreover, liability insurance does maintenance and personal protection— average $757 for automobile insurance. not pay until the claim is resolved. the injured party whose economic Between 1987 and 1994, average pre- Studies show that the average time to losses exceed his own coverage will miums rose 44 percent—nearly 11⁄2 recover is 16 months, and it takes have the right to sue the responsible times the rate of inflation. longer in serious injury cases. party for the excess. Moreover, tort Why are consumers forced to pay so The Auto Choice bill gives consumers drivers will retain the right to sue each much? a way out of this system of high pre- other for both economic and non- Because the auto insurance system is miums, rampant fraud, and slow, in- economic loss. Critics who say the clogged and bloated by fraud, wasteful equitable compensation. Our bill would right to sue is abolished by this bill are litigation, and abuse. remove the perverse incentives of law- plain wrong. First, let’s talk about fraud. In 1995, suits, while ensuring that car accident The advantages of personal protec- the F.B.I. announced a wave of indict- victims recover fully for their eco- tion coverage are enormous. First, personal protection coverage ments stemming from Operation Sud- nomic loss. assures that those who suffer injury, den Impact, the most wide-ranging in- Now, I’d like to answer the question: regardless of whether someone else is vestigation of criminal fraud schemes what is Auto Choice? Let me first an- responsible, will be paid for their eco- involving staged car accidents and swer with what it is not. It does not nomic losses. The driver does not have massive fraud in the health care sys- abolish lawsuits, and it does not elimi- to leave compensation up to the vagar- tem. The F.B.I. uncovered criminal en- nate the concept of fault within the terprises staging bus and car accidents ies of how an accident occurs and how legal system. There will no doubt be much coverage the other driver has. A in order to bring lawsuits and collect less reason to go to court, but the right money from innocent people, busi- driver whose car goes off a slippery to sue is absolutely not abolished. road will be able to recover for his eco- nesses and governments. F.B.I. Direc- What it does do is allow drivers to de- nomic losses. Such a blameless driver tor Louis Freeh estimates that every cide how they want to be insured. In could not recover under the tort sys- American household is burdened by an establishing the choice mechanism, the tem because no other person was at additional $200 in unnecessary insur- bill unbundles economic and non- fault. No matter when and how a driver ance premiums to cover this enormous economic losses and allows the driver or a member of his family is injured, amount of fraud. to choose whether to be covered for the driver knows his insurance will In addition to the pervasive criminal noneconomic losses—that is, pain and protect his family. fraud that exists, the incentives of our suffering losses. Second, the choice as to how much litigation system encourage injured In other words, if a driver wants to be insurance protection to purchase is in parties to make excessive medical covered for pain and suffering, he stays the hands of the driver, who is in the claims to drive up their damage claims in the current State system. If he best position to know how much cov- in lawsuits. The Rand Institute for wants to opt-out of the pain and suffer- erage he and his family need. He can Civil Justice, in a study released in ing regime, he chooses the personal choose as much or as little insurance 1995, concluded that 35 to 42 percent of protection system. as his circumstances require, from claimed medical costs in car accident This choice, which sounds amazingly $20,000 of protection to $1 million of cases are excessive and unnecessary. simple and imminently reasonable, is, coverage. Let me repeat that in simple English: believe it or not, currently unavailable Third, people who elect the personal well over one-third of doctor, hospital, for over ninety percent of all motor- protection option will, in the event physical therapy, and other medical ists. Auto Choice will change that. they are injured, be paid promptly, as costs claimed in car accident cases are Let me briefly explain the choices their losses accrue. for nonexistent injuries or for unneces- that our bill will offer every consumer. Fourth, we will have more rational sary treatment. A consumer will be able to choose one use of precious health care resources. The value of this wasteful health of two insurance systems. Insuring on a first-party basis elimi- care? Four billion dollars annually. I The first choice is the tort mainte- nates the incentives for excess medical don’t need to remind anyone of the on- nance system. Drivers who wish to stay claiming. When a person chooses to be going local and national debate over in their current system would choose compensated for actual economic loss, our health care system. While people this system and be able to sue and be the tort system’s incentives for pad- have strongly-held differences over the sued for pain and suffering. These driv- ding one’s claims disappear. causes and solutions to that problem, ers would essentially buy the same Fifth, Auto Choice offers real bene- the Rand data make one thing certain type of insurance that they currently fits for low-income drivers because the S3430 CONGRESSIONAL RECORD — SENATE April 22, 1997 savings are progressive. Low-income Now, before I turn over the floor to (C) unbearable cost burdens on low-income drivers will see the biggest savings be- Senator MOYNIHAN, I’d like to share individuals, imposing on them the Hobson’s cause they pay a higher proportion of with you a scathing indictment of the choice of driving on an unlawful, uninsured their disposable income in insurance tort liability system that was written basis or foregoing essential needs, such as food and adequate shelter; costs. A study of low income residents more than a quarter of a century ago (D) significant reductions in, access to, and of Maricopa County, AZ, revealed that by a true visionary: purchases of, motor vehicles, which— households below 50 percent of the pov- No one involved has an incentive to mod- (i) damage the economic well-being of erty line spent an amazing 31.6 percent eration or reasonableness. The victim has many low-income individuals; and of their disposable income on car insur- every reason to exaggerate his losses. It is (ii) cause unnecessary harm to a critical ance. some other person’s insurance company that component of the economy of the United For many low-income families the must pay. The company has every reason to States; choices are stark: car insurance and resist. It is somebody else’s customer who is (E) significant deterioration of the eco- making the claim. Delay, fraud, the ability to get to the job, or medi- nomic well-being of the majority of major contentiousness are maximized, and in the cities in the United States through the impo- cine, new clothing or extra food for the process the system becomes grossly ineffi- sition of a massive tort tax that— children. Or, they choose the worst al- cient and expensive. Automobile accident (i) places a disproportionate burden on ternative of all—driving without any litigation has become a 20th-Century equiva- urban residents; and insurance. Should we allow our litiga- lent of Dickens’s Court of Chancery, eating (ii) contributes to the abandonment of the tion system to promote such unlawful up the pittance of widows and orphans, a cities by many taxpayers who are able to conduct? vale from which few return with their re- achieve substantial after-tax savings on Moreover, Auto Choice offers benefits spect for just[ice] undiminished. automobile insurance premiums by moving to all taxpayers, even those who don’t Well, those insightful and prophetic to adjacent suburban communities; and (F) significant inability to achieve market- drive. For example, local governments words were spoken by none other than the man who stands here with me as an based discounts in insurance rates for owners will save taxpayer dollars through de- of safer cars, which reduces the level of safe- creased insurance and litigation costs. original cosponsor today, my colleague ty for drivers and passengers of motor vehi- This will allow governments to use our from the State of New York, PAT MOY- cles; tax dollars to more directly benefit the NIHAN. PAT, it’s taken over 25 years, (4) insurance to indemnify individuals for community. Think of all the additional but I think we’re finally going to over- personal injuries arising from motor vehicle police and firefighters that could be haul this broken-down auto insurance collisions is frequently unavailable at a rea- hired with money now spent on law- system. sonable cost because of the potential liabil- ity for third-party tort claims; suits. Or, schools and playgrounds that Mr. President, this bill has broad support from across the spectrum. It (5) a system that gives consumers the op- could be better equipped. New York portunity to insure themselves and that sep- City spends more on liability claims should be obvious by the support and arates economic and noneconomic damages than it spends on libraries, botanical endorsements that this bill has already for the purposes of purchasing insurance gardens, the Bronx Zoo, the Metropoli- received that this is not conservative would provide significant cost savings to tan Museum of Art and the Depart- or liberal legislation. It is consumer drivers of motor vehicles; ment of Youth Services, combined. legislation. I ask unanimous consent (6) a system that enables individuals to Imagine the improved quality of life in that the text of the bill and statements choose the form of motor vehicle insurance that best suits their needs would— our urban areas if governments were in support of Auto Choice from the Re- publican mayor of New York City, Ru- (A) enhance individual freedom; free of spending on needless lawsuits. (B) reduce the cost of motor vehicle insur- Last, we will create incentives for dolph Giuliani, the former Massachu- ance; and safer cars. Now, it actually costs more setts Governor and Democratic presi- (C) increase average compensation in the to insure a safer car. That’s because a dential candidate, Michael Dukakis, event of an accident; and driver in a bigger car who is respon- and the executive director of the Re- (7) a system that targets and emphasizes sible for another’s injury may have a form Party, Russ Verney, be printed in the scourge of those individuals who drive bigger claim to pay. After all, the big- the RECORD. under the influence of drugs or alcohol will ger, safer car may cause more damage There being no objection, the items further deter such dangerous and unlawful conduct. to the person in a smaller, less safe car. were ordered to be printed in the SEC. 3. PURPOSE. RECORD, as follows: So insuring a bigger, safer car costs The purpose of this Act is to allow consum- more. But under auto choice and first- S. 625 ers of motor vehicle insurance to choose be- party coverage, insurance companies Be it enacted by the Senate and House of Rep- tween— would reward customers with lower resentatives of the United States of America in (1) an insurance system that provides sub- premiums for safer cars. Congress assembled, stantially the same remedies as are available The bottom line? We think that con- SECTION 1. SHORT TITLE. under applicable State law; and sumers should be able to make one This Act may be cited as the ‘‘Auto Choice (2) a predominately first-party insurance simple choice: ‘‘Do you want to con- Reform Act of 1997’’. system that provides for— tinue to pay $757 a year for auto insur- SEC. 2. FINDINGS. (A) more comprehensive recovery of eco- nomic loss in a shorter period of time; and ance and have the right to recover pain Congress finds that— (1) the costs of operating a motor vehicle (B) the right to sue negligent drivers for and suffering damages? Or would you are excessive due in substantial part to the any uncompensated economic losses. rather save $243 a year on your pre- legal and administrative costs associated SEC. 4. DEFINITIONS. miums, be promptly reimbursed for with the resolution of claims under the tort In this Act: your economic losses, and forego pain liability insurance system; (1) ACCIDENT.—The term ‘‘accident’’ means and suffering damages?’’ (2) the tort liability insurance system an unforeseen or unplanned event that— It’s really that simple. And, we’re often results in— (A) causes loss or injury; and not even going to tell them which an- (A) the failure to provide compensation (B) arises from the operation, mainte- swer is the right one. Because that’s commensurate with loss; nance, or use of a motor vehicle. (B) an unreasonable delay in the payment (2) ADD-ON LAW.—The term ‘‘add-on law’’ not up to us. It’s up to the consumer. of benefits; and means a State law that provides that persons We simply want to give them the (C) the expenditure of an excessive amount injured in motor vehicle accidents— choice. for legal fees; (A) are compensated without regard to In closing, I’d like to do something I (3) the incentives of the tort liability in- fault for economic loss; and rarely do—quote the New York Times— surance system for motor vehicles are dis- (B) have the right to claim without any which summed up the benefits, and in- torted, and result in— limitation for noneconomic loss based on deed, the simplicity of Auto Choice: (A) significant fraud in the claims process, fault. Auto Choice ‘‘would give families the which exacerbates the level of distrust of (3) ECONOMIC LOSS.—The term ‘‘economic option of foregoing suits for nonmone- many individuals in the United States with loss’’ means any objectively verifiable pecu- respect to the legal process and the rule of niary loss resulting from an accident, includ- tary losses in exchange for quick and law; ing— complete reimbursement for every (B) significant, wasteful, fraudulent, and (A) reasonable and necessary medical and blow to their pocketbook. Everyone costly overuse and abuse of scarce health rehabilitation expenses; would win—except the lawyers.’’ care resources and services; (B) loss of earnings; April 22, 1997 CONGRESSIONAL RECORD — SENATE S3431

(C) burial costs; (i) conduct within the course of a business (B) ATTORNEYS’ FEES.—The term includes a (D) replacement services loss; of manufacturing, sale, repairing, servicing, reasonable attorney’s fee calculated on the (E) costs of making reasonable accom- or otherwise maintaining motor vehicles, un- basis of the value of the attorney’s efforts as modations to a personal residence to make less the conduct occurs outside of the scope reflected in payment to the attorney’s cli- the residence more habitable for an injured of the business activity; or ent. individual; and (ii) conduct within the course of loading or (C) EXCLUSIONS.—The term does not in- (F) loss of employment, and loss of busi- unloading a motor vehicle, unless the con- clude amounts paid under— ness or employment opportunities, to the ex- duct occurs while occupying the motor vehi- (i) personal protection insurance; tent recovery for such losses is allowed cle. (ii) tort maintenance coverage; under applicable State law. (13) PERSON.—The term ‘‘person’’ means (iii) no-fault or add-on motor vehicle insur- (4) FINANCIAL RESPONSIBILITY LAW.—The any individual, corporation, company, asso- ance; term ‘‘financial responsibility law’’ means a ciation, firm, partnership, society, joint (iv) Federal, State, or private disability or law (including a law requiring compulsory stock company, or any other entity, includ- sickness programs; coverage) penalizing motorists for failing to ing any governmental entity. (v) Federal, State, or private health insur- carry defined limits of tort liability insur- (14) PERSONAL PROTECTION INSURANCE.—The ance programs; ance covering motor vehicle accidents. term ‘‘personal protection insurance’’ means (vi) employer wage continuation programs; insurance that provides for— or (5) INJURY.—The term ‘‘injury’’ means bod- ily injury, sickness, disease, or death. (A) benefits to an insured person for eco- (vii) workers’ compensation or similar oc- nomic loss without regard to fault for injury cupational compensation laws. (6) INSURER.—The term ‘‘insurer’’ means— resulting from a motor vehicle accident; and (22) UNINSURED MOTORIST.—The term ‘‘un- (A) any person who is engaged in the busi- (B) a waiver of tort claims in accordance insured motorist’’ means the owner of a ness of issuing or delivering motor vehicle with this Act. motor vehicle, including the resident rel- insurance policies (including an insurance (15) REPLACEMENT SERVICES LOSS.—The atives or dependents of the owner, who is un- agent); or term ‘‘replacement services loss’’ means ex- insured under either the personal protection (B) any person who is self-insured within penses reasonably incurred in obtaining ordi- system or the tort maintenance system de- the meaning of applicable State law. nary and necessary services from other per- scribed in section 5(a)— (7) INTENTIONAL MISCONDUCT.— sons who are not members of the injured per- (A) at the limits prescribed by the applica- (A) IN GENERAL.—Except as provided in son’s household, in lieu of the services the ble State financial responsibility law; or subparagraph (B), the term ‘‘intentional mis- injured person would have performed for the (B) an amount prescribed under section conduct’’ means conduct— benefit of the household. 5(b)(1)(A). (i) with respect to which harm is inten- (16) RESIDENT RELATIVE OR DEPENDENT.— SEC. 5. AUTO CHOICE INSURANCE SYSTEM. tionally caused or attempted to be caused by The term ‘‘resident relative or dependent’’ (a) OPERATION OF THE RIGHT TO CHOOSE.— a person who acts or fails to act for the pur- means a person who— Under this Act, a person shall have the right pose of causing harm, or with knowledge (A) is related to the owner of a motor vehi- to choose between the following insurance that harm is substantially certain to result cle by blood, marriage, adoption, or other- systems: from that action or failure to act; and wise (including a dependent receiving finan- (1) PERSONAL PROTECTION SYSTEM.—A per- (ii) that causes or substantially contrib- cial services or support from such owner); son may choose insurance under a system utes to the harm that is the subject of a and that provides for personal protection insur- claim. (B)(i) resides in the same household as the ance for that person and any resident rel- (B) CLARIFICATION.—For purposes of this owner of the motor vehicle at the time of the ative or dependent of that person. paragraph, a person does not intentionally accident; or (2) TORT MAINTENANCE SYSTEM.—A person cause or attempt to cause harm— (ii) usually makes a home in the same fam- may choose insurance under a system that (i) solely because that person acts or fails ily unit as that owner, even though that per- provides for the form of motor vehicle insur- to act with the understanding that the ac- son may temporarily live elsewhere. ance (including tort liability, no-fault, add- tion or failure to act creates a grave risk of (17) STATE.—The term ‘‘State’’ means any on, or uninsured motor vehicle insurance) causing harm; or State of the United States, the District of that is otherwise required in the State in (ii) if the act or omission by that person Columbia, the Commonwealth of Puerto which the person is insured. causing bodily harm is for the purpose of Rico, Guam, the United States Virgin Is- (b) PERSONAL PROTECTION SYSTEM.— averting bodily harm to that person or an- lands, American Samoa, the Commonwealth (1) MINIMUM POLICY REQUIREMENTS.—In other person. of the Northern Mariana Islands, the Trust order for a personal protection insurance (8) MOTOR VEHICLE.—The term ‘‘motor ve- Territories of the Pacific Islands, and any policy to be covered by this Act, a motor ve- hicle’’ means a vehicle of any kind required other territory or possession of the United hicle insurance policy issued by an insurer to be registered under the provisions of the States. shall, at a minimum— applicable State law relating to motor vehi- (18) TORT LIABILITY.—The term ‘‘tort liabil- (A) provide personal protection insurance cles. ity’’ means the legal obligation to pay dam- coverage— (9) NO-FAULT MOTOR VEHICLE LAW.—The ages for an injury adjudged to have been (i) with no per accident limit; and term ‘‘no-fault motor vehicle law’’ means a committed by a tort-feasor. (ii) in coverage amounts equal to the State law that provides that— (19) TORT LIABILITY INSURANCE.—The term greater of— (A) persons injured in motor vehicle acci- ‘‘tort liability insurance’’ means a contract (I) the minimum per person limits of liabil- dents are paid compensation without regard of insurance under which an insurer agrees ity insurance for personal injury under the to fault for their economic loss that results to pay, on behalf of an insured, damages that applicable State financial responsibility law; from injury; and the insured is obligated to pay to a third per- or (B) in return for the payment referred to in son because of the liability of the insured to (II) in a State covered by a no-fault motor subparagraph (A), claims based on fault in- that person. vehicle insurance law, the minimum level of cluding claims for noneconomic loss, are (20) TORT MAINTENANCE COVERAGE.— insurance required for no-fault benefits; limited to a defined extent. (A) IN GENERAL.—The term ‘‘tort mainte- (B) contain provisions for a waiver of cer- (10) NONECONOMIC LOSS.—The term ‘‘non- nance coverage’’ means insurance coverage tain tort rights in accordance with this Act; economic loss’’ means subjective, nonmone- under which a person described in subpara- and tary losses including pain, suffering, incon- graph (B), if involved in an accident with a (C) contain provisions under the applicable venience, mental suffering, emotional dis- person covered by personal protection insur- State financial responsibility law relating to tress, loss of society and companionship, loss ance, retains a right to claim for injury liability for— of consortium, hedonic damages, injury to based on fault for economic and non- (i) property damage; and reputation, and humiliation. economic losses under applicable State law, (ii) bodily injury to protect third parties (11) OCCUPY.—The term ‘‘occupy’’ means, without modification by any other provision whose rights to recover both economic and with respect to the operation, maintenance, of this Act. noneconomic loss are not affected by the im- or use of a motor vehicle, to be in or on a (B) TORT MAINTENANCE INSURED.—A person munities provided under this Act for those motor vehicle or to be engaged in the imme- described in this subparagraph is a person persons choosing personal protection insur- diate act of entering into or alighting from a covered by the form of insurance described in ance coverage. motor vehicle before or after its use for section 5(a)(2). (2) SUPERSEDING PROVISION.—This Act su- transportation. (C) RESPONSIBILITY FOR PAYMENT.—The re- persedes a State law to the extent that, with (12) OPERATION, MAINTENANCE, OR USE OF A sponsibility for payment for any claim under respect to the issuance of a personal protec- MOTOR VEHICLE.— subparagraph (A) is assumed by the insurer tion insurance policy, the State law— (A) IN GENERAL.—The term ‘‘operation, of the person with tort maintenance cov- (A) would otherwise bar a provision that maintenance, or use of a motor vehicle’’ erage to the extent of such coverage. provides for the personal protection author- means occupying a motor vehicle. (21) UNCOMPENSATED ECONOMIC LOSS.— izations and accompanying immunities set (B) EXCLUSIONS.—The term ‘‘operation, (A) IN GENERAL.—The term ‘‘uncompen- forth in this Act; or maintenance, or use of a motor vehicle’’ does sated economic loss’’ means economic loss (B) is otherwise inconsistent with the re- not include— payable based on fault. quirements of this Act. S3432 CONGRESSIONAL RECORD — SENATE April 22, 1997

(3) PRIMACY OF PAYMENT.— shall include tort maintenance coverage at a (2) RIGHT TO SUE FOR UNCOMPENSATED ECO- (A) IN GENERAL.—Personal protection in- level that is at least equivalent to the level NOMIC LOSS BASED ON FAULT.—If a person who surance benefits shall be reduced by an of insurance required under the applicable chooses personal protection insurance is— amount equal to any benefits provided or re- State financial responsibility law for bodily (A) involved in an accident with a person quired to be provided under an applicable injury liability. insured under either the personal protection Federal or State law for workers’ compensa- (2) ADMINISTRATION OF TORT MAINTENANCE system or tort maintenance system under tion or any State-required nonoccupational COVERAGE BENEFITS.—To the extent consist- section 5(a); and disability insurance. ent with this Act, any applicable provision of (B) sustains uncompensated economic loss, (B) REIMBURSEMENT OF PAYORS.— a State law governing the administration of that person shall have the right to claim (i) IN GENERAL.—A personal protection in- payment of benefits under uninsured or against the other person involved in the ac- surer may take appropriate measures to en- underinsured motorist coverage applies to cident for that loss based on fault. sure that any person otherwise eligible for the payment of benefits under tort mainte- (c) ACCIDENTS INVOLVING PERSONS WITH personal protection benefits who has been nance coverage under section 5(c). PERSONAL PROTECTION INSURANCE AND PER- paid or is being paid for losses payable by (d) EFFECT OF CHOICE ON RESIDENT REL- SONS WHO ARE UNLAWFULLY UNINSURED.— personal protection insurance from a source ATIVES AND DEPENDENTS.— (1) IN GENERAL.—A person covered by per- other than the applicable personal protec- (1) IN GENERAL.—Except as provided in sonal protection insurance who is involved in tion insurer shall not receive multiple pay- paragraph (2), a person who chooses either an accident with an uninsured motorist ment for those losses. personal protection insurance or tort main- shall— (ii) ACCRUAL OF RIGHTS.—Any right to pay- tenance coverage also binds the resident rel- (A) be compensated under that insured per- ment for losses referred to in clause (i) from atives and dependents of that person. son’s insurance policy for economic loss a personal protection insurer accrues only to (2) EXCEPTION.—An adult resident relative without regard to fault; and that payor. Payments by a payor referred to or a dependent of a person described in para- (B) have the right to claim against the un- in clause (i) shall not be counted against per- graph (1) may select the form of insurance insured motorist for economic loss and for sonal protection limits for personal protec- that that person does not select if the adult noneconomic loss based on fault. tion insurance until such time as the payor relative makes that selection expressly in (2) FORFEITURE OF RIGHTS.—An uninsured is reimbursed under this subparagraph. writing. motorist forfeits the right to claim against a (4) PROMPT AND PERIODIC PAYMENT.— (3) IMPLIED CONSENT.—In any case in which motorist who has chosen personal protection (A) IN GENERAL.—A personal protection in- the resident relative or dependent is injured insurance for— surer may pay personal protection benefits in a motor vehicle accident, the coverage of (A) noneconomic loss; and periodically as losses accrue. such person shall be the same as the person (B) economic loss in an amount up to the (B) LATE PAYMENT.—Unless the treatment described in paragraph (1). amount of per-person bodily injury limits or expenses related to the treatment are in (4) TERMS AND CONDITIONS.—Insurers may mandated by the applicable State financial reasonable dispute, a personal protection in- specify reasonable terms and conditions gov- responsibility law. surer who does not pay a claim for economic erning the commencement, duration, and ap- (d) ACCIDENTS INVOLVING MOTORISTS UNDER loss covered by a personal protection insur- plication of the chosen coverage depending THE INFLUENCE OF ALCOHOL OR ILLEGAL ance policy issued under this Act within 30 on the number of motor vehicles and owners DRUGS OR ENGAGING IN INTENTIONAL MIS- days after payment is due, shall pay— thereof in a household. CONDUCT.—A person who is insured under (i) the loss compounded at a rate of 24 per- (e) RULES TO ENCOURAGE UNIFORMITY OF personal protection insurance shall have the cent per annum, as liquidated damages and CHOICE.—In order to minimize conflict be- right to claim, and be subject to a claim, in lieu of any penalty or exemplary damages; tween the 2 options described in subsection for— and (d), insurers may maintain and apply under- (1) driving under the influence of alcohol or writing rules that encourage uniformity (ii) a reasonable attorney’s fee calculated illegal drugs (as those terms are defined within a household. on the basis of the value of the attorney’s ef- under applicable State law); or (f) FAILURE TO ELECT TYPE OF INSUR- forts as reflected in payment to the attor- (2) intentional misconduct. ANCE.— ney’s client. (e) PRIORITY OF BENEFITS.—A person who is (1) IN GENERAL.—Any person who fails to (C) ADMINISTRATION OF PERSONAL PROTEC- insured under the personal protection sys- elect a type of insurance under this section TION BENEFITS.—To the extent consistent tem or tort maintenance system under sec- shall be deemed to have elected insurance with this Act, any applicable provision of a tion 5(a) may only claim benefits under such under the tort maintenance system in effect State no-fault motor vehicle law or add-on coverage up to the limits selected by or on in that State. law governing the administration of pay- behalf of such person in the following prior- (2) RULE OF CONSTRUCTION.—This sub- ment of benefits without reference to fault ity: section shall not be construed to prevent a shall apply to the payment of benefits under (1) The coverage under which the injured State from enacting a law that deems a per- personal protection insurance under this person was an insured at the time of the ac- subsection. son who fails to elect a type of insurance under this section to have elected insurance cident. (5) MOTOR VEHICLES WITH FEWER THAN 4 under the personal protection system. (2) The coverage of a motor vehicle in- LOAD-BEARING WHEELS.—A personal protec- (g) CONSUMER INFORMATION PROGRAM.—The volved in the accident, if the person injured tion insurer may offer, but shall not require, State official charged with jurisdiction over was an occupant of, or was struck as a pedes- personal protection coverage of any motor insurance rates for motor vehicles shall es- trian by, such motor vehicle at the time of vehicle that has fewer than 4 load-bearing tablish and maintain a program designed to the accident, except that such person shall wheels, not including the wheels of an at- ensure that consumers are adequately in- not recover under the coverage of both para- tachment to the motor vehicle. formed about— graph (1) and this paragraph. (6) AUTHORIZATIONS FOR PERSONAL PROTEC- (1) the comparative cost of insurance under (f) SUBROGATION RIGHTS.—A personal pro- TION INSURERS.—A personal protection in- the personal protection system and the tort tection insurer is subrogated, to the extent surer may write personal protection cov- maintenance system; and of the obligations of that insurer, to all of erage— (2) the benefits, rights, and obligations of the rights of the persons insured with per- (A)(i) without any deductible; or insurers and insureds under each system. sonal protection insurance issued by the in- (ii) subject to a reasonable deductible, ap- SEC. 6. SOURCE OF COMPENSATION IN CASES OF surer with respect to an accident caused in plicable in an amount not to exceed $1,000 ACCIDENTAL INJURY. whole or in part, as determined by applicable per person per accident; (a) ACCIDENTS INVOLVING PERSONS CHOOS- State law, by— (B) with an exclusion of coverage for per- ING THE TORT MAINTENANCE SYSTEM.—A per- (1) the negligence of an uninsured motor- sons whose losses are caused by driving son described in section 5(a)(2) who is in- ist; under the influence of alcohol or illegal volved in an accident with another person (2) operating a motor vehicle under the in- drugs; shall be subject to applicable tort law for in- fluence of alcohol or illegal drugs; (C) at appropriately reduced premium jury except that, based on fault, that per- (3) intentional misconduct; or rates, deductibles and exclusions reasonably son— (4) any other person who is not affected by related to health, disability, and accident (1) may claim against any person covered the limitations on tort rights and liabilities coverage on an insured person; and by personal protection insurance only for un- under this Act. (D) the deductibles and exclusions de- compensated economic loss; and (g) RIGHTS OF LAWFULLY UNINSURED PER- scribed in subparagraphs (A) and (C) shall (2) may be claimed against by a person cov- SONS.—Nothing in this Act shall be con- apply only to— ered by personal protection insurance only strued to affect the tort rights of any person (i) the person named in the applicable in- for uncompensated economic loss. lawfully uninsured under the terms of an ap- surance policy; and (b) ACCIDENTS INVOLVING PERSONS WITH plicable State law for insurance under either (ii) the resident relatives or dependents of PERSONAL PROTECTION INSURANCE.— the personal protection system or tort main- the person described in clause (i). (1) RIGHT TO RECOVER ECONOMIC LOSS.—A tenance system under section 5(a). (c) TORT MAINTENANCE SYSTEM.— person covered by a personal protection in- (h) RIGHTS OF PERSONS OCCUPYING MOTOR (1) REQUIRED TORT MAINTENANCE COV- surance policy who is injured in an accident VEHICLES WITH FEWER THAN 4 LOAD-BEARING ERAGE.—The coverage for a person who is compensated under that policy only for WHEELS.—Nothing in this Act shall be con- chooses insurance under subsection (a)(2) economic loss, without regard to fault. strued to affect the tort rights of a person April 22, 1997 CONGRESSIONAL RECORD — SENATE S3433 who occupies a motor vehicle with fewer (A) allows litigation by tort maintenance the introduction and passage of bold, nec- than 4 load-bearing wheels or an attachment insureds against personal protection essary federal legislation reforming auto in- thereto, unless an applicable contract for insureds for economic and noneconomic loss; surance and tort law in America. personal protection insurance under which and The introduction of auto-choice legislation that person is insured specifies otherwise. (B) assures through a reallocation device marks a milestone in the nation’s response The preceding sentence applies without re- that the advantage of tort claim waivers by to motorist demands for fair, equitable and gard to whether the person is otherwise le- personal protection insureds against tort cost-effective insurance coverage. Millions of gally insured for personal protection insur- maintenance insureds is reflected in the pre- drivers are presently paying excessive insur- ance or tort maintenance coverage. miums of personal protection insureds; or ance premiums because of inflated claims (i) RENEWAL OR CANCELLATION.—An insurer (12) to alter or diminish the authority or and huge pain and suffering awards. Under shall not cancel, fail to renew, or increase obligation of the Federal courts to construe this legislation proposed by Senators the premium of a person insured by the in- the terms of this Act. Lieberman, McConnell and Moynihan, among others, the nation as a whole stands surer solely because that insured person or SEC. 8. APPLICABILITY TO STATES; CHOICE OF any other injured person made a claim— LAW; AND JURISDICTION. to save $45 billion in insurance premiums this year alone, with the average driver na- (1) for personal protection insurance bene- (a) ELECTION OF NONAPPLICABILITY BY tionwide saving $243 per year. That amounts fits; or STATES.—This Act shall not apply with re- to the equivalent of a $243 tax cut without (2) if there is no basis for ascribing fault to spect to a State if such State enacts a stat- any corresponding cut in services. The newly the insured or one for whom the insured is ute that— released report by the Joint Economic Com- vicariously liable, for tort maintenance cov- (1) cites the authority of this subsection; mittee of the United States Congress on erage. (2) declares the election of such State that ‘‘The Benefits and Savings of Auto-Choice’’ (j) IMMUNITY.—Unless an insurer or an in- this Act shall not apply; and estimates that with auto choice, New York surance agent willfully misrepresents the (3) contains no other provision. City motorists will see an average decrease available choices or fraudulently induces the (b) NONAPPLICABILITY BASED ON STATE of $417 per driver per year. election of one motor vehicle insurance sys- FINDING.— The genius of this bill is the unbundling of tem described in paragraph (1) over the (1) IN GENERAL.—This Act shall not apply pain and suffering coverage from insurance other, no insurer or insurance agent, em- with respect to a State, if— premiums and the switch to first party cov- ployee of such insurer or agent, insurance (A) the State official charged with jurisdic- erage—similar to no-fault coverage. More- producer representing a motor vehicle in- tion over insurance rates for motor vehicles over, people who want coverage for pain and surer, automobile residual market plan, or makes a finding that the statewide average suffering—and are willing to pay for it—can attorney licensed to practice law within a motor vehicle premiums for bodily injury in- obtain it. But, they will not recover pain and State, shall be liable in an action for dam- surance in effect immediately before the ef- suffering damages at the expense of third ages on account of— fective date of this Act will not be reduced parties, or at the expense of our court sys- (1) an election of— by an average of at least 30 percent for per- tem where sympathetic juries often grant (A) the tort maintenance system under sons choosing personal protection insurance windfalls for being injured in the form of section 5(a); or (without including in the calculation for per- subjective non-economic damages. There is (B) the personal protection system under sonal protection insureds any cost for unin- simply no justification for many of the enor- section 5(a); or sured, underinsured, or medical payments mous awards to the injured who—though (2) a failure to make a required election. coverages); rightfully compensated for objective pecu- SEC. 7. RULES OF CONSTRUCTION. (B) a finding described under subparagraph niary loss—are rewarded for unsubstantiated Nothing in this Act shall be construed— (A) is supported by evidence adduced in a pain and suffering damages, often with no re- (1) to waive or affect any defense of sov- public hearing and reviewable under the ap- gard for the relationship to the fault of the ereign immunity asserted by any State plicable State administrative procedure law; parties concerned. under any law or by the United States; and Over the years, New York City has risked (2) to affect the awarding of punitive dam- (C) a finding described under subparagraph losing the valuable civic contributions of ages under any State law; (A) and any review of such finding under sub- many of its residents to the suburbs where (3) to preempt State choice-of-law rules paragraph (B) occurs not later than 90 days insurance rates are usually more affordable. with respect to claims brought by a foreign after the date of enactment of this Act. Coupled with the reduction in crime our City nation or a citizen of a foreign nation; (2) COMPARISON OF BODILY INJURY PRE- has experienced, reduced insurance pre- (4) to affect the right of any court to trans- MIUMS.—For purposes of making a compari- miums would provide added incentive for fer venue, to apply the law of a foreign na- son under paragraph (1)(A) of premiums for City residents to keep their homes and their tion, or to dismiss a claim of a foreign na- personal protection insurance with preexist- businesses in the City. These reforms come tion or of a citizen of a foreign nation on the ing premiums for bodily injury insurance (in at no cost to City residents nor would they ground of inconvenient forum; effect immediately before the date of enact- diminish governmental services. Motorists (5) subject to paragraph (1), to create or ment of this Act), the preexisting bodily in- in municipalities and urban centers across vest jurisdiction in the district courts of the jury insurance premiums shall include pre- the land stand to reap these enormous sav- United States over any motor vehicle acci- miums for— ings. dent liability or damages action subject to (A) bodily injury liability, uninsured and When we value the productivity of our urban residents and demonstrate our respect this Act which is not otherwise properly in underinsured motorists’ liability, and medi- for their contributions, we improve the qual- the United States District Court; cal payments coverage; and ity of life for the City as a whole and ensure (6) to prevent insurers and insureds from (B) if applicable, no-fault benefits under a its prosperity for years to come. Auto-choice contracting to limit recovery for lost wages no-fault motor vehicle law or add-on law. assists in doing precisely that. It dem- and income under personal protection cov- (c) CHOICE OF LAW.—In disputes between onstrates our leaders’ respect for the eco- erage in such manner that only 60 percent or citizens of States that elect nonapplicability nomic well being of even the most hard more of lost wages or income is covered; under subsection (a) and citizens of States pressed motorist. (7) to prevent an insurer from contracting that do not make such an election, ordinary choice of law principles shall apply. But equally as important, the bill would with personal protection insureds, as per- help restore a little faith in our courts and mitted by applicable State law, to have sub- (d) JURISDICTION.—This Act shall not con- fer jurisdiction on the district courts of the judicial system, which have been increas- mitted to arbitration any dispute with re- ingly plagued with criticism by, and stands spect to payment of personal protection ben- United States under section 1331 or 1337 of title 28, United States Code. to lose the confidence of, ordinary citizens. efits; When people see some lawyers running from (8) to relieve a motorist of the obligations (e) STATUTES OF LIMITATIONS.—Nothing in this Act shall supersede an applicable State the hospital to the court to the insurance imposed by applicable State law to purchase company, they understand why their pre- tort liability insurance for bodily injury to law that imposes a statute of limitations for claims related to an injury caused by an ac- miums are so high. Plaintiffs receive barely protect third parties who are not affected by one-half of all settlements after lawyers, ex- the immunities under this Act; cident, except that such statute shall be tolled during the period wherein any per- perts and court fees are paid. Under existing (9) to preclude a State from enacting, for law, plaintiff attorneys have tremendous in- all motor vehicle accident cases including sonal protection or tort maintenance bene- fits are paid. centive to shoot for the gold—that giant cases covered by this Act, a minimum dollar pain and suffering cash cow—paid for by the value for defined classes of cases involving SEC. 9. EFFECTIVE DATE. American motorist through excessive insur- death or serious bodily injury; This Act shall take effect 90 days after the ance premiums. (10) to preclude a State from providing date of enactment of this Act. People wonder: why can’t this process be that forms of insurance other than those controlled? Today, we tell these people that listed in section 5(b)(3) shall be subtracted STATEMENT OF MAYOR RUDOLPH W. GIULIANI they, not special interests, are in charge. We from personal protection insurance benefits Today, members of Congress and other assure them that money which should not be otherwise payable for injury; leaders from across the political spectrum, unjustly taken from them, will not be. We (11) to preclude a State from enacting a representing diverse populations and con- give them the chance to determine for them- law that— stituencies, unite in expressing support for selves how much insurance coverage is S3434 CONGRESSIONAL RECORD — SENATE April 22, 1997 enough coverage for them and their families. The sponsors and promoters of the com- now takes an average of 30.1 months to ob- And, keep in mind, under auto-choice, all mon sense Auto Choice Reform Act will have tain a jury trial in the metropolitan areas of motorists obtain coverage for objective eco- to overcome the easy access special interests the nation. In Westchester and Kings coun- nomic loss, such as medical bills or lost have to our country’s decision makers if this ties, it is 50 months plus. In Chicago it is 60 wages. $44 billion per year cost savings for motor- months plus. The bill is sensible and fair, and I respect- ists in this country is to be achieved. A legal expert in the field, James Marshall, fully urge Congress to pass this important Mr. MOYNIHAN. Mr. President, I am has argued that persons involved in or wit- legislation. pleased to be an original cosponsor of nessing an automobile accident are not real- the Auto Choice Reform Act of 1997, a ly capable of reconstructing it in court. The NORTHEASTERN UNIVERSITY, COL- event is too complex, and levels of percep- LEGE OF ARTS AND SCIENCES, DE- bill submitted by my distinguished col- tion too low. (How would a witness to a PARTMENT OF POLITICAL SCIENCE, league, Senator MCCONNELL. shooting respond to a question as to which April 17, 1997. This legislation is designed to create way the bullet was traveling?) A fortiori the I enthusiastically endorse the ‘‘choice’’ a new option in auto insurance for con- attempt to reconstruct such an episode auto insurance bill you are jointly sponsor- sumers who would prefer a system that three, four, or five years afterward is nigh ing. Your action is an important act of bi- guarantees quick and complete com- impossible. Thus the question must be asked partisan leadership on an issue that signifi- pensation. This alternative system whether a social concern of the highest cantly affects all Americans. order—the administration of justice—is not The issue you address has been a great con- would change most insurance coverage to a first-party system from a third- being sacrificed to one of a much lower prior- cern of mine throughout my political career ity, the reenactment of traffic accidents. (As ever since I sponsored the first no-fault auto party system and it would separate indeed the whole cops-and-robbers, shoot- insurance bill in the nation. economic and noneconomic compensa- ’em-up paradigm for managing the road sys- Given the horrendous high costs of auto in- tion by unbundling the premium. tem must be questioned. It was not just surance, coupled with its long delays, high Therefore, drivers would be allowed to chance that the riots in Watts and Newark overhead, and rank unfairness when it comes insure themselves for only economic began with police arresting a motorist.) to payment, your ‘‘choice’’ reform takes the loss or for both economic and non- There is little likelihood, however, that sensible approach of allowing consumes to greater efforts toward the administration of choose how to insure themselves. In other economic loss. In the 1950’s, I first became inter- justice—more judges, or whatever—would words, your reform trust the American peo- change matters. A New York survey has ple to decide for themselves whether to ested in the issue of auto insurance re- shown that of 220,000 annual claims of vic- spend their money on ‘‘pain and suffering’’ form as a member of New York Gov. tims seeking to recover damages caused by coverage of food, medicine, life insurance or Averell Harriman’s Traffic Safety Pol- another’s fault, only 7,000 reach trial, and any other expenditure they deem more valu- icy Coordinating Committee. At that 2,500 reach verdict. Given the number and able for themselves and their families. time, while working on auto safety is- rate of accidents in the existing transport The bill is a particularly important to the sues, I became convinced that as the system, a kind of Malthusian principle gov- people who live in American cities where erns the courts: the number of litigated premiums are the highest. It is no surprise number of automobiles increased, the number of automobile accidents would, cases will automatically increase to use up that the cost studies done by the Joint Eco- all the available judicial facilities and main- nomic Committee indicate that while your inexorably, also increase. And the tain a permanent backlog. At a time when reform will make stunning cost savings problem with the current state of the issues of justice, violence, and civic peace available to all American consumers, its insurance system begins right there. A are of immediate and pressing concern, to largest benefits will go to the low income driver buys protection against the risk devote the better part of the judicial (and an drivers living in urban areas. that he will negligently cause an acci- enormous portion of the legal) resources of The bill will also help resolve the country’s dent that will injure another person. If the nation to managing the road system is problems with runaway health costs. By al- the kind of incompetence that societies end lowing consumer to remove themselves from that should occur, the driver’s insur- ance company is responsible for com- up paying for. a system whose perverse incentives trigger Only one adult response is possible: the the cost of health care costs, your reform pensating the victim. But this con- present automobile insurance system has to will lower the cost of health care for all tradicts the very nature of traffic acci- change . . . Americans while ensuring that health care dents. If they were orderly events, in In that article, 30 years ago, I pro- expenditure are more clearly targeted to which cause and effect could be clearly health care needs. posed two alternatives to traditional I look forward to assisting you to the full- discerned and ascribed, then the tort coverage as solutions for the prob- est possible degree as you exercise your vi- present insurance system could work. lem. One was to have the Federal Gov- tally need leadership on behalf of America’s But accidents are nothing of the sort. ernment provide insurance—financed consumers. It is often very difficult to determine by a penny or so increases in the Fed- MICHAEL S. DUKAKIS. fault in traffic accidents. It is the role eral gasoline tax—for injuries and eco- of the liable party’s insurance company nomic losses, with claims being ad- STATEMENT OF REFORM PARTY CHAIRMAN to argue that the plaintiff’s injuries— RUSSELL J. VERNEY justed in a fashion similar to the work- no matter how hideous—are not as se- ers’ compensation system. The second Only on rare occasions does Congress have rious as he or she claims. These cases the opportunity to stimulate our national alternative was along the lines of the economy without adding to the $5.2 trillion overwhelm the court system and in so current legislation. For the past 35 debt burden this generation is leaving to our doing, they prevent real justice from years, Jeffrey O’Connell, the Samuel children and grandchildren. occurring. Justice is possible only McCoy Professor of Law at the Univer- Auto Choice Reform is one of those rare when it is done quickly and reflects the sity of Virginia, has been figuring out opportunities. It allows the owners of auto- sense of what is right and what is mobiles the choice of the level of insurance the permutations of this second type of wrong, as I wrote in ‘‘Next: A New reform. It is his recommendations that coverage they wish to provide for their own Auto Insurance Policy,’’ which ap- losses. protects an injured or harmed per- shape today’s legislation. son’s right to collect for their losses and can peared in the August 27, 1967 New York Over 16 million motor vehicle acci- cut the average automobile owner’s annual Times magazine: dents occur every year. The average insurance rate by an average of $243 per year. The most serious secondary effect of the amount of time it takes to receive Auto Choice Reform is an idea whose time existing insurance system, however, lies in compensation for losses in a tort case has come. Unfortunately, it will also stimu- its impact on the courts. This process begins late a new furious round of campaign (invest- with the use of the police to enforce the traf- is over 18 months. Minimally injured ments) contributions by special interests fic laws, as a result of which the incidence of parties are overcompensated while vic- who benefit from the current high cost of arrest by armed police in the United States tims of serious injuries often fail to re- auto insurance rates and protracted litiga- is the highest of any society in history. The ceive full restitution. According to a tion associated with automobile insurance jam starts there, and is followed by a flood of study by the RAND Institute, people and accidents injuries. accident litigation cases that derive, in part with economic losses of under $5,000 re- As list of top donors to political parities at least, from the original criminal case. We ceive over two to three times that and candidates during 1995 and 1996, pub- have now reached the point where accident amount in compensation. People with lished by Mother Jones Magazine listed nu- litigation accounts for an estimated 65 to 80 merous individuals from the insurance indus- percent of the total civil court cases tried in $25,000 to $100,000 worth of losses, how- try and trial lawyers who have established the United States. This in turn has brought ever, currently are compensated for their right of access to our top political lead- us to the point where delays in justice here just over one-half of their losses, on av- ers in this country. are the longest of any democracy on earth. It erage. The very seriously injured— April 22, 1997 CONGRESSIONAL RECORD — SENATE S3435 those with economic losses of over for example—in the range of $25,000 to Here’s how our plan would work: All $100,000—receive compensation worth $100,000 currently are compensated for drivers would be required to purchase a only 9 percent of their damages, on av- just over one-half of their losses on av- certain minimum level of insurance, erage. The current system does not erage. The very seriously injured— but they would get to choose the type work. those with economic losses of over of coverage they want. Those drivers This legislation is called Auto Choice $100,000—receive compensation worth who value immediate compensation for because drivers would have a choice be- just 9 percent of those damages on av- their injuries and lower premiums tween this new system, called personal erage. Much of this shortfall is due to would be able to purchase what we call protection insurance [PPI], or they the high transaction costs—the 33-per- personal protection insurance. If the could remain insured under the system cent attorneys’ fee regularly taken out driver with that type of coverage is in- of a plaintiff’s recovery, for one thing— currently operating in their State—the jured in an accident, he or she would associated with the current system. tort maintenance system [TM]. For get immediate compensation for all people who choose to insure themselves These statistics show that our auto insurance and compensation laws vio- economic losses—things like lost for only economic damages, this is wages, medical bills and attorneys akin to a $243 tax cut, according to a late the cardinal rule I think those of fees—up to the limits of his or her pol- recent report by the Joint Economic us in the business legislating have a icy, without regard to who was at fault Committee, only without any impact duty to follow: to draft our laws to en- in the accident. on the Federal budget. Our legislation courage people to minimize their dis- would ensure more complete and more putes, and to encourage those who do If their economic losses exceeded rapid recovery of losses for the people have disputes to resolve them as effi- those policy limits, the injured party who incur them, and it would reduce ciently, as economically, and as quick- could sue the other driver for the extra ly as possible. This is particularly true the number of cases that presently economic loss on a fault basis. The when we are dealing with laws impact- overwhelm the courts. only thing the plaintiff could not do is I thank my friend from Kentucky for ing on people who are physically in- sue the other driver for noneconomic inviting me to cosponsor this legisla- jured, because injured people simply— losses, the so-called pain and suffering tion, and hope other Senators agree and literally—cannot afford to wait the damages. years it often takes for a lawsuit to with us that the time for auto choice Those drivers who did not want to has come. wind its way through our legal system. Mr. LIEBERMAN. Mr. President, I The laws governing our auto accident give up the ability to collect pain and suffering damages could choose a dif- am here today with Senators MCCON- and insurance system do not now meet ferent option, called tort maintenance NELL, MOYNIHAN, GORTON, and GRAMS those simple criteria. They instead re- to introduce the Auto Choice Reform quire consumers to pay extraordinarily coverage. Drivers with that type of pol- Act of 1997. If enacted, this bill would high premiums to purchase auto insur- icy would be able to cover themselves save American consumers tens of bil- ance. That auto insurance, in turn and for whatever level of economic and lions of dollars, while at the same time as a result of our broken legal system, noneconomic damages they want, and producing an auto insurance system does not bring seriously injured people they would then be able to collect that operates more efficiently and either speedy or full compensation for those damages, also from their own in- promises drivers better and quicker their injuries. surance company, after proving fault. compensation. My colleagues and I set out to As I mentioned earlier, the savings America’s drivers are plagued today rethink the legal framework governing from this new Choice system would be by an auto accident insurance and our car insurance and compensation dramatic. According to a newly re- compensation system that is too ex- system. We asked ourselves whether we leased report from the Joint Economic pensive and that does not work. Each could write a law that would both Committee, if all American drivers of us currently pays an average of $785 lower premiums and better compensate opted for personal protection insur- annually for our auto insurance per people for injuries suffered in car acci- ance, they would save an average of car. This is an extraordinarily large dents. Why, we wondered, should peo- $243 annually on their auto insurance sum, and one that is particularly dif- ple hurt in car crashes—people who premiums. Drivers in my home State of have bought and paid for insurance ficult for people of modest means—and Connecticut would see even better sav- policies—not be able to receive com- almost impossible for poor people—to ings, putting an additional $383 per afford. A study of Maricopa County, AZ pensation for their injuries unless they find someone else who was at fault, sue year into their pockets. All told, the drives this point home. That study American economy could save up to $45 found that families living below 50 per- them, engage in potentially years of litigation, and collect from that other billion each and every year under our cent of the poverty line spend nearly proposal. one-third of their household income on person? Why, we asked, couldn’t auto premiums when they purchase auto in- insurance instead be more like health Our Auto Choice plan, I think, both surance. and homeowner insurance, where peo- serves the reform goals I discussed Perhaps those costs would be worth ple know when they buy their policies above and incorporates all of the les- it if they meant that people injured in that they will be compensated imme- sons we learned during our past experi- car accidents were fully compensated diately for any covered injury, regard- ences with no-fault laws. It ensures for their injuries. But under our cur- less of who caused the injury and with- that most injured people would be com- rent tort system, that often is not the out having to find and pay a lawyer pensated immediately and that we all case, particularly for people who are and often suffer through years of liti- can purchase auto insurance at a rea- seriously injured. Because of the need gation? sonable rate. As I said at the outset, we The answer we came up with was as legislators do our best when we to prove fault and the ability to receive that there is no reason not to change make sure that our legal system mini- compensation only through someone our auto insurance and compensation mizes the potential for disputes in soci- else’s insurance policy, some injured laws to address these problems. Our drivers—like those in one car accidents Auto Choice proposal would address ety and facilitates the resolution of or those who are found to have been at these problems by introducing reason those disputes that exist. The Auto fault themselves—are left without any into our auto insurance and accident Choice law would do exactly that. It compensation at all. Others must en- laws. The bill would produce a system would ensure that something tens of dure years of litigation before receiv- that would guarantee immediate com- thousands of us now have disputes ing any compensation for their inju- pensation to injured people. At the about—who should compensate whom ries. In the end, people who suffer mini- same time, it would bring tremendous for car accidents—no longer would be mal injuries in auto accidents gen- savings to the system—up to $45 billion the subject of disputes because every- erally end up overcompensated, while annually according to a recent study. one who is injured will know from the victims of serious injuries often fail to And, it would do so, not by forcing peo- outset that they will be compensated, receive full restitution. According to a ple to do something they do not want they will know by whom they will be study by Rand’s Institute for Civil Jus- to do, but by giving them the choice— compensated, and they will know they tice, people who suffer economic the right to determine for themselves will be compensated without having to losses—lost wages and medical bills, what is in their best interests. sue someone else first. Mr. President, S3436 CONGRESSIONAL RECORD — SENATE April 22, 1997 this bill would be a boon to the Amer- in an editorial that predicted that 22,000 manufacturers of clothing and ican driver and to the American econ- Auto Choice ‘‘would give families the accessories in the United States, the omy. I look forward to working with option of forgoing suits for non-mone- Department of Labor finds that more my colleagues to see it enacted into tary losses in exchange for quick and than half are paying wages substan- law. complete reimbursement for every tially below the minimum wage, and a Mr. GORTON. Mr. President, I am blow to their pocketbook. Everyone third are exposing their workers to se- pleased to join Senators MCCONNELL, would win—except the lawyers.’’ Mr. rious safety and health risks. GRAMS, MOYNIHAN, and LIEBERMAN in President, I hope the Senate will act Sweatshops run by unscrupulous con- cosponsoring the Auto Choice Reform promptly to pass this bill. tractors have a long and sordid history Act, a measure that offers consumers a in this country. In 1911, a tragic fire at quick-pay, low-cost policy to replace By Mr. KENNEDY: the Triangle Shirtwaist Co. on Lower their current policies—policies that are S. 626. A bill to amend the Fair Labor East Side in New York City killed 146 grossly inflated by the costs of damage Standards Act of 1938 to provide for young immigrant women. They suffo- claims for pain and suffering. legal accountability for sweatshop con- cated or were burned to death because Auto Choice Reform Act. Choice. Re- ditions in the garment industry, and the exits had been locked or blocked. moving the perverse incentives to in- for other purposes; to the Committee Eighty-six years later, we still find flate damages that our current system on Labor and Human Resources. too often that conditions have not im- creates, and allowing consumers to STOP THE SWEATSHOPS ACT OF 1997 proved. In August 1996, four Brooklyn make rational choices, lies at the heart Mr. KENNEDY. Mr. President, last garment factories were closed and their of this bill. Unlike some other no-fault Monday, President Clinton announced owners were arrested for operating measures, the Auto Choice Reform Act an agreement by the Apparel Industry sweatshops. Serious fire code viola- gives consumers, and States, choices. Partnership that establishes a work- tions were found, including locked exit Choices which, if exercised, should sig- place code of conduct for the industry. doors, obstructed aisles, and violations nificantly lower insurance premiums. I commend this agreement, which is of sprinkler system requirements. In For States, the choice is whether or the product of a presidential task force addition, the contractors maintained not to offer the no-fault option to resi- on the exploitation of garment indus- two sets of accounting records, one dents. A State can opt out legisla- try workers by unscrupulous clothing showing that workers were being paid tively, or if the State commissioner of manufacturers. The agreement is de- as little as $2.67 per hour—far less than insurance shows that a no-fault system signed to encourage voluntary compli- the minimum wage. The workers were will not result in a 30 percent decrease ance with labor standards in all coun- all Asian immigrants making clothes in bodily injury premiums for those tries that manufacture clothing sold in for K-Mart. who choose PPI. If States choose to the United States. K-Mart requires its garment contrac- offer the no-fault option, however, con- Congress can build on this agreement tors to identify all subcontractors they sumers still have the choice of whether by acting to abolish sweatshops in our employ, and to make ‘‘regular and sur- or not to participate in the no-fault own country. Last year, Congressman prise inspections’’ of manufacturing system. No driver will be deprived of BILL CLAY and I introduced the Stop operations. But this requirement did her ability to sue, but instead, can the Sweatshops Act. Today I am intro- not prevent the fire code violations, choose between two systems. If they want, consumers can avail ducing that legislation to help fulfill wage violations, and other illegal prac- themselves of the new no-fault insur- the promise of the Apparel Industry tices of the contractors arrested in ance system that the bill creates. If a Partnership agreement. This bill will Brooklyn last summer. This example consumer elects the personal protec- reinforce that agreement by making shows that voluntary codes of conduct tion insurance [PPI] system, then, in clothing manufacturers liable for and monitoring programs, as the Ap- the event of an accident, and regardless sweatshop practices by contractors. parel Industry Partnership agreement of fault, she is compensated by her own This liability will help to ensure that encourages, cannot, by themselves, insurer for economic losses, such as car honest employers who obey our laws eradicate the problem. repair, medical expenses or lost wages, will not lose out in competition with Another sweatshop scandal came to up to her policy limit. She does not, dishonest employers who do not. With- light last spring, with respect to cloth- however, recover for noneconomic out this bill, economic forces in the ing made for Wal-Mart. It shows how losses, pain and suffering, and she may clothing industry make it unlikely far some manufacturers are willing to not be sued for pain and suffering dam- that the Apparel Industry Partnership go to cut costs, and the terrible human ages. If her economic damages exceed agreement will be fully effective in toll that follows. In August 1995, Fed- her policy limit, however, she may sue protecting American workers. eral investigators raided a sewing fac- for economic damages. By taking the Sweatshops continue to plague the tory outside Los Angeles. In a often-inflated damages for pain and garment industry. As important as the compound surrounded by barbed wire, suffering out of the equation, consum- Apparel Industry Partnership agree- agents found dozens of Thai and Mexi- ers choosing PPI should see a signifi- ment is, it has a significant deficiency. can immigrant women working 20-hour cant savings in their insurance pre- It has no enforcement mechanism. It days for as little as $1.00 per hour. The miums—a savings that has been esti- applies only to manufacturers who women were held captive at their sew- mated at $243 per policy. agree to its terms and it does not speci- ing tables by guards who threatened Motorists who choose not to partici- fy how violations will be remedied or them if they tried to escape. pate in the no-fault system are allowed what penalties will be imposed. The American consumers do not want that option under this legislation. Stop the Sweatshops Act remedies their clothing produced in this way. A Again, the choice is with the consumer. these deficiencies for all clothing man- U.S. News and World Report poll By opting for what the bill refers to as ufacturing done in this country. showed that 6 in 10 Americans are con- tort maintenance coverage, a TMC This bill will require manufacturers cerned about working conditions in driver can keep her traditional liabil- to exert their considerable economic U.S. manufacturing firms. A poll re- ity policy under which she can sue power to ensure fair treatment of gar- ported in Newsday showed that 83 per- other TMC drivers for both economic ment workers. It will prevent manufac- cent of consumers would be willing to and noneconomic damages. To cover turers from playing one contractor pay an extra $1 on a $20 item if they noneconomic damages in accidents against another, which drives down the knew the garment wasn’t made in a with PPI drivers, who TMC drivers can- prices of their goods. It is the cut- sweatshop. not sue for noneconomic damages, the throat competition resulting from such Many law-abiding manufacturers al- TMC driver can purchase a supple- practices that causes dangerous and ready recognize the need to stamp out mental policy and recover the non- unhealthy working conditions, brutally sweatshops in the United States. But, economic damages from her own in- long hours, and inadequate pay. as these examples make clear, current surer. The record of worker exploitation in law and voluntary codes of conduct are What does all of this mean? The New the garment industry shows that effec- not adequate to prevent abuses. The 800 York Times perhaps summed it up best tive enforcement is crucial. Of the investigators of the Department of April 22, 1997 CONGRESSIONAL RECORD — SENATE S3437 Labor who monitor compliance with merce by spreading and perpetuating labor ‘‘(A) contracts, directly or indirectly wage and hour laws cannot do the job conditions that undermine minimum living through an intermediary or otherwise, with alone. Manufacturers have the eco- standards and by providing an unfair means a contractor to perform the cutting, sewing, nomic muscle and market power to end of competition to the detriment of employ- dyeing, washing, finishing, assembling, ers who comply with the law. pressing, or otherwise producing of any these abuses. But, under the current (2) The existence of working conditions men’s, women’s, children’s, or infants’ ap- system, the market power works in the detrimental to fair competition and the parel (including clothing, knit goods, hats, wrong direction—it encourages con- maintenance of minimum standards of living gloves, handbags, hosiery, ties, scarves, and tractors to inflict sweatshop conditions necessary for health, efficiency, and general belts, or a section or component of apparel, on employees, rather than pay fair well-being of workers is a continuing and except for premanufactured items such as wages and maintain proper working growing problem in the domestic garment in- buttons, zippers, snaps, and studs) that is de- conditions. dustry. signed or intended to be worn by any individ- (3) The Congress concurs in the findings of The most effective way to enlist ual and that is to be sold or offered for sale; the Comptroller General that most sweat- or manufacturers in the battle against shop employers violate the recordkeeping re- ‘‘(B) designs, cuts, sews, dyes, washes, fin- sweatshops is to make them liable quirements of the Fair Labor Standards Act ishes, assembles, presses, or otherwise pro- along with their contractors for viola- of 1938 and that the failure of such employers duces or is responsible for the production of tions of the law. Manufacturers who to maintain adequate records has affected, any men’s, women’s, children’s, or infants’ know they will face liability will take and continues to affect adversely, the ability apparel (including clothing, knit goods, hats, the steps necessary to ensure that of the Department of Labor to collect wages gloves, handbags, hosiery, ties, scarves, and due to workers. belts, or a section or component of apparel, their contractors comply with applica- (4) The amendment of the Fair Labor ble laws. except for premanufactured items such as Standards Act of 1938 to provide for legal re- buttons, zippers, snaps, and studs) that is de- Our Stop the Sweatshops Act does sponsibility on the part of manufacturers for signed or intended to be worn by any individ- just that. It amends the Fair Labor compliance with such Act’s wage and hour, ual and that is to be sold or offered for sale. Standards Act to make manufacturers child labor, and industrial homework provi- ‘‘(4) The term ‘retailer’ means any person in the garment industry liable, along sions by contractors in the garment industry engaged in the sale of apparel to the ulti- with their contractors, for violations of and to provide civil penalties for violations mate consumer for personal use.’’. of that Act’s recordkeeping requirements is these laws. (b) LIABILITY TO EMPLOYEES.—Section 16 necessary to promote fair competition and (29 U.S.C. 216) is amended— Manufacturers will be liable for in- working conditions that are not detrimental junctive relief and civil penalties as- (1) in subsection (b), by inserting after the to the maintenance of health, efficiency, and first sentence the following: ‘‘A manufac- sessed against a contractor found to general well-being of workers in the garment turer in the garment industry (as defined in have broken the law. They will also be industry. section 14A(b)(3)) shall also be jointly and liable for back pay owed to employees SEC. 3. LEGAL RESPONSIBILITY FOR COMPLI- severally liable to such an employee to the for such violations. Manufacturers will ANCE WITH WAGE AND HOUR PROVI- same extent as the contractor in the gar- SIONS IN THE GARMENT INDUSTRY. ment industry (as defined in section be liable only for violations committed (a) AMENDMENT.—The Fair Labor Stand- on work done for that manufacturer. ards Act of 1938 (29 U.S.C. 201 et seq.) is 14A(b)(1)) who employed such employee if the The bill also authorizes the Sec- amended by inserting after section 14 the fol- contractor violated section 6 (other than retary of Labor to assess a civil pen- lowing: subsection (d)) or 7 in the production of ap- parel or components of apparel for such man- ‘‘LEGAL RESPONSIBILITY FOR COMPLIANCE IN alty of up to $1,000 for each employee ufacturer.’’; THE GARMENT INDUSTRY WITH SECTIONS 6 AND 7 in cases where contractors fail to keep (2) in subsection (b), by inserting in the required payroll records. If the records ‘‘SEC. 14A. (a) Every manufacturer engaged last sentence ‘‘or by a manufacturer in the are fraudulent, the Secretary can as- in the garment industry who contracts to garment industry’’ after ‘‘by an employer’’; have garment manufacturing operations per- sess penalties up to $10,000 for the first and formed by another person as a contractor— (3) in subsection (c)— offense and $15,000 for further offenses. ‘‘(1) shall be civilly liable, with respect to (A) in the third sentence, by striking ‘‘first These penalties will give employers an those garment manufacturing operations, to sentence’’ and inserting ‘‘first or second sen- incentive to keep proper records, and the same extent as the contractor for any tence’’; and violation by the contractor of section 6 (ex- punish contractors who attempt to (B) in the third sentence, by inserting ‘‘or cept for violations of subsection (d)) or 7, for conceal abuses by maintaining two sets by a manufacturer in the garment industry’’ any violation by the contractor of the provi- of records. before ‘‘liable’’. This bill sends a clear message to sions of section 11 regulating, restricting, or prohibiting industrial homework, and for SEC. 4. RECORDKEEPING. garment industry employers. Exploi- violation by the contractor of section 12; and Section 16(e) (29 U.S.C. 216(e)) is amended tation of workers will not be tolerated. ‘‘(2) shall be subject to the same civil pen- by inserting after the first sentence the fol- Sweatshops are unacceptable. We in- alties assessed against the contractor for lowing: ‘‘Any person who fails to establish, tend to do all we can to stamp them violations of such sections. maintain, and preserve payroll records as re- out, and this legislation will help us ‘‘(b) In this section: quired under section 11(c) shall be subject to achieve that goal. ‘‘(1) The term ‘contractor’ means any per- a civil penalty of not to exceed $1,000 for each employee who was the subject of such a I ask unanimous consent that the son who contracts, directly or indirectly through an intermediary or otherwise, with violation. The Secretary may, in the Sec- text of the bill be printed in the a manufacturer to perform the cutting, sew- retary’s discretion, impose civil penalties RECORD. ing, dyeing, washing, finishing, assembling, under this subsection for willful violations. There being no objection, the bill was pressing, or otherwise producing of any Any person who submits fraudulent payroll ordered to be printed in the RECORD, as men’s, women’s, children’s, or infants’ ap- records to the agencies enforcing this Act in follows: parel (including clothing, knit goods, hats, any of the agencies’ investigations or hear- S. 626 gloves, handbags, hosiery, ties, scarves, and ings, or as evidence in a court action, that belts, or a section or component of apparel, conceal the actual hours of labor worked by Be it enacted by the Senate and House of Rep- except for premanufactured items such as employees or the violation of section 6, 7, resentatives of the United States of America in buttons, zippers, snaps, and studs) that is de- 11(d), or 12 shall be subject to a civil penalty Congress assembled, signed or intended to be worn by any individ- of $10,000 for each act of fraud and $15,000 for SECTION 1. SHORT TITLE AND REFERENCE. ual and that is to be sold or offered for sale. each act of fraud for a second offense.’’. (a) SHORT TITLE.—This Act may be cited as ‘‘(2) The term ‘garment industry’ means SEC. 5. EFFECTIVE DATE. the ‘‘Stop Sweatshops Act of 1997’’. the designing, cutting, sewing, dyeing, wash- The amendments made by this Act shall (b) REFERENCE.—Whenever in this Act an ing, finishing, assembling, pressing, or other- take effect upon the expiration of 30 days amendment or repeal is expressed in terms of wise producing of men’s, women’s, children’s, after the date of enactment of this Act. an amendment to, or repeal of, a section or or infants’ apparel (including clothing, knit other provision, the reference shall be con- goods, hats, gloves, handbags, hosiery, ties, By Mr. JEFFORDS (for himself, sidered to be made to a section or other pro- scarves, and belts, or a section or component Mr. MURKOWSKI, Mr. CHAFEE, vision of the Fair Labor Standards Act of of apparel, except for premanufactured items Mr. COCHRAN, Mr. LEAHY and 1938 (29 U.S.C. 201 et seq.). such as buttons, zippers, snaps, and studs) Mr. WELLSTONE): SEC. 2. FINDINGS. that is designed or intended to be worn by The Congress makes the following findings: any individual and that is to be sold or of- S. 627. A bill to reauthorize the Afri- (1) The production of garments in violation fered for sale. can Elephant Conservation Act; to the of minimum labor standards burdens com- ‘‘(3) The term ‘manufacturer’ means any Committee on Environment and Public merce and the free flow of goods in com- person, including a retailer, who— Works. S3438 CONGRESSIONAL RECORD — SENATE April 22, 1997 THE AFRICAN ELEPHANT CONSERVATION ACT S. 628. A bill to designate the United and look forward to working with my REAUTHORIZATION ACT OF 1997 States courthouse to be constructed at colleagues to make the Reynaldo G. Mr. JEFFORDS. Mr. President, I rise the corner of 7th Street and East Jack- Garza Federal courthouse a reality. today in celebration of Earth Day to son Street in Brownsville, Texas, as Mrs. HUTCHISON. Madam President, introduce legislation to reauthorize the the ‘‘Reynaldo G. Garza United States today we honor our Nation’s first Mexi- African Elephant Conservation Act of Courthouse’’; to the Committee on En- can-American Federal judge, Judge 1988, a historic conservation measure vironment and Public Works. Reynaldo G. Garza. I am proud to co- that continues to successfully preserve THE REYNALDO G. GARZA U.S. COURTHOUSE sponsor legislation with Senator the African elephant in its natural en- DESIGNATION ACT OF 1997 GRAMM to name the new Federal court- vironment. This legislation will extend Mr. GRAMM. Mr. President, along house in Brownsville for Judge Garza. the act through September of the year with my colleague, Senator HUTCHISON, In this way, we will record for genera- 2002. I am proud to introduce legislation tions to come Judge Garza’s selfless The African Elephant Conservation that would name the Federal court- service to the city of Brownsville, to Act has resulted in the stabilization of house in Brownsville, TX after a man Texas and to our Nation. elephant populations on the African who has been involved in the adminis- Traditionally, we reserve this honor Continent. By the late 1980’s, the popu- tration of justice throughout South for judges who no longer walk the lation of African elephants had dra- Texas for nearly 60 years, Judge courthouse halls. However, we wish to matically declined from approximately Reynaldo G. Garza. grant an exception for this exceptional 1.3 million animals in 1979 to less than Judge Garza was the first Mexican- man. Born of immigrant parents, 700,000 in 1987. The primary reason for American to be appointed to a Federal Reynaldo Garza has paved a hopeful this decline was the poaching and ille- judgeship in the history of our country, path for other immigrant sons. After gal slaughter of elephants for their when President Kennedy appointed him distinguishing himself as a lawyer, he tusks, which fueled the international to a district court bench in 1961. Judge served on the U.S. District Court for trade in ivory. Garza served as a U.S. District Judge the Southern District until his ap- To address this problem, the U.S. until 1979, when President Carter ap- pointment to the U.S. Court of Appeals Congress enacted the African Elephant pointed him to the Fifth Circuit Court for the Fifth Circuit in 1979 by Presi- Conservation Act to provide assistance of Appeals, where he still serves, at the dent Carter. As the first Mexican- to African nations in their efforts to age of 81, in senior status. American to achieve these distinctions, stop poaching and to develop and im- Besides being named a the first Mexi- Judge Garza truly personifies the pio- plement effective conservation pro- can-American Federal district judge, neer spirit of this great Nation. grams. To accomplish this goal, the he was the first Mexican-American I would like Judge Garza to be re- legislation created the African ele- chief district judge, and the first Mexi- membered as well for his gracious re- phant conservation fund. Since 1988, can-American Federal circuit court sponse to this action. Upon learning Congress has appropriated over $6 mil- judge. He would have been the first that the courthouse might be named lion to fund 48 conservation projects in Mexican-American ever to have been for him, Judge Garza said simply, ‘‘I’m humbled by the fact that somebody 17 range states throughout Africa, with appointed to a President’s Cabinet if he would even think I’m worthy of it.’’ In- additional contributions of $7 million had accepted President Carter’s re- deed, no one is worthier than Judge through private matching moneys. quest to serve as the Nation’s attorney Garza of this small token of our re- The African elephant conservation general in 1977. Sensibly, however, spect and admiration. fund has resulted in the development Judge Garza didn’t want to move from and implementation of various ele- Brownsville to Washington, DC. By Mr. BREAUX (by request): phant conservation plans. Today, ele- Judge Garza’s life has been filled S. 629. A bill entitled the ‘‘OECD phant populations have stabilized and with extraordinary accomplishments. Shipbuilding Agreement Act’’; to the are on the increase in southern Africa, Born in 1915 in Brownsville to Ygnacio Committee on Commerce, Science, and the international ivory trade has been and Zoila Garza, both Mexican immi- Transportation. dramatically reduced, and wildlife grants, he was the sixth of eight chil- THE OECD SHIPBUILDING AGREEMENT ACT rangers are better equipped to stop ille- dren. Judge Garza reached adulthood Mr. BREAUX. Mr. President: today I gal poaching activities. The conserva- during the Depression and, through introduce a bill to implement the tion fund originally focused on anti- sheer ability, hard work and deter- OECD shipbuilding agreement to end poaching efforts. Over the last several mination, graduated from the Univer- foreign shipbuilding subsidies. This bill years, the projects have diversified to sity of Texas Law School in 1939. He is an administration draft that I sub- include elephant population research, then established a law practice in mit to better focus upcoming congres- efforts to mitigate elephant and human Brownsville, mixing his work with the sional discussion of the issues. With conflicts, the cataloging of ivory demands of raising five children and Europe just announcing $2.1 billion in stockpiles, and the identification of serving his community in capacities new subsidies for its shipyards, the new techniques for effective elephant ranging from the local school board United States cannot afford to delay management. It is important, however, and city commission to the Knights of action on this agreement any longer. to keep in mind that, while the African Columbus. The United States has taken a lead- elephant conservation fund has re- Following the Japanese attack on ership role in pushing for the elimi- sulted in several successful conserva- Pearl Harbor in December of 1941, nation of unfair subsidies in the inter- tion projects, much work remains to be Reynaldo Garza enlisted in the U.S. national commercial shipbuilding sec- done to ensure that the African ele- Army and served until the war’s end in tor. In 1981, the United States unilater- phant continues to survive in its natu- 1945 as a gunnery sergeant and in other ally eliminated its own commercial ral environment. capacities. In 1943, Garza was selected shipbuilding subsidies. In October 1989, We must work to ensure that the Af- to serve as translator in a meeting be- the United States, at the request of the rican elephant does not once again de- tween President Franklin D. Roosevelt six defense-oriented shipyards and the cline and disappear from its historic and Mexican President Miguel Avila smaller commercial shipyards, initi- range. I am confident that additional Camacho, marking the first time a U.S. ated negotiations in the OECD aimed conservation projects funded through president had met with a Mexican at eliminating trade distorting foreign the legislation will help to preserve president on Mexican soil. shipbuilding subsidies. After 5 years of this flagship species for many future Judge Garza’s selfless commitment negotiations and constant prodding by generations. I urge my colleagues to to his family, his community and his the U.S. Congress, the OECD shipbuild- join me in supporting the African Ele- Nation is exemplary, and today, he ing agreement was signed by the Euro- phant Conservation Reauthorization serves as a role model for people both pean Union, Japan, the Republic of Act of 1997. inside and outside of the legal profes- Korea, Finland, Norway, and the Unit- sion. ed States on December 21, 1994. By Mr. GRAMM (for himself and I am privileged to introduce this leg- The OECD shipbuilding agreement, Mrs. HUTCHISON): islation in Judge Garza’s honor today which covers over 80 percent of the April 22, 1997 CONGRESSIONAL RECORD — SENATE S3439 world’s commercial shipbuilding and Sec. 114. Amendments to the Merchant Ma- ‘‘(1) the administering authority deter- repair capacity, would prohibit govern- rine Act, 1936. mines that a foreign vessel has been sold di- ment subsidies to the shipbuilding in- Sec. 115. Applicability of Title XI amend- rectly or indirectly to one or more United dustry, as well as discipline export ments. States buyers at less than its fair value, and Sec. 116. Withdrawal from Agreement. ‘‘(2) the Commission determines that— credits, set common rules for govern- Sec. 117. Monitoring and enforcement. ‘‘(A) an industry in the United States— ment financing programs, and establish Sec. 118. Jones Act and related laws not af- ‘‘(i) is or has been materially injured, or a mechanism for addressing injurious fected. ‘‘(ii) is threatened with material injury, or pricing, that is, dumping. As of June 1, Sec. 119. Expanding membership in the Ship- ‘‘(B) the establishment of an industry in 1996, all signatories, except the United building Agreement. the United States is or has been materially States, had ratified the agreement. Sec. 120. Protection of United States secu- retarded, In the last Congress, several parties rity interests. by reason of the sale of such vessel, then Sec. 121. Definitions. expressed serious concerns about cer- there shall be imposed upon the foreign pro- tain aspects of the agreement and the PART 3—EFFECTIVE DATE ducer of the subject vessel an injurious pric- Sec. 131. Effective date. ing charge, in an amount equal to the proposed implementing legislation amount by which the normal value exceeds which we were unable to address before (c) PURPOSES.—The purposes of this Act are— the export price for the vessel. For purposes the end of the last session. As a result, (1) to enhance the competitiveness of U.S. of this subsection and section 805(b)(1), a ref- the agreement’s entry into force has Shipbuilders which has been diminished as a erence to the sale of a foreign vessel includes been delayed by more than a year. I am result of foreign subsidy and predatory pric- the creation or transfer of an ownership in- hopeful that an agreement on imple- ing practices; terest in the vessel, except for an ownership menting legislation can be reached (2) to ensure that U.S. ownership, manning, interest created or acquired solely for the early this session and I think the bill I and construction of coastwise trade (Jones purpose of providing security for a normal commercial loan. am introducing today is a huge step in Act) vessels, which have provided the De- ‘‘(b) FOREIGN VESSELS NOT MERCHANDISE.— that direction. partment of Defense with mariners and as- sets in time of national emergency, cannot No foreign vessel may be considered to be, or I am very concerned, however, that be compromised by the OECD Shipbuilding to be part of, a class or kind of merchandise further delay in confirming United Agreement; and for purposes of subtitle B of title VII. States commitment to this agreement (3) to strengthen our shipbuilding indus- ‘‘SEC. 802. PROCEDURES FOR INITIATING AN IN- will seriously undermine U.S. long- trial base to ensure that its full capabilities JURIOUS PRICING INVESTIGATION. term efforts to eliminate foreign ship- are available in time of national emergency. ‘‘(a) INITIATION BY ADMINISTERING AUTHOR- building subsidies, especially as other SEC. 102. APPROVAL OF THE SHIPBUILDING ITY.— countries face increased pressure to re- AGREEMENT. ‘‘(1) GENERAL RULE.—Except in the case in The Congress approves The Agreement Re- which subsection (d)(6) applies, an injurious sume the granting of subsidies to their pricing investigation shall be initiated when- shipbuilding industries. The United specting Normal Competitive Conditions in the Commercial Shipbuilding and Repair In- ever the administering authority deter- States can’t afford a shipbuilding sub- dustry (referred to in this Act as the ‘‘Ship- mines, from information available to it, that sidies race. We are cutting funding of building Agreement’’), a reciprocal trade a formal investigation is warranted into the important domestic programs now. The agreement which resulted from negotiations question of whether the elements necessary United States needs to approve and im- under the auspices of the Organization for for the imposition of a charge under section plement the shipbuilding agreement in Economic Cooperation and Development, 801(a) exist, and whether a producer de- order to give us the tools to challenge and was entered into on December 21, 1994. scribed in section 861(17)(C) would meet the criteria of subsection (b)(1)(B) for a peti- foreign subsidies and protect our ship- SEC. 103. INJURIOUS PRICING AND COUNTER- MEASURES RELATING TO SHIP- tioner. building industry against unfair for- BUILDING. ‘‘(2) TIME FOR INITIATION BY ADMINISTERING eign competition. The Tariff Act of 1930 is amended by adding AUTHORITY.—An investigation may only be I ask you to join the battle against at the end the following new title: initiated under paragraph (1) within 6 unfair international shipbuilding sub- ‘‘TITLE VIII—INJURIOUS PRICING AND months after the time the administering au- sidies by supporting the swift passage COUNTERMEASURES RELATING TO thority first knew or should have known of of legislation approving and imple- SHIPBUILDING the sale of the vessel. Any period during menting the OECD shipbuilding agree- which an investigation is initiated and pend- ‘‘Subtitle A—Imposition of Injurious Pricing ing as described in subsection (d)(6)(A) shall ment. Charge and Countermeasures not be included in calculating that 6-month Mr. President, I ask unanimous con- ‘‘Sec. 801. Injurious pricing charge. period. sent that the text of the bill be printed ‘‘Sec. 802. Procedures for initiating an inju- ‘‘(b) INITIATION BY PETITION.— in the RECORD. rious pricing investigation. ‘‘(1) PETITION REQUIREMENTS.— There being no objection, the bill was ‘‘Sec. 803. Preliminary determinations. ‘‘(A) IN GENERAL.—Except in a case in ordered to be printed in the RECORD, as ‘‘Sec. 804. Termination or suspension of in- which subsection (d)(6) applies, an injurious follows: vestigation. pricing proceeding shall be initiated when- ‘‘Sec. 805. Final determinations. ever an interested party, as defined in sub- S. 629 ‘‘Sec. 806. Imposition and collection of inju- paragraph (C), (D), (E), or (F) of section Be it enacted by the Senate and House of Rep- rious pricing charge. 861(17), files a petition with the administer- resentatives of the United States of America in ‘‘Sec. 807. Imposition of countermeasures. ing authority, on behalf of an industry, Congress assembled, ‘‘Sec. 808. Injurious pricing petitions by which alleges the elements necessary for the PART 1—GENERAL PROVISIONS third countries. imposition of an injurious pricing charge SECTION 101. SHORT TITLE; TABLE OF CON- ‘‘Sec. 809. Third country injurious pricing. under section 801(a) and the elements re- TENTS; PURPOSES. ‘‘Subtitle B—Special Rules quired under subparagraph (B), (C), (D), or (a) SHORT TITLE.—This Act may be cited as ‘‘Sec. 821. Export price. (E) of this paragraph, and which is accom- the ‘‘OECD Shipbuilding Agreement Act’’. ‘‘Sec. 822. Normal value. panied by information reasonably available (b) TABLE OF CONTENTS.— ‘‘Sec. 823. Currency conversion. to the petitioner supporting those allega- PART 1—GENERAL PROVISIONS tions and identifying the transaction con- ‘‘Subtitle C—Procedures cerned. Sec. 101. Short title; Table of Contents. ‘‘Sec. 841. Hearings. ‘‘(B) PETITIONERS DESCRIBED IN SECTION Sec. 102. Approval of the Shipbuilding ‘‘Sec. 842. Determinations on the basis of 861(17)(C).— Agreement. the facts available. ‘‘(i) IN GENERAL.—If the petitioner is a pro- Sec. 103. Injurious pricing and counter- ‘‘Sec. 843. Access to information. ducer described in section 861(17)(C), and— measures relating to shipbuild- ‘‘Sec. 844. Conduct of investigations. ‘‘(I) if the vessel was sold through a broad ing. ‘‘Sec. 845. Administrative action following multiple bid, the petition shall include infor- Sec. 104. Enforcement of countermeasures. shipbuilding agreement panel mation indicating that the petitioner was in- Sec. 105. Judicial review in injurious pricing reports. vited to tender a bid on the contract at and countermeasure proceed- issue, the petitioner actually did so, and the ings. ‘‘Subtitle D—Definitions ‘‘Sec. 861. Definitions. bid of the petitioner substantially met the PART 2—OTHER PROVISIONS delivery date and technical requirements of Sec. 111. Equipment and repair of vessels. ‘‘Subtitle A—Imposition of Injurious Pricing the bid, Sec. 112. Effect of agreement with respect to Charge and Countermeasures ‘‘(II) if the vessel was sold through any bid- private remedies. ‘‘SEC. 801. INJURIOUS PRICING CHARGE. ding process other than a broad multiple bid Sec. 113. Implementing regulations. ‘‘(a) BASIS FOR CHARGE.—If— and the petitioner was invited to tender a S3440 CONGRESSIONAL RECORD — SENATE April 22, 1997 bid on the contract at issue, the petition of the sale, together with general informa- tion of the domestic industry expressing sup- shall include information indicating that the tion concerning the vessel, is published in port for or opposition to the petition. petitioner actually did so and the bid of the the international trade press, there is a re- ‘‘(B) CERTAIN POSITIONS DISREGARDED.—In petitioner substantially met the delivery buttable presumption that the petitioner determining industry support under subpara- date and technical requirements of the bid, knew or should have known of the sale of the graph (A), the administering authority shall or vessel from the date of that publication. disregard the position of domestic producers ‘‘(III) except in a case in which the vessel ‘‘(c) ACTIONS BEFORE INITIATING INVESTIGA- who oppose the petition, if such producers was sold through a broad multiple bid, if TIONS.— are related to the foreign producer or United there is no invitation to tender a bid, the pe- ‘‘(1) NOTIFICATION OF GOVERNMENTS.—Be- States buyer of the subject vessel, or the do- tition shall include information indicating fore initiating an investigation under either mestic producer is itself the United States that the petitioner was capable of building subsection (a) or (b), the administering au- buyer, unless such domestic producers dem- the vessel concerned and, if the petitioner thority shall notify the government of the onstrate that their interests as domestic knew or should have known of the proposed exporting country of the investigation. In producers would be adversely affected by the purchase, it made demonstrable efforts to the case of the initiation of an investigation imposition of an injurious pricing charge. conclude a sale with the United States buyer under subsection (b), such notification shall ‘‘(C) POLLING THE INDUSTRY.—If the peti- consistent with the delivery date and tech- include a public version of the petition. tion does not establish support of domestic nical requirements of the buyer. ‘‘(2) ACCEPTANCE OF COMMUNICATIONS.—The producers or workers accounting for more ‘‘(ii) REBUTTABLE PRESUMPTION REGARDING administering authority shall not accept any than 50 percent of the total capacity to KNOWLEDGE OF PROPOSED PURCHASE.—For unsolicited oral or written communication produce a like vessel— purposes of clause (i)(III), there is a rebutta- from any person other than an interested ‘‘(i) the administering authority shall poll ble presumption that the petitioner knew or party described in section 861(17)(C), (D), (E), the industry or rely on other information in should have known of the proposed purchase or (F) before the administering authority order to determine if there is support for the if it is demonstrated that— makes its decision whether to initiate an in- petition as required by subparagraph (A), or ‘‘(I) the majority of the producers in the vestigation pursuant to a petition, except for ‘‘(ii) if there is a large number of producers industry have made efforts with the United inquires regarding the status of the admin- in the industry, the administering authority States buyer to conclude a sale of the sub- istering authority’s consideration of the pe- may determine industry support for the peti- ject vessel, or tition or a request for consultation by the tion by using any statistically valid sam- ‘‘(II) general information on the sale was government of the exporting country. pling method to poll the industry. available from brokers, financiers, classifica- ‘‘(3) NONDISCLOSURE OF CERTAIN INFORMA- ‘‘(D) COMMENT BY INTERESTED PARTIES.— tion societies, charterers, trade associations, TION.—The administering authority and the Before the administering authority makes a or other entities normally involved in ship- Commission shall not disclose information determination with respect to initiating an building transactions with whom the peti- with regard to any draft petition submitted investigation, any person who would qualify tioner had regular contacts or dealings. for review and comment before it is filed as an interested party under section 861(17) if ‘‘(C) PETITIONERS DESCRIBED IN SECTION under subsection (b)(1). an investigation were initiated, may submit 861(17)(D).—If the petitioner is an interested ‘‘(d) PETITION DETERMINATION.— comments or information on the issue of in- party described in section 861(17)(D), the pe- ‘‘(1) TIME FOR INITIAL DETERMINATION.— dustry support. After the administering au- tition shall include information indicating ‘‘(A) IN GENERAL.—Within 45 days after the thority makes a determination with respect that members of the union or group of work- date on which a petition is filed under sub- to initiating an investigation, the deter- ers described in that section are employed by section (b), the administering authority mination regarding industry support shall a producer that meets the requirements of shall, after examining, on the basis of not be reconsidered. subparagraph (B) of this paragraph. sources readily available to the administer- ‘‘(5) DEFINITION OF DOMESTIC PRODUCERS OR ‘‘(D) PETITIONERS DESCRIBED IN SECTION ing authority, the accuracy and adequacy of 861(17)(E).—If the petitioner is an interested WORKERS.—For purposes of this subsection, the evidence provided in the petition, deter- the term ‘domestic producers or workers’ party described in section 861(17)(E), the pe- mine whether the petition— tition shall include information indicating means interested parties as defined in sec- ‘‘(i) alleges the elements necessary for the tion 861 (17) (C), (D), (E), or (F). that a member of the association described imposition of an injurious pricing charge in that section is a producer that meets the ‘‘(6) PROCEEDINGS BY WTO MEMBERS.—The under section 801(a) and the elements re- administering authority shall not initiate an requirements of subparagraph (B) of this quired under subsection (b)(1)(B), (C), (D), or paragraph. investigation under this section if, with re- (E), and contains information reasonably spect to the vessel sale at issue, an anti- ‘‘(E) PETITIONERS DESCRIBED IN SECTION available to the petitioner supporting the al- 861(17)(F).—If the petitioner is an interested dumping proceeding conducted by a WTO legation; and member who is not a Shipbuilding Agree- party described in section 861(17)(F), the pe- ‘‘(ii) determine if the petition has been tition shall include information indicating ment Party— filed by or on behalf of the industry. ‘‘(A) has been initiated and has been pend- that a member of the association described ‘‘(B) CALCULATION OF 45-DAY PERIOD.—Any ing for not more than on year, or in that section meets the requirements of period in which paragraph (6)(A) applies ‘‘(B) has been completed and resulted in subparagraph (C) or (D) of this paragraph. shall not be included in calculating the 45- the imposition of antidumping measures or a ‘‘(F) AMENDMENTS.—The petition may be day period described in subparagraph (A). negative determination with respect to amended at such time, and upon such condi- ‘‘(2) AFFIRMATIVE DETERMINATION.—If the whether the sale was at less than fair value tions, as the administering authority and determinations under clauses (i) and (ii) of or with respect to injury. the Commission may permit. paragraph (1)(A) are affirmative, the admin- ‘‘(2) SIMULTANEOUS FILING WITH COMMIS- ‘‘(e) NOTIFICATION TO COMMISSION OF DE- istering authority shall initiate an inves- SION.—The petitioner shall file a copy of the TERMINATION.—The administering authority tigation to determine whether the vessel was petition with the Commission on the same shall— sold at less than fair value, unless paragraph day as it is filed with the administering au- ‘‘(1) notify the Commission immediately of (6) applies. thority. any determination it makes under sub- ‘‘(3) NEGATIVE DETERMINATIONS.—If— ‘‘(3) DEADLINE FOR FILING PETITION.— ‘‘(A) the determination under clause (i) or section (a) or (d), and ‘‘(A) DEADLINE.—(i) A petitioner to which ‘‘(2) if the determination is affirmative, paragraph (1)(B)(i) (I) or (II) applies shall file (ii) of paragraph (1)(A) is negative, or ‘‘(B) paragraph (6)(B) applies, the admin- make available to the Commission such in- the petition no later than the earlier of— istering authority shall dismiss the petition, formation as it may have relating to the ‘‘(I) 6 months after the time that the peti- matter under investigation, under such pro- tioner first knew or should have known of terminate the proceeding, and notify the pe- titioner in writing of the reasons for the de- cedures as the administering authority and the sale of the subject vessel, or the Commission may establish to prevent ‘‘(II) 6 months after delivery of the subject termination. ‘‘(4) DETERMINATION OF INDUSTRY SUP- disclosure, other than with the consent of vessel. the party providing it or under protective ‘‘(ii) A petitioner to which paragraph PORT.— order, of any information to which confiden- (1)(B)(i)(III) applies shall— ‘‘(A) GENERAL RULE.—For purposes of this tial treatment has been given by the admin- ‘‘(I) file the petition no later than the ear- subsection, the administering authority istering authority. lier of 9 months after the time that the peti- shall determine that the petition has been tioner first knew or should have known of filed by or on behalf of the domestic indus- ‘‘SEC. 803. PRELIMINARY DETERMINATIONS. the sale of the subject vessel, or 6 months try, if— ‘‘(a) DETERMINATION BY COMMISSION OF after delivery of the subject vessel, and ‘‘(i) the domestic producers or workers who REASONABLE INDICATION OF INJURY.— ‘‘(II) submit to the administering author- support the petition collectively account for ‘‘(1) GENERAL RULE.—Except in the case of ity a notice of intent to file a petition no at least 25 percent of the total capacity of a petition dismissed by the administering later than 6 months after the time that the domestic producers capable of producing a authority under section 802(d)(3), the Com- petitioner first knew or should have known like vessel, and mission, within the time specified in para- of the sale (unless the petition itself is filed ‘‘(ii) the domestic producers or workers graph (2), shall determine, based on the in- within that 6-month period). who support the petition collectively ac- formation available to it at the time of the ‘‘(B) PRESUMPTION OF KNOWLEDGE.—For count for more than 50 percent of the total determination, whether there is a reasonable purposes of this paragraph, if the existence capacity to produce a like vessel of that por- indication that— April 22, 1997 CONGRESSIONAL RECORD — SENATE S3441

‘‘(A) an industry in the United States— under paragraph (1)(A) or (B) until not later ‘‘(1) SUSPENSION OF INVESTIGATION.—The ‘‘(i) is or has been materially injured, or than the 190th day after— administering authority and the Commission ‘‘(ii) is threatened with material injury, or ‘‘(A) the date of delivery of the foreign like shall suspend an investigation under this ‘‘(B) the establishment of an industry in vessel, if subsection (b)(1)(B) applies, section if a WTO member that is not a Ship- the United States is or has been materially ‘‘(B) the date of delivery of the subject ves- building Agreement Party initiates an anti- retarded, by reason of the sale of the subject sel, if subsection (b)(1)(C) applies, or dumping proceeding described in section vessel. If the Commission makes a negative ‘‘(C) the date on which the administering 861(30)(A) with respect to the sale of the sub- determination under this paragraph, the in- authority initiates an investigation under ject vessel. vestigation shall be terminated. section 802, in a case in which subsection ‘‘(2) TERMINATION OF INVESTIGATION.—If an ‘‘(2) TIME FOR COMMISSION DETERMINA- (b)(1)(D) applies. antidumping proceeding described in para- TION.—The Commission shall make the de- ‘‘(3) NOTICE OF POSTPONEMENT.—The admin- graph (1) is concluded by— termination described in paragraph (1) with- istering authority shall notify the parties to ‘‘(A) the imposition of antidumping meas- in 90 days after the date on which the peti- the investigation, not later than 20 days be- ures, or tion is filed or, in the case of an investiga- fore the date on which the preliminary deter- ‘‘(B) a negative determination with respect tion initiated under section 802(a), within 90 mination would otherwise be required under to whether the sale is at less than fair value days after the date on which the Commission subsection (b)(1), if it intends to postpone or with respect to injury, the administering receives notice from the administering au- making the preliminary determination authority and the Commission shall termi- thority that the investigation has been initi- under paragraph (1). The notification shall nate the investigation under this section. ated under such section. include an explanation of the reasons for the ‘‘(3) CONTINUATION OF INVESTIGATION.—(A) ‘‘(b) PRELIMINARY DETERMINATION BY AD- postponement, and notice of the postpone- If such a proceeding— MINISTERING AUTHORITY.— ment shall be published in the Federal Reg- ‘‘(i) is concluded by a result other than a ‘‘(1) PERIOD OF INJURIOUS PRICING INVES- ister. result described in paragraph (2), or TIGATION.— ‘‘(d) EFFECT OF DETERMINATION BY THE AD- ‘‘(ii) is not concluded within one year from ‘‘(A) IN GENERAL.—The administering au- MINISTERING AUTHORITY.—If the preliminary the date of the initiation of the proceeding, thority shall make a determination, based determination of the administering author- then the administering authority and the upon the information available to it at the ity under subsection (b) is affirmative, the Commission shall terminate the suspension time of the determination, of whether there administering authority shall— and continue the investigation. The period in is a reasonable basis to believe or suspect ‘‘(1) determine an estimated injurious pric- which the investigation was suspended shall that the subject vessel was sold at less than ing margin, and not be included in calculating deadlines ap- ‘‘(2) make available to the Commission all fair value. plicable with respect to the investigation. information upon which its determination ‘‘(B) COST DATA USED FOR NORMAL VALUE.— ‘‘(B) Notwithstanding subparagraph (A)(ii), was based and which the Commission consid- If cost data is required to determine normal if the proceeding is concluded by a result de- ers relevant to its injury determination, value on the basis of a sale of a foreign like scribed in paragraph (2)(A), the administer- under such procedures as the administering vessel that has not been delivered on or be- ing authority and the Commission shall ter- authority and the Commission may establish fore the date on which the administering au- minate the investigation under this section. thority initiates the investigation, the ad- to prevent disclosure, other than with the ministering authority shall make its deter- consent of the party providing it or under ‘‘SEC. 805. FINAL DETERMINATIONS. mination within 160 days after the date of protective order, of any information to ‘‘(a) DETERMINATIONS BY ADMINISTERING delivery of the foreign like vessel. which confidential treatment has been given AUTHORITY.— ‘‘(C) NORMAL VALUE BASED ON CONSTRUCTED by the administering authority. ‘‘(1) IN GENERAL.—Within 75 days after the VALUE.——If normal value is to be deter- ‘‘(e) NOTICE OF DETERMINATION.—Whenever date of its preliminary determination under mined on the basis of constructed value, the the Commission or the administering au- section 803(b), the administering authority administering authority shall make its de- thority makes a determination under this shall make a final determination of whether termination within 160 days after the date of section, the Commission or the administer- the vessel which is the subject of the inves- delivery of the subject vessel. ing authority, as the case may be, shall no- tigation has been sold in the United States ‘‘(d) OTHER CASES.—In cases in which sub- tify the petitioner, and other parties to the at less than its fair value. paragraph (B) or (C) does not apply, the ad- investigation, and the Commission or the ad- ‘‘(2) EXTENSION OF PERIOD FOR DETERMINA- ministering authority shall make its deter- ministering authority (whichever is appro- TION.— mination within 160 days after the date on priate) of its determination. The administer- ‘‘(A) GENERAL RULE.—The administering which the administering authority initiates ing authority shall include with such notifi- authority may postpone making the final de- the investigation under section 802. cation the facts and conclusions on which its termination under paragraph (1) until not ‘‘(E) AFFIRMATIVE DETERMINATION BY COM- determination is based. Not later than 5 days later than 290 days after— MISSION REQUIRED.—In no event shall the ad- after the date on which the determination is 11(i) the date of delivery of the foreign like ministering authority make its determina- required to be made under subsection (a)(2), vessel, in an investigation to which section tion before an affirmative determination is the Commission shall transmit to the admin- 803(b)(1)(B) applies, made by the Commission under subsection istering authority the facts and conclusions ‘‘(ii) the date of delivery of the subject ves- (a). on which its determination is based. sel, in an investigation to which section ‘‘(2) DE MINIMIS INJURIOUS PRICING MAR- ‘‘SEC. 804. TERMINATION OR SUSPENSION OF IN- 803(b)(1)(C) applies, or GIN.—In making a determination under this VESTIGATION. ‘‘(iii) the date on which the administering subsection, the administering authority ‘‘(a) TERMINATION OF INVESTIGATION UPON authority initiates the investigation under shall disregard any injurious pricing margin WITHDRAWAL OF PETITION.— section 802, in an investigation to which sec- that is de minimis. For purposes of the pre- ‘‘(1) IN GENERAL.—Except as provided in tion 803(b)(1)(D) applies. ceding sentence, an injurious pricing margin paragraph (2), an investigation under this ‘‘(B) REQUEST REQUIRED.—The administer- is de minimis if the administering authority subtitle may be terminated by either the ad- ing authority may apply subparagraph (A) if determines that the injurious pricing margin ministering authority or the Commission, a request in writing is made by— is less than 2 percent of the export price. after notice to all parties to the investiga- ‘‘(i) the producer of the subject vessel, in a ‘‘(c) EXTENSION OF PERIOD IN EXTRAOR- tion, upon withdrawal of the petition by the proceeding in which the preliminary deter- DINARILY COMPLICATED CASES OR FOR GOOD petitioner. mination by the administering authority CAUSE.— ‘‘(2) LIMITATION ON TERMINATION BY COM- under section 803(b) was affirmative, or ‘‘(1) IN GENERAL.—If— MISSION.—The Commission may not termi- ‘‘(ii) the petitioner, in a proceeding in ‘‘(A) the administering authority con- nate an investigation under paragraph (1) be- which the preliminary determination by the cludes that the parties concerned are cooper- fore a preliminary determination is made by administering authority under section 803(b) ating and determines that— the administering authority under section was negative. ‘‘(i) the case is extraordinarily complicated 803(b). ‘‘(3) DE MINIMIS INJURIOUS PRICING MAR- by reason of— ‘‘(b) TERMINATION OF INVESTIGATIONS INITI- GIN.—In making a determination under this ‘‘(I) the novelty of the issues presented, or ATED BY ADMINISTERING AUTHORITY.—The ad- subsection, the administering authority ‘‘(II) the nature and extent of the informa- ministering authority may terminate any in- shall disregard any injurious pricing margin tion required, and vestigation initiated by the administering that is de minimis as defined in section ‘‘(ii) additional time is necessary to make authority under section 802(a) after provid- 803(b)(2). the preliminary determination, or ing notice of such termination to all parties ‘‘(b) FINAL DETERMINATION BY COMMIS- ‘‘(B) a party to the investigation requests to the investigation. SION.— an extension and demonstrates good cause ‘‘(c) ALTERNATE EQUIVALENT REMEDY.—The ‘‘(1) IN GENERAL.—The Commission shall for the extension, criteria set forth in subparagraphs (A) make a final determination of whether— then the administering authority may post- through (D) of section 806(e)(1) shall apply to ‘‘(A) an industry in the United States— pone the time for making its preliminary de- any agreement that forms the basis for ter- ‘‘(i) is or has been materially injured, or termination. mination of an investigation under sub- ‘‘(ii) is threatened with material injury, or ‘‘(2) LENGTH OF POSTPONEMENT.—The pre- section (a) or (b). ‘‘(B) the establishment of an industry in liminary determination may be postponed ‘‘(d) PROCEEDINGS BY WTO MEMBERS.— the United States is or has been materially S3442 CONGRESSIONAL RECORD — SENATE April 22, 1997

retarded, by reason of the sale of the vessel SEC. 806. IMPOSITION AND COLLECTION OF INJU- ‘‘(1) AGREEMENT FOR ALTERNATE REMEDY.— with respect to which the administering au- RIOUS PRICING CHARGE. The administering authority may suspend an thority has made an affirmative determina- ‘‘(a) IN GENERAL.—Within 7 days after injurious pricing order if the administering tion under subsection (a)(1). being notified by the Commission of an af- authority enters into an agreement with the ‘‘(2) PERIOD FOR INJURY DETERMINATION firmative determination under section 805(b), foreign producer subject to the order on an FOLLOWING AFFIRMATIVE PRELIMINARY DETER- the administering authority shall publish an alternative equivalent remedy, that the ad- MINATION BY ADMINISTERING AUTHORITY.—If order imposing an injurious pricing charge ministering authority determines— the preliminary determination by the ad- on the foreign producer of the subject vessel ‘‘(A) is at least as effective a remedy as the ministering authority under section 803(b) is which— injurious pricing charge, affirmative, then the Commission shall ‘‘(1) directs the foreign producer of the sub- ‘‘(B) is in the public interest, make the determination required by para- ject vessel to pay to the Secretary of the ‘‘(C) can be effectively monitored and en- graph (1) before the later of— Treasury, or the designee of the Secretary, forced, and ‘‘(A) the 120th day after the day on which within 180 days from the date of publication ‘‘(D) is otherwise consistent with the do- the administering authority makes its af- of the order, an injurious pricing charge in mestic law and international obligations of firmative preliminary determination under an amount equal to the amount by which the the United States. section 803(b), or normal value exceeds the export price of the ‘‘(2) PRIOR CONSULTATION AND SUBMISSION ‘‘(B) the 45th day after the day on which subject vessel, OF COMMENTS.—Before entering into an the administering authority makes its af- (2) includes the identity and location of the agreement under paragraph (1), the admin- firmative final determination under sub- foreign producer and a description of the istering authority shall consult with the in- section (a). subject vessel, in such detail as the admin- dustry, and provide for the submission of ‘‘(3) PERIOD FOR INJURY DETERMINATION istering authority deems necessary, and comments by interested parties, with respect FOLLOWING NEGATIVE PRELIMINARY DETER- ‘‘(3) informs the foreign producer that— to the agreement. MINATION BY ADMINISTERING AUTHORITY.—If ‘‘(A) failure to pay the injurious pricing ‘‘(3) MATERIAL VIOLATIONS OF AGREEMENT.— the preliminary determination by the ad- charge in a timely fashion may result in the If the injurious pricing order has been sus- ministering authority under section 803(b) is imposition of countermeasures with respect pended under paragraph (1), and the admin- negative, and its final determination under to that producer under section 807, istering authority determines that the for- subsection (a) is affirmative, then the final ‘‘(B) payment made after the deadline de- eign producer concerned has materially vio- determination by the Commission under this scribed in paragraph (1) shall be subject to lated the terms of the agreement under para- subsection shall be made within 75 days after interest charges at the Commercial Interest graph (1), the administering authority shall the date of that affirmative final determina- Reference Rate (CIRR), and terminate the suspension. tion. ‘‘(C) the foreign producer may request an ‘‘SEC. 807. IMPOSITION OF COUNTERMEASURES. ‘‘(c) EFFECT OF FINAL DETERMINATIONS.— extension of the due date for payment under ‘‘(1) EFFECT OF AFFIRMATIVE DETERMINA- subsection (b). ‘‘(a) GENERAL RULE.— TION BY THE ADMINISTERING AUTHORITY.—If ‘‘(b) EXTENSION OF DUE DATE FOR PAYMENT ‘‘(1) ISSUANCE OF ORDER IMPOSING COUNTER- the determination of the administering au- IN EXTRAORDINARY CIRCUMSTANCES.— MEASURES.—Unless an injurious pricing order thority under subsection (a) is affirmative, ‘‘(1) EXTENSION.—Upon request, the admin- is revoked or suspended under section 806(d) then the administering authority shall— istering authority may amend the order or (e), the administering authority shall ‘‘(A) make available to the Commission all under subsection (a) to set a due date for issue an order imposing countermeasures. information upon which such determination payment or payments later than the date ‘‘(2) CONTENTS OF ORDER.—The counter- was based and which the Commission consid- that is 180 days from the date of publication measure order shall— ers relevant to its determination, under such of the order, if the administering authority ‘‘(A) state that, as provided in section 468, procedures as the administering authority determines that full payment in 180 days a permit to lade or unlade passengers or mer- and the Commission may establish to pre- would render the producer insolvent or chandise may not be issued with respect to vent disclosure, other than with the consent would be incompatible with a judicially su- vessels contracted to be built by the foreign of the party providing it or under protective pervised reorganization. When an extended producer of the vessel with respect to which order, of any information as to which con- payment schedule provides for a series of an injurious pricing order was issued under fidential treatment has been given by the ad- partial payments, the administering author- section 806, and ministering authority, and ity shall specify the circumstances under ‘‘(B) specify the scope and duration of the ‘‘(B) calculate an injurious pricing charge which default on one or more payments will prohibition on the issuance of a permit to in an amount equal to the amount by which result in the imposition of countermeasures. lade or unlade passengers or merchandise. the normal value exceeds the export price of ‘‘(2) INTEREST CHARGES.—If a request is ‘‘(b) NOTICE OF INTENT TO IMPOSE COUNTER- the subject vessel. granted under paragraph (1), payments made MEASURES.— ‘‘(2) ISSUANCE OF ORDER; EFFECT OF NEGA- after the date that is 180 days from the publi- ‘‘(1) GENERAL RULE.—The administering TIVE DETERMINATION.—If the determinations cation of the order shall be subject to inter- authority shall issue a notice of intent to of the administering authority and the Com- est charges at the CIRR. impose countermeasures not later than 30 mission under subsections (a)(1) and (b)(1) ‘‘(c) NOTIFICATION OF ORDER.—The admin- days before the expiration of the time for are affirmative, then the administering au- istering authority shall deliver a copy of the payment specified in the injurious pricing thority shall issue an injurious pricing order order requesting payment to the foreign pro- order (or extended payment provided for under section 806. If either of such deter- ducer of the subject vessel and to an appro- under section 806(b)), and shall publish the minations is negative, the investigation priate representative of the government of notice in the Federal Register within 7 days shall be terminated upon the publication of the exporting country. after issuing the notice. notice of that negative determination. ‘‘(d) REVOCATION OF ORDER.—The admin- ‘‘(2) ELEMENTS OF THE NOTICE OF INTENT.— ‘‘(d) PUBLICATION OF NOTICE OF DETERMINA- istering authority— The notice of intent shall contain at least TIONS.—Whenever the administering author- ‘‘(1) may revoke an injurious pricing order the following elements: ity or the Commission makes a determina- if the administering authority determines ‘‘(A) SCOPE.—A permit to lade or unlade tion under this section, it shall notify the that producers accounting for substantially passengers or merchandise may not be issued petitioner, other parties to the investiga- all of the capacity to produce a domestic with respect to any vessel— tion, and the other agency of its determina- like vessel have expressed a lack of interest ‘‘(i) built by the foreign producer subject tion and of the facts and conclusions of law in the order, and to the proposed countermeasures, and upon which the determination is based, and ‘‘(2) shall revoke an injurious pricing ‘‘(ii) with respect to which the material it shall publish notice of its determination in order— terms of sale are established within a period the Federal Register. ‘‘(A) if the sale of the vessel that was the of 4 consecutive years beginning on the date ‘‘(e) CORRECTION OF MINISTERIAL ERRORS.— subject of the injurious pricing determina- that is 30 days after publication in the Fed- The administering authority shall establish tion is voided, eral Register of the notice of intent de- procedures for the correction of ministerial ‘‘(B) if the injurious pricing charge is paid scribed in paragraph (1). errors in final determinations within a rea- in full, including any interest accrued for ‘‘(B) DURATION.—For each vessel described sonable time after the determinations are is- late payment, in subparagraph (A), a permit to lade or sued under this section. Such procedures ‘‘(C) upon full implementation of an alter- unlade passengers or merchandise may not shall ensure opportunity for interested par- native equivalent remedy described in sub- be issued for a period of 4 years after the ties to present their views regarding any section (e), or date of delivery of the vessel. such errors. As used in this subsection, the ‘‘(D) if, with respect to the vessel sale that ‘‘(c) DETERMINATION TO IMPOSE COUNTER- term ‘ministerial error’ includes errors in was at issue in the investigation that re- MEASURES; ORDER.— addition, subtraction, or other arithmetic sulted in the injurious pricing order, an anti- ‘‘(1) GENERAL RULE.—The administering function, clerical errors resulting from inac- dumping proceeding conducted by a WTO authority shall, within the time specified in curate copying, duplication, or the like, and member who is not a Shipbuilding Agree- paragraph (2), issue a determination and any other type of unintentional error which ment Party has been completed and resulted order imposing countermeasures. the administering authority considers min- in the imposition of antidumping measures. ‘‘(2) TIME FOR DETERMINATION.—The deter- isterial. ‘‘(e) ALTERNATIVE EQUIVALENT REMEDY.— mination shall be issued within 90 days after April 22, 1997 CONGRESSIONAL RECORD — SENATE S3443

the date on which the notice of intent to im- ‘‘(B) OTHER REQUESTS.—If the request seeks ‘‘(D) The last-known registry of the vessel. pose countermeasures under subsection (b) is an extension under paragraph (1) other than ‘‘(E) The name and address of the last- published in the Federal Register. The ad- one described in subparagraph (A), the re- known owner of the vessel. ministering authority shall publish the de- quest shall be filed not earlier than the date ‘‘(F) The delivery date of the vessel. termination, and the order described in para- that is 6 months, and not later than a date ‘‘(G) The remaining duration of counter- graph (4), in the Federal Register within 7 that is 3 months, before the date that marks measures on the vessel. days after issuing the final determination, the end of the period referred to in subpara- ‘‘(H) Any other identifying information and shall provide a copy of the determina- graph (A). available. tion and order to the Customs Service. ‘‘(3) DETERMINATION.— ‘‘(3) AMENDMENT OF LIST.—The administer- ‘‘(3) CONTENT OF THE DETERMINATION.—In ‘‘(A) NOTICE OF REQUEST FOR EXTENSION.—If ing authority may amend the list from time the determination imposing counter- a proper request has been received under to time to reflect new information that measures, the administering authority shall paragraph (1), the administering authority comes to its attention and shall publish any determine whether, in light of all of the cir- shall publish notice of initiation of an exten- amendments in the Federal Register. cumstances, an interested party has dem- sion proceeding in the Federal Register not ‘‘(4) SERVICE OF LIST AND AMENDMENTS.— onstrated that the scope or duration of the later than 15 days after the applicable dead- ‘‘(A) SERVICE OF LIST.—The administering countermeasures described in subsection line in paragraph (2) for requesting the ex- authority shall serve a copy of the list de- (b)(2) should be narrower or shorter than the tension. scribed in paragraph (1) on— scope or duration set forth in the notice of ‘‘(B) PROCEDURES.— ‘‘(i) the petitioner under section 802(b), intent to impose countermeasures. ‘‘(i) REQUEST FOR EXTENSION BEYOND 4 ‘‘(ii) the United States Customs Service, ‘‘(4) ORDER.—At the same time it issues its YEARS.—If paragraph (2)(A) applies to the re- ‘‘(iii) the Secretariat of the Organization determination, the administering authority quest, the administering authority shall con- for Economic cooperation and Development, shall issue an order imposing counter- sult with the Trade Representative under ‘‘(iv) the owners of vessels on the list, measures, consistent with its determination paragraph (4). ‘‘(v) the shipyards on the list, and. under paragraph (1). ‘‘(ii) OTHER REQUESTS.—If paragraph (2)(B) ‘‘(vi) the government of the country in ‘‘(d) ADMINISTRATIVE REVIEW OF DETER- applies to the request, the administering au- which a shipyard on the list is located. MINATION TO IMPOSE COUNTERMEASURES.— thority shall determine, within 90 days after ‘‘(B) SERVICE OF AMENDMENTS.—The admin- ‘‘(1) REQUEST FOR REVIEW.—Each year, in the date on which the notice of initiation of istering authority shall serve a copy of any the anniversary month of the issuance of the the proceeding is published, whether the re- amendments to the list under paragraph (3) order imposing countermeasures under sub- questing party has demonstrated that the or subsection (g)(3) on— section (c), the administering authority shall scope or duration of the countermeasures is ‘‘(i) the parties listed in clauses (i), (ii), publish in the Federal Register a notice pro- inadequate in light of all of the cir- and (iii) of subparagraph (A), and viding that interested parties may request— cumstances. If the administering authority ‘‘(ii) if the amendment affects their inter- ‘‘(A) a review of the scope or duration of determines that an extension is warranted, ests, the parties listed in clauses (iv), (v), the countermeasures determined under sub- it shall amend the countermeasure order ac- and (vi) of subparagraph (A). section (c)(3), and cordingly. The administering authority shall ‘‘(g) ADMINISTRATIVE REVIEW OF LIST OF ‘‘(B) a hearing in connection with such a promptly publish the determination and any VESSELS SUBJECT TO COUNTERMEASURES.— review. amendment to the order in the Federal Reg- ‘‘(1) REQUEST FOR REVIEW.— ‘‘(2) REVIEW.—If a proper request has been ister, and shall provide a copy of any amend- ‘‘(A) IN GENERAL.—An interested party may received under paragraph (1), the administer- ed order to the Customs Service. request in writing a review of the list de- ing authority shall— ‘‘(4) CONSULTATION WITH TRADE REPRESENT- scribed in subsection (f)(1), including any ‘‘(A) publish notice of initiation of a review ATIVE.—If paragraph (3)(B)(i) applies, the ad- amendments thereto, to determine wheth- in the Federal Register not later than 15 ministering authority shall consult with the er— days after the end of the anniversary month Trade Representative concerning whether it ‘‘(i) a vessel included in the list does not of the issuance of the order imposing coun- would be appropriate to request establish- fall within the scope of the applicable coun- termeasures, and ment of a dispute settlement panel under the termeasure order and should be deleted, or ‘‘(B) review and determine whether the re- Shipbuilding Agreement for the purpose of ‘‘(ii) a vessel not included in the list falls questing party has demonstrated that the seeking authorization to extend the scope or within the scope of the applicable counter- scope or duration of the countermeasures is duration of countermeasures for a period in measure order and should be added. excessive in light of all of the circumstances. excess of 4 years. ‘‘(B) TIME FOR MAKING REQUEST.—Any re- ‘‘(3) TIME FOR REVIEW.—The administering ‘‘(5) DECISION NOT TO REQUEST PANEL.—If, quest seeking a determination described in authority shall make its determination based on consultations under paragraph (4), subparagraph (A)(i) shall be made within 90 under paragraph (2)(B) within 90 days after the Trade Representative decides not to re- days after the date of publication of the ap- the date on which the notice of initiation of quest establishment of a panel, the Trade plicable list. the review is published. If the determination Representative shall inform the party re- ‘‘(2) REVIEW.—If a proper request for review under paragraph (2)(B) is affirmative, the ad- questing the extension of the counter- has been received, the administering author- ministering authority shall amend the order measures of the reasons for its decision in ity shall— accordingly. The administering authority writing. The decision shall not be subject to ‘‘(A) publish notice of initiation of a review shall promptly publish the determination judicial review. in the Federal Register— and any amendment to the order in the Fed- ‘‘(6) PANEL PROCEEDINGS.—If, based on con- ‘‘(i) not later than 15 days after the request eral Register, and shall provide a copy of any sultations under paragraph (4), the Trade is received, or amended order to the Customs Service. In Representative requests the establishment of ‘‘(ii) if the request seeks a determination extraordinary circumstances, the admin- a panel under the Shipbuilding Agreement to described in paragraph (1)(A)(i), not later istering authority may extend the time for authorize an extension of the period of coun- than 15 days after the deadline described in its determination under paragraph (2)(B) to termeasures, and the panel authorizes such paragraph (1)(B), and not later than 150 days after the date on an extension, the administering authority ‘‘(B) review and determine whether the re- which the notice of initiation of the review shall promptly amend the countermeasure questing party has demonstrated that— is published. order. The administering authority shall ‘‘(i) a vessel included in the list does not ‘‘(e) EXTENSION OF COUNTERMEASURES.— publish notice of the amendment in the Fed- qualify for such inclusion, or ‘‘(1) REQUEST FOR EXTENSION.—Within the eral Register. ‘‘(ii) a vessel not included in the list quali- time described in paragraph (2), an inter- ‘‘(f) LIST OF VESSELS SUBJECT TO COUNTER- fies for inclusion. ested party may file with the administering MEASURES.— ‘‘(3) TIME FOR DETERMINATION.—The admin- authority a request that the scope or dura- ‘‘(1) GENERAL RULE.—At least once during istering authority shall make its determina- tion of countermeasures be extended. each 12-month period beginning on the anni- tion under paragraph (2)(B) within 90 days ‘‘(2) DEADLINE FOR REQUEST FOR EXTEN- versary date of a determination to impose after the date on which the notice of initi- SION.— countermeasures under this section, the ad- ation of such review is published. If the ad- ‘‘(A) REQUEST FOR EXTENSION BEYOND 4 ministering authority shall publish in the ministering authority determines that a ves- YEARS.—If the request seeks an extension Federal Register a list of all delivered ves- sel should be added or deleted from the list, that would cause the scope or duration of sels subject to countermeasures under the the administering authority shall amend the countermeasures to exceed 4 years, including determination. list accordingly. The administering author- any prior extensions, the request for exten- ‘‘(2) CONTENT OF LIST.—The list under para- ity shall promptly publish in the Federal sion under paragraph (1) shall be filed not graph (1) shall include the following informa- Register the determination and any such earlier than the date that is 15 months, and tion for each vessel, to the extent the infor- amendment to the list. not later than the date that is 12 months, be- mation is available: ‘‘(h) EXPIRATION OF COUNTERMEASURES.— fore the date that marks the end of the pe- ‘‘(A) The name and general description of Upon expiration of a countermeasure order riod that specifies the vessels that fall with- the vessel. imposed under this section, the administer- in the scope of the order by virtue of the es- ‘‘(B) The vessel identification number. ing authority shall promptly publish a no- tablishment of material terms of sale within ‘‘(C) The shipyard where the vessel was tice of the expiration in the Federal Reg- that period. constructed. ister. S3444 CONGRESSIONAL RECORD — SENATE April 22, 1997

‘‘(i) SUPENSION OR TERMINATION OF PRO- quirements by the Trade Representative, Party where the alleged injurious pricing is CEEDINGS OR COUNTERMEASURES; TEMPORARY notwithstanding any other provision of this occurring an application pursuant to Article REDUCTION OF COUNTERMEASURES.— title: 10 of Annex II to the Shipbuilding Agreement ‘‘(1) IF INJURIOUS PRICING ORDER REVOKED ‘‘(1) SALE AT LESS THAN FAIR VALUE.—The which requests that appropriate injurious OR SUSPENDED.—If an injurious pricing order administering authority shall determine pricing action under the law of that country had been revoked or suspended under section whether the subject vessel has been sold at be taken, on behalf of the United States, 806(d) or (e), the administering authority less than fair value. with respect to the sale of the vessel. shall, as appropriate, suspend or terminate ‘‘(2) INJURY TO INDUSTRY.—The Commission ‘‘(2) At the request of the Trade Represent- proceedings under this section with respect shall determine whether an industry in the ative, the appropriate officers of the Depart- to that order, or suspend or revoke a coun- petitioning country is or has been materially ment of Commerce and the United States termeasure order issued with respect to that injured by reason of the sale of the subject International Trade Commission shall assist injurious pricing order. vessel in the United States. the Trade Representative in preparing the ‘‘(2) IF PAYMENT DATE AMENDED.— ‘‘(d) PUBLIC COMMENT.—An opportunity for application under paragraph (1). ‘‘(A) SUSPENSION OF MODIFICATION OF DEAD- public comment shall be provided, as appro- ‘‘(c) CONSULTATION AFTER SUBMISSION OF LINE.—Subject to subparagraph (C), if the priate— APPLICATION.—After submitting an applica- payment date under an injurious pricing ‘‘(1) by the Trade Representative, in mak- tion under subsection (b)(1), the Trade Rep- order is amended under section 845, the ad- ing the determinations required by sub- resentative shall seek consultations with the ministering authority shall, as appropriate, section (b), and appropriate authority of the Shipbuilding suspend proceedings or modify deadlines ‘‘(2) by the administering authority and Agreement Party regarding the request for under this section, or suspend or amend a the Commission, in making the determina- injurious pricing action. countermeasure order issued with respect to tion required by subsection (c). ‘‘(d) ACTION UPON REFUSAL OF SHIPBUILD- that injurious pricing order. ‘‘(e) ISSUANCE OF ORDER.—If the admin- ING AGREEMENT PARTY TO ACT.—If the appro- ‘‘(B) DATE FOR APPLICATION OF COUNTER- istering authority makes an affirmative de- priate authority of the Shipbuilding Agree- MEASURE.—In taking action under subpara- termination under paragraph (1) of sub- ment Party refuses to undertake injurious graph (A), the administering authority shall section (c) and the Commission makes an af- pricing measures in response to a request ensure that countermeasures are not applied firmative determination under paragraph (2) made therefor by the Trade Representative before the date that is 30 days after publica- of subsection (c), the administering author- under subsection (b) of this section, the tion in the Federal Register of the amended ity shall— Trade Representative promptly shall consult payment date. ‘‘(1) order an injurious pricing charge in with the domestic industry on whether ac- ‘‘(C) REINSTITUTION OF PROCEEDINGS.—If— accordance with section 806, and tion under any other law of the United ‘‘(i) a countermeasure order is issued under ‘‘(2) make such determinations and take States is appropriate. subsection (c) before an amendment is made such other actions as are required by sec- ‘‘Subtitle B—Special Rules under section 845 to the payment date of the tions 806 and 807, as if affirmative determina- ‘‘SEC. 821. EXPORT PRICE. injurious pricing order to which the counter- tions had been made under subsections (a) ‘‘(a) EXPORT PRICE.—For purposes of this measure order applies, and and (b) of section 805. title, the term ‘export price’ means the price ‘‘(ii) the administering authority deter- ‘‘(f) REVIEWS OF DETERMINATIONS.—For at which the subject vessel is first sold (or mines that the period of time between the purposes of review under section 516B, if an agreed to be sold) by or for the account of original payment date and the amended pay- order is issued under subsection (e)— the foreign producer of the subject vessel to ment date is significant for purposes of de- ‘‘(1) the final determinations of the admin- an unaffiliated United States buyer. The termining the appropriate scope or duration istering authority and the Commission under term ‘sold (or agreed to be sold) by or for the of countermeasures, subsection (c) shall be treated as final deter- account of the foreign producer’ includes any the administering authority may, in lieu of minations made under section 805, and transfer of an ownership interest, including acting under subparagraph (A), reinstitute ‘‘(2) determinations of the administering by way of lease or long-term bareboat char- proceedings under subsection (c) for purposes authority under subsection (e)(2) shall be ter, in conjunction with the original transfer of issuing new determination under that sub- treated as determinations made under sec- from the producer, either directly or indi- section. tion 806 and 807, as the case may be. rectly, to a United States buyer. ‘‘(j) COMMENT AND HEARING.—In the course ‘‘(g) ACCESS TO INFORMATION.—Section 843 ‘‘(b) ADJUSTMENTS TO EXPORT PRICE.—The of any proceeding under subsection (c), (d), shall apply to investigations under this sec- price used to establish export price shall be— (e), or (g), the administering authority— tion, to the extent specified by the Trade ‘‘(1) increased by the amount of any import ‘‘(1) shall solicit comments from interested Representative, after consultation with the duties imposed by the country of exportation parties, and administering authority and the Commis- which have been rebated, or which have not ‘‘(2)(A) in a preceding under subsection (c), sion. been collected, by reason of the exportation (d), or (e), upon the request of an interested ‘‘SEC. 809. THIRD COUNTRY INJURIOUS PRICING. of the subject vessel, and party, shall hold a hearing in accordance ‘‘(a) PETITION BY DOMESTIC INDUSTRY.— ‘‘(2) reduced by— with section 841(b) in connection with that ‘‘(1) With respect to the sale of a vessel to ‘‘(A) the amount, if any, included in such proceeding, or a buyer in a Shipbuilding Agreement Party, price, attributable to any additional costs, ‘‘(B) in a proceeding under subsection (g), any interested party who would be eligible to charges, or expenses which are incident to upon the request of an interested party, may file a petition under section 802(b)(1) with re- bringing the subject vessel from the shipyard hold a hearing in accordance with section spect to the sale if it had been to a United in the exporting country to the place of de- 841(b) in connection with that proceeding. States buyer, if it has reason to believe livery, ‘‘(B) the amount, if included in such price, ‘‘SEC. 808. INJURIOUS PRICING PETITIONS BY that— ‘‘(A) the vessel has been sold at less than of any export tax, duty, or other charge im- THIRD COUNTRIES. posed by the exporting country on the expor- ‘‘(a) FILING OF PETITION.—The government fair value; and ‘‘(B) an industry in the United States is or tation of the subject vessel, and of a Shipbuilding Agreement Party may file ‘‘(C) all other expenses incidental to plac- has been materially injured, or is threatened with the Trade Representative a petition re- ing the vessel in condition for delivery to the with material injury by reason of the sale of questing that an investigation be conducted buyer. the vessel; to determine if— ‘‘SEC. 822. NORMAL VALUE. ‘‘(1) a vessel from another Shipbuilding may submit a petition to the Trade Rep- ‘‘(a) DETERMINATION.—In determining Agreement Party has been sold directly or resentative that alleges the elements re- under this title whether a subject vessel has indirectly to one or more United States buy- ferred to in subparagraphs (A) and (B) and been sold at less than fair value, a fair com- ers at less than fair value, and requests the Trade Representative to take parison shall be made between the export ‘‘(2) an industry, in the petitioning coun- action under subsection (b) of this section on price and normal value of the subject vessel. try, producing or capable of producing a like behalf of the domestic industry. In order to achieve a fair comparison with vessel is materially injured by reason of such ‘‘(2) A petition submitted under paragraph the export price, normal value shall be deter- sale. (1) shall contain such detailed information mined as follows: ‘‘(b) INITIATION.—The Trade Representa- as the Trade Representative may require in ‘‘(1) DETERMINATION OF NORMAL VALUE.— tive, after consultation with the administer- support of the allegations in the petition. ‘‘(A) IN GENERAL.—The normal value of the ing authority and the Commission and ob- ‘‘(b) APPLICATION FOR INJURIOUS PRICING subject vessel shall be the price described in taining the approval of the Parties Group ACTION ON BEHALF OF THE DOMESTIC INDUS- subparagraph (B), at a time reasonably cor- under the Shipbuilding Agreement, shall de- TRY.— responding to the time of the sale used to de- termine whether to initiate an investigation ‘‘(1) If the Trade Representative, on the termine the export price under section 821(a). described in subsection (a). basis of the information contained in a peti- ‘‘(B) PRICE.—The price referred to in sub- ‘‘(c) DETERMINATIONS.—Upon initiation of tion submitted under subsection (a), deter- paragraph (A) is— an investigation under subsection (a), the mines that there is a reasonable basis for the ‘‘(i) the price at which a foreign like vessel Trade Representative shall request the fol- allegations in the petition, the Trade Rep- is first sold in the exporting country, in the lowing determinations be made in accord- resentative shall submit to the appropriate ordinary course of trade and, to the extent ance with substantive and procedural re- authority of the Shipbuilding Agreement practicable, at the same level of trade, or April 22, 1997 CONGRESSIONAL RECORD — SENATE S3445 ‘‘(ii) in a case to which subparagraph (C) price differences between sales at different ‘‘(B) the administering authority finds applies, the price at which a foreign like ves- levels of trade in the country in which nor- that available information does not permit sel is so sold for consumption in a country mal value is determined. the normal value of the subject vessel to be other than the exporting country or the In a case described in the preceding sentence, determined under subsection (a), United States, if— the amount of the adjustment shall be based the administering authority shall determine ‘‘(I) such price is representative, and on the price differences between the two lev- the normal value of the subject vessel on the ‘‘(II) the administering authority does not els of trade in the country in which normal basis of the value of the factors of produc- determine that the particular market situa- value is determined. tion utilized in producing the vessel and to tion in such other country prevents a proper ‘‘(7) ADJUSTMENTS TO CONSTRUCTED which shall be added an amount for general comparison with the export price. VALUE.—Constructed value as determined expenses and profit plus the cost of expenses ‘‘(C) THIRD COUNTRY SALES.—This subpara- under subsection (e) may be adjusted, as ap- incidental to placing the vessel in a condi- graph applies when— ‘‘(i) a foreign like vessel is not sold in the propriate, pursuant to this subsection. tion for delivery to the buyer. Except as pro- exporting country as described in subpara- ‘‘(b) SALES AT LESS THAN COST OF PRODUC- vided in paragraph (2), the valuation of the graph (B)(i), or TION.— factors of production shall be based on the ‘‘(ii) the particular market situation in the ‘‘(1) DETERMINATION; SALES DISREGARDED.— best available information regarding the val- exporting country does not permit a proper Whenever the administering authority has ues of such factors in a market economy comparison with the export price. reasonable grounds to believe or suspect that country or countries considered to be appro- ‘‘(D) CONTEMPORANEOUS SALE.—For pur- the sale of the foreign like vessel under con- priate by the administering authority. poses of subparagraph (A), ‘a time reason- sideration for the determination of normal ‘‘(2) EXCEPTION.—If the administering au- ably corresponding to the time of the sale’ value has been made at a price which rep- thority finds that the available information means within 3 months before or after the resents less than the cost of production of is inadequate for purposes of determining the sale of the subject vessel or, in the absence the foreign like vessel, the administering au- normal value of the subject vessel under of such sales, such longer period as the ad- thority shall determine whether, in fact, paragraph (1), the administering authority ministering authority determines would be such sale was made at less than the cost of shall determined the normal value on the appropriate. production. If the administering authority basis of the price at which a vessel that is— ‘‘(2) FICTITIOUS MARKETS.—No pretended determines that the sale was made at less ‘‘(A) comparable to the subject vessel, and sale, and no sale intended to establish a ficti- than the cost of production and was not at a ‘‘(B) produced in one or more market econ- tious market, shall be taken into account in price which permits recovery of all costs omy countries that are at a level of eco- determining normal value. within 5 years, such sale may be disregarded nomic development comparable to that of ‘‘(3) USE OF CONSTRUCTED VALUE.—If the ad- in the determination of normal value. the nonmarket economy country, is sold in ministering authority determines that the Whereas such a sale is disregarded, normal other countries, including the United States. normal value of the subject vessel cannot be value shall be based on another sale of a for- ‘‘(3) FACTORS OF PRODUCTION.—For purposes determined under paragraph (1)(B) or (1)(C), eign like vessel in the ordinary course of of paragraph (1), the factors of production then the normal value of the subject vessel trade. If no sales made in the ordinary utilized in producing the vessel include, but shall be the constructed value of that vessel, course of trade remain, the normal value are not limited to— as determined under subsection (e). shall be based on the constructed value of ‘‘(A) hours of labor required, ‘‘(4) INDIRECT SALES.—If a foreign like ves- the subject vessel. ‘‘(B) quantities of raw materials employed, sel is sold through an affiliated party, the ‘‘(2) DEFINITIONS AND SPECIAL RULES.—For ‘‘(C) amounts of energy and other utilities price at which the foreign like vessel is sold purposes of this subsection: consumed, and by such affiliated party may be used in de- ‘‘(A) REASONABLE GROUNDS TO BELIEVE OR ‘‘(D) representative capital cost, including termining normal value. SUSPECT.—There are reasonable grounds to depreciation. ‘‘(5) ADJUSTMENTS.—The price described in believe or suspect that the sale of a foreign ‘‘(4) VALUATION OF FACTORS OF PRODUC- paragraph (1)(B) shall be— like vessel was made at a price that is less TION.—The administering authority, in valu- ‘‘(A) reduced by— than the cost of production of the vessel, if ing factors of production under paragraph ‘‘(i) the amount, if any, included in the an interested party described in subpara- (1), shall utilize, to the extent possible, the price described in paragraph (1)(B), attrib- graph (C), (D), (E), or (F) of section 861(17) prices or costs of factors of production in one utable to any costs, charges, and expenses provides information, based upon observed or more market economy countries that incident to bringing the foreign like vessel prices or constructed prices or costs, that are— from the shipyard to the place of delivery to the sale of the foreign like vessel under con- ‘‘(A) at a level of economic development the purchaser, sideration for the determination of normal comparable to that of the nonmarket econ- ‘‘(ii) the amount of any taxes imposed di- value has been made at a price which rep- omy country, and rectly upon the foreign like vessel or compo- resents less than the cost of production of ‘‘(B) significant producers of comparable nents thereof which have been rebated, or the vessel. vessels. which have not been collected, on the subject ‘‘(B) RECOVERY OF COSTS.—If the price is ‘‘(d) SPECIAL RULE FOR CERTAIN MULTI- vessel, but only to the extent that such taxes below the cost of production at the time of NATIONAL CORPORATIONS.—Whenever, in the are added to or included in the price of the sale but is above the weighted average cost course of an investigation under this title, foreign like vessel, and of production for the period of investigation, the administering authority determines ‘‘(iii) the amount of all other expenses in- such price shall be considered to provide for that— cidental to placing the foreign like vessel in recovery of costs within 5 years. ‘‘(1) the subject vessel was produced in fa- condition for delivery to the buyer, and ‘‘(3) CALCULATION OF COST OF PRODUCTION.— cilities which are owned or controlled, di- ‘‘(B) increased or decreased by the amount For purposes of this section, the cost of pro- rectly or indirectly, by a person, firm, or of any difference (or lack thereof) between duction shall be an amount equal to the sum corporation which also owns or controls, di- the export price and the price described in of— rectly or indirectly, other facilities for the paragraph (1)(B) (other than a difference for ‘‘(A) the cost of materials and of fabrica- production of a foreign like vessel which are which allowance is otherwise provided under tion or other processing of any kind em- located in another country or countries, this section) that is established to the satis- ployed in producing the foreign like vessel, ‘‘(2) subsection (a)(1)(C) applies, and faction of the administering authority to be during a period which would ordinarily per- ‘‘(3) the normal value of a foreign like ves- wholly or partly due to— mit the production of that vessel in the ordi- sel produced in one or more of the facilities ‘‘(i) physical differences between the sub- outside the exporting country is higher than ject vessel and the vessel used in determin- nary course of business, and ‘‘(B) an amount for selling, general, and the normal value of the foreign like vessel ing normal value, or produced in the facilities located in the ex- ‘‘(ii) other differences in the circumstances administrative expenses based on actual data porting country, of sale. pertaining to the production and sale of the ‘‘(6) ADJUSTMENTS FOR LEVEL OF TRADE.— foreign like vessel by the producer in ques- the administering authority shall deter- The price described in paragraph (1)(B) shall tion. mined the normal value of the subject vessel also be increased or decreased to make due For purposes of subparagraph (A), if the by reference to the normal value at which a allowance for any difference (or lack thereof) normal value is based on the price of the for- foreign like vessel is sold from one or more between the export price and the price de- eign like vessel sold in a country other than facilities outside the exporting country. The scribed in paragraph (1)(B) (other than a dif- the exporting country, the cost of materials administering authority, in making any de- ference for which allowance is otherwise shall be determined without regard to any termination under this subsection, shall made under this section) that is shown to be internal tax in the exporting country im- make adjustments for the difference between wholly or partly due to a difference in level posed on such materials or on their disposi- the costs of production (including taxes, of trade between the export price and normal tion which are remitted or refunded upon ex- labor, materials, and overhead) of the foreign value, if the difference in level of trade— portation. like vessel produced in facilities outside the ‘‘(A) involves the performance of different ‘‘(c) NONMARKET ECONOMY COUNTRIES.— exporting country and costs of production of selling activities, and ‘‘(1) IN GENERAL.—If— the foreign like vessel produced in facilities ‘‘(B) is demonstrated to affect price com- ‘‘(A) the subject vessel is produced in a in the exporting country, if such differences parability, based on a pattern of consistent nonmarket economy country, and are demonstrated to its satisfaction. S3446 CONGRESSIONAL RECORD — SENATE April 22, 1997

‘‘(e) CONSTRUCTED VALUE.— ‘‘(A) IN GENERAL.—Costs shall normally be ‘‘(3) MAJOR INPUT RULE.—If, in the case of a ‘‘(1) IN GENERAL.—For purposes of this calculated based on the records of the for- transaction between affiliated persons in- title, the constructed value of a subject ves- eign producer of the subject vessel, if such volving the production by one of such per- sel shall be an amount equal to the sum of— records are kept in accordance with the gen- sons of a major input to the subject vessel, ‘‘(A) the cost of materials and fabrication erally accepted accounting principles of the the administering authority has reasonable or other processing of any kind employed in exporting country and reasonably reflect the grounds to believe or suspect that an amount producing the subject vessel, during a period costs associated with the production and sale represented as the value of such input is less which would ordinarily permit the produc- of the vessel. The administering authority than the cost of production of such input, tion of the vessel in the ordinary course of shall consider all available evidence on the then the administering authority may deter- business, and proper allocation of costs, including that mine the value of the major input on the ‘‘(B)(i) the actual amounts incurred and re- which is made available by the foreign pro- basis of the information available regarding alized by the foreign producer of the subject ducer on a timely basis, if such allocations such cost of production, if such cost is great- vessel for selling, general, and administra- have been historically used by the foreign er than the amount that would be deter- tive expenses, and for profits, in connection producer, in particular for establishing ap- mined for such input under paragraph (2). with the production and sale of a foreign like propriate amortization and depreciation pe- ‘‘SEC. 823. CURRENCY CONVERSION. vessel, in the ordinary course of trade, in the riods, and allowances for capital expendi- ‘‘(a) IN GENERAL.—In an injurious pricing domestic market of the country of origin of tures and other development costs. proceeding under this title, the administer- ‘‘(B) NONRECURRING COSTS.—Costs shall be the subject vessel, or ing authority shall convert foreign cur- ‘‘(ii) if actual data are not available with adjusted appropriately for those non- rencies into United States dollars using the respect to the amounts described in clause recurring costs that benefit current or future exchange rate in effect on the date of sale of (i), then— production, or both. the subject vessel, except that if it is estab- ‘‘(I) the actual amounts incurred and real- ‘‘(C) STARTUP COSTS.— lished that a currency transaction on for- ized by the foreign producer of the subject ‘‘(i) IN GENERAL.—Costs shall be adjusted ward markets is directly linked to a sale vessel for selling, general, and administra- appropriately for circumstances in which under consideration, the exchange rate speci- tive expenses, and for profits, in connection costs incurred during the time period cov- fied with respect to such foreign currency in with the production and sale of the same ered by the investigation are affected by the forward sale agreement shall be used to general category of vessel in the domestic startup operations. convert the foreign currency. market of the country of origin of the sub- ‘‘(ii) STARTUP OPERATIONS.—Adjustments ‘‘(b) DATE OF SALE.—For purposes of this ject vessel, shall be made for startup operations only ‘‘(II) the weighted average of the actual where— section, ‘date of sale’ means the date of the amounts incurred and realized by producers ‘‘(I) a producer is using new production fa- contract of sale or, where appropriate, the in the country of origin of the subject vessel cilities or producing a new type of vessel date on which the material terms of sale are (other than the producer of the subject ves- that requires substantial additional invest- otherwise established. If the material terms sel) for selling, general, and administrative ment, and of sale are significantly changed after such expenses, and for profits, in connection with ‘‘(II) production levels are limited by tech- date, the date of sale is the date of such the production and sale of a foreign like ves- nical factors associated with the initial change. In the case of such a change in the sel, in the ordinary course of trade, in the phase of commercial production. date of sale, the administering authority domestic market, or For purposes of subclause (II), the initial shall make appropriate adjustments to take ‘‘(III) if data are not available under sub- phase of commercial production ends at the into account any unreasonable effect on the clause (I) or (II), the amounts incurred and end of the startup period. In determining injurious pricing margin due only to fluctua- realized for selling, general, and administra- whether commercial production levels have tions in the exchange rate between the origi- tive expenses, and for profits, based on any been achieved, the administering authority nal date of sale and the new date of sale. other reasonable method, except that the shall consider factors unrelated to startup ‘‘Subtitle C—Procedures amount allowed for profit may not exceed operations that might affect the volume of ‘‘SEC. 841. HEARINGS. production processed, such as demand, the amount normally realized by foreign pro- ‘‘(a) UPON REQUEST.—The administering seasonality, or business cycles. ducers (other than the producer of the sub- authority and the Commission shall each ‘‘(iii) ADJUSTMENT FOR STARTUP OPER- ject vessel) in connection with the sale of hold a hearing in the course of an investiga- vessels in the same general category of ves- ATIONS.—The adjustment for startup oper- ations shall be made by substituting the unit tion under this title, upon the request of any sel as the subject vessel in the domestic mar- party to the investigation, before making a ket of the country of origin of the subject production costs incurred with respect to the vessel at the end of the startup period for the final determination under section 805. vessel. ‘‘(b) PROCEDURES.—Any hearing required or For purposes of this paragraph, the profit unit production costs incurred during the startup period. If the startup period extends permitted under this title shall be conducted shall be based on the average profit realized after notice published in the Federal Reg- over a reasonable period of time before and beyond the period of the investigation under this title, the administering authority shall ister, and a transcript of the hearing shall be after the sale of the subject vessel and shall prepared and made available to the public. reflect a reasonable profit at the time of use the most recent cost of production data that it reasonably can obtain, analyze, and The hearing shall not be subject to the provi- such sale. For purposes of the preceding sen- sions of subchapter II of chapter 5 of title 5, tence, a ‘reasonable period of time’ shall not, verify without delaying the timely comple- tion of the investigation. United States Code, or to section 702 of such except where otherwise appropriate, exceed 6 title. months before, or 6 months after, the sale of For purposes of this subparagraph, the start- the subject vessel. In calculating profit up period ends at the point at which the ‘‘SEC. 842. DETERMINATIONS ON THE BASIS OF THE FACTS AVAILABLE. under this paragraph, any distortion which level of commercial production that is char- ‘‘(a) IN GENERAL.— would result in other than a profit which is acteristic of the vessel, the producer, or the ‘‘(1) necessary information is not available reasonable at the time of the sale shall be industry is achieved. on the record, or eliminated. ‘‘(D) COSTS DUE TO EXTRAORDINARY CIR- ‘‘(2) an interested party or any other per- ‘‘(2) COSTS AND PROFITS BASED ON OTHER CUMSTANCES NOT INCLUDED.—Costs shall not son— REASONABLE METHODS.—When costs and prof- include actual costs which are due to ex- its are determined under paragraph traordinary circumstances (including, but ‘‘(A) withholds information that has been (1)(B)(ii)(III), such determination shall, ex- not limited to, labor disputes, fire, and natu- requested by the administering authority or cept where otherwise appropriate, be based ral disasters) and which are significantly the Commission under this title, on appropriate export sales by the producer over the cost increase which the shipbuilder ‘‘(B) fails to provide such information by of the subject vessel or, absent such sales, to could have reasonably anticipated and taken the deadlines for the submission of the infor- export sales by other producers of a foreign into account at the time of sale. mation or in the form and manner requested, like vessel or the same general category of ‘‘(2) TRANSACTIONS DISREGARDED.—A trans- subject to subsections (b)(1) and (d) of sec- vessel as the subject vessel in the country of action directly or indirectly between affili- tion 844, origin of the subject vessel. ated persons may be disregarded if, in the ‘‘(C) significantly impedes a proceeding under this title, or ‘‘(3) COSTS OF MATERIALS.—For purposes of case of any element of value required to be paragraph (1)(A), the cost of materials shall considered, the amount representing that ‘‘(D) provides such information but the in- be determined without regard to any inter- element does not fairly reflect the amount formation cannot be verified as provided in nal tax in the exporting country imposed on usually reflected in sales of a like vessel in section 844(g), such materials or their disposition which are the market under consideration. If a trans- the administering authority and the Com- remitted or refunded upon exportation of the action is disregarded under the preceding mission shall, subject to section 844(c), use subject vessel produced from such materials. sentence and no other transactions are avail- the facts otherwise available in reaching the ‘‘(f) SPECIAL RULES FOR CALCULATION OF able for consideration, the determination of applicable determination under this title. COST OF PRODUCTION AND FOR CALCULATION the amount shall be based on the informa- ‘‘(b) ADVERSE INFERENCES.—If the admin- OF CONSTRUCTED VALUE.—For purposes of tion available as to what the amount would istering authority or the Commission (as the subsections (b) and (e)— have been if the transaction had occurred be- case may be) finds that an interested party ‘‘(1) COSTS.— tween persons who are not affiliated. has failed to cooperate by not acting to the April 22, 1997 CONGRESSIONAL RECORD — SENATE S3447 best of its ability to comply with a request ‘‘(i) to an officer or employee of the admin- tion is suspended or terminated. The Com- for information from the administering au- istering authority or the Commission who is mission may delay disclosure of customer thority or the Commission, the administer- directly concerned with carrying out the in- names (other than the name of the United ing authority or the Commission (as the case vestigation in connection with which the in- States buyer of the subject vessel) under pro- may be), in reaching the applicable deter- formation is submitted or any other proceed- tective order during any such investigation mination under this title, may use an infer- ing under this title covering the same sub- until a reasonable time before any hearing ence that is adverse to the interests of that ject vessel, or provided under section 841 is held. party in selecting from among the facts oth- ‘‘(ii) to an officer or employee of the Unit- ‘‘(B) PROTECTIVE ORDER.—The protective erwise available. Such adverse inference may ed States Customs Service who is directly in- order under which information is made include reliance on information derived volved in conducting an investigation re- available shall contain such requirements as from— garding fraud under this title. the administering authority or the Commis- ‘‘(1) the petition, or ‘‘(B) ADDITIONAL REQUIREMENTS.—The ad- sion may determine by regulation to be ap- ‘‘(2) any other information placed on the ministering authority and the Commission propriate. The administering authority and record. shall require that information for which pro- the Commission shall provide by regulation ‘‘(c) CORROBORATION OF SECONDARY INFOR- prietary treatment is requested be accom- for such sanctions as the administering au- MATION.—When the administering authority panied by— thority and the Commission determine to be or the Commission relies on secondary infor- ‘‘(i) either— appropriate, including disbarment from prac- mation rather than on information obtained ‘‘(I) a nonproprietary summary in suffi- tice before the agency. in the course of an investigation under this cient detail to permit a reasonable under- ‘‘(C) TIME LIMITATIONS ON DETERMINA- title, the administering authority and the standing of the substance of the information TIONS.—The administering authority or the Commission, as the case may be, shall, to submitted in confidence, or Commission, as the case may be, shall deter- the extent practicable, corroborate that in- ‘‘(II) a statement that the information is mine whether to make information available formation from independent sources that are not susceptible to summary, accompanied by under this paragraph— reasonably at their disposal. a statement of the reasons in support of the ‘‘(i) not later than 14 days (7 days if the contention, and ‘‘SEC. 843. ACCESS TO INFORMATION. submission pertains to a proceeding under ‘‘(ii) either— section 803(a)) after the date on which the in- ‘‘(a) INFORMATION GENERALLY MADE AVAIL- ‘‘(I) a statement which permits the admin- formation is submitted, or ABLE.— istering authority or the Commission to re- ‘‘(ii) if— ‘‘(1) PROGRESS OF INVESTIGATION REPORTS.— lease under administrative protective order, ‘‘(I) the person that submitted the infor- The administering authority and the Com- in accordance with subsection (c), the infor- mation raises objection to its release, or mission shall, from time to time upon re- mation submitted in confidence, or ‘‘(II) the information is unusually volumi- quest, inform the parties to an investigation ‘‘(II) a statement to the administering au- nous or complex, under this title of the progress of that inves- thority or the Commission that the business tigation. proprietary information is of a type that not later than 30 days (10 days if the submis- ‘‘(2) EX PARTE MEETINGS.—the administer- should not be released under administrative sion pertains to a proceeding under section ing authority and the Commission shall protective order. 803(a)) after the date on which the informa- maintain a record of any ex parte meeting ‘‘(2) UNWARRANTED DESIGNATION.—If the ad- tion is submitted. between— ministering authority or the Commission de- ‘‘(D) AVAILABILITY AFTER DETERMINATION.— ‘‘(A) interested parties or other persons termines, on the basis of the nature and ex- If the determination under subparagraph (C) providing factual information in connection tent of the information or its availability is affirmative, then— with a proceeding under this title, and from public sources, that designation of any ‘‘(i) the business proprietary information ‘‘(B) the person charged with making the information as proprietary is unwarranted, submitted to the administering authority or determination, or any person charged with then it shall notify the person who submit- the Commission on or before the date of the making a final recommendation to that per- ted it and ask for an explanation of the rea- determination shall be made available, sub- son, in connection with that proceeding, if sons for the designation. Unless that person ject to the terms and conditions of the pro- information relating to that proceeding was persuades the administering authority or the tective order, on such date, and presented or discussed at such meeting. The Commission that the designation is war- ‘‘(ii) the business proprietary information record of such an ex parte meeting shall in- ranted, or withdraws the designation, the ad- submitted to the administering authority or clude the identity of the persons present at ministering authority or the Commission, as the Commission after the date of the deter- the meeting, the date, time, and place of the the case may be, shall return it to the party mination shall be served as required by sub- meeting, and a summary of the matters dis- submitting it. In a case in which the admin- section (d). cussed or submitted. The record of the ex istering authority or the Commission re- ‘‘(E) FAILURE TO DISCLOSE.—If a person sub- parte meeting shall be included in the record turns the information to the person submit- mitting information to the administering of the proceeding. ting it, the person may thereafter submit authority refuses to disclose business propri- ‘‘(3) SUMMARIES; NONPROPRIETARY SUBMIS- other material concerning the subject mat- etary information which the administering SIONS.—The administering authority and the ter of the returned information if the sub- authority determines should be released Commission shall disclose— mission is made within the time otherwise under a protective order described in sub- ‘‘(A) any proprietary information received provided for submitting such material. paragraph (B), the administering authority in the course of a proceeding under this title ‘‘(c) LIMITED DISCLOSURE OF CERTAIN PRO- shall return the information, and any non- if it is disclosed in a form which cannot be PRIETARY INFORMATION UNDER PROTECTIVE confidential summary thereof, to the person associated with, or otherwise be used to ORDER.— submitting the information and summary identify, operations of a particular person, ‘‘(1) DISCLOSURE BY ADMINISTERING AUTHOR- and shall not consider either. and ITY OR COMMISSION.— ‘‘(2) DISCLOSURE UNDER COURT ORDER.—If ‘‘(B) any information submitted in connec- ‘‘(A) IN GENERAL.—Upon receipt of an appli- the administering authority or the Commis- tion with a proceeding which is not des- cation (before or after receipt of the infor- sion denies a request for information under ignated as proprietary by the person submit- mation requested) which describes in general paragraph (1), then application may be made ting it. terms the information requested and sets to the United States Court of International ‘‘(4) MAINTENANCE OF PUBLIC RECORD.—The forth the reasons for the request, the admin- Trade for an order directing the administer- administering authority and the Commission istering authority or the Commission shall ing authority or the Commission, as the case shall maintain and make available for public make all business proprietary information may be, to make the information available. inspection and copying a record of all infor- presented to, or obtained by it, during a pro- After notification of all parties to the inves- mation which is obtained by the administer- ceeding under this title (except privileged in- tigation and after an opportunity for a hear- ing authority or the Commission, as the case formation, classified information, and spe- ing on the record, the court may issue an may be, in a proceeding under this title to cific information of a type for which there is order, under such conditions as the court the extent that public disclosure of the infor- a clear and compelling need to withhold deems appropriate, which shall not have the mation is not prohibited under this chapter from disclosure) available to all interested effect of stopping or suspending the inves- or exempt from disclosure under section 552 parties who are parties to the proceeding tigation, directing the administering author- of title 5, United States Code. under a protective order described in sub- ity or the Commission to make all or a por- ‘‘(b) PROPRIETARY INFORMATION.— paragraph (B), regardless of when the infor- tion of the requested information described ‘‘(1) PROPRIETARY STATUS MAINTAINED.— mation is submitted during the proceeding. in the preceding sentence available under a ‘‘(A) IN GENERAL.—Except as provided in Customer names (other than the name of the protective order and setting forth sanctions subsection (a)(4) and subsection (c), informa- United States buyer of the subject vessel) ob- for violation of such order if the court finds tion submitted to the administering author- tained during any investigation which re- that, under the standards applicable in pro- ity or the Commission which is designated as quires a determination under section 805(b) ceedings of the court, such an order is war- proprietary by the person submitting the in- may not be disclosed by the administering ranted, and that— formation shall not be disclosed to any per- authority under protective order until either ‘‘(A) the administering authority or the son without the consent of the person sub- an order is published under section 806(a) as Commission has denied access to the infor- mitting the information, other than— a result of the investigation or the investiga- mation under subsection (b)(1), S3448 CONGRESSIONAL RECORD — SENATE April 22, 1997 ‘‘(B) the person on whose behalf the infor- ‘‘(v) the primary reasons for the deter- then the administering authority or the mation is requested is an interested party mination, and Commission (as the case may be) may, sub- who is a party to the investigation in con- ‘‘(B) in the case of a determination of the ject to subsection (d), disregard all or part of nection with which the information was ob- Commission— the original and subsequent responses. tained or developed, and ‘‘(i) considerations relevant to the deter- ‘‘(d) USE OF CERTAIN INFORMATION.—In ‘‘(C) the party which submitted the infor- mination of injury, and reaching a determination under section 803, mation to which the request relates has been ‘‘(ii) the primary reasons for the deter- 805, or 807, the administering authority and notified, in advance of the hearing, of the re- mination. the Commission shall not decline to consider quest made under this section and of its ‘‘(3) ADDITIONAL REQUIREMENTS FOR FINAL information that is submitted by an inter- right to appear and be heard. DETERMINATIONS.—In addition to the require- ested party and is necessary to the deter- ‘‘(d) SERVICE.—Any party submitting writ- ments set forth in paragraph (2)— mination but does not meet all the applica- ten information, including business propri- ‘‘(A) the administering authority shall in- ble requirements established by the admin- etary information, to the administering au- clude in a final determination under section istering authority or the Commission if— thority or the Commission during a proceed- 805 or 807(c) an explanation of the basis for ‘‘(1) the information is submitted by the ing shall, at the same time, serve the infor- its determination that addresses relevant ar- deadline established for its submission, mation upon all interested parties who are guments, made by interested parties who are ‘‘(2) the information can be verified, parties to the proceeding, if the information parties to the investigation, concerning the ‘‘(3) the information is not so incomplete is covered by a protective order. The admin- establishment of the injurious pricing charge that it cannot serve as a reliable basis for istering authority or the Commission shall with respect to which the determination is reaching the applicable determination, not accept any such information that is not made, and ‘‘(4) the interested party has demonstrated accompanied by a certificate of service and a ‘‘(B) the Commission shall include in a that it acted to the best of its ability in pro- copy of the protective order version of the final determination of injury an explanation viding the information and meeting the re- document containing the information. Busi- of the basis for its determination that ad- quirements established by the administering ness proprietary information shall only be dresses relevant arguments that are made by authority or the Commission with respect to served upon interested parties who are par- interested parties who are parties to the in- the information, and ties to the proceeding that are subject to vestigation concerning the effects and im- ‘‘(5) the information can be used without protective order, except that a nonconfiden- pact on the industry of the sale of the sub- undue difficulties. tial summary thereof shall be served upon ject vessel. ‘‘(e) NONACCEPTANCE OF SUBMISSIONS.—If all other interested parties who are parties ‘‘SEC. 844. CONDUCT OF INVESTIGATIONS. the administering authority or the Commis- to the proceeding. ‘‘(a) CERTIFICATION OF SUBMISSIONS.—Any sion declines to accept into the record any ‘‘(e) INFORMATION RELATING TO VIOLATIONS person providing factual information to the information submitted in an investigation OF PROTECTIVE ORDERS AND SANCTIONS.—The administering authority or the Commission under this title, it shall, to the extent prac- administering authority and the Commission in connection with a proceeding under this ticable, provide to the person submitting the may withhold from disclosure any cor- title on behalf of the petitioner or any other information a written explanation of the rea- respondence, private letters of reprimand, interested party shall certify that such in- sons for not accepting the information. settlement agreements, and documents and formation is accurate and complete to the ‘‘(f) PUBLIC COMMENT ON INFORMATION.—In- files compiled in relation to investigations best of that person’s knowledge. formation that is submitted on a timely and actions involving a violation or possible ‘‘(b) DIFFICULTIES IN MEETING REQUIRE- basis to the administering authority or the violation of a protective order issued under MENTS.— Commission during the course of a proceed- subsection (c), and such information shall be ‘‘(1) NOTIFICATION BY INTERESTED PARTY.—If ing under this title shall be subject to com- treated as information described in section an interested party, promptly after receiving ment by other parties to the proceeding 552(b)(3) of title 5, United States Code. a request from the administering authority within such reasonable time as the admin- ‘‘(f) OPPORTUNITY FOR COMMENT BY VESSEL or the Commission for information, notifies istering authority or the Commission shall BUYERS.—The administering authority and the administering authority or the Commis- provide. The administering authority and the Commission shall provide an opportunity sion (as the case may be) that such party is the Commission, before making a final deter- for buyers of subject vessels to submit rel- unable to submit the information requested mination under section 805 or 807, shall cease evant information to the administering au- in the requested form and manner, together collecting information and shall provide the thority concerning a sale at less than fair with a full explanation and suggested alter- parties with a final opportunity to comment value or countermeasures, and to the Com- native forms in which such party is able to on the information obtained by the admin- mission concerning material injury by rea- submit the information, the administering istering authority or the Commission (as the son of the sale of a vessel at less than fair authority or the Commission (as the case case may be) upon which the parties have value. may be) shall consider the ability of the in- not previously had an opportunity to com- ‘‘(g) PUBLICATION OF DETERMINATIONS; RE- terested party to submit the information in ment. Comments containing new factual in- QUIREMENTS FOR FINAL DETERMINATIONS.— the requested form and manner and may formation shall be disregarded. ‘‘(1) IN GENERAL.—Whenever the admin- modify such requirements to the extent nec- ‘‘(g) VERIFICATION.—The administering au- istering authority makes a determination essary to avoid imposing an unreasonable thority shall verify all information relied under section 802 whether to initiate an in- burden on that party. upon in making a final determination under vestigation, or the administering authority ‘‘(2) ASSISTANCE TO INTERESTED PARTIES.— section 805. or the Commission makes a preliminary de- The administering authority and the Com- ‘‘SEC. 845. ADMINISTRATIVE ACTION FOLLOWING termination under section 803, a final deter- mission shall take into account any difficul- SHIPBUILDING AGREEMENT PANEL mination under section 805, a determination ties experience by interested parties, par- REPORTS. under subsection (b), (c), (d), (e)(3)(B)(ii), (g), ticularly small companies, in supplying in- ‘‘(a) ACTION BY UNITED STATES INTER- or (i) of section 807, or a determination to formation requested by the administering NATIONAL TRADE COMMISSION.— suspend an investigation under this title, the authority or the Commission in connection ‘‘(1) ADVISORY REPORT.—If a dispute settle- administering authority or the Commission, with investigations under this title, and ment panel under the Shipbuilding Agree- as the case may be, shall publish the facts shall provide to such interested parties any ment finds in a report that an action by the and conclusions supporting that determina- assistance that is practicable in supplying Commission in connection with a particular tion, and shall publish notice of that deter- such information. proceeding under this title is not in conform- mination in the Federal Register. ‘‘(c) DEFICIENT SUBMISSIONS.—If the admin- ity with the obligations of the United States ‘‘(2) CONTENTS OF NOTICE OR DETERMINA- istering authority or the Commission deter- under the Shipbuilding Agreement, the TION.—The notice or determination published mines that a response to a request for infor- Trade Representative may request the Com- under paragraph (1) shall include, to the ex- mation under this title does not comply with mission to issue an advisory report on tent applicable— the request, the administering authority or whether this title permits the Commission ‘‘(A) in the case of a determination of the the Commission (as the case may be) shall to take steps in connection with the particu- administering authority— promptly inform the person submitting the lar proceeding that would render its action ‘‘(i) the names of the United States buyer response of the nature of the deficiency and not inconsistent with the findings of the and the foreign producer, and the country of shall, to the extent practicable, provide that panel concerning those obligations. The origin of the subject vessel, person with an opportunity to remedy or ex- Trade Representative shall notify the Com- ‘‘(ii) a description sufficient to identify the plain the deficiency in light of the time lim- mittee on Ways and Means of the House of subject vessel (including type, purpose, and its established for the completion of inves- Representatives and the Committee on Fi- size), tigations or reviews under this title. If that nance of the Senate of such request. ‘‘(iii) with respect to an injurious pricing person submits further information in re- ‘‘(2) TIME LIMITS FOR REPORT.—The Com- charge, the injurious pricing margin estab- sponse to such deficiency and either— mission shall transmit its report under para- lished and a full explanation of the meth- ‘‘(1) the administering authority or the graph (1) to the Trade Representative within odology used in establishing such margin, Commission (as the case may be ) finds that 30 calendar days after the Trade Representa- ‘‘(iv) with respect to countermeasures, the such response is not satisfactory, or tive requests the report. scope and duration of countermeasures and, ‘‘(2) such response is not submitted within ‘‘(3) CONSULTATIONS ON REQUEST FOR COM- if applicable, any changes thereto, and the applicable time limits, MISSION DETERMINATION.—If a majority of the April 22, 1997 CONGRESSIONAL RECORD — SENATE S3449 Commissioners issues an affirmative report implements any determination, amendment, ‘‘(II) the foreign producer, seller, or United under paragraph (1), the Trade Representa- or suspension under paragraph (2), the Trade States buyer directly or indirectly controls tives shall consult with the congressional Representative shall consult with the admin- the domestic producer, committees listed in paragraph (1) concern- istering authority and the congressional ‘‘(III) a third party directly or indirectly ing the matter. committees listed in subsection (a)(1) with controls the domestic producer and the for- ‘‘(4) COMMISSION DETERMINATION.—Notwith- respect to such determination, amendment, eign producer, seller, or United States buyer, standing any other provision of this title, if or suspension. or a majority of the Commissioners issues an ‘‘(5) IMPLEMENTATION OF DETERMINATION.— ‘‘(IV) the domestic producer and the for- affirmative report under paragraph (1), the The Trade Representative may, after con- eign producer, seller, or United States buyer Commission, upon the written request of the sulting with the administering authority and directly or indirectly control a third party Trade Representative, shall issue a deter- the congressional committees under para- and there is reason to believe that the rela- mination in connection with the particular graph (4), direct the administering authority tionship causes the domestic producer to act proceeding that would render the Commis- to implement, in whole or in part, the deter- differently than a nonrelated producer. sion’s action described in paragraph (1) not mination, amendment, or suspension made For purposes of this subparagraph, a party inconsistent with the findings of the panel. under paragraph (2). The administering au- shall be considered to directly or indirectly The Commission shall issue its determina- thority shall publish notice of such imple- control another party if the party is legally tion not later than 120 calendar days after mentation in the Federal Register. or operationally in a position to exercise re- the request from the Trade Representative is ‘‘(c) OPPORTUNITY FOR COMMENT BY INTER- straint or direction over the other party. made. ESTED PARTIES.—Before issuing a determina- ‘‘(E) PRODUCT LINES.—In an investigation ‘‘(5) CONSULTATIONS ON IMPLEMENTATION OF tion, amendment, or suspension, the admin- under this title, the effect of the sale of the COMMISSION DETERMINATION.—The Trade Rep- istering authority, in a matter described in subject vessel shall be assessed in relation to resentative shall consult with the congres- subsection (b)(1)(A), or the Commission, in a the United States production (or production sional committees listed in paragraph (1) be- matter described in subsection (a)(1), as the capability) of a domestic like vessel if avail- fore the Commission’s determination under case may be, shall provide interested parties able data permit the separate identification paragraph (4) is implemented. with an opportunity to submit written com- of production (or production capability) in ‘‘(6) REVOCATION OF ORDER.—If, by virtue of ments and, in appropriate cases, may hold a terms of such criteria as the production the Commission’s determination under para- hearing, with respect to the determination. process or the producer’s profits. If the do- graph (4), an injurious pricing order is no ‘‘Subtitle D—Definitions mestic production (or production capability) longer supported by an affirmative Commis- of a domestic like vessel has no separate ‘‘SEC. 861. DEFINITIONS. sion determination under this title, the identity in terms of such criteria, then the ‘‘For purposes of this subtitle: Trade Representative may, after consulting effect of the sale of the subject vessel shall ‘‘(1) ADMINISTERING AUTHORITY.—The term with the congressional committees under be assessed by the examination of the pro- ‘administering authority’ means the Sec- paragraph (5), direct the administering au- duction (or production capability) of the nar- retary of Commerce, or any other officer of thority to revoke the injurious pricing order. rowest group or range of vessels, which in- the United States to whom the responsibility ‘‘(b) ACTION BY ADMINISTERING AUTHOR- cludes a domestic like vessel, for which the for carrying out the duties of the administer- ITY.— necessary information can be provided. ing authority under this title are transferred ‘‘(1) CONSULTATIONS WITH ADMINISTERING ‘‘(5) BUYER.—The term ‘buyer’ means any by law. AUTHORITY AND CONGRESSIONAL COMMIT- person who acquires an ownership interest in ‘‘(2) COMMISSION.—The term ‘Commission’ TEES.—Promptly after a report or other de- a vessel, including by way of lease or long- means the United States International Trade termination by a dispute settlement panel term bareboat charter, in conjunction with Commission. under the Shipbuilding Agreement is issued the original transfer from the producer, ei- ‘‘(3) COUNTRY.—The term ‘country’ means a ther directly or indirectly, including an indi- that contains findings that— foreign country, a political subdivision, de- ‘‘(A) an action by the administering au- vidual or company which owns or controls a pendent territory, or possession of a foreign buyer. There may be more than one buyer of thority in a proceeding under this title is not country and, except as provided in paragraph in conformity with the obligations of the any one vessel. (16)(E)(iii), may not include an association of ‘‘(6) UNITED STATES BUYER.—The term United States under the Shipbuilding Agree- 2 or more foreign countries, political sub- ment, ‘United States buyer’ means a buyer that is divisions, dependent territories, or posses- any of the following: ‘‘(B) the due date for payment of an injuri- sions of countries into a customs union out- ous pricing charge contained in an order is- ‘‘(A) A United States citizen. side the United States. ‘‘(B) A juridical entity, including any cor- sued under section 806 should be amended, ‘‘(4) INDUSTRY.— poration, company, association, or other or- ‘‘(C) countermeasures provided for in an ‘‘(A) IN GENERAL.—Except as used in sec- ganization, that is legally constituted under order issued under section 807 should be pro- tion 808, the term ‘industry’ means the pro- the laws and regulations of the United visionally suspended or reduced pending the ducers as a whole of a domestic like vessel, States or a political subdivision thereof, re- final decision of the panel, or or those producers whose collective capabil- gardless of whether the entity is organized ‘‘(D) the scope or duration of counter- ity to produce a domestic like vessel con- for pecuniary gain, privately or government measures imposed under section 807 should stitutes a major proportion of the total do- owned, or organized with limited or unlim- be narrowed or shortened, mestic capability to produce a domestic like ited liability. the Trade Representative shall consult with vessel. ‘‘(C) A juridical entity that is owned or the administering authority and the congres- ‘‘(B) PRODUCER.—A ‘producer’ of a domes- controlled by nationals or entities described sional committees listed in subsection (a)(1) tic like vessel includes an entity that is pro- in subparagraphs (A) and (B). For the pur- on the matter. ducing the domestic like vessel and an entity poses of this subparagraph— ‘‘(2) DETERMINATION BY ADMINISTERING AU- with the capability to produce the domestic ‘‘(i) the term ‘own’ means having more THORITY.—Notwithstanding any other provi- like vessel. than a 50 percent interest, and sion of this title, the administering author- ‘‘(C) CAPABILITY TO PRODUCE A DOMESTIC ‘‘(ii) the term ‘control’ means the actual ity shall, in response to a written request LIKE VESSEL.—A producer has the ‘capability ability to have substantial influence on cor- from the Trade Representative, issue a deter- to produce a domestic like vessel’ if it is ca- porate behavior, and control is presumed to mination, or an amendment to or suspension pable of producing a domestic like vessel exist where there is at least a 25 percent in- of an injurious pricing or countermeasure with its present facilities or could adapt its terest. order, as the case may be, in connection with facilities in a timely manner to produce a If ownership of a company is established the particular proceeding that would render domestic like vessel. under clause (i), other control is presumed the administering authority’s action de- ‘‘(D) RELATED PARTIES.—(i) In an investiga- not to exist unless it is otherwise estab- scribed in paragraph (1) not inconsistent tion under this title, if a producer of a do- lished. with the findings of the panel. mestic like vessel and the foreign producer, ‘‘(7) OWNERSHIP INTEREST.—An ‘ownership ‘‘(3) TIME LIMITS FOR DETERMINATIONS.— seller (other than the foreign producer), or interest’ in a vessel includes any contractual The administering authority shall issue its United States buyer of the subject vessel are or proprietary interest which allows the ben- determination, amendment, or suspension related parties, or if a producer of a domestic eficiary or beneficiaries of such interest to under paragraph (2)— like vessel is also a United States buyer of take advantage of the operation of the vessel ‘‘(A) with respect to a matter described in the subject vessel, the domestic producer in a manner substantially comparable to the subparagraph (A) of paragraph (1), within 180 may, in appropriate circumstances, be ex- way in which an owner may benefit from the calendar days after the request from the cluded from the industry. operation of the vessel. In determining Trade Representative is made, and ‘‘(ii) For purposes of clause (i), a domestic whether such substantial comparability ex- ‘‘(B) with respect to a matter described in producer and the foreign producer, seller, or ists, the administering authority shall con- subparagraph (B), (C), or (D) or paragraph United States buyer shall be considered to be sider— (1), within 15 calendar days after the request related parties, if— ‘‘(A) the terms and circumstances of the from the Trade Representative is made. ‘‘(I) the domestic producer directly or indi- transaction which conveys the interest, ‘‘(4) CONSULTATIONS BEFORE IMPLEMENTA- rectly controls the foreign producer, seller, ‘‘(B) commercial practice within the indus- TION.—Before the administering authority or United States buyer, try, S3450 CONGRESSIONAL RECORD — SENATE April 22, 1997

‘‘(C) whether the vessel subject to the ‘‘(B) SALE AND CONSEQUENT IMPACT.—In ‘‘(I) any existing unused production capac- transaction is integrated into the operations making determinations under sections 803(a) ity or imminent, substantial increase in pro- of the beneficiary or beneficiaries, and and 805(b), the Commission in each case— duction capacity in the exporting country ‘‘(D) whether in practice there is a likeli- ‘‘(i) shall consider— indicating the likelihood of substantially in- hood that the beneficiary or beneficiaries of ‘‘(I) the sale of the subject vessel, creased sales of a foreign like vessel to Unit- such interests will take advantage of and the ‘‘(II) the effect of the sale of the subject ed States buyers, taking into account the risk for the operation of the vessel for a sig- vessel on prices in the United States for a availability of other export markets to ab- nificant part of the life-time of the vessel. domestic like vessel, and sorb any additional exports, ‘‘(8) VESSEL.— ‘‘(III) the impact of the sale of the subject ‘‘(II) whether the sale of a foreign like ves- ‘‘(A) IN GENERAL.—Except as otherwise spe- vessel on domestic producers of a domestic sel or other factors indicate the likelihood of cifically provided under international agree- like vessel, but only in the context of pro- significant additional sales to United States ments, the term ‘vessel’ means— duction operations within the United States, buyers, ‘‘(i) a self-propelled seagoing vessel of 100 and ‘‘(III) whether sale of the subject vessel or gross tons or more used for transportation of ‘‘(ii) may consider such other economic sale of a foreign like vessel by the foreign goods or persons or for performance of a spe- factors as are relevant to the determination producer are at prices that are likely to have cialized service (including, but not limited regarding whether there is or has been mate- a significant depressing or suppressing effect to, ice breakers and dredgers), and rial injury by reason of the sale of the sub- on domestic prices, and are likely to in- ‘‘(ii) a tug of 365 kilowatts or more, ject vessel. crease demand for further sales, ‘‘(IV) the potential for product-shifting if that is produced in a Shipbuilding Agree- In the notification required under section production facilities in the exporting coun- ment Party or a country that is not a Ship- 805(d), the Commission shall explain its anal- try, which can presently be used to produce building Agreement Party and not a WTO ysis of each factor considered under clause a foreign like vessel or could be adapted in a member. (i), and identify each factor considered under timely manner to produce a foreign like ves- ‘‘(B) EXCLUSIONS.—The term ‘vessel’ does clause (ii) and explain in full its relevance to sel, are currently being used to produce not include— the determination. other types of vessels, ‘‘(i) any fishing vessel destined for the fish- ‘‘(C) EVALUATION OF RELEVANT FACTORS.— ‘‘(V) the actual and potential negative ef- ing fleet of the country in which the vessel For purposes of subparagraph (B)— fects on the existing development and pro- is built, ‘‘(i) SALE OF THE SUBJECT VESSEL.—In eval- duction efforts of the domestic industry, in- ‘‘(ii) any military vessel (including any uating the sale of the subject vessel, the cluding efforts to develop a derivative or military reserve vessel), and Commission shall consider whether the sale, more advanced version of a domestic like ‘‘(iii) any vessel sold before the date that either in absolute terms or relative to pro- vessel, and the Shipbuilding Agreement enters into duction or demand in the United States, in ‘‘(VI) any other demonstrable adverse force with respect to the United States, ex- terms of either volume or value, is or has trends that indicate the probability that cept that any vessel sold after December 21, been significant. there is likely to be material injury by rea- 1994, for delivery more than 5 years after the ‘‘(ii) PRICE.—In evaluating the effect of the son of the sale of the subject vessel. date of the contract of sale shall be a ‘vessel’ sale of the subject vessel on prices, the Com- ‘‘(ii) BASIS FOR DETERMINATION.—The Com- for purposes of this title unless the ship- mission shall consider whether— mission shall consider the factors set forth builder demonstrates to the administering ‘‘(I) there has been significant price under- in clause (i) as a whole. The presence or ab- authority that the extended delivery date selling of the subject vessel as compared sence of any factor which the Commission is was for normal commercial reasons and not with the price of a domestic like vessel, and required to consider under clause (i) shall to avoid applicability of this title. ‘‘(II) the effect of the sale of the subject not necessarily give decisive guidance with ‘‘(C) SELF-PROPELLED SEAGOING VESSEL.—A vessel otherwise depresses or has depressed respect to the determination. Such a deter- vessel is ‘self-propelled seagoing’ if its per- prices to a significant degree or prevents or mination may not be made on the basis of manent propulsion and steering provide it all has prevented price increases, which other- mere conjecture or supposition. the characteristics of self-navigability in the wise would have occurred, to a significant ‘‘(iii) EFFECT OF INJURIOUS PRICING IN high seas. degree. THIRD-COUNTRY MARKETS.— ‘‘(D) MILITARY VESSEL.—A ‘military vessel’ ‘‘(iii) IMPACT ON AFFECTED DOMESTIC INDUS- ‘‘(I) IN GENERAL.—The Commission shall is a vessel which, according to its basic TRY.—In examining the impact required to consider whether injurious pricing in the structural characteristics and ability, is in- be considered under subparagraph (B)(i)(III), markets of foreign countries (as evidenced tended to be used exclusively for military the Commission shall evaluate all relevant by injurious pricing findings or injurious purposes. economic factors which have a bearing on pricing remedies of other Shipbuilding ‘‘(E) MILITARY RESERVE VESSEL.—A ‘mili- the state of the industry in the United Agreement Parties, or antidumping deter- tary reserve vessel’ is a military vessel con- States, including, but not limited to— minations of, or measures imposed by, other structed under any of the programs enumer- ‘‘(I) actual and potential decline in output, countries, against a like vessel produced by ated in section 120 of the OECD Shipbuilding sales, market share, profits, productivity, re- the producer under investigation) suggests a Agreement Act. turn on investments, and utilization of ca- threat of material injury to the domestic in- ‘‘(9) LIKE VESSEL.—The term ‘like vessel’ pacity, dustry. In the course of its investigation, the means a vessel of the same type, same pur- ‘‘(II) factors affecting domestic prices, in- Commission shall request information from pose, and approximate size as the subject cluding with regard to sales, the foreign producer or United States buyer vessel and possessing characteristics closely ‘‘(III) actual and potential negative effects concerning this issue. ‘‘(II) EUROPEAN COMMUNITIES.—For pur- resembling those of the subject vessel. on cash flow, employment, wages, growth, poses of the clause, the European Commu- ‘‘(10) DOMESTIC LIKE VESSEL.—The term ‘do- ability to raise capital, and investment, nities as a whole shall be treated as a single mestic like vessel’ means a like vessel pro- ‘‘(IV) actual and potential negative effects foreign country. duced in the United States. on the existing development and production ‘‘(F) CUMULATION FOR DETERMINING MATE- ‘‘(11) FOREIGN LIKE VESSEL.—Except as used efforts of the domestic industry, including efforts to develop a derivative or more ad- RIAL INJURY.— in section 822(e)(1)(B)(ii)(II), the term ‘for- ‘‘(i) IN GENERAL.—For purposes of clauses vanced version of a domestic like vessel, and eign like vessel’ means a like vessel pro- (i) and (ii) of subparagraph (C), and subject ‘‘(V) the magnitude of the injurious pricing duced by the foreign producer of the subject to clause (ii) of this subparagraph, the Com- margin. vessel for sale in the producer’s domestic mission shall cumulatively assess the effects market or in a third country. The Commission shall evaluate all relevant of sales of foreign like vessels from all for- ‘‘(12) SAME GENERAL CATEGORY OF VESSEL.— economic factors described in this clause eign producers with respect to which— The term ‘same general category of vessel’ within the context of the business cycle and ‘‘(I) petitions were filed under section means a vessel of the same type and purpose conditions of competition that are distinc- 802(b) on the same day, as the subject vessel, but of a significantly tive to the affected industry. ‘‘(II) investigations were initiated under different size. ‘‘(D) STANDARD FOR DETERMINATION.—The section 802(a) on the same day, or ‘‘(13) SUBJECT VESSEL.—The term ‘subject presence or absence of any factor which the ‘‘(III) petitions were filed under section vessel’ means a vessel subject to investiga- Commission is required to evaluate under 802(b) and investigations were initiated tion under section 801 or 808. subparagraph (C) shall not necessarily give under section 802(a) on the same day, ‘‘(14) FOREIGN PRODUCER.—The term ‘for- decisive guidance with respect to the deter- if, with respect to such vessels, to foreign eign producer’ means the producer or produc- mination by the Commission of material in- producers compete with each other and with ers of the subject vessel. jury. producers of a domestic like vessel in the ‘‘(15) EXPORTING COUNTRY.—The term ‘ex- ‘‘(E) THREAT OF MATERIAL INJURY.— United States market. porting country’ means the country in which ‘‘(i) IN GENERAL.—In determining whether ‘‘(ii) EXCEPTIONS.—The Commission shall the subject vessel was built. an industry in the United States is threat- not cumulatively assess the effects of sales ‘‘(16) MATERIAL INJURY.— ened with material injury by reason of the under clause (i) ‘‘(A) IN GENERAL.—The term ‘material in- sale of the subject vessel, the Commission ‘‘(I) with respect to which the administer- jury’ means harm which is not inconsequen- shall consider, among other relevant eco- ing authority has made a preliminary nega- tial, immaterial, or unimportant. nomic factors— tive determination, unless the administering April 22, 1997 CONGRESSIONAL RECORD — SENATE S3451

authority subsequently made a final affirma- by reason of the sale of the subject vessel, an ‘‘(26) AFFILIATED PERSONS.—The following tive determination with respect to those affirmative vote on any of the issues shall be persons shall be considered to be ‘affiliated’ sales before the Commission’s final deter- treated as a vote that the determination or ‘affiliated persons’: mination is made, or should be affirmative. ‘‘(A) Members of a family, including broth- ‘‘(II) from any producer with respect to ‘‘(19) ORDINARY COURSE OF TRADE.—The ers and sisters (whether by the whole or half which the investigation has been terminated. term ‘ordinary course of trade’ means the blood), spouse, ancestors, and lineal descend- ‘‘(iii) RECORDS IN FINAL INVESTIGATIONS.— conditions and practices which, for a reason- ants. In each final determination in which it cu- able time before the sale of the subject ves- ‘‘(B) Any officer or director of an organiza- mulatively assesses the effects of sales under sel, have been normal in the shipbuilding in- tion and such organization. clause (i), the Commission may make its de- dustry with respect to a like vessel. The ad- ‘‘(C) Partners. terminations based on the record compiled ministering authority shall consider the fol- ‘‘(D) Employer and employee. ‘‘(E) Any person directly or indirectly own- in the first investigation in which it makes lowing sales and transactions, among others, ing, controlling, or holding with power to a final determination, except that when the to be outside the ordinary course of trade: administering authority issues its final de- ‘‘(A) Sales disregarded under section vote, 5 percent or more of the outstanding termination is a subsequently completed in- 822(b)(1). voting stock or shares of any organization, vestigation, the Commission shall permit ‘‘(B) Transactions disregarded under sec- and such organization. ‘‘(F) Two or more persons directly or indi- the parties in the subsequent investigation tion 822(f)(2). rectly controlling, controlled by, or under to submit comments concerning the signifi- ‘‘(20) NONMARKET ECONOMY COUNTRY.— common control with, any person. ‘‘(A) IN GENERAL.—the term ‘nonmarket cance of the administering authority’s final ‘‘(G) Any person who controls any other economy country’ means any foreign coun- determination, and shall include such com- person, and such other person. ments and the administering authority’s try that the administering authority deter- For purposes of this paragraph, a person final determination in the record for the sub- mines does not operate on market principles shall be considered to control another person sequent investigation. of cost or pricing structures, so that sales of if the person is legally or operationally in a ‘‘(G) CUMULATION FOR DETERMINING THREAT vessels in such country do not reflect the position to exercise restraint or direction OF MATERIAL INJURY.—To the extent prac- fair value of the vessels. ticable and subject to subparagraph (F)(ii), ‘‘(B) FACTORS TO BE CONSIDERED.—In mak- over the other person. ‘‘(27) INJURIOUS PRICING.—The term ‘injuri- for purposes of clause (i) (II) and (III) of sub- ing determinations under subparagraph (A) ous pricing’ refers to the sale of a vessel at paragraph (E), the Commission may cumula- the administering authority shall take into less than fair value. tively assess the effects of sales of like ves- account— ‘‘(28) INJURIOUS PRICING MARGIN.— ‘‘(i) the extent to which the currency of sels from all countries with respect to ‘‘(A) IN GENERAL.—The term ‘injurious which— the foreign country is convertible into the pricing margin’ means the amount by which ‘‘(i) petitions were filed under section currency of other countries, the normal value exceeds the export price of ‘‘(ii) the extent to which wage rates in the 802(b) on the same day, the subject vessel. ‘‘(ii) investigations were initiated under foreign country are determined by free bar- ‘‘(B) MAGNITUDE OF THE INJURIOUS PRICING section 802(a) on the same day, or gaining between labor and management, MARGIN.—The magnitude of the injurious ‘‘(iii) petitions were filed under section ‘‘(iii) the extent to which joint ventures or pricing margin used by the Commission shall 802(b) and investigations were initiated other investments by firms of other foreign be— under section 802(a) on the same day, countries are permitted in the foreign coun- ‘‘(i) in making a preliminary determina- if, with respect to such vessels, the foreign try, tion under section 803(a) in an investigation producers compete with each other and with ‘‘(iv) the extent of government ownership (including any investigation in which the producers of a domestic like vessel in the or control of the means of production, Commission cumulatively assesses the effect United States market. ‘‘(v) the extent of government control over of sales under paragraph (16)(F)(i)), the inju- ‘‘(17) INTERESTED PARTY.—the term ‘inter- the allocation of resources and over the price rious pricing margin or margins published by ested party’ means, in a proceeding under and output decisions of enterprises, and the administering authority in its notice of this title— ‘‘(vi) such other factors as the administer- initiation of the investigation; and ‘‘(A)(i) the foreign producer, seller (other ing authority considers appropriate. ‘‘(ii) in making a final determination than the foreign producer), and the United ‘‘(C) DETERMINATION IN EFFECT.— under section 805(b), the injurious pricing States buyer of the subject vessel, or ‘‘(i) Any determination that a foreign margin or margins most recently published ‘‘(ii) a trade or business association a ma- country is a nonmarket economy country by the administering authority before the jority of the members of which are the for- shall remain in effect until revoked by the closing of the Commission’s administrative eign producer, seller, or United States buyer administering authority. record. of the subject vessel, ‘‘(ii) The administering authority may ‘‘(29) COMMERCIAL INTEREST REFERENCE ‘‘(B) the government of the country in make a determination under subparagraph RATE.—The term ‘Commercial Interest Ref- which the subject vessel is produced or man- (A) with respect to any foreign country at erence Rate’ or ‘CIRR’ means an interest ufactured, any time. rate that the administering authority deter- ‘‘(C) a producer that is a member of an in- ‘‘(D) DETERMINATIONS NOT IN ISSUE.—Not- mines to be consistent with Annex III, and dustry, withstanding any other provision of law, any appendices and notes thereto, of the Under- ‘‘(D) a certified union or recognized union determination made by the administering standing on Export Credits for Ships, result- or group of workers which is representative authority under subparagraph (A) shall not ing from negotiations under the auspices of of an industry, be subject to judicial review in any inves- the Organization for Economic Cooperation, ‘‘(E) a trade or business association a ma- tigation conducted under subtitle A. and entered into on December 21, 1994. jority of whose members are producers in an ‘‘(21) SHIPBUILDING AGREEMENT.—The term ‘‘(30) ANTIDUMPING.— industry, ‘Shipbuilding Agreement’ means The Agree- ‘‘(A) WTO MEMBERS.—In the case of a WTO ‘‘(F) an association, a majority of whose ment Respecting Normal Competitive Condi- member, the term ‘antidumping’ refers to ac- members is composed of interested parties tions in the Commercial Shipbuilding and tion taken pursuant to the Agreement on described in subparagraph (C), (D), or (E), Repair Industry, resulting from negotiations Implementation of Article VI of the General and under the auspices of the Organization for Agreement on Tariffs and Trade 1994. ‘‘(G) for purposes of section 807, a pur- Economic Cooperation and Development, ‘‘(B) OTHER CASES.—In the case of any chaser who, after the effective date of an and entered into on December 21, 1994. country that is not a WTO member, the term order issued under that section, entered into ‘‘(22) SHIPBUILDING AGREEMENT PARTY.— ‘antidumping’ refers to action taken by the a contract of sale with the foreign producer The term ‘Shipbuilding Agreement Party’ country against the sale of a vessel at less that is subject to the order. means a state or separate customs territory than fair value that is comparable to action ‘‘(18) AFFIRMATIVE DETERMINATIONS BY DI- that is a Party to the Shipbuilding Agree- described in subparagraph (A). VIDED COMMISSION.—If the Commissioners ment, and with respect to which the United ‘‘(31) BROAD MULTIPLE BID.—The term voting on a determination by the Commis- States applies the Shipbuilding Agreement. ‘broad multiple bid’ means a bid in which the sion are evenly divided as to whether the de- ‘‘(23) WTO AGREEMENT.—The term ‘WTO proposed buyer extends an invitation to bid termination should be affirmative or nega- Agreement’ means the Agreement defined in to at least all the producers in the industry tive, the Commission shall be deemed to section 2(9) of the Uruguay Round Agree- known by the buyer to be capable of building have made an affirmative determination. ments Act. the subject vessel.’’. For the purpose of applying this paragraph ‘‘(24) WTO MEMBER.—The term ‘WTO mem- SEC. 104. ENFORCEMENT OF COUNTER- when the issue before the Commission is to ber’ means a state, or separate customs ter- MEASURES. determine whether there is or has been— ritory (within the meaning of Article XII of Part II of title IV of the Tariff Act of 1930 ‘‘(A) material injury to an industry in the the WTO Agreement), with respect to which is amended by adding at the end the follow- United States, the United States applies the WTO Agree- ing: ‘‘(B) threat of material injury to such an ment. ‘‘SEC. 468. SHIPBUILDING AGREEMENT COUNTER- industry, or ‘‘(25) TRADE REPRESENTATIVE.—The term MEASURES. ‘‘(C) material retardation of the establish- ‘Trade Representative’ means the United ‘‘(a) IN GENERAL.—Notwithstanding any ment of an industry in the United States, States Trade Representative. other provision of law, upon receiving from S3452 CONGRESSIONAL RECORD — SENATE April 22, 1997 the Secretary of Commerce a list of vessels ‘‘(vi) a determination by the administering ‘‘(i) a copy of all information presented to subject to countermeasures under section authority concerning whether to extend the or obtained by the administering authority 807, the Customs Service shall deny any re- scope or duration of a countermeasure order or the Commission during the course of the quest for a permit to lade or unlade pas- under section 807(e)(3)(B)(ii), administrative proceeding, including all gov- sengers, merchandise, or baggage from or ‘‘(vii) a determination by the administer- ernmental memoranda pertaining to the case onto those vessels so listed. ing authority to amend a countermeasure and the record of ex parte meetings required ‘‘(b) EXCEPTIONS.—Subsection (a) shall not order under section 807(e)(6), to be kept by section 843(a)(2); and be applied to deny a permit for the following: ‘‘(viii) a determination by the administer- ‘‘(ii) a copy of the determination, all tran- ‘‘(1) To unlade any United States citizen or ing authority in a review under section scripts or records of conferences or hearings, permanent legal resident alien from a vessel 807(g), and all notices published in the Federal Reg- included in the list described in subsection ‘‘(ix) a determination by the administering ister. (a), or to unlade any refugee or any alien authority under section 807(i) to terminate ‘‘(B) CONFIDENTIAL OR PRIVILEGED MATE- who would otherwise be eligible to apply for proceedings, or to amend or revoke a coun- RIAL.—The confidential or privileged status asylum and withholding of deportation under termeasure order, accorded to any documents, comments, or the Immigration and Nationality Act. ‘‘(x) a determination by the administering information shall be preserved in any action ‘‘(2) To lade or unlade any crewmember of authority under section 845(b), with respect under this section. Notwithstanding the pre- such vessel. to a matter described in paragraph (1)(D) of ceding sentence, the court may examine, in ‘‘(3) To lade or unlade coal and other fuel that section, or camera, the confidential or privileged mate- supplies (for the operation of the listed ves- ‘‘(B)(i) an injurious pricing order based on rial, and may disclose such material under sel), ships’ stores, sea stores, and the legiti- a determination described in subparagraph such terms and conditions as it may order. mate equipment of such vessel. (A) of paragraph (2), ‘‘(c) STANDING.—Any interested party who ‘‘(4) To lade or unlade supplies for the use ‘‘(ii) notice of a determination described in was a party to the proceeding under title or sale on such vessel. subparagraph (B) of paragraph (2), VIII shall have the right to appear and be ‘‘(5) To lade or unlade such other merchan- ‘‘(iii) notice of implementation of a deter- heard as a party in interest before the Unit- dise, baggage, or passenger as the Customs mination described in subparagraph (c) of ed States Court of International Trade in an Service shall determine necessary to protect paragraph (2), or action under this section. The party filing the immediate health, safety, or welfare of a ‘‘(iv) notice of revocation of an injurious the action shall notify all such interested human being. pricing order based on a determination de- parties of the filing of an action under this ORRECTION OF MINISTERIAL OR CLERI- ‘‘(c) C scribed in subparagraph (D) of paragraph (2), section, in the form, manner, and within the CAL ERRORS.— an interested party who is a party to the pro- time prescribed by rules of the court. ‘‘(1) PETITION FOR CORRECTION.—If the mas- ceeding in connection with which the matter ‘‘(d) DEFINITIONS.—For purposes of this sec- ter of any vessel whose application for a per- arises may commence an action in the Unit- tion: mit to lade or unlade has been denied under ed States Court of International Trade by fil- ‘‘(1) ADMINISTERING AUTHORITY.—The term this section believes that such denial re- ing concurrently a summons and complaint, ‘administering authority’ has the meaning sulted from a ministerial or clerical error, each with the content and in the form, man- given that term in section 861(1). no amounting to a mistake of law, commit- ner, and style prescribed by the rules of that ‘‘(2) COMMISSION.—The term ‘Commission’ ted by any Customs officer, the master may court, contesting any factual findings or means the United States International Trade petition the Customs Service for correction legal conclusions upon which the determina- Commission. of such error, as provided by regulation. tion is based. ‘‘(3) INTERESTED PARTY.—The term ‘inter- ‘‘(2) INAPPLICABILITY OF SECTIONS 514 AND ‘‘(2) REVIEWABLE DETERMINATIONS.—The de- ested party’ means any person described in 520.—Notwithstanding paragraph (1), imposi- terminations referred to in paragraph (1)(B) section 861(17).’’. tion of countermeasures under this section are— (b) CONFORMING AMENDMENTS.— shall not be deemed an exclusion or other ‘‘(A) a final affirmative determination by (1) JURISDICTION OF THE COURT.—Section protestable decision under section 514, and the administering authority or by the Com- 1581(c) of title 28, United States Code, is shall not be subject to correction under sec- mission under section 805, including any neg- amended by inserting ‘‘or 516B’’ after ‘‘sec- tion 520. ative part of such a determination (other tion 516A’’. ‘‘(3) PETITIONS SEEKING ADMINISTRATIVE RE- than a part referred to in subparagraph (B)), (2) RELIEF.—Section 2643 of title 28, United VIEW.—Any petition seeking administrative ‘‘(B) a final negative determination by the States Code, is amended— review of any matter regarding the Sec- administering authority or the Commission (A) in subsection (c)(1) by striking ‘‘and retary of Commerce’s decision to list a ves- under section 805, (5)’’ and inserting ‘‘(5), and (6)’’; and sel under section 807 mut be brought under ‘‘(C) a determination by the administering (B) in subsection (c) by adding at the end that section. authority under section 845(b), with respect the following new paragraph: ‘‘(d) PENALTIES.—In addition to any other to a matter described in paragraph (1)(A) of ‘‘(6) In any civil action under section 516B provision of law, the Customs Service may that section, and of the Tariff Act of 1930, the Court of Inter- impose a civil penalty of not to exceed ‘‘(D) a determination by the Commission national Trade may not issue injunctions or $10,000 against the master of any vessel— under section 845(a) that results in the rev- any other form of equitable relief, except ‘‘(1) who submits false information in re- ocation of an injurious pricing order. with regard to implementation of a counter- questing any permit to lade or unlade; or ‘‘(3) EXCEPTION.—Notwithstanding the 30- measure order under section 468 of that Act, ‘‘(2) who attempts to, or actually does, lade day limitation imposed by paragraph (1) with upon a proper showing that such relief is or unlade in violation of any denial of such regard to an order described in paragraph warranted.’’. permit under this section.’’. (1)(B)(i), a final affirmative determination by PART 2—OTHER PROVISIONS SEC. 105. JUDICIAL REVIEW IN INJURIOUS PRIC- the administering authority under section ING AND COUNTERMEASURE PRO- SEC. 111. EQUIPMENT AND REPAIR OF VESSELS. 805 may be contested by commencing an ac- CEEDINGS. Section 466 of the Tariff Act of 1930 (19 tion, in accordance with the provisions of (a) JUDICIAL REVIEW.—Part III of title IV of U.S.C. 1466), is amended by adding at the end paragraph (1), within 30 days after the date the Tariff Act of 1930 is amended by inserting the following new subsection: of publication in the Federal Register of a after section 516A the following: ‘‘(i) The duty imposed by subsection (a) final negative determination by the Commis- ‘‘SEC. 516B. JUDICIAL REVIEW IN INJURIOUS shall not apply with respect to activities oc- sion under section 805. PRICING AND COUNTERMEASURE curring in a Shipbuilding Agreement Party, ‘‘(4) PROCEDURES AND FEES.—The proce- PROCEEDINGS. as defined in section 861(22), with respect dures and fees set forth in chapter 169 of title ‘‘(a) REVIEW OF DETERMINATION.— to— 28, United States Code, apply to an action ‘‘(1) IN GENERAL.—Within 30 days after the ‘‘(1) self-propelled seagoing vessels of 100 under this section. date of publication in the Federal Register gross tons or more that are used for trans- ‘‘(b) STANDARDS OF REVIEW.— of— portation of goods or persons or for perform- ‘‘(A)(i) a determination by the administer- ‘‘(1) REMEDY.—The court shall hold unlaw- ance of a specialized service (including, but ing authority under section 802(c) not to ini- ful any determination, finding, or conclusion found— not limited to, ice breakers and dredges), and tiate an investigation, ‘‘(2) tugs of 365 kilowatts or more. ‘‘(ii) a negative determination by the Com- ‘‘(A) in an action brought under subpara- mission under section 803(a) as to whether graph (A) of subsection (a)(1), to be arbi- A vessel shall be considered ‘self-propelled there is or has been reasonable indication of trary, capricious, an abuse of discretion, or seagoing’ if its permanent propulsion and material injury, threat of material injury, or otherwise not in accordance with law, or steering provide it all the characteristics of material retardation, ‘‘(B) in an action brought under subpara- self-navigability in the high seas.’’. ‘‘(iii) a determination by the administering graph (B) of subsection (a)(1), to be unsup- SEC. 112. EFFECT OF AGREEMENT WITH RESPECT authority to suspend or revoke an injurious ported by substantial evidence on the record, TO PRIVATE REMEDIES. pricing order under section 806 (d) or (e), or otherwise not in accordance with law. No person other than the United States— ‘‘(iv) a determination by the administering ‘‘(2) RECORD FOR REVIEW.— (1) shall have any cause of action or de- authority under section 807(c), ‘‘(A) IN GENERAL.—For purposes of this sub- fense under the Shipbuilding Agreement or ‘‘(v) a determination by the administering section, the record, unless otherwise stipu- by virtue of congressional approval of the authority in a review under section 807(d), lated by the parties, shall consist of— agreement, or April 22, 1997 CONGRESSIONAL RECORD — SENATE S3453 (2) may challenge, in any action brought and under construction for the account of Understanding or the Shipbuilding Agree- under any provision of law, any action or in- citizens of the United States prior to such ment, as the case may be;’’. action by any department, agency, or other date,’’ and inserting ‘‘shall be built in the (B) Subsection (i) is amended to read as instrumentality of the United States, the United States or, if the vessel is a Shipbuild- follows: District of Columbia, any State, any politi- ing Agreement vessel, in a Shipbuilding ‘‘(i)(1) Except as provided in paragraph (2), cal subdivision of a State, or any territory or Agreement Party,’’. the Secretary may not, with respect to— possession of the United States on the (6) Section 901(b)(1) (46 App. U.S.C. ‘‘(A) the general 75 percent or less limita- ground that such action or inaction is incon- 1241(b)(1)) is amended by striking the third tion contained in subsection (b)(2), sistent with such agreement. sentence and inserting the following: ‘‘(B) the 871⁄2 percent or less limitation con- SEC. 113. IMPLEMENTING REGULATIONS. ‘‘For purposes of this section, the term ‘pri- tained in the 1st, 2nd, 4th, or 5th proviso to After the date of the enactment of this vately owned United States-flag commercial subsection (b)(2) or in section 1112(b), or Act, the heads of agencies with functions vessels’ shall be deemed to include— ‘‘(C) the 80 percent or less limitation in the under this Act and the amendments made by ‘‘(A) any privately owned United States- 3rd proviso to such subsection, establish by this Act may issue such regulations as may flag commercial vessel constructed in the rule, regulation, or procedure any percentage be necessary to ensure that this Act is ap- United States, and if rebuilt, rebuilt in the within any such limitation that is, or is in- propriately implemented on the date the United States or in a Shipbuilding Agree- tended to be, applied uniformly to all guar- Shipbuilding Agreement enters into force ment Party on or after the date on which the antees or commitments to guarantee made with respect to the United States. Shipbuilding Trade Agreement Act takes ef- under this section that are subject to the limitation. SEC. 114. AMENDMENTS TO THE MERCHANT MA- fect, and RINE ACT, 1936. ‘‘(B) any privately owned vessel con- ‘‘(2) With respect to Export Credit Under- The Merchant Marine Act, 1936, is amended structed in a Shipbuilding Agreement Party standing vessels and Shipbuilding Agreement as follows: on or after the date on which the Shipbuild- vessels, the Secretary may establish by rule, (1) Section 511(a)(2) (46 App. U.S.C. ing Agreement Act takes effect, and if re- regulation, or procedure a uniform percent- 1161(a)(2)) is amended by inserting after built, rebuilt in a Shipbuilding Agreement age that the Secretary determines to be con- ‘‘1939,’’ the following: ‘‘or, if the vessel is a party or in the United States, that is docu- sistent with obligations of the United States Shipbuilding Agreement vessel, constructed mented pursuant to chapter 121 of title 46, under the Export Credit Understanding or in a Shipbuilding Agreement Party, but only United States Code. the Shipbuilding Agreement, as the case may be.’’. with regard to moneys deposited, on or after The term ‘privately owned United States- (C) Section 1104B(b) (46 App. U.S.C. the date on which the Shipbuilding Trade flag commercial vessels’ shall also be deemed 1274a(b)) is amended by striking the period at Agreement Act takes effect, into a construc- to include any cargo vessel that so qualified the end and inserting the following: tion reserve fund established under sub- pursuant to section 615 of this Act or this ‘‘, except that, with respect to Export section (b)’’. paragraph before the date on which the Ship- Credit Understanding vessels and Shipbuild- (2) Section 601(a) (46 App. U.S.C. 1171(a)) is building Trade Agreement Act takes effect. ing Agreement vessels, the Secretary may amended by striking’’, and that such vessel The term ‘privately owned United States- establish by rule, regulation, or procedure a or vessels were built in the United States, or flag commercial vessels’ shall not be deemed uniform percentage that the Secretary deter- have been documented under the laws of the to include any liquid bulk cargo vessel that mines to be consistent with obligations of United States not later than February 1, does not meet the requirements of section the United States under the Export Credit 1928, or actually ordered and under construc- 3703a of title 46, United States Code.’’. Understanding or the Shipbuilding Agree- tion for the account of citizens of the United (7) Section 905 (46 App. U.S.C. 1244) is ment, as the case may be.’’. States prior to such date;’’ and inserting amended by adding at the end the following: ‘‘and that such vessel or vessels were built in ‘‘(h) The term ‘Shipbuilding Agreement’ SEC. 115. APPLICABILITY OF TITLE XI AMEND- the United States, or, if the vessel or vessels means the Agreement Respecting Normal MENTS are Shipbuilding Agreement vessels, in a Competitive Conditions in the Commercial (a) EFFECTIVE DATE.— Shipbuilding Agreement Party;’’. Shipbuilding and Repair Industry, which re- (1) IN GENERAL.—Notwithstanding any pro- (3) Section 606(6) (46 App. U.S.C. 1176(6)) is sulted from negotiations under the auspices vision of the Shipbuilding Agreement or the amended by inserting ‘‘or, if the vessel is a of the Organization for Economic Coopera- Export Credit Understanding, the amend- Shipbuilding Agreement vessel, in a Ship- tion and Development, and was entered into ments made by paragraph (8) of section 114 building Agreement Party or in the United on December 21, 1994. shall not apply with respect to any commit- States,’’ before ‘‘, except in an emergency.’’. ‘‘(i) The term ‘Shipbuilding Agreement ment to guarantee made under title XI of the (4) Section 607 (46 App. U.S.C. 1177) is Party’ means a state or separate customs Merchant Marine Act, 1936, before January 1, amended as follows: territory that is a Party to the Shipbuilding 1999, with respect to a vessel delivered: (A) Subsection (a) is amended by inserting Agreement, and with respect to which the (A) before January 1, 2002, or ‘‘or, if the vessel is a Shipbuilding Agree- United States applies the Shipbuilding (B) in the case of ‘‘unusual circumstances’’ ment vessel, in a Shipbuilding Agreement Agreement. to which paragraph (2) applies, as soon after Party,’’ after ‘‘built in the United States’’. ‘‘(j) The term ‘Shipbuilding Agreement January 1, 2002, as is practicable. (B) Subsection (k) is amended as follows: vessel’ means a vessel to which the Sec- (2) UNUSUAL CIRCUMSTANCES.—This para- (i) Paragraph (1) is amended by striking retary determines Article 2.1 of the Ship- graph applies in a case in which unusual cir- subparagraph (A) and inserting the follow- building Agreement applies. cumstances beyond the control of the parties ing: ‘‘(k) The term ‘Export Credit Understand- concerned prevent the delivery of a vessel by ‘‘(A)(i) constructed in the United States ing’ means the Understanding on Export January 1, 2002. As used in this paragraph, and, if reconstructed, reconstructed in the Credits for Ships which resulted from nego- the term ‘‘unusual circumstances’’ means United States or in a Shipbuilding Agree- tiations under the auspices of the Organiza- acts of God (other than ordinary storms or ment Party, or tion for Economic Cooperation and Develop- inclement weather conditions) labor strikes, ‘‘(ii) that is a Shipbuilding Agreement ves- ment and was entered into on December 21, acts of sabotage, explosions, fires, or vandal- sel and is constructed in a Shipbuilding 1994. ism, and similar circumstances. Agreement Party and, if reconstructed, is re- ‘‘(l) The term ‘Export Credit Understand- (b) MATCHING COMPETITION BY NON-MEM- constructed in a Shipbuilding Agreement ing vessel’ means a vessel to which the Sec- BERS.—Section 114 does not prevent the Sec- Party or in the United States,’’. retary determines the Export Credit Under- retary of Transportation from exercising his (ii) Paragraph (2)(A) is amended to read as standing applies.’’. full discretion and authority under title XI follows: (8) Section 1104A (46 App. U.S.C. 1274) is of the Merchant Marine Act, 1936, consistent ‘‘(A)(i) constructed in the United States amended as follows: with clause 8 and Annex III of the Export and, if reconstructed, reconstructed in the (A) Paragraph (5) of subsection (b) is Credit Understanding, to assist United United States or in a Shipbuilding Agree- amended to read as follows: States shipyards in meeting unfairly sub- ment Party, or ‘‘(5) shall bear interest (exclusive of sidized bids by foreign yards in countries not ‘‘(ii) that is a Shipbuilding Agreement ves- charges for the guarantee and service covered by the disciplines of the OECD Ship- sel and is constructed in a Shipbuilding charges, if any) at rates not to exceed such building Agreement. Agreement Party and, if reconstructed, is re- percent per annum on the unpaid principal SEC. 116. WITHDRAWAL FROM AGREEMENT. constructed in a Shipbuilding Agreement as the Secretary determines to be reason- (a) WITHDRAWAL.— Party or in the United States, but only with able, taking into account the range of inter- (1) NOTICE.—The President shall give no- regard to moneys deposited into the fund on est rates prevailing in the private market for tice, under Article 14 of the Shipbuilding or after the data on which the Shipbuilding similar loans and the risks assumed by the Agreement, of intent of the United States to Trade Agreement Act takes effect.’’. Secretary, except that, with respect to Ex- withdraw from the Shipbuilding Agreement, (5) Section 610 (46 App. U.S.C. 1180) is port Credit Understanding vessels, and Ship- as soon as is practicable after one or more amended by striking ‘‘shall be built in a do- building Agreement vessels, the obligations Shipbuilding Agreement Parties give notice, mestic yard or shall have been documented shall bear interest at a rate the Secretary under such Article, of intent to withdraw under the laws of the United States not later determines to be consistent with obligations from the Shipbuilding Agreement, if para- than February 1, 1928, or actually ordered of the United States under the Export Credit graph (2) applies. S3454 CONGRESSIONAL RECORD — SENATE April 22, 1997

(2) TONNAGE OF NEW CONSTRUCTION IN WITH- Shipbuilding Agreement to redress the situa- (1) MILITARY VESSEL.—A ‘‘military vessel’’ DRAWING PARTIES.—This paragraph applies if tion. is a vessel which, according to its basic the combined gross tonnage of new Ship- SEC. 118. JONES ACT AND RELATED LAWS NOT structural characteristics and ability, is in- building Agreement vessels that were con- AFFECTED. tended to be used exclusively for military structed in all Shipbuilding Agreement Par- (a) IN GENERAL.—Nothing in the Shipbuild- purposes; ties who have given notice to withdraw from ing Agreement shall be construed to amend, (2) MILITARY RESERVE VESSELS.—‘‘Military the Shipbuilding Agreement, and that were alter, or modify in any manner the Merchant reserve vessels’’ are military vessels, as de- delivered in the calendar year preceding the Marine Act, 1920 (46 App. U.S.C. 861 et seq.), fined in paragraph (1), that are either owned calendar year in which the notice is given, is the Act of June 19, 1886 (46 App. U.S.C. 289), directly by the Department of Defense or 15 percent or more of the gross tonnage of or any other provision of law set forth in Ac- leased or chartered by the Department of De- new Shipbuilding Agreement vessels that companying Note 2 to Annex II to the Ship- fense for military use, including for the pur- were constructed in all Shipbuilding Agree- building Agreement; nor shall the Shipbuild- pose of supporting the United States Armed ment Parties and were delivered in the cal- ing Agreement undermine the operation or Forces in a contingency. Military Reserve endar year preceding the calendar year in administration of these statutes or prevent Vessels include: which the notice is given. them from achieving their objectives. (A) ‘‘Prepositioned Vessels’’, which are ves- (3) TERMINATION OF WITHDRAWAL.—If a (b) WITHDRAWAL OF GATT CONCESSIONS.— sels equipped with military features and Shipbuilding Agreement Party described in The Shipbuilding Agreement shall not pro- strategically located throughout the world paragraph (2) takes action to terminate its vide any mechanism for withdrawal of con- for utilization when needed; withdrawal from the Shipbuilding Agree- cessions under GATT 1994 because of the (B) ‘‘Surge (Phase) Vessels’’, which are ves- ment, so that paragraph (2) would not apply maintenance or operation of the coastwise sels equipped with military features or which if that Party had not given the notice to trade laws of the United States. meet military specifications, and which are (c) ANNUAL REVIEW.—The Secretary of withdraw, the President may take the nec- dedicated to the provision of logistical sup- Transportation shall review annually the im- essary steps to terminate the notice of with- port for the Armed Forces on a contingency, pact, if any, of the Agreement on the oper- drawal of the United States from the Ship- including ‘‘Fast Sealift Ships’’ (FSS), ation or implementation of the statutes building Agreement. ‘‘Ready Reserve Force’’ (RRF) vessels, and identified in subsection (a), shall consult (b) REINSTATEMENT OF LAWS.—If the United ‘‘Large Medium Speed Roll-on/roll-off’’ with the United States Trade Representa- States withdraws from the Shipbuilding (LMSR) vessels; and tive, Department of Defense, U.S. industry Agreement, on the date on which the with- (C) ‘‘Sustainment (Phase) Vessels’’, which and labor, and other interested parties, and drawal becomes effective, the amendments are privately owned merchant marine vessels shall report to the President. If the Presi- made by section 114 cease to have effect, and and are chartered on a long-term basis by dent determines that the implementation of the provisions of law amended by section 114 the Department of Defense for the purpose of the Agreement is significantly undermining shall be effective, on and after such date, as carrying military cargo or personnel includ- the administration or operation of these if this Act had not been enacted. ing the ‘‘Military Sealift Command Con- statutes or significantly impeding them trolled Fleet’’; and SEC. 117. MONITORING AND ENFORCEMENT. from achieving their objectives, the Presi- (3) MILITARY REQUIREMENTS.—‘‘Laws or (a) IN GENERAL.—The United States Trade dent shall give notice of intent to withdraw programs relating to the military require- Representative shall establish a program to from the Agreement pursuant to Article 14 of ments of the United States’’ include any pro- monitor the compliance of Shipbuilding the Agreement. The authorization and im- gram which, consistent with Article 2(2) of Agreement Parties with their obligations plementation of responsive measures, under the Agreement, provides for modifications under the Shipbuilding Agreement. This pro- the provisions of paragraph 2.e of Annex II B made or features added to vessels to make gram should include— of the Agreement by any Shipbuilding Agree- them more capable of carrying military (1) the establishment of a task force com- ment Party shall be taken into account in equipment in a contingency provided that posed of representatives of the Departments making this determination. the vessels constructed or modified by such of Commerce, Labor, State, Transportation, SEC. 119. EXPANDING MEMBERSHIP IN THE SHIP- programs are under long-term contractual and other appropriate agencies; BUILDING AGREEMENT. arrangement with the Department of De- (2) coordination of gathering and analysis The United States Trade Representative fense for their call up in the event of contin- of relevant information; shall monitor the impact of the policies and gency. (3) consultation with United States embas- practices pursued by countries that are not sies located in countries that are Shipbuild- SEC. 121. DEFINITIONS. Shipbuilding Agreement Parties, and shall Except as otherwise provided, as used in ing Agreement Parties to assist in obtaining seek the prompt accession to the Shipbuild- this part— information on policies and practices that is ing Agreement of countries that have signifi- (1) the terms ‘‘Shipbuilding Agreement’’, publicly available in those countries; cant commercial shipbuilding and repair in- ‘‘Shipbuilding Agreement Party’’, ‘‘Ship- (4) regular consultations with representa- dustries, including, but not limited to Aus- building Agreement Vessels’’, and ‘‘Export tives of industry, labor, and other interested tralia, the People’s Republic of China, Po- Credit Understanding’’ have the meanings parties regarding policies and practices of land, Romania, the Russian Federation, and given those terms in subsections (h), (i), (j), Shipbuilding Agreement Parties and of other Ukraine. The United States Trade Rep- and (k), respectively, of section 905 of the countries with significant commercial ship- resentative shall report to Congress annually Merchant Marine Act, 1936, as added by sec- building industries; on any impact and on the success of efforts tion 114(7) of this Act; and (5) annual publication of a notice in the to expand the membership of the Agreement. (2) the term ‘‘GATT 1994’’ has the meaning Federal Register affording an opportunity When it is determined that the continuing given that term in section 2 of the Uruguay for interested parties to comment on the im- failure of a country to adopt the disciplines Round Agreements Act. plementation of the Agreement; and of the Agreement is undermining the effec- PART 3—EFFECTIVE DATE (6) the taking of any other appropriate ac- tiveness of the Agreement and placing U.S. tion to monitor compliance of Shipbuilding shipyards at a competitive disadvantage, the SEC. 131. EFFECTIVE DATE. Agreement Parties. United States Trade Representative shall act Except as otherwise provided, this Act (b) REPORT TO CONGRESS.—Before the end vigorously to redress this situation, making takes effect on the date that the Shipbuild- of each twelve-month period in which the appropriate use of the mechanisms at its dis- ing Agreement enters into force with respect United States is a Party to the Agreement, posal under United States trade laws as well to the United States. the United States Trade Representative shall as the opportunities for consultations and report to the Congress on: dispute settlement action under any appro- By Mr. BYRD: (1) the activities undertaken as part of its priate international organization, both bilat- S. 630. A bill to amend the Internal monitoring program; erally and in concert with other Shipbuild- Revenue Code of 1986 to deposit in the (2) the results of its consultations under ing Agreement Parties. highway trust fund the receipts of the subsection (a)(4) above; and SEC. 120. PROTECTION OF UNITED STATES SECU- 4.3-cent increase in the fuel tax rates (3) compliance with the provisions of the RITY INTERESTS. enacted by the Omnibus Budget Rec- Shipbuilding Agreement. (a) IN GENERAL.—Nothing in the Shipbuild- onciliation Act of 1993; to the Commit- (c) ACTION IF VIOLATION.—If the United ing Agreement shall be construed to prevent States Trade Representative receives infor- the United States from taking any action tee on Finance. mation provided by representatives of indus- which the United States considers necessary FEDERAL HIGHWAY TRUST FUND LEGISLATION try, labor, and other interested parties, indi- for the protection of essential security inter- Mr. BYRD. Mr. President, I rise to in- cating that a Shipbuilding Agreement Party ests. troduce a bill today to ensure that ade- is in material violation of the Shipbuilding (b) MILITARY VESSELS AND REQUIRE- quate resources are available to reverse Agreement in a manner that is detrimental MENTS.—Nothing in the Agreement and in the very destructive trend of Federal to the interests of the United States, the this Act shall be construed to amend or mod- United States Trade Representative should ify any laws or programs relating to U.S. disinvestment in our Nation’s critical use vigorously the consultation and, if the military vessels (including military reserve infrastructure of highways and bridges. matter is not otherwise resolved, the dispute vessels) or the military requirements of the The bill that I introduce would place settlement procedures provided for under the United States. As used in this section— into the highway trust fund the 4.3- April 22, 1997 CONGRESSIONAL RECORD — SENATE S3455 cents-per-gallon gas tax that is cur- terioration of our national highway duced legislation to address specific rently used for our deficit reduction. network. transportation needs in their States Senators will recall that back in May It should be noted that, while our and regions. Also, many Members have and June of last year, there was much highway infrastructure continue to de- spoken of the need for formula changes debate on this 4.3-cent gas tax, which teriorate, highway use is on the rise. to bring about what they perceive to be was first imposed by the Omnibus Indeed, it is growing at a very rapid a more equitable distribution of funds Budget Reconciliation Act of 1993. pace. The number of vehicle miles trav- from the highway program. During this past summer, I deferred eled has grown by roughly 40 percent in However, we must face the fact that, offering this bill as an amendment to just the last decade. As a result, we are absent a substantial increase in the two separate tax bills, and I did so at witnessing new highs in the levels of current level of spending on our high- the request of both the majority and highway congestion, causing delays in way program, we will not have the re- the minority leaders. But unfortu- the movement of goods and people that sources available to address the many nately, another opportunity to offer costs our national economy more than important, but often competing, needs the amendment to a tax bill did not $40 billion a year. for our Nation’s highway requirements arise. So, Mr. President, it is clear that the in all regions of the country. By depositing this additional 4.3- requirement that we place on our Na- So in the coming weeks, Mr. Presi- cents per gallon gas tax into the high- tional Highway System are growing dent, I look forward to working with way trust fund, Congress will have the while our investment continues to de- all of my colleagues toward the enact- resources to better meet the true needs cline. We are simply digging ourselves ment of substantially increased au- of our Nation’s transportation infra- a deeper and deeper hole. Six years ago, thorizations and appropriations for our structure. in 1991, it was estimated that an in- Nation’s highway system. And the bill Our Federal investment in infra- vestment of $47.5 billion would be nec- that I have introduced today will pro- structure as a percentage of the total essary on an annual basis to ensure vide a very helpful tool with which to Federal budget has declined signifi- that highway conditions would not de- do that. cantly since 1980. Few economics would teriorate any further than existed in f disagree that adequate long-term in- that year—that it would not get any ADDITIONAL COSPONSORS vestment in infrastructure is critical worse. By 1993, that figure grew to $51.6 to a nation’s economic well-being. Only billion. And 2 years ago, that figure S. 28 through investment here at home, only grew to $54.8 billion. Ergo, the longer At the request of Mr. THURMOND, the name of the Senator from Idaho [Mr. through investment to maintain and we delay increasing Federal highway CRAIG] was added as a cosponsor of S. renew our own physical plant, can our spending, the more expensive it will be 28, a bill to amend title 17, United economy grow and generate good wages to reverse this destructive trend, which States Code, with respect to certain ex- for our citizens. costs our Nation dearly. Even so, our Nation’s investment in Productivity improvements are the emptions from copyright, and for other infrastructure as a percentage of our key to global competitiveness, rising purposes. gross domestic product has almost standards of living and economic S. 194 been cut in half since 1980. As a nation, growth. Investments in highways re- At the request of Mr. CHAFEE, the we invest a considerably smaller per- sult in significant, nationwide im- name of the Senator from Washington centage of our gross domestic product provements in productivity. According [Mr. GORTON] was added as a cosponsor in infrastructure than our economic to the Federal Highway Administra- of S. 194, a bill to amend the Internal competitors invest in economic infra- tion, every $1 billion invested in high- Revenue Code of 1986 to make perma- structure in Europe and in Asia. ways creates and sustains over 40,000 nent the section 170(e)(5) rules pertain- Nowhere do we pay a greater price full-time jobs. Furthermore, the very ing to gifts of publicly-traded stock to for inadequate infrastructure invest- same $1 billion also results in a $240 certain private foundations and for ment than in our Nation’s highways. million reduction in overall production other purposes. Our National Highway System carries costs for American manufacturers. S. 224 nearly 80 percent of U.S. interstate While we can easily see the economic At the request of Mr. WARNER, the commerce and nearly 80 percent of impact of disinvestment in our Na- name of the Senator from South Caro- intercity passenger and tourist traffic. tion’s highways, we must not lose sight lina [Mr. HOLLINGS] was added as a co- Yet, we have allowed segments of our of the fact that deteriorating highways sponsor of S. 224, a bill to amend title National Highway System to fall into have a direct relationship to safety as 10, United States Code, to permit cov- disrepair. well. We may be talking about your ered beneficiaries under the military The Department of Transportation life. We may be talking about your life. health care system who are also enti- recently released its latest report on And we are. Almost 42,000 people died tled to Medicare to enroll in the Fed- the condition of the Nation’s highways. on our Nation’s highways in 1996. That eral Employees Health Benefits pro- Its findings are even more disturbing equates to having a mid-sized pas- gram, and for other purposes. than earlier reports. The Department senger aircraft crash every day, killing S. 278 of Transportation currently classified all of its occupants. The National High- At the request of Mr. GRAMM, the less than half of the mileage on our way Traffic Safety Administration name of the Senator from Montana interstate system as being in good con- counts poor road conditions as a con- [Mr. BURNS] was added as a cosponsor dition and only 39 percent of our entire tributing factor in a large percentage of S. 278, a bill to guarantee the right National Highway System is rated in of these fatal accidents, as well as of all active duty military personnel, good condition. Fully 61 percent of our those in which there are serious inju- merchant mariners, and their depend- Nation’s highways are rated in either ries. The economic impact of these ents to vote in Federal, State, and fair condition or in poor condition. Al- highway accidents cost our Nation $150 local elections. most one in four of our Nation’s high- billion a year, and that figure is grow- S. 370 way bridges are now categorized as ei- ing. More importantly, this wasteful At the request of Mr. GRASSLEY, the ther structurally deficient or function- carnage brings incredible sorrow to af- names of the Senator from New York ally obsolete. fected families and friends, and the Na- [Mr. D’AMATO] and the Senator from According to the Department of tion loses the skills, the talents, and South Dakota [Mr. DASCHLE] were Transportation, investment in our Na- the contributions of the victims. added as cosponsors of S. 370, a bill to tion’s highways is a full $15 billion The Senate will soon take up legisla- amend title XVIII of the Social Secu- short each year just to maintain these tion to reauthorize the Intermodal Sur- rity Act to provide for increased Medi- current inadequate conditions—just to face Transportation Efficiency Act, or care reimbursement for nurse practi- maintain them. Put another way, we ISTEA. This bill will be one of the tioners and clinical nurse specialists to would have to increase our national most important pieces of legislation increase the delivery of health services highway investment by more than $15 that we consider this session. Many in health professional shortage areas, billion a year just to avoid further de- Members, including myself, have intro- and for other purposes. S3456 CONGRESSIONAL RECORD — SENATE April 22, 1997 S. 371 ployment if the taxpayer enters into a mandatory electronic fund transfer At the request of Mr. GRASSLEY, the lease agreement relating to such in- system. name of the Senator from New York come. S. 575 [Mr. D’AMATO] was added as a cospon- S. 532 At the request of Mr. DURBIN, the sor of S. 371, a bill to amend title XVIII At the request of Mr. BAUCUS, the name of the Senator from Louisiana of the Social Security Act to provide name of the Senator from Nebraska [Ms. LANDRIEU] was added as a cospon- for increased Medicare reimbursement [Mr. HAGEL] was added as a cosponsor sor of S. 575, a bill to amend the Inter- for physician assistants, to increase of S. 532, a bill to authorize funds to nal Revenue Code of 1986 to increase the delivery of health services in further the strong Federal interest in the deduction for health insurance health professional shortage areas, and the improvement of highways and costs of self-employed individuals. for other purposes. transportation, and for other purposes. At the request of Mr. HAGEL, the S. 375 S. 535 name of the Senator from Oklahoma At the request of Mr. MCCAIN, the At the request of Mr. MCCAIN, the [Mr. INHOFE] was added as a cosponsor name of the Senator from South Caro- names of the Senator from Delaware of S. 575, supra. lina [Mr. HOLLINGS] was added as a co- [Mr. BIDEN] and the Senator from Illi- S. 583 sponsor of S. 375, a bill to amend title nois [Ms. MOSELEY-BRAUN] were added At the request of Mr. GREGG, the II of the Social Security Act to restore as cosponsors of S. 535, a bill to amend name of the Senator from Georgia [Mr. the link between the maximum amount the Public Health Service Act to pro- COVERDELL] was added as a cosponsor of earnings by blind individuals per- vide for the establishment of a program of S. 583, a bill to change the date on mitted without demonstrating ability for research and training with respect which individual Federal income tax to engage in substantial gainful activ- to Parkinson’s disease. returns must be filed to the Nation’s ity and the exempt amount permitted S. 536 Tax Freedom Day, the day on which in determining excess earnings under At the request of Mr. GRASSLEY, the the country’s citizens no longer work the earnings test. names of the Senator from Indiana to pay taxes, and for other purposes. S. 419 [Mr. LUGAR] and the Senator from Ala- S. 606 At the request of Mr. BOND, the name bama [Mr. SESSIONS] were added as co- At the request of Mr. HUTCHINSON, of the Senator from Washington [Mrs. sponsors of S. 536, a bill to amend the the names of the Senator from Ohio MURRAY] was added as a cosponsor of National Narcotics Leadership Act of [Mr. DEWINE] and the Senator from S. 419, a bill to provide surveillance, re- 1988 to establish a program to support North Carolina [Mr. HELMS] were added search, and services aimed at preven- and encourage local communities that as cosponsors of S. 606, a bill to pro- tion of birth defects, and for other pur- first demonstrate a comprehensive, hibit discrimination in contracting on poses. long-term commitment to reduce sub- federally funded projects on the basis S. 479 stance abuse among youth, and for of certain labor policies of potential At the request of Mr. GRASSLEY, the other purposes. contractors. names of the Senator from Missouri S. 543 S. 620 [Mr. BOND] and the Senator from North At the request of Mr. COVERDELL, the At the request of Mr. GREGG, the Carolina [Mr. FAIRCLOTH] were added names of the Senator from Arkansas name of the Senator from Arkansas as cosponsors of S. 479, a bill to amend [Mr. HUTCHINSON] and the Senator from [Mr. HUTCHINSON] was added as a co- the Internal Revenue Code of 1986 to Arizona [Mr. KYL] were added as co- sponsor of S. 620, a bill to amend the provide estate tax relief, and for other sponsors of S. 543, a bill to provide cer- Internal Revenue Code of 1986 to pro- purposes. tain protections to volunteers, non- vide greater equity in savings opportu- S. 489 profit organizations, and governmental nities for families with children, and At the request of Mr. KYL, the name entities in lawsuits based on the activi- for other purposes. of the Senator from North Carolina ties of volunteers. SENATE JOINT RESOLUTION 6 [Mr. HELMS] was added as a cosponsor S. 544 At the request of Mr. KYL, the name of S. 489, a bill to improve the criminal At the request of Mr. COVERDELL, the of the Senator from Louisiana [Ms. law relating to fraud against consum- names of the Senator from Arkansas LANDRIEU] was added as a cosponsor of ers. [Mr. HUTCHINSON] and the Senator from Senate Joint Resolution 6, a joint reso- S. 493 Arizona [Mr. KYL] were added as co- lution proposing an amendment to the At the request of Mr. KYL, the name sponsors of S. 544, a bill to provide cer- Constitution of the United States to of the Senator from North Carolina tain protections to volunteers, non- protect the rights of crime victims. [Mr. HELMS] was added as a cosponsor profit organizations, and governmental SENATE RESOLUTION 51 of S. 493, a bill to amend section 1029 of entities in lawsuits based on the activi- At the request of Mrs. FEINSTEIN, the title 18, United States Code, with re- ties of volunteers. names of the Senator from Hawaii [Mr. spect to cellular telephone cloning par- S. 562 AKAKA], the Senator from Montana aphernalia. At the request of Mr. D’AMATO, the [Mr. BAUCUS], the Senator from Mis- S. 497 names of the Senator from Florida [Mr. sissippi [Mr. COCHRAN], the Senator At the request of Mr. COVERDELL, the MACK], the Senator from Missouri [Mr. from Massachusetts [Mr. KENNEDY], the name of the Senator from Texas [Mrs. BOND], the Senator from Delaware [Mr. Senator from Alaska [Mr. MURKOWSKI], HUTCHISON] was added as a cosponsor of ROTH], the Senator from Rhode Island the Senator from Oregon [Mr. SMITH], S. 497, a bill to amend the National [Mr. CHAFEE], and the Senator from and the Senator from New Jersey [Mr. Labor Relations Act and the Railway South Carolina [Mr. THURMOND] were TORRICELLI] were added as cosponsors Labor Act to repeal the provisions of added as cosponsors of S. 562, a bill to of Senate Resolution 51, a resolution to the Acts that require employees to pay amend section 255 of the National express the sense of the Senate regard- union dues or fees as a condition of em- Housing Act to prevent the funding of ing the outstanding achievements of ployment. unnecessary or excessive costs for ob- NetDay. S. 529 taining a home equity conversion SENATE RESOLUTION 64 At the request of Mr. GRASSLEY, the mortgage. At the request of Mr. ROBB, the names of the Senator from Mississippi S. 570 names of the Senator from Delaware [Mr. COCHRAN], the Senator from Ne- At the request of Mr. NICKLES, the [Mr. BIDEN], the Senator from Arkan- braska [Mr. HAGEL], and the Senator names of the Senator from Missouri sas [Mr. BUMPERS], the Senator from from Kansas [Mr. BROWNBACK] were [Mr. ASHCROFT] and the Senator from Mississippi [Mr. COCHRAN], the Senator added as cosponsors of S. 529, a bill to Idaho [Mr. CRAIG] were added as co- from Idaho [Mr. CRAIG], the Senator amend the Internal Revenue Code of sponsors of S. 570, a bill to amend the from Ohio [Mr. DEWINE], the Senator 1986 to exclude certain farm rental in- Internal Revenue Code of 1986 to ex- from Ohio [Mr. GLENN], the Senator come from net earnings from self-em- empt certain small businesses from the from Indiana [Mr. LUGAR], the Senator April 22, 1997 CONGRESSIONAL RECORD — SENATE S3457 from New York [Mr. MOYNIHAN], the It is our hope that this moment of re- Committee on Indian Affairs be author- Senator from South Carolina [Mr. membrance will bring all Americans ized to meet during the session of the THURMOND], and the Senator from Or- together in a spirit of respect, patriot- Senate on Tuesday, April 22, 1997, at egon [Mr. WYDEN] were added as co- ism, and gratitude, and also help re- 9:30 a.m. in room 485 of the Russell sponsors of Senate Resolution 64, a res- store the recognition our veterans de- Senate Building to conduct a hearing olution to designate the week of May 4, serve for the sacrifices they have made on S. 459, a bill to amend the Native 1997, as ‘‘National Correctional Officers on behalf of our great Nation. American Programs Act of 1974 to ex- and Employees Week.’’ f tend certain program authorizations. f The PRESIDING OFFICER. Without SENATE RESOLUTION 77—TO AU- objection, it is so ordered. SENATE RESOLUTION 76—PRO- THORIZE REPRESENTATION BY SUBCOMMITTEE ON ANTITRUST, BUSINESS CLAIMING A NATIONWIDE MO- THE SENATE LEGAL COUNSEL RIGHTS, AND COMPETITION MENT OF REMEMBRANCE Mr. LOTT (for himself and Mr. Mr. CHAFEE. Mr. President, I ask Mr. THURMOND submitted the fol- DASCHLE) submitted the following reso- unanimous consent that the Sub- lowing resolution; which was referred lution; which was considered and committee on Antitrust, Business to the Committee on the Judiciary: agreed to: Rights, and Competition, of the Com- S. RES. 76 S. RES. 77 mittee on the Judiciary be authorized Whereas the preservation of basic freedoms Whereas, in the case of William L. Singer v. to meet during the session of the Sen- and world peace has always been a valued ob- ate on Tuesday, April 22, 1997, at 2 p.m. jective of this great country; Office of Senate Fair Employment Practices, No. Whereas thousands of American men and 97–6000, pending in the United States Court to hold a hearing on ‘‘Antitrust Impli- women have selflessly given their lives in of Appeals for the Federal Circuit, petitioner cations: The British Airways—Amer- service as peacemakers and peacekeepers; William L. Singer has sought review of a ican Airlines Alliance.’’ Whereas greater strides should be made to final decision of the Select Committee on The PRESIDING OFFICER. Without demonstrate the appreciation and gratitude Ethics which has been entered, pursuant to objection, it is so ordered. section 308 of the Government Employee these loyal Americans deserve and to com- SUBCOMMITTEE ON SEAPOWER memorate the ultimate sacrifice they made; Rights Act of 1991, 2 U.S.C. § 1208 (1994), in Whereas Memorial Day is the day of the the records of the Office of Senate Fair Em- Mr. CHAFEE. Mr. President, I ask year for the Nation to appropriately remem- ployment Practices; unanimous consent that the Sub- ber American heroes by inviting the citizens Whereas, pursuant to sections 703(a) and committee on Seapower of the Com- of this Nation to respectfully honor them at 704(a)(1) of the Ethics in Government Act of mittee on Armed Services be author- a designated time; and 1978, 2 U.S.C. §§ 288b(a) and 288c(a)(1)(1994), ized to meet at 2:30 p.m. on Tuesday, Whereas the playing of ‘‘Taps’’ symbolizes the Senate may direct its counsel to defend April 22, 1997, in open session, to re- the solemn and patriotic recognition of those committees of the Senate in civil actions re- ceive testimony regarding the Depart- Americans who died in service to our Coun- lating to their official responsibilities; try: Now, therefore, be it Whereas, pursuant to section 303(f) of the ment of the Navy’s shipbuilding devel- Resolved, That the Senate requests that— Government Employee Rights Act of 1991, 2 opment and procurement programs in (1) a nationwide moment of remembrance U.S.C. § 1203(f)(1994), for purposes of rep- review of S. 450, the national defense be observed on Memorial Day, May 26, 1997, resentatives by the Senate Legal Counsel, authorization bill for fiscal years 1998 by the simultaneous pausing of all citizens the Office of Senate Fair Employment Prac- and 1999. to acknowledge the playing of ‘‘Taps’’ at 3:00 tices, the respondent in this proceeding, is The PRESIDING OFFICER. Without p.m. (Eastern Standard Time) in honor of the deemed a committee within the meaning of objection, it is so ordered. Americans that gave their lives in the pur- sections 703(a)(1) of the Ethics in Govern- f suit of freedom and peace; and ment Act of 1978, 2 U.S.C. §§ 288b(a), (2) the President issue a proclamation call- 288c(a)(1)(1994): Now, therefore, be it ADDITIONAL STATEMENTS ing upon the departments and agencies of Resolved, That the Senate Legal Counsel is the United States and interested organiza- directed to represent the Office of Senate tions, groups, and individuals to participate Fair Employment Practices in the case of COUNCIL OF THE NATION’S CAP- in and promote this nationwide tribute to William L. Singer v. Office of Senate Fair Em- ITOL GIRL SCOUT GOLD AWARD the dedicated American men and women who ployment Practices. died in the pursuit of freedom and peace. RECIPIENTS f Mr. THURMOND. Mr. President, I ∑ Ms. MIKULSKI. Mr. President, each rise today to submit a resolution pro- NOTICES OF HEARINGS year an elite group of young women claiming a nationwide moment of re- COMMITTEE ON LABOR AND HUMAN RESOURCES rise above the ranks of their peers and confront the challenge of attaining the membrance, to be observed on Memo- Mr. JEFFORDS. Mr. President, I Girl Scouts of the United States of rial Day, May 26, 1997, in order to ap- would like to announce for information America’s highest rank in scouting, propriately honor American patriots of the Senate and the public that a the Girl Scout Gold Award. lost in the pursuit of peace and liberty hearing of the Senate Committee on It is with great pleasure that I recog- around the world. Labor and Human Resources will be This year, the nonprofit organiza- nize and applaud young women from held on Wednesday, April 23, 1997, 9:30 tion, No Greater Love, which assists the State of Maryland who are this a.m., in SD–430 of the Senate Dirksen the families of Americans who died in year’s recipients of this most pres- Building. The subject of the hearing is service to their country or in terrorist tigious and time honored award. reauthorization of the Higher Edu- acts, is launching the first annual These outstanding young women are cation Act. ‘‘Proud to Remember’’ campaign. The to be commended on their extraor- goal of this campaign is to make cer- COMMITTEE ON LABOR AND HUMAN RESOURCES dinary commitment and dedication to tain that those who have died in serv- Mr. JEFFORDS. Mr. President, I their families, their friends, their com- ice to our country will be appropriately would like to announce for information munities, and to the Girl Scouts of the honored in a patriotic and personal of the Senate and the public that a United States of America. way on this special day of remem- hearing of the Senate Committee on The qualities of character, brance. In other words, they seek to Labor and Human Resources will be perseverence, and leadership which en- put ‘‘memorial’’ back into Memorial held on Thursday, April 24, 1997, 10 abled them to reach this goal will also Day. a.m., in SD–430 of the Senate Dirksen help them to meet the challenges of Pursuant to this resolution, on Me- Building. The subject of the hearing is the future. They are our inspiration for morial Day, Monday, May 26, 1997, the overview of vocational education. today and our promise for tomorrow. entire Nation will be asked to observe f I am honored to ask my colleagues to a moment of remembrance at 3:00 p.m., join me in congratulating the recipi- Eastern Standard Time, in honor of AUTHORITY FOR COMMITTEES TO ents of this award from the State of those who have sacrificed their lives MEET Maryland. They are the best and the for us. ‘‘Taps’’ will be played at this COMMITTEE ON INDIAN AFFAIRS brightest and serve as an example of time across the country to honor our Mr. CHAFEE. Mr. President, I ask character and moral strength for us all fallen heroes. unanimous consent that the Senate to imitate and follow. S3458 CONGRESSIONAL RECORD — SENATE April 22, 1997 Finally, I wish to salute the families, Broz, John Caressimo, Brian Carr, An- than 100,000 Americans, including 50,000 scout leaders, and the Girl Scout Coun- drew Constanza, Krystle Couto, Beth- Californians to volunteer in their cil of the Nation’s Capital who have any DeBlois, Candice Felske, John neighborhood schools. These students, provided these young women with con- Johnson, Jonathan Juneau, Jamie teachers, parents, and friends of the tinued support and encouragement. Kullberg, Kristin Larocque, Gina schools, came to wire classrooms and It is with great pride that I submit a Musto, Meghan O’Brien, Ryan O’Grady, school libraries throughout the Nation. list of this year’s Girl Scout Gold Stephanie Paquet, Erica Ricci, Hillary Thousands of individuals accomplished Award recipients from the State of Sisson, Derek Tevyaw, Kevin Willette, their goal to install communications Maryland, and I ask that the list be Kristen Wolslegel, Man Yu, and Debra cables, connect wires and switches to printed in the RECORD. Zenofsky for making it to the national upgrading their schools for the 21st The material follows: finals. I applaud this terrific group of century. GIRL SCOUT COUNCIL OF THE NATION’S young men and women for their hard The success of NetDay is significant. CAPITAL work and perseverance. Also, Mr, Last year, over 25,000 elementary, jun- Breton Aulick, Rebecca Bensur, Jac- President, I want to congratulate Mi- ior and senior high schools were wired. quelyn Blaser, Brianna Blaser, Kristen chael Trofi, a fine teacher who deserves I expect these numbers to dramatically Bowen, Arianne Boylan, Christine so much credit for guiding the West increase as NetDay organizer compile Chase, Heather Ann Church, Kimberly Warwick High School team to the na- results from Saturday’s activities. Crowder, Margaret Eaton-Sainers, tional finals. Throughout the United States, volun- Carlita Fletcher, Jessica Gaines, As Mr. Trofi and this fine group of teers climbed ladders and got on their Brianna Gibson, Kathleen Henley, West Warwick High School students hands and knees to install the wiring Kishuana Jarmon, Gretchen Kallemyn. prepare for their trip to Washington to infrastructure needed to connect thou- Lyndsay Madden, Grace McCann, compete in the national finals on April sands of elementary and secondary Jennifer McKelvey, Jennifer Miller, 26–28, I want to congratulate them for school classrooms with contemporary Laura Murray, Linda Jean Rinko, what they have already achieved and technology. Janis Sanders, Alea Lu Schroeder, wish them the best of luck in the final As I have mentioned in earlier floor Jana Siskind, Kelsi Stembel, Andrea competition. These students, with the speeches, NetDay began in California Stuart, Tanya Wessells, Denise White. ∑ guidance of Mr. Trofi, have learned on March 9, 1996. The term was coined f what our Nation is all about and what by cofounders John Gage of Sun Micro- WE THE PEOPLE . . . THE countless men and women have fought systems, one of the Nation’s leading technology companies and Michael CITIZENS AND THE CONSTITUTION and died to protect. No matter what Kaufman of KQED, a California public ∑ Mr. CHAFEE. Mr. President, I want the outcome of the contest is, they have each earned the greatest prize of broadcasting station. Mr. Gage and Mr. to commend 25 outstanding students Kaufman saw this initiative as a day all: Knowledge.∑ from West Warwick High School in where hundreds of Californians came f West Warwick, RI, who will be visiting out to an ‘‘old fashioned barn raising Washington later this month to com- SUPPORTING NETDAY for the modern technology age.’’ pete in the national finals of the ‘‘We ∑ Mrs. FEINSTEIN. Mr. President, I Just as volunteers would gather in The People . . . The Citizens And The the Nation’s early years, with neighbor Constitution’’ program. rise today to alert this body to a very special event, which took place this helping neighbor, to build homes, barns For those of my colleagues who are or community buildings, California’s not familiar with it, the ‘‘We The Peo- past weekend, called NetDay. NetDay, which began in 1996, is a unique part- NetDay volunteers gather in support of ple . . . The Citizens And The Constitu- neighborhood schools. Amazingly, and tion’’ program is among the most ex- nership between the public, private and educational communities with the to their surprise, NetDay succeeded in tensive educational programs in the one year in wiring 3,500 schools effi- country, developed to educate young common goal of fitting K–12 classrooms with the technological infrastructure ciently and cost-effectively, establish- people about the Constitution and the ing and improving our classroom infor- Bill of Rights. The three-day national needed for the 21st century. In the beginning of this year, on be- mation infrastructure up and down the competition simulates a congressional State. half of myself, Senator JOHN WARNER, hearing in which students’ oral presen- However, as our classrooms continue Senator CONRAD BURNS, Senator tations are judged on the basis of their to modernize and improve their techno- CHARLES ROBB, Senator PATTY MUR- knowledge of constitutional principles logical infrastructure there is much RAY, and Senator BARBARA BOXER, I in- and their ability to apply these prin- work to be accomplished, both in Cali- troduced Sense of the Senate Resolu- cipals to contemporary situations. fornia and throughout the Nation. Con- tion 51, celebrating the success of Administered by the Center for Civic sider the following: Education, the ‘‘We The People . . . NetDay activities and encouraging all According to the Department of Edu- The Citizens And The Constitution’’ schools to participate in 1997 NetDay cation half of our K–12 schools lack full program provides an excellent oppor- activities, including the projects which access to advance technology in the tunity for students to gain an informed took place this past weekend. As I did classroom. perspective on the significance of the in February of this year, when I intro- Ninety-five percent of those K–12 U.S. Constitution and its place in our duced the NetDay resolution, I would schools who want to but are not yet history. We hear so much these days like to again commend the organizers wired, do not have the needed budg- about growing apathy and ignorance and volunteers of NetDay, an excellent etary resources or organized volunteer among young people about our history example of individuals creating a base to wire their schools. and governmental traditions. In my stronger community with the goal of Rural areas and regions with high view, programs such as this can go a increasing the quality of their schools. poverty continue to have less access to long way to combat these ills. It is The success of this weekend was im- advanced educational technology com- heartening to see young Rhode Island- pressive. Although it is still too early pared to their suburban and urban ers taking such an active and to cite official statistics of Saturday’s counterparts. participatory interest in public affairs. event, NetDay organizers have stated These few points illustrate that there Mr. President, you may be interested that ‘‘schools up and down the State, is still much to be done in our chil- to know that West Warwick High in isolated towns in the north, farming dren’s classrooms. NetDay organizers School has an outstanding track record towns in the central valley, and hun- are committed to working with under in the ‘‘We The People . . . The Citi- dreds in urban communities all partici- served neighborhoods and ensuring zens And The Constitution’’ program. pated in NetDay.’’ In addition, the 38 that the appropriate resources, both in The West Warwick team has won the empowerment zone schools of the Los volunteers and computer wiring kits, Rhode Island State competition for 7 of Angeles Unified School District were are channels to these communities. In the past 10 years. involved in NetDay activities and fu- addition, this year’s NetDay will focus I am very proud of Jamie Amaral, ture planning. Last year alone, NetDay on communities that did not fully ben- Mary Asselin, Jonathan Bassi, Justin was successful in bringing out more efit from last years initial set of April 22, 1997 CONGRESSIONAL RECORD — SENATE S3459 projects and activities. In all, NetDay services to Chinese Americans in the the Hubble telescope. The most com- continues to save schools and tax- Greater Detroit area, is celebrating its plex undertaking in unmanned space payers millions of dollars in edu- 25th anniversary on April 26, 1997. study, the telescope can peer into the cational technology startup costs, In 1972, Michigan residents of Chinese deepest reaches of space. And it was while training and equipping teachers descent formed the Association of Chi- only Lyman Spitzer’s vision, advocacy with the knowledge needed to be a suc- nese Americans with the motto ‘‘Em- and tenacity which made this dream a cessful and integral part of the tech- bracing the hopes and dreams of Chi- reality. He shepherded the project nical educational experience. nese in the United States.’’ The ACA from, as the New York Times noted, ‘‘a According to NetDay organizers, this became the first chapter of the Organi- glimpse in his own eye in 1947,’’ to its year’s relationship between private zation of Chinese Americans, a na- liftoff in 1990. business, the labor community, and tional group which helps Chinese- Mr. President, Mr. Spitzer’s interests neighborhood schools is stronger than Americans preserve and promote their included all aspects of astronautics. He ever. Business sponsors and corporate cultural heritage in the United States. was the catalyst of the Copernicus Or- volunteers will be instrumental in Many people in metropolitan Detroit biting Astronomical Observatory, an making NetDay a successful reality. have benefited from the ACA’s activi- ultraviolet predecessor of Hubble that The small, and large, companies con- ties, which includes physical and men- NASA launched in 1972. He was also a tinue to supply the project the needed tal health services and legal counseling pioneer of the effort to use nuclear fu- computer and wiring equipment, and for people in need. The ACA also spon- sion as a clean and limitless source of have also encouraged their employees sors social and educational activities energy. And Spitzer was the founding to work with their children’s or neigh- for Chinese-American youth, such as director of the Princeton Plasma Phys- borhood schools. In addition, the labor dance troupes, camping trips, and col- ics Laboratory, where he worked until community will continue to go into lege scholarships. the day he died. schools across America, where they are The ACA plays an important role in Lyman Spitzer enhanced our vision committed to work with private part- preserving and promoting elements of of the universe, increased our knowl- ners in ensuring that their local Chinese culture in the United States, edge of the stars and expanded our own schools have the educational infra- helping to keep Chinese art, language, horizons. He is an outstanding example structure needed for a well trained and traditions alive within the Chi- of the difference a single individual can work force for the 21st century. The nese-American community. One of make. Others may continue his work in most valuable asset of NetDay contin- America’s great strengths is its diver- Princeton, but no one will ever be able ues to be the commitment of thousands sity, and the ACA helps to remind us to replace him.∑ of volunteers who will work in their all of the valuable additions Chinese- f community schools. Americans have made to American cul- CENTRAL MARYLAND GIRL SCOUT As the communities throughout ture. GOLD AWARD RECIPIENTS America celebrate their NetDay ac- The ACA has encouraged Chinese- ∑ Ms. MIKULSKI. Mr. President, each complishments and prepare for future Americans to participate in the elec- year an elite group of young women activities for this year and beyond, it toral process, and has helped give Chi- rise above the ranks of their peers and is my honor to once again, recognize nese-Americans a strong voice in our confront the challenge of attaining the the NetDay cofounders, Michael Kauf- political system. Members of the ACA Girl Scouts of the United States of man and John Gage, and organizers, frequently share their opinions, in- America’s highest rank in scouting, Ann Murphy and Teresa Wann, and the sights, and knowledge of issues which the Girl Scout Gold Award. dozens of corporate sponsors and busi- affect the Chinese-American commu- It is with great pleasure that I recog- ness partners, and the thousands of nity with elected officials at all levels nize and applaud young women from students, teachers, parents, and school of government. the State of Maryland who are this administrators for their achievement. The Association of Chinese-Ameri- year’s recipients of this most pres- The success and commitment they cans has been effective in furthering tigious and time honored award. have shown to America and my State the hopes and dreams of Chinese-Amer- These outstanding young women are of California should be applauded. icans. I am proud to have such a vi- to be commended on their extraor- My colleague and cochair on the U.S. brant and important organization in dinary commitment and dedication to Senate information technology caucus, Michigan, and I invite my colleagues to their families, their friends, their com- Senator JOHN WARNER, Senator CONRAD join me in offering congratulations to munities, and to the Girl Scouts of the BURNS of Montana, Senator CHARLES the men and women of the ACA on the United States of America. ROBB of Virginia, Senator PATTY MUR- occasion of its 25th anniversary.∑ The qualities of character, perseve- RAY from Washington, and my Califor- [At the request of Mr. REID, the fol- rence, and leadership which enabled nia colleague Senator BARBARA BOXER lowing statement was ordered to be them to reach this goal will also help join me in supporting the advancement printed in the RECORD.] them to meet the challenges of the fu- of educational technology by sponsor- f ture. They are our inspiration for ing this resolution. Together, we urge HONORING THE LIFE OF LYMAN today and our promise for tomorrow. our Senate colleagues to affirm con- SPITZER, JR I am honored to ask my colleagues to gressional support for preparing U.S. join me in congratulating the recipi- classrooms with the needed techno- ∑ Mr. LAUTENBERG. Mr. President, I ents of this award from the State of logical infrastructure for the 21st cen- rise today to pay tribute to an out- Maryland. They are the best and the tury. standing scientist and visionary, Mr. brightest and serve as an example of I invite my Senate colleagues to join Lyman Spitzer Jr., who recently died character and moral strength for us all this public-private partnership effort in Princeton, NJ at the age of 82. Mr. to imitate and follow. and I congratulate all the volunteers Spitzer was one of those rare individ- Finally, I wish to salute the families, who participated in NetDay 1997 and uals who not only made history, he ac- scout leaders, and the Girl Scouts of encourage them to keep up the com- tually changed history. Central Maryland who have provided mendable and exemplary work.∑ Spitzer was a theoretician of astro- these young women with continued f physics and plasma physics who in- support and encouragement. spired the Hubble Space telescope and It is with great pride that I submit a ASSOCIATION OF CHINESE- a myriad of orbiting observatories. His list of this year’s Girl Scout Gold AMERICANS, INC. scientific contributions began decades Award recipients from the State of ∑ Mr. LEVIN. Mr. President, I rise ago, when he played a leading role in Maryland, and I ask that the list be today to pay tribute to a remarkable the development of sonar during World printed in the RECORD. organization in my home State of War II. The material follows: Michigan, the Association of Chinese After World War II, Spitzer’s atten- GIRL SCOUTS OF CENTRAL MARYLAND Americans, Inc. The ACA, which pro- tion turned to what would become his Claire Adams, Laurie Lee Albright, Lisa motes the presence of and provides lifelong dream and his lifelong work, Birkenheuer, Lyndsay Braswell, Jennifer S3460 CONGRESSIONAL RECORD — SENATE April 22, 1997 Breighner, Joanna Buckley, Clair Cozad, Me- ment Shutdown Prevention Act. I com- understand what a terrible mistake lissa Daniels, Sarah Vezzetti, Emily Wilson, mend Senator MCCAIN for his leader- that was. Many of us said so at the Melissa Wittnebel, Marla Conley, Allison ship in drafting this important legisla- time, but we were ignored. During that Mays, Penelope McLaughlin, Sheri Scoville, tion. same period, the United States propped Kathryn Fryer, Sarah Gibbons. Jessica Hamman, Diana Maddox, Sarah We all lose when the Government up General Noriega in Panama, until Magliano, Jillian McFarland, Michelle Mid- shuts down. In Montana, as well as he was no longer useful to us. dleton, Erin Owen, Elizabeth Ruifrok, Aman- across the Nation, Federal workers But you do not hear very much about da Sadeghin, Christina Santoni, Jonette G. were furloughed and national parks the good uses of foreign aid, and how it Shaffer, Stephanie G. Zonak, Jamila How- were closed; businesses and families makes a difference between life and ard, Janelle Milam, Elizabeth Disharoon, were negatively affected when the Gov- death, or hope and misery, for millions Anne Fowler, Keri Jamison, Courtney ernment shut down in December 1995 of people around the world. In fact, McDevitt. and January 1996. Consequently, mil- there are far more examples of those Brighid Tewey, Emily Wright, Katherine lions of dollars were lost. good uses, than of the scandals that at- Barrow, Diana Constantinides, Mary Hood, tract the attention of the media. Shannon Lawson, Abigail Link, Christina President Clinton put Congress be- Miller, Chris Mullinix, Trisha Sater, Julie tween a rock and a hard place in that One example is the War Victims Day, Kathleen Hall, Kristin Heisey, Jennifer he knew that we did not want to risk Fund project in Uganda. This project Lewis, Julie Petr, Lisa Philipose.∑ another Government shutdown. We began in 1989, and it is now coming to f were forced to pass a budget that added an end. I think Members of Congress $6 billion back into Clinton’s pet pro- and the public should know about it, THE 100TH ANNIVERSARY OF OS- grams. The President was more inter- because it is a remarkable example of TEOPATHIC MEDICINE IN MICHI- ested in playing politics than he was in what the U.S. Government, a private GAN balancing the budget. voluntary organization, the good will ∑ Mr. LEVIN. Mr. President, I would Montanans are tired of political and hard work of American volunteers, like to make my colleagues aware of games. We can not let the administra- and the support of the Government of an important anniversary in the his- tion replay its efforts to force Congress Uganda, have done for the benefit of tory of health care in Michigan. Pre- to spend billions of dollars just to thousands of wounded and severely dis- cisely 100 years ago today, osteopathic avoid the threat of a shutdown because abled people in that country. physicians became licensed to practice of gridlock. It is the responsibility of Uganda, a once productive country medicine in Michigan. the Government to work for the peo- that boasted the finest medical school Michigan was the fourth State to le- ple—not against them. in sub-Saharan Africa, was virtually destroyed by the disastrous Idi Amin galize the practice of osteopathy and, Senator MCCAIN’s bill provides a safe- according to the Michigan Association guard against Government shutdowns. and Obote regimes. The medical school of Osteopathic Physicians and Sur- It establishes an automatic continuing was destroyed, its faculty members geons, today has the largest number of resolution to provide the lowest spend- killed or run out of the country. Years osteopathic practitioners in the Na- ing levels for Federal agencies and pro- of civil war left thousands of casual- tion. For the past 100 years, osteo- grams in the event that the annual ap- ties, including many victims of land- pathic physicians have served the peo- propriations bills are not enacted by mines. In 1989, the year the Leahy War Vic- ple of Michigan by developing thera- the start of the fiscal year. This pro- tims Fund was established, USAID peutic and diagnostic methods of treat- vides an incentive to pass appropria- began a project in Uganda. It was im- ing disease to accompany traditional tions bills in a timely manner. plemented by Health Volunteers Over- medical procedures. This bill also addresses the concerns seas, a Washington, DC-based organiza- The philosophy of osteopathy was of those on Medicare, Medicaid, and tion that sends volunteer doctors, first articulated by Dr. Andrew Taylor Social Security as it specifically states nurses, and other medical professionals Still, a physician from the State of that entitlements will be paid regard- Missouri. Dr. Still’s teachings guide to- to train people in poor countries. less of what appropriations are passed. Health Volunteers Overseas did an day’s osteopathic physicians as they I feel that the Government Shutdown extraordinary job in Uganda during the integrate standard medical practices Prevention Act protects Montanans. 7-year life of this project. There were with the body’s natural systems for No longer will Montana’s elderly and tremendous achievements, and one ter- regulating and healing itself, espe- disabled have to fear not being able to rible tragedy when Dr. Rodney Belcher, cially the largest of these, the mus- pay medical bills because of a Govern- the Virginia orthopedic surgeon with- culoskeletal system. ment shutdown. Welfare recipients will out whom the project would not have People from every corner of Michigan not have to worry about going hungry accomplished nearly so much, was have benefited from the care of osteo- because of the President’s political gunned down in a robbery. His loss was pathic physicians, who can be found in gameplaying. Finally, Montana com- felt throughout Uganda, because so disciplines ranging from family prac- munities like West Yellowstone, Gar- many people knew of his selflessness, tice to surgery. We are truly grateful diner, and Columbia Falls—which serve and that he had literally given his life for the commitment to quality care as gateways to Yellowstone and Gla- for them and future generations in that made by these doctors—the members of cier National Parks—will not suffer be- country. His legacy is the scores of the Michigan Association of Osteo- cause gridlock has forced the closure of Ugandan health professionals he pathic Physicians and Surgeons, the national monuments and parks. The trained who are carrying on his work Michigan Osteopathic Hospital Asso- Government Prevention Shutdown Act today. ciation, the Michigan Women’s Osteo- ensures that the Government is work- Mr. President, HVO’s final report on pathic Auxiliary, the Michigan Osteo- ing for the benefit of Montana. This is the Uganda project should be read by pathic Medical Assistance Association, why I am proud to be a cosponsor of all. Its staff and volunteers deserve our and the Michigan Osteopathic Guild this bill.∑ sincere thanks, and our continued sup- Association. f port. USAID, and President Museveni I know my colleagues join me in of- HEALTH VOLUNTEERS OVER- and his Health Ministry, also deserve fering best wishes and congratulations credit. I ask that excerpts of the report to the osteopathic physicians of Michi- SEAS—UGANDA WAR VICTIMS PROJECT be printed in the RECORD. gan, who have served the community The excerpts of the report follow: with dedication and compassion for the ∑ Mr. LEAHY. Mr. President, we hear EXCERPTS OF FINAL REPORT—UGANDA people complain about how foreign aid past 100 years.∑ ORTHOPAEDICS AND PHYSICAL THERAPY FOR f is a waste of money, and there are cer- THE DISABLED PROJECT tainly examples of it. The United INTRODUCTION THE GOVERNMENT SHUTDOWN States poured countless millions of PREVENTION ACT In August of 1989, Health Volunteers Over- dollars into the pockets of President seas (HVO) entered into a three year grant ∑ Mr. BURNS. Mr. President, today I Mobutu, and one need only observe the agreement with the U.S. Agency for Inter- rise in support of S. 228, the Govern- chaos and suffering in Zaire today to national Development (USAID) Mission in April 22, 1997 CONGRESSIONAL RECORD — SENATE S3461 Uganda to ‘‘improve the provision of This training continued under the direc- The goal of these trips outside of Kampala orthopaedic, prosthetic, orthotic and phys- tion of another OR nurse, Wilma Ostrander, was to increase the visibility of the services ical therapy services for Uganda’s thousands who served several tours in Uganda. She fo- available for the disabled, to identify pa- of children and adults who have lost upper cused her efforts on improving the efficiency tients in need of services and to successfully and lower limbs, been crippled through the and effectiveness of the OR nursing and para- enroll them in treatment programs. paralytic residual of poliomyelitis or other- medical staff through a series of lectures and With the end of the grant, this aspect of wise become immobilized, especially those demonstrations. She also participated in the the project is perhaps the least likely to con- persons whose disabilities resulted from civil development of infection control programs tinue, although the need for this type of out- strife’’. designed to improve the safety of the envi- reach is critical. Funds are needed for trans- This grant concluded on December 31, 1996. ronment in the operating rooms resulting in portation, as well as food and housing for the * * * * * lower post-operative infections and com- team members. It is unlikely that the Min- plications. istry of Health will be able to fund as many ACCOMPLISHMENTS On return visits, she also assisted the de- trips as originally planned on an annual Facilities partment in the development of a computer- basis. HVO renovated and furnished the Polio ized inventory system to track the utiliza- Other Accomplishments Clinic at Old Mulago Hospital to serve as the tion of supplies and equipment. This has fa- HVO was able, with funds from the grant, site for the Department of Orthopaedics. The cilitated the development of a departmental to identify and procure essential educational renovated building included space for depart- system to reorder supplies as needed, a criti- materials, including books, journals, slide mental offices, weekly clinics, library, stor- cal function for the department. As part of sets, and videos. HVO also purchased items age, seminar/classroom, and the HVO offices. this process, she has introduced the utiliza- HVO renovated and equipped the operating tion of patient records and patient supply necessary for the viewing and development room suite at Ward 7 at Old Mulago, creating lists so that there is a record available trac- of educational materials. For example, HVO two ‘‘clean’’ theaters for non-septic cases. ing the items used and to facilitate stock or- procured overhead and slide projectors, a tel- These rooms were opened in March of 1991 ders. evision and video machine, computers with and according to a report dated January 31, As the OR became functional, it also be- CD–ROM capabilities, and a photocopier. Ac- 1995, ‘‘the well trained nursing and theater came clear that there was not an adequate cess to this equipment is essential as mem- staff [are] working smoothly to assist the number of trained technicians at the hos- bers of the department or volunteers seek to surgical teams in performing an average of pital who could handle the maintenance and organize lectures and teaching materials for 20 surgical operations weekly for conditions servicing of the medical equipment needed students. including polio, trauma, fractures, spinal for surgery. This was particularly evident in More than 5,000 books and journals were and hip injuries, tuberculosis, cerebral palsy, the lengthy process required for the commis- shipped to Uganda under the auspices of this bone tumors, club feet and a variety of se- sioning of the autoclave purchased for the grant. Most of these were donated by mem- vere and late burns of hands and limbs’’. Ward 7 OR suite. Once commissioned, Dr. bers of HVO. HVO, based on input and rec- HVO rebuilt and equipped the Mbale Work- Belcher learned that there was no one on the ommendations of the senior members of the shop which had been destroyed in a fire in staff of the hospital who could maintain this Department of Orthopaedics, also procured a March of 1990. autoclave, despite the fact that it was simi- set of current reference texts in medicine, HVO renovated and furnished a guest house lar to others at New Mulago Hospital. rehabilitation, and orthopaedics for the de- on the hospital grounds to serve as housing As a result, HVO entered into a collabo- partmental library. This order filled many for volunteers. rative relationship with the American Medi- gaps that existed in the library and will HVO built a new, larger sterile store room cal Resources Foundation (AMRF), a Boston- serve the educational needs of the depart- adjacent to the OR suite in the fall of 1996. based NGO, to design and deliver a series of ment for many years to come. This was funded by a private donation to workshops to teach Ugandan technicians at One of HVO’s educational objectives at the HVO, not with grant monies. both Old and New Mulago Hospitals how to Medical School and Mulago Hospital was to Training and Education repair, maintain and service medical equip- develop better interaction and communica- HVO established a M.Med. (Orthopaedics) ment. A total of three workshops were held tion between the various departments in- postgraduate degree at Makerere University in 1996 focusing on the repair of cardiology, volved in patient services and teaching. This and Mulago Hospital. The goal of this pro- radiology, anesthesia, respiratory and OR was accomplished through the development gram is to train a corps of Ugandan equipment. The first workshop was attended of a weekly joint conference with the Radiol- orthopaedic surgeons who will be qualified to by 30 hospital engineers and technicians ogy Department where orthopaedic surgeons continue the teaching program in from Mulago, Mengo, Rubago and Nsambya and radiologists reviewed patient x-rays and orthopaedic surgery and trauma manage- Hospitals. Although there was significant in- learn from one another. Similar conferences ment after the end of this grant. The cur- terest in the other two workshops, HVO and were established with a joint pathology, ra- riculum for this four year degree was ap- AMRF decided to limit the number of par- diology, orthopaedic, and oncology con- proved by the University Senate and accept- ticipants to 15 in order to ensure adequate ference held monthly. Other joint con- ed by the School of Postgraduate Studies in time for hands-on work in diagnosing and re- ferences were established with the 1995. The authors of the curriculum included pairing equipment. Neurosurgical and Pediatric Departments. HVO also sent a resident to Hong Kong for In addition, HVO, with the assistance of Drs. Belcher and Lawrence Gordon. In the 2.5 months of post-graduate training at the Dr. Belcher, was able to develop links with fall of 1995, three young Ugandan physicians University of Hong Kong under the direction other departments. HVO initiated volunteer- were formally enrolled in the program as the of Professor John C.Y. Leong. This training staffed teaching programs with the depart- first residents. not only served as an opportunity to see how Over the life of this grant, various cadres ments of anesthesia, medicine and pediat- services are delivered in another country, of personnel were taught the principles of rics. Strengthening the capacity of these de- but also fostered the development of profes- orthopaedic surgery and trauma manage- partments to treat patients and to teach fu- sional contacts outside of Uganda. ment. According to a summary provided by ture generations of Ugandan medical provid- Dr. Belcher in 1995, over 450 medical stu- Extension of Services ers is critical to the overall improvement of dents, 45 physicians and surgeons, 36 The scope of this project was national. health care in Uganda. When it became evident that HVO volun- orthopaedic assistant paramedical officers, HVO, under the direction of Dr. Belcher, fo- teers would not be able to have an active 16 physical therapists and 40 nurses had been cused considerable effort on expanding the role assisting AVSI in the School for Phys- exposed to training and education related to delivery of services to hospitals outside ical Therapists, HVO recruited several PT orthopaedic surgery. Kampala and developing an effective Considerable effort was also devoted to orthopaedic referral system for the up-coun- volunteers to work primarily with the De- training the OR personnel and surgical nurs- try regions of Uganda. partments of Physical Therapy. Donna ing staff in operating theater sterile tech- For the first three years of the project, Tinsley, a PT who spent 6 months in Kam- niques and surgical procedures. When the op- regular visits to various up-country facilities pala with the project, taught PT students erating theaters at Ward 6 were nearing com- were undertaken by members of the Depart- during bedside ward rounds on Ward 7 as well pletion, HVO sent an experienced OR nurse, ment of Orthopaedics, usually accompanied as in the amputee, cerebral palsy and polio Theresa McInerney, to Kampala for a 6 by a volunteer. Patients would be examined clinics. month tour. Her job was to get the newly and the difficult cases referred to Mulago for PROBLEMS ENCOUNTERED renovated OR suite functioning. This in- surgery. Others would be measured and Some of the problems encountered in the cluded organizing donations received from fitted with calipers or, if feasible, taken into course of implementing this project are in- the United States, determining what addi- surgery. herent in the way international assistance is tional items needed to be procured from the These visits ceased when travel funds for designed. The original grant was for a period United States or could be made locally, and department personnel were no longer forth- of three years, an extremely short period of developing procedures to ensure that sterile coming from the Ministry of Health. How- time in which to ‘‘improve the provision of technique was maintained. She also initiated ever, Dr. Belcher planned an ambitious pro- orthopaedic, prosthetic, orthotic and phys- a series of classes for the OR personnel in OR gram of up-country visits starting again in ical therapy services . . .’’ for a country such technique with a special emphasis on asepsis 1996. as Uganda. Extensions were forthcoming but and the importance of productivity. * * * * * only for 12 to 18 months at a time. This S3462 CONGRESSIONAL RECORD — SENATE April 22, 1997 short-term focus prevented HVO from devel- certainly appears to be an overlap of mutual a book, in order to demonstrate to oping longer range plans that might have interests and HVO/Washington has strongly their children the sweetness of learn- been more effective. supported this possibility. ing. And learning is sweet, because it The logistical problems involved in ren- However, * * * without a certain level of enriches our lives; it opens our minds ovating and equipping the departmental of- ongoing financial support there will be some fices and OR suites on Ward 7 were, at times, serious problems ahead for the department to new possibilities, and it allows us to monumental. Dealing with local contractors and for the delivery of orthopaedic and reha- fully enjoy the wonders of the universe. was very difficult. Materials were often de- bilitation services to the population at large Mr. President, as we honor this layed or ‘‘went missing’’. Workers might not in Uganda. year’s scholarship winners, I also want show up on time or even at all. These prob- * * * * * to commend the Most Worshipful lems contributed to a substantial delay in Grand Lodge for its outstanding com- SUMMARY the project which was compensated for by a munity work, particularly in the area one-year extension. This project began in the fall of 1989 in the of education. Through its actions, the Communications between the field office midst of great anticipation and hope. Uganda and HVO’s Washington office were hampered was recovering from a long period of intense Grand Lodge demonstrates that not by frequent power outages and missing faxes. civil strife marked by intense fighting, bru- only does it take an entire village to This situation, however, improved over the tality and bloodshed. HVO had an oppor- raise a child, it takes an entire commu- life of the project, especially with the intro- tunity to participate in a program that nity to educate a child. duction of e-mail. would help rehabilitate the lives of thou- I again congratulate all of the schol- As was mentioned above, there were recur- sands touched in one way or another by the arship winners, and I wish them con- ring problems with the maintenance of breakdown of society during this period. equipment, including, but not limited to, tinued success as they continue on the Now, seven years later, we can say that path of knowledge and the path of life. medical equipment. Due to power surges, of- this project has done much to ‘‘improve the ∑ fice equipment frequently was damaged, provision of orthopaedic, prosthetic, orthotic f often beyond repair. The problems associated and physical therapy services for Uganda’s with the commissioning of the autoclave AMENDMENTS TO THE COMMITTEE thousands of children and adults who have RULES OF PROCEDURE IN THE might well serve as a case study in the dif- lost upper and lower limbs, been crippled ficulties in merging a highly sophisticated through the paralytic residual of polio- CONGRESSIONAL RECORD piece of equipment into a facility which can- myelitis or otherwise become immobilized, ∑ Mr. SMITH of New Hampshire. Mr. not provide adequate supplies of water and especially those persons whose disabilities President, Senator REID joins me to electricity. Despite considerable research resulted from civil strife’’. ask that changes to the Rules of Proce- and investigation as to which autoclave The death of Dr. Rodney Belcher was a dure for the Select Committee on Eth- would be best suited to the department’s devastating even. His death, however, serves needs and building’s capacity, this autoclave as a beacon for members of the department ics, which were adopted February 23, was inoperable for several years. When fi- and HVO who are determined not to allow 1978, and amended by the full commit- nally commissioned, its maintenance was a this event to diminish the accomplishments tee on March 18, 1997, be printed in the recurring problem. of his many years of dedication and hard CONGRESSIONAL RECORD. The material PROJECT SUSTAINABILITY work.∑ follows: The death on March 11, 1996, of Dr. Rodney [At the request of Mr. REID, the fol- Rule 9, Procedures for Handling Committee Belcher was a tremendous loss for all in- lowing statement was ordered to be Sensitive and Classified Materials, and Rule volved in this project. Dr. Belcher was mur- printed in the RECORD.] 14, Procedures for Waivers, of the Supple- dered in front of the HVO office on the hos- f mentary Procedural Rules are amended as pital grounds in the course of a carjacking follows: attempt that was ultimately unsuccessful. HONORING THE MOST WORSHIP- Rule 9: * * * * * FUL GRAND LODGE’S SCHOLAR- (c) Procedures for Handling Committee Given the unexpected and tragic turn of SHIP WINNERS Sensitive and Classified Documents: events in 1996, what are the chances that ac- (1) Committee Sensitive documents and ∑ Mr. LAUTENBERG. Mr. President, materials shall be stored in the Committee’s tivities undertaken to date will continue and the Most Worshipful Grand Lodge, Ma- that the impact of these many years of hard offices, with appropriate safeguards for work will be sustained over time? sonic Architects of the Universe, Inc., maintaining the security of such documents On a positive note, the senior members of Ancient Free and Accepted Masons, or materials. Classified documents and mate- the department immediately took charge Electa Grand Chapter, Order of the rials shall be further segregated in the Com- upon Dr. Belcher’s death and appropriately Eastern Star of Newark, NJ, will be mittee’s offices in secure filing safes. Re- divided the departmental workload. The de- awarding scholarships to at least 16 de- moval from the Committee’s offices of such partment has continued to function with serving students at its second annual documents or materials is prohibited, except as necessary for use in, or preparation for, weekly clinics, twice weekly operating Scholarship Banquet on May 18. Young schedules, ward rounds, seminars, etc. interviews or Committee meetings, including Through the end of 1996, thanks to funding people from New York; Connecticut; the taking of testimony, or as otherwise spe- available from HVO, up-country outreach Washington, DC; and Essex and Hudson cifically approved by the staff director or by clinics were conducted. Dr. Naddumba has counties in New Jersey will be recog- outside counsel designated by the Chairman been elected Head of the Department and has nized during the evening’s ceremonies. and Vice Chairman. earned high marks for his administrative I congratulate all the scholarship re- (2) Each member of the Committee shall and political skills. cipients, and I encourage them to al- have access to all materials in the Commit- Health Volunteers Overseas will continue ways strive for academic excellence. In tee’s possession. The staffs of members shall not have access to Committee Sensitive or to send volunteers to share their technical the words of poet Muriel Ruyskier, I expertise with members of the Department classified documents and materials without of Orthopaedics. HVO will also send volun- urge them to ‘‘reach the limits of the specific approval in each instance of the teers to work with faculty and students in themselves, to reach beyond them- Chairman and Vice Chairman, acting jointly. the Departments of Medicine, Pediatrics, selves.’’ Members of the Committee may examine and Anesthesia. Mr. President, education is the key such materials in the Committee’s offices. If In addition, Dr. Norgrove Penny, a Cana- that unlocks the door to the future. By necessary, requested materials may be hand- dian orthopaedic surgeon and member of the year 2000, 60 percent of all new jobs delivered by a member of the Committee Orthopaedics Overseas, accepted a four year in America will require advanced tech- staff to a member of the Committee, or to a contract in Kampala with the Christoffel staff person specifically designated by the Blindenmission (CBM) beginning in August nology skills. Anyone who does not member, for the member’s or designated of 1996. He is working in conjunction with have the required education will not be staff person’s examination. A member of the the Uganda Society for Disabled Children able to compete. Education isn’t a lux- Committee who has possession of Committee and the Leonard Cheshire Homes of Uganda, ury, it’s a necessity. Sensitive documents or materials shall take both British based charities working in com- I know that the scholarships awarded appropriate safeguards for maintaining the munity based projects. His job includes de- by the Most Worshipful Grand Lodge security of such documents or materials in veloping services to up-country district hos- will help the recipients face tomor- the possession of the member or his or her pitals who at present have no orthopaedic row’s challenges. But I also hope that designated staff person. services. (3) Committee Sensitive documents that There have been discussions between mem- these awards will instill in the winners are provided to a Member of the Senate in bers of the Department of Orthopaedics at a love for education. In the 19th cen- connection with a complaint that has been Mulago Hospital and Dr. Penny regarding tury Jewish ghettos of Eastern Europe, filed against the Member shall be hand-deliv- the possibility of working together. There mothers used to pour a little honey on ered to the Member or to the Member’s Chief April 22, 1997 CONGRESSIONAL RECORD — SENATE S3463 of Staff or Administrative Assistant. Com- ensure military and national pre- top of that, the tax burden has in- mittee Sensitive documents that are pro- eminence in several strategic tech- creased, putting a serious strain on col- vided to a Member of the Senate who is the nologies with both military and com- lege graduates as they work to pay off subject of a preliminary inquiry, an initial mercial application such as informa- their loans and interest and still get review, or an investigation, shall be hand de- livered to the Member or to his or her spe- tion technology, high-performance ahead in the job market. cifically designated representative. computing, advanced electronics, ma- Let us give student loan recipients a (4) Any Member of the Senate who is not a terials and modeling and simulation. tax break. Let us send a message about member of the Committee and who seeks ac- Her active outreach within the Depart- the importance of student loans and cess to any Committee Sensitive or classi- ment of Defense expanded greatly the higher education. This is a sound in- fied documents or materials, other than doc- scope of the Defense S&T Program and vestment in our Nation’s future.∑ uments or materials which are matters of the speed and ease at which technology f public record, shall request access in writing. is developed and transitioned into our The Committee shall decide by majority HONORING FRED VANDERVEEN OF warfighting arsenal and support infra- vote whether to make documents or mate- SALISBURY, MD rials available. If access is granted, the structure. Furthermore, her direct sup- Member shall not disclose the information port of pervasive technologies such as ∑ Ms. MIKULSKI. Mr. President, I rise except as authorized by the Committee. high end computing and semiconduc- today to pay tribute to a very special (5) Whenever the Committee makes Com- tors resulted in breakthroughs across a American, Mr. Fred Vanderveen, of mittee Sensitive or classified documents or wide spectrum of applications, both Salisbury, MD. I am proud to say that materials available to any Member of the military and civilian, such as modeling Mr. Vanderveen is the 1997 winner of Senate who is not a member of the Commit- of geophysical phenomenon, aero- the National Heroes Award from the tee, or to a staff person of a Committee dynamics and process flow, which con- Sporting Goods Manufacturer’s Asso- member in response to a specific request to ciation. This prestigious award is given the Chairman and Vice Chairman, a written tributed directly to our Nation’s abil- record shall be made identifying the Member ity to execute a record number of each year to three individuals who of the Senate requesting such documents or peacekeeping and military operations make outstanding and unique humani- materials and describing what was made without the loss of a single life due to tarian contributions to local sports available and to whom. combat. programs throughout the Nation. Rule 14: Dr. Jones’ awards include the Depart- Fred Vanderveen is a full-time high (c) Ruling: The Committee shall rule on a ment of Defense Award for Distin- school biology teacher. But the class- waiver request by recorded vote, with a ma- guished Public Service and the Meri- room is only one area where Mr. jority of those voting affirming the decision. Vanderveen is preparing our children With respect to an individual’s request for a torious Civilian Service Award. She waiver in connection with the acceptance or has served on several Government advi- for the future. He knows that develop- reporting the value of gifts on the occasion sory boards and scientific review pan- ing the health and fitness of our chil- of the individual’s marriage, however, the els such as the Defense Science Board, dren’s bodies is as important as devel- Chairman and the Vice Chairman, acting Air Force Scientific Advisory Board, oping their minds. He also knows that jointly, may rule on the waiver request.∑ the National Research Council, and the kids need a safe place to go where they f National Science Foundation. She is a can have positive experiences, where they will be among friends, and where TRIBUTE TO DR. ANITA JONES member of the National Academy of Engineers and is a fellow of the Asso- they will feel important. So he in- ∑ Mr. ROBB. Mr. President, I rise ciation of Computing Machinery and vested his life’s savings in a sports and today to recognize the professional the Institute of Electrical and Elec- training facility called Youth Exercise dedication, vision and public service of tronics Engineers. Services. His facility is designed to Dr. Anita K. Jones who is completing I know that Dr. Jones’ husband, Wil- meet the needs of mentally and phys- her appointment, after 4 years, as the liam A. Wulf, and her daughters, Karin ically handicapped athletes, at-risk Director of Defense Research and Engi- and Ellen, are proud of her many ac- youths, and anyone who will say no to neering [DDR&E]. A native of Texas, complishments, and so is the Nation. drugs and yes to exercise. and longtime Virginia resident, Dr. Her distinguished service will be genu- Mr. Vanderveen takes to his playing Jones is one of this country’s pre- inely missed in the Department of De- field at Youth Exercise Services the eminent information technology ex- fense, and all of us who know her wish same way I take to the Senate floor: perts and a pioneer for women in her every success as she returns to the mission-driven, determined, and un- science and engineering career fields University of Virginia.∑ willing to lose. Through his dedication everywhere. Prior to coming to the De- f and hard work, the kids he touches partment of Defense, she was the chair learn that they don’t have to lose ei- of the department of computer science LOAN INTEREST FORGIVENESS ther. Whether they are handicapped, at the University of Virginia. As FOR EDUCATION ACT at-risk, or just looking for a positive DDR&E, she serves in one of the Na- ∑ Mr. BURNS. Mr. President, it was after school environment, they’ve got tion’s top technical positions and over- with great pleasure that on April 15, the chance to come out winners be- sees the largest defense research and Tax Day, I joined with Senators GRASS- cause Fred Vanderveen cares about development organization in the world. LEY and MOSELEY-BRAUN in cosponsor- each and every one of them. Her strong support for, and oversight ing the Loan Interest Forgiveness for Mr. President, I want to give my of, the multibillion-dollar Defense Education Act, S. 573. warmest congratulations to Mr. Science and Technology [S&T] Pro- With Americans scrambling last Vanderveen, and to the kids whose gram dramatically improved the week to get their tax returns filed, this lives he helps make better. His 1997 He- warfighting capabilities and readiness bill offers a bit of relief for students roes Award is richly deserved, and the of our Nation’s military forces both who rely on loans to pay their higher State of Maryland is proud to call him today and well into the future. Dr. education bills. This legislation will re- one of our own.∑ Jones spearheaded the implementation store the tax deduction for student f of a new structured planning process loan interest, with eligibility for the which aligns technology research and deduction phased out for taxpayers TRIBUTE TO JANE McCAFFERY development more directly with criti- with incomes between $65,000 and FOR WINNING THE CONTINENTAL cal warfighting and national security $85,000 (single returns) and $85,000 and CABLEVISION’S 1997 NATIONAL priorities. Through strong leadership, $105,000 (joint returns). This modest EDUCATOR AWARD she brought the technology and oper- step will take some of the sting out of ∑ Mr. SMITH of New Hampshire. Mr. ational military communities together repaying student loans. President, I rise today to congratulate to design detailed plans to sustain U.S. A college degree is more important Jane McCaffery, a teacher at Lincoln dominance on the battlefield into the in today’s job market than it has ever Street School and Main Street School next century. been. At the same time, education in Exeter, NH, on receiving the Con- In addition, Dr. Jones focused the De- costs continue to rise and the average tinental Cablevision’s 1997 National Ed- partment of Defense S&T Program to debt of graduates is at record levels. On ucator Award. S3464 CONGRESSIONAL RECORD — SENATE April 22, 1997 As a former teacher myself, I com- the importance of education for their ture. We find ourselves at a point in mend her outstanding accomplishment children and for their communities. history where numerous nations are and well-deserved honor. And ever since, making ourselves the struggling to build democratic govern- Continental Cablevision designed the best educated Nation on Earth has al- ments. It is not always an easy process. Educator Award program in 1989 to en- ways been the very essence of our Those who are involved in such transi- courage teachers to use Cable in the American dream. The work of the tions watch for America s response to Classroom, a cable industry initiative Salem County School District, and the situations such as we find in Burma, which provides schools with free cable Salem County Vocational Technical where a military junta prevents the connections and access to more than Schools, is helping to ensure that this implementation of a democratic elec- 500 hours of commercial-free edu- particular American dream remains an tion. Let us be clear. This is not only American reality. cational programming each month. about human rights and trade. This is Jane was chosen for this distinguished To the students of Salem County, I about our commitment to democracy. honor from among educators in all of say don’t ever forget that there’s al- the communities that Continental Ca- ways more to be learned, always more There are those who argue that con- blevision serves in New Hampshire. to be seen, always more to be explored. structive engagement is the only way Under the direction of Jane, Exeter And to the Salem County Board of to effect change in a country. Con- elementary students, teachers and Education, the Salem County School structive engagement is a euphemism their work are showcased in District, and the Salem County Voca- for doing business with thugs. Foreign ‘‘Booktalk,’’ an ambitious weekly tional Technical Schools, I say con- investment in Burma provides hard cable TV program. The program en- gratulations and continue your fine currency for the State Law and Order courages students to read and invites work.∑ Restoration Council [SLORC]. Most families to participate in activities re- f U.S. companies refuse to support such lated to their children’s reading. It also a regime through foreign investment. raises community awareness about the CONGRESSIONAL PENSION Amoco, Levi Strauss, Liz Claiborne, elementary curriculum. Jane and an DISCLOSURE ACT Macy’s, Eddie Bauer, Columbia Sports- Australian crocodile puppet explore ∑ Mr. BURNS. Mr. President, I come to wear, Oshkosh B’Gosh, Pepsi, Apple one curriculum theme each week and the floor today in order to offer my Computer, and many other companies feature a reading by teachers, students support for the Congressional Pension already have cut business ties with or guests, ideas for families to further Disclosure Act of 1997. Burma. I commend the President for pursue the learning theme, and many This bill will require that detailed in- his action which supports the decisions creative presentations. formation about the pension of every of these responsible companies. New Hampshire has always been for- Member of Congress be published twice a year. These facts—how much has Finally, I would note that this is not tunate to have many talented teachers, an end to our efforts in Burma, but a but Jane McCaffery is certainly a role been contributed to a pension plan, model among the teachers of the Gran- how much is to be received in retire- beginning. Strong bilateral pressure ite State. I am proud of her commit- ment, and acquired Federal retirement needs to be supplemented with multi- ment to education and congratulate benefits—should be public information. lateral action. I call on other nations her superb achievement. It is an honor Montanans, as well as those in every which share our concern for the people to represent her in the U.S. Senate.∑ other State, deserve the right to know of Burma to join us. Most importantly, [At the request of Mr. REID, the fol- how public funds are being spent. The the SLORC should know that we will lowing statement was ordered to be disclosure of pension contributions and remain vigilant and continue to defend printed in the RECORD.] benefits will allow Montanans to judge the rights of Burmese democracy lead- f whether or not the amounts are fair ers.∑ and just. Taxpayers will be able to f SALEM COUNTY EDUCATION make fully informed decisions about ANNIVERSARIES the kind of job we representatives are SLOVAKIAN HUMAN RIGHTS ∑ Mr. LAUTENBERG. Mr. President, I doing in abiding the will of the people ISSUES rise today to pay tribute to the Salem and keeping Government spending ∑ Mr. D’AMATO. Mr. President, I rise County School District on a number of under control. today to call to my colleagues’ atten- notable anniversaries. The year 1997 The Congressional Pension Disclo- tion human rights developments in marks the 40th anniversary of the dis- sure Act will make facts readily avail- Slovakia. These developments point trict, the 25th anniversary of the initi- able to anyone who wants them. Per- Slovakia in the opposite direction from ation of occupational, technical and ception that Congress operates in se- the road their neighbors have been vocational programs and services to crecy would be eliminated and the peo- traveling. Their neighbors accept west- secondary students and the 15th anni- ple of Montana would know that their ern values and seek integration into versary of the operation of the New representatives have nothing to hide. western institutions, developments Jersey Regional Day School at Simply said, by disclosing the size of leading to individual freedom, political Mannington for the Department of our pensions, we in Congress will make democracy, and economic prosperity in Education. a step in the right direction toward re- a free market system. In stark con- Mr. President, these anniversaries storing faith in government by the trast, Slovakia is not in compliance are especially significant because edu- American people. with some important Helsinki process cation is the key that will open the I commend Senator ABRAHAM for commitments and is showing signs of door to the future for our children. By drafting this meaningful legislation, regression toward authoritarian, if not the year 2000, 60 percent of all new jobs and I am proud to have signed on as a totalitarian relations between the in America will require advanced tech- cosponsor of S. 269.∑ state and its citizens. nical skills. The industrial age has f given way to the information age and, This country, which showed so much more than ever before, students need a SANCTIONS AGAINST BURMA promise upon gaining independence in quality education if they are going to ∑ Mr. MOYNIHAN. I commend the 1993, has failed to press ahead with vi- be able to compete. President for his decision to invoke in- tally needed democratic reforms, in But a quality education doesn’t only vestment sanctions on Burma, in ac- contrast with so many other countries benefit the individual, it also benefits cordance with section 570 of Public in the region, including other newly our Nation. If our firms and factories Law 104–208. The President deserves independent countries. While the Czech are to find the educated workers they praise for his action. Conditions in Republic, Hungary, and Poland have need, and if these same firms are to re- Burma remain grim and warrant this worked hard to qualify for EU member- main competitive in the global mar- limited measure. ship and NATO accession, Slovakia has ketplace, then our students must re- Perhaps no one is more deserving of lagged behind. While states like Lith- ceive the necessary training and skills. praise than the Senator from Ken- uania and Slovenia have emerged from Our economic future depends on it. tucky, Senator MCCONNELL. He and I repressive empires to bring prosperity Mr. President, 300 years ago this have stood together in support of the and hope to their peoples, Slovakia has year, the colony of Massachusetts people of Burma for many years now not. Even Romania, which has strug- passed the very first American edu- and I congratulate him for his stead- gled profoundly with the transition cation law. It required that every town fast efforts to assist in achieving a from totalitarianism, has managed to of at least 50 people hire a teacher of democratic transition in Burma. undertake significant reforms in the reading and writing. Those first colo- Burma is a democracy denied. It is a past few months. nists, huddled in their tiny villages country with a democratic past. With From the outset, members of the Hel- along the Atlantic coast, understood our help it can have a democratic fu- sinki Commission have supported the April 22, 1997 CONGRESSIONAL RECORD — SENATE S3465 democratic transformation in Slo- It has also been reported that on Feb- Hungarian for official purposes, as the vakia. We believe that a strong, demo- ruary 24 an opposition political figure recent report-card flap shows. Much cratic Slovakia will enhance stability in Banska Bystrica, Miroslav Toman, harm can be done until a minority lan- and security in Europe. was attacked by four assailants. guage law is passed based on a genuine Unfortunately, human rights and de- We see a country where politically accommodation between the majority mocratization in Slovakia have taken motivated violence is on the increase, and minority communities. a severe beating—both literally and where public confidence in the govern- Finally, recent reductions in govern- figuratively—in recent months. The ment’s intent to provide security for ment-provided cultural subsidies have hopes raised by free and fair elections all Slovaks has plummeted, and where had a disproportionately negative ef- and by the passage of a democratic acts of violence and threats of violence fect on the Hungarian community. The constitution have been dashed have brought into question both the Slovak Government’s defense, that all Last month, I understand some offi- rule of law and the very foundations of ethnic groups have been equally dis- cials in Bratislava criticized a congres- democracy. advantaged by these cut-backs, is sional report on NATO enlargement The ruling coalition has continued to unpersuasive in light of the Culture and complained that the discussion of pursue an openly hostile agenda toward Minister Hudec’s stated intent to ‘‘re- Slovakia’s progress toward democracy a free and independent media and free vive’’ Slovak culture in ethnically was too superficial. Well, I will provide speech in general. During the course of mixed areas and to make cultural sub- a little more detail for those who genu- the past year, two newspapers— sidies reflect that goal. inely want to know what worries us Slovenska Republika and Naroda While Hungarians suffer from a more here in Washington. Obroda—have seen a total of 21 editors direct form of government intolerance, quit over alleged political interference other ethnic groups suffer more indi- Parliamentary democracy in Slo- with their work. Defamation suits rectly. Put another way, it is not so vakia took a bullet in late November, launched by public officials appear to much government action which threat- when parliamentarian Frantisek be a common vehicle for harassing ens Romani communities in Slovakia, Gaulieder, after announcing his res- one’s political opponents. it is government inaction. ignation from the ruling coalition’s Movement for a Democratic Slovakia, Most recently, on November 19, the According to the most recent State was stripped of his parliamentary man- government barred four journalists Department report on Slovakia, skin- date through antidemocratic means from attending a regular press con- head violence against Roma is a seri- that are unheard of anywhere else in ference after the weekly cabinet meet- ous and growing problem; three Roma Europe. His removal has been protested ing because the journalists were be- were murdered as a result of hate lieved to be unsympathetic to the gov- crimes last year, and others have been by the European Union and the United ernment. Although this decision was severely injured. Some Roma leaders, States at OSCE meetings in Vienna, ultimately rescinded after a public out- in response to their government’s in- but, so far, to no avail. cry—including a protest from the jour- ability or unwillingness to protect Even more outrageously, there was a nalists’ union—it was further evidence them, have called for the formation of bomb attack against Mr. Gaulieder’s of the government’s relentless efforts self-defense units. Obviously, the Slo- home, while he and his family were to curb any reporting it doesn’t like. vak Government is just not doing present. This is a tactic that reminds In fact, in one of the more shocking enough to address the deadly threats me of the Communists, fascists, and episodes of the battle for free speech in they face. other similarly bloody and ruthless Slovakia, it has been reported that Moreover, the repugnant anti-Roma groups. Vladimir Meciar—the Prime Minister statements that have repeatedly been The 1995 kidnaping of President of the country and, not insignificantly, made by Jan Slota, a member of the Kovac’s son is not only still unsolved, a former boxer—warned journalist ruling coalition, have fostered this cli- but the manner in which this matter Dusan Valko just a few weeks ago that mate of hatred. The fact that the Czech has been investigated has fueled specu- ‘‘I will punch you so that your own Republic, Germany, and other Euro- lation that the government’s own secu- mother will not recognize you.’’ So pean countries also confront skinhead rity forces were directly involved in much for Mr. Meciar’s tolerance for movements in no way relieves Slovakia this crime. The murder last year of other points of view and nonviolence. of its responsibility to combat racism, Robert Remias, who may have had key The Slovak Government continues to just as Slovakia’s skinhead problem evidence in this case, and the ineffec- pursue a minorities policy that would does not relieve the other countries of tual investigation of that case has be laughable if it were not so wrong their responsibilities. deepened these suspicions. and harmful. This policy has included It is time and past time for Prime Adding to this disturbing pattern, everything from banning the playing of Minister Meciar to use his moral au- questions are already being raised non-Slovak national anthems last year thority and political leadership to set about the official investigation of the to the more recent decision to bar the Slovakia on the right course. He must December bomb attack on Frantisek issuance of report cards in the Hungar- make clear, once and for all, that Jan Gaulieder’s home: Mr. Gauliedier has ian language, reversing long-standing Slota—who also called the Hungarian reported that some of his testimony re- practices. Such petty gestures are be- minority ‘‘barbarian Asiatic hordes’’— garding the attack is missing from his neath the dignity of the Slovak people, is not his spokesman, and that the Slo- police file, that the first investigator whose heritage has survived more than vak National Party’s unreconstructed was removed after only 3 days on the a thousand years of foreign—and often fascists do not represent the majority case, and that the Slovak Minister of markedly repressive—rule. The Slovak of the people of Slovakia. Interior has, shockingly, suggested language and culture, now protected in Mr. President, the leadership of the that Mr. Gaulieder may have planted an independent Slovakia, are not so Helsinki Commission, including my co- the bomb himself—the same ‘‘he-did-it- weak that they can only flourish at the chairman, Representative CHRISTOPHER himself’’ story that no one believes re- expense of others. H. SMITH, and ranking members Sen- garding the kidnaping of Mr. Kovac, Jr. More seriously, it should be noted ator FRANK LAUTENBERG and Rep- I am now informed that this inves- that past repressive crackdowns on mi- resentative STENY HOYER, have raised tigation, like the Kovac and Remias norities—for example, in Cluj, Roma- our concern about developments in Slo- cases, has been ‘‘closed for lack of evi- nia, and in Kosovo, Serbia—began by vakia with Slovak officials on a num- dence.’’ For a country supposedly seri- whittling away at the minority lan- ber of occasions. Unfortunately, all we ously committed through its OSCE ob- guage opportunities that had tradition- hear from the Slovak leadership is one ligations to the establishment of a ally been respected by the majority excuse after another, and all we see is ‘‘rule of law’’ state, this is a damag- community. Accordingly, these seem- a search for one scapegoat after an- ingly poor performance. ingly small restrictions on the Hungar- other: it’s the Hungarians, it’s the In addition to these acts of violence, ian minority in Slovakia may very Czechs, it’s the Ukrainian mafia, it’s it has been reported that the President, well be the harbinger of more repres- the hostile international community the President’s son, and members of sive tactics ahead. seeking to destroy Slovakia’s good the Constitutional Court have been With this in mind, the failure of the name, it’s a public relations problem subjected to death threats. In fact, in Slovak parliament to adopt a com- abroad, not real problems back home— early December the Association of Slo- prehensive minority language law, and in short, there is always somebody else vak Judges characterized the anony- the recommendation of the Ministry of to blame besides the people that are, in mous, threatening letters addressed to Culture that such a law is not even fact, running the country. Milan Cic, the Chair of the Slovak Con- necessary, defy common sense. Current I don’t mean to suggest that there stitutional Court, as an attack against laws on minority-language use in Slo- have been no positive developments in the court as a whole and a means of po- vakia do not provide adequate or satis- Slovakia over the past 4 years. In fact, litical intimidation. factory guidance regarding the use of I have been especially heartened by the S3466 CONGRESSIONAL RECORD — SENATE April 22, 1997 emergence of a genuine civil society The assistant legislative clerk read The preamble was agreed to. that is increasingly willing to express as follows: The resolution, with its preamble, is its views on a broad range of issues. A resolution (S. Res. 77) to authorize rep- as follows: But positive initiatives by the Govern- resentation by the Senate legal counsel. S. RES. 77 ment have been too few and too far be- The PRESIDING OFFICER. Is there Whereas, in the case of William L. Singer v. tween. objection to the immediate consider- Office of Senate Fair Employment Practices, No. I make this statement today in the ation of the resolution? 97–6000, pending in the United States Court hope that the leadership in Bratislava of Appeals for the Federal Circuit, petitioner There being no objection, the Senate William L. Singer has sought review of a will start to make real reforms, like proceeded to consider the resolution. their colleagues in Romania, and begin final decision of the Select Committee on Mr. LOTT. Mr. President, as my col- Ethics which had been entered, pursuant to to restore the promising future that leagues are aware, the Congressional section 308 of the Government Employee the people of Slovakia deserve. Their Accountability Act of 1995 created pro- Rights Act of 1991, 2 U.S.C. § 1208 (1994), in present policies are leading down a cedures for judicial review of employ- the records of the Office of Senate Fair Em- path toward international isolation, in- ment discrimination claims through- ployment Practices; creasing criticism, and economic depri- Whereas, pursuant to sections 703(a) and out the Congress to govern cases aris- 704(a)(1) of the Ethics in Government Act of vation for their people. One Belarus is ing after the requirements of the law enough.∑ 1978, 2 U.S.C. §§ 288b(a) and 288c(a)(1) (1994), took effect on January 23, 1996. The the Senate may direct its counsel to defend f Senate’s antecedent process for review committees of the Senate in civil actions re- ORDERS FOR WEDNESDAY, APRIL of discrimination claims in Senate em- lating to their official responsibilities; 23, 1997 ployment, which was created by the Whereas, pursuant to section 303(f) of the Government Employee Rights Act of Government Employee Rights Act of 1991, 2 Mr. CHAFEE. Mr. President, I ask 1991, continues to govern older cases. U.S.C. § 1203(f) (1994), for purposes of rep- unanimous consent that when the Sen- The case of William L. Singer versus resentation by the Senate Legal Counsel, the ate completes its business today it Office of Senate Fair Employment Practices, Office of Senate Fair Employment the respondent in this proceeding, is deemed stand in adjournment until the hour of Practices, now pending in the U.S. 10 a.m. on Wednesday, April 23. I fur- a committee within the meaning of sections Court of Appeals for the Federal cir- 703(a) and 704(a)(1) of the Ethics in Govern- ther ask consent that on Wednesday, cuit, is a case initiated under the 1991 ment Act of 1978, 2 U.S.C. §§ 288b(a), 288c(a)(1) immediately following the prayer, the act. (1994): Now, therefore, be it routine requests through the morning The petitioner in this case, a former Resolved, That the Senate Legal Counsel is hour be granted, and the Senate imme- officer in the Capitol Police Depart- directed to represent the Office of Senate diately begin consideration of the ment, seeks review of a ruling of the Fair Employment Practices in the case of Chemical Weapons Convention Treaty Select Committee on Ethics, which af- William L. Singer v. Office of Senate Fair Em- as under the previous order. ployment Practices. firmed a decision of a hearing board ap- f The PRESIDING OFFICER. Without pointed by the Director of the Office of objection, it is so ordered. Senate Fair Employment Practices. ADJOURNMENT UNTIL 10 A.M. Mr. CHAFEE. I further ask unani- The hearing board decision rejected the TOMORROW mous consent that the Senate stand in officer’s claim that his termination Mr. CHAFEE. Mr. President, if there recess from the hours of 12:30 to 2:15 for from the Capital Police violated the is no further business to come before the weekly policy conferences to meet. Americans With Disabilities Act and the Senate, I now ask that the Senate The PRESIDING OFFICER. Without the Family and Medical Leave Act, as stand in adjournment under the pre- objection, it is so ordered. made applicable by the Government vious order. f Employee Rights Act. There being no objection, the Senate, Under the Government Employee at 3:53 p.m., adjourned until Wednes- PROGRAM Rights Act, a final decision of the Eth- day, April 23, 1997, at 10 a.m. Mr. CHAFEE. Mr. President, for the ics Committee is entered in the records f information of all Senators, tomorrow of the Office of Senate Fair Employ- at 10 a.m. the Senate will begin consid- ment Practices, which is then named NOMINATIONS eration of the Chemical Weapons Con- as the respondent if the decision is Executive nominations received by vention Treaty. Under the order, there challenged in the Federal circuit. As the Secretary of the Senate April 18, will be 10 hours of debate to be equally petitions for review in the Federal cir- 1997, under authority of the order of divided between the chairman and cuit challenges final decisions of a Sen- the Senate of January 7, 1997: ranking member, or their designees, ate adjudicatory process, under the and 1 hour under the control of Senator Government Employee Rights Act the CENTRAL INTELLIGENCE LEAHY. Senate legal counsel may be directed GEORGE JOHN TENET, OF MARYLAND, TO BE DIRECTOR OF CENTRAL INTELLIGENCE, VICE JOHN M. DEUTCH, RE- Also, in accordance with the agree- to defend those decisions through rep- SIGNED. ment, a limited number of amendments resentation of the Office of Senate Fair Employment Practices in court. Executive nominations received by are in order to the resolution of ratifi- the Senate April 22, 1997: cation. Accordingly, this resolution directs Therefore, Senators can anticipate the Senate legal counsel to represent DEPARTMENT OF ENERGY rollcall votes late tomorrow afternoon the Office of Senate Fair Employment ELIZABETH ANNE MOLER, OF VIRGINIA, TO BE DEPUTY and throughout Thursday’s session of Practices, in the case of Singer versus SECRETARY OF ENERGY, VICE CHARLES B. CURTIS, RE- Office of Senate Fair Employment SIGNED. the Senate. f f Practices, in defense of the Ethics Committee’s final decision. WITHDRAWAL AUTHORIZING SENATE LEGAL Mr. CHAFEE. Mr. President, I ask Executive message transmitted by COUNSEL REPRESENTATION unanimous consent that the resolution the President to the Senate on April 18, Mr. CHAFEE. Mr. President, I ask be agreed to, the preamble be agreed 1997, withdrawing from further Senate unanimous consent that the Senate to, the motion to reconsider be laid consideration the following nomina- proceed to the immediate consider- upon the table, that any statements re- tion: ation of Senate Resolution 77, submit- lating to the resolution appear in the ted earlier today by Senators LOTT and RECORD. CENTRAL INTELLIGENCE DASCHLE. The PRESIDING OFFICER. Without I WITHDRAW THE NOMINATION OF ANTHONY LAKE, OF objection, it is so ordered. MASSACHUSETTS, TO BE DIRECTOR OF CENTRAL INTEL- The PRESIDING OFFICER. The LIGENCE, VICE JOHN M. DEUTCH, RESIGNED, WHICH WAS clerk will report. The resolution was agreed to. SENT TO THE SENATE ON JANUARY 9, 1997. Tuesday, April 22, 1997 Daily Digest Senate Chamber Action Committee Meetings Routine Proceedings, pages S3391–S3466 (Committees not listed did not meet) Measures Introduced: Ten bills and two resolu- tions were introduced, as follows: S. 621–630 and S. APPROPRIATIONS—AGRICULTURE Res. 76 and 77. Page S3419 Committee on Appropriations: Subcommittee on Agri- Measures Reported: Special Report on the Activi- culture, Rural Development, and Related Agencies ties of the Committee on Environment and Public held hearings on proposed budget estimates for fiscal Works for the One Hundred Fourth Congress. (S. year 1998, receiving testimony in behalf of funds for their respective activities from Catherine E. Woteki, Rept. No. 13) Pages S3418±19 Acting Under Secretary, and Floyd P. Horn, Acting Measures Passed: Deputy Under Secretary, both for Research, Edu- Authorizing Legal Representation: Senate agreed cation and Economics, Edward Knipling, Acting Ad- to S. Res. 77, to authorize representation by the Sen- ministrator, Agricultural Research Service, Robert ate Legal Counsel. Page S3466 H. Robinson, Administrator, Cooperative State Re- search, Education, and Extension Service, Kelli Nominations Received: Senate received the follow- White, Associate Administrator, Economic Research ing nominations: Received on Friday, April 18, dur- Service, Donald Bay, Administrator, National Agri- ing the adjournment: cultural Statistics Service, and Dennis Kaplan, Dep- George John Tenet, of Maryland, to be Director uty Director for Budget, Legislative and Regulatory of Central Intelligence. Page S3466 Systems, all of the Department of Agriculture. Received today: Subcommittee will meet again on Thursday, May Elizabeth Anne Moler, of Virginia, to be Deputy 1. Secretary of Energy. Page S3466 APPROPRIATIONS—ENERGY AND WATER Nomination Withdrawn: Senate received notifica- DEVELOPMENT tion of the withdrawal of the following nomination: Received on Friday, April 18, 1997, during the ad- Committee on Appropriations: Subcommittee on Energy and Water Development held hearings on proposed journment: budget estimates for fiscal year 1998 for energy and Anthony Lake, of Massachusetts, to be Director of water development, focusing on the Environmental Central Intelligence. Page S3466 Management Program of the Department of Energy, Messages From the House: Pages S3417±18 receiving testimony from Alvin L. Alm, Assistant Communications: Page S3418 Secretary of Energy for Environmental Management. Subcommittee will meet again on Thursday, April Petitions: Page S3418 24. Statements on Introduced Bills: Pages S3419±55 APPROPRIATIONS—NSF/OFFICE OF Additional Cosponsors: Pages S3455±57 SCIENCE AND TECHNOLOGY POLICY Notices of Hearings: Page S3457 Committee on Appropriations: Subcommittee on VA, Authority for Committees: Page S3457 HUD, and Independent Agencies held hearings on proposed budget estimates for fiscal year 1998, re- Additional Statements: Pages S3457±66 ceiving testimony in behalf of funds for their respec- Adjournment: Senate convened at 10 a.m., and ad- tive activities from Neal F. Lane, Director, National journed at 3:53 p.m., until 10 a.m., on Wednesday, Science Foundation; and John H. Gibbons, Director, April 23, 1997. (For Senate’s program, see the re- Office of Science and Technology Policy. marks of the Acting Majority Leader in today’s Subcommittee will meet again on Thursday, May Record on page S3466.) 1. D367 D368 CONGRESSIONAL RECORD — DAILY DIGEST April 22, 1997 AUTHORIZATION—DEFENSE Consumer Federation of America, and D. Scott Yohe, Committee on Armed Services: Subcommittee on Delta Air Lines, Inc., all of Washington, D.C.; Rich- SeaPower resumed hearings on S. 450, authorizing ard Branson, Virgin Atlantic Airlines, London, Eng- funds for fiscal years 1998 and 1999 for military ac- land; David A. Schwarte, American Airlines, Inc., tivities of the Department of Defense, and to pre- Fort Worth, Texas; Cyril Murphy, United Airlines, scribe military personnel strengths for fiscal years Chicago, Illinois; and Lawrence M. Nagin, US Air- 1998 and 1999, focusing on Department of the ways, Inc., Arlington, Virginia. Navy shipbuilding development and procurement CHILDREN’S HEALTH programs, receiving testimony from John W. Doug- lass, Assistant Secretary of the Navy for Research, Committee on Labor and Human Resources: On Friday, Development and Acquisition; Vice Adm. Donald L. April 18, committee concluded hearings on propos- Pilling, USN, Deputy Chief of Naval Operations, als to improve the health status of children, includ- Resources, Warfare Requirements and Assessments; ing S. 435 and S. 525, focusing on pediatric care, and John Birkler, RAND Corporation, Santa Monica, public health, mental health, and substance abuse is- California. sues, after receiving testimony from Senators Hatch Subcommittee recessed subject to call. and Specter; Donna E. Shalala, Secretary of Health and Human Services; Vermont Governor Howard NOMINATION Dean, Montpelier; Mohammad N. Akhter, American Committee on Foreign Relations: On Friday, April 18, Public Health Association, and Mary Jane England, committee concluded hearings on the nomination of Washington Business Group on Health, both of Thomas R. Pickering, of New Jersey, to be Under Washington, D.C.; Antoinette Parisi Eaton, Chil- Secretary of State for Political Affairs, after the dren’s Hospital, Inc., Columbus, Ohio; Judith S. nominee, who was introduced by Senator Lauten- Palfrey, Children’s Hospital, Boston, Massachusetts; berg, testified and answered questions in his own be- and James E. Copple, Community Anti-Drug Coali- half. tions of America, Alexandria, Virginia. AIRLINE ANTITRUST IMPLICATIONS AUTHORIZATION—NATIVE AMERICAN Committee on the Judiciary: Subcommittee on Anti- PROGRAMS trust, Business Rights, and Competition concluded Committee on Indian Affairs: Committee concluded hearings to examine antitrust implications of the hearings on S. 459, to authorize funds for fiscal years proposed British Airways-American Airlines Alli- 1997 through 2000 for programs administered by ance, focusing on the impact this alliance will have the Administration for Native Americans, after re- on the availability and affordability of international ceiving testimony from Gary Niles Kimble, Com- air travel, the long-term viability of the U.S. airline missioner, Administration for Native Americans, De- industry, the preservation of competition in the Lon- partment of Health and Human Services; A. David don market, and the security of the American Lester, Council of Energy Resource Tribes, Denver, consumer, after receiving testimony from Barry P. Colorado; and Wallace Coffey, Comanche Indian Simon, Continental Airlines, Inc., Mark N. Cooper, Tribe, Lawton, Oklahoma. h House of Representatives COMMITTEE MEETINGS FOR Chamber Action WEDNESDAY, APRIL 23, 1997 The House was not in session today. It will next (Committee meetings are open unless otherwise indicated) meet on Wednesday, April 23. Senate Committee on Appropriations, Subcommittee on Defense, Committee Meetings to hold hearings on proposed budget estimates for fiscal year 1998 for the Department of Defense, focusing on No committee meetings were held. medical programs, 10 a.m., SD–192. Subcommittee on District of Columbia, to hold hear- ings on an additional funding request for fiscal year 1997 by the District of Columbia Financial Responsibility and April 22, 1997 CONGRESSIONAL RECORD — DAILY DIGEST D369

Management Assistance Authority for capital improve- Learning, hearing on the Rising Price of a College Edu- ments to D.C. public schools and for public safety agen- cation, 1 p.m., 2175 Rayburn. cies, 10 a.m., SD–138. Committee on Government Reform and Oversight, Sub- Committee on Armed Services, to hold hearings on the Ad- committee on Government Management, Information, ministration’s proposal on NATO enlargement, 10 a.m., and Technology, hearing on ‘‘Census 2000: How Should SH–216. the Federal Government Measure Race and Ethnicity’’, Committee on Commerce, Science, and Transportation, to 9:30 a.m., 2154 Rayburn. hold hearings on the nominations of Kerri Ann Jones, of Subcommittee on National Economic Growth, Na- Maryland, and Jerry M. Melillo, of Massachusetts, both to tional Resources, and Regulatory Affairs, to continue be an Associate Director of the Office of Science and hearings on ‘‘EPA’s Particulate Matter and Ozone Rule- Technology Policy, 9:30 a.m., SR–253. making: Is EPA Above the Law’’, 10:30 a.m., 2247 Ray- Subcommittee on Manufacturing and Competitiveness, burn. to hold hearings to examine the current state of manufac- Committee on International Relations, Subcommittee on turing in the United States, 10 a.m., SR–253. Asia and the Pacific, to mark up H. Res. 121, expressing Committee on Finance, to hold hearings on S. 436, to the sense of the House of Representatives regarding the provide for the transfer of one-half cent of the 4.3 cents- March 30, 1997, terrorist grenade attack in Cambodia; per-gallon motor fuels tax now being deposited into the followed by a hearing on United States Policy Toward General Fund to a designated trust fund for Amtrak, 10 Vietnam; followed by a hearing on SINO-American Rela- a.m., SD–215. tions and U.S. Policy Options, 2 p.m., 2172 Rayburn. Committee on Governmental Affairs, to hold hearings on Committee on the Judiciary, hearing on the following S. 261, to provide for a biennial budget process and a bi- bills: H.R. 911, Volunteer Protection Act of 1997 and ennial appropriations process and to enhance oversight H.R. 1167, Volunteer Protection Act of 1997, 10:15 and the performance of the Federal Government, 10 a.m., a.m., 2141 Rayburn. SD–342. Subcommittee on Immigration and Claims, oversight Committee on the Judiciary, to hold hearings to examine hearing on regarding border security and deterring illegal the growing national problem with gangs, focusing on how gangs affect communities within States and on gangs entry into the United States, 9:30 a.m., 2237 Rayburn. that have established networks from State to State, 10 Committee on Rules, to consider the following: H.R. a.m., SD–226. 1271, FAA Research, Engineering, and Development Au- Committee on Labor and Human Resources, to resume hear- thorization Act of 1997; H.R. 1273, National Science ings on proposed legislation authorizing funds for pro- Foundation Authorization Act of 1997; H.R. 1274, Na- grams of the Higher Education Act, focusing on campus tional Institute of Standards and Technology Authoriza- based financial aid programs and the students who benefit tion Act of 1997; H.R. 1275, Civilian Space Authoriza- from them, 9:30 a.m., SD–430. tion Act, Fiscal Years 1998 and 1999; H.R. 1276, Envi- Select Committee on Intelligence, to hold closed hearings on ronmental Research, Development, and Demonstration intelligence matters, 2:30 p.m., SH–219. Authorization Act of 1997; H.R. 1277, Department of Energy Civilian Research and Development Act of 1997; House and H.R. 1278, National Oceanic and Atmospheric Ad- Committee on Agriculture, Subcommittee on Forestry, Re- ministration Authorization Act of 1997, 4 p.m., H–313 source Conservation, and Research, hearing on EPA’s pro- Capitol. posed air quality standard of PM 2.5 and its implications Committee on Science, Subcommittee on Technology, for agriculture, 9:30 a.m., 1300 Longworth. hearing on Surface Transportation Research and Develop- Committee on Appropriations, Subcommittee on Labor, ment, Part II, 2 p.m., 2318 Rayburn. Health and Human Services, and Education, on public Committee on Small Business, hearing on Tax Burden on witnesses, 10 a.m. and 2 p.m., 2358 Rayburn. Small Business Families, 10 a.m., 2359 Rayburn. Subcommittee on VA, HUD, and Independent Agen- Committee on Transportation and Infrastructure, Sub- cies, on Department of Veterans Affairs, 10 a.m. and 2 committee on Water Resources and Environment, hearing p.m., 2360 Rayburn. on Meeting Clean Water and Drinking Water Infrastruc- Committee on Banking and Financial Services, to continue ture Needs, 2 p.m., 2167 Rayburn. mark up of H.R. 2, Housing Opportunity and Respon- Committee on Ways and Means, to mark up the following sibility Act of 1997, 2 p.m., 2128 Rayburn. bills: H.R. 867, Adoption Promotion Act of 1997, and Committee on Commerce, Subcommittee on Health and H.R. 1048, Welfare Reform Technical Corrections Act of Environment, hearing on Reauthorization of the Prescrip- 1997, 10 a.m., 1100 Longworth. tion Drug User Fee Act and FDA Reform, 2:30 p.m., Subcommittee on Oversight, hearing on the low-in- 2123 Rayburn. come housing tax credit, 1:30 p.m., B–318 Rayburn. Committee on Education and the Workforce, Subcommittee Permanent Select Committee on Intelligence, executive, brief- on Postsecondary Education, Training and Life-Long ing on DEA regarding Mexico, 2 p.m., H–405 Capitol. D370 CONGRESSIONAL RECORD — DAILY DIGEST April 22, 1997

Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 10 a.m., Wednesday, April 23 2 p.m., Wednesday, April 23

Senate Chamber House Chamber Program for Wednesday: Senate will consider the Program for Wednesday: Complete consideration of Chemical Weapons Convention (Treaty Doc. 103–21), H.R. 400, 21st Century Patent Improvement Act; and S. Res. 75, to advise and consent to the ratification Consideration of H. Res. 117, providing for consider- of the Chemical Weapons Convention, subject to certain ation of motions to suspend the rules; conditions. Consideration of 5 Suspensions: (Senate will recess from 12:30 p.m. until 2:15 p.m. for re- 1. H. Con. Res. 8, Expressing the Sense of Congress spective party conferences.) with Respect to the Significance of Maintaining the Health and Stability of Coral Reef Ecosystems; 2. H.R. 39, African Elephant Conservation Reauthor- ization Act of 1997; 3. H.R. 449, Southern Nevada Public Land Manage- ment Act of 1997; 4. H.R. 688, Leaking Underground Storage Tank Trust Fund Amendments Act of 1997; and 5. H.R. 1272, Fire Administration Authorization Act of 1997. NOTE: No votes are expected before 5:00 p.m.

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