E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 110 CONGRESS, SECOND SESSION

Vol. 154 WASHINGTON, THURSDAY, MAY 8, 2008 No. 76 House of Representatives The House met at 10 a.m. and was last day’s proceedings and announces Graham Allison of Massachusetts. called to order by the Speaker pro tem- to the House his approval thereof. Richard Verma of Maryland. pore (Mr. MCNULTY). Pursuant to clause 1, rule I, the Jour- The message also announced that f nal stands approved. pursuant to Public Law 110–53, the DESIGNATION OF THE SPEAKER f Chair, on behalf of the Vice President, PRO TEMPORE PLEDGE OF ALLEGIANCE appoints the following individual to serve as a member and Chairman of the The SPEAKER pro tempore laid be- The SPEAKER pro tempore. Will the Commission ont he Prevention of fore the House the following commu- gentleman from Missouri (Mr. Weapons of Mass Destruction Prolifera- nication from the Speaker: CARNAHAN) come forward and lead the tion and Terrorism: WASHINGTON, DC, House in the Pledge of Allegiance. The Honorable BOB GRAHAM of Flor- May 8, 2008. Mr. CARNAHAN led the Pledge of Al- ida. I hereby appoint the Honorable MICHAEL R. legiance as follows: MCNULTY to act as Speaker pro tempore on The message also announced that I pledge allegiance to the Flag of the this day. pursuant to Public Law 110–53, the United States of America, and to the Repub- NANCY PELOSI, lic for which it stands, one nation under God, Chair, on behalf of the Vice President, Speaker of the House of Representatives. indivisible, with liberty and justice for all. appoints the following individuals to f f serve as members of the Commission PRAYER on the Prevention of Weapons of Mass MESSAGE FROM THE SENATE Destruction Proliferation and Ter- The Chaplain, the Reverend Daniel P. A message from the Senate by Ms. rorism: Coughlin, offered the following prayer: God of the ages and Lord of all. Curtis, one of its clerks, announced Robin Cleveland of Virginia. Here in America You find a Nation that the Senate has agreed to without James Talent of Missouri. that is fully modern yet guided by an- amendment a concurrent resolution of cient and eternal truths. The United the House of the following title: f States is a very innovative, creative, H. Con. Res. 308. Concurrent resolution au- and dynamic country and among the thorizing the use of the Capitol Grounds for ANNOUNCEMENT BY THE SPEAKER the National Peace Officers’ Memorial Serv- most religious on Earth. Here, faith PRO TEMPORE and reason were part of our foundation ice. and coexist in harmony to this very The message also announced that the The SPEAKER pro tempore. The day. This is not only one of America’s Senate has agreed to concurrent reso- Chair will entertain up to five 1-minute greatest strengths; it is one of the rea- lutions of the following titles in which speeches on each side of the aisle. sons our land remains a beacon of hope the concurrence of the House is re- and opportunity for millions across the quested: f world. S. Con. Res. 72. Concurrent Resolution sup- Lord, may America’s quest for free- porting the goals and ideals of the Inter- HAPPY BIRTHDAY, HARRY S dom continue to be guided by the con- national Year of Sanitation. TRUMAN viction that the principles governing S. Con. Res. 81. Concurrent Resolution sup- (Mr. CARNAHAN asked and was political and social life are intimately porting the goals and ideals of National Women’s Health Week. given permission to address the House linked to a moral order based on the for 1 minute and to revise and extend dominion of God the Creator who cre- The message also announced that the his remarks.) ated all women and men equal and en- Senate agrees to the amendment of the dowed with inalienable rights grounded House to the bill (S. 2929) ‘‘An Act to Mr. CARNAHAN. Mr. Speaker, in re- in the laws of nature and nature’s God. temporarily extend the programs under membrance of President Truman’s This vision, Lord, gives us the power to the Higher Education Act of 1965.’’. birthday today, I want to share a act giving You glory now and forever. The message also announced that speech my grandfather, Representative Amen. pursuant to Public Law 110–53, the A.S.J. Carnahan, made on this floor Chair, on behalf of the Vice President, over half a century ago in April 1945 f appoints the following individuals to after Truman assumed the Presidency: THE JOURNAL serve as members of the commission on ‘‘Mr. Speaker, my own native State, The SPEAKER pro tempore. The the Prevention of Weapons of Mass De- Missouri, bows with the Nation and the Chair has examined the Journal of the struction Proliferation and Terrorism: world in sorrow at the loss of the late

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

H3189

.

VerDate Aug 31 2005 03:48 May 09, 2008 Jkt 069060 PO 00000 Frm 00001 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.000 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3190 CONGRESSIONAL RECORD — HOUSE May 8, 2008 President Roosevelt. As we bow in the still in Iraq, especially since the Demo- Held at Fort Benning, Georgia, the presence of divine providence and have cratic leadership promised the Amer- competition tests a Ranger’s physical committed a national leader to the ican people, 2 years ago, that if they and mental toughness and self-dis- ages, we must carry on. New hands voted Democrat, we’d move to end the cipline. Of the 28 participants, only 16 must take up the task of national lead- war. Why are we still in Iraq? were able to complete the grueling 3- ership. Missouri is honored to present Why are we still in Iraq? Iraq had day athletic competition, which fea- to the Nation and the world the new nothing to do with 9/11, with al Qaeda’s tures some of the best athletes in the American leader, President Harry S role in 9/11. Iraq didn’t have weapons of world. Truman. mass destruction. Why have we lost Despite this honor, I believe Staff ‘‘Born and reared on a Missouri farm, 4,000 of our finest troops? Why have we Sergeant Broussard’s greatest achieve- elected county judge, sent to the U.S. seen tens of thousands of Americans in- ment is that he repeatedly served this Senate, selected by President Roo- jured? Why have we seen over a million Nation with distinction by completing sevelt as a running mate, elected vice innocent Iraqis killed? two deployments to Iraq and two de- president and now President of the The war is based on lies. The Bible ployments to Afghanistan. United States, it’s typically Missou- says, you shall know the truth and the Mr. Speaker, Sergeant Broussard is a rian and typically American. What truth shall set you free. We need to true American hero and an example of could more truly represent the Amer- start telling the truth here on this the commitment, dedication, and capa- ican tradition and spirit than from floor about the war in Iraq. And we bility of our men and women in uni- farm boy to President? need to end the war, end the occupa- form on and off the battlefield. tion, close the bases, bring our troops ‘‘This is the first time my beloved f State of Missouri has furnished a Presi- home. Why are we still in Iraq? THE PRACTICE OF EARMARKS IS dent. We are happy it is Harry Truman. This is a wake-up call for the Amer- OUT OF CONTROL His honesty, ability, frankness, experi- ican people. This is a wake-up call for ence, and humility fit him for the very the Congress. This is a wake-up call to (Mr. FLAKE asked and was given heavy tasks which lie ahead. He is stand for the truth. permission to address the House for 1 equal to the occasion.’’ f minute.) f THE NOBLE THREE Mr. FLAKE. Mr. Speaker, many of us in this body have realized for quite a (Mr. POE asked and was given per- CONGRATULATING TROOPER while that the practice of earmarking mission to address the House for 1 ROBERT ‘‘BOBBY’’ HAYSLIP is out of control. When we herald the minute.) (Mrs. SCHMIDT asked and was given Mr. POE. Mr. Speaker, America’s fact that we had a mere 12,000 ear- permission to address the House for 1 lawmen are the last strand of wire in marks last year, as opposed to only minute and to revise and extend her re- the fence between the law and the out- 15,000 a couple of years ago, we know marks.) laws. They are all that stands between that something is wrong. But the exercise we went through Mrs. SCHMIDT. Mr. Speaker, I rise chaos and civilization, between the last week was perhaps the best indica- today to congratulate Trooper Robert barbarians and the people, and between tion we had yet that we still have a ‘‘Bobby’’ Hayslip of West Union, Ohio, what is good and what is evil. for being awarded the Ohio State High- As we honor these lawmen, I give long way to go. We authorized the Jus- way Patrol’s Trooper of the Year special attention to the Capitol Police tice Department to investigate the ori- Award. Officers. These officers are on duty 24 gin of an immaculate earmark, an ear- Trooper Bobby Hayslip was commis- hours a day in the halls, on the roof, mark that wasn’t in either the House sioned a State Trooper only 6 years ago and in the shadows of this Capitol dili- or Senate version of the bill, that only as part of the 138th academy class and gently protecting this shrine of democ- showed up when the President signed has quickly risen to the top. Bobby’s racy. the legislation. The earmark was not District Commander, Captain Daniel Ten years ago, a madman entered the in either the House or Senate version. Kolcum, best describes him as being Capitol, shot and killed Officer Jacob Now, one would think that the dis- hardworking and aggressive but also Chestnut. He headed to the majority covery of an immaculate earmark compassionate and professional. leader’s office and wounded Officer would prompt an immediate congres- Trooper Hayslip is known for being a Douglas McMillan and tourist Angela sional investigation. Instead, we wait- leader in making both enforcement and Dickerson. His shooting stopped after ed 2 years and then authorized the Jus- non-enforcement contacts; he is con- he murdered John Gibson, who lit- tice Department to look into it. stantly working to keep Ohioans safe erally gave his life for a Member of Mr. Speaker, we owe this great insti- through investigations, assisting mo- Congress. tution far better than we’re giving it, torists, and getting drunk and im- In these hallowed halls, we have por- from bridges to nowhere to teapot mu- paired drivers off Ohio’s roads. The traits and statues of great Americans seums, to immaculate earmarks that dedication of Trooper Hayslip does not that have lived before us, but the spirit we don’t even pass, let alone scrutinize. end after his shift. It continues in his of duty, sacrifice, and honor is still We can do far better than this. free time as a volunteer working with alive and on display daily by those f local juvenile traffic offenders and at- Capitol Police who serve us so well. THE 60TH ANNIVERSARY OF THE risk high school students. They carry on the tradition of Chest- FOUNDING OF ISRAEL Mr. Speaker, I am very thankful that nut, McMillan, and Gibson, those noble the best trooper in the State of Ohio is three that stood in the line of fire for (Mr. BARROW asked and was given patrolling Ohio’s Second Congressional the rest of us. permission to address the House for 1 District. And that’s just the way it is. minute.) Mr. BARROW. Mr. Speaker, in 6 days, Congratulations, Bobby, and contin- f ued success in years to come. on May 14, we observe the 60th anniver- HONORING STAFF SERGEANT f sary of the declaration of the independ- MICHAEL BROUSSARD ence of the State of Israel. That’s also WHY ARE WE STILL IN IRAQ? (Mr. MCNERNEY asked and was the 60th anniversary, I’m proud to say, (Mr. KUCINICH asked and was given given permission to address the House of the day that the administration of permission to address the House for 1 for 1 minute.) President Harry Truman recognized minute and to revise and extend his re- Mr. MCNERNEY. Today it gives me the State of Israel as a free and inde- marks.) great pleasure to rise in honor of Staff pendent state. Mr. KUCINICH. Mr. Speaker, with Sergeant Michael Broussard of Contra Throughout the past 60 years, the re- this House on the threshold of granting Costa County’s own Brentwood, Cali- lationship between the United States the President $183 billion to continue fornia, for winning the 25th Best Rang- and Israel has been based on a shared the war in Iraq long past his term, it’s er Competition, one of the Army’s ath- commitment to democratic values. an appropriate time to ask why are we letic achievements. Also, for the past 60 years Israel has

VerDate Aug 31 2005 03:48 May 09, 2008 Jkt 069060 PO 00000 Frm 00002 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.003 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3191 stood on the front lines in confronting I call on the Democrat leadership, options and ways to make a difference. those who would use terror against ci- day 114 held hostage, H.R. 3058, bring it Unfortunately, many of my colleagues vilian populations as a means of bring- up for a vote. on the other side of the aisle have ing about political change. f stood in the way of a truly comprehen- Throughout that time, the United sive energy policy. States has stood for the political inde- b 1015 It’s time that Congress stop the rhet- pendence and the physical security of JONELL STINNETT oric and work for real solutions. the State of Israel. But we usually find f ourselves as being in the rear echelons (Mr. YARMUTH asked and was given as standing behind Israel more than permission to address the House for 1 NEIGHBORHOOD STABILIZATION standing beside Israel. But not any minute.) ACT OF 2008 more. Mr. YARMUTH. Mr. Speaker, I rise The SPEAKER pro tempore (Ms. Ever since 9/11, we in the United to tell the story of Jonell Stinnett SOLIS). Pursuant to House Resolution States have come to realize that we’re from my district in Fairdale, Ken- 1174 and rule XVIII, the Chair declares members of the same club, that we, tucky. Here are her words: the House in the Committee of the too, stand on the front lines alongside ‘‘My story is about my brother and Whole House on the state of the Union Israel in an ongoing war on terror. We his wife who died last September. for the further consideration of the not only belong to the same philo- Carol, my sister-in-law, had colon can- bill, H.R. 5818. sophical society, we’re also serving in cer for over 7 years. She took chemo 1018 the same outfit. for the last 5 years of her life. b As we congratulate Israel on its 60th ‘‘My brother had a heart attack 2 IN THE COMMITTEE OF THE WHOLE birthday, we look forward to the day years after she was diagnosed. A week Accordingly, the House resolved when each of us will be able to devote after his heart surgery, he had a mas- itself into the Committee of the Whole less of our national treasures to the sive stroke which paralyzed his right House on the state of the Union for the vital work of survival and national de- side, and then he got a diabetic ulcer further consideration of the bill (H.R. fense and be able, instead, to devote on his foot and finally had to have his 5818) to authorize the Secretary of more of our national treasures to more leg amputated. Housing and Urban Development to profitable enterprises. ‘‘Needless to say, their medical bills make loans to States to acquire fore- On behalf of my fellow Georgians, I were massive. They lost everything closed housing and to make grants to congratulate Israel on this milestone, they had worked for their whole life. I States for related costs, with Mr. and I pledge my best efforts to making take care of him now, and he needed to MCNULTY (Acting Chairman) in the the next 60 years of our relationship to- file bankruptcy. He needs a ramp to get chair. gether years of peace and prosperity. out his front door, a safe way to take a The Clerk read the title of the bill. f shower, but there is no help anywhere. The Acting CHAIRMAN. When the STOP HOLDING THE VOTE ON H.R. ‘‘I believe as an American citizen Committee of the Whole rose on 3058 HOSTAGE who has worked, paid taxes, and served Wednesday, May 7, 2008, a request for a his country in the Armed Forces, there recorded vote on amendment No. 7 (Mr. WALDEN of Oregon asked and should be some sort of help. I don’t printed in House Report 110–621 by the was given permission to address the know what, but with all the intelligent gentleman from Pennsylvania (Mr. House for 1 minute and to revise and people in Washington, it seems they ALTMIRE) had been postponed. extend his remarks.) could come up with some kind of plan Pursuant to clause 6 of rule XVIII, Mr. WALDEN of Oregon. Mr. Speak- for people like these so they don’t lose proceedings will now resume on those er, by refusing to renew the county all they have made.’’ amendments printed in House Report payments program, Congress has bro- 110–621 on which further proceedings ken its pledge to rural areas all across That was Jonell Stinnett, one voice were postponed, in the following order: this country like Lake County, Oregon, from Kentucky’s Third District. Amendment No. 4 by Mr. HENSARLING where Federal land covers 61 percent of f of Texas. the county. GAS PRICES Lake County has had to cut its road Amendment No. 7 by Mr. ALTMIRE of department from 42 people to 14, the (Mrs. CAPITO asked and was given Pennsylvania. The Chair will reduce to 5 minutes equipment is aging and overworked, it permission to address the House for 1 needs maintenance on the roads that’s minute and to revise and extend her re- the time for any electronic vote after being deferred. In this winter’s record marks.) the first vote in this series. snowfall, or near-record, Lake County Mrs. CAPITO. Madam Speaker, I rise AMENDMENT NO. 4 OFFERED BY MR. HENSARLING had to call in the Oregon Air National today because high gas prices are plac- The Acting CHAIRMAN. The unfin- Guard to come in and help plow the ing an increasingly heavy burden on ished business is the demand for a re- streets so the safety vehicles could get everyone, including my fellow West corded vote on the amendment offered through this county that’s larger than Virginians. As gas prices continue to by the gentleman from Texas (Mr. the States of Connecticut and Dela- spike, we deserve a sound energy policy HENSARLING) on which further pro- ware combined. Now they will be forced that creates new domestic sources of ceedings were postponed and on which to let paved roads revert to gravel. energy, increases supply and puts the noes prevailed by voice vote. H.R. 3058 would solve this problem downward pressure on gas prices. The Clerk will redesignate the and would help keep the roads open in I’ve supported anti-gouging legisla- amendment. Lake County and schools open tion and called on the President to halt The text of the amendment is as fol- throughout the west. Yet H.R. 3058 is shipments to the Strategic Petroleum lows: still held hostage on the Union Cal- Reserve, which could increase supply Amendment No. 4 offered by Mr. endar. It’s been approved by the com- and possibly save as much as 24 cents HENSARLING: mittees of this House. It has been held from the price of a gallon of gas. Page 2, line 10, strike ‘‘and grant’’. We’ve also increased fuel economy Page 3, line 1, strike ‘‘and grants’’. hostage since January 15. This is day Page 3, line 10, strike ‘‘AND GRANTS’’. 114. standards to make each gallon stretch Page 3, line 13, strike ‘‘make grants under All we’re asking is that the majority a little further. Yet West Virginians section 5(a) to qualified States and’’. schedule it for a vote on this House deserve a more comprehensive, long- Page 3, lines 18 and 19, strike ‘‘make a floor. Let us vote on secure rural term solution that provides real sta- grant under this Act only to a State, and schools and roads just to vote. That’s bility and actually leads to the cre- may’’. all. Let’s keep the commitment of the ation of new energy. Page 4, line 25, strike ‘‘grant and’’. Page 5, line 3, strike ‘‘grant and’’. Federal Government for 100 years to From clean coal to oil exploration Page 5, line 7, strike ‘‘grant or’’. these rural communities where Federal and drilling to our desperate need for Page 6, line 8, strike ‘‘grant and’’. land makes up the bulk of their coun- new refineries to expanded natural gas Page 6, lines 21 and 22, strike ‘‘grant ties. exploration, we have a wide range of amounts, and for’’.

VerDate Aug 31 2005 01:23 May 09, 2008 Jkt 069060 PO 00000 Frm 00003 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.005 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3192 CONGRESSIONAL RECORD — HOUSE May 8, 2008 Page 7, line 1, strike ‘‘grant or’’. [Roll No. 295] Holt Michaud Sestak Strike line 22 on page 8 and all that follows Honda Miller (NC) Shea-Porter AYES—190 through page 9, line 2. Hooley Miller, George Sherman Hoyer Mitchell Shuler Page 9, line 9, strike ‘‘GRANT AMOUNTS Aderholt Garrett (NJ) Paul Akin Gerlach Pearce Inslee Mollohan Sires AND’’. Israel Moore (WI) Skelton Page 9, line 11, strike ‘‘grant amount or’’. Alexander Gilchrest Pence Bachmann Gingrey Peterson (PA) Jackson (IL) Moran (VA) Slaughter Page 9, lines 12 and 13, strike ‘‘foreclosure Jackson-Lee Murphy (CT) Smith (WA) Bachus Gohmert Petri grant share’’. (TX) Murphy, Patrick Snyder Barrett (SC) Goodlatte Pickering Page 9, line 13, strike ‘‘or’’. Jefferson Murphy, Tim Solis Bartlett (MD) Granger Pitts Johnson (GA) Murtha Speier Page 9, lines 13 and 14, strike ‘‘, respec- Barton (TX) Graves Platts tively,’’. Biggert Hall (TX) Johnson, E. B. Nadler Spratt Poe Jones (OH) Napolitano Stark Page 9, line 20, strike ‘‘grant amount or’’. Bilbray Hastings (WA) Porter Bilirakis Hayes Kagen Neal (MA) Stupak Page 9, line 22, strike ‘‘foreclosure grant Price (GA) Bishop (UT) Heller Kanjorski Norton Sutton share or’’. Pryce (OH) Blackburn Hensarling Kaptur Oberstar Tanner Page 9, line 23, strike ‘‘, respectively,’’ and Putnam Blunt Herger Kennedy Obey Tauscher Radanovich ‘‘the grant amount or’’. Boehner Hobson Kildee Olver Taylor Page 9, line 25, strike ‘‘foreclosure grant Bonner Hoekstra Ramstad Kilpatrick Ortiz Thompson (CA) share or’’. Bono Mack Hulshof Regula Kind Pallone Thompson (MS) Page 10, line 1, strike ‘‘, respectively,’’. Boozman Hunter Rehberg Klein (FL) Pascrell Tierney Page 10, line 2, strike ‘‘grant amounts or’’. Boustany Inglis (SC) Reichert Kucinich Pastor Towns Page 10, line 6, strike ‘‘grant amounts or’’. Brady (TX) Issa Renzi Langevin Payne Tsongas Page 10, line 9, strike ‘‘grant amount or’’. Broun (GA) Johnson (IL) Reynolds Larsen (WA) Perlmutter Turner Rogers (AL) Larson (CT) Peterson (MN) Udall (CO) Page 10, line 11, strike ‘‘grant amount or’’. Brown (SC) Johnson, Sam Rogers (KY) Lee Price (NC) Udall (NM) Page 10, line 13, strike ‘‘foreclosure grant Brown-Waite, Jones (NC) Ginny Jordan Rogers (MI) Levin Rahall Van Hollen share or’’. Buchanan Keller Rohrabacher Lewis (GA) Rangel Vela´ zquez Page 10, line 14, strike ‘‘, respectively’’. Burgess King (IA) Roskam Lipinski Reyes Visclosky Page 10, line 16, strike ‘‘grant or’’. Burton (IN) King (NY) Royce Lofgren, Zoe Rodriguez Walsh (NY) Page 10, line 18, strike ‘‘or grants’’. Buyer Kingston Ruppersberger Lowey Ros-Lehtinen Walz (MN) Strike line 23 on page 10 and all that fol- Calvert Kirk Ryan (WI) Lynch Ross Wasserman lows through page 11, line 10. Camp (MI) Kline (MN) Sali Maloney (NY) Rothman Schultz Page 12, line 3, strike ‘‘grant and’’. Cannon Knollenberg Saxton Markey Roybal-Allard Waters Marshall Ryan (OH) Watson Page 12, strike lines 5 through 7. Cantor Kuhl (NY) Scalise Capito LaHood Schmidt Matheson Salazar Watt Page 12, line 14, strike ‘‘grant amounts Matsui ´ Carter Lamborn Sensenbrenner Sanchez, Linda Waxman and’’. McCarthy (NY) T. Weiner Castle Lampson Sessions Page 12, lines 17 and 18, strike ‘‘such grant McCollum (MN) Sanchez, Loretta Welch (VT) Chabot Latham Shadegg McDermott Sarbanes Wexler amounts and’’. Coble LaTourette Shays McGovern Schakowsky Wilson (OH) Page 12, line 19, strike ‘‘grant amounts Cole (OK) Latta Shimkus McNerney Schwartz Woolsey and’’. Conaway Lewis (CA) Shuster McNulty Scott (GA) Wu Page 12, line 20, strike ‘‘, respectively,’’. Crenshaw Lewis (KY) Simpson Culberson Linder Meek (FL) Scott (VA) Wynn Page 13, line 8, strike ‘‘grant amounts Smith (NE) Meeks (NY) Serrano Yarmuth and’’. Davis (KY) LoBiondo Smith (NJ) Page 13, lines 11 and 12, strike ‘‘grant Davis, David Lucas Smith (TX) NOT VOTING—29 Davis, Tom Lungren, Daniel Souder amounts and’’. Deal (GA) E. Arcuri Cooper McIntyre Stearns Page 13, line 13, strike ‘‘grant amounts Dent Mack Barrow Costa Melancon Sullivan and’’. Doolittle Manzullo Bean Cramer Moore (KS) Tancredo Page 13, line 14, strike ‘‘, respectively,’’. Drake Marchant Bishop (GA) Cubin Pomeroy Terry Page 14, lines 1 and 2, strike ‘‘grant and’’. Dreier McCarthy (CA) Boren Giffords Richardson Thornberry Duncan McCaul (TX) Campbell (CA) Goode Rush Page 14, line 5, strike ‘‘grant and’’. Tiahrt Ehlers McCotter Carney Hill Schiff Page 14, line 8, strike ‘‘grant and’’. Tiberi Emerson McCrery Chandler Loebsack Space Page 14, line 12, strike ‘‘grant amounts Upton Clay Mahoney (FL) and’’. English (PA) McHugh Young (AK) Everett McKeon Walberg Cohen McHenry Page 14, line 17, strike ‘‘grant amounts Fallin McMorris Walden (OR) and’’. Feeney Rodgers Wamp b 1045 Page 17, strike lines 21 through 25. Ferguson Mica Weldon (FL) Messrs. SERRANO, JOHNSON of Weller Strike line 18 on page 19 and all that fol- Flake Miller (FL) Georgia, FARR, GORDON of Tennessee lows through page 21, line 24. Forbes Miller (MI) Westmoreland Page 22, line 2, strike ‘‘grant or’’. Fortenberry Miller, Gary Whitfield (KY) and Ms. SPEIER, Ms. ROS-LEHTINEN, Strike line 12 on page 22 and all that fol- Fossella Moran (KS) Wilson (NM) Ms. SLAUGHTER and Mrs. Wilson (SC) lows through page 24, line 4. Foxx Musgrave GILLIBRAND changed their vote from Franks (AZ) Myrick Wittman (VA) Page 24, line 6, strike ‘‘grant or’’. Frelinghuysen Neugebauer Wolf ‘‘aye’’ to ‘‘no.’’ Page 24, lines 7 and 8, strike ‘‘grant and’’. Gallegly Nunes Young (FL) So the amendment was rejected. Page 24, line 23, strike ‘‘or grant’’. The result of the vote was announced Page 24, line 25, strike ‘‘or grant’’. NOES—219 as above recorded. Page 27, line 13, strike ‘‘grant or’’. Abercrombie Cazayoux Emanuel Page 27, line 19, strike ‘‘or grant’’. Stated for: Ackerman Christensen Engel Mr. POMEROY. Mr. Chairman, on May 8, Page 28, lines 12 and 13, strike ‘‘receives a Allen Clarke Eshoo grant under this Act or’’. Altmire Cleaver Etheridge 2008, I missed rollcall vote No. 295. Had I Page 28, lines 15 and 16, strike ‘‘obligation Andrews Clyburn Faleomavaega been present, I would have voted in the fol- of such grant amounts and’’. Baca Conyers Farr lowing manner: Rollcall No. 295, ‘‘yea.’’ Page 28, line 20, strike ‘‘obligate all such Baird Costello Fattah Mr. MCINTYRE. Mr. Chairman, on rollcall grant amounts and’’. Baldwin Courtney Filner ˜ No. 295, had I been present, I would have Page 28, lines 24 and 25, strike ‘‘outlay all Becerra Crowley Fortuno Berkley Cuellar Foster voted ‘‘no.’’ such grant amounts and’’. Berman Cummings Frank (MA) Mr. SCHIFF. Mr. Chairman, on rollcall No. Page 30, line 3, strike ‘‘a grant or’’ and in- Berry Davis (AL) Gillibrand sert ‘‘an’’. Bishop (NY) Davis (CA) Gonzalez 295, had I been present, I would have voted Page 30, line 13, strike ‘‘grant or’’. Blumenauer Davis (IL) Gordon ‘‘no.’’ Page 30, lines 14 and 15, strike ‘‘grant or’’. Bordallo Davis, Lincoln Green, Al Mr. WESTMORELAND. Mr. Chair- Page 30, line 19, strike ‘‘grant or’’. Boswell DeFazio Green, Gene man, parliamentary inquiry. Page 35, strike lines 8 through 10. Boucher DeGette Grijalva The Acting CHAIRMAN. The gen- Boyd (FL) Delahunt Gutierrez Page 35, line 21, strike ‘‘$7,500,000,000’’ and tleman may state his inquiry. insert ‘‘$15,000,000,000’’. Boyda (KS) DeLauro Hall (NY) Brady (PA) Diaz-Balart, L. Hare Mr. WESTMORELAND. Mr. Chair- RECORDED VOTE Braley (IA) Diaz-Balart, M. Harman man, in light of the conversation that Brown, Corrine Dicks Hastings (FL) The Acting CHAIRMAN. A recorded Butterfield Dingell Herseth Sandlin the majority leader and the minority vote has been demanded. Capps Doggett Higgins leader had last night as far as leaving A recorded vote was ordered. Capuano Donnelly Hinchey votes open, and I believe the majority The vote was taken by electronic de- Cardoza Doyle Hinojosa leader said the vote would be for 15 Carnahan Edwards Hirono vice, and there were—ayes 190, noes 219, Carson Ellison Hodes minutes, and then a 2-minute courtesy not voting 29, as follows: Castor Ellsworth Holden period, could you tell me the tally of

VerDate Aug 31 2005 01:23 May 09, 2008 Jkt 069060 PO 00000 Frm 00004 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.001 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3193 the vote at the end of the 15 minutes gia that the Chair put the question cor- Carnahan Hoyer Perlmutter and the 2-minute courtesy period? rectly, that it is whether the ruling of Carney Inslee Peterson (MN) Carson Israel Pomeroy The Acting CHAIRMAN. The gen- the Chair shall stand. Castor Jackson (IL) Price (NC) tleman has not stated a parliamentary Mr. LINDER. That wasn’t the mo- Cazayoux Jackson-Lee Rahall inquiry. tion. The motion was to appeal the rul- Chandler (TX) Rangel Christensen Jefferson Reyes POINT OF ORDER ing of the Chair. Clarke Johnson (GA) Rodriguez Mr. WESTMORELAND. Mr. Chair- The Acting CHAIRMAN. The ques- Clay Johnson (IL) Ross man, I make a point of order under tion that the Chair properly put was Cleaver Johnson, E. B. Rothman clause 2(a) of rule XX that the vote whether the ruling of the Chair shall be Clyburn Jones (NC) Roybal-Allard Conyers Jones (OH) Ruppersberger just ended was held open for the sole sustained. Cooper Kagen Ryan (OH) Costa Kanjorski purpose of reversing the outcome. Mr. LINDER. Would you tell me who Salazar Costello Kaptur The Acting CHAIRMAN. The Chair changed the ruling from ‘‘appeal’’ to Sa´ nchez, Linda Courtney Kennedy T. has considered whether the new sen- ‘‘sustain’’? Cramer Kildee tence in clause 2(a) of rule XX should The Acting CHAIRMAN. The Chair Crowley Kilpatrick Sanchez, Loretta Cuellar Kind Sarbanes be enforceable in real time. would advise the gentleman from Geor- Schakowsky The black letter of the rule is not gia the question on appeal is, as always Cummings Klein (FL) Davis (AL) Kucinich Schiff dispositive. It uses the mandatory in the Committee of the Whole, ‘‘Shall Davis (CA) LaHood Schwartz ‘‘shall.’’ It might just as well say the decision of the Chair stand as the Davis (IL) Lampson Scott (GA) ‘‘should,’’ inasmuch as it is setting a judgment of the Committee?’’ Davis, Lincoln Langevin Scott (VA) DeFazio Larsen (WA) Serrano standard of behavior for presiding offi- The Chair understands that the dis- DeGette Larson (CT) Sestak cers. For this reason the Chair thinks play board initially said ‘‘appealing the Delahunt Lee Shea-Porter it more sensible to enforce the rule on ruling of the Chair,’’ which was incor- DeLauro Levin Sherman collateral bases, as by a question of the rect. So for the information of all Dicks Lewis (GA) Shuler Dingell Lipinski Sires privileges of the House. Members of the House, in case of any Doggett Lofgren, Zoe Skelton A set of ‘‘whereas’’ clauses in the pre- misapprehension, the question is on Donnelly Lowey Slaughter amble of a resolution could allege the sustaining the ruling of the Chair, not Doyle Lynch Smith (WA) Edwards Mahoney (FL) Snyder facts and circumstances tending to in- on whether an appeal shall take place. Ellison Maloney (NY) Solis dicate a violation more coherently Mr. LINDER. I ask unanimous con- Ellsworth Markey Space than they could be articulated in argu- sent that the vote be restarted. Emanuel Marshall Speier ment on a point of order or in debate Mr. SCOTT of Virginia. I object. Engel Matheson Spratt Eshoo Matsui Stark on an appeal. The resolving clause of a Mr. LINDER. I ask unanimous con- Etheridge McCollum (MN) Stupak resolution could propose a fitting rem- sent that we vacate this vote. Faleomavaega McDermott Sutton edy, rather than requiring the instant The Acting CHAIRMAN. Objection is Farr McGovern Tanner selection of a remedy in the face of heard. Fattah McIntyre Tauscher Filner McNerney Taylor competing demands for vitiation of the Mr. LINDER. So moved. Foster McNulty Thompson (CA) putative result, reversal of the puta- The Acting CHAIRMAN. Such a mo- Frank (MA) Meek (FL) Thompson (MS) tive result, or admonishment of the tion is not in order. Giffords Meeks (NY) Tierney Gillibrand Melancon Towns presiding officer. Voting will resume. All Members are Gonzalez Michaud Tsongas The Chair finds that the new sen- Goode Miller (NC) advised that the question is on sus- Udall (CO) Gordon Mitchell tence in clause 2(a) of rule XX does not taining the ruling of the Chair. Ade- Udall (NM) Green, Al Mollohan Van Hollen establish a point of order having an im- quate time will remain for any Member Green, Gene Moore (KS) ´ mediate procedural remedy. Rather who wishes to verify his or her vote. Grijalva Moore (WI) Velazquez than contemplating a ruling from the Gutierrez Moran (VA) Visclosky Mr. LINDER. Mr. Chairman, I ask Walz (MN) Chair in real time, the language should unanimous consent again that we va- Hall (NY) Murphy (CT) Hare Murphy, Patrick Wasserman be understood to establish a standard cate the vote. Harman Murtha Schultz of behavior for presiding officers that The Acting CHAIRMAN. Is there ob- Hastings (FL) Nadler Waters might be enforced on collateral bases. Herseth Sandlin Napolitano Watson jection? The Chair hears none. Watt Mr. WESTMORELAND. Mr. Chair- Higgins Neal (MA) As soon as the Clerk is prepared, the Hill Norton Waxman man, with that I appeal the ruling of pending vote will be vacated and the Hinchey Oberstar Weiner the Chair. Chair will put the question anew. Hinojosa Obey Welch (VT) Mr. FRANK of Massachusetts. Mr. The question before the House is, Hirono Olver Wexler Hodes Ortiz Wilson (OH) Chairman, I move to lay the appeal on Shall the decision of the Chair stand as Holden Pallone Woolsey the table. the judgment of the Committee? Holt Pascrell Wynn The Acting CHAIRMAN. The motion The question was taken; and the Act- Honda Pastor Yarmuth to lay on the table is not in order in ing Chairman announced that the ayes Hooley Payne Young (FL) the Committee of the Whole. appeared to have it. NOES—182 The question is, Shall the decision of RECORDED VOTE the Chair stand as the judgment of the Aderholt Camp (MI) Everett Mr. WALDEN of Oregon. Mr. Chair- Akin Cannon Fallin Committee? man, I demand a recorded vote. Alexander Cantor Feeney The question was taken; and the Act- Bachmann Capito Ferguson A recorded vote was ordered. ing Chairman announced that the noes Barrett (SC) Carter Flake The Acting CHAIRMAN. This 15- Bartlett (MD) Castle Forbes appeared to have it. minute vote will be followed by a 5- Barton (TX) Chabot Fortenberry Mr. FRANK of Massachusetts. Mr. ˜ minute vote. Biggert Coble Fortuno Chairman, I demand a recorded vote. Bilbray Cole (OK) Fossella The vote was taken by electronic de- A recorded vote was ordered. Bilirakis Conaway Foxx Bishop (UT) Crenshaw Franks (AZ) The Acting CHAIRMAN. This 15- vice, and there were—ayes 235, noes 182, answered ‘‘present’’ 6, not voting 15, as Blackburn Cubin Frelinghuysen minute vote on sustaining the ruling of Blunt Culberson Gallegly the Chair will be followed by a 5- follows: Bonner Davis (KY) Garrett (NJ) [Roll No. 296] Bono Mack Davis, David Gerlach minute vote. Boozman Davis, Tom Gingrey Mr. LINDER (during the vote). Mr. AYES—235 Boustany Deal (GA) Gohmert Chairman, I was standing right by the Abercrombie Bean Boucher Brady (TX) Dent Goodlatte gentleman who made the motion. The Ackerman Becerra Boyd (FL) Broun (GA) Diaz-Balart, L. Granger Allen Berkley Boyda (KS) Brown (SC) Diaz-Balart, M. Graves motion was to appeal the ruling of the Altmire Berman Brady (PA) Brown-Waite, Doolittle Hall (TX) Chair. Andrews Berry Braley (IA) Ginny Drake Hastings (WA) Who changed the motion to sus- Arcuri Bishop (GA) Brown, Corrine Buchanan Dreier Hayes taining it? Baca Bishop (NY) Butterfield Burgess Duncan Heller Baird Blumenauer Capps Burton (IN) Ehlers Hensarling The Acting CHAIRMAN. The Chair Baldwin Boren Capuano Buyer Emerson Herger would advise the gentleman from Geor- Barrow Boswell Cardoza Calvert English (PA) Hobson

VerDate Aug 31 2005 01:23 May 09, 2008 Jkt 069060 PO 00000 Frm 00005 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.009 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3194 CONGRESSIONAL RECORD — HOUSE May 8, 2008 Hoekstra Miller (MI) Sensenbrenner [Roll No. 297] Putnam Sestak Tsongas Inglis (SC) Miller, Gary Sessions Radanovich Shadegg Turner Issa Moran (KS) Shadegg AYES—391 Rahall Shays Udall (CO) Johnson, Sam Murphy, Tim Ramstad Shea-Porter Shays Abercrombie Delahunt King (IA) Udall (NM) Jordan Musgrave Rangel Sherman Shimkus Ackerman DeLauro King (NY) Upton Keller Myrick Regula Shimkus Shuster Aderholt Dent Kingston Van Hollen King (IA) Neugebauer Rehberg Shuler ´ Simpson Akin Dicks Kirk Velazquez King (NY) Nunes Reichert Shuster Smith (NE) Alexander Dingell Klein (FL) Visclosky Kingston Pearce Renzi Simpson Smith (NJ) Walberg Kirk Peterson (PA) Allen Doggett Kline (MN) Reyes Sires Smith (TX) Walden (OR) Kline (MN) Petri Altmire Donnelly Knollenberg Reynolds Skelton Souder Walsh (NY) Knollenberg Pitts Andrews Doolittle Kuhl (NY) Rodriguez Slaughter Stearns Arcuri Doyle LaHood Walz (MN) Kuhl (NY) Poe Rogers (AL) Smith (NE) Wamp Lamborn Porter Sullivan Bachmann Drake Lamborn Rogers (KY) Smith (NJ) Wasserman Latham Price (GA) Tancredo Bachus Dreier Lampson Rogers (MI) Smith (TX) Schultz Latta Pryce (OH) Terry Barrett (SC) Duncan Langevin Rohrabacher Smith (WA) Waters Lewis (CA) Putnam Thornberry Barrow Edwards Larsen (WA) Roskam Snyder Watson Lewis (KY) Radanovich Tiahrt Bartlett (MD) Ehlers Larson (CT) Ross Souder Watt Linder Ramstad Tiberi Barton (TX) Ellsworth Latham Rothman Space Waxman LoBiondo Regula Turner Bean Emanuel LaTourette Roybal-Allard Speier Weiner Lucas Rehberg Upton Becerra Emerson Latta Royce Spratt Berkley Weldon (FL) Mack Reichert Walberg Engel Levin Ruppersberger Stearns Berman English (PA) Lewis (CA) Weller Manzullo Renzi Walden (OR) Ryan (OH) Stupak Berry Eshoo Lewis (GA) Westmoreland Marchant Reynolds Walsh (NY) Ryan (WI) Sullivan McCarthy (CA) Rogers (AL) Biggert Etheridge Lewis (KY) Salazar Tancredo Wexler Wamp Bilbray Everett Linder Whitfield (KY) McCaul (TX) Rogers (KY) Weldon (FL) Sali Tanner McCotter Bilirakis Faleomavaega Lipinski Wilson (NM) Rogers (MI) Weller Sarbanes Tauscher McCrery Ros-Lehtinen Bishop (GA) Fallin LoBiondo Saxton Taylor Wilson (OH) Westmoreland McHenry Roskam Bishop (NY) Fattah Lofgren, Zoe Scalise Terry Wilson (SC) Whitfield (KY) McHugh Royce Bishop (UT) Feeney Lowey Schiff Thompson (CA) Wittman (VA) McKeon Ryan (WI) Wilson (NM) Blackburn Ferguson Lucas Schmidt Thompson (MS) Wolf McMorris Sali Wilson (SC) Blumenauer Flake Lungren, Daniel Schwartz Thornberry Wu Rodgers Saxton Wittman (VA) Blunt Forbes E. Scott (GA) Tiahrt Wynn Mica Scalise Wolf Boehner Fortenberry Lynch Scott (VA) Tiberi Yarmuth Miller (FL) Schmidt Young (AK) Bonner Fortun˜ o Mack Sensenbrenner Tierney Young (AK) Bono Mack Fossella Mahoney (FL) Sessions Towns Young (FL) ANSWERED ‘‘PRESENT’’—6 Boozman Foster Maloney (NY) Gilchrest Lungren, Daniel Rohrabacher Boren Foxx Manzullo NOES—33 Hulshof E. Boswell Frank (MA) Marchant Baca Hirono Ros-Lehtinen LaTourette Pence Boucher Franks (AZ) Markey Baldwin Honda Sa´ nchez, Linda Boustany Frelinghuysen Marshall Clarke Johnson (GA) T. NOT VOTING—15 Boyd (FL) Gallegly Matheson Crowley Kucinich Sanchez, Loretta Bachus Hunter Pickering Boyda (KS) Garrett (NJ) Matsui Diaz-Balart, L. Lee Brady (PA) Gerlach McCarthy (CA) Schakowsky Boehner Loebsack Platts Diaz-Balart, M. McDermott Serrano Bordallo McCarthy (NY) Richardson Brady (TX) Giffords McCaul (TX) Ellison McGovern Braley (IA) Gilchrest McCollum (MN) Solis Campbell (CA) Miller, George Rush Farr Moore (WI) Stark Cohen Paul Wu Broun (GA) Gillibrand McCotter Filner Moran (VA) Sutton Brown (SC) Gingrey McHenry Gonzalez Napolitano Woolsey b 1121 Brown, Corrine Gohmert McHugh Grijalva Olver Brown-Waite, Goode McIntyre Gutierrez Pastor Mr. ISSA changed his vote from Ginny Goodlatte McKeon ‘‘aye’’ to ‘‘no.’’ Buchanan Gordon McMorris NOT VOTING—14 So the decision of the Chair stands as Burgess Granger Rodgers Baird Jackson-Lee Miller, George the judgment of the Committee. Burton (IN) Graves McNerney Bordallo (TX) Pickering Butterfield Green, Al McNulty The result of the vote was announced Campbell (CA) Loebsack Richardson Buyer Green, Gene Meek (FL) Cohen McCarthy (NY) Rush as above recorded. Calvert Hall (NY) Meeks (NY) Cummings McCrery Welch (VT) AMENDMENT NO. 7 OFFERED BY MR. ALTMIRE Camp (MI) Hall (TX) Melancon The Acting CHAIRMAN. The unfin- Cannon Hare Mica ANNOUNCEMENT BY THE ACTING CHAIRMAN Cantor Harman Michaud The Acting CHAIRMAN (during the ished business is the demand for a re- Capito Hastings (FL) Miller (FL) corded vote on the amendment offered Capps Hastings (WA) Miller (MI) vote). Members have less than 1 minute by the gentleman from Pennsylvania Capuano Hayes Miller (NC) remaining to vote. Cardoza Heller Miller, Gary (Mr. ALTMIRE) on which further pro- Carnahan Hensarling Mitchell b 1130 ceedings were postponed and on which Carney Herger Mollohan Mr. ELLISON changed his vote from the ayes prevailed by voice vote. Carson Herseth Sandlin Moore (KS) Carter Higgins Moran (KS) ‘‘aye’’ to ‘‘no.’’ The Clerk will redesignate the Castle Hill Murphy (CT) So the amendment was agreed to. amendment. Castor Hinchey Murphy, Patrick The result of the vote was announced The text of the amendment is as fol- Cazayoux Hinojosa Murphy, Tim as above recorded. lows: Chabot Hobson Murtha Chandler Hodes Musgrave PERSONAL EXPLANATION Amendment No. 7 offered by Mr. ALTMIRE: Christensen Hoekstra Myrick Mr. MCCARTHY of New York. Mr. Chair- Page 36, after line 2, insert the following Clay Holden Nadler new section: Cleaver Holt Neal (MA) man, earlier today I was questioning witnesses SEC. 15. INELIGIBLITY OF ILLEGAL ALIENS FOR Clyburn Hooley Neugebauer on the arts and humanities as Chairwoman of ASSISTANCE. Coble Hoyer Norton the Healthy Families and Communities Sub- Aliens who are not lawfully present in the Cole (OK) Hulshof Nunes committee of the Education and Labor Com- Conaway Hunter Oberstar United States shall be ineligible for financial mittee. I missed two votes. I would like the assistance under this Act, as provided and Conyers Inglis (SC) Obey Cooper Inslee Ortiz RECORD to reflect how I would have voted had defined by section 214 of the Housing and Costa Israel Pallone Community Development Act of 1980 (42 I been able to get to the floor in time. Costello Issa Pascrell Rollcall No. 296 on sustaining the ruling of U.S.C. 1436a). Nothing in this Act shall be Courtney Jackson (IL) Paul construed to alter the restrictions or defini- Cramer Jefferson Payne the chair, I would have voted ‘‘aye.’’ tions in such section 214. Crenshaw Johnson (IL) Pearce Rollcall No. 297 on the Altmire amendment Page 36, line 3, strike ‘‘15’’ and insert ‘‘16’’. Cubin Johnson, E. B. Pence to H.R. 5818, I would have voted ‘‘aye.’’ Cuellar Johnson, Sam Perlmutter RECORDED VOTE Culberson Jones (NC) Peterson (MN) PERSONAL EXPLANATION The Acting CHAIRMAN. A recorded Davis (AL) Jones (OH) Peterson (PA) Ms. BORDALLO. Mr. Chairman, I was un- Davis (CA) Jordan Petri avoidable detained in a meeting earlier today, vote has been demanded. Davis (IL) Kagen Pitts A recorded vote was ordered. Davis (KY) Kanjorski Platts May 8, 2008, in the other body regarding leg- The Acting CHAIRMAN. This will be Davis, David Kaptur Poe islation I have sponsored, and, therefore, was a 5-minute vote. Davis, Lincoln Keller Pomeroy absent from the Chamber when rollcall votes The vote was taken by electronic de- Davis, Tom Kennedy Porter 296 and 297 were taken. Had I been present Deal (GA) Kildee Price (GA) vice, and there were—ayes 391, noes 33, DeFazio Kilpatrick Price (NC) for these two votes taken in the Committee of not voting 14, as follows: DeGette Kind Pryce (OH) the Whole House on the State of the Union,

VerDate Aug 31 2005 03:48 May 09, 2008 Jkt 069060 PO 00000 Frm 00006 Fmt 4634 Sfmt 9920 E:\CR\FM\A08MY7.023 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3195 I would have voted as follows: ‘‘aye’’ to sus- I support this housing package because it munities justifies the overall cost. Studies have tain the ruling of the Chair (rollcall vote 296) will greatly assist my constituents in Cleveland shown that home foreclosures adversely affect and ‘‘aye’’ on the amendment offered by Mr. as well as thousands of Americans across the the value of other homes in the same neigh- ALTMIRE of Pennsylvania to H.R. 5818 (rollcall country by helping families stay in their homes borhood, and the rate of home foreclosures in vote 297). while they repay their mortgage debt. This leg- a neighborhood directly corresponds to a Mr. DINGELL. Mr. Chairman, this legislation islation will also help avoid the decreased spike in crime in that neighborhood. In many represents a fair, commonsense solution that property values and increased crime rates that cases, foreclosed and vacated homes have will give assistance to communities struggling often come with concentrations of foreclosed become the dens of vagrants, drug addicts to deal with the problem of vacant homes, and abandoned properties. and drug dealers. help stabilize the housing market, and help I wish to thank Chairman RANGEL and Rank- H.R. 5818 attempts to reduce the likelihood low income families obtain a home they can ing Member MCCRERY as well as Chairman of these problems by helping States buy and afford and be proud of. FRANK and Subcommittee Chair WATERS for refurbish foreclosed and vacated housing The Neighborhood Stabilization Act will their work on these important pieces of legisla- properties to make them an appealing choice make available to communities throughout the tion. I am extremely pleased that sections of for qualified families to buy or rent. In addition, Nation $15 billion in new zero interest loans H.R. 1043, the Community Restoration and this legislation includes provisions to protect and grants for the purchase and rehabilitation Revitalization Act, a piece of legislation I have against housing speculator abuse by requiring of foreclosed properties. State and local gov- introduced for the past two Congresses, was that homes purchased and refurbished by a ernments have been hit hard by the fore- incorporated into the housing legislation before State be resold to families whose income does closure crisis not only because they have us today. not exceed 140 percent of the area median in- been stuck with the bill for maintaining and se- This bill simplifies the Federal Historic Re- come. This bill offers further targeted assist- curing vacant homes, but also because they habilitation Tax Credit, ‘‘Rehab Credit’’ thereby ance for those Americans who need it most by face decreased property tax revenues. Not making it easier to utilize the credit for revital- requiring that half of the bill’s grant money be only are these properties off the tax rolls, but izing our nation’s older neighborhoods, har- dedicated to housing families at or below 50 empty houses drive down the value of other nessing greater housing potential in underuti- percent area median income. homes in the neighborhood which further de- lized historic and older buildings, and focusing Finally, H.R. 5818 will direct funds to the creases tax revenues. more private sector investment in smaller, States with the greatest need. Under this bill, Just as important, this bill will get these ‘‘main street’’ oriented commercial structures. each State’s loan and grant authority would be homes occupied by families who truly need The language in the bill that explicitly refers based on the State’s percentage of nationwide them. A priority will be given to low income to the ‘‘historic nature’’ of development foreclosures reported during the previous four families, families who have lost a home projects is important because, for the first calendar quarters. This is a significant point through foreclosure, as well as first respond- time, it directs state housing agencies to cre- for my home State of Colorado, which has ers, veterans, public school teachers, and ate a priority within their qualified allocation consistently ranked among the top 10 States homeless persons. plans for historic properties that can be con- in percentage of foreclosures. This measure will bring almost $600 million verted to affordable housing through the use in assistance to the State of Michigan at a of both the Low-Income Housing Tax Credit Mr. Chairman, this bill is a good measure time when it is badly needed. Michigan has and the Federal historic tax credit. that deserves our support. As I previously stat- been particularly hard hit by the President’s Additionally, the bill simplifies the rules for ed, the benefits of this legislation outweigh my misguided economic policies, most especially nonprofit and government agencies who spon- concerns over its cost, and I urge my col- his failure to address the foreclosure crisis. I sor or rent space in historic tax credit projects leagues to join me in supporting it. sincerely hope that the President, who ap- and significantly lowers the cost of these The Acting CHAIRMAN. The ques- proved a $30 billion bailout for the investment transactions. tion is on the committee amendment bank Bear Steams, will see to it to sign and In addition to simplifying the Rehab Tax in the nature of a substitute, as amend- implement this bill which will provide much Credit, the bill would also facilitate coordina- ed. needed assistance to State and local govern- tion of the credit with the Low-Income Housing The committee amendment in the ments. Tax Credit by exempting both credits from the nature of a substitute, as amended, was Mrs. JONES of Ohio. Mr. Chairman, I rise restrictions of the AMT rules. agreed to. today in support of this housing package be- Since its inception, the rehab credit has The Acting CHAIRMAN. Under the cause it is imperative that Congress take ac- been responsible for 133 residential and com- rule, the Committee rises. tion to assist homeowners struggling today. mercial projects in the city of Cleveland, Accordingly, the Committee rose; The epidemic of home losses in this country is leveraging about $760 million of private invest- and the Speaker pro tempore (Mr. severe, with the impact not only causing harm ment. Because of the credit, downtown Cleve- WEINER) having assumed the chair, Mr. to the families who lose their homes, but also land and neighborhoods like the Warehouse MCNULTY, Acting Chairman of the affecting nearby homeowners who suffer District, the Gateway District, and East Fourth Committee of the Whole House on the drops in their property values and commu- Street are being revitalized—pumping more in- State of the Union, reported that that nities who suffer the impact of lower tax reve- vestment into the region and revenue to the Committee, having had under consider- nues. city and State. This legislation is crucial to fur- ation the bill (H.R. 5818) to authorize Nationally, the number of seriously delin- thering the economic development of Cleve- the Secretary of Housing and Urban quent loans and new foreclosures in January land and the State of Ohio. Development to make loans to States and February of this year was over 2.1 million, My hope is that as we move forward we to acquire foreclosed housing and to an increase of 8 percent over the previous shall have the other important parts of H.R. make grants to States for related quarter and a 55 percent increase from a year 1043 enacted, as well as further simplification costs, pursuant to House Resolution earlier. and clarification of the regulations regarding 1174, reported the bill back to the The housing crisis has severely impacted nonprofit and government use of historic build- House with an amendment adopted by my congressional district, particularly the city ings rehabilitated with the help of the Federal the Committee of the Whole. of Cleveland, Ohio. Cleveland’s weak housing historic tax credit. The SPEAKER pro tempore. Under market coupled with a housing over-supply I urge my colleagues to support the pas- the rule, the previous question is or- has created a large number of foreclosures sage of this housing package. dered. and abandoned properties. As of December Mr. UDALL of Colorado. Mr. Chairman, I 2007, the number of properties in Cleveland rise in support of H.R. 5818, the Neighbor- Is a separate vote demanded on any identified as abandoned, nuisance properties hood Stabilization Act of 2008. This bill would amendment to the amendment re- was 8,588. According to the Cleveland Depart- provide $15 billion in loans and grants, admin- ported from the Committee of the ment of Community Development, the esti- istered by the U.S. Department of Housing Whole? If not, the question is on the mated number of homes entering the tax fore- and Urban Development, for States to buy amendment. closure pool in 2008 was 1,000—with 900 and, rehabilitate foreclosed and vacated hous- The amendment was agreed to. homes within this pool requiring public demoli- ing properties in order to resell or rent them The SPEAKER pro tempore. The tion. These abandoned and foreclosed prop- out. question is on the engrossment and erties exist in every neighborhood in Cleve- While I have some reservations about the third reading of the bill. land, but there are concentrations in commu- balance in this bill between loans and grants, The bill was ordered to be engrossed nities in my district where the real estate mar- I think the potential threat to the value of and read a third time, and was read the ket has completely collapsed. American homes and the safety of our com- third time.

VerDate Aug 31 2005 03:48 May 09, 2008 Jkt 069060 PO 00000 Frm 00007 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.027 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3196 CONGRESSIONAL RECORD — HOUSE May 8, 2008 MOTION TO RECOMMIT OFFERED BY MR. it provides $7.5 billion in grants to re- to Landstuhl Hospital in Germany and SHADEGG habilitate those homes. As such, it is a visited our fighting men and women. I Mr. SHADEGG. Mr. Speaker, I have a giveaway to the mortgage industry have been to Walter Reed Army Hos- motion at the desk. that made bad loans. pital and visited them. It is wonderful The SPEAKER pro tempore. Is the Nonetheless, Mr. Speaker, this mo- that we can save their lives, but this gentleman opposed to the bill? tion to recommit is a genuine attempt motion to recommit recognizes and re- Mr. SHADEGG. I am in its present to improve this bill. If the majority in- wards their sacrifices. It provides that form. sists on going down this path, the least disabled veterans, seeking to purchase The SPEAKER pro tempore. The we can do is to give those who have a home made available under this leg- Clerk will report the motion to recom- served our Nation the highest priority islation, must be given first preference. mit. in receiving housing assistance under Mr. Speaker, these are commonsense The Clerk read as follows: this legislation, and to make sure that changes to this bill that will improve Mr. Shadegg moves to recommit the bill those who have preyed upon our soci- it, and I urge my colleagues to adopt H.R. 5818 to the Committee on Financial ety as criminals are not helped by the them by passing this motion to recom- Services with instructions to report the same back to the House promptly in the legislation. mit. form to which it may be perfected at the In its present form, the bill allows I yield back the balance of my time. time of this motion with the following homes acquired and rehabilitated with Mr. FRANK of Massachusetts. Mr. amendments: taxpayer money to be purchased by Speaker, I rise to speak in opposition Page 6, line 3, before ‘‘provide’’ insert convicted drug dealers, convicted sex to the motion to recommit. ‘‘subject to any preferences as may be spe- offenders, and people who have been The SPEAKER pro tempore. The gen- cifically set forth in this subsection with re- convicted of mortgage fraud. tleman is recognized for 5 minutes. spect to amounts for housing rehabilitation Last night our colleague, Mr. Mr. FRANK of Massachusetts. Mr. and to the preferences required under the ALTMIRE, offered an amendment that Speaker, I hope we are here seriously last two paragraphs of this subsection,’’. Page 6, line 15, strike ‘‘for veterans,’’. prohibits homes made available for to legislate. The effect of adopting this Page 6, strike ‘‘or providing’’ in line 18 and sale under this bill, acquired and reha- will be to make it much less likely all that follows through ‘‘located’’ in line 20 bilitated with taxpayer dollars, from that veterans will get the preference. and insert the following: ‘‘except that pref- being sold to illegal immigrants. That Now I understand the frustration of erences established pursuant to this para- was a good amendment and I am glad Members on the other side. The gen- graph shall be subordinate to any pref- to see that the House just now over- tleman from Michigan (Mr. MCCOTTER) erences as may be specifically set forth in whelmingly adopted it. offered an amendment yesterday, not- this subsection with respect to amounts for In advocating for his amendment, withstanding any other preferences, housing rehabilitation and to the preferences required under the last two paragraphs of Mr. ALTMIRE said that homes made first priority to veterans, members of this subsection’’. available through this bill should be the Armed Forces on active duty, Page 6, line 24, strike ‘‘and’’. available only to law abiding U.S. citi- members of the National Guard or Page 7, line 5, strike the period and insert zens. Armed Forces reserves, school teachers a semicolon. My colleagues, Mr. ALTMIRE is right. and emergency responders. That is now Page 7, after line 5, insert the following: This motion to recommit brings the in the bill. That is part of the bill. (14) subject only to any preferences as may same commonsense to this bill that The gentleman phrased his motion as be specifically set forth in this subsection with respect to amounts for housing reha- Mr. ALTMIRE’s amendment did. It sim- ‘‘promptly.’’ Now we have already seen bilitation and to the last paragraph of this ply says that homes made available the kind of delay tactics that the mi- subsection and notwithstanding any other under the bill cannot be sold to drug nority has been prone to use. Send this preferences established or authorized by this dealers, sex offenders, or people con- back to committee, and you are very subsection, provide priority preference, in victed of mortgage fraud. unlikely to get it back on the floor in use of amounts from grants or loans under I ask my colleagues, imagine how a way in which we can pass it. So last this Act, for providing housing for veterans you would feel if your taxes were taken night we adopted preference for vet- and for teachers or workforce (including law under this legislation and used by the erans. Today, in the guise of redoing enforcement officers, firefighters, and other first responders) who are employed by the government to purchase foreclosed what we have already done, a motion is city or locality in which the housing is lo- homes, then to rehabilitate a fore- offered that will keep veterans from cated; and closed home in your neighborhood, and benefiting from that preference be- (15) provide that in carrying out any other then if that house was put on the mar- cause the bill won’t go anywhere. provision of this subsection that provides ket and sold by the government to a The gentleman was honest. He began preference, in the use of amounts from convicted drug dealer, a convicted sex by saying he doesn’t like this bill. And grants or loans under this Act (or any por- offender, or person guilty of fraud in since a head-on assault will not pass— tion of such amounts), for providing housing the mortgage industry who contributed no, I will not yield. I will explain why for veterans and other classes, highest pref- I won’t yield. I won’t yield because I erence shall be provided for providing hous- to the very housing turmoil we are now ing for disabled veterans, and then pref- faced with. You would be outraged, and have consistently, when I was chairing erence shall be given to providing housing you should be. We cannot let that hap- the committee, been open to amend- for other veterans and such other classes; pen under this legislation. ments. I have yielded. But when at the and The second provision of the motion last minute with zero notice something Page 27, after line 16, insert the following: to recommit corrects another defect in is drafted with no chance to discuss it, (k) LIMITATION ON RESIDENCY.—No indi- the bill. Yesterday an amendment was and they use their full 5 minutes, of vidual may purchase or lease any qualified offered to provide veterans and public course I won’t give up the small foreclosed housing that was acquired using any amounts provided under a grant or loan safety officers such as firemen and po- amount of time we have. It is already under this Act, or any dwelling unit in any lice with a preference in purchasing inadequate to discuss this. such qualified foreclosed housing, if such in- homes made available under this bill. So this will prevent the veterans dividual has been convicted under Federal or The chairman of the committee quite from getting the preferences they al- State law of a drug-dealing offense, a sex of- appropriately accepted that amend- ready have. You have seen what can fense, or mortgage fraud. ment. But we can do better than that. happen with these delays. We have The SPEAKER pro tempore. The gen- This motion to recommit takes that preference for veterans in this bill. tleman from Arizona is recognized for 5 concept one step further. It provides Now let me say procedurally, if this minutes. that disabled American veterans are to had said ‘‘forthwith,’’ I would have Mr. SHADEGG. Mr. Speaker, this be accorded an even higher preference been less concerned about it. But there legislation is flawed in many respects. in acquiring homes under this legisla- is also this: during the markup of this It provides $7.5 billion in loans to cit- tion. bill, we accepted nine Republican ies, States, and nonprofits to buy fore- Mr. Speaker, every Member in this amendments. Yesterday we accepted closed homes from mortgage lenders body is aware tragically that American several Republican amendments. If I who made bad loans. That will not help soldiers are returning with horrific was seriously interested in helping the people avoid foreclosures. In addition, wounds. Like many of you, I have been people who are to be the beneficiaries,

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00008 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.017 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3197 I would have offered an amendment at save this President from having to proved by the Veterans Affairs Committee that the Rules Committee, and we would make the decision. extends to one year, from 90 days, the period have accepted it. I would not have I urge my colleagues not to fall for following active duty service during which waited to say ‘‘promptly’’ so that I that partisan ploy. Vote down this ef- service members are protected from fore- would have used the disabled veterans fort to delay, and perhaps delay indefi- closures. as a way to kill the bill. nitely this bill. We will, going forward, This amendment will fully offset the cost of Similarly, with regard to mortgage take the good parts of it and incor- its tax provisions in two ways. First, by raising fraud—and by the way, this is through porate it. Had they been substantially $8 billion through FY 2018 by requiring bro- the cities. If you think that the cities offered seriously before, they would kers to report their customer’s basis in securi- are going to give out money to rapists, have been adopted. ties transactions, and second, by raising $3.2 worry about it. Please, let’s not fall for a partisan billion through FY 2018 by delaying, until I would be prepared, if this would ploy and kill a good bill. 2010, new rules allocating interest expenses have been put forward in an orderly Mr. VAN HOLLEN. Speaker, I rise in sup- between foreign and domestic sources. way so we could vet it and not have un- port of the second amendment to the Amer- Madam Speaker, I am proud to stand today intended consequences as we did with ican Housing Rescue and Foreclosure Preven- in support of the second amendment to The the last recommit on a bill from our tion Act of 2008. American Housing Rescue and Foreclosure committee, we could have accepted it. Today, one quarter of subprime adjustable- Prevention Act of 2008 and I urge my col- As we go forward, and let me say fur- rate mortgages are delinquent by 90 days or leagues to join me. ther in conference with the Senate, more. As a consequence, during 2007, fore- Mr. DINGELL. Mr. Speaker, this legislation yes, I think we ought to make it ex- closure proceedings were initiated on about represents a fair, common sense solution that plicit that people with mortgage fraud 1.5 million U.S. homes. The Federal Reserve will allow homeowners to stay in their homes don’t get it, as well as certain kinds of has projected that the rate of foreclosures will and help stabilize the housing market. I would sex offenders. Yes, I think we can do grow even higher in 2008. like to extend my gratitude to Chairman FRANK these things, and we will do them going We know that many of these foreclosures for his hard work on this legislation, which will forward. are unavoidable. There are cases where in- be of critical importance in Michigan, where But to take it now with a ‘‘prompt- vestors choose foreclosure because a prop- there are thousands of homeowners in danger ly,’’ designed to kill the bill, and it will erty’s value has depreciated significantly, or a of foreclosure. I am especially pleased that in fact undo, take back the veterans’ borrower’s personal circumstances have this bill includes legislation which I cospon- preferences we gave yesterday, and to changed. And, many times, as has recently sored that would provide up to $300 billion in new loan guarantees to help refinance at-risk use disabled veterans and to use con- become alarmingly prevalent, a borrower was borrowers into viable mortgages. In addition, cern for the law as a cover to kill a bill put into a loan inappropriate for their cir- this legislation includes important provisions for which the votes do not exist to kill cumstances. But, if a foreclosure is prevent- that expand homeownership opportunities for it is the wrong way to go. able, and the borrower wants to stay in the home, the economic argument for trying to veterans, seniors, and first-time homebuyers. We have amended this bill. Nine This legislation will help both homeowners avolid foreclosure is strong. amendments were accepted in com- and lenders, but this is no bailout. Lenders Foreclosures impose high legal and admin- mittee. None of these were offered. Had who participate will have to take a loss, but istrative costs. Foreclosures can destabilize they been, they would have substan- their losses under this program will be far less communities, reduce area property values and tially been accepted, and they can be than if these properties go into foreclosure. lower municipal tax revenues. And, at the na- accepted going forward. But you have Borrowers who realize a profit when they sell tional level, foreclosures add to the stock of seen, my colleagues, what has gone on their home must return some of that profit to homes for sale, increasing downward pressure here. Send this back to committee, we the government. The United States provided on home prices, which affects the broader have to go back to committee. We have similar leadership during the New Deal using rules to deal with. You have a crowded economy. a program run by the Home Owners’ Loan In the past, mortgage defaults were usually agenda in the committee. You will not Corporation, HOLC. Much like the HOLC, this triggered by a borrower’s life event, such as see this bill again probably for weeks, program stands to save millions of homes the loss of a job, serious illness or injury, or and we will again have these tactics. from foreclosure at a minimum cost to the tax- The gentleman from Georgia is going divorce. But the widespread decline in home payers. to raise the point that it can come out prices we are witnessing today is a relatively I would especially like to thank Chairman the next day. It cannot. The rules of new phenomenon and lenders, servicers and FRANK for his assistance in securing passage the House do not allow it. And anyone policymakers will have to develop new strate- of a provision important to the residents of who thinks you are going to get unani- gies to meet this new challenge. Parkview Apartments in Ypsilanti, Michigan. I mous consent from this group to waive To be effective, our approach must closely have been working for four years now to try to four and five rules is not paying atten- target the borrowers at the highest risk of fore- facilitate the transfer of this property to Ypsi- tion. After we just had two votes on an closure while avoiding programs that give bor- lanti Housing Authority. Chairman FRANK and appeal of a ruling, a frivolous appeal, rowers, who can make their payments, an in- the staff of the Financial Services Committee and we get an appeal of the appeal be- centive to default. have been instrumental in these efforts, which cause people didn’t like the wording on Th American Housing Rescue and Fore- are designed to clarify Congressional intent re- the board, you tell me if you think we closure Prevention Act will address these garding certain properties that entered the De- are going to get serious legislative ef- problems. The bill’s second amendment con- partment of Housing and Urban Development, forts. tains several housing-related tax provisions re- HUD, property disposition process prior to the cently reported by the Ways and Means Com- b 1145 enactment of the Deficit Reduction Act, DRA, mittee as part of the Housing Assistance Tax but where the initial proposed disposition was So, yeah, I want veterans preferences Act. delayed. in the bill. Going forward, we can ad- The amendment creates a refundable tax While I believe that Parkview is already sub- dress this. But Members who are wor- credit of up to $7,500 for first-time home- ject to the grandfathering provision of the ried about some kind of ad long before buyers that would serve as an interest-free DRA, this provision clarifies that such prop- your election, the sensible parts of this loan, and provides an additional standard de- erties should be considered ‘‘pre-DRA’’ prop- will be embodied in the bill. You will duction in 2008 of up to $350 for individuals erties, and that HUD should proceed with its have a chance to vote to protect and $700 for couples for state and local prop- prior disposition contracts as to those prop- against mortgage fraud, et cetera. But erty taxes. It authorizes an additional $10 bil- erties. This provision is one of many that was vote for this today. lion in taxexempt bonds that would be used to included in legislation that passed the House And as the gentleman from Arizona refinance subprime loans, finance the con- last year, and is now being included in this bill made clear, he doesn’t like the bill. struction of low-income rental housing, and as part of a comprehensive housing package. And I understand the problem the support loans to first-time homebuyers. This legislation is of the utmost importance to President has. The administration To assist our men and women in uniform, the Congress, and it is my hope and expecta- can’t decide whether it wants to sign many of whom have put themselves in harms tion that it will soon be enacted into law. or veto. There are internal debates, so way in service to their country, the amend- Mr. DONNELLY. Mr. Speaker, I rise in it falls to our Republican colleagues to ment adds provisions from a measure ap- strong support of H.R. 3221, The Foreclosure

VerDate Aug 31 2005 03:48 May 09, 2008 Jkt 069060 PO 00000 Frm 00009 Fmt 4634 Sfmt 9920 E:\CR\FM\K08MY7.019 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3198 CONGRESSIONAL RECORD — HOUSE May 8, 2008 Prevention Act of 2008 and the package on stands to lose over $860 million in property avoid the potentially greater losses associated the floor today that will provide much-needed values. with unloading a foreclosed property. Mean- relief to homeowners at risk of foreclosure However, H.R. 3221 is a comprehensive while, participating homeowners could remain across the country. package that can provide relief to these fami- in their home, but must repay the Federal The collapse of the mortgage market that lies and our communities in a variety of ways. Government a percentage of the value of the has unraveled over the last year has not only Provisions in this bill reform and modernize home if they sell or refinance again. impacted homebuyers who entered into non- the Federal Housing Administration (FHA) as The bill provides much needed measures to traditional mortgage products that they now well as government sponsored entities Fannie modernize the FHA, allowing expanded oppor- find they are unable to repay, but has also re- Mae and Freddie Mac. These programs allow tunities for families to secure affordable loans verberated throughout the economy. We must for stability in the housing market and by without having to turn to subprime lenders. act with necessary urgency and pass the strengthening their loan limits and regulations, The legislation also increases the Veterans package before us today. they can serve as a safer alternative to the Administration home loan guarantee limit, al- My home State of Indiana has been signifi- riskier subprime loans we have recently seen. lowing our veterans to receive the dignified cantly impacted by this foreclosure crisis, The American Housing Rescue and Fore- homeownership opportunities they deserve for which is contributing to an ongoing economic closure Prevention Act of 2008 also includes a honoring us with their service; reforms Gov- downturn. Our State has lost 27,000 jobs in tax benefit for first-time homebuyers as well as ernment Sponsored Enterprises through the manufacturing industry since 2000. Addi- an additional credit on property taxes for exist- strengthened regulation, while raising GSE tionally, in 2007, 53,000 Indiana homes re- ing homeowners who claim the standard de- loan limits for homes in high-cost areas; and ceived foreclosure notices. This number is up duction. These measures will help revive the encourages mortgage servicers to readjust at- 74 percent from the number of notices in housing market and get our sluggish economy risk mortgages by removing the threat of law- 2005. That means that 53,000 families in my moving in the right direction. suit. State+ may be forced to move out of their This bill also creates a voluntary FHA initia- This legislation would help remove some of homes, pull their children out of school and tive that provides mortgage refinancing assist- the excess housing inventory by offering a re- find another place to live. Mr. Speaker, many ance to allow families to stay in their homes fundable tax credit for first-time homebuyers. It of these people are not reckless speculators, while also strengthening the housing market. would also provide additional mortgage rev- but rather hard-working families struggling to This voluntary plan would require lenders to enue bonds for states to refinance subprime make ends meet. write-down some of the existing mortgage in loans, and help prevent soldiers from being This package allows lenders, investors and order to qualify for FHA backing, and would unfairly penalized for their service by providing homeowners to voluntarily sit down at a table require borrowers to return portions of any fu- more time to get their finances in order when and work out a plan to rescue mortgages that ture profits on the house to the government in they return from service before a lender could may be on the verge of foreclosure. It takes a order to prevent foreclosure. It is important to start foreclosure. A final important piece of this legislation responsible approach to provide rescue assist- note that under H.R. 3221, only owner-occu- would simply protect the right of States and ance to those who most need it without en- pied homes facing foreclosure can qualify for cities to regulate their own foreclosure proc- couraging irresponsible behavior. this mortgage assistance, and speculators, in- ess. Some have argued that national banks Mr. Speaker, I am also glad to see that this vestors, and second-homeowners are not eli- legislation includes a bill I introduced to raise and financial institutions should be exempt gible. This provision represents a compromise from these rules. I, however, believe it is the loan limits on FHA Title I-insured manufac- by all participating parties and can keep peo- right of States and cities to have their own re- tured home loans which have not been ad- ple in their homes and improve surrounding quirements and enforce their own rules justed since 1992, allowing more people to communities. throughout the foreclosure process. enter into a mortgage that they can afford on I support the passage of H.R. 3221, Amer- Mr. Speaker, I was very disappointed to a high-quality affordable home. ican Housing Rescue and Foreclosure Preven- learn of the Bush Administration’s threat to Also, this comprehensive package includes tion Act of 2008, and I urge my colleagues to veto this legislation, because I believe that it a number of tax incentives to help prospective join me. is important for us to act now to provide relief and current homeowners. It provides a $7,500 Mr. UDALL of Colorado. Mr. Speaker, I rise to America’s stressed homeowners. It is my tax credit to eligible families to put towards in support of this legislation. understanding that Federal Reserve Chairman their downpayment on their first home. Exist- In most circumstances, I consider it counter- Bernanke and Treasury Secretary Paulson, as ing homeowners who do not itemize their tax productive and not in the best interest of the well as other Administration officials, had returns for 2008 would be eligible to deduct up American people for the Federal Government worked with Chairman FRANK to shape provi- to $700 for property tax relief at a time they to intervene in the free market process. How- sions of this legislation, so this change of need it most. ever, in certain exceptional times, I believe it heart is doubly regrettable. I hope that the Mr. Speaker, I want to thank Chairman is the duty of the Federal Government to act President will change his mind and sign this FRANK for his continued leadership in respond- for the greater good of our Nation. And I think needed legislation when it reaches his desk. ing to the housing and economic crisis and I we are experiencing such an exceptional mo- This legislation has been carefully crafted to urge all my colleagues to pass the Housing ment in American history. safeguard against fraud, corporate giveaways Rescue Package today. The provisions of this legislative package and speculator abuse. And as concerned as I Mr. ETHERIDGE. Mr. Speaker, I rise in sup- will help stabilize the downward trend in the was that the Federal Reserve had to devote port of H.R. 3221, American Housing Rescue housing industry and overall economy, and $29 billion to prevent the collapse of invest- and Foreclosure Prevention Act of 2008, and prevent that trend from spiraling out of control. ment bank Bear Stearns, I am equally con- amendments to the bill. This bill is a critical The danger is real. Just last month, the Pew cerned about the Federal Government taking step towards stabilizing our housing market, Charitable Trusts released a study that fore- action to rescue the housing market. However, and providing assistance to thousands of cast one in 25 homeowners in my home state without the stability that the Fed provided the Americans facing foreclosure. of Colorado will be in foreclosure within the investment banking industry, experts tell us There are grave problems facing our current next two years if Congress does not act now that the bottom may well have fallen out of our housing market and economy. Decreasing to curb this impending disaster. The national economy. And it appears the same is true for home values and lack of available credit are forecast of homeowners in foreclosure within our housing market—without the stability this damaging the market, and skyrocketing mort- the next two years—one in 33—is only slightly legislation will help provide, it may not have gages have led thousands of families to face less discouraging. If we stand by and do noth- the chance to correct itself and, eventually, re- the frightening prospect of foreclosure. In my ing, as some have suggested, the damage to bound. Main Street deserves the same atten- state of North Carolina alone, PEW Charity the overall American economy could be dev- tion as Wall Street. Trusts and the Center for Responsible Lend- astating. For these reasons, Mr. Speaker, I urge my ing estimate there will be 53,254 foreclosures First and foremost, this bill will help Amer- colleagues to join me in supporting all three in 2008 and 2009. Not only does foreclosure ican families at risk of foreclosure to stay in components of this legislation. strike at the heart of these families’ financial their homes by allowing the Federal Housing Mr. LANGEVIN. Mr. Speaker, I rise in strong stability, but unfortunately the damage spreads Administration (FHA) to guarantee qualified re- support of the American Housing Rescue and across all of our communities. The same study financed loans. To do so, however, home- Foreclosure Prevention Act, which will help cit- shows that over 330,000 homes in North owners and their lenders must agree to sac- ies and towns, but most importantly, individ- Carolina will be devalued by the spillover im- rifice. Lenders could recover no more than 85 uals and families that have been adversely im- pact of the foreclosures, and North Carolina percent of a property’s current value, but could pacted by the foreclosure crisis.

VerDate Aug 31 2005 03:48 May 09, 2008 Jkt 069060 PO 00000 Frm 00010 Fmt 4634 Sfmt 9920 E:\CR\FM\A08MY7.048 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3199 In my home state of Rhode Island, this ty are currently in default. And the San This legislation will allow FHA to insure problem is particularly acute. Foreclosures Bernardino-Riverside area in the Inland Em- more affordable fixed rate loans for borrowers have increased by 20 percent in the last few pire, ranked #2 nationwide in foreclosure fil- who are facing financial troubles. It will mod- months, and it is our most vulnerable commu- ings this year. ernize the FHA and reform the GSEs while nities that have been disproportionately af- Everyone pays when there are foreclosures! providing crucial liquidity to our mortgage mar- fected. Crime increases, home values decline, kets now, and will also strengthen regulation Last weekend I teamed with Rhode Island schools are affected, and cities run deficits and oversight for the future. Housing—a nonprofit organization dedicated which impacts revenues for local police, fire, The mortgage collapse has sent to keeping housing affordable—to hold a work- and social services. shockwaves through our entire economy and it shop for those facing foreclosure. While we H.R. 5818, the Neighborhood Stabilization is clear that stabilizing the housing market is helped many local families, it is time for the Act which passed today, will help stabilize a critical step in strengthening our economy. Federal Government to do its part on a na- communities harmed by empty homes closed I am appalled that President Bush refuses tional scale. by foreclosure. It will provide loans and grants to help American homeowners despite being I commend Chairman FRANK and Chairman to States to buy and rehabilitate these prop- perfectly willing to rescue Bear Stearns just a RANGEL for their leadership in bringing this erties and restore home values in neighbor- few months ago. It is reckless for the White critical measure to the floor. I urge my col- hoods. House to threaten to veto this housing pack- leagues to support this bill. The broader housing package is also impor- age that will make it easier for those in trouble Mr. CARSON of Indiana. Mr. Speaker, I rise tant for many reasons: FHA Stabilization will to keep their homes and will help stabilize our today in strong support of H.R. 3221, the allow lenders to refinance mortgages with economy. American Housing Rescue and Foreclosure FHA-insured loans to keep families in their I urge the President to support this bill. Prevention Act of 2008. This package is a homes. FHA Modernization increases FHA With this legislation, we can begin to repair comprehensive response to the current hous- loan limits permanently to help high cost hous- the economy, restore confidence in the mar- ing crisis that has left many honest, hard- ing areas like the Inland Empire. The $7,500 kets, limit the damage to families and neigh- working Americans in financial distress. Tax Credit for Homebuyers will help first-time borhoods, and help build new affordable hous- H.R. 3221 is especially important to Hoo- homebuyers purchasing their first home. Low- ing. This bill is good for hard working Amer- siers who have struggled as our state consist- income Housing Credit Reform modernizes ican families. We owe it to them to get it done. ently ranks among the top ten for foreclosures the credit to increase affordable housing in un- Mr. MCDERMOTT. Mr. Speaker, we’re here nationally. The district I represent, which in- derserved neighborhoods. The increase in today to take a stand on behalf of low-income cludes most of the City of Indianapolis, cur- Mortgage Revenue Bonds will allow states to and vulnerable Americans who have been left rently has around 17,000 foreclosed properties issue more bonds for housing and use the out, shut out, dropped out or forced out of any and around 7,200 in the preforeclosure phase. proceeds to refinance subprime mortgages. chance at decent, affordable housing because My constituents need the assistance available Finally, my amendment to the financial serv- of the predatory economic policies of this Ad- in this bill urgently. ices committee bill, H.R. 5830, will promote in- ministration. This package includes key legislation such person housing counseling to reach home- Under the leadership of Ways and Means as Government Sponsored Enterprise reform, owners in default. This is more effective than Chairman CHARLES RANGEL, we have bipar- Federal Housing Administration modernization, sending a letter in the mail and will help pre- tisan legislation before us today that finally re- the Housing Assistance Tax Act and H.R. vent many foreclosures. sponds to the needs of the American people. 5830, a critical bill reported out of the Finan- I urge my colleagues to support this housing For too long, too many disadvantaged and cial Services Committee last week that will stimulus package. This is the right thing to do vulnerable Americans have been forgotten, ig- help borrowers at risk of foreclosure refinance and will keep people in their homes. nored or under-served when it came time to into more stable loans. These bills will not only Mr. MILLER of California. Mr. Speaker, I provide economic assistance. help borrowers now, but strengthen the mort- rise in strong support of this legislation to help For the first time in a long time we have leg- gage lending market moving forward. homeowners and families affected by the islation that recognizes and addresses the In order to ensure borrowers would be housing crisis. unique housing needs and circumstances of aware of the important FHA refinancing oppor- This past year has been one of the most dif- the working poor, and other vulnerable Ameri- tunity under Chairman FRANK’s bill, H.R. 5830, ficult ever for middle class and low-income cans. I introduced an amendment in the Financial homeowners because of the collapse of the We provide States and cities with incentives Services Committee which stated that no less credit markets, the weak economy, and high to ensure that low-income housing options re- than 2 percent of funds available for coun- energy prices. It is clear to all that what began main available to those who need it most. seling in the bill would be targeted towards no- as a housing crisis has become a crisis for the We increase the allocation of Federal low- tification to individuals who are eligible to refi- entire economy and the entire country. income housing tax credits and expand the nance their mortgage under the bill’s provi- The housing crisis put a strain on our bank- authority of States to issue tax-exempt bonds sions. ing system, and that has sent shock waves to help finance affordable housing. Further, we know that African American throughout the credit markets, for cars, for stu- Section 103 includes language to ensure mortgage consumers were 3.7 times more dent loans, and for all consumers. American that Federal assistance that helps vulnerable likely than white borrowers to receive families in all walks of life are feeling the eco- populations, like the elderly, the sick, and vet- subprime loans and Latinos were 2.3 times nomic strain. erans, does not reduce the value of the Fed- more likely. In order to help those dispropor- Millions of families across the Nation have eral low-income housing tax credits used to fi- tionately affected by these high-cost loans, my lost or are at risk of losing their homes. Fore- nance affordable rental housing. amendment further instructed the Secretary to closures in my congressional district, Solano Section 104 allows for consideration of give preference to organizations that have a County and Contra Costa County, are among whether an affordable housing development proven track record for outreach within minor- the highest in the country. People are looking employs technology and practices to improve ity communities in allocating these notification to Congress for help. its energy efficiency, when Federal low-income resources. I am pleased the amendment re- It is critical that we stabilize the housing housing tax credits are allocated to affordable ceived bipartisan support and was incor- market and reduce the number of homes housing developments. porated into this crucial piece of legislation. going into foreclosure. Section 104 also clarifies that students who I believe H.R. 3221 is the right approach to The bill we are considering today is urgently were formerly in foster care are not precluded this complex housing crisis. I thank Chairman needed. It is designed to responsibly rescue from renting affordable housing financed by FRANK and Chairman RANGEL for their hard those who are facing foreclosure. It responds Federal low-income housing tax credits. and thoughtful work on this bill and I look for- directly to the current crisis, but it also estab- This legislation touches the lives of real ward to seeing this legislation move forward. lishes a system to try to prevent a similar cri- Americans who have been left behind or out- Mr. BACA. Mr. Speaker, I rise to support sis in the future. right forgotten for too long. this bipartisan housing stimulus package. This bill will provide mortgage refinancing I urge my colleagues to support the legisla- The foreclosure crisis is hurting communities assistance to keep families from losing their tion. all across the Nation, and my district has been homes, protect neighboring home values, and If we fail to meet the needs of vulnerable especially impacted: 4,523 families in my dis- help stabilize the housing market. The federal Americans, then we will fail to live up to our trict have already lost their homes this year. government will step in to insure $300 billion responsibility of governing on behalf of all peo- Over 11,000 families in San Bernardino Coun- in new mortgages. ple.

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00011 Fmt 4634 Sfmt 9920 E:\CR\FM\A08MY7.038 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3200 CONGRESSIONAL RECORD — HOUSE May 8, 2008 Mrs. CAPPS. Mr. Speaker, I rise today in mortgage crisis, prevent further lending driven housing legislation designed to reduce strong support of H.R. 5818, the Neighbor- abuses and increase federal oversight of the foreclosures, to help families avoid foreclosure hood Stabilization Act, and H.R. 3221, the mortgage industry. in the future, and to alleviate the negative im- American Housing Rescue and Foreclosure H.R. 3221 expands the Federal Housing Ad- pacts of foreclosures on property values and Prevention Act. ministration’s role in preventing foreclosures the national economy. These bills come at a critical time for Amer- by expanding refinancing loan guarantees for I am pleased to support this legislation, ica—and especially for my constituents on the at-risk homeowners. Today, families are facing which would create a new voluntary program Central and South Coasts of California. That is variable interest rates, hidden fees, early pay- within FHA that would offer lenders an alter- why I am extremely disappointed that the ment penalties, but with enactment of the native to foreclosure. This approach, which is President has threatened to veto them both. Foreclosure Prevent Act, the government will driven by the lenders’ desire to save costs as- They include much-needed reforms of the be there to provide relief and counseling. It sociated with foreclosing on property, forces Federal Housing Administration, Fannie Mae, also increases oversight to ensure regulators the lender, the borrower, and the government and Freddie Mac, and usher these agencies have the tools to prevent the next crisis. It ex- to all make sacrifices to ensure families have into the 21st century. pands housing counseling and consumer pro- the ability to stay in their homes. While some But they also accomplish three tasks that tections. The bill also establishes an afford- have criticized this initiative as a government are vital to the housing market and economy able housing trust fund to provide assistance bailout of those who have made poor financial of the Central and South Coasts. for low income households. The bill even choices, in my view, it represents an innova- First, the American Housing Rescue and makes it harder to foreclose on the homes of tive, market-driven way to shore up the hous- Foreclosure Prevention Act makes permanent our returning troops from Iraq and Afghani- ing market and the overall economy. the temporary loan limit increases contained in stan. The measure would also create a $7,500 the Economic Stimulus Act of 2008. This bill also contains important language to tax incentive for first time home buyers and Mr. Speaker, I cannot stress enough how my district and my hometown of Malden, Mas- other important tax incentives while simulta- vital this provision is for my district. sachusetts. The tenants of the Heritage Apart- neously modernizing the FHA, Freddie Mac, Median home prices in Ventura, Santa Bar- ments face an uncertain future, with an HUD and Fannie Mae and increasing the loan limit bara, and San Luis Obispo Counties are well affordability contract expiring soon. The ten- for FHA and Veterans’ Administration loans. above the national average, and our families ants are facing possible displacement once an I am hopeful that the Senate will act quickly are truly struggling to obtain affordable hous- outstanding HUD mortgage is fully paid in a on this well written bill and that it will be ing. few years. The development is also in need of signed into law by the President. Mr. HOLT. Mr. Speaker, I rise today in sup- Second, this bill will stem foreclosures by major renovations and upgrades that simply port of H.R. 3221, the Foreclosure Prevention creating a voluntary mortgage refinancing pro- cannot be delayed. Unfortunately HUD is fail- gram that allows families to stay in their Act. ing to ensure that the development remains At the end of last year, home foreclosure homes. affordable and livable by placing burdensome rates rose to the highest level in 20 years. Under this program, the Federal Housing restrictions on prepayment of the outstanding Every day more than 7,000 people file for Administration has the authority to refinance mortgage and subsequent transfer to a new foreclosure, and it is predicted that predatory up to $300 billion in imperiled mortgages. owner who is willing to finance the renova- lending practices and sub prime mortgages With median home prices in Santa Barbara tions. will cause one in every thirty-three home- County alone declining almost 30 percent in Language in this bill would allow income-eli- owners to foreclose on their mortgages in the the past year alone, it is undoubtedly in the gible residents to qualify for enhanced housing next 2 years. best interests of lenders to participate in this vouchers following the prepayment of the HUD This is not an issue that is merely affecting program. mortgage and the property transfer and directs those who have defaulted on their mortgages Lastly, the Neighborhood Stabilization Act HUD to approve such actions. I want to thank and their lenders; it is having a ripple effect establishes a loan and grant program for the the Chairman of the Financial Services Com- throughout the economy. It has resulted in a purchase and rehabilitation of foreclosed mittee (Mr. FRANK) for his assistance in ensur- nationwide decrease in housing prices of 12.4 homes. ing that this important provision is included in percent, and 10 percent of Americans now Just this week one of my hometown news- this housing bill. owe more money on their mortgages than papers, the Ventura County Star, reported on Today, with this legislation, we are taking their homes are worth. It has caused a de- the negative impact that foreclosed homes steps to revitalize our communities for a better crease in consumer confidence and cor- have on communities. tomorrow. I strongly urge this House to vote to responding decrease in consumer spending. It Lower home values, increased crime, and approve this bill. has contributed to a steep increase in job safety hazards are just a few of the con- Mr. SKELTON. Mr. Speaker, over the past losses in housing related industries such as sequences that can result from foreclosure. months, economic conditions in our country manufacturing, construction and related indus- This bill prevents neighborhood decline by have soured. Particularly troublesome to our tries. These job losses combined with the loss providing targeted assistance to state and Nation’s economic engine are skyrocketing of consumer confidence could reduce eco- local governments. home foreclosures and loan delinquency rates, nomic activity by over 150 billion dollars in Mr. Speaker, American families need help, which have risen over 85 percent in the past 2008. and that is exactly what is provided by the year. This is a crisis, and it is time, it is past time, housing bills on the floor today. Foreclosures and delinquencies are harmful that the Federal Government step in and help I urge my colleagues to support these bills, to borrowers and lenders, but they also stifle those that are suffering. H.R. 3221 would pro- and I urge the President to work together with economic growth, shake consumer con- vide mortgage refinancing assistance to keep Congress in addressing the needs of the hard- fidence, and lower home values for those who families in their homes, protect neighboring working families in America who want to keep live near foreclosed properties. home values, and help stabilize the housing their homes. While borrowers in our country must cer- market. It would expand the Federal Housing Mr. MARKEY. Mr. Speaker, I rise today in tainly bear a great deal of responsibility when Administration to help borrowers who are at support of H.R. 3221, the American Housing it comes to financial planning, the government risk of losing their homes to refinance into Rescue and Foreclosure Prevention Act of can and must carefully examine the impact of lower-cost government-insured mortgages that 2008. soaring mortgage foreclosures on the whole they can afford to repay. H.R. 3221 ensures This vital legislation comes at a time of U.S. economy and also thoroughly review reg- that this will be done responsibly, by requiring record-breaking gas prices, double digit in- ulatory oversight with respect to the mortgage lenders and mortgage investors to take signifi- creases in food prices and a weakening econ- business. cant losses in order to participate in this pro- omy. On top of all these struggles, Americans I have been pleased that the House has gram and by requiring borrowers to share a now face a crisis at home and in their commu- been active in addressing the mortgage crisis, portion of any resale of a refinanced home nities in the form of rising property fore- voting last year to strengthen consumer pro- with the government. closures. In some parts of the country, neigh- tections against risky loans and to overhaul H.R. 3221 also provides 11 billion dollars in borhoods are littered with ‘‘for sale’’ signs, and the Federal Housing Administration (FHA), tax incentives to help Americans purchase a many families are struggling to keep up with Freddie Mac, and Fannie Mae, among other first home or hold onto the ones that they al- their mortgage payments. The legislation we things. Under the leadership of Financial Serv- ready have. This includes tax credits to first- are debating on this floor today will empower ices Committee Chairman BARNEY FRANK, the time homebuyers, an additional 10 billion dol- communities to respond to the current home House is again poised to pass critical, market- lars in mortgage revenue bonds for states,

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00012 Fmt 4634 Sfmt 9920 E:\CR\FM\A08MY7.033 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3201 and improves access to low-income housing. In closing, Mr. Speaker, Americans have The vote was taken by electronic de- It also includes a provision that I wrote to been hit hard both by the current housing cri- vice, and there were—ayes 210, noes 216, allow homeowners who currently do not sis and by the broader credit crunch. We can not voting 7, as follows: itemize their Federal tax returns to take an ad- delay action no longer. I therefore urge my [Roll No. 298] ditional standard deduction for the state and colleagues to support H.R. 3221, and espe- AYES—210 local property taxes that they pay. The Tem- cially the incorporated language from H.R. porary Tax Relief Act creates an additional Aderholt Frelinghuysen Murphy, Patrick 5579. Akin Gallegly Murphy, Tim standard deduction of $350 for single filers PARLIAMENTARY INQUIRIES Alexander Garrett (NJ) Musgrave and $700 for joint filers for state and local real Mr. WESTMORELAND. Parliamen- Bachmann Gerlach Myrick property taxes paid or accrued. This legislation tary inquiry. Bachus Giffords Neugebauer will complement efforts that have already been Barrett (SC) Gilchrest Nunes The SPEAKER pro tempore (Mr. Barrow Gillibrand Pearce implemented on the state and federal level to WEINER). State your parliamentary in- Bartlett (MD) Gingrey Pence help address the housing crisis. quiry. Barton (TX) Gohmert Peterson (PA) I am proud that several organizations in my Mr. WESTMORELAND. Mr. Speaker, Biggert Goode Petri home state of New Jersey have stepped in to Bilbray Goodlatte Pickering isn’t it true that if this motion passed, Bilirakis Granger Pitts provide services and assistance to New that it would be referred back to the Bishop (UT) Graves Platts Jerseyans who are at risk of losing their committee from whence it came, and Blackburn Hall (TX) Poe homes. One of the shining examples of this is that it could be reported back the next Blunt Hastings (WA) Porter Boehner Hayes Price (GA) Legal Services of New Jersey. LSNJ created legislative day? Bonner Heller Pryce (OH) the Anti-Predatory Lending Project 5 years The SPEAKER pro tempore. As the Bono Mack Hensarling Putnam ago to provide legal services to borrowers vic- Chair reaffirmed on November 15, 2007, Boozman Herger Radanovich timized by predatory lenders. LSNJ’s hard- Boustany Hill Ramstad at some subsequent time, the com- Brady (TX) Hobson Regula working lawyers have helped almost 500 fami- mittee could meet and report the bill Broun (GA) Hoekstra Rehberg lies who were facing foreclosure receive legal back to the House. Brown (SC) Hulshof Reichert assistance. I would like to commend LSNJ for Mr. FRANK of Massachusetts. Mr. Brown-Waite, Hunter Renzi the work that they have done on behalf of the Ginny Inglis (SC) Reynolds Speaker, parliamentary inquiry. Buchanan Issa Rogers (AL) residents of my central New Jersey district The SPEAKER pro tempore. The gen- Burgess Johnson (IL) Rogers (KY) and for all New Jerseyans who have been at tleman will state his parliamentary in- Burton (IN) Johnson, Sam Rogers (MI) risk of losing their homes. quiry. Buyer Jordan Rohrabacher H.R. 3221 and the companion bill that the Mr. FRANK of Massachusetts. The Calvert Keller Ros-Lehtinen Camp (MI) King (IA) Roskam House of Representatives will be considering, committee and the House are con- Cannon King (NY) Royce H.R. 5818, the Neighborhood Stabilization Act strained by a number of rules that Cantor Kingston Ryan (WI) are a bold step towards addressing the mort- cause substantial numbers of days to Capito Kirk Sali Carney Kline (MN) Saxton gage crisis and the resulting economic down- elapse. Does this motion, if it passes, in Carter Knollenberg Scalise turn, and I urge my colleagues to support any way empower us to forget those Castle Kuhl (NY) Schmidt them. rules of the House which require a cer- Cazayoux LaHood Sensenbrenner Mr. KANJORSKI. Mr. Speaker, I rise in sup- tain number of days in committee, cer- Chabot Lamborn Sessions port of the amendments to H.R. 3221, the Coble Lampson Shadegg tain number of layovers, an announce- Cole (OK) Latham Shays American Housing Rescue and Foreclosure ment of a markup, a delay before the Conaway LaTourette Shimkus Prevention Act of 2008, which the House is bill is reported, the Rules Committee, Crenshaw Latta Shuster considering today. This urgently needed legis- Cubin Lewis (CA) Simpson et cetera? Does this motion in any way Culberson Lewis (KY) Smith (NE) lation makes a number of surgical reforms to reduce any of those timetables? Davis (KY) Linder Smith (NJ) help address the problems we are currently The SPEAKER pro tempore. As the Davis, David LoBiondo Smith (TX) facing in our Nation’s housing markets. Chair stated on November 15, 2007, an Davis, Tom Lucas Souder In particular, I am pleased that one of the Deal (GA) Lungren, Daniel Stearns order of recommital does not nec- Dent E. Sullivan amendments that we will consider today con- essarily waive any rules, but the Chair Diaz-Balart, L. Mack Tancredo tains H.R. 5579, the Emergency Mortgage cannot render an advisory opinion on Diaz-Balart, M. Manzullo Terry Loan Modification Act of 2008. I have worked what points of order might lie. Donnelly Marchant Thornberry with the gentleman from Delaware (Mr. CAS- Doolittle Marshall Tiahrt Mr. WESTMORELAND. Parliamen- Drake McCarthy (CA) Tiberi TLE) to refine his original proposal and intro- tary inquiry, Mr. Speaker. Dreier McCaul (TX) Turner duce a new bill. We also held a productive The SPEAKER pro tempore. The gen- Duncan McCotter Upton hearing on H.R. 5579 before the House Finan- tleman from Georgia will state his par- Ehlers McCrery Walberg cial Services Capital Markets Subcommittee Ellsworth McHenry Walden (OR) liamentary inquiry. Emerson McHugh Walsh (NY) and made a number of revisions to the bill be- Mr. WESTMORELAND. Mr. Speaker, English (PA) McIntyre Wamp fore bringing it to the floor today. isn’t it true if you have 218 votes you Everett McKeon Weldon (FL) During the hearings on H.R. 5579 and can do just about anything you want to Fallin McMorris Weller throughout its legislative development, I have Feeney Rodgers Westmoreland in this House? Ferguson McNerney Whitfield (KY) been clear about the intended goals of this The SPEAKER pro tempore. The gen- Flake Mica Wilson (NM) legislation: to provide servicers a safe harbor tleman has not stated a proper par- Forbes Miller (FL) Wilson (SC) from investor lawsuits. Servicers, in turn, liamentary inquiry. Fortenberry Miller (MI) Wittman (VA) Fossella Miller, Gary Wolf would have to meet prescribed duties and Without objection, the previous ques- Foxx Mitchell Young (AK) enter into a ‘‘qualified loan modification’’ or tion is ordered on the motion to recom- Franks (AZ) Moran (KS) Young (FL) ‘‘workout plan’’ which the legislation defines. It mit. is my firm belief that with such an arrange- There was no objection. NOES—216 ment in place, servicers will more readily as- The SPEAKER pro tempore. The Abercrombie Boucher Cooper Ackerman Boyd (FL) Costa sist troubled homeowners and will have more question is on the motion to recommit. Allen Boyda (KS) Costello tools at their disposal to prevent defaults and The question was taken; and the Altmire Brady (PA) Courtney foreclosures. Speaker pro tempore announced that Andrews Braley (IA) Cramer Moreover, I would like to be clear about the noes appeared to have it. Arcuri Brown, Corrine Crowley Baca Butterfield Cuellar what the bill does not intend. H.R. 5579 does RECORDED VOTE Baird Capps Cummings not intend to create a statutory preference for Mr. SHADEGG. Mr. Speaker, I de- Baldwin Capuano Davis (AL) loss mitigation activities generally, nor does it mand a recorded vote. Bean Cardoza Davis (CA) limit the ability of servicers to pursue the full A recorded vote was ordered. Becerra Carnahan Davis (IL) Berkley Carson Davis, Lincoln scope of available options. In drafting this leg- The SPEAKER pro tempore. Pursu- Berman Castor DeFazio islation we sought to create a bill that honors ant to clause 8 and clause 9 of rule XX, Berry Chandler DeGette the terms of existing contracts while at the this 15-minute vote on the motion to Bishop (GA) Clarke Delahunt same time recognizing that foreclosure is not recommit will be followed by 5-minute Bishop (NY) Clay DeLauro Blumenauer Cleaver Dicks in the best interests of the investor or bor- votes on passage of the bill, and motion Boren Clyburn Dingell rower. to suspend the rules on H.R. 4279. Boswell Conyers Doggett

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00013 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.036 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3202 CONGRESSIONAL RECORD — HOUSE May 8, 2008 Doyle Levin Sa´ nchez, Linda Barrow Herseth Sandlin Pastor Ferguson Latta Renzi Edwards Lewis (GA) T. Bean Higgins Payne Flake Lewis (CA) Reynolds Ellison Lipinski Sanchez, Loretta Becerra Hill Perlmutter Forbes Lewis (KY) Rogers (AL) Emanuel Lofgren, Zoe Sarbanes Berkley Hinchey Peterson (MN) Fortenberry Linder Rogers (KY) Engel Lowey Schakowsky Berman Hinojosa Pomeroy Fossella LoBiondo Rogers (MI) Eshoo Lynch Schiff Berry Hirono Porter Foxx Lucas Rohrabacher Etheridge Mahoney (FL) Schwartz Bishop (GA) Hodes Price (NC) Franks (AZ) Lungren, Daniel Roskam Farr Maloney (NY) Scott (GA) Bishop (NY) Holden Pryce (OH) Frelinghuysen E. Royce Fattah Markey Scott (VA) Blumenauer Holt Rahall Gallegly Mack Ryan (WI) Filner Matheson Serrano Boren Honda Ramstad Garrett (NJ) Manzullo Sali Foster Matsui Sestak Boswell Hooley Rangel Gerlach Marchant Saxton Frank (MA) McCarthy (NY) Shea-Porter Boucher Hoyer Reyes Gillibrand McCarthy (CA) Scalise Gonzalez McCollum (MN) Sherman Boyd (FL) Inslee Rodriguez Gingrey McCaul (TX) Schmidt Gordon McDermott Shuler Boyda (KS) Israel Ros-Lehtinen Gohmert McCotter Sensenbrenner Green, Al McGovern Sires Brady (PA) Jackson (IL) Ross Goode McCrery Sessions Green, Gene McNulty Skelton Goodlatte McHenry Braley (IA) Jackson-Lee Rothman Shadegg Grijalva Meek (FL) Slaughter Granger McHugh Brown, Corrine (TX) Roybal-Allard Shimkus Hall (NY) Meeks (NY) Smith (WA) Butterfield Jefferson Graves McKeon Ruppersberger Shuster Hare Melancon Snyder Capps Johnson (GA) Hall (TX) McMorris Ryan (OH) Simpson Harman Michaud Solis Capuano Johnson, E. B. Hastings (WA) Rodgers Salazar Smith (NE) Hastings (FL) Miller (NC) Space Cardoza Jones (OH) Hayes Mica Sa´ nchez, Linda Smith (NJ) Herseth Sandlin Miller, George Speier Carnahan Kagen Heller Miller (FL) T. Smith (TX) Higgins Mollohan Spratt Carney Kanjorski Sanchez, Loretta Hensarling Miller (MI) Hinchey Moore (KS) Stark Carson Kaptur Herger Miller, Gary Souder Sarbanes Stearns Hinojosa Moore (WI) Stupak Castor Kennedy Schakowsky Hobson Moran (KS) Hirono Moran (VA) Sutton Cazayoux Kildee Hoekstra Murphy, Tim Sullivan Schiff Tancredo Hodes Murphy (CT) Tanner Chandler Kilpatrick Schwartz Hulshof Musgrave Holden Murtha Tauscher Clarke Kind Hunter Myrick Terry Scott (GA) Thornberry Holt Nadler Taylor Clay Klein (FL) Scott (VA) Inglis (SC) Neugebauer Honda Napolitano Thompson (CA) Cleaver Kucinich Issa Nunes Tiahrt Serrano Tiberi Hooley Neal (MA) Thompson (MS) Clyburn Lampson Sestak Johnson (IL) Paul Hoyer Oberstar Johnson, Sam Upton Tierney Conyers Langevin Shays Pearce Inslee Obey Towns Jones (NC) Pence Walberg Cooper Larsen (WA) Shea-Porter Israel Olver Tsongas Jordan Peterson (PA) Walden (OR) Costa Larson (CT) Sherman Jackson (IL) Ortiz Udall (CO) Keller Petri Wamp Costello LaTourette Shuler Jackson-Lee Pallone Udall (NM) Courtney Lee King (IA) Pickering Weldon (FL) Sires (TX) Pascrell Van Hollen Cramer Levin King (NY) Pitts Weller Skelton Jefferson Pastor Vela´ zquez Crowley Lewis (GA) Kingston Platts Westmoreland Slaughter Johnson (GA) Paul Visclosky Cuellar Lipinski Kirk Poe Whitfield (KY) Smith (WA) Johnson, E. B. Payne Walz (MN) Cummings Lofgren, Zoe Kline (MN) Price (GA) Wilson (NM) Snyder Jones (OH) Perlmutter Wasserman Davis (AL) Lowey Knollenberg Putnam Wilson (SC) Solis Kagen Peterson (MN) Schultz Davis (CA) Lynch Kuhl (NY) Radanovich Wittman (VA) Space Kanjorski Pomeroy Waters Davis (IL) Mahoney (FL) LaHood Regula Wolf Speier Kaptur Price (NC) Watson Davis, Lincoln Maloney (NY) Lamborn Rehberg Young (AK) Spratt Kennedy Rahall Watt DeFazio Markey Latham Reichert Young (FL) Stark Kildee Rangel Waxman DeGette Marshall Stupak Kilpatrick Reyes Weiner Delahunt Matheson NOT VOTING—6 Sutton Kind Rodriguez Welch (VT) DeLauro Matsui Campbell (CA) Gutierrez Richardson Tanner Klein (FL) Ross Wexler Diaz-Balart, L. McCarthy (NY) Cohen Loebsack Rush Kucinich Rothman Wilson (OH) Diaz-Balart, M. McCollum (MN) Tauscher Langevin Roybal-Allard Woolsey Dicks McDermott Taylor ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Larsen (WA) Ruppersberger Wu Dingell McGovern Thompson (CA) Thompson (MS) The SPEAKER pro tempore (during Larson (CT) Ryan (OH) Wynn Doggett McIntyre the vote). Members are reminded there Lee Salazar Yarmuth Donnelly McNerney Tierney Doyle McNulty Towns are 2 minutes remaining on this vote. NOT VOTING—7 Edwards Meek (FL) Tsongas Campbell (CA) Jones (NC) Rush Ellison Meeks (NY) Turner b 1216 Cohen Loebsack Ellsworth Melancon Udall (CO) Gutierrez Richardson Emanuel Michaud Udall (NM) Mr. KIRK changed his vote from Engel Miller (NC) Van Hollen ‘‘aye’’ to ‘‘no.’’ ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Eshoo Miller, George Vela´ zquez So the bill was passed. The SPEAKER pro tempore (during Etheridge Mitchell Visclosky Walsh (NY) The result of the vote was announced the vote). Members have 2 minutes re- Farr Mollohan Fattah Moore (KS) Walz (MN) as above recorded. maining to cast their votes. Filner Moore (WI) Wasserman A motion to reconsider was laid on Foster Moran (VA) Schultz the table. b 1206 Frank (MA) Murphy (CT) Waters Watson Giffords Murphy, Patrick f Messrs. KINGSTON and PICKERING Gilchrest Murtha Watt changed their vote from ‘‘no’’ to ‘‘aye.’’ Waxman Gonzalez Nadler PRIORITIZING RESOURCES AND So the motion to recommit was re- Gordon Napolitano Weiner jected. Green, Al Neal (MA) Welch (VT) ORGANIZATION FOR INTELLEC- Green, Gene Oberstar Wexler TUAL PROPERTY ACT OF 2008 The result of the vote was announced Grijalva Obey Wilson (OH) as above recorded. Hall (NY) Olver Woolsey The SPEAKER pro tempore. The un- The SPEAKER pro tempore. The Hare Ortiz Wu finished business is the question on Harman Pallone Wynn suspending the rules and passing the question is on the passage of the bill. Hastings (FL) Pascrell Yarmuth The question was taken; and the bill, H.R. 4279, as amended. Speaker pro tempore announced that NOES—188 The Clerk read the title of the bill. the ayes appeared to have it. Aderholt Brady (TX) Conaway The SPEAKER pro tempore. The RECORDED VOTE Akin Broun (GA) Crenshaw question is on the motion offered by Alexander Brown (SC) Cubin the gentleman from Michigan (Mr. Mr. HENSARLING. Mr. Speaker, I Bachmann Brown-Waite, Culberson ONYERS demand a recorded vote. Bachus Ginny Davis (KY) C ) that the House suspend the A recorded vote was ordered. Barrett (SC) Buchanan Davis, David rules and pass the bill, H.R. 4279, as The SPEAKER pro tempore. This Bartlett (MD) Burgess Davis, Tom amended. Barton (TX) Burton (IN) Deal (GA) The question was taken; and the will be a 5-minute vote. Biggert Buyer Dent The vote was taken by electronic de- Bilbray Calvert Doolittle Speaker pro tempore announced that vice, and there were—ayes 239, noes 188, Bilirakis Camp (MI) Drake the ayes appeared to have it. Bishop (UT) Cannon Dreier RECORDED VOTE not voting 6, as follows: Blackburn Cantor Duncan [Roll No. 299] Blunt Capito Ehlers Mr. HINOJOSA. Mr. Speaker, I de- Boehner Carter Emerson AYES—239 mand a recorded vote. Bonner Castle English (PA) A recorded vote was ordered. Abercrombie Altmire Baca Bono Mack Chabot Everett Ackerman Andrews Baird Boozman Coble Fallin The SPEAKER pro tempore. This Allen Arcuri Baldwin Boustany Cole (OK) Feeney will be a 5-minute vote.

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00014 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.022 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3203 The vote was taken by electronic de- Neugebauer Ryan (OH) Tanner suspending the rules and agreeing to vice, and there were—ayes 410, noes 11, Nunes Ryan (WI) Tauscher the resolution, H. Res. 1086. Oberstar Salazar Taylor not voting 12, as follows: Obey Sali Terry The Clerk read the title of the resolu- Olver Sa´ nchez, Linda [Roll No. 300] Thompson (CA) tion. Ortiz T. Thompson (MS) The SPEAKER pro tempore. The Pallone Sanchez, Loretta AYES—410 Thornberry question is on the motion offered by Pascrell Sarbanes Tiahrt Abercrombie Davis, David Johnson (IL) Pastor Saxton Tiberi the gentleman from Texas (Mr. GENE Ackerman Davis, Lincoln Johnson, E. B. Payne Scalise Tierney REEN Aderholt Davis, Tom Johnson, Sam G ) that the House suspend the Pearce Schakowsky Towns Akin Deal (GA) Jones (NC) Pence Schiff rules and agree to the resolution, H. Alexander DeFazio Jones (OH) Tsongas Res. 1086. Perlmutter Schmidt Turner Allen DeGette Jordan Peterson (MN) Schwartz The question was taken; and (two- Altmire Delahunt Kagen Udall (CO) Peterson (PA) Scott (GA) Udall (NM) thirds being in the affirmative) the Andrews DeLauro Kanjorski Petri Scott (VA) Upton Arcuri Dent Kaptur Pickering Sensenbrenner rules were suspended and the resolu- Van Hollen Baca Diaz-Balart, L. Keller Pitts Serrano tion was agreed to. Vela´ zquez Bachmann Diaz-Balart, M. Kennedy Platts Sessions Visclosky A motion to reconsider was laid on Baird Dicks Kildee Pomeroy Sestak Walberg the table. Baldwin Dingell Kilpatrick Porter Shadegg Barrett (SC) Doggett Kind Price (GA) Shays Walden (OR) f Barrow Donnelly King (IA) Price (NC) Shea-Porter Walsh (NY) Bartlett (MD) Doyle King (NY) Pryce (OH) Sherman Walz (MN) AFRICAN NATIONAL CONGRESS Barton (TX) Drake Kingston Putnam Shimkus Wamp EXEMPTION Bean Dreier Kirk Radanovich Shuler Wasserman Becerra Edwards Klein (FL) Rahall Shuster Schultz The SPEAKER pro tempore. The un- Berkley Ehlers Kline (MN) Ramstad Simpson Waters finished business is the question on Berman Ellison Knollenberg Rangel Sires Watson suspending the rules and passing the Berry Ellsworth Kuhl (NY) Regula Skelton Watt Biggert Emanuel LaHood Rehberg Slaughter Waxman bill, H.R. 5690, as amended. Bilbray Emerson Lamborn Reichert Smith (NE) Weiner The Clerk read the title of the bill. Bilirakis Engel Lampson Renzi Smith (NJ) Welch (VT) The SPEAKER pro tempore. The Bishop (GA) English (PA) Langevin Reyes Smith (TX) Weldon (FL) question is on the motion offered by Bishop (NY) Eshoo Larsen (WA) Reynolds Smith (WA) Weller Bishop (UT) Etheridge Larson (CT) Rodriguez Snyder Wexler the gentleman from Michigan (Mr. Blackburn Everett Latham Rogers (AL) Solis Whitfield (KY) CONYERS) that the House suspend the Blumenauer Fallin LaTourette Rogers (KY) Souder Wilson (NM) rules and pass the bill, H.R. 5690, as Blunt Farr Latta Rogers (MI) Space Wilson (OH) Boehner Fattah Lee Rohrabacher Speier Wilson (SC) amended. Bonner Feeney Levin Ros-Lehtinen Spratt Wittman (VA) The question was taken; and (two- Bono Mack Ferguson Lewis (CA) Roskam Stark Wolf thirds being in the affirmative) the Boozman Filner Lewis (GA) Ross Stearns Woolsey rules were suspended and the bill, as Boren Forbes Lewis (KY) Rothman Stupak Wu Boswell Fortenberry Linder Roybal-Allard Sullivan Wynn amended, was passed. Boustany Fossella Lipinski Royce Sutton Yarmuth The title was amended so as to read: Boyd (FL) Foster LoBiondo Ruppersberger Tancredo Young (FL) Boyda (KS) Foxx Lowey ‘‘A bill to remove the African National Brady (PA) Frank (MA) Lucas NOES—11 Congress from treatment as a terrorist Brady (TX) Franks (AZ) Lungren, Daniel Boucher Kucinich Poe organization for certain acts or events, Braley (IA) Frelinghuysen E. Doolittle Lofgren, Zoe Westmoreland provide relief for certain members of Broun (GA) Gallegly Mack Duncan Moore (WI) Young (AK) the African National Congress regard- Brown (SC) Garrett (NJ) Mahoney (FL) Flake Paul Brown, Corrine Gerlach Maloney (NY) ing admissibility, and for other pur- Brown-Waite, Giffords Manzullo NOT VOTING—12 poses.’’. Ginny Gillibrand Marchant Bachus Gilchrest Loebsack A motion to reconsider was laid on Buchanan Gingrey Markey Campbell (CA) Gutierrez Lynch Burgess Gohmert Marshall Capito Hastings (WA) Richardson the table. Burton (IN) Gonzalez Matheson Cohen Herger Rush f Butterfield Goode Matsui Buyer Goodlatte McCarthy (CA) ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE PROVIDING FOR COMPENSATION Calvert Gordon McCarthy (NY) The SPEAKER pro tempore (during TO STATES INCARCERATING UN- Camp (MI) Granger McCaul (TX) the vote). Members are reminded they Cannon Graves McCollum (MN) DOCUMENTED ALIENS have 2 minutes remaining on this vote. Cantor Green, Al McCotter The SPEAKER pro tempore. The un- Capps Green, Gene McCrery Capuano Grijalva McDermott b 1222 finished business is the question on Cardoza Hall (NY) McGovern So (two-thirds being in the affirma- suspending the rules and passing the Carnahan Hall (TX) McHenry tive) the rules were suspended and the bill, H.R. 1512. Carney Hare McHugh Carson Harman McIntyre bill, as amended, was passed. The Clerk read the title of the bill. Carter Hastings (FL) McKeon The result of the vote was announced The SPEAKER pro tempore. The Castle Hayes McMorris as above recorded. question is on the motion offered by Castor Heller Rodgers A motion to reconsider was laid on the gentlewoman from California (Ms. Cazayoux Hensarling McNerney the table. Chabot Herseth Sandlin McNulty LINDA T. SA´ NCHEZ) that the House sus- Chandler Higgins Meek (FL) f pend the rules and pass the bill, H.R. Clarke Hill Meeks (NY) 1512. Clay Hinchey Melancon ANNOUNCEMENT BY THE SPEAKER Cleaver Hinojosa Mica PRO TEMPORE The question was taken; and (two- Clyburn Hirono Michaud thirds being in the affirmative) the Coble Hobson Miller (FL) The SPEAKER pro tempore (Mr. rules were suspended and the bill was Cole (OK) Hodes Miller (MI) HOLDEN). Pursuant to clause 8 of rule passed. Conaway Hoekstra Miller (NC) XX, proceedings will resume on mo- A motion to reconsider was laid on Conyers Holden Miller, Gary tions to suspend the rules previously Cooper Holt Miller, George the table. postponed. Costa Honda Mitchell f Costello Hooley Mollohan Votes will be taken in the following Courtney Hoyer Moore (KS) order: COIN MODERNIZATION AND Cramer Hulshof Moran (KS) H. Res. 1086, de novo; TAXPAYER SAVINGS ACT OF 2008 Crenshaw Hunter Moran (VA) H.R. 5690, de novo; Crowley Inglis (SC) Murphy (CT) The SPEAKER pro tempore. The un- Cubin Inslee Murphy, Patrick H.R. 1512, de novo; Cuellar Israel Murphy, Tim H.R. 5512, de novo. finished business is the question on suspending the rules and passing the Culberson Issa Murtha f Cummings Jackson (IL) Musgrave bill, H.R. 5512, as amended. Davis (AL) Jackson-Lee Myrick NATIONAL NURSES WEEK The Clerk read the title of the bill. Davis (CA) (TX) Nadler Davis (IL) Jefferson Napolitano The SPEAKER pro tempore. The un- The SPEAKER pro tempore. The Davis (KY) Johnson (GA) Neal (MA) finished business is the question on question is on the motion offered by

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00015 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.026 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3204 CONGRESSIONAL RECORD — HOUSE May 8, 2008 the gentleman from Illinois (Mr. Sec. 127. Post-purchase housing counseling eli- Sec. 608. Temporary tax relief for Kiowa Coun- GUTIERREZ) that the House suspend the gibility improvements. ty, Kansas and surrounding area. rules and pass the bill, H.R. 5512, as Sec. 128. Pre-purchase homeownership coun- TITLE VII—EMERGENCY DESIGNATION seling demonstration. Sec. 701. Emergency designation. amended. Sec. 129. Fraud prevention. The question was taken; and (two- Sec. 130. Limitation on mortgage insurance pre- TITLE VIII—REIT INVESTMENT thirds being in the affirmative) the mium increases. DIVERSIFICATION AND EMPOWERMENT rules were suspended and the bill, as Sec. 131. Savings provision. Sec. 801. Short title; amendment of 1986 Code. amended, was passed. Sec. 132. Implementation. Subtitle A—Taxable REIT Subsidiaries The title was amended so as to read: Sec. 133. Moratorium on implementation of risk- Sec. 811. Conforming taxable REIT subsidiary ‘‘A bill to reduce the costs of producing based premiums. asset test. 1-cent and 5-cent coins, provide author- Subtitle B—Manufactured Housing Loan Subtitle B—Dealer Sales Modernization ity to the Secretary of the Treasury to Sec. 821. Holding period under safe harbor. perform research and development on Sec. 141. Short title. Sec. 822. Determining value of sales under safe Sec. 142. Purposes. harbor. new metallic content for circulating Sec. 143. Exception to limitation on financial coins, and to require biennial reports institution portfolio. Subtitle C—Health Care REITs to Congress on circulating coin produc- Sec. 144. Insurance benefits. Sec. 831. Conformity for health care facilities. tion costs and possible alternative me- Sec. 145. Maximum loan limits. Subtitle D—Effective Dates and Sunset tallic content.’’. Sec. 146. Insurance premiums. Sec. 841. Effective dates and sunset. A motion to reconsider was laid on Sec. 147. Technical corrections. Sec. 148. Revision of underwriting criteria. TITLE IX—VETERANS HOUSING MATTERS the table. Sec. 149. Prohibition against kickbacks and un- Sec. 901. Home improvements and structural al- f earned fees. terations for totally disabled mem- Sec. 150. Leasehold requirements. bers of the Armed Forces before FORECLOSURE PREVENTION ACT discharge or release from the OF 2008 TITLE II—MORTGAGE FORECLOSURE PROTECTIONS FOR SERVICEMEMBERS Armed Forces. Sec. 902. Eligibility for specially adapted hous- Mr. FRANK of Massachusetts. Mr. Sec. 201. Temporary increase in maximum loan Speaker, pursuant to House Resolution ing benefits and assistance for guaranty amount for certain members of the Armed Forces with 1175, I call up the bill (H.R. 3221) mov- housing loans guaranteed by the service-connected disabilities and ing the United States toward greater Secretary of Veterans Affairs. individuals residing outside the energy independence and security, de- Sec. 202. Counseling on mortgage foreclosures United States. veloping innovative new technologies, for members of the Armed Forces Sec. 903. Specially adapted housing assistance reducing carbon emissions, creating returning from service abroad. for individuals with severe burn Sec. 203. Enhancement of protections for injuries. green jobs, protecting consumers, in- servicemembers relating to mort- creasing clean renewable energy pro- Sec. 904. Extension of assistance for individuals gages and mortgage foreclosures. residing temporarily in housing duction, and modernizing our energy TITLE III—EMERGENCY ASSISTANCE FOR owned by a family member. infrastructure, with the Senate amend- THE REDEVELOPMENT OF ABANDONED Sec. 905. Increase in specially adapted housing ments thereto, and ask for its imme- AND FORECLOSED HOMES benefits for disabled veterans. diate consideration in the House. Sec. 301. Emergency assistance for the redevel- Sec. 906. Report on specially adapted housing The Clerk read the title of the bill. opment of abandoned and fore- for disabled individuals. The SPEAKER pro tempore. The closed homes. Sec. 907. Report on specially adapted housing Clerk will designate the Senate amend- Sec. 302. Nationwide distribution of resources. assistance for individuals who re- Sec. 303. Limitation on use of funds with re- side in housing owned by a family ments. member on permanent basis. The text of the Senate amendments spect to eminent domain. Sec. 304. Limitation on distribution of funds. Sec. 908. Definition of annual income for pur- is as follows: Sec. 305. Counseling intermediaries. poses of section 8 and other public Senate amendments: TITLE IV—HOUSING COUNSELING housing programs. Sec. 909. Payment of transportation of baggage Strike out all after the enacting clause and RESOURCES insert: and household effects for members Sec. 401. Housing counseling resources. SECTION 1. SHORT TITLE; TABLE OF CONTENTS. of the Armed Forces who relocate Sec. 402. Credit counseling. due to foreclosure of leased hous- (a) SHORT TITLE.—This Act may be cited as TITLE V—MORTGAGE DISCLOSURE the ‘‘Foreclosure Prevention Act of 2008’’. ing. IMPROVEMENT ACT (b) TABLE OF CONTENTS.—The table of con- TITLE X—CLEAN ENERGY TAX STIMULUS tents for this Act is as follows: Sec. 501. Short title. Sec. 1001. Short title; etc. Sec. 502. Enhanced mortgage loan disclosures. Sec. 1. Short title; table of contents. Subtitle A—Extension of Clean Energy Sec. 503. Community Development Investment Production Incentives TITLE I—FHA MODERNIZATION ACT OF Authority for depository institu- 2008 tions. Sec. 1011. Extension and modification of renew- Sec. 101. Short title. Sec. 504. Federal Home loan bank refinancing able energy production tax credit. Sec. 1012. Extension and modification of solar Subtitle A—Building American Homeownership authority for certain residential mortgage loans. energy and fuel cell investment Sec. 111. Short title. tax credit. TITLE VI—TAX-RELATED PROVISIONS Sec. 112. Maximum principal loan obligation. Sec. 1013. Extension and modification of resi- Sec. 113. Cash investment requirement and pro- Sec. 601. Election for 4-year carryback of cer- dential energy efficient property hibition of seller-funded down- tain net operating losses and tem- credit. payment assistance. porary suspension of 90 percent Sec. 1014. Extension and modification of credit Sec. 114. Mortgage insurance premiums. AMT limit. for clean renewable energy bonds. Sec. 115. Rehabilitation loans. Sec. 602. Modifications on use of qualified mort- Sec. 1015. Extension of special rule to implement Sec. 116. Discretionary action. gage bonds; temporary increased FERC restructuring policy. Sec. 117. Insurance of condominiums. volume cap for certain housing Subtitle B—Extension of Incentives to Improve Sec. 118. Mutual Mortgage Insurance Fund. bonds. Energy Efficiency Sec. 119. Hawaiian home lands and Indian res- Sec. 603. Credit for certain home purchases. ervations. Sec. 604. Additional standard deduction for real Sec. 1021. Extension and modification of credit Sec. 120. Conforming and technical amend- property taxes for nonitemizers. for energy efficiency improve- ments. Sec. 605. Election to accelerate AMT and R and ments to existing homes. Sec. 121. Insurance of mortgages. D credits in lieu of bonus depre- Sec. 1022. Extension and modification of tax Sec. 122. Home equity conversion mortgages. ciation. credit for energy efficient new Sec. 123. Energy efficient mortgages program. Sec. 606. Use of amended income tax returns to homes. Sec. 124. Pilot program for automated process take into account receipt of cer- Sec. 1023. Extension and modification of energy for borrowers without sufficient tain hurricane-related casualty efficient commercial buildings de- credit history. loss grants by disallowing pre- duction. Sec. 125. Homeownership preservation. viously taken casualty loss deduc- Sec. 1024. Modification and extension of energy Sec. 126. Use of FHA savings for improvements tions. efficient appliance credit for ap- in FHA technologies, procedures, Sec. 607. Waiver of deadline on construction of pliances produced after 2007. processes, program performance, GO Zone property eligible for TITLE XI—SENSE OF THE SENATE staffing, and salaries. bonus depreciation. Sec. 1101. Sense of the Senate.

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00016 Fmt 4634 Sfmt 6343 E:\CR\FM\K08MY7.028 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3205 TITLE I—FHA MODERNIZATION ACT OF or its equivalent any amounts borrowed from a the unpaid purchase price of a fee interest in, or 2008 family member (as such term is defined in sec- long-term leasehold interest in, real estate con- SEC. 101. SHORT TITLE. tion 201), subject only to the requirements that, sisting of a one-family unit in a multifamily This title may be cited as the ‘‘FHA Mod- in any case in which the repayment of such bor- project, including a project in which the dwell- ernization Act of 2008’’. rowed amounts is secured by a lien against the ing units are attached, or are manufactured property, that— housing units, semi-detached, or detached, and Subtitle A—Building American ‘‘(i) such lien shall be subordinate to the mort- an undivided interest in the common areas and Homeownership gage; and facilities which serve the project’’. SEC. 111. SHORT TITLE. ‘‘(ii) the sum of the principal obligation of the (c) DEFINITION OF REAL ESTATE.—Section 201 This subtitle may be cited as the ‘‘Building mortgage and the obligation secured by such of the National Housing Act (12 U.S.C. 1707) is American Homeownership Act of 2008’’. lien may not exceed 100 percent of the appraised amended by adding at the end the following SEC. 112. MAXIMUM PRINCIPAL LOAN OBLIGA- value of the property. new subsection: TION. ‘‘(C) PROHIBITED SOURCES.—In no case shall ‘‘(g) The term ‘real estate’ means land and all (a) IN GENERAL.—Paragraph (2) of section the funds required by subparagraph (A) consist, natural resources and structures permanently 203(b)(2) of the National Housing Act (12 U.S.C. in whole or in part, of funds provided by any of affixed to the land, including residential build- 1709(b)(2)) is amended— the following parties before, during, or after ings and stationary manufactured housing. The (1) by amending subparagraphs (A) and (B) to closing of the property sale: Secretary may not require, for treatment of any read as follows: ‘‘(i) The seller or any other person or entity ‘‘(A) not to exceed the lesser of— land or other property as real estate for pur- that financially benefits from the transaction. poses of this title, that such land or property be ‘‘(i) in the case of a 1-family residence, 110 ‘‘(ii) Any third party or entity that is reim- percent of the median 1-family house price in treated as real estate for purposes of State tax- bursed, directly or indirectly, by any of the par- ation.’’. the area, as determined by the Secretary; and in ties described in clause (i).’’. the case of a 2-, 3-, or 4-family residence, the SEC. 118. MUTUAL MORTGAGE INSURANCE FUND. SEC. 114. MORTGAGE INSURANCE PREMIUMS. percentage of such median price that bears the (a) IN GENERAL.—Subsection (a) of section 202 Section 203(c)(2) of the National Housing Act same ratio to such median price as the dollar of the National Housing Act (12 U.S.C. 1708(a)) (12 U.S.C. 1709(c)(2)) is amended— amount limitation in effect for 2007 under sec- is amended to read as follows: (1) in the matter preceding subparagraph (A), tion 305(a)(2) of the Federal Home Loan Mort- by striking ‘‘or of the General Insurance Fund’’ ‘‘(a) MUTUAL MORTGAGE INSURANCE FUND.— gage Corporation Act (12 U.S.C. 1454(a)(2)) for a and all that follows through ‘‘section 234(c),,’’; ‘‘(1) ESTABLISHMENT.—Subject to the provi- 2-, 3-, or 4-family residence, respectively, bears and sions of the Federal Credit Reform Act of 1990, to the dollar amount limitation in effect for 2007 (2) in subparagraph (A)— there is hereby created a Mutual Mortgage In- under such section for a 1-family residence; or (A) by striking ‘‘2.25 percent’’ and inserting surance Fund (in this title referred to as the ‘‘(ii) 132 percent of the dollar amount limita- ‘‘3 percent’’; and ‘Fund’), which shall be used by the Secretary to tion in effect for 2007 under such section (B) by striking ‘‘2.0 percent’’ and inserting carry out the provisions of this title with respect 305(a)(2) for a residence of the applicable size ‘‘2.75 percent’’. to mortgages insured under section 203. The Sec- (without regard to any authority to increase retary may enter into commitments to guar- SEC. 115. REHABILITATION LOANS. such limitations with respect to properties lo- antee, and may guarantee, such insured mort- Subsection (k) of section 203 of the National cated in Alaska, Guam, Hawaii, or the Virgin gages. Islands), except that each such maximum dollar Housing Act (12 U.S.C. 1709(k)) is amended— (1) in paragraph (1), by striking ‘‘on’’ and all ‘‘(2) LIMIT ON LOAN GUARANTEES.—The au- amount shall be adjusted effective January 1 of thority of the Secretary to enter into commit- each year beginning with 2009, by adding to or that follows through ‘‘1978’’; and (2) in paragraph (5)— ments to guarantee such insured mortgages subtracting from each such amount (as it may shall be effective for any fiscal year only to the have been previously adjusted) a percentage (A) by striking ‘‘General Insurance Fund’’ the first place it appears and inserting ‘‘Mutual extent that the aggregate original principal loan thereof equal to the percentage increase or de- amount under such mortgages, any part of crease, during the most recently completed 12- Mortgage Insurance Fund’’; and (B) in the second sentence, by striking the which is guaranteed, does not exceed the month or 4-quarter period ending before the time amount specified in appropriations Acts for of determining such annual adjustment, in an comma and all that follows through ‘‘General Insurance Fund’’. such fiscal year. housing price index developed or selected by the ‘‘(3) FIDUCIARY RESPONSIBILITY.—The Sec- SEC. 116. DISCRETIONARY ACTION. Secretary for purposes of adjustments under this retary has a responsibility to ensure that the The National Housing Act is amended— clause; Mutual Mortgage Insurance Fund remains fi- except that the dollar amount limitation in ef- (1) in subsection (e) of section 202 (12 U.S.C. 1708(e))— nancially sound. fect under this subparagraph for any size resi- ‘‘(4) ANNUAL INDEPENDENT ACTUARIAL dence for any area may not be less than the (A) in paragraph (3)(B), by striking ‘‘section 202(e) of the National Housing Act’’ and insert- STUDY.—The Secretary shall provide for an greater of: (I) the dollar amount limitation in ef- independent actuarial study of the Fund to be fect under this section for the area on October ing ‘‘this subsection’’; and (B) by redesignating such subsection as sub- conducted annually, which shall analyze the fi- 21, 1998; or (II) 65 percent of the dollar amount section (f); nancial position of the Fund. The Secretary limitation in effect for 2007 under such section (2) by striking paragraph (4) of section 203(s) shall submit a report annually to the Congress 305(a)(2) for a residence of the applicable size, (12 U.S.C. 1709(s)(4)) and inserting the following describing the results of such study and assess- as such limitation is adjusted by any subsequent new paragraph: ing the financial status of the Fund. The report percentage adjustments determined under clause ‘‘(4) the Secretary of Agriculture;’’; and shall recommend adjustments to underwriting (ii) of this subparagraph; and (3) by transferring subsection (s) of section 203 standards, program participation, or premiums, ‘‘(B) not to exceed 100 percent of the ap- (as amended by paragraph (2) of this section) to if necessary, to ensure that the Fund remains fi- praised value of the property.’’; and section 202, inserting such subsection after sub- nancially sound. The report shall also include (2) in the matter following subparagraph (B), an evaluation of the quality control procedures by striking the second sentence (relating to a section (d) of section 202, and redesignating such subsection as subsection (e). and accuracy of information utilized in the definition of ‘‘average closing cost’’) and all process of underwriting loans guaranteed by the SEC. 117. INSURANCE OF CONDOMINIUMS. that follows through ‘‘section 3103A(d) of title Fund. Such evaluation shall include a review of (a) IN GENERAL.—Section 234 of the National 38, United States Code.’’. the risk characteristics of loans based not only Housing Act (12 U.S.C. 1715y) is amended— (b) EFFECTIVE DATE.—The amendments made on borrower information and performance, but (1) in subsection (c), in the first sentence— by subsection (a) shall take effect upon the expi- on risks associated with loans originated or (A) by striking ‘‘and’’ before ‘‘(2)’’; and ration of the date described in section 202(a) of funded by various entities or financial institu- (B) by inserting before the period at the end the Economic Stimulus Act of 2008 (Public Law tions. 110–185). the following: ‘‘, and (3) the project has a blan- ‘‘(5) QUARTERLY REPORTS.—During each fiscal SEC. 113. CASH INVESTMENT REQUIREMENT AND ket mortgage insured by the Secretary under subsection (d)’’; and year, the Secretary shall submit a report to the PROHIBITION OF SELLER-FUNDED Congress for each calendar quarter, which shall DOWNPAYMENT ASSISTANCE. (2) in subsection (g), by striking ‘‘, except specify for mortgages that are obligations of the Paragraph 9 of section 203(b) of the National that’’ and all that follows and inserting a pe- Fund— Housing Act (12 U.S.C. 1709(b)(9)) is amended to riod. read as follows: (b) DEFINITION OF MORTGAGE.—Section 201(a) ‘‘(A) the cumulative volume of loan guarantee ‘‘(9) CASH INVESTMENT REQUIREMENT.— of the National Housing Act (12 U.S.C. 1707(a)) commitments that have been made during such ‘‘(A) IN GENERAL.—A mortgage insured under is amended— fiscal year through the end of the quarter for this section shall be executed by a mortgagor (1) before ‘‘a first mortgage’’ insert ‘‘(A)’’; which the report is submitted; who shall have paid, in cash, on account of the (2) by striking ‘‘or on a leasehold (1)’’ and in- ‘‘(B) the types of loans insured, categorized by property an amount equal to not less than 3.5 serting ‘‘(B) a first mortgage on a leasehold on risk; percent of the appraised value of the property or real estate (i)’’; ‘‘(C) any significant changes between actual such larger amount as the Secretary may deter- (3) by striking ‘‘or (2)’’ and inserting ‘‘, or and projected claim and prepayment activity; mine. (ii)’’; and ‘‘(D) projected versus actual loss rates; and ‘‘(B) FAMILY MEMBERS.—For purposes of this (4) by inserting before the semicolon the fol- ‘‘(E) updated projections of the annual sub- paragraph, the Secretary shall consider as cash lowing: ‘‘, or (C) a first mortgage given to secure sidy rates to ensure that increases in risk to the

VerDate Aug 31 2005 03:48 May 09, 2008 Jkt 069060 PO 00000 Frm 00017 Fmt 4634 Sfmt 6333 E:\CR\FM\A08MY7.042 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3206 CONGRESSIONAL RECORD — HOUSE May 8, 2008

Fund are identified and mitigated by adjust- (5) Section 222 (12 U.S.C. 1715m). ‘‘(m) AUTHORITY TO INSURE HOME PURCHASE ments to underwriting standards, program par- (6) Section 237 (12 U.S.C. 1715z–2). MORTGAGE.— ticipation, or premiums, and the financial (7) Section 245 (12 U.S.C. 1715z–10). ‘‘(1) IN GENERAL.—Notwithstanding any other soundness of the Fund is maintained. (b) DEFINITION OF AREA.—Section 203(u)(2)(A) provision of this section, the Secretary may in- The first quarterly report under this paragraph of the National Housing Act (12 U.S.C. sure, upon application by a mortgagee, a home shall be submitted on the last day of the first 1709(u)(2)(A)) is amended by striking ‘‘shall’’ equity conversion mortgage upon such terms quarter of fiscal year 2008, or on the last day of and all that follows and inserting ‘‘means a and conditions as the Secretary may prescribe, the first full calendar quarter following the en- metropolitan statistical area as established by when the home equity conversion mortgage will actment of the Building American Homeowner- the Office of Management and Budget;’’. be used to purchase a 1- to 4-family dwelling ship Act of 2008, whichever is later. (c) DEFINITION OF STATE.—Section 201(d) of unit, one unit of which the mortgagor will oc- ‘‘(6) ADJUSTMENT OF PREMIUMS.—If, pursuant the National Housing Act (12 U.S.C. 1707(d)) is cupy as a primary residence, and to provide for to the independent actuarial study of the Fund amended by striking ‘‘the Trust Territory of the any future payments to the mortgagor, based on required under paragraph (4), the Secretary de- Pacific Islands’’ and inserting ‘‘the Common- available equity, as authorized under subsection termines that the Fund is not meeting the oper- wealth of the Northern Mariana Islands’’. (d)(9). ational goals established under paragraph (7) or SEC. 121. INSURANCE OF MORTGAGES. ‘‘(2) LIMITATION ON PRINCIPAL OBLIGATION.—A there is a substantial probability that the Fund Subsection (n)(2) of section 203 of the National home equity conversion mortgage insured pursu- will not maintain its established target subsidy Housing Act (12 U.S.C. 1709(n)(2)) is amended— ant to paragraph (1) shall involve a principal rate, the Secretary may either make pro- (1) in subparagraph (A), by inserting ‘‘or sub- obligation that does not exceed the dollar grammatic adjustments under this title as nec- ordinate mortgage or’’ before ‘‘lien given’’; and amount limitation determined under section essary to reduce the risk to the Fund, or make (2) in subparagraph (C), by inserting ‘‘or sub- 305(a)(2) of the Federal Home Loan Mortgage appropriate premium adjustments. ordinate mortgage or’’ before ‘‘lien’’. Corporation Act for a 1-family residence. ‘‘(n) REQUIREMENTS ON MORTGAGE ORIGINA- ‘‘(7) OPERATIONAL GOALS.—The operational SEC. 122. HOME EQUITY CONVERSION MORT- goals for the Fund are— GAGES. TORS.— ‘‘(1) IN GENERAL.—The mortgagee and any ‘‘(A) to minimize the default risk to the Fund (a) IN GENERAL.—Section 255 of the National other party that participates in the origination and to homeowners by among other actions in- Housing Act (12 U.S.C. 1715z–20) is amended— of a mortgage to be insured under this section stituting fraud prevention quality control (1) in subsection (b)(2), insert ‘‘ ‘real estate,’’’ shall— screening not later than 18 months after the after ‘‘ ‘mortgagor’,’’; ‘‘(A) not participate in, be associated with, or date of enactment of the Building American (2) by amending subsection (d)(1) to read as employ any party that participates in or is asso- Homeownership Act of 2008; and follows: ciated with any other financial or insurance ac- ‘‘(B) to meet the housing needs of the bor- ‘‘(1) have been originated by a mortgagee ap- proved by the Secretary;’’; tivity; or rowers that the single family mortgage insur- ‘‘(B) demonstrate to the Secretary that the ance program under this title is designed to (3) by amending subsection (d)(2)(B) to read as follows: mortgagee or other party maintains, or will serve.’’. maintain, firewalls and other safeguards de- (b) OBLIGATIONS OF FUND.—The National ‘‘(B) has received adequate counseling, as provided in subsection (f), by an independent signed to ensure that— Housing Act is amended as follows: ‘‘(i) individuals participating in the origina- (1) HOMEOWNERSHIP VOUCHER PROGRAM MORT- third party that is not, either directly or indi- rectly, associated with or compensated by a tion of the mortgage shall have no involvement GAGES.—In section 203(v) (12 U.S.C. 1709(v))— with, or incentive to provide the mortgagor (A) by striking ‘‘Notwithstanding section 202 party involved in— with, any other financial or insurance product; of this title, the’’ and inserting ‘‘The’’; and ‘‘(i) originating or servicing the mortgage; ‘‘(ii) funding the loan underlying the mort- and (B) by striking ‘‘General Insurance Fund’’ the ‘‘(ii) the mortgagor shall not be required, di- gage; or first place such term appears and all that fol- rectly or indirectly, as a condition of obtaining lows through the end of the subsection and in- ‘‘(iii) the sale of annuities, investments, long- term care insurance, or any other type of finan- a mortgage under this section, to purchase any serting ‘‘Mutual Mortgage Insurance Fund.’’. other financial or insurance product. OME EQUITY CONVERSION MORTGAGES cial or insurance product;’’; (2) H .— ‘‘(2) APPROVAL OF OTHER PARTIES.—All par- (4) in subsection (f)— Section 255(i)(2)(A) of the National Housing Act ties that participate in the origination of a mort- (A) by striking ‘‘(f) INFORMATION SERVICES (12 U.S.C. 1715z–20(i)(2)(A)) is amended by strik- gage to be insured under this section shall be FOR MORTGAGORS.—’’ and inserting ‘‘(f) COUN- ing ‘‘General Insurance Fund’’ and inserting approved by the Secretary. SELING SERVICES AND INFORMATION FOR MORT- ‘‘Mutual Mortgage Insurance Fund’’. ‘‘(o) PROHIBITION AGAINST REQUIREMENTS TO GAGORS.—’’; and (c) CONFORMING AMENDMENTS.—The National PURCHASE ADDITIONAL PRODUCTS.—The mort- (B) by amending the matter preceding para- Housing Act is amended— gagee or any other party shall not be required graph (1) to read as follows: ‘‘The Secretary (1) in section 205 (12 U.S.C. 1711), by striking by the mortgagor or any other party to purchase shall provide or cause to be provided adequate subsections (g) and (h); and an insurance, annuity, or other additional (2) in section 519(e) (12 U.S.C. 1735c(e)), by counseling for the mortgagor, as described in product as a requirement or condition of eligi- striking ‘‘203(b)’’ and all that follows through subsection (d)(2)(B). Such counseling shall be bility for a mortgage authorized under sub- ‘‘203(i)’’ and inserting ‘‘203, except as deter- provided by counselors that meet qualification section (c). standards and follow uniform counseling proto- mined by the Secretary’’. ‘‘(p) STUDY TO DETERMINE CONSUMER PRO- cols. The qualification standards and coun- SEC. 119. HAWAIIAN HOME LANDS AND INDIAN TECTIONS AND UNDERWRITING STANDARDS.—The RESERVATIONS. seling protocols shall be established by the Sec- Secretary shall conduct a study to examine and (a) HAWAIIAN HOME LANDS.—Section 247(c) of retary within 12 months of the date of enact- determine appropriate consumer protections and the National Housing Act (12 U.S.C. 1715z–12(c)) ment of the Reverse Mortgage Proceeds Protec- underwriting standards to ensure that the pur- is amended— tion Act. The protocols shall require a qualified chase of products referred to in subsection (o) is (1) by striking ‘‘General Insurance Fund es- counselor to discuss with each mortgagor infor- appropriate for the consumer. In conducting tablished in section 519’’ and inserting ‘‘Mutual mation which shall include—’’ such study, the Secretary shall consult with (5) in subsection (g), by striking ‘‘established Mortgage Insurance Fund’’; and consumer advocates (including recognized ex- under section 203(b)(2)’’ and all that follows (2) in the second sentence, by striking ‘‘(1) all perts in consumer protection), industry rep- through ‘‘located’’ and inserting ‘‘limitation es- references’’ and all that follows through ‘‘and resentatives, representatives of counseling orga- tablished under section 305(a)(2) of the Federal (2)’’. nizations, and other interested parties.’’. (b) INDIAN RESERVATIONS.—Section 248(f) of Home Loan Mortgage Corporation Act for a 1- (b) MORTGAGES FOR COOPERATIVES.—Sub- the National Housing Act (12 U.S.C. 1715z–13(f)) family residence’’; section (b) of section 255 of the National Hous- is amended— (6) in subsection (i)(1)(C), by striking ‘‘limita- ing Act (12 U.S.C. 1715z–20(b)) is amended— (1) by striking ‘‘General Insurance Fund’’ the tions’’ and inserting ‘‘limitation’’; (1) in paragraph (4)— first place it appears through ‘‘519’’ and insert- (7) by striking subsection (l); (A) by inserting ‘‘a first or subordinate mort- ing ‘‘Mutual Mortgage Insurance Fund’’; and (8) by redesignating subsection (m) as sub- gage or lien’’ before ‘‘on all stock’’; (2) in the second sentence, by striking ‘‘(1) all section (l); (B) by inserting ‘‘unit’’ after ‘‘dwelling’’; and references’’ and all that follows through ‘‘and (9) by amending subsection (l), as so redesig- (C) by inserting ‘‘a first mortgage or first lien’’ (2)’’. nated, to read as follows: before ‘‘on a leasehold’’; and SEC. 120. CONFORMING AND TECHNICAL AMEND- ‘‘(l) FUNDING FOR COUNSELING.—The Sec- (2) in paragraph (5), by inserting ‘‘a first or MENTS. retary may use a portion of the mortgage insur- subordinate lien on’’ before ‘‘all stock’’. (a) REPEALS.—The following provisions of the ance premiums collected under the program (c) LIMITATION ON ORIGINATION FEES.—Sec- National Housing Act are repealed: under this section to adequately fund the coun- tion 255 of the National Housing Act (12 U.S.C. (1) Subsection (i) of section 203 (12 U.S.C. seling and disclosure activities required under 1715z–20), as amended by the preceding provi- 1709(i)). subsection (f), including counseling for those sions of this section, is further amended by add- (2) Subsection (o) of section 203 (12 U.S.C. homeowners who elect not to take out a home ing at the end the following new subsection: 1709(o)). equity conversion mortgage, provided that the ‘‘(r) LIMITATION ON ORIGINATION FEES.—The (3) Subsection (p) of section 203 (12 U.S.C. use of such funds is based upon accepted actu- Secretary shall establish limits on the origina- 1709(p)). arial principles.’’; and tion fee that may be charged to a mortgagor (4) Subsection (q) of section 203 (12 U.S.C. (10) by adding at the end the following new under a mortgage insured under this section, 1709(q)). subsection: which limitations shall—

VerDate Aug 31 2005 03:48 May 09, 2008 Jkt 069060 PO 00000 Frm 00018 Fmt 4634 Sfmt 6333 E:\CR\FM\A08MY7.042 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3207 ‘‘(1) equal 1.5 percent of the maximum claim available to mortgagees, an automated process ratio for the Mutual Mortgage Insurance amount of the mortgage unless adjusted there- for providing alternative credit rating informa- Fund); and after on the basis of— tion for mortgagors and prospective mortgagors (B) ensure the safety and soundness of the ‘‘(A) the costs to the mortgagor; and under mortgages on 1- to 4-family residences to other mortgage insurance funds under such Act; ‘‘(B) the impact of such fees on the reverse be insured under this title who have insufficient and mortgage market; credit histories for determining their credit- (2) any negative credit subsidy for such fiscal ‘‘(2) be subject to a minimum allowable worthiness. Such alternative credit rating infor- year resulting from such mortgage insurance amount; mation may include rent, utilities, and insur- programs adequately ensures the efficient deliv- ‘‘(3) provide that the origination fee may be ance payment histories, and such other informa- ery and availability of such programs. fully financed with the mortgage; tion as the Secretary considers appropriate. (c) STUDY AND REPORT.—The Secretary of ‘‘(4) include any fees paid to correspondent ‘‘(b) SCOPE.—The Secretary may carry out the Housing and Urban Development shall conduct mortgagees approved by the Secretary; and pilot program under this section on a limited a study to obtain recommendations from partici- ‘‘(5) have the same effective date as subsection basis or scope, and may consider limiting the pants in the private residential (both single fam- (m)(2) regarding the limitation on principal obli- program to first-time homebuyers. ily and multifamily) mortgage lending business gation.’’. ‘‘(c) LIMITATION.—In any fiscal year, the ag- and the secondary market for such mortgages on (d) STUDY REGARDING PROGRAM COSTS AND gregate number of mortgages insured pursuant how best to update and upgrade processes and CREDIT AVAILABILITY.— to the automated process established under this technologies for the mortgage insurance pro- (1) IN GENERAL.—The Comptroller General of section may not exceed 5 percent of the aggre- grams under title II of the National Housing Act the United States shall conduct a study regard- gate number of mortgages for 1- to 4-family resi- so that the procedures for originating, insuring, ing the costs and availability of credit under the dences insured by the Secretary under this title and servicing of such mortgages conform with home equity conversion mortgages for elderly during the preceding fiscal year. those customarily used by secondary market homeowners program under section 255 of the ‘‘(d) SUNSET.—After the expiration of the 5- purchasers of residential mortgage loans. Not National Housing Act (12 U.S.C. 1715z–20) (in year period beginning on the date of the enact- later than the expiration of the 12-month period this subsection referred to as the ‘‘program’’). ment of the Building American Homeownership beginning on the date of the enactment of this (2) PURPOSE.—The purpose of the study re- Act of 2008, the Secretary may not enter into title, the Secretary shall submit a report to the quired under paragraph (1) is to help Congress any new commitment to insure any mortgage, or Congress describing the progress made and to be analyze and determine the effects of limiting the newly insure any mortgage, pursuant to the made toward updating and upgrading such amounts of the costs or fees under the program automated process established under this sec- processes and technology, and providing appro- from the amounts charged under the program as tion.’’. priate staffing for such mortgage insurance pro- of the date of the enactment of this title. (b) GAO REPORT.—Not later than the expira- grams. ONTENT OF REPORT (3) C .—The study required tion of the two-year period beginning on the SEC. 127. POST-PURCHASE HOUSING COUN- under paragraph (1) should focus on— date of the enactment of this subtitle, the Comp- SELING ELIGIBILITY IMPROVE- (A) the cost to mortgagors of participating in troller General of the United States shall submit MENTS. the program; to the Congress a report identifying the number Section 106(c)(4) of the Housing and Urban (B) the financial soundness of the program; of additional mortgagors served using the auto- Development Act of 1968 (12 U.S.C. 1701x(c)(4)) (C) the availability of credit under the pro- mated process established pursuant to section is amended: gram; and 257 of the National Housing Act (as added by (1) in subparagraph (C)— (D) the costs to elderly homeowners partici- the amendment made by subsection (a) of this (A) in clause (i), by striking ‘‘; or’’ and insert- pating in the program, including— section) and the impact of such process and the ing a semicolon; (i) mortgage insurance premiums charged insurance of mortgages pursuant to such process (B) in clause (ii), by striking the period at the under the program; on the safety and soundness of the insurance end and inserting a semicolon; and (ii) up-front fees charged under the program; funds under the National Housing Act of which (C) by adding at the end the following: and such mortgages are obligations. ‘‘(iii) a significant reduction in the income of (iii) margin rates charged under the program. SEC. 125. HOMEOWNERSHIP PRESERVATION. the household due to divorce or death; or (4) TIMING OF REPORT.—Not later than 12 The Secretary of Housing and Urban Develop- ‘‘(iv) a significant increase in basic expenses months after the date of the enactment of this ment and the Commissioner of the Federal of the homeowner or an immediate family mem- title, the Comptroller General shall submit a re- Housing Administration, in consultation with ber of the homeowner (including the spouse, port to the Committee on Banking, Housing, industry, the Neighborhood Reinvestment Cor- child, or parent for whom the homeowner pro- and Urban Affairs of the Senate and the Com- poration, and other entities involved in fore- vides substantial care or financial assistance) mittee on Financial Services of the House of closure prevention activities, shall— due to— Representatives setting forth the results and (1) develop and implement a plan to improve ‘‘(I) an unexpected or significant increase in conclusions of the study required under para- the Federal Housing Administration’s loss miti- medical expenses; graph (1). gation process; and ‘‘(II) a divorce; SEC. 123. ENERGY EFFICIENT MORTGAGES PRO- (2) report such plan to the Committee on ‘‘(III) unexpected and significant damage to GRAM. Banking, Housing, and Urban Affairs of the the property, the repair of which will not be Section 106(a)(2) of the Energy Policy Act of Senate and the Committee on Financial Services covered by private or public insurance; or 1992 (42 U.S.C. 12712 note) is amended— of the House of Representatives. ‘‘(IV) a large property-tax increase; or’’; (2) by striking the matter that follows sub- (1) by amending subparagraph (C) to read as SEC. 126. USE OF FHA SAVINGS FOR IMPROVE- follows: MENTS IN FHA TECHNOLOGIES, PRO- paragraph (C); and ‘‘(C) COSTS OF IMPROVEMENTS.—The cost of CEDURES, PROCESSES, PROGRAM (3) by adding at the end the following: cost-effective energy efficiency improvements PERFORMANCE, STAFFING, AND SAL- ‘‘(D) the Secretary of Housing and Urban De- shall not exceed the greater of— ARIES. velopment determines that the annual income of ‘‘(i) 5 percent of the property value (not to ex- (a) AUTHORIZATION OF APPROPRIATIONS.— the homeowner is no greater than the annual ceed 5 percent of the limit established under sec- There is authorized to be appropriated for each income established by the Secretary as being of tion 203(b)(2)(A)) of the National Housing Act of fiscal years 2009 through 2013, $25,000,000, low- or moderate-income.’’. (12 U.S.C. 1709(b)(2)(A); or from negative credit subsidy for the mortgage in- SEC. 128. PRE-PURCHASE HOMEOWNERSHIP ‘‘(ii) 2 percent of the limit established under surance programs under title II of the National COUNSELING DEMONSTRATION. section 203(b)(2)(B) of such Act.’’; and Housing Act, to the Secretary of Housing and (a) ESTABLISHMENT OF PROGRAM.—For the pe- (2) by adding at the end the following: Urban Development for increasing funding for riod beginning on the date of enactment of this ‘‘(D) LIMITATION.—In any fiscal year, the ag- the purpose of improving technology, processes, title and ending on the date that is 3 years after gregate number of mortgages insured pursuant program performance, eliminating fraud, and such date of enactment, the Secretary of Hous- to this section may not exceed 5 percent of the for providing appropriate staffing in connection ing and Urban Development shall establish and aggregate number of mortgages for 1- to 4-family with the mortgage insurance programs under conduct a demonstration program to test the ef- residences insured by the Secretary of Housing title II of the National Housing Act. fectiveness of alternative forms of pre-purchase and Urban Development under title II of the (b) CERTIFICATION.—The authorization under homeownership counseling for eligible home- National Housing Act (12 U.S.C. 1707 et seq.) subsection (a) shall not be effective for a fiscal buyers. during the preceding fiscal year.’’. year unless the Secretary of Housing and Urban (b) FORMS OF COUNSELING.—The Secretary of SEC. 124. PILOT PROGRAM FOR AUTOMATED Development has, by rulemaking in accordance Housing and Urban Development shall provide PROCESS FOR BORROWERS WITH- with section 553 of title 5, United States Code to eligible homebuyers pre-purchase homeowner- OUT SUFFICIENT CREDIT HISTORY. (notwithstanding subsections (a)(2), (b)(B), and ship counseling under this section in the form (a) ESTABLISHMENT.—Title II of the National (d)(3) of such section), made a determination of— Housing Act (12 U.S.C. 1707 et seq.) is amended that— (1) telephone counseling; by adding at the end the following new section: (1) premiums being, or to be, charged during (2) individualized in-person counseling; ‘‘SEC. 257. PILOT PROGRAM FOR AUTOMATED such fiscal year for mortgage insurance under (3) web-based counseling; PROCESS FOR BORROWERS WITH- title II of the National Housing Act are estab- (4) counseling classes; or OUT SUFFICIENT CREDIT HISTORY. lished at the minimum amount sufficient to— (5) any other form or type of counseling that ‘‘(a) ESTABLISHMENT.—The Secretary shall (A) comply with the requirements of section the Secretary may, in his discretion, determine carry out a pilot program to establish, and make 205(f) of such Act (relating to required capital appropriate.

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00019 Fmt 4634 Sfmt 6333 E:\CR\FM\A08MY7.042 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3208 CONGRESSIONAL RECORD — HOUSE May 8, 2008

(c) SIZE OF PROGRAM.—The Secretary shall SEC. 132. IMPLEMENTATION. (3) in subparagraph (D) by striking ‘‘$64,800’’ make available the pre-purchase homeownership The Secretary of Housing and Urban Develop- and inserting ‘‘$92,904’’; counseling described in subsection (b) to not ment shall by notice establish any additional re- (4) in subparagraph (E) by striking ‘‘$16,200’’ more than 3,000 eligible homebuyers in any quirements that may be necessary to imme- and inserting ‘‘$23,226’’; and given year. diately carry out the provisions of this subtitle. (5) by realigning subparagraphs (C), (D), and (d) INCENTIVE TO PARTICIPATE.—The Sec- The notice shall take effect upon issuance. (E) 2 ems to the left so that the left margins of retary of Housing and Urban Development may SEC. 133. MORATORIUM ON IMPLEMENTATION OF such subparagraphs are aligned with the mar- provide incentives to eligible homebuyers to par- RISK-BASED PREMIUMS. gins of subparagraphs (A) and (B). ticipate in the demonstration program estab- For the 12-month period beginning on the date (b) ANNUAL INDEXING.—Subsection (b) of sec- lished under subsection (a). Such incentives may of enactment of this title, the Secretary of Hous- tion 2 of the National Housing Act (12 U.S.C. include the reduction of any insurance premium ing and Urban Development shall not enact, 1703(b)), as amended by the preceding provisions charges owed by the eligible homebuyer to the execute, or take any action to make effective the of this title, is further amended by adding at the Secretary. planned implementation of risk-based premiums, end the following new paragraph: (e) ELIGIBLE HOMEBUYER DEFINED.—For pur- which are designed for mortgage lenders to offer ‘‘(9) ANNUAL INDEXING OF MANUFACTURED poses of this section an ‘‘eligible homebuyer’’ borrowers an FHA-insured product that pro- HOUSING LOANS.—The Secretary shall develop a means a first-time homebuyer who has been ap- vides a range of mortgage insurance premium method of indexing in order to annually adjust proved for a home loan with a loan-to-value pricing, based on the risk the insurance contract the loan limits established in subparagraphs ratio between 97 percent and 98.5 percent. represents, as such planned implementation was (A)(ii), (C), (D), and (E) of this subsection. Such (f) REPORT TO CONGRESS.—The Secretary of set forth in the Notice published in the Federal index shall be based on the manufactured hous- Housing and Urban Development shall report to Register on September 20, 2007 (Vol. 72, No. 182, ing price data collected by the United States the Committee on Banking, Housing, and Urban Page 53872). Census Bureau. The Secretary shall establish such index no later than 1 year after the date of Affairs of the Senate and the Committee on Fi- Subtitle B—Manufactured Housing Loan the enactment of the FHA Manufactured Hous- nancial Services of the House of Representa- Modernization tive— ing Loan Modernization Act of 2008.’’ SEC. 141. SHORT TITLE. (1) on an annual basis, on the progress and (c) TECHNICAL AND CONFORMING CHANGES.— This subtitle may be cited as the ‘‘FHA Manu- results of the demonstration program established Paragraph (1) of section 2(b) of the National factured Housing Loan Modernization Act of under subsection (a); and Housing Act (12 U.S.C. 1703(b)(1)) is amended— 2008’’. (2) for the period beginning on the date of en- (1) by striking ‘‘No’’ and inserting ‘‘Except as actment of this title and ending on the date that SEC. 142. PURPOSES. provided in the last sentence of this paragraph, is 5 years after such date of enactment, on the The purposes of this subtitle are— no’’; and (1) to provide adequate funding for FHA-in- payment history and delinquency rates of eligi- (2) by adding after and below subparagraph sured manufactured housing loans for low- and ble homebuyers who participated in the dem- (G) the following: moderate-income homebuyers during all eco- ‘‘The Secretary shall, by regulation, annually onstration program. nomic cycles in the manufactured housing in- increase the dollar amount limitations in sub- SEC. 129. FRAUD PREVENTION. dustry; paragraphs (A)(ii), (C), (D), and (E) (as such Section 1014 of title 18, United States Code, is (2) to modernize the FHA title I insurance limitations may have been previously adjusted amended in the first sentence— program for manufactured housing loans to en- under this sentence) in accordance with the (1) by inserting ‘‘the Federal Housing Admin- hance participation by Ginnie Mae and the pri- index established pursuant to paragraph (9).’’. istration’’ before ‘‘the Farm Credit Administra- vate lending markets; and SEC. 146. INSURANCE PREMIUMS. tion’’; and (3) to adjust the low loan limits for title I Subsection (f) of section 2 of the National (2) by striking ‘‘commitment, or loan’’ and in- manufactured home loan insurance to reflect Housing Act (12 U.S.C. 1703(f)) is amended— serting ‘‘commitment, loan, or insurance agree- the increase in costs since such limits were last (1) by inserting ‘‘(1) PREMIUM CHARGES.—’’ ment or application for insurance or a guar- increased in 1992 and to index the limits to in- after ‘‘(f)’’; and antee’’. flation. (2) by adding at the end the following new SEC. 130. LIMITATION ON MORTGAGE INSURANCE SEC. 143. EXCEPTION TO LIMITATION ON FINAN- paragraph: PREMIUM INCREASES. CIAL INSTITUTION PORTFOLIO. ‘‘(2) MANUFACTURED HOME LOANS.—Notwith- (a) IN GENERAL.—Notwithstanding any other The second sentence of section 2(a) of the Na- standing paragraph (1), in the case of a loan, provision of law, including any provision of this tional Housing Act (12 U.S.C. 1703(a)) is amend- advance of credit, or purchase in connection title and any amendment made by this title— ed— with a manufactured home or a lot on which to (1) for the period beginning on the date of the (1) by striking ‘‘In no case’’ and inserting place such a home (or both), the premium enactment of this title and ending on October 1, ‘‘Other than in connection with a manufactured charge for the insurance granted under this sec- 2009, the premiums charged for mortgage insur- home or a lot on which to place such a home (or tion shall be paid by the borrower under the ance under multifamily housing programs under both), in no case’’; and loan or advance of credit, as follows: the National Housing Act may not be increased (2) by striking ‘‘: Provided, That with’’ and ‘‘(A) At the time of the making of the loan, above the premium amounts in effect under such inserting ‘‘. With’’. advance of credit, or purchase, a single premium program on October 1, 2006, unless the Secretary SEC. 144. INSURANCE BENEFITS. payment in an amount not to exceed 2.25 per- of Housing and Urban Development determines (a) IN GENERAL.—Subsection (b) of section 2 of cent of the amount of the original insured prin- that, absent such increase, insurance of addi- the National Housing Act (12 U.S.C. 1703(b)), is cipal obligation. tional mortgages under such program would, amended by adding at the end the following ‘‘(B) In addition to the premium under sub- under the Federal Credit Reform Act of 1990, re- new paragraph: paragraph (A), annual premium payments dur- quire the appropriation of new budget authority ‘‘(8) INSURANCE BENEFITS FOR MANUFACTURED ing the term of the loan, advance, or obligation to cover the costs (as such term is defined in sec- HOUSING LOANS.—Any contract of insurance purchased in an amount not exceeding 1.0 per- tion 502 of the Federal Credit Reform Act of 1990 with respect to loans, advances of credit, or pur- cent of the remaining insured principal balance (2 U.S.C. 661a) of such insurance; and chases in connection with a manufactured home (excluding the portion of the remaining balance (2) a premium increase pursuant to paragraph or a lot on which to place a manufactured home attributable to the premium collected under sub- (1) may be made only if not less than 30 days (or both) for a financial institution that is exe- paragraph (A) and without taking into account prior to such increase taking effect, the Sec- cuted under this title after the date of the enact- delinquent payments or prepayments). retary of Housing and Urban Development— ment of the FHA Manufactured Housing Loan ‘‘(C) Premium charges under this paragraph (A) notifies the Committee on Banking, Hous- Modernization Act of 2008 by the Secretary shall shall be established in amounts that are suffi- ing, and Urban Affairs of the Senate and the be conclusive evidence of the eligibility of such cient, but do not exceed the minimum amounts Committee on Financial Services of the House of financial institution for insurance, and the va- necessary, to maintain a negative credit subsidy Representatives of such increase; and lidity of any contract of insurance so executed for the program under this section for insurance (B) publishes notice of such increase in the shall be incontestable in the hands of the bearer of loans, advances of credit, or purchases in Federal Register. from the date of the execution of such contract, connection with a manufactured home or a lot (b) WAIVER.—The Secretary of Housing and except for fraud or misrepresentation on the on which to place such a home (or both), as de- Urban Development may waive the 30-day no- part of such institution.’’. termined based upon risk to the Federal Govern- tice requirement under subsection (a)(2), if the (b) APPLICABILITY.—The amendment made by ment under existing underwriting requirements. Secretary determines that waiting 30-days before subsection (a) shall only apply to loans that are ‘‘(D) The Secretary may increase the limita- increasing premiums would cause substantial registered or endorsed for insurance after the tions on premium payments to percentages damage to the solvency of multifamily housing date of the enactment of this title. above those set forth in subparagraphs (A) and programs under the National Housing Act. SEC. 145. MAXIMUM LOAN LIMITS. (B), but only if necessary, and not in excess of SEC. 131. SAVINGS PROVISION. (a) DOLLAR AMOUNTS.—Paragraph (1) of sec- the minimum increase necessary, to maintain a Any mortgage insured under title II of the Na- tion 2(b) of the National Housing Act (12 U.S.C. negative credit subsidy as described in subpara- tional Housing Act before the date of enactment 1703(b)(1)) is amended— graph (C).’’. of this subtitle shall continue to be governed by (1) in clause (ii) of subparagraph (A), by strik- SEC. 147. TECHNICAL CORRECTIONS. the laws, regulations, orders, and terms and ing ‘‘$17,500’’ and inserting ‘‘$25,090’’; (a) DATES.—Subsection (a) of section 2 of the conditions to which it was subject on the day (2) in subparagraph (C) by striking ‘‘$48,600’’ National Housing Act (12 U.S.C. 1703(a)) is before the date of the enactment of this subtitle. and inserting ‘‘$69,678’’; amended—

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00020 Fmt 4634 Sfmt 6333 E:\CR\FM\A08MY7.042 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3209 (1) by striking ‘‘on and after July 1, 1939,’’ ‘‘SEC. 10. PROHIBITION AGAINST KICKBACKS AND ing the period beginning on the date of the en- each place such term appears; and UNEARNED FEES. actment of this Act and ending on December 31, (2) by striking ‘‘made after the effective date ‘‘(a) IN GENERAL.—Except as provided in sub- 2008, the term ‘‘maximum guaranty amount’’ of the Housing Act of 1954’’. section (b), the provisions of sections 3, 8, 16, 17, shall mean an amount equal to 25 percent of the (b) AUTHORITY OF SECRETARY.—Subsection (c) 18, and 19 of the Real Estate Settlement Proce- higher of— of section 2 of the National Housing Act (12 dures Act of 1974 (12 U.S.C. 2601 et seq.) shall (1) the limitation determined under section U.S.C. 1703(c)) is amended to read as follows: apply to each sale of a manufactured home fi- 305(a)(2) of the Federal Home Loan Mortgage ‘‘(c) HANDLING AND DISPOSAL OF PROPERTY.— nanced with an FHA-insured loan or extension Corporation Act (12 U.S.C. 1454(a)(2)) for the ‘‘(1) AUTHORITY OF SECRETARY.—Notwith- of credit, as well as to services rendered in con- calendar year in which the loan is originated standing any other provision of law, the Sec- nection with such transactions. for a single-family residence; or retary may— ‘‘(b) AUTHORITY OF THE SECRETARY.—The Sec- (2) 125 percent of the area median price for a ‘‘(A) deal with, complete, rent, renovate, mod- retary is authorized to determine the manner single-family residence, but in no case to exceed ernize, insure, or assign or sell at public or pri- and extent to which the provisions of sections 3, 175 percent of the limitation determined under vate sale, or otherwise dispose of, for cash or 8, 16, 17, 18, and 19 of the Real Estate Settlement such section 305(a)(2) for the calendar year in credit in the Secretary’s discretion, and upon Procedures Act of 1974 (12 U.S.C. 2601 et seq.) which the loan is originated for a single-family such terms and conditions and for such consid- may reasonably be applied to the transactions residence. eration as the Secretary shall determine to be described in subsection (a), and to grant such SEC. 202. COUNSELING ON MORTGAGE FORE- reasonable, any real or personal property con- exemptions as may be necessary to achieve the CLOSURES FOR MEMBERS OF THE veyed to or otherwise acquired by the Secretary, purposes of this section. ARMED FORCES RETURNING FROM SERVICE ABROAD. in connection with the payment of insurance ‘‘(c) DEFINITIONS.—For purposes of this sec- (a) IN GENERAL.—The Secretary of Defense heretofore or hereafter granted under this title, tion— shall develop and implement a program to ad- including any evidence of debt, contract, claim, ‘‘(1) the term ‘federally related mortgage loan’ vise members of the Armed Forces (including personal property, or security assigned to or as used in sections 3, 8, 16, 17, 18, and 19 of the members of the National Guard and Reserve) held by him in connection with the payment of Real Estate Settlement Procedures Act of 1974 who are returning from service on active duty insurance heretofore or hereafter granted under (12 U.S.C. 2601 et seq.) shall include an FHA-in- abroad (including service in Operation Iraqi this section; and sured loan or extension of credit made to a bor- Freedom and Operation Enduring Freedom) on ‘‘(B) pursue to final collection, by way of rower for the purpose of purchasing a manufac- actions to be taken by such members to prevent compromise or otherwise, all claims assigned to tured home that the borrower intends to occupy or forestall mortgage foreclosures. or held by the Secretary and all legal or equi- as a personal residence; and (b) ELEMENTS.—The program required by sub- table rights accruing to the Secretary in connec- ‘‘(2) the term ‘real estate settlement service’ as tion with the payment of such insurance, in- section (a) shall include the following: used in sections 3, 8, 16, 17, 18, and 19 of the (1) Credit counseling. cluding unpaid insurance premiums owed in Real Estate Settlement Procedures Act of 1974 connection with insurance made available by (2) Home mortgage counseling. (12 U.S.C. 2601 et seq.) shall include any service (3) Such other counseling and information as this title. rendered in connection with a loan or extension the Secretary considers appropriate for purposes ‘‘(2) ADVERTISEMENTS FOR PROPOSALS.—Sec- of credit insured by the Federal Housing Admin- tion 3709 of the Revised Statutes shall not be of the program. istration for the purchase of a manufactured (c) TIMING OF PROVISION OF COUNSELING.— construed to apply to any contract of hazard in- home. Counseling and other information under the surance or to any purchase or contract for serv- ‘‘(d) UNFAIR AND DECEPTIVE PRACTICES.—In program required by subsection (a) shall be pro- ices or supplies on account of such property if connection with the purchase of a manufac- vided to a member of the Armed Forces covered the amount thereof does not exceed $25,000. tured home financed with a loan or extension of by the program as soon as practicable after the ‘‘(3) DELEGATION OF AUTHORITY.—The power credit insured by the Federal Housing Adminis- return of the member from service as described to convey and to execute in the name of the Sec- tration under this title, the Secretary shall pro- in subsection (a). retary, deeds of conveyance, deeds of release, hibit acts or practices in connection with loans assignments and satisfactions of mortgages, and SEC. 203. ENHANCEMENT OF PROTECTIONS FOR or extensions of credit that the Secretary finds SERVICEMEMBERS RELATING TO any other written instrument relating to real or to be unfair, deceptive, or otherwise not in the MORTGAGES AND MORTGAGE FORE- personal property or any interest therein here- interests of the borrower.’’. CLOSURES. tofore or hereafter acquired by the Secretary (a) EXTENSION OF PERIOD OF PROTECTIONS SEC. 150. LEASEHOLD REQUIREMENTS. pursuant to the provisions of this title may be AGAINST MORTGAGE FORECLOSURES.— exercised by an officer appointed by the Sec- Subsection (b) of section 2 of the National (1) EXTENSION OF PROTECTION PERIOD.—Sub- retary without the execution of any express del- Housing Act (12 U.S.C. 1703(b)), as amended by section (c) of section 303 of the Servicemembers egation of power or power of attorney. Nothing the preceding provisions of this title, is further Civil Relief Act (50 U.S.C. App. 533) is amended in this subsection shall be construed to prevent amended by adding at the end the following by striking ‘‘90 days’’ and inserting ‘‘9 months’’. the Secretary from delegating such power by new paragraph: (2) EXTENSION OF STAY OF PROCEEDINGS PE- order or by power of attorney, in the Secretary’s ‘‘(11) LEASEHOLD REQUIREMENTS.—No insur- RIOD.—Subsection (b) of such section is amended discretion, to any officer or agent the Secretary ance shall be granted under this section to any by striking ‘‘90 days’’ and inserting ‘‘9 months’’. may appoint.’’. such financial institution with respect to any (b) TREATMENT OF MORTGAGES AS OBLIGA- SEC. 148. REVISION OF UNDERWRITING CRITERIA. obligation representing any such loan, advance TIONS SUBJECT TO INTEREST RATE LIMITATION.— (a) IN GENERAL.—Subsection (b) of section 2 of of credit, or purchase by it, made for the pur- Section 207 of the Servicemembers Civil Relief the National Housing Act (12 U.S.C. 1703(b)), as poses of financing a manufactured home which Act (50 U.S.C. App. 527) is amended— amended by the preceding provisions of this is intended to be situated in a manufactured (1) in subsection (a)(1), by striking ‘‘in excess title, is further amended by adding at the end home community pursuant to a lease, unless of 6 percent’’ the second place it appears and all the following new paragraph: such lease— that follows and inserting ‘‘in excess of 6 per- ‘‘(10) FINANCIAL SOUNDNESS OF MANUFAC- ‘‘(A) expires not less than 3 years after the cent— TURED HOUSING PROGRAM.—The Secretary shall origination date of the obligation; ‘‘(A) during the period of military service and establish such underwriting criteria for loans ‘‘(B) is renewable upon the expiration of the one year thereafter, in the case of an obligation and advances of credit in connection with a original 3 year term by successive 1 year terms; or liability consisting of a mortgage, trust deed, manufactured home or a lot on which to place and or other security in the nature of a mortgage; or a manufactured home (or both), including such ‘‘(C) requires the lessor to provide the lessee ‘‘(B) during the period of military service, in loans and advances represented by obligations written notice of termination of the lease not the case of any other obligation or liability.’’; purchased by financial institutions, as may be less than 180 days prior to the expiration of the and (2) by striking subsection (d) and inserting the necessary to ensure that the program under this current lease term in the event the lessee is re- following new subsection: title for insurance for financial institutions quired to move due to the closing of the manu- factured home community, and further provides ‘‘(d) DEFINITIONS.—In this section: against losses from such loans, advances of ‘‘(1) INTEREST.—The term ‘interest’ includes that failure to provide such notice to the mort- credit, and purchases is financially sound.’’. service charges, renewal charges, fees, or any gagor in a timely manner will cause the lease (b) TIMING.—Not later than the expiration of other charges (except bona fide insurance) with term, at its expiration, to automatically renew the 6-month period beginning on the date of the respect to an obligation or liability. for an additional 1 year term.’’. enactment of this title, the Secretary of Housing ‘‘(2) OBLIGATION OR LIABILITY.—The term ‘ob- and Urban Development shall revise the existing TITLE II—MORTGAGE FORECLOSURE ligation or liability’ includes an obligation or li- underwriting criteria for the program referred to PROTECTIONS FOR SERVICEMEMBERS ability consisting of a mortgage, trust deed, or in paragraph (10) of section 2(b) of the National SEC. 201. TEMPORARY INCREASE IN MAXIMUM other security in the nature of a mortgage.’’. Housing Act (as added by subsection (a) of this LOAN GUARANTY AMOUNT FOR CER- (c) EFFECTIVE DATE; SUNSET.— section) in accordance with the requirements of TAIN HOUSING LOANS GUARANTEED (1) EFFECTIVE DATE.—The amendment made such paragraph. BY THE SECRETARY OF VETERANS by subsection (a) shall take effect on the date of SEC. 149. PROHIBITION AGAINST KICKBACKS AND AFFAIRS. the enactment of this Act. UNEARNED FEES. Notwithstanding subparagraph (C) of section (2) SUNSET.—The amendments made by sub- Title I of the National Housing Act is amend- 3703(a)(1) of title 38, United States Code, for section (a) shall expire on December 31, 2010. Ef- ed by adding at the end of section 9 the fol- purposes of any loan described in subparagraph fective January 1, 2011, the provisions of sub- lowing new section: (A)(i)(IV) of such section that is originated dur- sections (b) and (c) of section 303 of the

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00021 Fmt 4634 Sfmt 6333 E:\CR\FM\A08MY7.042 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3210 CONGRESSIONAL RECORD — HOUSE May 8, 2008 Servicemembers Civil Relief Act, as in effect on (B) purchase and rehabilitate homes and resi- to fair housing, nondiscrimination, labor stand- the day before the date of the enactment of this dential properties that have been abandoned or ards, and the environment) in accordance with Act, are hereby revived. foreclosed upon, in order to sell, rent, or rede- the terms of this section and for the sole purpose TITLE III—EMERGENCY ASSISTANCE FOR velop such homes and properties; of expediting the use of such funds. THE REDEVELOPMENT OF ABANDONED (C) establish land banks for homes that have (2) NOTICE.—The Secretary shall provide writ- AND FORECLOSED HOMES been foreclosed upon; and ten notice of its intent to exercise the authority (D) demolish blighted structures. to specify alternative requirements under para- SEC. 301. EMERGENCY ASSISTANCE FOR THE RE- (d) LIMITATIONS.— graph (1) to the Committee on Banking, Housing DEVELOPMENT OF ABANDONED AND (1) ON PURCHASES.—Any purchase of a fore- and Urban Affairs of the Senate and the Com- FORECLOSED HOMES. closed upon home or residential property under mittee on Financial Services of the House of (a) DIRECT APPROPRIATIONS.—There are ap- this section shall be at a discount from the cur- Representatives not later than 10 business days propriated out of any money in the Treasury rent market appraised value of the home or before such exercise of authority is to occur. not otherwise appropriated for the fiscal year property, taking into account its current condi- (3) LOW AND MODERATE INCOME REQUIRE- 2008, $4,000,000,000, to remain available until ex- tion, and such discount shall ensure that pur- MENT.— pended, for assistance to States and units of chasers are paying below-market value for the (A) IN GENERAL.—Notwithstanding the au- general local government (as such terms are de- home or property. thority of the Secretary under paragraph (1)— fined in section 102 of the Housing and Commu- (2) SALE OF HOMES.—If an abandoned or fore- (i) all of the funds appropriated or otherwise nity Development Act of 1974 (42 U.S.C. 5302)) closed upon home or residential property is pur- made available under this section shall be used for the redevelopment of abandoned and fore- chased, redeveloped, or otherwise sold to an in- with respect to individuals and families whose closed upon homes and residential properties. dividual as a primary residence, then such sale income does not exceed 120 percent of area me- (b) ALLOCATION OF APPROPRIATED shall be in an amount equal to or less than the dian income; and AMOUNTS.— cost to acquire and redevelop or rehabilitate (ii) not less than 25 percent of the funds ap- (1) IN GENERAL.—The amounts appropriated such home or property up to a decent, safe, and propriated or otherwise made available under or otherwise made available to States and units habitable condition. this section shall be used for the purchase and of general local government under this section (3) REINVESTMENT OF PROFITS.— redevelopment of abandoned or foreclosed upon shall be allocated based on a funding formula (A) PROFITS FROM SALES, RENTALS, AND REDE- homes or residential properties that will be used established by the Secretary of Housing and VELOPMENT.— to house individuals or families whose incomes Urban Development (in this title referred to as (i) 5-YEAR REINVESTMENT PERIOD.—During the do not exceed 50 percent of area median income. the ‘‘Secretary’’). 5-year period following the date of enactment of (B) RECURRENT REQUIREMENT.—The Secretary (2) FORMULA TO BE DEVISED SWIFTLY.—The this Act, any revenue generated from the sale, shall, by rule or order, ensure, to the maximum funding formula required under paragraph (1) rental, redevelopment, rehabilitation, or any extent practicable and for the longest feasible shall be established not later than 60 days after other eligible use that is in excess of the cost to term, that the sale, rental, or redevelopment of the date of enactment of this section. acquire and redevelop (including reasonable de- abandoned and foreclosed upon homes and resi- (3) CRITERIA.—The funding formula required velopment fees) or rehabilitate an abandoned or dential properties under this section remain af- under paragraph (1) shall ensure that any foreclosed upon home or residential property fordable to individuals or families described in amounts appropriated or otherwise made avail- shall be provided to and used by the State or subparagraph (A). able under this section are allocated to States unit of general local government in accordance (g) PERIODIC AUDITS.—In consultation with and units of general local government with the with, and in furtherance of, the intent and pro- the Secretary of Housing and Urban Develop- greatest need, as such need is determined in the visions of this section. ment, the Comptroller General of the United discretion of the Secretary based on— (ii) DEPOSITS IN THE TREASURY.— States shall conduct periodic audits to ensure (A) the number and percentage of home fore- (I) PROFITS.—Upon the expiration of the 5- that funds appropriated, made available, or oth- closures in each State or unit of general local year period set forth under clause (i), any rev- erwise distributed under this section are being government; enue generated from the sale, rental, redevelop- used in a manner consistent with the criteria (B) the number and percentage of homes fi- ment, rehabilitation, or any other eligible use provided in this section. nanced by a subprime mortgage related loan in that is in excess of the cost to acquire and rede- SEC. 302. NATIONWIDE DISTRIBUTION OF RE- each State or unit of general local government; velop (including reasonable development fees) or SOURCES. and rehabilitate an abandoned or foreclosed upon Notwithstanding any other provision of this (C) the number and percentage of homes in home or residential property shall be deposited Act or the amendments made by this Act, each default or delinquency in each State or unit of in the Treasury of the United States as miscella- State shall receive not less than 0.5 percent of general local government. neous receipts, unless the Secretary approves a funds made available under section 301 (relating (4) DISTRIBUTION.—Amounts appropriated or request to use the funds for purposes under this to emergency assistance for the redevelopment of otherwise made available under this section Act. abandoned and foreclosed homes). shall be distributed according to the funding (II) OTHER AMOUNTS.—Upon the expiration of SEC. 303. LIMITATION ON USE OF FUNDS WITH formula established by the Secretary under the 5-year period set forth under clause (i), any RESPECT TO EMINENT DOMAIN. paragraph (1) not later than 30 days after the other revenue not described under subclause (I) No State or unit of general local government establishment of such formula. generated from the sale, rental, redevelopment, may use any amounts received pursuant to sec- (c) USE OF FUNDS.— rehabilitation, or any other eligible use of an tion 301 to fund any project that seeks to use (1) IN GENERAL.—Any State or unit of general abandoned or foreclosed upon home or residen- the power of eminent domain, unless eminent local government that receives amounts pursu- tial property shall be deposited in the Treasury domain is employed only for a public use: Pro- ant to this section shall, not later than 18 of the United States as miscellaneous receipts. vided, That for purposes of this section, public months after the receipt of such amounts, use (B) OTHER REVENUES.—Any revenue generated use shall not be construed to include economic such amounts to purchase and redevelop aban- under subparagraphs (A), (C) or (D) of sub- development that primarily benefits private enti- doned and foreclosed homes and residential section (c)(3) shall be provided to and used by ties. properties. the State or unit of general local government in SEC. 304. LIMITATION ON DISTRIBUTION OF (2) PRIORITY.—Any State or unit of general accordance with, and in furtherance of, the in- FUNDS. (a) IN GENERAL.—None of the funds made local government that receives amounts pursu- tent and provisions of this section. available under this title or title IV shall be dis- ant to this section shall in distributing such (e) RULES OF CONSTRUCTION.— amounts give priority emphasis and consider- (1) IN GENERAL.—Except as otherwise provided tributed to— (1) an organization which has been indicted ation to those metropolitan areas, metropolitan by this section, amounts appropriated, revenues for a violation under Federal law relating to an cities, urban areas, rural areas, low- and mod- generated, or amounts otherwise made available election for Federal office; or erate-income areas, and other areas with the to States and units of general local government (2) an organization which employs applicable greatest need, including those— under this section shall be treated as though individuals. (A) with the greatest percentage of home fore- such funds were community development block (b) APPLICABLE INDIVIDUALS DEFINED.—In closures; grant funds under title I of the Housing and this section, the term ‘‘applicable individual’’ (B) with the highest percentage of homes fi- Community Development Act of 1974 (42 U.S.C. means an individual who— nanced by a subprime mortgage related loan; 5301 et seq.). (1) is— and (2) NO MATCH.—No matching funds shall be (A) employed by the organization in a perma- (C) identified by the State or unit of general required in order for a State or unit of general nent or temporary capacity; local government as likely to face a significant local government to receive any amounts under (B) contracted or retained by the organiza- rise in the rate of home foreclosures. this section. tion; or (3) ELIGIBLE USES.—Amounts made available (f) AUTHORITY TO SPECIFY ALTERNATIVE RE- (C) acting on behalf of, or with the express or under this section may be used to— QUIREMENTS.— apparent authority of, the organization; and (A) establish financing mechanisms for pur- (1) IN GENERAL.—In administering any (2) has been indicted for a violation under chase and redevelopment of foreclosed upon amounts appropriated or otherwise made avail- Federal law relating to an election for Federal homes and residential properties, including such able under this section, the Secretary may speci- office. mechanisms as soft-seconds, loan loss reserves, fy alternative requirements to any provision SEC. 305. COUNSELING INTERMEDIARIES. and shared-equity loans for low- and moderate- under title I of the Housing and Community De- Notwithstanding any other provision of this income homebuyers; velopment Act of 1974 (except for those related Act, the amount appropriated under section

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00022 Fmt 4634 Sfmt 6333 E:\CR\FM\A08MY7.043 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3211 301(a) of this Act shall be $3,920,000,000 and the (4) by inserting ‘‘, which shall be at least 7 ‘‘(iii) the creditor provides to the consumers at amount appropriated under section 401 of this business days before consummation of the trans- or before the time of such waiver or modifica- Act shall be $180,000,000: Provided, That of action’’ after ‘‘written application’’; tion, the final disclosures required by paragraph amounts appropriated under such section 401 (5) by striking ‘‘, whichever is earlier’’; and (1). $30,000,000 shall be used by the Neighborhood (6) by striking ‘‘If the’’ and all that follows ‘‘(G) The requirements of subparagraphs (B), Reinvestment Corporation (referred to in this through the end of the paragraph and inserting (C), (D) and (E) shall not apply to extensions of section as the ‘‘NRC’’) to make grants to coun- the following: credit relating to plans described in section seling intermediaries approved by the Depart- ‘‘(B) In the case of an extension of credit that 101(53D) of title 11, United States Code.’’. ment of Housing and Urban Development or the is secured by the dwelling of a consumer, the (b) CIVIL LIABILITY.—Section 130(a) of the NRC to hire attorneys to assist homeowners who disclosures provided under subparagraph (A), Truth in Lending Act (15 U.S.C. 1640(a)) is have legal issues directly related to the home- shall be in addition to the other disclosures re- amended— owner’s foreclosure, delinquency or short sale. quired by subsection (a), and shall— (1) in paragraph (2)(A)(iii), by striking ‘‘not Such attorneys shall be capable of assisting ‘‘(i) state in conspicuous type size and format, less than $200 or greater than $2,000’’ and in- homeowners of owner-occupied homes with the following: ‘You are not required to complete serting ‘‘not less than $400 or greater than mortgages in default, in danger of default, or this agreement merely because you have received $4,000’’; and subject to or at risk of foreclosure and who have these disclosures or signed a loan application.’; (2) in the penultimate sentence of the undesig- legal issues that cannot be handled by coun- and nated matter following paragraph (4)— selors already employed by such intermediaries: ‘‘(ii) be provided in the form of final disclo- (A) by inserting ‘‘or section 128(b)(2)(C)(ii),’’ Provided, That of the amounts provided for in sures at the time of consummation of the trans- after ‘‘128(a),’’; and the prior provisos the NRC shall give priority action, in the form and manner prescribed by (B) by inserting ‘‘or section 128(b)(2)(C)(ii)’’ consideration to counseling intermediaries and this section. before the period. legal organizations that (1) provide legal assist- ‘‘(C) In the case of an extension of credit that (c) EFFECTIVE DATES.— ance in the 100 metropolitan statistical areas (as is secured by the dwelling of a consumer, under (1) GENERAL DISCLOSURES.—Except as pro- defined by the Director of the Office of Manage- which the annual rate of interest is variable, or vided in paragraph (2), the amendments made ment and Budget) with the highest home fore- with respect to which the regular payments may by subsection (a) shall become effective 12 closure rates, and (2) have the capacity to begin otherwise be variable, in addition to the other months after the date of enactment of this Act. using the financial assistance within 90 days disclosures required by subsection (a), the dis- (2) VARIABLE INTEREST RATES.—Subparagraph after receipt of the assistance: Provided further, closures provided under this subsection shall do (C) of section 128(b)(2) of the Truth in Lending That no funds provided under this Act shall be the following: Act (15 U.S.C. 1638(b)(2)(C)), as added by sub- ‘‘(i) Label the payment schedule as follows: used to provide, obtain, or arrange on behalf of section (a) of this section, shall become effective ‘Payment Schedule: Payments Will Vary Based a homeowner, legal representation involving or on the earlier of— on Interest Rate Changes’. for the purposes of civil litigation. (A) the compliance date established by the ‘‘(ii) State in conspicuous type size and format Board for such purpose, by regulation; or TITLE IV—HOUSING COUNSELING examples of adjustments to the regular required (B) 30 months after the date of enactment of RESOURCES payment on the extension of credit based on the this Act. SEC. 401. HOUSING COUNSELING RESOURCES. change in the interest rates specified by the con- SEC. 503. COMMUNITY DEVELOPMENT INVEST- There are appropriated out of any money in tract for such extension of credit. Among the ex- MENT AUTHORITY FOR DEPOSITORY the Treasury not otherwise appropriated for the amples required to be provided under this clause INSTITUTIONS. fiscal year 2008, for an additional amount for is an example that reflects the maximum pay- (a) DEPOSITORY INSTITUTION COMMUNITY DE- the ‘‘Neighborhood Reinvestment Corporation— ment amount of the regular required payments VELOPMENT INVESTMENTS.— Payment to the Neighborhood Reinvestment on the extension of credit, based on the max- (1) NATIONAL BANKS.—The first sentence of Corporation’’ $100,000,000, to remain available imum interest rate allowed under the contract, the paragraph designated as the ‘‘Eleventh’’ of until September 30, 2008, for foreclosure mitiga- in accordance with the rules of the Board. Prior section 5136 of the Revised Statutes of the tion activities under the terms and conditions to issuing any rules pursuant to this clause, the United States (12 U.S.C. 24) (as amended by sec- contained in the second undesignated para- Board shall conduct consumer testing to deter- tion 305(a) of the Financial Services Regulatory graph (beginning with the phrase ‘‘For an addi- mine the appropriate format for providing the Relief Act of 2006) is amended by striking ‘‘pro- tional amount’’) under the heading ‘‘Neighbor- disclosures required under this subparagraph to motes the public welfare by benefitting pri- hood Reinvestment Corporation—Payment to consumers so that such disclosures can be easily marily’’ and inserting ‘‘is designed primarily to the Neighborhood Reinvestment Corporation’’ of understood. promote the public welfare, including the wel- Public Law 110–161. ‘‘(D) In any case in which the disclosure fare of’’. SEC. 402. CREDIT COUNSELING. statement under subparagraph (A) contains an (2) STATE MEMBER BANKS.—The first sentence (a) IN GENERAL.—Entities approved by the annual percentage rate of interest that is no of the 23rd paragraph of section 9 of the Federal Neighborhood Reinvestment Corporation or the longer accurate, as determined under section Reserve Act (12 U.S.C. 338a) is amended by Secretary and State housing finance entities re- 107(c), the creditor shall furnish an additional, striking ‘‘promotes the public welfare by benefit- ceiving funds under this title shall work to iden- corrected statement to the borrower, not later ting primarily’’ and inserting ‘‘is designed pri- tify and coordinate with non-profit organiza- than 3 business days before the date of con- marily to promote the public welfare, including tions operating national or statewide toll-free summation of the transaction. the welfare of’’. foreclosure prevention hotlines, including those ‘‘(E) The consumer shall receive the disclo- SEC. 504. FEDERAL HOME LOAN BANK REFI- that— sures required under this paragraph before pay- NANCING AUTHORITY FOR CERTAIN (1) serve as a consumer referral source and ing any fee to the creditor or other person in RESIDENTIAL MORTGAGE LOANS. data repository for borrowers experiencing some connection with the consumer’s application for Section 10(j)(2) of the Federal Home Loan form of delinquency or foreclosure; an extension of credit that is secured by the Bank Act (12 U.S.C. 1430(j)(2) is amended— (2) connect callers with local housing coun- dwelling of a consumer. If the disclosures are (1) in subparagraph (A), by striking ‘‘or’’ at seling agencies approved by the Neighborhood mailed to the consumer, the consumer is consid- the end; Reinvestment Corporation or the Secretary to ered to have received them 3 business days after (2) in subparagraph (B), by striking the period assist with working out a positive resolution to they are mailed. A creditor or other person may at the end and inserting ‘‘; or’’; and their mortgage delinquency or foreclosure; or impose a fee for obtaining the consumer’s credit (3) by adding at the end the following: (3) facilitate or offer free assistance to help report before the consumer has received the dis- ‘‘(C) during the 2-year period beginning on homeowners to understand their options, nego- closures under this paragraph, provided the fee the date of enactment of this subparagraph, re- tiate solutions, and find the best resolution for is bona fide and reasonable in amount. finance loans that are secured by a first mort- their particular circumstances. ‘‘(F) WAIVER OF TIMELINESS OF DISCLO- gage on a primary residence of any family hav- TITLE V—MORTGAGE DISCLOSURE SURES.—To expedite consummation of a trans- ing an income at or below 80 percent of the me- IMPROVEMENT ACT action, if the consumer determines that the ex- dian income for the area.’’. SEC. 501. SHORT TITLE. tension of credit is needed to meet a bona fide TITLE VI—TAX-RELATED PROVISIONS This title may be cited as the ‘‘Mortgage Dis- personal financial emergency, the consumer may SEC. 601. ELECTION FOR 4-YEAR CARRYBACK OF closure Improvement Act of 2008’’. waive or modify the timing requirements for dis- CERTAIN NET OPERATING LOSSES SEC. 502. ENHANCED MORTGAGE LOAN DISCLO- closures under subparagraph (A), provided AND TEMPORARY SUSPENSION OF 90 SURES. that— PERCENT AMT LIMIT. (a) TRUTH IN LENDING ACT DISCLOSURES.— ‘‘(i) the term ‘bona fide personal emergency’ (a) IN GENERAL.— Section 128(b)(2) of the Truth in Lending Act (15 may be further defined in regulations issued by (1) 4-YEAR CARRYBACK OF CERTAIN LOSSES.— U.S.C. 1638(b)(2)) is amended— the Board; Subparagraph (H) of section 172(b)(1) of the In- (1) by inserting ‘‘(A)’’ before ‘‘In the’’; ‘‘(ii) the consumer provides to the creditor a ternal Revenue Code of 1986 (relating to years to (2) by striking ‘‘a residential mortgage trans- dated, written statement describing the emer- which loss may be carried) is amended to read action, as defined in section 103(w)’’ and insert- gency and specifically waiving or modifying as follows: ing ‘‘any extension of credit that is secured by those timing requirements, which statement ‘‘(H) ADDITIONAL CARRYBACK OF CERTAIN the dwelling of a consumer’’; shall bear the signature of all consumers enti- LOSSES.— (3) by striking ‘‘before the credit is extended, tled to receive the disclosures required by this ‘‘(i) TAXABLE YEARS ENDING DURING 2001 AND or’’; paragraph; and 2002.—In the case of a net operating loss for any

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00023 Fmt 4634 Sfmt 6333 E:\CR\FM\A08MY7.043 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3212 CONGRESSIONAL RECORD — HOUSE May 8, 2008 taxable year ending during 2001 or 2002, sub- cluded in section 103 of the Economic Stimulus ‘‘(ii) in the case of a possession of the United paragraph (A)(i) shall be applied by sub- Act of 2008. States with a population less than the least pop- stituting ‘5’ for ‘2’ and subparagraph (F) shall (2) ELECTION FOR INCREASED EXPENSING.— ulous State (other than a possession), the prod- not apply. (A) IN GENERAL.—Paragraph (7) of section uct of— ‘‘(ii) TAXABLE YEARS ENDING DURING 2008 AND 179(b) of the Internal Revenue Code of 1986 (re- ‘‘(I) a fraction the numerator of which is 2009.—In the case of a net operating loss with re- lating to limitations), as added by the Economic $90,300,606 and the denominator of which is spect to any eligible taxpayer (within the mean- Stimulus Act of 2008, is amended to read as fol- population of the least populous State (other ing of section 168(k)(4)) for any taxable year lows: than a possession), and ending during 2008 or 2009— ‘‘(7) SPECIAL RULE FOR ELIGIBLE TAXPAYERS IN ‘‘(II) the population of such possession. ‘‘(I) subparagraph (A)(i) shall be applied by 2008.—In the case of any taxable year of any eli- In the case of any possession of the United substituting ‘4’ for ‘2’, gible taxpayer (within the meaning of section States not described in clause (ii), the amount ‘‘(II) subparagraph (E)(ii) shall be applied by 168(k)(4)) beginning in 2008— determined under this subparagraph shall be substituting ‘3’ for ‘2’, and ‘‘(A) the dollar limitation under paragraph (1) zero. ‘‘(III) subparagraph (F) shall not apply.’’. shall be $250,000, ‘‘(C) SET ASIDE.— (2) TEMPORARY SUSPENSION OF 90 PERCENT ‘‘(B) the dollar limitation under paragraph (2) ‘‘(i) IN GENERAL.—Any amount of the State LIMIT ON CERTAIN NOL CARRYBACKS AND shall be $800,000, and ceiling for any State which is attributable to an CARRYOVERS.— ‘‘(C) the amounts described in subparagraphs increase under this paragraph shall be allocated (A) IN GENERAL.—Section 56(d) of the Internal (A) and (B) shall not be adjusted under para- solely for one or more qualified purposes. Revenue Code of 1986 (relating to definition of graph (5).’’. ‘‘(ii) QUALIFIED PURPOSE.—For purposes of alternative tax net operating loss deduction) is (B) EFFECTIVE DATE.—The amendment made this paragraph, the term ‘qualified purpose’ amended by adding at the end the following by this paragraph shall take effect as if in- means— new paragraph: cluded in section 102 of the Economic Stimulus ‘‘(I) the issuance of exempt facility bonds used ‘‘(3) ADDITIONAL ADJUSTMENTS.—For purposes Act of 2008. solely to provide qualified residential rental of paragraph (1)(A), in the case of an eligible SEC. 602. MODIFICATIONS ON USE OF QUALIFIED projects, or taxpayer (within the meaning of section MORTGAGE BONDS; TEMPORARY IN- ‘‘(II) a qualified mortgage issue (determined 168(k)(4)), the amount described in subclause (I) CREASED VOLUME CAP FOR CER- by substituting ‘12-month period’ for ‘42-month of paragraph (1)(A)(ii) shall be increased by the TAIN HOUSING BONDS. period’ each place it appears in section (a) USE OF QUALIFIED MORTGAGE BONDS PRO- amount of the net operating loss deduction al- 143(a)(2)(D)(i)).’’. CEEDS FOR UBPRIME EFINANCING OANS lowable for the taxable year under section 172 S R L .—Sec- (2) CARRYFORWARD OF UNUSED LIMITATIONS.— attributable to the sum of— tion 143(k) of the Internal Revenue Code of 1986 Subsection (f) of section 146 of such Code (relat- ‘‘(A) carrybacks of net operating losses from (relating to other definitions and special rules) ing to elective carryforward of unused limitation taxable years ending during 2008 and 2009, and is amended by adding at the end the following for specified purpose) is amended by adding at ‘‘(B) carryovers of net operating losses to tax- new paragraph: the end the following new paragraph: PECIAL RULES FOR SUBPRIME able years ending during 2008 or 2009.’’. ‘‘(12) S ‘‘(6) SPECIAL RULES FOR INCREASED VOLUME ONFORMING AMENDMENT REFINANCINGS (B) C .—Subclause (I) .— CAP UNDER SUBSECTION (d)(5).— N GENERAL of section 56(d)(1)(A)(i) of such Code is amended ‘‘(A) I .—Notwithstanding the re- ‘‘(A) IN GENERAL.—No amount which is attrib- by inserting ‘‘amount of such’’ before ‘‘deduc- quirements of subsection (i)(1), the proceeds of a utable to the increase under subsection (d)(5) tion described in clause (ii)(I)’’. qualified mortgage issue may be used to refi- may be used— (3) EFFECTIVE DATES.— nance a mortgage on a residence which was ‘‘(i) for a carryforward purpose other than a (A) NET OPERATING LOSSES.—The amendments originally financed by the mortgagor through a qualified purpose (as defined in subsection made by paragraph (1) shall apply to net oper- qualified subprime loan. (d)(5)), and ating losses arising in taxable years ending in ‘‘(B) SPECIAL RULES.—In applying this para- ‘‘(ii) to issue any bond after calendar year 2008 or 2009. graph to any case in which the proceeds of a 2010. (B) SUSPENSION OF AMT LIMITATION.—The qualified mortgage issue are used for any refi- ‘‘(B) ORDERING RULES.—For purposes of sub- amendments made by paragraph (2) shall apply nancing described in subparagraph (A)— paragraph (A), any carryforward of an issuing to taxable years ending after December 31, 1997. ‘‘(i) subsection (a)(2)(D)(i) (relating to pro- authority’s volume cap for calendar year 2008 (4) ANTI-ABUSE RULES.—The Secretary of ceeds must be used within 42 months of date of shall be treated as attributable to such increase Treasury or the Secretary’s designee shall pre- issuance) shall be applied by substituting ‘12- to the extent of such increase.’’. scribe such rules as are necessary to prevent the month period’ for ‘42-month period’ each place (c) ALTERNATIVE MINIMUM TAX EXEMPTION abuse of the purposes of the amendments made it appears, FOR QUALIFIED MORTGAGE BONDS, QUALIFIED by this subsection, including anti-stuffing rules, ‘‘(ii) subsection (d) (relating to 3-year require- VETERANS’ MORTGAGE BONDS, AND BONDS FOR anti-churning rules (including rules relating to ment) shall not apply, and QUALIFIED RESIDENTIAL RENTAL PROJECTS.— sale-leasebacks), and rules similar to the rules ‘‘(iii) subsection (e) (relating to purchase price (1) IN GENERAL.—Clause (ii) of section under section 1091 of the Internal Revenue Code requirement) shall be applied by using the mar- 57(a)(5)(C) of the Internal Revenue Code of 1986 of 1986 relating to losses from wash sales. ket value of the residence at the time of refi- (relating to specified private activity bonds) is (b) ELECTION AMONG STIMULUS INCENTIVES.— nancing in lieu of the acquisition cost. amended by striking ‘‘shall not include’’ and all (1) IN GENERAL.— ‘‘(C) QUALIFIED SUBPRIME LOAN.—The term that follows and inserting ‘‘shall not include— (A) BONUS DEPRECIATION.—Section 168(k) of ‘qualified subprime loan’ means an adjustable ‘‘(I) any qualified 501(c)(3) bond (as defined the Internal Revenue Code of 1986 (relating to rate single-family residential mortgage loan in section 145), or special allowance for certain property acquired originated after December 31, 2001, and before ‘‘(II) any qualified mortgage bond (as defined after December 31, 2007, and before January 1, January 1, 2008, that the bond issuer determines in section 143(a)), any qualified veterans’ mort- 2009), as amended by the Economic Stimulus Act would be reasonably likely to cause financial gage bond (as defined in section 143(b)), or any of 2008, is amended— hardship to the borrower if not refinanced. exempt facility bond (as defined in section (i) in paragraph (1), by inserting ‘‘placed in ‘‘(D) TERMINATION.—This paragraph shall not 142(a)) issued as part of an issue 95 percent or service by an eligible taxpayer’’ after ‘‘any apply to any bonds issued after December 31, more of the net proceeds of which are to be used qualified property’’, and 2010.’’. to provide qualified residential rental projects (ii) by adding at the end the following new (b) INCREASED VOLUME CAP FOR CERTAIN (as defined in section 142(d)), but only if such paragraph: BONDS.— bond is issued after the date of the enactment of ‘‘(4) ELIGIBLE TAXPAYER.— (1) IN GENERAL.—Subsection (d) of section 146 this subclause and before January 1, 2011. ‘‘(A) IN GENERAL.—At such time and in such of the Internal Revenue Code of 1986 (relating to manner as the Secretary shall prescribe, each State ceiling) is amended by adding at the end Subclause (II) shall not apply to a refunding taxpayer may elect to be an eligible taxpayer the following new paragraph: bond unless such subclause applied to the re- with respect to 1 (and only 1) of the following: ‘‘(5) INCREASE AND SET ASIDE FOR HOUSING funded bond (or in the case of a series of ‘‘(i) This subsection and section 179(b)(7). BONDS FOR 2008.— refundings, the original bond).’’. ‘‘(ii) The application of section ‘‘(A) INCREASE FOR 2008.—In the case of cal- (2) CONFORMING AMENDMENT.—The heading 56(d)(1)(A)(ii)(I) and section 172(b)(1)(H)(ii) in endar year 2008, the State ceiling for each State for section 57(a)(5)(C)(ii) of such Code is amend- connection with net operating losses relating to shall be increased by an amount equal to the ed by striking ‘‘QUALIFIED 501(c)(3) BONDS’’ and taxable years ending during 2008 and 2009. greater of— inserting ‘‘CERTAIN BONDS’’. ‘‘(B) ELIGIBLE TAXPAYER.—For purposes of ‘‘(i) $10,000,000,000 multiplied by a fraction— (d) EFFECTIVE DATE.—The amendments made each of the provisions described in subpara- ‘‘(I) the numerator of which is the population by this section shall apply to bonds issued after graph (A), a taxpayer shall only be treated as of such State, and the date of the enactment of this Act. an eligible taxpayer with respect to the provi- ‘‘(II) the denominator of which is the total SEC. 603. CREDIT FOR CERTAIN HOME PUR- sion with respect to which the taxpayer made population of all States, or CHASES. the election under subparagraph (A). ‘‘(ii) the amount determined under subpara- (a) ALLOWANCE OF CREDIT.—Subpart A of ‘‘(C) ELECTION IRREVOCABLE.—An election graph (B). part IV of subchapter A of chapter 1 of the In- under subparagraph (A) may not be revoked ex- ‘‘(B) MINIMUM AMOUNT.—The amount deter- ternal Revenue Code of 1986 (relating to non- cept with the consent of the Secretary.’’. mined under this subparagraph is— refundable personal credits) is amended by in- (B) EFFECTIVE DATE.—The amendments made ‘‘(i) in the case of a State (other than a pos- serting after section 25D the following new sec- by this paragraph shall take effect as if in- session), $90,300,606, and tion:

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00024 Fmt 4634 Sfmt 6333 E:\CR\FM\A08MY7.043 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3213

‘‘SEC. 25E. CREDIT FOR CERTAIN HOME PUR- ‘‘(e) RECAPTURE IN THE CASE OF CERTAIN DIS- same manner as the provisions of such Act to CHASES. POSITIONS.—In the event that a taxpayer— which such amendment relates. ‘‘(a) ALLOWANCE OF CREDIT.— ‘‘(1) disposes of the qualified principal resi- SEC. 604. ADDITIONAL STANDARD DEDUCTION ‘‘(1) IN GENERAL.—In the case of an individual dence with respect to which a credit is allowed FOR REAL PROPERTY TAXES FOR who is a purchaser of a qualified principal resi- under subsection (a), or NONITEMIZERS. dence during the taxable year, there shall be al- ‘‘(2) fails to occupy such residence as the tax- (a) IN GENERAL.—Section 63(c)(1) of the Inter- lowed as a credit against the tax imposed by this payer’s principal residence, nal Revenue Code of 1986 (defining standard de- chapter an amount equal to so much of the pur- at any time within 24 months after the date on duction) is amended by striking ‘‘and’’ at the chase price of the residence as does not exceed which the taxpayer purchased such residence, end of subparagraph (A), by striking the period $7,000. then the remaining portion of the credit allowed at the end of subparagraph (B) and inserting ‘‘, ‘‘(2) ALLOCATION OF CREDIT AMOUNT.—The under subsection (a) shall be disallowed in the and’’, and by adding at the end the following amount of the credit allowed under paragraph taxable year during which such disposition oc- new subparagraph: ‘‘(C) in the case of any taxable year beginning (1) shall be equally divided among the 2 taxable curred or in which the taxpayer failed to occupy in 2008, the real property tax deduction.’’. years beginning with the taxable year in which the residence as a principal residence, and in (b) DEFINITION.—Section 63(c) of the Internal the purchase of the qualified principal residence any subsequent taxable year in which the re- Revenue Code of 1986 is amended by adding at is made. maining portion of the credit would, but for this the end the following new paragraph: ‘‘(b) LIMITATIONS.— subsection, have been allowed. ‘‘(1) DATE OF PURCHASE.—The credit allowed ‘‘(8) REAL PROPERTY TAX DEDUCTION.— ‘‘(f) SPECIAL RULES.— under subsection (a) shall be allowed only with ‘‘(A) IN GENERAL.—For purposes of paragraph ‘‘(1) JOINT PURCHASE.— (1), the real property tax deduction is so much respect to purchases made— ‘‘(A) MARRIED INDIVIDUALS FILING SEPA- ‘‘(A) after the date of the enactment of this of the amount of the eligible State and local real RATELY.—In the case of 2 married individuals property taxes paid or accrued by the taxpayer section, and filing separately, subsection (a) shall be applied ‘‘(B) before the date that is 12 months after during the taxable year which do not exceed to each such individual by substituting ‘$3,500’ $500 ($1,000 in the case of a joint return). such date. for ‘$7,000’ in paragraph (1) thereof. ‘‘(2) LIMITATION BASED ON AMOUNT OF TAX.— ‘‘(B) ELIGIBLE STATE AND LOCAL REAL PROP- ‘‘(B) UNMARRIED INDIVIDUALS.—If 2 or more In the case of a taxable year to which section ERTY TAXES.—For purposes of subparagraph individuals who are not married purchase a (A), the term ‘eligible State and local real prop- 26(a)(2) does not apply, the credit allowed under qualified principal residence, the amount of the subsection (a) for any taxable year shall not ex- erty taxes’ means State and local real property credit allowed under subsection (a) shall be allo- taxes (within the meaning of section 164), but ceed the excess of— cated among such individuals in such manner ‘‘(A) the sum of the regular tax liability (as only if the rate of tax for all residential real as the Secretary may prescribe, except that the defined in section 26(b)) plus the tax imposed by property taxes in the jurisdiction has not been total amount of the credits allowed to all such section 55, over increased at any time after April 2, 2008, and be- individuals shall not exceed $7,000. ‘‘(B) the sum of the credits allowable under fore January 1, 2009.’’. ‘‘(2) PURCHASE; PURCHASE PRICE.—Rules simi- this subpart (other than this section and section (c) EFFECTIVE DATE.—The amendments made lar to the rules of paragraphs (2) and (3) of sec- 23) for the taxable year. by this section shall apply to taxable years be- tion 1400C(e) (as in effect on the date of the en- ‘‘(3) ONE-TIME ONLY.— ginning after December 31, 2007. actment of this section) shall apply for purposes ‘‘(A) IN GENERAL.—If a credit is allowed under SEC. 605. ELECTION TO ACCELERATE AMT AND R of this section. this section in the case of any individual (and AND D CREDITS IN LIEU OF BONUS ‘‘(3) REPORTING REQUIREMENT.—Rules similar such individual’s spouse, if married) with re- DEPRECIATION. to the rules of section 1400C(f) (as so in effect) spect to the purchase of any qualified principal (a) IN GENERAL.—Section 168(k), as amended shall apply for purposes of this section. residence, no credit shall be allowed under this by this Act, is amended by adding at the end the ‘‘(g) BASIS ADJUSTMENT.—For purposes of this section in any taxable year with respect to the following new paragraph: subtitle, if a credit is allowed under this section ‘‘(5) ELECTION TO ACCELERATE AMT AND R AND purchase of any other qualified principal resi- with respect to the purchase of any residence, D CREDITS IN LIEU OF BONUS DEPRECIATION.— dence by such individual or a spouse of such in- the basis of such residence shall be reduced by ‘‘(A) IN GENERAL.—If a corporation which is dividual. the amount of the credit so allowed.’’. an eligible taxpayer (within the meaning of ‘‘(B) JOINT PURCHASE.—In the case of a pur- (b) CONFORMING AMENDMENTS.— paragraph (4)) for purposes of this subsection chase of a qualified principal residence by 2 or (1) Section 24(b)(3)(B) of the Internal Revenue elects to have this paragraph apply— more unmarried individuals or by 2 married in- Code of 1986 is amended by striking ‘‘and 25B’’ ‘‘(i) no additional depreciation shall be al- dividuals filing separately, no credit shall be al- and inserting ‘‘, 25B, and 25E’’. lowed under paragraph (1) for any qualified lowed under this section if a credit under this (2) Section 25(e)(1)(C)(ii) of such Code is property placed in service during any taxable section has been allowed to any of such individ- amended by inserting ‘‘25E,’’ after ‘‘25D,’’. year to which paragraph (1) would otherwise uals in any taxable year with respect to the pur- (3) Section 25B(g)(2) of such Code is amended apply, and chase of any other qualified principal residence. by striking ‘‘section 23’’ and inserting ‘‘sections ‘‘(ii) the limitations described in subparagraph ‘‘(c) QUALIFIED PRINCIPAL RESIDENCE.—For 23 and 25E’’. (B) for such taxable year shall be increased by purposes of this section— (4) Section 25D(c)(2) of such Code is amended an aggregate amount not in excess of the bonus ‘‘(1) IN GENERAL.—The term ‘qualified prin- by striking ‘‘and 25B’’ and inserting ‘‘25B, and depreciation amount for such taxable year. cipal residence’ means an eligible single-family 25E’’. ‘‘(B) LIMITATIONS TO BE INCREASED.—The lim- residence that is purchased to be the principal (5) Section 26(a)(1) of such Code is amended itations described in this subparagraph are— residence of the purchaser. by striking ‘‘and 25B’’ and inserting ‘‘25B, and ‘‘(i) the limitation under section 38(c), and ‘‘(2) ELIGIBLE SINGLE-FAMILY RESIDENCE.— 25E’’. ‘‘(ii) the limitation under section 53(c). ‘‘(A) IN GENERAL.—The term ‘eligible single- (6) Section 904(i) of such Code is amended by ‘‘(C) BONUS DEPRECIATION AMOUNT.—For pur- family residence’ means a single-family struc- striking ‘‘and 25B’’ and inserting ‘‘25B, and poses of this paragraph— ture that is a residence— 25E’’. ‘‘(i) IN GENERAL.—The bonus depreciation ‘‘(i) upon which foreclosure has been filed (7) Subsection (a) of section 1016 of such Code amount for any applicable taxable year is an pursuant to the laws of the State in which the is amended by striking ‘‘and’’ at the end of amount equal to the product of 20 percent and residence is located, and paragraph (36), by striking the period at the end the excess (if any) of— ‘‘(ii) which— of paragraph (37) and inserting ‘‘, and’’, and by ‘‘(I) the aggregate amount of depreciation ‘‘(I) is a new previously unoccupied residence adding at the end the following new paragraph: which would be determined under this section for which a building permit was issued and con- ‘‘(38) to the extent provided in section for property placed in service during the taxable struction began on or before September 1, 2007, 25E(g).’’. year if no election under this paragraph were or (8) Section 1400C(d)(2) of such Code is amend- made, over ‘‘(II) was occupied as a principal residence by ed by striking ‘‘and 25D’’ and inserting ‘‘25D, ‘‘(II) the aggregate amount of depreciation al- the mortgagor for at least 1 year prior to the and 25E’’. lowable under this section for property placed in foreclosure filing. (c) CLERICAL AMENDMENT.—The table of sec- service during the taxable year. ‘‘(B) CERTIFICATION.—In the case of an eligi- tions for subpart A of part IV of subchapter A In the case of property which is a passenger air- ble single-family residence described in subpara- of chapter 1 of the Internal Revenue Code of craft, the amount determined under subclause graph (A)(ii)(I), no credit shall be allowed under 1986 is amended by inserting after the item relat- (I) shall be calculated without regard to the this section unless the purchaser submits a cer- ing to section 25D the following new item: written binding contract limitation under para- tification by the seller of such residence that graph (2)(A)(iii)(I). such residence meets the requirements of such ‘‘Sec. 25E. Credit for certain home purchases.’’. ‘‘(ii) ELIGIBLE QUALIFIED PROPERTY.—For subparagraph. (d) EFFECTIVE DATE.—The amendments made purposes of clause (i), the term ‘eligible qualified ‘‘(3) PRINCIPAL RESIDENCE.—The term ‘prin- by this section shall apply to purchases in tax- property’ means qualified property under para- cipal residence’ has the same meaning as when able years ending after the date of the enact- graph (2), except that in applying paragraph (2) used in section 121. ment of this Act. for purposes of this clause— ‘‘(d) DENIAL OF DOUBLE BENEFIT.—No credit (e) APPLICATION OF EGTRRA SUNSET.—The ‘‘(I) ‘March 31, 2008’ shall be substituted for shall be allowed under this section for any pur- amendment made by subsection (b)(1) shall be ‘December 31, 2007’ each place it appears in sub- chase for which a credit is allowed under sec- subject to title IX of the Economic Growth and paragraph (A) and clauses (i) and (ii) of sub- tion 1400C. Tax Relief Reconciliation Act of 2001 in the paragraph (E) thereof,

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00025 Fmt 4634 Sfmt 6333 E:\CR\FM\A08MY7.043 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3214 CONGRESSIONAL RECORD — HOUSE May 8, 2008 ‘‘(II) only adjusted basis attributable to man- if a taxpayer claims a deduction for any taxable (C) only with respect to eligible employers who ufacture, construction, or production after year with respect to a casualty loss to a per- employed an average of not more than 200 em- March 31, 2008, and before January 1, 2009, sonal residence (within the meaning of section ployees on business days during the taxable shall be taken into account under subparagraph 121 of such Code) resulting from Hurricane year before May 4, 2007. (B)(ii) thereof, and Katrina, Hurricane Rita, or Hurricane Wilma (4) SPECIAL ALLOWANCE FOR CERTAIN PROP- ‘‘(III) in the case of property which is a pas- and in a subsequent taxable year receives a ERTY ACQUIRED ON OR AFTER MAY 5, 2007.—Sec- senger aircraft, the written binding contract grant under Public Law 109–148, 109–234, or 110– tion 1400N(d) of such Code— limitation under subparagraph (A)(iii)(I) thereof 116 as reimbursement for such loss, such tax- (A) by substituting ‘‘qualified Recovery As- shall not apply. payer may elect to file an amended income tax sistance property’’ for ‘‘qualified Gulf Oppor- ‘‘(iii) MAXIMUM AMOUNT.—The bonus depre- return for the taxable year in which such de- tunity Zone property’’ each place it appears, ciation amount for any applicable taxable year duction was allowed and disallow such deduc- (B) by substituting ‘‘May 5, 2007’’ for ‘‘August shall not exceed the applicable limitation under tion. If elected, such amended return must be 28, 2005’’ each place it appears, clause (iv), reduced (but not below zero) by the filed not later than the due date for filing the (C) by substituting ‘‘December 31, 2008’’ for bonus depreciation amount for any preceding tax return for the taxable year in which the tax- ‘‘December 31, 2007’’ in paragraph (2)(A)(v), taxable year. payer receives such reimbursement or the date (D) by substituting ‘‘December 31, 2009’’ for ‘‘(iv) APPLICABLE LIMITATION.—For purposes that is 4 months after the date of the enactment ‘‘December 31, 2008’’ in paragraph (2)(A)(v), of clause (iii), the term ‘applicable limitation’ (E) by substituting ‘‘May 4, 2007’’ for ‘‘August of this Act, whichever is later. Any increase in means, with respect to any eligible taxpayer, the 27, 2005’’ in paragraph (3)(A), Federal income tax resulting from such dis- lesser of— (F) by substituting ‘‘January 1, 2009’’ for allowance if such amended return is filed— ‘‘(I) $40,000,000, or ‘‘January 1, 2008’’ in paragraph (3)(B), and (1) shall be subject to interest on the under- ‘‘(II) 10 percent of the sum of the amounts de- (G) determined without regard to paragraph paid tax for one year at the underpayment rate termined with respect to the eligible taxpayer (6) thereof. determined under section 6621(a)(2) of such under clauses (ii) and (iii) of subparagraph (D). (5) INCREASE IN EXPENSING UNDER SECTION Code; and ‘‘(v) AGGREGATION RULE.—All corporations 179.—Section 1400N(e) of such Code, by sub- (2) shall not be subject to any penalty under which are treated as a single employer under stituting ‘‘qualified section 179 Recovery Assist- such Code. section 52(a) shall be treated as 1 taxpayer for ance property’’ for ‘‘qualified section 179 Gulf (b) EMERGENCY DESIGNATION.—For purposes purposes of applying the limitation under this Opportunity Zone property’’ each place it ap- of Senate enforcement, all provisions of this sec- subparagraph and determining the applicable pears. tion are designated as emergency requirements limitation under clause (iv). (6) EXPENSING FOR CERTAIN DEMOLITION AND and necessary to meet emergency needs pursu- ‘‘(D) ALLOCATION OF BONUS DEPRECIATION CLEAN-UP COSTS.—Section 1400N(f) of such ant to section 204 of S. Con. Res. 21 (110th Con- AMOUNTS.— Code— ‘‘(i) IN GENERAL.—Subject to clauses (ii) and gress), the concurrent resolution on the budget (A) by substituting ‘‘qualified Recovery As- (iii), the taxpayer shall, at such time and in for fiscal year 2008. sistance clean-up cost’’ for ‘‘qualified Gulf Op- such manner as the Secretary may prescribe, SEC. 607. WAIVER OF DEADLINE ON CONSTRUC- portunity Zone clean-up cost’’ each place it ap- specify the portion (if any) of the bonus depre- TION OF GO ZONE PROPERTY ELIGI- pears, and ciation amount which is to be allocated to each BLE FOR BONUS DEPRECIATION. (B) by substituting ‘‘beginning on May 4, (a) IN GENERAL.—Subparagraph (B) of section of the limitations described in subparagraph 2007, and ending on December 31, 2009’’ for ‘‘be- 1400N(d)(3) of the Internal Revenue Code of 1986 (B). ginning on August 28, 2005, and ending on De- ‘‘(ii) BUSINESS CREDIT LIMITATION.—The por- is amended to read as follows: cember 31, 2007’’ in paragraph (2) thereof. tion of the bonus depreciation amount allocated ‘‘(B) without regard to ‘and before January 1, (7) TREATMENT OF PUBLIC UTILITY PROPERTY to the limitation described in subparagraph 2009’ in clause (i) thereof,’’. DISASTER LOSSES.—Section 1400N(o) of such (b) EFFECTIVE DATE.—The amendment made (B)(i) shall not exceed an amount equal to the Code. by this section shall apply to property placed in portion of the credit allowable under section 38 (8) TREATMENT OF NET OPERATING LOSSES AT- for the taxable year which is allocable to busi- service after December 31, 2007. TRIBUTABLE TO STORM LOSSES.—Section 1400N(k) (c) EMERGENCY DESIGNATION.—For purposes ness credit carryforwards to such taxable year of such Code— which are— of Senate enforcement, all provisions of this sec- (A) by substituting ‘‘qualified Recovery As- ‘‘(I) from taxable years beginning before Janu- tion are designated as emergency requirements sistance loss’’ for ‘‘qualified Gulf Opportunity ary 1, 2006, and and necessary to meet emergency needs pursu- Zone loss’’ each place it appears, ‘‘(II) properly allocable (determined under the ant to section 204 of S. Con. Res. 21 (110th Con- (B) by substituting ‘‘after May 3, 2007, and rules of section 38(d)) to the research credit de- gress), the concurrent resolution on the budget before on January 1, 2010’’ for ‘‘after August 27, termined under section 41(a). for fiscal year 2008. 2005, and before January 1, 2008’’ each place it ‘‘(iii) ALTERNATIVE MINIMUM TAX CREDIT LIMI- SEC. 608. TEMPORARY TAX RELIEF FOR KIOWA appears, TATION.—The portion of the bonus depreciation COUNTY, KANSAS AND SUR- (C) by substituting ‘‘May 4, 2007’’ for ‘‘August amount allocated to the limitation described in ROUNDING AREA. 28, 2005’’ in paragraph (2)(B)(ii)(I) thereof, subparagraph (B)(ii) shall not exceed an (a) IN GENERAL.—The following provisions of (D) by substituting ‘‘qualified Recovery As- amount equal to the portion of the minimum tax or relating to the Internal Revenue Code of 1986 sistance property’’ for ‘‘qualified Gulf Oppor- credit allowable under section 53 for the taxable shall apply, in addition to the areas described in tunity Zone property’’ in paragraph (2)(B)(iv) year which is allocable to the adjusted minimum such provisions, to an area with respect to thereof, and tax imposed for taxable years beginning before which a major disaster has been declared by the (E) by substituting ‘‘qualified Recovery Assist- January 1, 2006. President under section 401 of the Robert T. ance casualty loss’’ for ‘‘qualified Gulf Oppor- ‘‘(E) CREDIT REFUNDABLE.—Any aggregate in- Stafford Disaster Relief and Emergency Assist- tunity Zone casualty loss’’ each place it ap- creases in the credits allowed under section 38 or ance Act (FEMA–1699–DR, as in effect on the pears. 53 by reason of this paragraph shall, for pur- date of the enactment of this Act) by reason of (9) TREATMENT OF REPRESENTATIONS REGARD- poses of this title, be treated as a credit allowed severe storms and tornados beginning on May 4, ING INCOME ELIGIBILITY FOR PURPOSES OF QUALI- to the taxpayer under subpart C of part IV of 2007, and determined by the President to war- FIED RENTAL PROJECT REQUIREMENTS.—Section subchapter A. rant individual or individual and public assist- 1400N(n) of such Code. ‘‘(F) OTHER RULES.— ance from the Federal Government under such (10) SPECIAL RULES FOR USE OF RETIREMENT ‘‘(i) ELECTION.—Any election under this para- Act with respect to damages attributed to such graph (including any allocation under subpara- FUNDS.—Section 1400Q of such Code— storms and tornados: (A) by substituting ‘‘qualified Recovery As- graph (D)) may be revoked only with the con- (1) SUSPENSION OF CERTAIN LIMITATIONS ON sistance distribution’’ for ‘‘qualified hurricane sent of the Secretary. PERSONAL CASUALTY LOSSES.—Section ‘‘(ii) DEDUCTION ALLOWED IN COMPUTING MIN- distribution’’ each place it appears, 1400S(b)(1) of the Internal Revenue Code of (B) by substituting ‘‘on or after May 4, 2007, IMUM TAX.—Notwithstanding this paragraph, 1986, by substituting ‘‘May 4, 2007’’ for ‘‘August paragraph (2)(G) shall apply with respect to the and before January 1, 2009’’ for ‘‘on or after Au- 25, 2005’’. deduction computed under this section (after gust 25, 2005, and before January 1, 2007’’ in (2) EXTENSION OF REPLACEMENT PERIOD FOR application of this paragraph) with respect to subsection (a)(4)(A)(i), NONRECOGNITION OF GAIN.—Section 405 of the (C) by substituting ‘‘qualified storm distribu- property placed in service during any applicable Katrina Emergency Tax Relief Act of 2005, by tion’’ for ‘‘qualified Katrina distribution’’ each taxable year.’’. substituting ‘‘on or after May 4, 2007, by reason place it appears, (b) EFFECTIVE DATE.—The amendments made (D) by substituting ‘‘after November 4, 2006, by this section shall apply to property placed in of the May 4, 2007, storms and tornados’’ for and before May 5, 2007’’ for ‘‘after February 28, service after December 31, 2007, in taxable years ‘‘on or after August 25, 2005, by reason of Hurri- 2005, and before August 29, 2005’’ in subsection ending after such date. cane Katrina’’. (3) EMPLOYEE RETENTION CREDIT FOR EMPLOY- (b)(2)(B)(ii), SEC. 606. USE OF AMENDED INCOME TAX RE- ERS AFFECTED BY MAY 4 STORMS AND TOR- (E) by substituting ‘‘beginning on May 4, TURNS TO TAKE INTO ACCOUNT RE- CEIPT OF CERTAIN HURRICANE-RE- NADOS.—Section 1400R(a) of the Internal Rev- 2007, and ending on November 5, 2007’’ for ‘‘be- LATED CASUALTY LOSS GRANTS BY enue Code of 1986— ginning on August 25, 2005, and ending on Feb- DISALLOWING PREVIOUSLY TAKEN (A) by substituting ‘‘May 4, 2007’’ for ‘‘August ruary 28, 2006’’ in subsection (b)(3)(A), CASUALTY LOSS DEDUCTIONS. 28, 2005’’ each place it appears, (F) by substituting ‘‘qualified storm indi- (a) IN GENERAL.—Notwithstanding any other (B) by substituting ‘‘January 1, 2008’’ for vidual’’ for ‘‘qualified Hurricane Katrina indi- provision of the Internal Revenue Code of 1986, ‘‘January 1, 2006’’ both places it appears, and vidual’’ each place it appears,

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00026 Fmt 4634 Sfmt 6333 E:\CR\FM\A08MY7.043 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3215

(G) by substituting ‘‘December 31, 2007’’ for for taxable REIT subsidiaries) is amended to (b) REIT INCOME TESTS.— ‘‘December 31, 2006’’ in subsection (c)(2)(A), read as follows: (1) The amendment made by section 801(a) (H) by substituting ‘‘beginning on June 4, ‘‘(B) EXCEPTION FOR CERTAIN LODGING FACILI- and (b) shall apply to gains and items of income 2007, and ending on December 31, 2007’’ for ‘‘be- TIES AND HEALTH CARE PROPERTY.—The require- recognized after the date of the enactment of ginning on September 24, 2005, and ending on ments of this subparagraph are met with respect this Act. December 31, 2006’’ in subsection (c)(4)(A)(i), to an interest in real property which is a quali- (2) The amendment made by section 801(c) (I) by substituting ‘‘May 4, 2007’’ for ‘‘August fied lodging facility (as defined in paragraph shall apply to transactions entered into after 25, 2005’’ in subsection (c)(4)(A)(ii), and (9)(D)) or a qualified health care property (as the date of the enactment of this Act. (J) by substituting ‘‘January 1, 2008’’ for defined in subsection (e)(6)(D)(i)) leased by the (3) The amendment made by section 801(d) ‘‘January 1, 2007’’ in subsection (d)(2)(A)(ii). trust to a taxable REIT subsidiary of the trust shall apply after the date of the enactment of (b) EMERGENCY DESIGNATION.—For purposes if the property is operated on behalf of such this Act. of Senate enforcement, all provisions of this sec- subsidiary by a person who is an eligible inde- (c) CONFORMING FOREIGN CURRENCY REVI- tion are designated as emergency requirements pendent contractor. For purposes of this section, SIONS.— and necessary to meet emergency needs pursu- a taxable REIT subsidiary is not considered to (1) The amendment made by section 803(a) ant to section 204 of S. Con. Res. 21 (110th Con- be operating or managing a qualified health shall apply to gains recognized after the date of gress), the concurrent resolution on the budget care property or qualified lodging facility solely the enactment of this Act. for fiscal year 2008. because it— (2) The amendment made by section 803(b) TITLE VII—EMERGENCY DESIGNATION ‘‘(i) directly or indirectly possesses a license, shall apply to gains and deductions recognized SEC. 701. EMERGENCY DESIGNATION. permit, or similar instrument enabling it to do after the date of the enactment of this Act. For purposes of Senate enforcement, all provi- so, or (d) DEALER SALES.—The amendments made by sions of this Act are designated as emergency re- ‘‘(ii) employs individuals working at such subtitle C shall apply to sales made after the quirements and necessary to meet emergency property or facility located outside the United date of the enactment of this Act. needs pursuant to section 204 of S. Con. Res. 21 States, but only if an eligible independent con- (e) SUNSET.—All amendments made by this (110th Congress), the concurrent resolution on tractor is responsible for the daily supervision title shall not apply to taxable years beginning the budget for fiscal year 2008. and direction of such individuals on behalf of after the date which is 5 years after the date of the taxable REIT subsidiary pursuant to a man- the enactment of this Act. The Internal Revenue TITLE VIII—REIT INVESTMENT Code of 1986 shall be applied and administered DIVERSIFICATION AND EMPOWERMENT agement agreement or similar service contract.’’. (b) ELIGIBLE INDEPENDENT CONTRACTOR.— to taxable years described in the preceding sen- SEC. 801. SHORT TITLE; AMENDMENT OF 1986 Subparagraphs (A) and (B) of section 856(d)(9) tence as if the amendments so described had CODE. (relating to eligible independent contractor) are never been enacted. (a) SHORT TITLE.—This title may be cited as amended to read as follows: TITLE IX—VETERANS HOUSING MATTERS the ‘‘REIT Investment Diversification and Em- ‘‘(A) IN GENERAL.—The term ‘eligible inde- SEC. 901. HOME IMPROVEMENTS AND STRUC- powerment Act of 2008’’. pendent contractor’ means, with respect to any (b) AMENDMENT OF 1986 CODE.—Except as oth- TURAL ALTERATIONS FOR TOTALLY qualified lodging facility or qualified health erwise expressly provided, whenever in this title DISABLED MEMBERS OF THE ARMED care property (as defined in subsection an amendment or repeal is expressed in terms of FORCES BEFORE DISCHARGE OR RE- (e)(6)(D)(i)), any independent contractor if, at LEASE FROM THE ARMED FORCES. an amendment to, or repeal of, a section or the time such contractor enters into a manage- Section 1717 of title 38, United States Code, is other provision, the reference shall be consid- ment agreement or other similar service contract amended by adding at the end the following ered to be made to a section or other provision with the taxable REIT subsidiary to operate new subsection: of the Internal Revenue Code of 1986. such qualified lodging facility or qualified ‘‘(d)(1) In the case of a member of the Armed Subtitle A—Taxable REIT Subsidiaries health care property, such contractor (or any Forces who, as determined by the Secretary, has SEC. 811. CONFORMING TAXABLE REIT SUB- related person) is actively engaged in the trade a disability permanent in nature incurred or ag- SIDIARY ASSET TEST. or business of operating qualified lodging facili- gravated in the line of duty in the active mili- Section 856(c)(4)(B)(ii) is amended by striking ties or qualified health care properties, respec- tary, naval, or air service, the Secretary may ‘‘20 percent’’ and inserting ‘‘25 percent’’. tively, for any person who is not a related per- furnish improvements and structural alterations Subtitle B—Dealer Sales son with respect to the real estate investment for such member for such disability or as other- SEC. 821. HOLDING PERIOD UNDER SAFE HAR- trust or the taxable REIT subsidiary. wise described in subsection (a)(2) while such BOR. ‘‘(B) SPECIAL RULES.—Solely for purposes of member is hospitalized or receiving outpatient Section 857(b)(6) (relating to income from pro- this paragraph and paragraph (8)(B), a person medical care, services, or treatment for such dis- hibited transactions) is amended— shall not fail to be treated as an independent ability if the Secretary determines that such (1) by striking ‘‘4 years’’ in subparagraphs contractor with respect to any qualified lodging member is likely to be discharged or released (C)(i), (C)(iv), and (D)(i) and inserting ‘‘2 facility or qualified health care property (as so from the Armed Forces for such disability. years’’, defined) by reason of the following: ‘‘(2) The furnishing of improvements and al- (2) by striking ‘‘4-year period’’ in subpara- ‘‘(i) The taxable REIT subsidiary bears the ex- terations under paragraph (1) in connection graphs (C)(ii), (D)(ii), and (D)(iii) and inserting penses for the operation of such qualified lodg- with the furnishing of medical services described ‘‘2-year period’’, and ing facility or qualified health care property in subparagraph (A) or (B) of subsection (a)(2) (3) by striking ‘‘real estate asset’’and all that pursuant to the management agreement or other shall be subject to the limitation specified in the follows through ‘‘if’’ in the matter preceding similar service contract. applicable subparagraph.’’. clause (i) of subparagraphs (C) and (D), respec- ‘‘(ii) The taxable REIT subsidiary receives the SEC. 902. ELIGIBILITY FOR SPECIALLY ADAPTED tively, and inserting ‘‘real estate asset (as de- revenues from the operation of such qualified HOUSING BENEFITS AND ASSIST- fined in section 856(c)(5)(B)) and which is de- lodging facility or qualified health care prop- ANCE FOR MEMBERS OF THE ARMED scribed in section 1221(a)(1) if’’. erty, net of expenses for such operation and fees FORCES WITH SERVICE-CONNECTED SEC. 822. DETERMINING VALUE OF SALES UNDER payable to the operator pursuant to such agree- DISABILITIES AND INDIVIDUALS RE- SAFE HARBOR. ment or contract. SIDING OUTSIDE THE UNITED Section 857(b)(6) is amended— ‘‘(iii) The real estate investment trust receives STATES. (1) by striking the semicolon at the end of sub- income from such person with respect to another (a) ELIGIBILITY.—Chapter 21 of title 38, paragraph (C)(iii) and inserting ‘‘, or (III) the property that is attributable to a lease of such United States Code, is amended by inserting fair market value of property (other than sales other property to such person that was in effect after section 2101 the following new section: of foreclosure property or sales to which section as of the later of— ‘‘§ 2101A. Eligibility for benefits and assist- 1033 applies) sold during the taxable year does ‘‘(I) January 1, 1999, or ance: members of the Armed Forces with not exceed 10 percent of the fair market value of ‘‘(II) the earliest date that any taxable REIT service-connected disabilities; individuals all of the assets of the trust as of the beginning subsidiary of such trust entered into a manage- residing outside the United States of the taxable year;’’, and ment agreement or other similar service contract ‘‘(a) MEMBERS WITH SERVICE-CONNECTED DIS- (2) by adding ‘‘or’’ at the end of subclause (II) with such person with respect to such qualified ABILITIES.—(1) The Secretary may provide as- of subparagraph (D)(iv) and by adding at the lodging facility or qualified health care prop- sistance under this chapter to a member of the end of such subparagraph the following new erty.’’. Armed Forces serving on active duty who is suf- subclause: (c) TAXABLE REIT SUBSIDIARIES.—The last fering from a disability that meets applicable ‘‘(III) the fair market value of property (other sentence of section 856(l)(3) is amended— criteria for benefits under this chapter if the dis- than sales of foreclosure property or sales to (1) by inserting ‘‘or a health care facility’’ ability is incurred or aggravated in line of duty which section 1033 applies) sold during the tax- after ‘‘a lodging facility’’, and in the active military, naval, or air service. Such (2) by inserting ‘‘or health care facility’’ after able year does not exceed 10 percent of the fair assistance shall be provided to the same extent ‘‘such lodging facility’’. market value of all of the assets of the trust as as assistance is provided under this chapter to of the beginning of the taxable year,’’. Subtitle D—Effective Dates and Sunset veterans eligible for assistance under this chap- Subtitle C—Health Care REITs SEC. 841 EFFECTIVE DATES AND SUNSET. ter and subject to the same requirements as vet- SEC. 831. CONFORMITY FOR HEALTH CARE FA- (a) IN GENERAL.—Except as otherwise pro- erans under this chapter. CILITIES. vided in this section, the amendments made by ‘‘(2) For purposes of this chapter, any ref- (a) RELATED PARTY RENTALS.—Subparagraph this title shall apply to taxable years beginning erence to a veteran or eligible individual shall be (B) of section 856(d)(8) (relating to special rule after the date of the enactment of this Act. treated as a reference to a member of the Armed

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00027 Fmt 4634 Sfmt 6333 E:\CR\FM\A08MY7.044 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3216 CONGRESSIONAL RECORD — HOUSE May 8, 2008 Forces described in subsection (a) who is simi- (C) in subsection (e), by striking ‘‘an eligible graphs (1) and (2) of subsection (d) in accord- larly situated to the veteran or other eligible in- veteran’’ and inserting ‘‘an individual’’; ance with this subsection. dividual so referred to. (D) in subsection (h), by striking ‘‘each vet- ‘‘(2) The increase in amounts under para- ‘‘(b) BENEFITS AND ASSISTANCE FOR INDIVID- eran’’ and inserting ‘‘each individual’’; graph (1) to take effect on October 1 of a year UALS RESIDING OUTSIDE THE UNITED STATES.— (E) in subsection (i), by striking ‘‘the vet- shall be by an amount of such amounts equal to (1) Subject to paragraph (2), the Secretary may, eran’s’’ each place it appears and inserting ‘‘the the percentage by which— at the Secretary’s discretion, provide benefits individual’s’’; ‘‘(A) the residential home cost-of-construction and assistance under this chapter (other than (F) by striking ‘‘the veteran’’ each place it ap- index for the preceding calendar year, exceeds benefits under section 2106 of this title) to any pears and inserting ‘‘the individual’’; and ‘‘(B) the residential home cost-of-construction individual otherwise eligible for such benefits (G) by striking ‘‘a veteran’’ each place it ap- index for the year preceding the year described and assistance who resides outside the United pears and inserting ‘‘an individual’’. in subparagraph (A). States. (7) HEADING AMENDMENTS.—(A) The heading ‘‘(3) The Secretary shall establish a residential ‘‘(2) The Secretary may provide benefits and of section 2101 of such title is amended to read home cost-of-construction index for the purposes assistance to an individual under paragraph (1) as follows: of this subsection. The index shall reflect a uni- only if— ‘‘§ 2101. Acquisition and adaptation of hous- form, national average change in the cost of res- ‘‘(A) the country or political subdivision in ing: eligible veterans’’. idential home construction, determined on a cal- which the housing or residence involved is or (B) The heading of section 2102A of such title endar year basis. The Secretary may use an will be located permits the individual to have or is amended to read as follows: index developed in the private sector that the acquire a beneficial property interest (as deter- Secretary determines is appropriate for purposes ‘‘§ 2102A. Assistance for individuals residing mined by the Secretary) in such housing or resi- of this subsection.’’. temporarily in housing owned by a family dence; and (b) EFFECTIVE DATE.—The amendments made member’’. ‘‘(B) the individual has or will acquire a bene- by this section shall take effect on July 1, 2008, ficial property interest (as so determined) in (8) CLERICAL AMENDMENTS.—The table of sec- and shall apply with respect to payments made such housing or residence. tions at the beginning of chapter 21 of such title in accordance with section 2102 of title 38, ‘‘(c) REGULATIONS.—Benefits and assistance is amended— United States Code, on or after that date. under this chapter by reason of this section (A) by striking the item relating to section SEC. 906. REPORT ON SPECIALLY ADAPTED HOUS- shall be provided in accordance with such regu- 2101 and inserting the following new item: ING FOR DISABLED INDIVIDUALS. lations as the Secretary may prescribe.’’. ‘‘2101. Acquisition and adaptation of housing: (a) IN GENERAL.—Not later than December 31, (b) CONFORMING AMENDMENTS.— eligible veterans.’’; 2008, the Secretary of Veterans Affairs shall (1) REPEAL OF SUPERSEDED AUTHORITY.—Sec- (B) by inserting after the item relating to sec- submit to the Committee on Veterans’ Affairs of tion 2101 of such title is amended— tion 2101, as so amended, the following new the Senate and the Committee on Veterans’ Af- (A) by striking subsection (c); and item: (B) by redesignating subsection (d) as sub- fairs of the House of Representatives a report section (c). ‘‘2101A. Eligibility for benefits and assistance: that contains an assessment of the adequacy of members of the Armed Forces with (2) LIMITATIONS ON ASSISTANCE.—Section 2102 the authorities available to the Secretary under of such title is amended— service-connected disabilities; in- law to assist eligible disabled individuals in ac- (A) in subsection (a)— dividuals residing outside the quiring— (i) by striking ‘‘veteran’’ each place it appears United States.’’; (1) suitable housing units with special fixtures and inserting ‘‘individual’’; and and or movable facilities required for their disabil- (ii) in paragraph (3), by striking ‘‘veteran’s’’ (C) by striking the item relating to section ities, and necessary land therefor; and inserting ‘‘individual’s’’; 2102A and inserting the following new item: (2) such adaptations to their residences as are (B) in subsection (b)(1), by striking ‘‘a vet- ‘‘2102A. Assistance for individuals residing tem- reasonably necessary because of their disabil- eran’’ and inserting ‘‘an individual’’; porarily in housing owned by a ities; and (C) in subsection (c)— family member.’’. (3) residences already adapted with special (i) by striking ‘‘a veteran’’ and inserting ‘‘an SEC. 903. SPECIALLY ADAPTED HOUSING ASSIST- features determined by the Secretary to be rea- individual’’; and ANCE FOR INDIVIDUALS WITH SE- sonably necessary as a result of their disabil- (ii) by striking ‘‘the veteran’’ each place it ap- VERE BURN INJURIES. ities. pears and inserting ‘‘the individual’’; and Section 2101 of title 38, United States Code, is (b) FOCUS ON PARTICULAR DISABILITIES.—The (D) in subsection (d), by striking ‘‘a veteran’’ amended— report required by subsection (a) shall set forth each place it appears and inserting ‘‘an indi- (1) in subsection (a)(2), by adding at the end a specific assessment of the needs of— vidual’’. the following new subparagraph: (1) veterans who have disabilities that are not (3) ASSISTANCE FOR INDIVIDUALS TEMPORARILY ‘‘(E) The disability is due to a severe burn in- described in subsections (a)(2) and (b)(2) of sec- RESIDING IN HOUSING OF FAMILY MEMBER.—Sec- jury (as determined pursuant to regulations pre- tion 2101 of title 38, United States Code; and tion 2102A of such title is amended— scribed by the Secretary).’’; and (2) other disabled individuals eligible for spe- (A) by striking ‘‘veteran’’ each place it ap- (2) in subsection (b)(2)— cially adapted housing under chapter 21 of such pears (other than in subsection (b)) and insert- (A) by striking ‘‘either’’ and inserting ‘‘any’’; title by reason of section 2101A of such title (as ing ‘‘individual’’; and added by section 902(a) of this Act) who have (B) in subsection (a), by striking ‘‘veteran’s’’ (B) by adding at the end the following new disabilities that are not described in such sub- each place it appears and inserting ‘‘individ- subparagraph: sections. ual’s’’; and ‘‘(C) The disability is due to a severe burn in- SEC. 907. REPORT ON SPECIALLY ADAPTED HOUS- (C) in subsection (b), by striking ‘‘a veteran’’ jury (as so determined).’’. ING ASSISTANCE FOR INDIVIDUALS each place it appears and inserting ‘‘an indi- SEC. 904. EXTENSION OF ASSISTANCE FOR INDI- WHO RESIDE IN HOUSING OWNED BY vidual’’. VIDUALS RESIDING TEMPORARILY A FAMILY MEMBER ON PERMANENT (4) FURNISHING OF PLANS AND SPECIFICA- IN HOUSING OWNED BY A FAMILY BASIS. TIONS.—Section 2103 of such title is amended by MEMBER. Not later than December 31, 2008, the Sec- striking ‘‘veterans’’ both places it appears and Section 2102A(e) of title 38, United States retary of Veterans Affairs shall submit to the inserting ‘‘individuals’’. Code, is amended by striking ‘‘after the end of Committee on Veterans’ Affairs of the Senate (5) CONSTRUCTION OF BENEFITS.—Section 2104 the five-year period that begins on the date of and the Committee on Veterans’ Affairs of the of such title is amended— the enactment of the Veterans’ Housing Oppor- House of Representatives a report on the advis- (A) in subsection (a), by striking ‘‘veteran’’ tunity and Benefits Improvement Act of 2006’’ ability of providing assistance under section each place it appears and inserting ‘‘indi- and inserting ‘‘after December 31, 2011’’. 2102A of title 38, United States Code, to veterans vidual’’; and SEC. 905. INCREASE IN SPECIALLY ADAPTED described in subsection (a) of such section, and (B) in subsection (b)— HOUSING BENEFITS FOR DISABLED to members of the Armed Forces covered by such (i) in the first sentence, by striking ‘‘A vet- VETERANS. section 2102A by reason of section 2101A of title eran’’ and inserting ‘‘An individual’’; (a) IN GENERAL.—Section 2102 of title 38, 38, United States Code (as added by section (ii) in the second sentence, by striking ‘‘a vet- United States Code, is amended— 902(a) of this Act), who reside with family mem- eran’’ and inserting ‘‘an individual’’; and (1) in subsection (b)(2), by striking ‘‘$10,000’’ bers on a permanent basis. (iii) by striking ‘‘such veteran’’ each place it and inserting ‘‘$12,000’’; SEC. 908. DEFINITION OF ANNUAL INCOME FOR appears and inserting ‘‘such individual’’. (2) in subsection (d)— PURPOSES OF SECTION 8 AND (6) VETERANS’ MORTGAGE LIFE INSURANCE.— (A) in paragraph (1), by striking ‘‘$50,000’’ OTHER PUBLIC HOUSING PRO- Section 2106 of such title is amended— and inserting ‘‘$60,000’’; and GRAMS. (A) in subsection (a)— (B) in paragraph (2), by striking ‘‘$10,000’’ Section 3(b)(4) of the United States Housing (i) by striking ‘‘any eligible veteran’’ and in- and inserting ‘‘$12,000’’; and Act of 1937 (42 U.S.C. 1437a(3)(b)(4)) is amended serting ‘‘any eligible individual’’; and (3) by adding at the end the following new by inserting ‘‘or any deferred Department of (ii) by striking ‘‘the veterans’’’ and inserting subsection: Veterans Affairs disability benefits that are re- ‘‘the individual’s’’; ‘‘(e)(1) Effective on October 1 of each year (be- ceived in a lump sum amount or in prospective (B) in subsection (b), by striking ‘‘an eligible ginning in 2009), the Secretary shall increase the monthly amounts’’ before ‘‘may not be consid- veteran’’ and inserting ‘‘an eligible individual’’; amounts described in subsection (b)(2) and para- ered’’.

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00028 Fmt 4634 Sfmt 6333 E:\CR\FM\A08MY7.044 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3217

SEC. 909. PAYMENT OF TRANSPORTATION OF ‘‘(11) MARINE AND HYDROKINETIC RENEWABLE (1) IN GENERAL.—Paragraph (3) of section BAGGAGE AND HOUSEHOLD EF- ENERGY FACILITIES.—In the case of a facility 48(a) is amended by striking the second sentence FECTS FOR MEMBERS OF THE producing electricity from marine and thereof. ARMED FORCES WHO RELOCATE DUE hydrokinetic renewable energy, the term ‘quali- (2) CONFORMING AMENDMENTS.— TO FORECLOSURE OF LEASED HOUS- ING. fied facility’ means any facility owned by the (A) Paragraph (1) of section 48(c), as amended Section 406 of title 37, United States Code, is taxpayer— by this section, is amended by striking subpara- amended— ‘‘(A) which has a nameplate capacity rating graph (C) and redesignating subparagraph (D) (1) by redesignating subsections (k) and (l) as of at least 150 kilowatts, and as subparagraph (C). subsections (l) and (m), respectively; and ‘‘(B) which is originally placed in service on (B) Paragraph (2) of section 48(c), as amended (2) by inserting after subsection (j) the fol- or after the date of the enactment of this para- by subsection (a)(3), is amended by striking sub- lowing new subsection (k): graph and before January 1, 2010.’’. paragraph (D) and redesignating subparagraph ‘‘(k) A member of the armed forces who relo- (4) CREDIT RATE.—Subparagraph (A) of sec- (E) as subparagraph (D). cates from leased or rental housing by reason of tion 45(b)(4) is amended by striking ‘‘or (9)’’ and (e) EFFECTIVE DATES.— the foreclosure of such housing is entitled to inserting ‘‘(9), or (11)’’. (1) EXTENSION.—The amendments made by transportation of baggage and household effects (5) COORDINATION WITH SMALL IRRIGATION subsection (a) shall take effect on the date of under subsection (b)(1) in the same manner, and POWER.—Paragraph (5) of section 45(d), as the enactment of this Act. subject to the same conditions and limitations, amended by subsection (a), is amended by strik- (2) ALLOWANCE AGAINST ALTERNATIVE MIN- as similarly circumstanced members entitled to ing ‘‘January 1, 2010’’ and inserting ‘‘the date IMUM TAX.—The amendments made by sub- transportation of baggage and household effects of the enactment of paragraph (11)’’. section (b) shall apply to credits determined under that subsection.’’. (c) SALES OF ELECTRICITY TO REGULATED PUB- under section 46 of the Internal Revenue Code LIC UTILITIES TREATED AS SALES TO UNRELATED of 1986 in taxable years beginning after the date TITLE X—CLEAN ENERGY TAX STIMULUS PERSONS.—Section 45(e)(4) (relating to related of the enactment of this Act and to carrybacks SEC. 1001. SHORT TITLE; ETC. persons) is amended by adding at the end the of such credits. (a) SHORT TITLE.—This title may be cited as following new sentence: ‘‘A taxpayer shall be (3) FUEL CELL PROPERTY AND PUBLIC ELECTRIC the ‘‘Clean Energy Tax Stimulus Act of 2008’’. treated as selling electricity to an unrelated per- UTILITY PROPERTY.—The amendments made by (b) AMENDMENT OF 1986 CODE.—Except as oth- son if such electricity is sold to a regulated pub- subsections (c) and (d) shall apply to periods erwise expressly provided, whenever in this title lic utility (as defined in section 7701(a)(33).’’. after the date of the enactment of this Act, in an amendment or repeal is expressed in terms of (d) TRASH FACILITY CLARIFICATION.—Para- taxable years ending after such date, under an amendment to, or repeal of, a section or graph (7) of section 45(d) is amended— rules similar to the rules of section 48(m) of the other provision, the reference shall be consid- (1) by striking ‘‘facility which burns’’ and in- Internal Revenue Code of 1986 (as in effect on ered to be made to a section or other provision serting ‘‘facility (other than a facility described the day before the date of the enactment of the of the Internal Revenue Code of 1986. in paragraph (6)) which uses’’, and Revenue Reconciliation Act of 1990). Subtitle A—Extension of Clean Energy (2) by striking ‘‘COMBUSTION’’. SEC. 1013. EXTENSION AND MODIFICATION OF Production Incentives (e) EFFECTIVE DATES.— RESIDENTIAL ENERGY EFFICIENT SEC. 1011. EXTENSION AND MODIFICATION OF (1) EXTENSION.—The amendments made by PROPERTY CREDIT. RENEWABLE ENERGY PRODUCTION subsection (a) shall apply to property originally (a) EXTENSION.—Section 25D(g) (relating to TAX CREDIT. placed in service after December 31, 2008. termination) is amended by striking ‘‘December (a) EXTENSION OF CREDIT.—Each of the fol- (2) MODIFICATIONS.—The amendments made 31, 2008’’ and inserting ‘‘December 31, 2009’’. lowing provisions of section 45(d) (relating to by subsections (b) and (c) shall apply to elec- (b) NO DOLLAR LIMITATION FOR CREDIT FOR qualified facilities) is amended by striking ‘‘Jan- tricity produced and sold after the date of the SOLAR ELECTRIC PROPERTY.— uary 1, 2009’’ and inserting ‘‘January 1, 2010’’: enactment of this Act, in taxable years ending (1) IN GENERAL.—Section 25D(b)(1) (relating to (1) Paragraph (1). after such date. maximum credit) is amended by striking sub- (2) Clauses (i) and (ii) of paragraph (2)(A). (3) TRASH FACILITY CLARIFICATION.—The paragraph (A) and by redesignating subpara- (3) Clauses (i)(I) and (ii) of paragraph (3)(A). amendments made by subsection (d) shall apply graphs (B) and (C) as subparagraphs (A) and (4) Paragraph (4). to electricity produced and sold before, on, or (B), respectively. (5) Paragraph (5). after December 31, 2007. (2) CONFORMING AMENDMENTS.—Section (6) Paragraph (6). 25D(e)(4) is amended— (7) Paragraph (7). SEC. 1012. EXTENSION AND MODIFICATION OF SOLAR ENERGY AND FUEL CELL IN- (A) by striking clause (i) in subparagraph (A), (8) Paragraph (8). VESTMENT TAX CREDIT. (B) by redesignating clauses (ii) and (iii) in (9) Subparagraphs (A) and (B) of paragraph (a) EXTENSION OF CREDIT.— subparagraph (A) as clauses (i) and (ii), respec- (9). (1) SOLAR ENERGY PROPERTY.—Paragraphs tively, and (b) PRODUCTION CREDIT FOR ELECTRICITY (2)(A)(i)(II) and (3)(A)(ii) of section 48(a) (relat- (C) by striking ‘‘, (2),’’ in subparagraph (C). PRODUCED FROM MARINE RENEWABLES.— ing to energy credit) are each amended by strik- (c) CREDIT ALLOWED AGAINST ALTERNATIVE (1) IN GENERAL.—Paragraph (1) of section 45(c) (relating to resources) is amended by strik- ing ‘‘January 1, 2009’’ and inserting ‘‘January MINIMUM TAX.— (1) IN GENERAL.—Subsection (c) of section 25D ing ‘‘and’’ at the end of subparagraph (G), by 1, 2017’’. (2) FUEL CELL PROPERTY.—Subparagraph (E) is amended to read as follows: striking the period at the end of subparagraph of section 48(c)(1) (relating to qualified fuel cell ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX; (H) and inserting ‘‘, and’’, and by adding at the property) is amended by striking ‘‘December 31, CARRYFORWARD OF UNUSED CREDIT.— end the following new subparagraph: ‘‘(1) LIMITATION BASED ON AMOUNT OF TAX.— ‘‘(I) marine and hydrokinetic renewable en- 2008’’ and inserting ‘‘December 31, 2017’’. In the case of a taxable year to which section ergy.’’. (3) QUALIFIED MICROTURBINE PROPERTY.— (2) MARINE RENEWABLES.—Subsection (c) of Subparagraph (E) of section 48(c)(2) (relating to 26(a)(2) does not apply, the credit allowed under section 45 is amended by adding at the end the qualified microturbine property) is amended by subsection (a) for the taxable year shall not ex- following new paragraph: striking ‘‘December 31, 2008’’ and inserting ‘‘De- ceed the excess of— ‘‘(10) MARINE AND HYDROKINETIC RENEWABLE cember 31, 2017’’. ‘‘(A) the sum of the regular tax liability (as ENERGY.— (b) ALLOWANCE OF ENERGY CREDIT AGAINST defined in section 26(b)) plus the tax imposed by ‘‘(A) IN GENERAL.—The term ‘marine and ALTERNATIVE MINIMUM TAX.—Subparagraph section 55, over hydrokinetic renewable energy’ means energy (B) of section 38(c)(4) (relating to specified cred- ‘‘(B) the sum of the credits allowable under derived from— its) is amended by striking ‘‘and’’ at the end of this subpart (other than this section) and sec- ‘‘(i) waves, tides, and currents in oceans, estu- clause (iii), by striking the period at the end of tion 27 for the taxable year. aries, and tidal areas, clause (iv) and inserting ‘‘, and’’, and by adding ‘‘(2) CARRYFORWARD OF UNUSED CREDIT.— ‘‘(ii) free flowing water in rivers, lakes, and at the end the following new clause: ‘‘(A) RULE FOR YEARS IN WHICH ALL PERSONAL streams, ‘‘(v) the credit determined under section 46 to CREDITS ALLOWED AGAINST REGULAR AND ALTER- ‘‘(iii) free flowing water in an irrigation sys- the extent that such credit is attributable to the NATIVE MINIMUM TAX.—In the case of a taxable tem, canal, or other man-made channel, includ- energy credit determined under section 48.’’. year to which section 26(a)(2) applies, if the ing projects that utilize nonmechanical struc- (c) REPEAL OF DOLLAR PER KILOWATT LIMITA- credit allowable under subsection (a) exceeds tures to accelerate the flow of water for electric TION FOR FUEL CELL PROPERTY.— the limitation imposed by section 26(a)(2) for power production purposes, or (1) IN GENERAL.—Section 48(c)(1) (relating to such taxable year reduced by the sum of the ‘‘(iv) differentials in ocean temperature (ocean qualified fuel cell), as amended by subsection credits allowable under this subpart (other than thermal energy conversion). (a)(2), is amended by striking subparagraph (B) this section), such excess shall be carried to the ‘‘(B) EXCEPTIONS.—Such term shall not in- and by redesignating subparagraphs (C), (D), succeeding taxable year and added to the credit clude any energy which is derived from any and (E) as subparagraphs (B), (C), and (D), re- allowable under subsection (a) for such suc- source which utilizes a dam, diversionary struc- spectively. ceeding taxable year. ture (except as provided in subparagraph (2) CONFORMING AMENDMENT.—Section ‘‘(B) RULE FOR OTHER YEARS.—In the case of (A)(iii)), or impoundment for electric power pro- 48(a)(1) is amended by striking ‘‘paragraphs a taxable year to which section 26(a)(2) does not duction purposes.’’. (1)(B) and (2)(B) of subsection (c)’’ and insert- apply, if the credit allowable under subsection (3) DEFINITION OF FACILITY.—Subsection (d) of ing ‘‘subsection (c)(2)(B)’’. (a) exceeds the limitation imposed by paragraph section 45 is amended by adding at the end the (d) PUBLIC ELECTRIC UTILITY PROPERTY (1) for such taxable year, such excess shall be following new paragraph: TAKEN INTO ACCOUNT.— carried to the succeeding taxable year and

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00029 Fmt 4634 Sfmt 6333 E:\CR\FM\A08MY7.044 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3218 CONGRESSIONAL RECORD — HOUSE May 8, 2008

added to the credit allowable under subsection (2) EFFECTIVE DATE.—The amendment made oil hot water boiler which achieves an annual (a) for such succeeding taxable year.’’. by this subsection shall take effect as if included fuel utilization efficiency rate of not less than (2) CONFORMING AMENDMENTS.— in the amendments made by section 909 of the 90.’’. (A) Section 23(b)(4)(B) is amended by inserting American Jobs Creation Act of 2004. (d) EFFECTIVE DATE.—The amendments made ‘‘and section 25D’’ after ‘‘this section’’. Subtitle B—Extension of Incentives to Improve this section shall apply to expenditures made (B) Section 24(b)(3)(B) is amended by striking Energy Efficiency after December 31, 2007. ‘‘and 25B’’ and inserting ‘‘, 25B, and 25D’’. SEC. 1022. EXTENSION AND MODIFICATION OF (C) Section 25B(g)(2) is amended by striking SEC. 1021. EXTENSION AND MODIFICATION OF CREDIT FOR ENERGY EFFICIENCY TAX CREDIT FOR ENERGY EFFICIENT ‘‘section 23’’ and inserting ‘‘sections 23 and IMPROVEMENTS TO EXISTING NEW HOMES. 25D’’. HOMES. (a) EXTENSION OF CREDIT.—Subsection (g) of (D) Section 26(a)(1) is amended by striking (a) EXTENSION OF CREDIT.—Section 25C(g) (re- section 45L (relating to termination) is amended ‘‘and 25B’’ and inserting ‘‘25B, and 25D’’. lating to termination) is amended by striking by striking ‘‘December 31, 2008’’ and inserting (d) EFFECTIVE DATE.— ‘‘December 31, 2007’’ and inserting ‘‘December ‘‘December 31, 2010’’. (1) IN GENERAL.—The amendments made by 31, 2009’’. (b) ALLOWANCE FOR CONTRACTOR’S PERSONAL this section shall apply to taxable years begin- (b) QUALIFIED BIOMASS FUEL PROPERTY.— RESIDENCE.—Subparagraph (B) of section ning after December 31, 2007. (1) IN GENERAL.—Section 25C(d)(3) is amend- 45L(a)(1) is amended to read as follows: (2) APPLICATION OF EGTRRA SUNSET.—The ed— ‘‘(B)(i) acquired by a person from such eligible amendments made by subparagraphs (A) and (A) by striking ‘‘and’’ at the end of subpara- contractor and used by any person as a resi- (B) of subsection (c)(2) shall be subject to title graph (D), dence during the taxable year, or IX of the Economic Growth and Tax Relief Rec- (B) by striking the period at the end of sub- ‘‘(ii) used by such eligible contractor as a resi- onciliation Act of 2001 in the same manner as paragraph (E) and inserting ‘‘, and’’, and dence during the taxable year.’’. the provisions of such Act to which such amend- (C) by adding at the end the following new (c) EFFECTIVE DATE.—The amendments made ments relate. subparagraph: by this section shall apply to homes acquired SEC. 1014. EXTENSION AND MODIFICATION OF ‘‘(F) a stove which uses the burning of bio- after December 31, 2008. CREDIT FOR CLEAN RENEWABLE EN- mass fuel to heat a dwelling unit located in the SEC. 1023. EXTENSION AND MODIFICATION OF ERGY BONDS. United States and used as a residence by the ENERGY EFFICIENT COMMERCIAL (a) EXTENSION.—Section 54(m) (relating to ter- taxpayer, or to heat water for use in such a BUILDINGS DEDUCTION. mination) is amended by striking ‘‘December 31, dwelling unit, and which has a thermal effi- (a) EXTENSION.—Section 179D(h) (relating to 2008’’ and inserting ‘‘December 31, 2009’’. ciency rating of at least 75 percent.’’. termination) is amended by striking ‘‘December (b) INCREASE IN NATIONAL LIMITATION.—Sec- (2) BIOMASS FUEL.—Section 25C(d) (relating to 31, 2008’’ and inserting ‘‘December 31, 2009’’. tion 54(f) (relating to limitation on amount of residential energy property expenditures) is (b) ADJUSTMENT OF MAXIMUM DEDUCTION bonds designated) is amended— amended by adding at the end the following AMOUNT.— (1) by inserting ‘‘, and for the period begin- new paragraph: (1) IN GENERAL.—Subparagraph (A) of section ning after the date of the enactment of the ‘‘(6) BIOMASS FUEL.—The term ‘biomass fuel’ 179D(b)(1) (relating to maximum amount of de- Clean Energy Tax Stimulus Act of 2008 and end- means any plant-derived fuel available on a re- duction) is amended by striking ‘‘$1.80’’ and in- ing before January 1, 2010, $400,000,000’’ after newable or recurring basis, including agricul- serting ‘‘$2.25’’. ‘‘$1,200,000,000’’ in paragraph (1), tural crops and trees, wood and wood waste and (2) PARTIAL ALLOWANCE.—Paragraph (1) of (2) by striking ‘‘$750,000,000 of the’’ in para- residues (including wood pellets), plants (in- section 179D(d) is amended— graph (2) and inserting ‘‘$750,000,000 of the cluding aquatic plants), grasses, residues, and (A) by striking ‘‘$.60’’ and inserting ‘‘$0.75’’, $1,200,000,000’’, and fibers.’’. and (3) by striking ‘‘bodies’’ in paragraph (2) and (c) MODIFICATIONS OF STANDARDS FOR EN- (B) by striking ‘‘$1.80’’ and inserting ‘‘$2.25’’. inserting ‘‘bodies, and except that the Secretary ERGY-EFFICIENT BUILDING PROPERTY.— (c) EFFECTIVE DATE.—The amendments made may not allocate more than 1⁄3 of the $400,000,000 (1) ELECTRIC HEAT PUMPS.—Subparagraph (B) by this section shall apply to property placed in national clean renewable energy bond limitation of section 25C(d)(3) is amended to read as fol- service after the date of the enactment of this to finance qualified projects of qualified bor- lows: Act. rowers which are public power providers nor ‘‘(A) an electric heat pump which achieves the SEC. 1024. MODIFICATION AND EXTENSION OF more than 1⁄3 of such limitation to finance quali- highest efficiency tier established by the Consor- ENERGY EFFICIENT APPLIANCE fied projects of qualified borrowers which are tium for Energy Efficiency, as in effect on Janu- CREDIT FOR APPLIANCES PRO- mutual or cooperative electric companies de- ary 1, 2008.’’. DUCED AFTER 2007. scribed in section 501(c)(12) or section (2) CENTRAL AIR CONDITIONERS.—Section (a) IN GENERAL.—Subsection (b) of section 1381(a)(2)(C)’’. 25C(d)(3)(D) is amended by striking ‘‘2006’’ and 45M (relating to applicable amount) is amended (c) PUBLIC POWER PROVIDERS DEFINED.—Sec- inserting ‘‘2008’’. to read as follows: tion 54(j) is amended— (3) WATER HEATERS.—Subparagraph (E) of ‘‘(b) APPLICABLE AMOUNT.—For purposes of (1) by adding at the end the following new section 25C(d) is amended to read as follows: subsection (a)— paragraph: ‘‘(E) a natural gas, propane, or oil water ‘‘(1) DISHWASHERS.—The applicable amount ‘‘(6) PUBLIC POWER PROVIDER.—The term heater which has either an energy factor of at is— ‘public power provider’ means a State utility least 0.80 or a thermal efficiency of at least 90 ‘‘(A) $45 in the case of a dishwasher which is with a service obligation, as such terms are de- percent.’’. manufactured in calendar year 2008 or 2009 and fined in section 217 of the Federal Power Act (as (4) OIL FURNACES AND HOT WATER BOILERS.— which uses no more than 324 kilowatt hours per in effect on the date of the enactment of this Paragraph (4) of section 25C(d) is amended to year and 5.8 gallons per cycle, and paragraph).’’, and read as follows: ‘‘(B) $75 in the case of a dishwasher which is (2) by inserting ‘‘; PUBLIC POWER PROVIDER’’ ‘‘(4) QUALIFIED NATURAL GAS, PROPANE, AND manufactured in calendar year 2008, 2009, or before the period at the end of the heading. OIL FURNACES AND HOT WATER BOILERS.— 2010 and which uses no more than 307 kilowatt (d) TECHNICAL AMENDMENT.—The third sen- ‘‘(A) QUALIFIED NATURAL GAS FURNACE.—The hours per year and 5.0 gallons per cycle (5.5 gal- tence of section 54(e)(2) is amended by striking term ‘qualified natural gas furnace’ means any lons per cycle for dishwashers designed for ‘‘subsection (l)(6)’’ and inserting ‘‘subsection natural gas furnace which achieves an annual greater than 12 place settings). (l)(5)’’. fuel utilization efficiency rate of not less than ‘‘(2) CLOTHES WASHERS.—The applicable (e) EFFECTIVE DATE.—The amendments made 95. amount is— by this section shall apply to bonds issued after ‘‘(B) QUALIFIED NATURAL GAS HOT WATER ‘‘(A) $75 in the case of a residential top-load- the date of the enactment of this Act. BOILER.—The term ‘qualified natural gas hot ing clothes washer manufactured in calendar SEC. 1015. EXTENSION OF SPECIAL RULE TO IM- water boiler’ means any natural gas hot water year 2008 which meets or exceeds a 1.72 modified PLEMENT FERC RESTRUCTURING boiler which achieves an annual fuel utilization energy factor and does not exceed a 8.0 water POLICY. efficiency rate of not less than 90. consumption factor, (a) QUALIFYING ELECTRIC TRANSMISSION ‘‘(C) QUALIFIED PROPANE FURNACE.—The term ‘‘(B) $125 in the case of a residential top-load- TRANSACTION.— ‘qualified propane furnace’ means any propane ing clothes washer manufactured in calendar (1) IN GENERAL.—Section 451(i)(3) (defining furnace which achieves an annual fuel utiliza- year 2008 or 2009 which meets or exceeds a 1.8 qualifying electric transmission transaction) is tion efficiency rate of not less than 95. modified energy factor and does not exceed a 7.5 amended by striking ‘‘January 1, 2008’’ and in- ‘‘(D) QUALIFIED PROPANE HOT WATER BOIL- water consumption factor, serting ‘‘January 1, 2010’’. ER.—The term ‘qualified propane hot water boil- ‘‘(C) $150 in the case of a residential or com- (2) EFFECTIVE DATE.—The amendment made er’ means any propane hot water boiler which mercial clothes washer manufactured in cal- by this subsection shall apply to transactions achieves an annual fuel utilization efficiency endar year 2008, 2009, or 2010 which meets or ex- after December 31, 2007. rate of not less than 90. ceeds 2.0 modified energy factor and does not (b) INDEPENDENT TRANSMISSION COMPANY.— ‘‘(E) QUALIFIED OIL FURNACES.—The term exceed a 6.0 water consumption factor, and (1) IN GENERAL.—Section 451(i)(4)(B)(ii) (de- ‘qualified oil furnace’ means any oil furnace ‘‘(D) $250 in the case of a residential or com- fining independent transmission company) is which achieves an annual fuel utilization effi- mercial clothes washer manufactured in cal- amended by striking ‘‘December 31, 2007’’ and ciency rate of not less than 90. endar year 2008, 2009, or 2010 which meets or ex- inserting ‘‘the date which is 2 years after the ‘‘(F) QUALIFIED OIL HOT WATER BOILER.—The ceeds 2.2 modified energy factor and does not date of such transaction’’. term ‘qualified oil hot water boiler’ means any exceed a 4.5 water consumption factor.

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00030 Fmt 4634 Sfmt 6333 E:\CR\FM\A08MY7.044 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3219

‘‘(3) REFRIGERATORS.—The applicable amount ‘‘commercial’’ before ‘‘residential’’ the second Subtitle A—Homeownership Retention is— place it appears. Sec. 111. Purposes. ‘‘(A) $50 in the case of a refrigerator which is (3) TOP-LOADING CLOTHES WASHER.—Sub- Sec. 112. Insurance of homeownership reten- manufactured in calendar year 2008, and con- section (f) of section 45M (relating to defini- tion mortgages. sumes at least 20 percent but not more than 22.9 tions) is amended by redesignating paragraphs Sec. 113. Study of Auction or Bulk Refi- percent less kilowatt hours per year than the (4), (5), (6), and (7) as paragraphs (5), (6), (7), nance Program. 2001 energy conservation standards, and (8), respectively, and by inserting after Sec. 114. Temporary increase in maximum ‘‘(B) $75 in the case of a refrigerator which is paragraph (3) the following new paragraph: loan guaranty amount for cer- manufactured in calendar year 2008 or 2009, and ‘‘(4) TOP-LOADING CLOTHES WASHER.—The tain housing loans guaranteed consumes at least 23 percent but no more than term ‘top-loading clothes washer’ means a by Secretary of Veterans Af- 24.9 percent less kilowatt hours per year than clothes washer which has the clothes container fairs. the 2001 energy conservation standards, compartment access located on the top of the Sec. 115. Study of possible accounting revi- ‘‘(C) $100 in the case of a refrigerator which is machine and which operates on a vertical sions relating to property at manufactured in calendar year 2008, 2009, or axis.’’. risk of foreclosure and the 2010, and consumes at least 25 percent but not (4) REPLACEMENT OF ENERGY FACTOR.—Sec- availability of credit for refi- more than 29.9 percent less kilowatt hours per tion 45M(f)(6), as redesignated by paragraph nancing home mortgages at year than the 2001 energy conservation stand- (3), is amended to read as follows: risk of foreclosure. ards, and ‘‘(6) MODIFIED ENERGY FACTOR.—The term Sec. 116. GAO study of the effect of tight- ‘‘(D) $200 in the case of a refrigerator manu- ‘modified energy factor’ means the modified en- ening credit markets in com- factured in calendar year 2008, 2009, or 2010 and ergy factor established by the Department of munities affected by the which consumes at least 30 percent less energy Energy for compliance with the Federal energy subprime mortgage foreclosure than the 2001 energy conservation standards.’’. conservation standard.’’. crises and predatory lending on (b) ELIGIBLE PRODUCTION.— (5) GALLONS PER CYCLE; WATER CONSUMPTION prospective first-time home- (1) SIMILAR TREATMENT FOR ALL APPLI- FACTOR.—Section 45M(f) (relating to defini- buyers seeking mortgages. ANCES.—Subsection (c) of section 45M (relating tions), as amended by paragraph (3), is amended to eligible production) is amended— by adding at the end the following: Subtitle B—Office of Housing Counseling (A) by striking paragraph (2), ‘‘(9) GALLONS PER CYCLE.—The term ‘gallons Sec. 131. Short title. (B) by striking ‘‘(1) IN GENERAL’’ and all that per cycle’ means, with respect to a dishwasher, Sec. 132. Establishment of Office of Housing follows through ‘‘the eligible’’ and inserting the amount of water, expressed in gallons, re- Counseling. ‘‘The eligible’’, and quired to complete a normal cycle of a dish- Sec. 133. Counseling procedures. (C) by moving the text of such subsection in washer. Sec. 134. Grants for housing counseling as- line with the subsection heading and redesig- ‘‘(10) WATER CONSUMPTION FACTOR.—The term sistance. nating subparagraphs (A) and (B) as para- ‘water consumption factor’ means, with respect Sec. 135. Requirements to use HUD-certified graphs (1) and (2), respectively. to a clothes washer, the quotient of the total counselors under HUD pro- (2) MODIFICATION OF BASE PERIOD.—Para- weighted per-cycle water consumption divided grams. graph (2) of section 45M(c), as amended by by the cubic foot (or liter) capacity of the Sec. 136. Study of defaults and foreclosures. paragraph (1) of this section, is amended by clothes washer.’’. Sec. 137. Definitions for counseling-related striking ‘‘3-calendar year’’ and inserting ‘‘2-cal- (f) EFFECTIVE DATE.—The amendments made programs. endar year’’. by this section shall apply to appliances pro- Sec. 138. Updating and simplification of (c) TYPES OF ENERGY EFFICIENT APPLI- duced after December 31, 2007. mortgage information booklet. ANCES.—Subsection (d) of section 45M (defining TITLE XI—SENSE OF THE SENATE Subtitle C—Combating Mortgage Fraud types of energy efficient appliances) is amended to read as follows: SEC. 1101. SENSE OF THE SENATE. Sec. 151. Authorization of appropriations to ‘‘(d) TYPES OF ENERGY EFFICIENT APPLI- It is the sense of the Senate that in imple- combat mortgage fraud. ANCE.—For purposes of this section, the types of menting or carrying out any provision of this TITLE II—FHA REFORM AND MANUFAC- energy efficient appliances are— Act, or any amendment made by this Act, the TURED HOUSING LOAN INSURANCE ‘‘(1) dishwashers described in subsection Senate supports a policy of noninterference re- MODERNIZATION (b)(1), garding local government requirements that the Subtitle A—FHA Reform ‘‘(2) clothes washers described in subsection holder of a foreclosed property maintain that property. Sec. 201. Short title. (b)(2), and Sec. 202. Findings and purposes. ‘‘(3) refrigerators described in subsection Amend the title so as to read: ‘‘An Act to Sec. 203. Maximum principal loan obliga- (b)(3).’’. provide needed housing reform and for other tion. (d) AGGREGATE CREDIT AMOUNT ALLOWED.— purposes.’’. Sec. 204. Extension of mortgage term. (1) INCREASE IN LIMIT.—Paragraph (1) of sec- MOTION OFFERED BY MR. FRANK OF tion 45M(e) (relating to aggregate credit amount Sec. 205. Downpayment simplification. MASSACHUSETTS Sec. 206. Mortgage insurance premiums for allowed) is amended to read as follows: Mr. FRANK of Massachusetts. Mr. ‘‘(1) AGGREGATE CREDIT AMOUNT ALLOWED.— qualified homeownership assist- The aggregate amount of credit allowed under Speaker, I have a motion at the desk. ance entities and higher-risk subsection (a) with respect to a taxpayer for any The SPEAKER pro tempore. The borrowers. taxable year shall not exceed $75,000,000 reduced Clerk will designate the motion. Sec. 207. Risk-based mortgage insurance by the amount of the credit allowed under sub- The text of the motion is as follows: premiums. Sec. 208. Payment incentives for higher-risk section (a) to the taxpayer (or any predecessor) Motion offered by Mr. FRANK of Massachu- for all prior taxable years beginning after De- setts: borrowers. cember 31, 2007.’’. Mr. Frank of Massachusetts moves that Sec. 209. Protections for higher-risk bor- (2) EXCEPTION FOR CERTAIN REFRIGERATOR the House concur in the Senate amendments rowers. AND CLOTHES WASHERS.—Paragraph (2) of sec- to the text of H.R. 3221 with each of the three Sec. 210. Refinancing mortgages. tion 45M(e) is amended to read as follows: amendments printed in the report of the Sec. 211. Annual reports on new programs ‘‘(2) AMOUNT ALLOWED FOR CERTAIN REFRIG- Committee on Rules accompanying House and loss mitigation. ERATORS AND CLOTHES WASHERS.—Refrigerators Resolution 1175. Sec. 212. Insurance for single family homes described in subsection (b)(3)(D) and clothes with licensed child care facili- The text of House amendment No. 1 ties. washers described in subsection (b)(2)(D) shall to the Senate amendments is as fol- not be taken into account under paragraph Sec. 213. Rehabilitation loans. (1).’’. lows: Sec. 214. Discretionary action. (e) QUALIFIED ENERGY EFFICIENT APPLI- In the matter proposed to be inserted by Sec. 215. Insurance of condominiums and ANCES.— the amendment of the Senate to the text of manufactured housing. (1) IN GENERAL.—Paragraph (1) of section the bill, strike section 1 and all that follows Sec. 216. Mutual Mortgage Insurance Fund. 45M(f) (defining qualified energy efficient appli- through the end of title V and insert the fol- Sec. 217. Hawaiian home lands and Indian ance) is amended to read as follows: lowing: reservations. ‘‘(1) QUALIFIED ENERGY EFFICIENT APPLI- SEC. 1. SHORT TITLE AND TABLE OF CONTENTS. Sec. 218. Conforming and technical amend- ments. ANCE.—The term ‘qualified energy efficient ap- (a) SHORT TITLE.—This Act may be cited as pliance’ means— the ‘‘American Housing Rescue and Fore- Sec. 219. Home equity conversion mortgages. ‘‘(A) any dishwasher described in subsection closure Prevention Act of 2008’’. Sec. 220. Study on participation of mortgage brokers and correspondent (b)(1), (b) TABLE OF CONTENTS.—The table of con- ‘‘(B) any clothes washer described in sub- tents for this Act is as follows: lenders. section (b)(2), and Sec. 221. Conforming loan limit in disaster Sec. 1. Short title and table of contents. ‘‘(C) any refrigerator described in subsection areas. (b)(3).’’. TITLE I—FHA HOUSING STABILIZATION Sec. 222. Failure to pay amounts from es- (2) CLOTHES WASHER.—Section 45M(f)(3) (de- AND HOMEOWNERSHIP RETENTION crow accounts for single family fining clothes washer) is amended by inserting Sec. 101. Short title. mortgages.

VerDate Aug 31 2005 04:14 May 09, 2008 Jkt 069060 PO 00000 Frm 00031 Fmt 4634 Sfmt 0655 E:\CR\FM\A08MY7.044 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3220 CONGRESSIONAL RECORD — HOUSE May 8, 2008

Sec. 223. Acceptable identification for FHA Sec. 336. Mortgagor identification require- CHAPTER 3—DEPARTMENT OF HOUSING AND mortgagors. ments for mortgages of regu- URBAN DEVELOPMENT Sec. 224. Pilot program for automated proc- lated entities. Sec. 395. Termination of enterprise-related ess for borrowers without suffi- Sec. 337. Revision of housing goals. functions. cient credit history. Sec. 338. Duty to serve underserved markets. Sec. 396. Continuation and coordination of Sec. 225. Sense of Congress regarding tech- Sec. 339. Monitoring and enforcing compli- certain regulations. nology for financial systems. ance with housing goals. Sec. 397. Transfer and rights of employees of Sec. 226. Clarification of disposition of cer- Sec. 340. Affordable Housing Fund. Department of Housing and tain properties. Sec. 341. Consistency with mission. Urban Development. Sec. 227. Valuation of multifamily prop- Sec. 342. Enforcement. Sec. 398. Transfer of appropriations, prop- erties in noncompetitive sales Sec. 343. Conforming amendments. erty, and facilities. by HUD to states and localities. CHAPTER 3—PROMPT CORRECTIVE ACTION TITLE IV—EMERGENCY MORTGAGE Sec. 228. Limitation on mortgage insurance Sec. 345. Capital classifications. LOAN MODIFICATION Sec. 346. Supervisory actions applicable to premium increases. Sec. 401. Short title. Sec. 229. Civil money penalties for improp- undercapitalized regulated enti- Sec. 402. Safe harbor for qualified loan modi- erly influencing appraisals. ties. fications or workout plans for Sec. 230. Mortgage insurance premium re- Sec. 347. Supervisory actions applicable to certain residential mortgage funds. significantly undercapitalized loans. Sec. 231. Savings provision. regulated entities. Sec. 232. Implementation. Sec. 348. Authority over critically under- TITLE V—OTHER HOUSING PROVISIONS Subtitle B—FHA Manufactured Housing capitalized regulated entities. Sec. 501. Depository Institution Community Loan Insurance Modernization Sec. 349. Conforming amendments. Development Investments En- CHAPTER 4—ENFORCEMENT ACTIONS hancement . Sec. 251. Short title. Sec. 502. Preservation of certain affordable Sec. 351. Cease-and-desist proceedings. Sec. 252. Findings and purposes. housing dwelling units. Sec. 352. Temporary cease-and-desist pro- Sec. 253. Exception to limitation on finan- Sec. 503. Eligibility of certain projects for ceedings. cial institution portfolio. enhanced voucher assistance. Sec. 353. Prejudgment attachment. Sec. 254. Insurance benefits. Sec. 504. Transfer of certain rental assist- Sec. 354. Enforcement and jurisdiction. Sec. 255. Maximum loan limits. ance contracts. Sec. 256. Insurance premiums. Sec. 355. Civil money penalties. Sec. 356. Removal and prohibition authority. Sec. 505. Protection against discriminatory Sec. 257. Technical corrections. treatment. Sec. 258. Revision of underwriting criteria. Sec. 357. Criminal penalty. Sec. 259. Requirement of social security ac- Sec. 358. Subpoena authority. TITLE I—FHA HOUSING STABILIZATION Sec. 359. Conforming amendments. count number for assistance. AND HOMEOWNERSHIP RETENTION Sec. 260. GAO study of mitigation of tornado CHAPTER 5—GENERAL PROVISIONS SEC. 101. SHORT TITLE. risks to manufactured homes. Sec. 361. Boards of enterprises. This title may be cited as the ‘‘FHA Hous- TITLE III—REFORM OF GOVERNMENT- Sec. 362. Report on portfolio operations, ing Stabilization and Homeownership Reten- SPONSORED ENTITIES FOR HOUSING safety and soundness, and mis- tion Act of 2008’’. FINANCE sion of enterprises. Subtitle A—Homeownership Retention Sec. 363. Conforming and technical amend- Sec. 301. Short title. SEC. 111. PURPOSES. ments. The purposes of this subtitle are— Sec. 302. Definitions. Sec. 364. Study of alternative secondary (1) to create an FHA program, which is vol- Subtitle A—Reform of Regulation of market systems. Enterprises and Federal Home Loan Banks Sec. 365. Effective date. untary on the part of borrowers and existing mortgage loan holders, including both exist- CHAPTER 1—IMPROVEMENT OF SAFETY AND Subtitle B—Federal Home Loan Banks ing senior mortgage loan holders and exist- SOUNDNESS Sec. 371. Definitions. ing subordinate mortgage loan holders, to in- Sec. 311. Establishment of the Federal Hous- Sec. 372. Directors. sure refinance loans for substantial numbers ing Finance Agency. Sec. 373. Federal Housing Finance Agency of borrowers at risk of foreclosure, at levels Sec. 312. Duties and authorities of Director. oversight of Federal Home which are reasonably likely to be sustainable Sec. 313. Federal Housing Enterprise Board. Loan Banks. through enhanced affordability of debt serv- Sec. 314. Authority to require reports by Sec. 374. Joint activities of Banks. ice; regulated entities. Sec. 375. Sharing of information between (2) to provide flexible underwriting for Sec. 315. Disclosure of income and chari- Federal Home Loan Banks. FHA-insured loans under such a program to Sec. 376. Reorganization of Banks and vol- table contributions by enter- provide refinancing opportunities under fis- untary merger. prises. cally responsible terms, including higher Sec. 377. Securities and Exchange Commis- Sec. 316. Assessments. fees commensurate with higher risk levels, a sion disclosure. Sec. 317. Examiners and accountants. seasoning requirement for higher debt to in- Sec. 378. Community financial institution Sec. 318. Prohibition and withholding of ex- come loans, and additional program controls members. ecutive compensation. to limit and control risk; Sec. 319. Reviews of regulated entities. Sec. 379. Technical and conforming amend- ments. (3) to bar speculators and second home Sec. 320. Inclusion of minorities and women; owners from participation in such program; diversity in Agency workforce. Sec. 380. Study of affordable housing pro- gram use for long-term care fa- (4) to require existing mortgage loan hold- Sec. 321. Regulations and orders. ers to take substantial loan writedowns in Sec. 322. Non-waiver of privileges. cilities. Sec. 381. Effective date. exchange for having the Federal Government Sec. 323. Risk-based capital requirements. and the borrower assume the ongoing risk of Subtitle C—Transfer of Functions, Per- Sec. 324. Minimum and critical capital lev- the refinanced loan; sonnel, and Property of Office of Federal els. (5) to set a loan-to-value limit on such Housing Enterprise Oversight, Federal Sec. 325. Review of and authority over enter- loans that provides the FHA with an equity Housing Finance Board, and Department of prise assets and liabilities. buffer against potential loan losses, provides Housing and Urban Development Sec. 326. Corporate governance of enter- protections against the risk of future home prises. CHAPTER 1—OFFICE OF FEDERAL HOUSING price declines, and creates incentives for bor- Sec. 327. Required registration under Securi- ENTERPRISE OVERSIGHT rowers to maintain payments on the loan; ties Exchange Act of 1934. Sec. 385. Abolishment of OFHEO. (6) to protect the FHA against losses which Sec. 328. Liaison with Financial Institutions Sec. 386. Continuation and coordination of may exceed normal FHA loss levels by estab- Examination Council. certain regulations. lishing higher fee levels, including an exit Sec. 329. Guarantee fee study. Sec. 387. Transfer and rights of employees of fee and profit sharing during the first five Sec. 330. Conforming amendments. OFHEO. years of the loan, with such higher fee levels CHAPTER 2—IMPROVEMENT OF MISSION Sec. 388. Transfer of property and facilities. effectively being funded through the re- SUPERVISION CHAPTER 2—FEDERAL HOUSING FINANCE quired lender writedown; Sec. 331. Transfer of product approval and BOARD (7) to provide a fair level of incentives for housing goal oversight. Sec. 391. Abolishment of the Federal Hous- junior lien holders to provide the necessary Sec. 332. Review of enterprise products. ing Finance Board. releases of their lien interests, in order to Sec. 333. Conforming loan limits. Sec. 392. Continuation and coordination of meet program requirements that all out- Sec. 334. Annual housing report regarding certain regulations. standing liens must be extinguished, and regulated entities. Sec. 393. Transfer and rights of employees of thereby permit the refinancing to be com- Sec. 335. Annual reports by regulated enti- the Federal Housing Finance pleted; ties on affordable housing Board. (8) to enhance the administrative capacity stock. Sec. 394. Transfer of property and facilities. of the FHA to carry out its expanded role

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00032 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.010 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3221 under the program through establishment of meets the requirements of this section, as es- and all fees and penalties related to default an Oversight Board which adds expertise tablished by the Oversight Board, and of sec- or delinquency on all existing mortgages or from the Federal Reserve and the Depart- tion 203, except as modified by this section. mortgages, shall be waived or forgiven. ment of the Treasury, through additional ‘‘(2) ESTABLISHMENT AND IMPLEMENTATION ‘‘(6) REQUIRED LOAN REDUCTION.— funding to contract out for the provision of OF PROGRAM REQUIREMENTS.—The Oversight ‘‘(A) REDUCTION OF INDEBTEDNESS UNDER any needed expertise in designing program Board shall establish program requirements EXISTING SENIOR MORTGAGE.—The amount of requirements and oversight, and through ad- and standards under this section and the indebtedness on the existing mortgage or ditional funding to increase FHA personnel Secretary shall implement such require- mortgages on the residence shall have been resources as needed to handle the increased ments and standards. The Oversight Board substantially reduced by such percentage as loan volume resulting from the program; and the Secretary may establish and imple- the Oversight Board may require, and such (9) to sunset the program when it is no ment any requirements or standards through reduction shall be at least sufficient to— longer needed; and interim guidance and mortgagee letters. ‘‘(i) provide for the refinancing of such ex- (10) to study the need for and efficacy of an ‘‘(c) REQUIREMENTS.—To be eligible for in- isting mortgage or mortgages in an amount auction or bulk refinancing mechanism to surance under this section, a mortgage shall not greater than 90 percent of the current ap- facilitate more expeditious refinancing of comply with all of the following require- praised value of the property involved; larger volumes of existing mortgages that ments: ‘‘(ii) pay the full amount of the single pre- are at risk for foreclosure into FHA-insured ‘‘(1) OWNER-OCCUPIED PRINCIPAL RESIDENCE mium to be collected pursuant to subsection mortgages. REQUIREMENT.—The residence securing the (e)(1) (which shall be an amount equal to 3.0 mortgage insured under this section shall be percent of the amount of the original insured SEC. 112. INSURANCE OF HOMEOWNERSHIP RE- occupied by the mortgagor as the principal TENTION MORTGAGES. principal obligation of the mortgage insured residence of the mortgagor and the mort- under this section and which shall serve as (a) MORTGAGE INSURANCE PROGRAM.—Title gagor shall provide a certification to the II of the National Housing Act (12 U.S.C. 1707 an additional reserve to cover possible loan originator of the mortgage that such resi- et seq.) is amended by adding at the end the losses); and dence securing the mortgage insured under following new section: ‘‘(iii) pay the full amount of the loan origi- this section is the only residence in which nation fee and any other closing costs, not to ‘‘SEC. 257. INSURANCE OF HOMEOWNERSHIP RE- the mortgagor has any present ownership in- exceed 2.0 percent of the amount of the origi- TENTION MORTGAGES. terest. With regard to such certification, the nal insured principal obligation of the mort- ‘‘(a) OVERSIGHT BOARD.— Oversight Board may create exceptions for gage insured under this section. ‘‘(1) ESTABLISHMENT.—There is hereby es- mortgagors who have only a partial owner- ‘‘(B) EXTINGUISHMENT OF DEBT BY REFI- tablished the Refinance Program Oversight ship interest in a residence other than the NANCING.— Board (in this section referred to as the residence securing the mortgage insured ‘‘(i) REQUIRED AGREEMENT.—All existing ‘Oversight Board’). under this section. holders of mortgage liens on the property se- ‘‘(2) MEMBERSHIP.—The Oversight Board ‘‘(2) LACK OF CAPACITY TO PAY EXISTING curing the mortgage to be insured under this shall consist of the following members or MORTGAGE OR MORTGAGES.— section shall agree to accept the proceeds of their designees: ‘‘(A) BORROWER CERTIFICATION.— the insured loan as payment in full of all in- ‘‘(A) The Secretary of the Treasury. ‘‘(i) The mortgagor shall provide a certifi- debtedness under all existing mortgages, and ‘‘(B) The Secretary of Housing and Urban cation to the originator of the mortgage that all encumbrances related to such mortgages Development. the mortgagor— shall be removed. The Oversight Board may ‘‘(C) The Chairman of the Board of Gov- ‘‘(I) has not intentionally defaulted on the take such actions as the Oversight Board ernors of the Federal Reserve System. existing mortgage or mortgages; and considers necessary or appropriate to facili- ‘‘(3) NO ADDITIONAL COMPENSATION.—Mem- ‘‘(II) has not knowingly, or willfully and tate coordination and agreement between bers of the Oversight Board shall receive no with actual knowledge furnished material the holders of the existing senior mortgage additional pay by reason of service on the information known to be false for the pur- and any existing subordinate mortgages, Oversight Board. pose of obtaining the existing mortgage or taking into consideration the subordinate ‘‘(4) RESPONSIBILITIES.—The Oversight mortgages. lien status of such subordinate mortgages, to Board shall be responsible for establishing ‘‘(ii) The mortgagor shall agree in writing comply with the requirement under this sub- program and oversight requirements for the that the mortgagor shall be liable to repay paragraph. program under this section, which shall in- the FHA any direct financial benefit ‘‘(ii) TREATMENT OF MULTIPLE MORTGAGE clude— achieved from the reduction of indebtedness LIENS.—In addition to clause (i), the Over- ‘‘(A) detailed program requirements under on the existing mortgage or mortgages on sight Board shall adopt one of the following subsection (c); the residence refinanced under this section approaches for all mortgages or such classes ‘‘(B) flexible underwriting criteria under derived from misrepresentations made in the of mortgages as the Oversight Board may de- subsection (d); certifications and documentation required termine and may, from time to time, recon- ‘‘(C) a mortgage premium structure under under this subparagraph, subject to the dis- sider: subsection (e); cretion of the Oversight Board. ‘‘(I) FIXED PRICE.—As a requirement for ‘‘(D) a reasonable fee and rate limitation ‘‘(B) CURRENT BORROWER DEBT-TO-INCOME participating in this program, all existing under subsection (f); RATIO.—As of March 1, 2008, the mortgagor lien holders will agree to not provide any ‘‘(E) enhancement of FHA capacity under shall have had a ratio of mortgage debt to payment to subordinate lien holders other subsection (i), including oversight of such ac- income, taking into consideration all exist- than such payment in accordance with a for- tivities and personnel as may be contracted ing mortgages at such time, greater than 35 mula established by the Oversight Board as for as provided therein; percent. set forth in clause (iii); except that the Over- ‘‘(F) monitoring of underwriting risk under ‘‘(C) LOSS MITIGATION RESPONSIBILITIES.— sight Board may establish a short period subsection (j); and This section may not be construed to alter within which first and subordinate lien hold- ‘‘(G) such additional requirements as may or in any way affect the responsibilities of ers may negotiate to extinguish all subordi- be necessary and appropriate to oversee and any party (including the mortgage servicer) nate liens for compensation that may be dif- implement the program. to engage in any or all loan modification or ferent from the amount determined under ‘‘(5) USE OF RESOURCES.—In carrying out its other loss mitigation strategies to maximize such formula set forth in clause (iii). functions under this section, the Oversight value to investors as established by any ap- ‘‘(II) SHARED EQUITY.—The Oversight Board Board may utilize, with their consent and to plicable contract. may require the mortgagor under a mort- the extent practical, the personnel, services, ‘‘(3) ELIGIBILITY OF MORTGAGES BY DATE OF gage insured under this section to agree to and facilities of the Department of the ORIGINATION.—The existing senior mortgage share a portion of any future equity in the Treasury, the Department of Housing and shall have been originated on or before De- mortgaged property with holders of existing Urban Development, the Board of Governors cember 31, 2007. subordinate mortgages, in accordance with a of the Federal Reserve System, the Federal ‘‘(4) MAXIMUM LOAN-TO-VALUE RATIO FOR formula for such shared equity established Reserve Banks, and other Federal agencies, NEW LOANS.—The mortgage being insured by the Oversight Board as set forth in clause with or without reimbursement therefore. under this section shall involve a principal (iii), except that payments of such shared eq- ‘‘(b) AUTHORITY.— obligation (including such initial service uity may be made only after the Secretary ‘‘(1) IN GENERAL.—The Secretary shall, sub- charges, appraisal, inspection, and other fees recovers all amounts owed to the Secretary ject only to the absence of qualified requests as the Secretary shall approve and including with respect to such mortgage pursuant to for insurance under this section and to the the mortgage insurance premium paid pursu- the program under this section (including limitations under subsection (h) of this sec- ant to subsection (e)(1)) in an amount not to amounts owed pursuant to paragraph (8)). tion and section 531(a), make commitments exceed 90 percent of the current appraised ‘‘(iii) FORMULA.—In determining a formula to insure and insure any mortgage covering value of the property. Section 203(d) shall for determining any payments to subordi- a 1- to 4-family residence that is made for not apply to mortgages insured under this nate lien holders pursuant to subclauses (I) the purpose of paying or prepaying out- section. and (II) of clause (ii), and in any reconsider- standing obligations under an existing mort- ‘‘(5) REQUIRED WAIVER OF PREPAYMENT PEN- ation of such formula as the Oversight Board gage or mortgages on the residence if the ALTIES AND FEES.—All penalties for prepay- may from time to time undertake, the Over- mortgage being insured under this section ment of the existing mortgage or mortgages, sight Board shall take into consideration the

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00033 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.010 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3222 CONGRESSIONAL RECORD — HOUSE May 8, 2008 current market value of such liens. In no the term of the mortgage, 100 percent of such cost of the search not to exceed a maximum case may a formula provide for the payment net proceeds; rate established by the Oversight Board. The of more than 1 percent of the current ap- ‘‘(II) in the case of any refinancing, sale, or Oversight Board may provide clarification, if praised value of the mortgaged property to a disposition occurring during the second year needed, to help mortgagees identify any dif- subordinate lien holder if the outstanding of the term of the mortgage, 80 percent; ferences among the States in how they re- balance owed to more senior lien holders is ‘‘(III) in the case of any refinancing, sale, port mortgage fraud convictions. The Over- equal to or exceeds such current appraised or disposition occurring during the third sight Board shall establish procedures suffi- value. year of the term of the mortgage, 60 percent; cient to allow the mortgagor to challenge a ‘‘(iv) VOLUNTARY PROGRAM.—This section and mortgagee’s determination with respect to may not be construed to require any holder ‘‘(IV) in the case of any refinancing, sale, paragraph (12) (including to correct inac- of any existing mortgage to participate in or disposition occurring during the fourth curacies resulting from theft of the mortga- the program under this section generally, or year of the term of the mortgage or at any gor’s identity or personally identifiable in- with respect to any particular loan. time thereafter, 50 percent; formation). ‘‘(v) SOURCE OF PAYMENTS FOR SUBORDINATE except that such percentage of proceeds shall ‘‘(14) APPRAISALS.—Any appraisal con- LOANS.—Any amounts paid to holders of any be reduced by all fees the Secretary has col- ducted in connection with a mortgage in- existing subordinate mortgages in connec- lected for the mortgage prior to such refi- sured under this section shall— tion with the origination and insurance of a nancing, sale, or disposition. ‘‘(A) be based on the current value of the mortgage under this section shall derive ‘‘(E) NET PROCEEDS AVAILABLE FOR PROFIT- property; only from— SHARING.—With respect to any mortgage in- ‘‘(B) be conducted in accordance with title ‘‘(I) the holder of the existing senior mort- sured under this section, the net proceeds XI of the Financial Institutions Reform, Re- gage; or available for purposes of subparagraph (D)(ii) covery, and Enforcement Act of 1989 (12 ‘‘(II) in the case only of the shared equity shall be any proceeds resulting from the sale, U.S.C. 3331 et seq.); approach under clause (ii)(II), the mortgagor refinancing, or other disposition of the resi- ‘‘(C) be completed by an appraiser who under the mortgage insured under this sec- dence securing the mortgage that remain meets the competency requirements of the tion after deducting the original insured prin- Uniform Standards of Professional Appraisal ‘‘(7) REQUIRED REDUCTION OF DEBT SERV- cipal obligation of the mortgage. In the case Practice; ICE.—The debt service payments due under the mortgage insured under this section of a refinance, non-arms length transaction, ‘‘(D) be wholly consistent with the ap- shall be in an amount that is substantially or such other transaction as the Oversight praisal standards, practices, and procedures reduced from the debt service payments due Board shall determine, the proceeds shall be under section 202(e) of this Act that apply to under the existing mortgage or mortgages, based on the current appraised value at the all loans insured under this Act; and which reduction may be achieved through a time of the refinance or transaction. ‘‘(E) comply with the requirements of sub- reduction of indebtedness, a reduction in the ‘‘(F) AUTHORITY TO PROHIBIT NEW SECOND section (g) of this section (relating to ap- interest rate being paid, or an extension of LIENS.—The Oversight Board shall prohibit praisal independence). the term of the mortgage, or any combina- borrowers from granting a new second lien ‘‘(15) STATEMENT OF LOAN TERMS.— tion thereof. on the mortgaged property during the first ‘‘(A) REQUIREMENT.—The mortgagor shall ‘‘(8) FINANCIAL RECOVERY TO FEDERAL GOV- five years of the term of the mortgage in- have been provided by the mortgagee, not ERNMENT THROUGH EXIT PREMIUM.— sured under this section, except as the Over- later than three days before closing for the ‘‘(A) SUBORDINATE LIEN.—The mortgage sight Board determines to be necessary to mortgage, a form described in subparagraph shall provide that the Secretary shall retain ensure the appropriate maintenance of the (B) appropriately and accurately completed a lien on the residence involved, which shall mortgaged property. by the mortgagee. be subordinate to the mortgage insured ‘‘(9) DOCUMENTATION AND VERIFICATION OF ‘‘(B) FORM.—The form described in this under this section but senior to all other INCOME.—In complying with the FHA under- subparagraph shall be a single page, written mortgages on the residence that may exist writing requirements under the program disclosure regarding the mortgage loan to be at any time, and which shall secure the re- under this section, the mortgagee shall docu- insured under this section that, when com- payment of the amount due under subpara- ment and verify the income of the mortgagor pleted by the mortgagee, sets forth, in ac- graph (D). or non-filing status by procuring (A) an in- cordance with such requirements as the Sec- ‘‘(B) NO INTEREST OR PAYMENT DURING come tax return transcript of the income tax retary shall by regulation establish a best MORTGAGE.—The amount secured by the lien returns of the mortgagor, or (B) a copy of possible estimate of— retained by the Secretary pursuant to sub- the income tax returns for the Internal Rev- ‘‘(i) the total loan amount under the mort- paragraph (A) shall not bear interest and enue Service, for the two most recent years gage; shall not be repayable to the Secretary ex- for which the filing deadline for such years ‘‘(ii) the loan-to-value ratio for the mort- cept as provided in subparagraph (D) of this has passed and by any other method, in ac- gage; paragraph. cordance with procedures and standards that ‘‘(iii) the final maturity date for the mort- ‘‘(C) NET PROCEEDS AVAILABLE FOR EXIT the Oversight Board shall establish. gage; PREMIUM.—Upon the sale, refinancing, or ‘‘(10) FIXED RATE MORTGAGE.—The mort- ‘‘(iv) the amount of any prepayment fee to other disposition of the residence securing a gage insured under this section shall bear in- be charged if the mortgage is paid in full be- mortgage insured under this section, any terest at a single rate that is fixed for the fore the final maturity date for the mort- proceeds resulting from such disposition that entire term of the mortgage. gage, including the percentages of any net remain after deducting the remaining in- ‘‘(11) MAXIMUM LOAN AMOUNT.—Notwith- proceeds to be received by the Secretary pur- sured principal balance of the mortgage in- standing section 203(b)(2), the mortgage suant to paragraph (8)(D)(ii); sured under this section shall be available to being insured under this section shall in- ‘‘(v) the amount of the exit premium under meet the obligation under subparagraph (D). volve a principal obligation in an amount the mortgage pursuant to subsection (e)(3); In the case of a refinance, non-arms length that does not exceed the limitation (for a ‘‘(vi) the interest rate under the mortgage transaction, or such other transaction as the property of the applicable size) on the expressed as an annual percentage rate, and Oversight Board shall determine, the pro- amount of the principal obligation that the amount of the monthly payment due ceeds shall be based on the current appraised would be allowable under the terms of sec- under such rate; value at the time of the refinance or trans- tion 202(a) of the Economic Stimulus Act of ‘‘(vii) the fully indexed rate of interest action. 2008 if the mortgage were insured pursuant under the mortgage expressed as an annual ‘‘(D) EXIT PREMIUM.—Upon any refinancing to such section. The limitation on the percentage rate and the amount of the of the mortgage insured under this section or amount of the principal obligation allowable monthly payment due under such rate; any sale or disposition of the residence se- under such Act shall apply for the purposes ‘‘(viii) the monthly household income of curing the mortgage, the Secretary shall, of this section until the termination under the borrower upon which the mortgage is subject to the availability of sufficient net subsection (n) of the program under this sec- based; proceeds described in subparagraph (C), re- tion. ‘‘(ix) the amount of the monthly payment ceive the greater of— ‘‘(12) INELIGIBILITY FOR FRAUD CONVIC- due under the mortgage, and the amount of ‘‘(i) 3 percent of the amount of the original TION.—The mortgagor shall not have been such initial monthly payment plus monthly insured principal obligation of the mortgage convicted under Federal or State law for amounts due for taxes and insurance on the (or the entire amount of the net proceeds de- mortgage fraud during the 7-year period end- property for which the mortgage is made, scribed in subparagraph (C) if such net pro- ing upon the insurance of the mortgage both expressed as a percentage of the month- ceeds are less than 3 percent of the amount under this section. ly household income of the borrower; and of the original insured principal obligation ‘‘(13) LENDER REVIEW.—The mortgagee ‘‘(x) the aggregate amount of settlement of the mortgage); or under the mortgage shall conduct an elec- charges for all settlement services provided ‘‘(ii) a percentage of the portion of the net tronic database search of the mortgagor’s in connection with the mortgage, the proceeds available for profit-sharing, as de- criminal history to determine if the mort- amount of such charges that are included in scribed in subparagraph (E), which shall be— gagor has had a conviction described in para- the principal amount and the amount of such ‘‘(I) in the case of any refinancing, sale, or graph (12). The mortgagee may charge the charges the borrower must pay at closing, disposition occurring during the first year of mortgagor a reasonable fee for the actual the aggregate amount of mortgagee’s fees

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00034 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.010 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3223

connection with the mortgage, and the ag- ‘‘(2) in addition to the premium under ‘‘(1) MONITORING OF DESIGNATED UNDER- gregate amount of other fees or required paragraph (1), annual premium payments in WRITERS.—The Oversight Board and the Sec- payments in connection with the mortgage. an amount equal to 1.50 percent of the re- retary shall monitor independent quality re- ‘‘(d) FLEXIBLE UNDERWRITING CRITERIA.— maining insured principal balance of the views as established pursuant to subsection ‘‘(1) IN GENERAL.—The Oversight Board mortgage; and (i)(2) to— shall establish, and the Secretary acting on ‘‘(3) an exit premium in the amount deter- ‘‘(A) determine compliance of designated behalf of the Oversight Board shall imple- mined under subsection (c)(8), but which underwriters with underwriting standards; ment, underwriting standards for mortgages shall not be less than 3.0 percent of the origi- ‘‘(B) determine rates of delinquency, insured under this section that— nal insured principal obligation of the mort- claims rates, and loss rates of designated un- ‘‘(A) ensure that each mortgagor under a gage, subject only to the availability of suf- derwriters; and mortgage insured under this section has a ficient net proceeds from sale, refinancing, ‘‘(C) terminate eligibility of designated un- reasonable expectation of repaying the mort- or other disposition of the property, as deter- derwriters that do not meet minimum per- gage, taking into consideration the mortga- mined in subsection (c)(8). formance standards as the Oversight Board gor’s income, assets, liabilities, payment his- ‘‘(f) ORIGINATION FEES AND MORTGAGE may establish and the Secretary imple- tory, and other applicable criteria, but which RATE.—The Oversight Board shall establish ments. shall not result in a denial of insurance sole- and the Secretary shall implement a reason- ‘‘(2) REPORTS BY OVERSIGHT BOARD.—The ly on the basis of the mortgagor’s current able limitation on origination fees for mort- Oversight Board shall submit monthly re- FICO or other credit scores, or any delin- gages insured under this section and shall es- ports to the Congress identifying the quency or default by the mortgagor under tablish procedures to ensure that interest progress of the program for mortgage insur- the existing mortgage or mortgages, or any rates on such mortgages shall be commensu- ance under this section, which shall contain case filed under title 11, United States Code, rate with market rate interest rates on such the following information for each month: by the mortgagor; and types of loans. ‘‘(A) The number of new mortgages insured ‘‘(g) APPRAISAL INDEPENDENCE.— ‘‘(B) subject to the provisions of subpara- under this section, including the location of ‘‘(1) PROHIBITIONS ON INTERESTED PARTIES graph (A), permit a total debt-to-income the properties subject to such mortgages by IN A REAL ESTATE TRANSACTION.—No mort- ratio of up to 43 percent. census tract. gage lender, mortgage broker, mortgage ‘‘(B) The aggregate principal obligation of ‘‘(2) EXCEPTION.— banker, real estate broker, appraisal man- new mortgages insured under this section. ‘‘(A) IN GENERAL.—Subject to the under- agement company, employee of an appraisal ‘‘(C) The average amount by which the in- writing standards established under para- management company, nor any other person debtedness on existing mortgages is reduced graph (1)(A) and any additional requirements with an interest in a real estate transaction in accordance with subsection (c)(6). that the Oversight Board considers appro- involving an appraisal in connection with a ‘‘(D) The average amount by which the priate, the Oversight Board shall permit a mortgage insured under this section shall debt service payments on existing mortgages total debt-to-income ratio of more than 43 improperly influence, or attempt to improp- is reduced in accordance with subsection percent, but not more than 50 percent, if the erly influence, through coercion, extortion, (c)(7). mortgagor has made, on a timely basis be- collusion, compensation, instruction, induce- ‘‘(E) The amount of premiums collected for fore the endorsement of the mortgage in- ment, intimidation, non-payment for serv- insurance of mortgages under this section. sured under this section, not less than six ices rendered, or bribery, the development, ‘‘(F) The claim and loss rates for mort- months of payments in an amount not less reporting, result, or review of a real estate gages insured under this section. than the amount of the monthly payment appraisal sought in connection with the ‘‘(G) The race, ethnicity, gender, and in- due under the mortgage to be insured under mortgage. come of the mortgagors, aggregated by geo- this section. The holder of the existing sen- ‘‘(2) EXCEPTIONS.—The requirements of graphical areas at least as specific as census ior mortgage shall exercise forbearance with paragraph (1) shall not be construed as pro- tracts, except where necessary to protect respect to such mortgage during the period hibiting a mortgage lender, mortgage privacy of the borrower. in which such payments are made. broker, mortgage banker, real estate broker, ‘‘(H) Any other information that the Over- ‘‘(B) COMPUTATION OF DEBT-TO-INCOME appraisal management company, employee sight Board considers appropriate. RATIO.— In computing the mortgagor’s total of an appraisal management company, or ‘‘(3) REPORT BY INSPECTOR GENERAL.—The debt-to-income ratio for purposes of mort- any other person with an interest in a real Inspector General of the Department of gage qualification under the underwriting estate transaction from asking an appraiser Housing and Urban Development shall con- standards established pursuant to this sec- to provide 1 or more of the following serv- duct an annual audit of the program for tion— ices: mortgage insurance under this section to de- ‘‘(i) if the mortgagor is a debtor in a case ‘‘(A) Consider additional, appropriate prop- termine compliance with this section and under chapter 13 of title 11, United States erty information, including the consider- program rules. Code, payments on recurring debts other ation of additional comparable properties to ‘‘(k) GNMA COMMITMENT AUTHORITY.— than housing expenses shall be based on the make or support an appraisal. ‘‘(1) GUARANTEES.—The Secretary shall amounts being paid on such debts under the ‘‘(B) Provide further detail, substantiation, take such actions as may be necessary to en- mortgagor’s confirmed plan under such chap- or explanation for the appraiser’s value con- sure that securities based on and backed by ter; and clusion. a trust or pool composed of mortgages in- ‘‘(ii) if the mortgagor is a debtor in a case ‘‘(C) Correct errors in the appraisal report. sured under this section are available to be under chapter 7 of title 11, United States ‘‘(3) CIVIL MONETARY PENALTIES.—The Sec- guaranteed by the Government National Code, recurring debts that are to be dis- retary may impose a civil money penalty for Mortgage Association as to the timely pay- charged in that case shall not be considered. any knowing and material violation of para- ment of principal and interest. ‘‘(3) AUTHORITY.—The Oversight Board may graph (1) under the same terms and condi- ‘‘(2) GUARANTEE AUTHORITY.—To carry out alter the ratios under this subsection for a tions as are authorized in section 536(a) of the purposes of section 306 of the National particular class of borrowers subject to such this Act. Housing Act (12 U.S.C. 1721), the Government requirements as the Board determines is nec- ‘‘(h) LIMITATION ON AGGREGATE INSURANCE National Mortgage Association may enter essary and appropriate to fulfill the purposes AUTHORITY.—The aggregate original prin- into new commitments to issue guarantees of this Act. cipal obligation of all mortgages insured of securities based on or backed by mort- ‘‘(4) REPRESENTATIONS AND WARRANTIES.— under this section may not exceed gages insured under this section, not exceed- The Oversight Board shall require the under- $300,000,000,000. ing $300,000,000,000. The amount of authority writer of the insured loan to provide such ‘‘(i) ENHANCEMENT OF FHA CAPACITY.— provided under the preceding sentence to representations and warranties as the Over- Under the direction of the Oversight Board, enter into new commitments to issue guar- sight Board considers necessary or appro- the Secretary shall take such actions as may antees is in addition to any amount of au- priate for the Secretary to enforce compli- be necessary to— thority to make new commitments to issue ance with all underwriting and appraisal ‘‘(1) contract for the establishment of un- guarantees that is provided to the Associa- standards of the program. derwriting criteria, automated underwriting tion under any other provision of law. ‘‘(e) PREMIUMS.—For each mortgage in- systems, pricing standards, and other factors ‘‘(l) SPECIAL RISK INSURANCE FUND.—The sured under this section, the Oversight relating to eligibility for mortgages insured insurance of each mortgage under this sec- Board shall establish and the Secretary shall under this section; tion shall be the obligation of the Special collect— ‘‘(2) contract for independent quality re- Risk Insurance Fund established by section ‘‘(1) at the time of insurance, a single pre- views of underwriting, including appraisal 238. mium payment in an amount equal to 3.0 reviews and fraud detection, of mortgages in- ‘‘(m) DEFINITIONS.—For purposes of this percent of the amount of the original insured sured under this section or pools of such section, the following definitions shall apply: principal obligation of the mortgage, which mortgages; and ‘‘(1) EXISTING MORTGAGE.—The term ‘exist- shall be paid from the proceeds of the mort- ‘‘(3) increase personnel of the Department ing mortgage’ means, with respect to a mort- gage being insured under this section, as necessary to process or monitor the proc- gage insured under this section, a mortgage through the reduction of the amount of in- essing of mortgages insured under this sec- that is to be extinguished, and paid or pre- debtedness on the existing senior mortgage tion. paid, from the proceeds of the mortgage in- required under subsection (c)(6)(A); ‘‘(j) MONITORING OF UNDERWRITING RISK.— sured under this section.

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00035 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.010 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3224 CONGRESSIONAL RECORD — HOUSE May 8, 2008

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

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00036 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.010 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3225 loans insured under the National Housing SEC. 116. GAO STUDY OF THE EFFECT OF TIGHT- ‘‘(ii) carrying out all other functions of the Act. ENING CREDIT MARKETS IN COMMU- Secretary under section 106(g) of the Housing NITIES AFFECTED BY THE and Urban Development Act of 1968, includ- (c) REPORT.—Not later than the expiration SUBPRIME MORTGAGE FORE- ing the establishment, operation, and publi- of the 60-day period beginning on the date of CLOSURE CRISES AND PREDATORY cation of the availability of the toll-free the enactment of this Act, the Board of Gov- LENDING ON PROSPECTIVE FIRST- telephone number under paragraph (2) of ernors shall submit a report regarding the TIME HOMEBUYERS SEEKING MORT- GAGES. such section; results of the study conducted under this The Comptroller General of the United ‘‘(iii) carrying out section 5 of the Real Es- section to the Committee on Financial Serv- States shall conduct a study to analyze the tate Settlement Procedures Act of 1974 (12 ices of the House of Representatives and the effects of tightening credit markets on pro- U.S.C. 2604) for home buying information Committee on Banking, Housing, and Urban spective first-time home buyers who reside booklets prepared pursuant to such section; Affairs of the Senate. The report shall in- in selected communities that have been most ‘‘(iv) carrying out the certification pro- clude a detailed description of the analysis detrimentally affected by both the current gram under section 106(e) of the Housing and required under subsection (b)(1) and of the subprime mortgage foreclosure crisis and Urban Development Act of 1968 (12 U.S.C. determinations made pursuant to subsection predatory mortgage lending. Such study 1701x(e)); (b)(2), and shall include any other findings shall also analyze the adequacy of financial ‘‘(v) carrying out the assistance program and recommendations of the Board of Gov- literacy outreach efforts by agencies of the under section 106(a)(4) of the Housing and ernors pursuant to the study, including iden- Federal Government tasked with imple- Urban Development Act of 1968, including tifying various options for mechanisms de- menting financial literacy education in such criteria for selection of applications to re- scribed in subsection (a). communities and shall assess whether the ceive assistance; current funding levels for such efforts are at ‘‘(vi) carrying out any functions regarding SEC. 114. TEMPORARY INCREASE IN MAXIMUM sufficient levels to reduce the levels of abusive, deceptive, or unscrupulous lending LOAN GUARANTY AMOUNT FOR CER- subprime mortgage delinquencies and fore- practices relating to residential mortgage TAIN HOUSING LOANS GUARANTEED closures and to increase the level of financial loans that the Secretary considers appro- BY SECRETARY OF VETERANS AF- priate, which shall include conducting the FAIRS. literacy in the selected communities so as to minimize the incidences of predatory mort- study under section 136 of the Expand and Notwithstanding subparagraph (C) of sec- gage lending. Not later than the expiration Preserve Home Ownership Through Coun- tion 3703(a)(1) of title 38, United States Code, of the 6-month period beginning on the date seling Act; for purposes of any loan described in sub- of the enactment of this Act, the Comp- ‘‘(vii) providing for operation of the advi- paragraph (A)(i)(IV) of such section that is troller General shall submit a report to the sory committee established under paragraph originated during the period beginning on Congress setting forth the results of the (4) of this subsection; the date of the enactment of this Act and study and including recommendations re- ‘‘(viii) collaborating with community- based organizations with expertise in the ending on December 31, 2008, the term ‘‘max- garding such funding levels. field of housing counseling; and imum guaranty amount’’ shall mean an Subtitle B—Office of Housing Counseling ‘‘(ix) providing for the building of capacity amount equal to 25 percent of the higher of— SEC. 131. SHORT TITLE. to provide housing counseling services in (1) the limitation determined under section This subtitle may be cited as the ‘‘Expand areas that lack sufficient services. 305(a)(2) of the Federal Home Loan Mortgage and Preserve Home Ownership Through ‘‘(4) ADVISORY COMMITTEE.— Corporation Act (12 U.S.C. 1454(a)(2)) for the Counseling Act’’. ‘‘(A) IN GENERAL.—The Secretary shall ap- calendar year in which the loan is originated SEC. 132. ESTABLISHMENT OF OFFICE OF HOUS- point an advisory committee to provide ad- for a single-family residence; or ING COUNSELING. vice regarding the carrying out of the func- (2) 125 percent of the area median price for Section 4 of the Department of Housing tions of the Director. a single-family residence, but in no case to and Urban Development Act (42 U.S.C. 3533) ‘‘(B) MEMBERS.—Such advisory committee exceed 175 percent of the limitation deter- is amended by adding at the end the fol- shall consist of not more than 12 individuals, mined under such section 305(a)(2) for the lowing new subsection: and the membership of the committee shall calendar year in which the loan is originated ‘‘(g) OFFICE OF HOUSING COUNSELING.— equally represent all aspects of the mortgage for a single-family residence. ‘‘(1) ESTABLISHMENT.—There is established, and real estate industry, including con- in the Office of the Secretary, the Office of SEC. 115. STUDY OF POSSIBLE ACCOUNTING RE- sumers. VISIONS RELATING TO PROPERTY Housing Counseling. ‘‘(C) TERMS.—Except as provided in sub- AT RISK OF FORECLOSURE AND THE ‘‘(2) DIRECTOR.—There is established the paragraph (D), each member of the advisory AVAILABILITY OF CREDIT FOR REFI- position of Director of Housing Counseling. committee shall be appointed for a term of 3 NANCING HOME MORTGAGES AT The Director shall be the head of the Office years. Members may be reappointed at the RISK OF FORECLOSURE. of Housing Counseling and shall be appointed discretion of the Secretary. (a) STUDY REQUIRED.—The Securities and by the Secretary. Such position shall be a ‘‘(D) TERMS OF INITIAL APPOINTEES.—As Exchange Commission, in consultation with career-reserved position in the Senior Execu- designated by the Secretary at the time of the Board of Governors of the Federal Re- tive Service. appointment, of the members first appointed ‘‘(3) FUNCTIONS.— serve System, shall conduct a study on fair to the advisory committee, 4 shall be ap- ‘‘(A) IN GENERAL.—The Director shall have pointed for a term of 1 year and 4 shall be ap- value accounting standards applicable to fi- ultimate responsibility within the Depart- pointed for a term of 2 years. nancial institutions, including depository in- ment, except for the Secretary, for all activi- ‘‘(E) PROHIBITION OF PAY; TRAVEL EX- stitutions, with respect to their residential ties and matters relating to homeownership PENSES.—Members of the advisory com- mortgages that are at risk of foreclosure and counseling and rental housing counseling, in- mittee shall serve without pay, but shall re- mortgage-backed securities involving such cluding— ceive travel expenses, including per diem in mortgages, the effects of such accounting ‘‘(i) research, grant administration, public lieu of subsistence, in accordance with appli- standards on a financial institution’s bal- outreach, and policy development relating to cable provisions under subchapter I of chap- ance sheet and capacity to provide refi- such counseling; and ter 57 of title 5, United States Code. nancing to residential mortgagors that are ‘‘(ii) establishment, coordination, and ad- ‘‘(F) ADVISORY ROLE ONLY.—The advisory at risk of foreclosure and to residential ministration of all regulations, require- committee shall have no role in reviewing or mortgagors during periods of market value ments, standards, and performance measures awarding housing counseling grants. declines and increased foreclosures, and the under programs and laws administered by ‘‘(5) SCOPE OF HOMEOWNERSHIP COUN- advisability and feasibility of modifications the Department that relate to housing coun- SELING.—In carrying out the responsibilities of such standards during periods of market seling, homeownership counseling (including of the Director, the Director shall ensure fluctuation in order to maintain the ability maintenance of homes), mortgage-related that homeownership counseling provided by, of the institution to continue to carry mort- counseling (including home equity conver- in connection with, or pursuant to any func- gages on residential property at risk of fore- sion mortgages and credit protection options tion, activity, or program of the Department closure and assure the availability of credit to avoid foreclosure), and rental housing addresses the entire process of homeowner- to refinance at-risk residential mortgages. counseling, including the requirements, ship, including the decision to purchase a standards, and performance measures relat- home, the selection and purchase of a home, (b) REPORT REQUIRED.—The Securities and ing to housing counseling. issues arising during or affecting the period Exchange Commission shall submit a report ‘‘(B) SPECIFIC FUNCTIONS.—The Director of ownership of a home (including refi- to the Congress before the end of the 90-day shall carry out the functions assigned to the nancing, default and foreclosure, and other period beginning on the date of the enact- Director and the Office under this section financial decisions), and the sale or other ment of this Act containing the findings and and any other provisions of law. Such func- disposition of a home.’’. determinations of the Commission with re- tions shall include establishing rules nec- SEC. 133. COUNSELING PROCEDURES. spect to the study conducted under sub- essary for— (a) IN GENERAL.—Section 106 of the Hous- section (a) and such administrative and leg- ‘‘(i) the counseling procedures under sec- ing and Urban Development Act of 1968 (12 islative recommendations as the Commission tion 106(g)(1) of the Housing and Urban De- U.S.C. 1701x) is amended by adding at the end may determine to be appropriate. velopment Act of 1968 (12 U.S.C. 1701x(h)(1)); the following new subsection:

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00037 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.010 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3226 CONGRESSIONAL RECORD — HOUSE May 8, 2008

‘‘(g) PROCEDURES AND ACTIVITIES.— ‘‘(i) section 105(a)(20) of the Housing and including public libraries, senior-citizen cen- ‘‘(1) COUNSELING PROCEDURES.— Community Development Act of 1974 (42 ters, public housing sites, offices of public ‘‘(A) IN GENERAL.—The Secretary shall es- U.S.C. 5305(a)(20)); housing agencies that administer rental tablish, coordinate, and monitor the admin- ‘‘(ii) in the United States Housing Act of housing assistance vouchers, and housing istration by the Department of Housing and 1937— counseling centers. Urban Development of the counseling proce- ‘‘(I) section 9(e) (42 U.S.C. 1437g(e)); ‘‘(4) NATIONAL PUBLIC SERVICE MULTIMEDIA dures for homeownership counseling and ‘‘(II) section 18(a)(4)(D) (42 U.S.C. CAMPAIGNS TO PROMOTE HOUSING COUN- rental housing counseling provided in con- 1437p(a)(4)(D)); SELING.— nection with any program of the Depart- ‘‘(III) section 23(c)(4) (42 U.S.C. 1437u(c)(4)); ‘‘(A) IN GENERAL.—The Director of Housing ment, including all requirements, standards, ‘‘(IV) section 32(e)(4) (42 U.S.C. 1437z– Counseling shall develop, implement, and and performance measures that relate to 4(e)(4)); conduct national public service multimedia homeownership and rental housing coun- ‘‘(V) section 33(d)(2)(B) (42 U.S.C. 1437z– campaigns designed to make persons facing seling. 5(d)(2)(B)); and mortgage foreclosure, persons considering a ‘‘(B) HOMEOWNERSHIP COUNSELING.—For ‘‘(VI) section 302(b)(6) (42 U.S.C. 1437aaa– subprime mortgage loan to purchase a home, purposes of this subsection and as used in 1(b)(6)); elderly persons, persons who face language the provisions referred to in this subpara- ‘‘(iii) section 233(b)(2) of the Cranston-Gon- barriers, low-income persons, and other po- graph, the term ‘homeownership counseling’ zalez National Affordable Housing Act (42 tentially vulnerable consumers aware that it means counseling related to homeownership U.S.C. 12773(b)(2)); is advisable, before seeking or maintaining a residential mortgage loan, to obtain home- and residential mortgage loans. Such term ‘‘(iv) section 106 of the Housing and Urban ownership counseling from an unbiased and includes counseling related to homeowner- Development Act of 1968 (12 U.S.C. 1701x); reliable sources and that such homeowner- ship and residential mortgage loans that is ‘‘(v) section 422(b)(6) of the Cranston-Gon- ship counseling is available, including provided pursuant to— zalez National Affordable Housing Act (42 through programs sponsored by the Sec- ‘‘(i) section 105(a)(20) of the Housing and U.S.C. 12872(b)(6)); retary of Housing and Urban Development. Community Development Act of 1974 (42 ‘‘(vi) section 491(b)(1)(F)(iii) of the McKin- ‘‘(B) CONTACT INFORMATION.—Each segment U.S.C. 5305(a)(20)); ney-Vento Homeless Assistance Act (42 of the multimedia campaign under subpara- ‘‘(ii) in the United States Housing Act of U.S.C. 11408(b)(1)(F)(iii)); graph (A) shall publicize the toll-free tele- 1937— ‘‘(vii) sections 202(3) and 810(b)(2)(A) of the phone number and web site of the Depart- ‘‘(I) section 9(e) (42 U.S.C. 1437g(e)); Native American Housing and Self-Deter- ment of Housing and Urban Development ‘‘(II) section 8(y)(1)(D) (42 U.S.C. mination Act of 1996 (25 U.S.C. 4132(3), through which persons seeking housing 1437f(y)(1)(D)); 4229(b)(2)(A)); and counseling can locate a housing counseling ‘‘(III) section 18(a)(4)(D) (42 U.S.C. ‘‘(viii) the rental assistance program under agency in their State that is certified by the 1437p(a)(4)(D)); section 8 of the United States Housing Act of Secretary of Housing and Urban Develop- ‘‘(IV) section 23(c)(4) (42 U.S.C. 1437u(c)(4)); 1937 (42 U.S.C. 1437f). ment and can provide advice on buying a ‘‘(V) section 32(e)(4) (42 U.S.C. 1437z–4(e)(4)); ‘‘(2) STANDARDS FOR MATERIALS.—The Sec- home, renting, defaults, foreclosures, credit ‘‘(VI) section 33(d)(2)(B) (42 U.S.C. 1437z– retary, in conjunction with the advisory issues, and reverse mortgages. 5(d)(2)(B)); committee established under subsection ‘‘(C) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(VII) sections 302(b)(6) and 303(b)(7) (42 (g)(4) of the Department of Housing and There are authorized to be appropriated to U.S.C. 1437aaa–1(b)(6), 1437aaa–2(b)(7)); and Urban Development Act, shall establish the Secretary, not to exceed $3,000,000 for fis- ‘‘(VIII) section 304(c)(4) (42 U.S.C. 1437aaa– standards for materials and forms to be used, cal years 2008, 2009, and 2010, for the develop, 3(c)(4)); as appropriate, by organizations providing implement, and conduct of national public ‘‘(iii) section 302(a)(4) of the American homeownership counseling services, includ- service multimedia campaigns under this Homeownership and Economic Opportunity ing any recipients of assistance pursuant to paragraph. Act of 2000 (42 U.S.C. 1437f note); subsection (a)(4). ‘‘(5) EDUCATION PROGRAMS.—The Secretary ‘‘(iv) sections 233(b)(2) and 258(b) of the ‘‘(3) MORTGAGE SOFTWARE SYSTEMS.— shall provide advice and technical assistance Cranston-Gonzalez National Affordable ‘‘(A) CERTIFICATION.—The Secretary shall to States, units of general local government, Housing Act (42 U.S.C. 12773(b)(2), 12808(b)); provide for the certification of various com- and nonprofit organizations regarding the es- ‘‘(v) this section and section 101(e) of the puter software programs for consumers to tablishment and operation of, including as- Housing and Urban Development Act of 1968 use in evaluating different residential mort- sistance with the development of content (12 U.S.C. 1701x, 1701w(e)); gage loan proposals. The Secretary shall re- and materials for, educational programs to ‘‘(vi) section 220(d)(2)(G) of the Low-Income quire, for such certification, that the mort- inform and educate consumers, particularly Housing Preservation and Resident Home- gage software systems take into account— those most vulnerable with respect to resi- ownership Act of 1990 (12 U.S.C. 4110(d)(2)(G)); ‘‘(i) the consumer’s financial situation and dential mortgage loans (such as elderly per- ‘‘(vii) sections 422(b)(6), 423(b)(7), 424(c)(4), the cost of maintaining a home, including in- sons, persons facing language barriers, low- 442(b)(6), and 443(b)(6) of the Cranston-Gon- surance, taxes, and utilities; income persons, and other potentially vul- zalez National Affordable Housing Act (42 ‘‘(ii) the amount of time the consumer ex- nerable consumers), regarding home mort- U.S.C. 12872(b)(6), 12873(b)(7), 12874(c)(4), pects to remain in the home or expected gages, mortgage refinancing, home equity 12892(b)(6), and 12893(b)(6)); time to maturity of the loan; loans, and home repair loans.’’. ‘‘(viii) section 491(b)(1)(F)(iii) of the ‘‘(iii) such other factors as the Secretary considers appropriate to assist the consumer (b) CONFORMING AMENDMENTS TO GRANT McKinney-Vento Homeless Assistance Act PROGRAM FOR HOMEOWNERSHIP COUNSELING (42 U.S.C. 11408(b)(1)(F)(iii)); in evaluating whether to pay points, to lock in an interest rate, to select an adjustable or ORGANIZATIONS.—Section 106(c)(5)(A)(ii) of ‘‘(ix) sections 202(3) and 810(b)(2)(A) of the the Housing and Urban Development Act of fixed rate loan, to select a conventional or Native American Housing and Self-Deter- 1968 (12 U.S.C. 1701x(c)(5)(A)(ii)) is amended— government-insured or guaranteed loan and mination Act of 1996 (25 U.S.C. 4132(3), (1) in subclause (III), by striking ‘‘and’’ at to make other choices during the loan appli- 4229(b)(2)(A)); the end; cation process. ‘‘(x) in the National Housing Act— (2) in subclause (IV) by striking the period ‘‘(I) in section 203 (12 U.S.C. 1709), the pe- If the Secretary determines that available at the end and inserting ‘‘; and’’; and nultimate undesignated paragraph of para- existing software is inadequate to assist con- (3) by inserting after subclause (IV) the fol- graph (2) of subsection (b), subsection sumers during the residential mortgage loan lowing new subclause: (c)(2)(A), and subsection (r)(4); application process, the Secretary shall ar- ‘‘(V) notify the housing or mortgage appli- ‘‘(II) subsections (a) and (c)(3) of section 237 range for the development by private sector cant of the availability of mortgage software (12 U.S.C. 1715z–2); and software companies of new mortgage soft- systems provided pursuant to subsection ‘‘(III) subsections (d)(2)(B) and (m)(1) of ware systems that meet the Secretary’s (g)(3).’’. section 255 (12 U.S.C. 1715z–20); specifications. SEC. 134. GRANTS FOR HOUSING COUNSELING ‘‘(xi) section 502(h)(4)(B) of the Housing Act ‘‘(B) USE AND INITIAL AVAILABILITY.—Such ASSISTANCE. of 1949 (42 U.S.C. 1472(h)(4)(B)); and certified computer software programs shall Section 106(a) of the Housing and Urban ‘‘(xii) section 508 of the Housing and Urban be used to supplement, not replace, housing Development Act of 1968 (12 U.S.C. Development Act of 1970 (12 U.S.C. 1701z–7). counseling. The Secretary shall provide that 1701x(a)(3)) is amended by adding at the end ‘‘(C) RENTAL HOUSING COUNSELING.—For such programs are initially used only in con- the following new paragraph: purposes of this subsection, the term ‘rental nection with the assistance of housing coun- ‘‘(4) HOMEOWNERSHIP AND RENTAL COUN- housing counseling’ means counseling re- selors certified pursuant to subsection (e). SELING ASSISTANCE.— lated to rental of residential property, which ‘‘(C) AVAILABILITY.—After a period of ini- ‘‘(A) IN GENERAL.—The Secretary shall may include counseling regarding future tial availability under subparagraph (B) as make financial assistance available under homeownership opportunities and providing the Secretary considers appropriate, the Sec- this paragraph to States, units of general referrals for renters and prospective renters retary shall take reasonable steps to make local governments, and nonprofit organiza- to entities providing counseling and shall in- mortgage software systems certified pursu- tions providing homeownership or rental clude counseling related to such topics that ant to this paragraph widely available counseling (as such terms are defined in sub- is provided pursuant to— through the Internet and at public locations, section (g)(1)).

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00038 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.011 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3227

‘‘(B) QUALIFIED ENTITIES.—The Secretary actment, the Secretary shall submit a final ‘‘(3) A list and explanation of lending prac- shall establish standards and guidelines for report regarding the results of the study, tices, including those prohibited by the eligibility of organizations (including gov- which shall include any recommended legis- Truth in Lending Act or other applicable ernmental and nonprofit organizations) to lation relating to the study, and rec- Federal law, and of other unfair practices receive assistance under this paragraph. ommendations for best practices and for a and unreasonable or unnecessary charges to ‘‘(C) DISTRIBUTION.—Assistance made avail- process to identify populations that need be avoided by the prospective buyer with re- able under this paragraph shall be distrib- counseling the most. spect to a real estate settlement. uted in a manner that encourages efficient SEC. 137. DEFINITIONS FOR COUNSELING-RE- ‘‘(4) A list and explanation of questions a and successful counseling programs. LATED PROGRAMS. consumer obtaining a federally related mort- ‘‘(D) AUTHORIZATION OF APPROPRIATIONS.— Section 106 of the Housing and Urban De- gage loan should ask regarding the loan, in- There are authorized to be appropriated velopment Act of 1968 (12 U.S.C. 1701x), as cluding whether the consumer will have the $45,000,000 for each of fiscal years 2008 amended by the preceding provisions of this ability to repay the loan, whether the con- through 2011 for— subtitle, is further amended by adding at the sumer sufficiently shopped for the loan, ‘‘(i) the operations of the Office of Housing end the following new subsection: whether the loan terms include prepayment Counseling of the Department of Housing ‘‘(h) DEFINITIONS.—For purposes of this sec- penalties or balloon payments, and whether and Urban Development; tion: the loan will benefit the borrower. ‘‘(ii) the responsibilities of the Secretary ‘‘(1) NONPROFIT ORGANIZATION.—The term ‘‘(5) An explanation of the right of rescis- under paragraphs (2) through (5) of sub- ‘nonprofit organization’ has the meaning sion as to certain transactions provided by section (g); and given such term in section 104(5) of the Cran- sections 125 and 129 of the Truth in Lending ‘‘(iii) assistance pursuant to this paragraph ston-Gonzalez National Affordable Housing Act. for entities providing homeownership and Act (42 U.S.C. 12704(5)), except that subpara- ‘‘(6) A brief explanation of the nature of a rental counseling.’’. graph (D) of such section shall not apply for variable rate mortgage and a reference to SEC. 135. REQUIREMENTS TO USE HUD-CER- purposes of this section. the booklet entitled ‘Consumer Handbook on TIFIED COUNSELORS UNDER HUD ‘‘(2) STATE.—The term ‘State’ means each Adjustable Rate Mortgages’, published by PROGRAMS. of the several States, the Commonwealth of the Board of Governors of the Federal Re- Section 106(e) of the Housing and Urban Puerto Rico, the District of Columbia, the serve System pursuant to section 226.19(b)(1) Development Act of 1968 (12 U.S.C. 1701x(e)) Commonwealth of the Northern Mariana Is- of title 12, Code of Federal Regulations, or to is amended— lands, Guam, the Virgin Islands, American any suitable substitute of such booklet that (1) by striking paragraph (1) and inserting Samoa, the Trust Territories of the Pacific, such Board of Governors may subsequently the following new paragraph: or any other possession of the United States. adopt pursuant to such section. ‘‘(1) REQUIREMENT FOR ASSISTANCE.—An or- ‘‘(3) UNIT OF GENERAL LOCAL GOVERNMENT.— ‘‘(7) A brief explanation of the nature of a ganization may not receive assistance for The term ‘unit of general local government’ home equity line of credit and a reference to counseling activities under subsection means any city, county, parish, town, town- the pamphlet required to be provided under (a)(1)(iii), (a)(2), (a)(4), (c), or (d) of this sec- ship, borough, village, or other general pur- section 127A of the Truth in Lending Act. tion, or under section 101(e), unless the orga- pose political subdivision of a State.’’. ‘‘(8) Information about homeownership nization, or the individuals through which SEC. 138. UPDATING AND SIMPLIFICATION OF counseling services made available pursuant the organization provides such counseling, MORTGAGE INFORMATION BOOK- to section 106(a)(4) of the Housing and Urban LET. has been certified by the Secretary under Development Act of 1968 (12 U.S.C. Section 5 of the Real Estate Settlement this subsection as competent to provide such 1701x(a)(4)), a recommendation that the con- Procedures Act of 1974 (12 U.S.C. 2604) is counseling.’’; sumer use such services, and notification amended— (2) in paragraph (2)— that a list of certified providers of home- (1) in the section heading, by striking (A) by inserting ‘‘and for certifying organi- ownership counseling in the area, and their ‘‘SPECIAL’’ and inserting ‘‘HOME BUYING’’; zations’’ before the period at the end of the contact information, is available. (2) by striking subsections (a) and (b) and first sentence; and ‘‘(9) An explanation of the nature and pur- inserting the following new subsections: (B) in the second sentence by striking ‘‘for pose of escrow accounts when used in con- certification’’ and inserting ‘‘, for certifi- ‘‘(a) PREPARATION AND DISTRIBUTION.—The Secretary shall prepare, at least once every nection with loans secured by residential cation of an organization, that each indi- real estate and the requirements under sec- vidual through which the organization pro- 5 years, a booklet to help consumers apply- ing for federally related mortgage loans to tion 10 of this Act regarding such accounts. vides counseling shall demonstrate, and, for ‘‘(10) An explanation of the choices avail- certification of an individual,’’; understand the nature and costs of real es- tate settlement services. The Secretary shall able to buyers of residential real estate in se- (3) in paragraph (3), by inserting ‘‘organiza- lecting persons to provide necessary services tions and’’ before ‘‘individuals’’; prepare the booklet in various languages and cultural styles, as the Secretary determines incidental to a real estate settlement. (4) by redesignating paragraph (3) as para- ‘‘(11) An explanation of a consumer’s re- graph (5); and to be appropriate, so that the booklet is un- derstandable and accessible to homebuyers sponsibilities, liabilities, and obligations in (5) by inserting after paragraph (2) the fol- a mortgage transaction. lowing new paragraphs: of different ethnic and cultural backgrounds. The Secretary shall distribute such booklets ‘‘(12) An explanation of the nature and pur- ‘‘(3) REQUIREMENT UNDER HUD PROGRAMS.— pose of real estate appraisals, including the Any homeownership counseling or rental to all lenders that make federally related mortgage loans. The Secretary shall also dis- difference between an appraisal and a home housing counseling (as such terms are de- inspection. fined in subsection (g)(1)) required under, or tribute to such lenders lists, organized by lo- cation, of homeownership counselors cer- ‘‘(13) Notice that the Office of Housing of provided in connection with, any program the Department of Housing and Urban Devel- administered by the Department of Housing tified under section 106(e) of the Housing and Urban Development Act of 1968 (12 U.S.C. opment has made publicly available a bro- and Urban Development shall be provided chure regarding loan fraud and a World Wide only by organizations or counselors certified 1701x(e)) for use in complying with the re- quirement under subsection (c) of this sec- Web address and toll-free telephone number by the Secretary under this subsection as for obtaining the brochure. competent to provide such counseling. tion. ‘‘(4) OUTREACH.—The Secretary shall take ‘‘(b) CONTENTS.—Each booklet shall be in The booklet prepared pursuant to this sec- such actions as the Secretary considers ap- such form and detail as the Secretary shall tion shall take into consideration differences propriate to ensure that individuals and or- prescribe and, in addition to such other in- in real estate settlement procedures that ganizations providing homeownership or formation as the Secretary may provide, may exist among the several States and ter- rental housing counseling are aware of the shall include in plain and understandable ritories of the United States and among sep- certification requirements and standards of language the following information: arate political subdivisions within the same this subsection and of the training and cer- ‘‘(1) A description and explanation of the State and territory.’’; tification programs under subsection (f).’’. nature and purpose of the costs incident to a (3) in subsection (c), by inserting at the real estate settlement or a federally related end the following new sentence: ‘‘Each lend- SEC. 136. STUDY OF DEFAULTS AND FORE- CLOSURES. mortgage loan. The description and expla- er shall also include with the booklet a rea- The Secretary of Housing and Urban Devel- nation shall provide general information sonably complete or updated list of home- opment shall conduct an extensive study of about the mortgage process as well as spe- ownership counselors who are certified pur- the root causes of default and foreclosure of cific information concerning, at a min- suant to section 106(e) of the Housing and home loans, using as much empirical data as imum— Urban Development Act of 1968 (12 U.S.C. are available. The study shall also examine ‘‘(A) balloon payments; 1701x(e)) and located in the area of the lend- the role of escrow accounts in helping prime ‘‘(B) prepayment penalties; and er.’’; and and nonprime borrowers to avoid defaults ‘‘(C) the trade-off between closing costs (4) in subsection (d), by inserting after the and foreclosures. Not later than 12 months and the interest rate over the life of the period at the end of the first sentence the after the date of the enactment of this Act, loan. following: ‘‘The lender shall provide the the Secretary shall submit to the Congress a ‘‘(2) An explanation and sample of the uni- HUD-issued booklet in the version that is preliminary report regarding the study. Not form settlement statement required by sec- most appropriate for the person receiving later than 24 months after such date of en- tion 4. it.’’.

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00039 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.011 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3228 CONGRESSIONAL RECORD — HOUSE May 8, 2008 Subtitle C—Combating Mortgage Fraud that bears the same ratio to such median (B) by inserting after the period at the end SEC. 151. AUTHORIZATION OF APPROPRIATIONS price as the dollar amount limitation deter- the following: ‘‘For purposes of this para- TO COMBAT MORTGAGE FRAUD. mined under section 305(a)(2) of the Federal graph, the Secretary shall consider as cash For fiscal years 2008, 2009, 2010, 2011, and Home Loan Mortgage Corporation Act (12 or its equivalent any amounts gifted by a 2012, there are authorized to be appropriated U.S.C. 1454(a)(2)) for a 2-, 3-, or 4-family resi- family member (as such term is defined in to the Attorney General a total of— dence, respectively, bears to the dollar section 201), the mortgagor’s employer or (1) $31,250,000 to support the employment of amount limitation determined under such labor union, or a qualified homeownership 30 additional agents of the Federal Bureau of section for a 1-family residence; or assistance entity, but only if there is no obli- Investigation and 2 additional dedicated ‘‘(ii) 175 percent of the dollar amount limi- gation on the part of the mortgagor to repay prosecutors at the Department of Justice to tation determined under such section the gift: For purposes of the preceding sen- coordinate prosecution of mortgage fraud ef- 305(a)(2)(A) for a residence of the applicable tence, the term ‘qualified homeownership as- forts with the offices of the United States size (without regard to any authority to in- sistance entity’ means any governmental Attorneys; and crease such limitations with respect to prop- agency or charity that has a program to pro- (2) $750,000 to support the operations of erties located in Alaska, Guam, Hawaii, or vide homeownership assistance to low- and interagency task forces of the Federal Bu- the Virgin Islands and without regard to the moderate-income families or first-time home reau of Investigation in the areas with the 15 high-cost area limitation under such section buyers, or any private nonprofit organiza- highest concentrations of mortgage fraud. 305(a)(2)(B)); tion that has such a program and evidences sufficient fiscal soundness to protect the fis- TITLE II—FHA REFORM AND MANUFAC- except that the dollar amount limitation in effect under this subparagraph for any size cal integrity of the Mutual Mortgage Insur- TURED HOUSING LOAN INSURANCE residence for any area may not be less than ance Fund by maintaining a minimum net MODERNIZATION the greater of: (I) the dollar amount limita- worth of $4,000,000 of acceptable assets.’’. Subtitle A—FHA Reform tion in effect under this section for the area SEC. 206. MORTGAGE INSURANCE PREMIUMS FOR SEC. 201. SHORT TITLE. on October 21, 1998; or (II) 65 percent of the QUALIFIED HOMEOWNERSHIP AS- This subtitle may be cited as the ‘‘Expand- dollar amount limitation determined under SISTANCE ENTITIES AND HIGHER- ing American Homeownership Act of 2008’’. such section 305(a)(2) for a residence of the RISK BORROWERS. Paragraph (2) of section 203(c) of the Na- SEC. 202. FINDINGS AND PURPOSES. applicable size; and except that, if the Sec- tional Housing Act (12 U.S.C. 1709(c)(2)) is (a) FINDINGS.—The Congress finds that— retary determines that market conditions amended— (1) one of the primary missions of the Fed- warrant such an increase, the Secretary (1) in subparagraph (A), in the matter pre- eral Housing Administration (FHA) single may, for such period as the Secretary con- ceding subparagraph (A), by striking the family mortgage insurance program is to siders appropriate, increase the maximum first comma after ‘‘section 234(c)’’; reach borrowers who are underserved, or not dollar amount limitation determined pursu- (2) in subparagraph (A), by inserting after served, by the existing conventional mort- ant to the preceding provisions of this sub- the period at the end of the second sentence gage marketplace; paragraph with respect to any particular size the following: ‘‘In the case of a mortgage for (2) the FHA program has a long history of or sizes of residences, or with respect to resi- which any amounts gifted by a qualified innovation, which includes pioneering the 30- dences located in any particular area or homeownership assistance entity (as such year self-amortizing mortgage and a safe-to- areas, to an amount that does not exceed the term is defined in paragraph (9) of subsection seniors reverse mortgage product, both of maximum dollar amount then otherwise in (b)) that is a private nonprofit organization which were once thought too risky to private effect pursuant to the preceding provisions are treated as cash or its equivalent for pur- lenders; of this subparagraph for such size residence, poses of meeting the 3 percent requirement (3) the FHA single family mortgage insur- or for such area (if applicable), by not more under such paragraph, the premium payment ance program traditionally has been a major than $100,000; and’’. (b) TREATMENT OF TEMPORARY LOAN LIMIT under this subparagraph shall not exceed 3.0 provider of mortgage insurance for home INCREASE.—Subsection (a) and the amend- percent of the amount of the original insured purchases; ment made by such subsection may not be principal obligation of the mortgage.’’; and (4) the FHA mortgage insurance premium construed to in any way affect the effective- (3) by adding at the end the following new structure, as well as FHA’s product offer- ness of section 202 of the Economic Stimulus subparagraph: ings, should be revised to reflect FHA’s en- Act of 2008 (Public Law 110-185; 122 Stat. 620). ‘‘(C) HIGHER-RISK BORROWERS.—The Sec- hanced ability to determine risk at the loan SEC. 204. EXTENSION OF MORTGAGE TERM. retary shall establish underwriting stand- level and to allow FHA to better respond to Paragraph (3) of section 203(b) of the Na- ards that provide for insurance under this changes in the mortgage market; tional Housing Act (12 U.S.C. 1709(b)(3)) is section of mortgages described in the matter (5) during past recessions, including the amended— in this paragraph preceding subparagraph (A) oil-patch downturns in the mid-1980s, FHA (1) by striking ‘‘thirty-five years’’ and in- for which the mortgagor has a credit score remained a viable credit enhancer and was serting ‘‘forty years’’; and equivalent to a FICO score of less than 560, therefore instrumental in preventing a more (2) by striking ‘‘(or thirty years if such and may insure, and make commitments to catastrophic collapse in housing markets mortgage is not approved for insurance prior insure, such mortgages. Such underwriting and a greater loss of homeowner equity; and to construction)’’. standards shall include establishing and col- (6) as housing price appreciation slows and SEC. 205. DOWNPAYMENT SIMPLIFICATION. lecting premium payments that comply with interest rates rise, many homeowners and Section 203(b) of the National Housing Act the requirements of this paragraph, except prospective homebuyers will need the less- (12 U.S.C. 1709(b)) is amended— that notwithstanding subparagraph (A), the expensive, safer financing alternative that (1) in paragraph (2)— single premium payment collected at the FHA mortgage insurance provides. (A) by striking subparagraph (B) and in- time of insurance may be established in an (b) PURPOSES.—The purposes of this sub- serting the following new subparagraph: amount that does not exceed 3.0 percent of title are— ‘‘(B) not to exceed an amount equal to the the amount of the original insured principal (1) to provide flexibility to FHA to allow sum of— obligation of the mortgage.’’. for the insurance of housing loans for low- ‘‘(i) the amount of the mortgage premium and moderate-income homebuyers during all SEC. 207. RISK-BASED MORTGAGE INSURANCE paid at the time the mortgage is insured; and PREMIUMS. economic cycles in the mortgage market; ‘‘(ii) 97.75 percent of the appraised value of Section 203(c) of the National Housing Act (2) to modernize the FHA single family the property.’’; (12 U.S.C. 1709(c)), as amended by the pre- mortgage insurance program by making it (B) in the matter after and below subpara- ceding provisions of this subtitle, is further more reflective of enhancements to loan- graph (B), by striking the second sentence amended by adding at the end the following level risk assessments and changes to the (relating to a definition of ‘‘average closing new paragraphs: mortgage market; and cost’’) and all that follows through ‘‘title 38, ‘‘(4) FLEXIBLE RISK-BASED PREMIUMS.—In (3) to adjust the loan limits for the single United States Code.’’; and the case of a mortgage referred to in para- family mortgage insurance program to re- (C) by striking the last undesignated para- graph (2)(C) or a mortgage described in the flect rising house prices and the increased graph (relating to counseling with respect to third sentence of subparagraph (A) of para- costs associated with new construction. the responsibilities and financial manage- graph (2) (relating to mortgages for which SEC. 203. MAXIMUM PRINCIPAL LOAN OBLIGA- ment involved in homeownership); and amounts are gifted by a nonprofit qualified TION. (2) in paragraph (9)— homeownership assistance entity), for which (a) IN GENERAL.—Section 203(b)(2) of the (A) by striking the paragraph designation the loan application is received by the mort- National Housing Act (12 U.S.C. 1709(b)(2)(A)) and all that follows through ‘‘Provided fur- gagee on or after the date of the enactment is amended by striking subparagraph (A) and ther, That for’’ and inserting the following: of the Expanding American Homeownership inserting the following new subparagraph: ‘‘(9) Be executed by a mortgagor who shall Act of 2008: ‘‘(A) not to exceed the lesser of— have paid on account of the property, in cash ‘‘(A) IN GENERAL.—The Secretary may es- ‘‘(i) in the case of a 1-family residence, 125 or its equivalent, at least 3 percent of the tablish a mortgage insurance premium struc- percent of the median 1-family house price in Secretary’s estimate of the cost of acquisi- ture involving a single premium payment the area, as determined by the Secretary; tion (excluding the mortgage insurance pre- collected prior to the insurance of the mort- and in the case of a 2-, 3-, or 4-family resi- mium paid at the time the mortgage is in- gage or annual payments (which may be col- dence, the percentage of such median price sured). For’’; and lected on a periodic basis), or both, subject

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00040 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.011 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3229 to the requirements of subparagraph (B) and riod beginning upon the time of insurance of ‘‘(II) by a third party (other than the mort- paragraph (5). Under such structure, the rate such a mortgage. gagee) who is approved by the Secretary, of premiums for such a mortgage may vary ‘‘(ii) MANDATORY 5-YEAR PAYMENT INCEN- with respect to the responsibilities and fi- according to the credit risk associated with TIVE.—The Secretary shall provide that the nancial management involved in home- the mortgage and the rate of any annual pre- payment incentive under subparagraph (B) ownership; mium for such a mortgage may vary during applies upon the expiration of the 5-year pe- ‘‘(III) on an individual basis to the mort- the mortgage term as long as the basis for riod beginning upon the time of insurance of gagor by a representative of the approved determining the variable rate is established such a mortgage. third-party counseling entity; and before the execution of the mortgage. The ‘‘(B) PAYMENT INCENTIVE.—In the case of ‘‘(IV) in person, to the maximum extent Secretary may change a premium structure any mortgage to which the payment incen- possible. tive under this subparagraph applies, if, dur- established under this subclause but only to ‘‘(iii) 2- AND 3-FAMILY RESIDENCES.—In the the extent that such change is not applied to ing the period referred to in clause (i) or (ii) case of a mortgage involving a 2- or 3-family of subparagraph (A), as applicable, all mort- any mortgage already executed. residence, counseling under this subpara- gage insurance premiums for such mortgage ‘‘(B) ESTABLISHMENT AND ALTERATION OF graph shall include (in addition to the infor- have been paid on a timely basis, upon the PREMIUM STRUCTURE.—A premium structure mation required under clause (iii)) informa- shall be established or changed under sub- expiration of such period the Secretary tion regarding real estate property manage- paragraph (A) only by providing notice to shall— ment. mortgagees and to the Congress, at least 30 ‘‘(i) reduce the amount of the annual pre- ‘‘(C) NOTICE OF FORECLOSURE PREVENTION days before the premium structure is estab- mium payments otherwise due thereafter COUNSELING AVAILABILITY.— lished or changed. under such mortgage to an amount that does ‘‘(i) WRITTEN AGREEMENT.—To be eligible ‘‘(C) ANNUAL REPORT REGARDING PRE- not exceed the amount of the annual pre- for insurance under this subsection, the MIUMS.—The Secretary shall submit a report mium payable at the time of insurance of the mortgagee shall provide the mortgagor, at to the Congress annually setting forth the mortgage on a mortgage of the same product the time of the execution of the mortgage, a rate structures and rates established and al- type having the same terms, but for which written agreement which shall be signed by tered pursuant to this paragraph during the the mortgagor has a credit score equivalent the mortgagor and under which the mort- preceding 12-month period and describing to a FICO score of 560 or more; and how such rates were determined. ‘‘(ii) refund to the mortgagor, upon pay- gagee shall provide notice described in ‘‘(5) CONSIDERATIONS FOR PREMIUM STRUC- ment in full of the obligation of the mort- clause (ii) to a housing counseling entity TURE.—When establishing premiums for gage, any amount by which the single pre- that has agreed to provide the notice and mortgages referred to in paragraph (2)(C), es- mium payment for such mortgage collected counseling required under clause (iii) and is tablishing premiums pursuant to paragraph at the time of insurance exceeded the approved by the Secretary. (3), establishing a premium structure under amount of the single premium payment ‘‘(ii) NOTICE TO COUNSELING AGENCY.—The paragraph (4), and when changing such a pre- chargeable under paragraph (2)(A) at the notice described in this clause, with respect mium structure, the Secretary shall consider time of insurance for a mortgage of the same to a mortgage, is notice, provided at the ear- the following: product type having the same terms, but for liest time practicable after the mortgagor ‘‘(A) The effect of the proposed premiums which the mortgagor has a credit score becomes 60 days delinquent with respect to or structure on the Secretary’s ability to equivalent to a FICO score of 560 or more.’’. any payment due under the mortgage, that meet the operational goals of the Mutual SEC. 209. PROTECTIONS FOR HIGHER-RISK BOR- the mortgagor is so delinquent and of how to Mortgage Insurance Fund as provided in sec- ROWERS. contact the mortgagor. Such notice may tion 202(a). Section 203(b) of the National Housing Act only be provided once with respect to each ‘‘(B) Underwriting variables. (12 U.S.C. 1709(b)) is amended by adding at delinquency period for a mortgage. ‘‘(C) The extent to which new pricing under the end the following new paragraph: ‘‘(iii) NOTICE TO MORTGAGOR.—Upon notice the proposed premiums or structure has po- ‘‘(10) PROTECTIONS FOR HIGHER-RISK BOR- from a mortgagee that a mortgagor is 60 tential for acceptance in the private market. ROWERS.—Except as otherwise specifically days delinquent with respect to payments ‘‘(D) The administrative capability of the provided in this paragraph, in the case of any due under the mortgage, the housing coun- Secretary to administer the proposed pre- mortgage referred to in paragraph (2)(C) of seling entity shall at the earliest time prac- miums or structure. subsection (c), the following requirements ticable notify the mortgagor of such delin- ‘‘(E) The effect of the proposed premiums shall apply: quency, that the entity makes available ‘‘(A) DISCLOSURES.— or structure on the Secretary’s ability to foreclosure prevention counseling that may ‘‘(i) REQUIRED DISCLOSURES.—In addition to maintain the availability of mortgage credit assist the mortgagor in resolving the delin- any disclosures that are otherwise required and provide stability to mortgage markets. quency, and of how to contact the entity to by law or by the Secretary for single family ‘‘(6) AUTHORITY TO BASE PREMIUM PRICES ON arrange for such counseling. mortgages, the mortgagee shall disclose to PRODUCT RISK.— ‘‘(iv) ABILITY TO CURE.—Failure to provide the mortgagor the following information: ‘‘(A) AUTHORITY.—In establishing premium the written agreement required under clause rates under paragraphs (2), (3), and (4), the ‘‘(I) AT APPLICATION.—At the time of appli- cation for the loan involved in the mortgage, (i) may be corrected by sending such agree- Secretary may provide for variations in such ment to the mortgagor not later than the rates according to the credit risk associated a list of counseling agencies, approved by the Secretary, in the area of the applicant. earliest time practicable after the mortgagor with the type of mortgage product that is first becomes 60 days delinquent with respect being insured under this title, which may in- ‘‘(II) AT EXECUTION.—At the time of enter- ing into the mortgage— to payments due under the mortgage. Insur- clude providing that premium rates differ be- ance provided under this subsection may not tween fixed-rate mortgages and adjustable- ‘‘(aa) the terms of the mandatory 5-year payment incentive required under subsection be terminated and penalties for such failure rate mortgages insured pursuant to section may not be prospectively or retroactively 251, between mortgages insured pursuant to (c)(7)(A)(ii); and ‘‘(bb) a statement that the mortgagor has imposed if such failure is corrected in ac- section 203(b) and mortgages for condomin- cordance with this clause. iums insured pursuant to section 234, and be- a right under contract to loss mitigation. ‘‘(v) PENALTIES FOR FAILURE TO PROVIDE tween such other products as the Secretary ‘‘(III) OTHER INFORMATION.—Any other ad- AGREEMENT.—The Secretary may establish considers appropriate. ditional information that the Secretary de- and impose appropriate penalties for failure ‘‘(B) LIMITATION.—Subparagraph (A) may termines is appropriate to ensure that the of a mortgagee to provide the written agree- not be construed to authorize the Secretary mortgagor has received timely and accurate ment required under clause (i). to establish, for any mortgage product, any information about the program under para- ‘‘(vi) LIMITATION ON LIABILITY OF MORT- mortgage insurance premium rate that does graph (2)(C) of subsection (c). GAGEE.—A mortgagee shall not incur any li- not comply with the requirements and limi- ‘‘(ii) PENALTIES FOR FAILURE TO PROVIDE ability or penalties for any failure of a hous- tations under paragraphs (2) through (5).’’. REQUIRED DISCLOSURES.—The Secretary may ing counseling entity to provide notice under SEC. 208. PAYMENT INCENTIVES FOR HIGHER- establish and impose appropriate penalties RISK BORROWERS. for failure of a mortgagee to provide any dis- clause (iii). Section 203(c) of the National Housing Act closure required under clause (i). ‘‘(vii) NO PRIVATE RIGHT OF ACTION.—This (12 U.S.C. 1709(c)), as amended by the pre- ‘‘(iii) NO PRIVATE RIGHT OF ACTION.—This subparagraph shall not create any private ceding provisions of this subtitle, is further subparagraph shall not create any private right of action on behalf of the mortgagor. amended by adding at the end the following right of action on behalf of the mortgagor. ‘‘(viii) DELINQUENCY PERIOD.—For purposes new paragraph: ‘‘(B) COUNSELING.— of this subparagraph, the term ‘delinquency ‘‘(7) PAYMENT INCENTIVES.— ‘‘(i) REQUIREMENT.—The Secretary shall re- period’ means, with respect to a mortgage, a ‘‘(A) AUTHORITY.—With respect to mort- quire that the mortgagor shall have received period that begins upon the mortgagor be- gages referred to in paragraph (2)(C): counseling that complies with the require- coming delinquent with respect to payments ‘‘(i) DISCRETIONARY 3-YEAR PAYMENT INCEN- ments of this subparagraph. due under the mortgage and ends upon the TIVE.—The Secretary may provide, in the ‘‘(ii) TERMS OF COUNSELING.—Counseling first subsequent occurrence of such pay- discretion of the Secretary, that the pay- under this subparagraph shall be provided— ments under the mortgage becoming current ment incentive under subparagraph (B) shall ‘‘(I) prior to closing for the loan involved or the property subject to the mortgage apply upon the expiration of the 3-year pe- in the mortgage; being foreclosed or otherwise disposed of.’’.

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00041 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.011 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3230 CONGRESSIONAL RECORD — HOUSE May 8, 2008

SEC. 210. REFINANCING MORTGAGES. SEC. 213. REHABILITATION LOANS. ‘‘(a) MUTUAL MORTGAGE INSURANCE FUND.— Section 203 of the National Housing Act (12 Subsection (k) of section 203 of the Na- ‘‘(1) ESTABLISHMENT.—Subject to the provi- U.S.C. 1709) is amended by inserting after tional Housing Act (12 U.S.C. 1709(k)) is sions of the Federal Credit Reform Act of subsection (k) the following new subsection: amended— 1990, there is hereby created a Mutual Mort- ‘‘(l) REFINANCING MORTGAGES.— (1) in paragraph (1), by striking ‘‘on’’ and gage Insurance Fund (in this title referred to ‘‘(1) ESTABLISHMENT OF UNDERWRITING all that follows through ‘‘1978’’; and as the ‘Fund’), which shall be used by the STANDARDS.—The Secretary shall establish (2) in paragraph (5)— Secretary to carry out the provisions of this underwriting standards that provide for in- (A) by striking ‘‘General Insurance Fund’’ title with respect to mortgages insured surance under this title of mortgage loans, the first place it appears and inserting ‘‘Mu- under section 203. The Secretary may enter and take actions to facilitate the avail- tual Mortgage Insurance Fund’’; and into commitments to guarantee, and may ability of mortgage loans insured under this (B) in the second sentence, by striking the guarantee, such insured mortgages. title, for qualified borrowers that are made comma and all that follows through ‘‘Gen- ‘‘(2) LIMIT ON LOAN GUARANTEES.—The au- for the purpose of paying or prepaying out- eral Insurance Fund’’. thority of the Secretary to enter into com- standing obligations under existing mort- SEC. 214. DISCRETIONARY ACTION. mitments to guarantee such insured mort- gages for borrowers that— The National Housing Act is amended— gages shall be effective for any fiscal year ‘‘(A) have existing mortgages with adverse (1) in subsection (e) of section 202 (12 U.S.C. only to the extent that the aggregate origi- terms or rates, or 1708(e))— nal principal loan amount under such mort- ‘‘(B) do not have access to mortgages at (A) in paragraph (3)(B), by striking ‘‘sec- gages, any part of which is guaranteed, does reasonable rates and terms for such tion 202(e) of the National Housing Act’’ and not exceed the amount specified in appro- refinancings due to adverse market condi- inserting ‘‘this subsection’’; and priations Acts for such fiscal year. tions. (B) by redesignating such subsection as ‘‘(3) FIDUCIARY RESPONSIBILITY.—The Sec- ‘‘(2) INSURANCE OF MORTGAGES TO BOR- subsection (f); retary has a responsibility to ensure that the ROWERS IN DEFAULT OR AT RISK OF DEFAULT.— (2) by striking paragraph (4) of section Mutual Mortgage Insurance Fund remains fi- In facilitating insurance for such mortgages, 203(s) (12 U.S.C. 1709(s)(4)) and inserting the nancially sound. the Secretary may insure mortgages to bor- following new paragraph: ‘‘(4) ANNUAL INDEPENDENT ACTUARIAL rowers who are, currently in default or at ‘‘(4) the Secretary of Agriculture;’’; and STUDY.—The Secretary shall provide for an imminent risk of being in default, but only if (3) by transferring subsection (s) of section independent actuarial study of the Fund to such loans meet reasonable underwriting 203 (as amended by paragraph (2) of this sec- be conducted annually, which shall analyze standards established by the Secretary.’’. tion) to section 202, inserting such sub- the financial position of the Fund. The Sec- SEC. 211. ANNUAL REPORTS ON NEW PROGRAMS section after subsection (d) of section 202, retary shall submit a report annually to the AND LOSS MITIGATION. and redesignating such subsection as sub- Congress describing the results of such study Section 540(b)(2) of the National Housing section (e). and assessing the financial status of the Act (12 U.S.C. 1735f–18(b)(2)) is amended, by SEC. 215. INSURANCE OF CONDOMINIUMS AND Fund. The report shall recommend adjust- adding at the end the following new subpara- MANUFACTURED HOUSING. ments to underwriting standards, program graphs: (a) IN GENERAL.—Section 234 of the Na- participation, or premiums, if necessary, to ‘‘(C) The rates of default and foreclosure tional Housing Act (12 U.S.C. 1715y) is ensure that the Fund remains financially for the applicable collection period for mort- amended— sound. gages insured pursuant to the program for (1) in subsection (c)— ‘‘(5) QUARTERLY REPORTS.—During each fis- mortgage insurance under paragraph (2)(C) of (A) in the first sentence— cal year, the Secretary shall submit a report section 203(c). (i) by striking ‘‘and’’ before ‘‘(2)’’; and to the Congress for each quarter, which shall ‘‘(D) Actions taken by the Secretary dur- (ii) by inserting before the period at the specify for mortgages that are obligations of ing the applicable collection period with re- end the following: ‘‘, and (3) the project has the Fund— spect to loss mitigation on mortgages in- a blanket mortgage insured by the Secretary ‘‘(A) the cumulative volume of loan guar- sured pursuant to section 203.’’. under subsection (d)’’; and antee commitments that have been made SEC. 212. INSURANCE FOR SINGLE FAMILY (B) in clause (B) of the third sentence, by during such fiscal year through the end of HOMES WITH LICENSED CHILD CARE striking ‘‘thirty-five years’’ and inserting the quarter for which the report is sub- FACILITIES. ‘‘forty years’’; and mitted; (a) DEFINITION OF CHILD CARE FACILITY.— (2) in subsection (g), by striking ‘‘, except ‘‘(B) the types of loans insured, categorized Section 201 of the National Housing Act (12 that’’ and all that follows and inserting a pe- by risk; U.S.C. 1707) is amended by adding at the end riod. ‘‘(C) any significant changes between ac- the following new subsection: (b) DEFINITION OF MORTGAGE.—Section tual and projected claim and prepayment ac- ‘‘(g) The term ‘child care facility’ means a 201(a) of the National Housing Act (12 U.S.C. tivity; facility that— 1707(a)) is amended— ‘‘(D) projected versus actual loss rates; and ‘‘(A) has as its purpose the care of children (1) before ‘‘ a first mortgage’’ insert ‘‘(A)’’; ‘‘(E) updated projections of the annual sub- who are less than 12 years of age; and (2) by striking ‘‘or on a leasehold (1)’’ and sidy rates to ensure that increases in risk to ‘‘(B) is licensed or regulated by the State inserting ‘‘(B) a first mortgage on a lease- the Fund are identified and mitigated by ad- in which it is located (or, if there is no State hold on real estate (i)’’; justments to underwriting standards, pro- law providing for such licensing and regula- (3) by striking ‘‘or (2)’’ and inserting ‘‘, or gram participation, or premiums, and the fi- tion by the State, by the municipality or (ii)’’; and nancial soundness of the Fund is maintained. other political subdivision in which the facil- (4) by inserting before the semicolon the The first quarterly report under this para- ity is located). following: ‘‘, or (C) a first mortgage given to graph shall be submitted on the last day of Such term does not include facilities for secure the unpaid purchase price of a fee in- the first quarter of fiscal year 2008, or upon school-age children primarily for use during terest in, or long-term leasehold interest in, the expiration of the 90-day period beginning normal school hours.’’. real estate consisting of a one-family unit in on the date of the enactment of the Expand- (b) INCREASE IN MAXIMUM MORTGAGE a multifamily project, including a project in ing American Homeownership Act of 2008, AMOUNT LIMITATION.—Paragraph (2) of sec- which the dwelling units are attached, or are whichever is later. tion 203(b) of the National Housing Act (12 manufactured housing units, semi-detached, ‘‘(6) ADJUSTMENT OF PREMIUMS.—If, pursu- U.S.C. 1709(b)(2)), as amended by the pre- or detached, and an undivided interest in the ant to the independent actuarial study of the ceding provisions of this subtitle, is further common areas and facilities which serve the Fund required under paragraph (5), the Sec- amended by adding at end the following new project’’. retary determines that the Fund is not meet- undesignated paragraph: (c) DEFINITION OF REAL ESTATE.—Section ing the operational goals established under ‘‘Notwithstanding any other provision of 201 of the National Housing Act (12 U.S.C. paragraph (8) or there is a substantial prob- this paragraph, the amount that may be in- 1707), as amended by the preceding provisions ability that the Fund will not maintain its sured under this section may be increased by of this subtitle, is further amended by adding established target subsidy rate, the Sec- up to 25 percent if such increase is necessary at the end the following new subsection: retary may either make programmatic ad- to account for the increased cost of the resi- ‘‘(h) The term ‘real estate’ means land and justments under section 203 as necessary to dence due to an increased need of space in all natural resources and structures perma- reduce the risk to the Fund, or make appro- the residence for locating and operating a nently affixed to the land, including residen- priate premium adjustments. child care facility (as such term is defined in tial buildings and stationary manufactured ‘‘(7) OPERATIONAL GOALS.—The operational section 201) within the residence, but only if housing. The Secretary may not require, for goals for the Fund are— a valid license or certificate of compliance treatment of any land or other property as ‘‘(A) to charge borrowers under loans that with regulations described in section real estate for purposes of this title, that are obligations of the Fund an appropriate 201(g)(2) has been issued for such facility as such land or property be treated as real es- premium for the risk that such loans pose to of the date of the execution of the mortgage, tate for purposes of State taxation.’’. the Fund; and only if such increase in the amount in- SEC. 216. MUTUAL MORTGAGE INSURANCE FUND. ‘‘(B) to minimize the default risk to the sured is proportional to the amount of space (a) IN GENERAL.—Subsection (a) of section Fund and to homeowners; of such residence that will be used for such 202 of the National Housing Act (12 U.S.C. ‘‘(C) to curtail the impact of adverse selec- facility.’’. 1708(a)) is amended to read as follows: tion on the Fund; and

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00042 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.011 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3231 ‘‘(D) to meet the housing needs of the bor- ‘‘(B) under a lease that has a term that with other relevant Federal departments and rowers that the single family mortgage in- ends no earlier than the minimum number of agencies, prescribe regulations to help pro- surance program under this title is designed years, as specified by the Secretary, beyond tect elderly homeowners from the marketing to serve.’’. the actuarial life expectancy of the mort- of financial and insurance products not in (b) OBLIGATIONS OF FUND.—The National gagor or comortgagor, whichever is the later the interest of such homeowners, including Housing Act is amended as follows: date.’’. the marketing or sale of an annuity as a con- (1) HOMEOWNERSHIP VOUCHER PROGRAM (3) in the second sentence of subsection (g), dition of obtaining any home equity conver- MORTGAGES.—In section 203(v) (12 U.S.C. by striking ‘‘the maximum dollar amount es- sion mortgage. 1709(v))— tablished under section 203(b)(2)’’ and all ‘‘(2) CONSULTATION.—In developing the reg- (A) by striking ‘‘Notwithstanding section that follows through ‘‘located’’ and inserting ulations required under paragraph (1), the 202 of this title, the’’ and inserting ‘‘The’’; ‘‘132 percent of the dollar amount limitation Secretary shall consult with consumer advo- and determined under section 305(a)(2)(A) of the cates (including recognized experts in con- (B) by striking ‘‘General Insurance Fund’’ Federal Home Loan Mortgage Corporation sumer protection), industry representatives, the first place such term appears and all that Act for a 1-family residence (without regard representatives of counseling organizations, follows and inserting ‘‘Mutual Mortgage In- to any authority to increase such limita- and other interested parties.’’. surance Fund.’’. tions with respect to properties located in (d) LIMITATION ON ORIGINATION FEES.—Sec- (2) HOME EQUITY CONVERSION MORTGAGES.— Alaska, Guam, Hawaii, or the Virgin Islands tion 255 of the National Housing Act (12 Section 255(i)(2)(A) of the National Housing and without regard to the high-cost area U.S.C. 1715z–20), as amended by the preceding Act (12 U.S.C. 1715z–20(i)(2)(A)) is amended by limitation under such section 305(a)(2)(B))’’; provisions of this section, is further amend- striking ‘‘General Insurance Fund’’ and in- (4) in subsection (i)(1)(C), by striking ‘‘lim- ed— serting ‘‘Mutual Mortgage Insurance Fund’’. itations’’ and inserting ‘‘limitation’’; and (1) by redesignating subsections (k), (l), (c) CONFORMING AMENDMENTS.—The Na- (5) by adding at the end the following new and (m) as subsections (l), (m), and (n), re- tional Housing Act is amended— subsection: spectively; and (1) in section 205 (12 U.S.C. 1711), by strik- ‘‘(o) AUTHORITY TO INSURE HOME PURCHASE (2) by inserting after subsection (j) the fol- ing subsections (g) and (h); and MORTGAGES.— lowing new subsection: (2) in section 519(e) (12 U.S.C. 1735c(e)), by ‘‘(1) IN GENERAL.—Notwithstanding any ‘‘(k) LIMITATION ON ORIGINATION FEES.— striking ‘‘203(b)’’ and all that follows other provision in this section, the Secretary The Secretary shall establish limits on the through ‘‘203(i)’’ and inserting ‘‘203, except as may insure, upon application by a mort- origination fee that may be charged to a determined by the Secretary’’. gagee, a home equity conversion mortgage mortgagor under a mortgage insured under SEC. 217. HAWAIIAN HOME LANDS AND INDIAN upon such terms and conditions as the Sec- this section, which limitations shall— RESERVATIONS. retary may prescribe, when the primary pur- ‘‘(1) be equal to 2.0 percent of the max- (a) HAWAIIAN HOME LANDS.—Section 247(c) pose of the home equity conversion mortgage imum claim amount of the mortgage up to a of the National Housing Act (12 U.S.C. 1715z– is to enable an elderly mortgagor to pur- maximum claim amount of $200,000 plus 1 12) is amended— chase a 1- to 4-family dwelling in which the percent of any portion of the maximum (1) by striking ‘‘General Insurance Fund mortgagor will occupy or occupies one of the claim amount that is greater than $200,000, established in section 519’’ and inserting units. unless adjusted thereafter on the basis of an ‘‘Mutual Mortgage Insurance Fund’’; and ‘‘(2) LIMITATION ON PRINCIPAL OBLIGATION.— analysis of (A) costs to mortgagors, and (B) (2) in the second sentence, by striking ‘‘(1) A home equity conversion mortgage insured the impact on the reverse mortgage market; all references’’ and all that follows through pursuant to paragraph (1) shall involve a ‘‘(2) be subject to a minimum allowable ‘‘and (2)’’. principal obligation that does not exceed the amount; (b) INDIAN RESERVATIONS.—Section 248(f) of limitation under subsection (g) of this sec- ‘‘(3) provide that the origination fee may the National Housing Act (12 U.S.C. 1715z–13) tion on the maximum amount of the benefits be fully financed with the mortgage; is amended— of insurance under this section.’’. ‘‘(4) include any fees paid to correspondent (1) by striking ‘‘General Insurance Fund’’ (b) MORTGAGES FOR COOPERATIVES.—Sub- mortgagees approved by the Secretary or to the first place it appears and all that follows section (b) of section 255 of the National mortgage brokers; through ‘‘519’’ and inserting ‘‘Mutual Mort- Housing Act (12 U.S.C. 1715z–20(b)) is amend- ‘‘(5) apply beginning upon the date that the gage Insurance Fund’’; and ed— maximum dollar amount limitation on the (2) in the second sentence, by striking ‘‘(1) (1) in paragraph (4)— benefits of insurance under this section is all references’’ and all that follows through (A) by inserting ‘‘a first or subordinate first increased pursuant to the amendments ‘‘and (2)’’. mortgage or lien’’ before ‘‘on all stock’’; made by section 219(a)(3) of the Expanding SEC. 218. CONFORMING AND TECHNICAL AMEND- (B) by inserting ‘‘unit’’ after ‘‘dwelling’’; American Homeownership Act of 2008; and MENTS. and ‘‘(6) be subject to a maximum origination (a) REPEALS.—The following provisions of (C) by inserting ‘‘a first mortgage or first fee of $6,000, except that such maximum the National Housing Act are repealed: lien’’ before ‘‘on a leasehold’’; and limit shall be adjusted in accordance with (1) Subsection (i) of section 203 (12 U.S.C. (2) in paragraph (5), by inserting ‘‘a first or the annual percentage increase in the Con- 1709(i)). subordinate lien on’’ before ‘‘all stock’’. sumer Price Index of the Bureau of Labor (2) Subsection (o) of section 203 (12 U.S.C. (c) PROHIBITION ON REQUIRED PURCHASE OF Statistics of the Department of Labor in in- 1709(o)). AN ANNUITY.—Section 255 of the National crements of $500 only when the percentage (3) Subsection (p) of section 203 (12 U.S.C. Housing Act of 1937 (12 U.S.C. 1715z–20) is increase in such index, when applied to the 1709(p)). amended— maximum origination fee, produce dollar in- (4) Subsection (q) of section 203 (12 U.S.C. (1) by striking subparagraph (B) of sub- creases that exceed $500.’’. 1709(q)). section (d)(2) and inserting the following new (e) STUDY REGARDING MORTGAGE INSURANCE (5) Section 222 (12 U.S.C. 1715m). subparagraph: PREMIUMS.—The Secretary of Housing and (6) Section 237 (12 U.S.C. 1715z–2). ‘‘(B) has received adequate counseling by a Urban Development shall conduct a study re- (7) Section 245 (12 U.S.C. 1715z–10). third party (other than a reverse mortgage garding mortgage insurance premiums (b) DEFINITION OF AREA.—Section lender, servicer or investor, or an entity en- charged under the program under section 255 203(u)(2)(A) of the National Housing Act (12 gaged in the sale of annuities, investments, of the National Housing Act (12 U.S.C. 1715z– U.S.C. 1709(u)(2)(A)) is amended by striking long-term care insurance, or any other type 20) for insurance of home equity conversion ‘‘shall’’ and all that follows and inserting of financial or insurance product) as pro- mortgages to analyze and determine the ef- ‘‘means a metropolitan statistical area as es- vided in subsection (f);’’; fects of reducing the amounts of such pre- tablished by the Office of Management and (2) by striking the first sentence of sub- miums from the amounts charged as of the Budget;’’. section (f) and inserting the following new date of the enactment of this Act on: (1) (c) DEFINITION OF STATE.—Section 201(d) of sentence: ‘‘The Secretary shall provide or costs to mortgagors; and (2) the financial the National Housing Act (12 U.S.C. 1707(d)) cause to be provided and paid for by entities soundness of the program. Not later than the is amended by striking ‘‘the Trust Territory other than a reverse mortgage lender, expiration of the 12-month period beginning of the Pacific Islands’’ and inserting ‘‘the servicer or investor, or an entity engaged in on the date of the enactment of this Act, the Commonwealth of the Northern Mariana Is- the sale of annuities, investments, long-term Secretary shall submit a report to the Con- lands’’. care insurance, or any other type of financial gress setting forth the results and conclu- SEC. 219. HOME EQUITY CONVERSION MORT- or insurance product the information re- sions of the study. GAGES. quired in subsection (d)(2)(B).’’; and (f) PURCHASE AUTHORITY OF FANNIE MAE (a) IN GENERAL.—Section 255 of the Na- (3) by striking subsections (l) and (m) and AND FREDDIE MAC.— tional Housing Act (12 U.S.C. 1715z–20) is inserting the following new subsection: (1) FANNIE MAE.—Section 302(b) of the Fed- amended— ‘‘(l) REGULATIONS TO PROTECT ELDERLY eral National Mortgage Association Charter (1) in subsection (b)(2), insert ‘‘ ‘real es- HOMEOWNERS.— Act (12 U.S.C. 1717(b)) is amended by adding tate,’’’ after ‘‘ ‘mortgagor’,’’; ‘‘(1) IN GENERAL.—Not later than 6 months at the end the following: (2) in subsection (b)(4), by striking sub- after the date of the enactment of the Ex- ‘‘(7) The corporation is authorized to pur- paragraph (B) and inserting the following panding American Homeownership Act of chase, service, sell, lend on the security of, new subparagraph: 2008, the Secretary shall, in consultation and otherwise deal in any mortgage insured

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00043 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.012 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3232 CONGRESSIONAL RECORD — HOUSE May 8, 2008 under section 255 of the National Housing praisal, inspection and other fees in connec- ‘‘SEC. 257. PROHIBITION REGARDING FAILURE Act (12 U.S.C. 1715z–20), notwithstanding the tion with the mortgage as approved by the ON PART OF SERVICER TO MAKE ES- limitations under paragraph (2) on the max- Secretary,’’; CROW PAYMENTS. ‘‘In the case of any failure to make any imum original principal obligations of mort- (2) by striking the second sentence (as payment as described in section 536(b)(1)(K), gages.’’. added by chapter 7 of the Emergency Supple- (2) FREDDIE MAC.—Section 305(a) of the the Secretary may not submit any informa- mental Appropriations Act of 1994 (Public tion to a consumer reporting agency (as such Federal Home Loan Mortgage Corporation Law 103–211; 108 Stat. 12)); and Act (12 U.S.C. 1454(a)) is amended by adding term is defined in section 603(f) of the Fair (3) by adding at the end the following new Credit Reporting Act (15 U.S.C. 1681a(f))) re- at the end the following: sentence: ‘‘In any case in which the single ‘‘(6) The Corporation is authorized to pur- garding such failure that is adverse to the family residence to be insured under this chase, service, sell, lend on the security of, credit rating or interest of the mortgagor.’’. subsection is within a jurisdiction in which and otherwise deal in any mortgage insured SEC. 223. ACCEPTABLE IDENTIFICATION FOR FHA under section 255 of the National Housing the President has declared a major disaster MORTGAGORS. Act (12 U.S.C. 1715z–20), notwithstanding the to have occurred, the Secretary is author- (a) IN GENERAL.—Title II of the National limitations under paragraph (2) on the max- ized, for a temporary period not to exceed 36 Housing Act is amended by inserting after imum original principal obligations of mort- months from the date of such Presidential section 209 (12 U.S.C. 1715) the following new gages.’’. declaration, to enter into agreements to in- section: SEC. 220. STUDY ON PARTICIPATION OF MORT- sure a mortgage which involves a principal ‘‘SEC. 210. FORMS OF ACCEPTABLE IDENTIFICA- GAGE BROKERS AND COR- obligation of up to 100 percent of the dollar TION. RESPONDENT LENDERS. limitation determined under section 305(a)(2) ‘‘The Secretary may not insure a mortgage (a) STUDY.—The Comptroller General of of the Federal Home Loan Mortgage Cor- under any provision of this title unless the the United States shall conduct a study, poration Act for a single family residence, mortgagor under the mortgage provides per- which shall be completed not later than the and not in excess of 100 percent of the ap- sonal identification in one of the following forms: expiration of the 12-month period beginning praised value of the property plus any initial ‘‘(1) A valid social security number verified on the date of the enactment of this Act, service charges, appraisal, inspection and in accordance with paragraph 3-1 C of chap- which shall analyze and determine— other fees in connection with the mortgage ter 3 of HUD Handbook 4155.1 REV-5. (1) the extent to which the financial audit as approved by the Secretary.’’. and net worth requirements impede partici- ‘‘(2) A driver’s license or identification pation by mortgage brokers and cor- SEC. 222. FAILURE TO PAY AMOUNTS FROM ES- card issued by a State in the case of a State respondent lenders in the mortgage insur- CROW ACCOUNTS FOR SINGLE FAM- that is in compliance with title II of the ance programs under the National Housing ILY MORTGAGES. REAL ID Act of 2005 (title II of division B of Public Law 109–13; 49 U.S.C. 30301 note). Act, as measured by the number and value of (a) PENALTIES.—Section 536 of the National ‘‘(3) A passport issued by the United States such insured mortgages, disaggregated by Housing Act (12 U.S.C. 1735f–14) is amended— the States in which the properties subject to or a foreign government. (1) in subsection (a)(1), by inserting such mortgages are located; ‘‘(4) A photo identification card issued by ‘‘servicers (including escrow account (2) the extent and effectiveness of the fi- the Secretary of Homeland Security (acting servicers),’’ after ‘‘appraisers,’’; nancial audit and net worth requirements in through the Director of the United States protecting the Mutual Mortgage Insurance (2) in subsection (b)(1)— Citizenship and Immigration Services).’’. Fund; (A) in the matter preceding subparagraph (b) EFFECTIVE DATE.—The requirements of (3) the extent and effectiveness of the su- (A), by inserting ‘‘or other participant re- section 210 of the National Housing Act (as pervision and quality control enforcement, ferred to in subsection (a),’’ after ‘‘lender,’’; added by subsection (a) of this section) shall by the Secretary, of mortgagees in the FHA and take effect 6 months after the date of the en- program, separate from the financial audit (B) by inserting at the end the following actment of this Act. and net worth requirements for participa- new subparagraphs: SEC. 224. PILOT PROGRAM FOR AUTOMATED tion, in protecting the Mutual Mortgage In- ‘‘(K) In the case of a mortgage for a 1- to PROCESS FOR BORROWERS WITH- surance Fund; 4-family residence insured under title II that OUT SUFFICIENT CREDIT HISTORY. (4) the extent to which allowing a mort- requires the mortgagor to make payments to (a) ESTABLISHMENT.—Title II of the Na- tional Housing Act (12 U.S.C. 1707 et seq.), as gage broker to secure a surety bond in lieu of the mortgagee or other servicer of the mort- amended by the preceding provisions of this the financial audit and net worth require- gage for deposit into an escrow account for subtitle, is further amended by adding at the ments would increase participation by mort- the purpose of assuring payment of taxes, in- end the following new section: gage brokers and correspondent lenders in surance premiums, and other charges with the mortgage insurance programs under the ‘‘SEC. 258. PILOT PROGRAM FOR AUTOMATED respect to the property, failure on the part of PROCESS FOR BORROWERS WITH- National Housing Act; the servicer to make any such payment from OUT SUFFICIENT CREDIT HISTORY. (5) the extent to which allowing a mort- the escrow account by the deadline to avoid ‘‘(a) ESTABLISHMENT.—The Secretary shall gage broker to secure a surety bond in lieu of a penalty with respect to such payment pro- carry out a pilot program to establish, and the financial audit and net worth require- vided for in the mortgage, unless the servicer make available to mortgagees, an automated ments would protect the Mutual Mortgage was not provided notice of such deadline. process for providing alternative credit rat- Insurance Fund; and ‘‘(L) In the case of any failure to make any ing information for mortgagors and prospec- (6) the potential impact of such changes on payment as described in subparagraph (K), tive mortgagors under mortgages on 1- to 4- the costs incurred by the Secretary of Hous- submitting any information to a consumer family residences to be insured under this ing and Urban Development in administering reporting agency (as such term is defined in title who have insufficient credit histories the mortgage insurance programs under such section 603(f) of the Fair Credit Reporting for determining their creditworthiness. Such Act. Act (15 U.S.C. 1681a(f))) regarding such fail- alternative credit rating information may (b) GAO REPORT.—Not later than the expi- ure that is adverse to the credit rating or in- include rent, utilities, and insurance pay- ration of the 12-month period beginning on terest of the mortgagor.’’; and ment histories, and such other information the date of the enactment of this Act, the (3) in subsection (c)(3), by adding at the as the Secretary considers appropriate. Comptroller General shall submit a report to ‘‘(b) SCOPE.—The Secretary may carry out end the following: ‘‘In the case of any failure the Congress and the Secretary of Housing the pilot program under this section on a to make a payment described in subsection and Urban Development setting forth the re- limited basis or scope, and may consider lim- sults and conclusions of the study conducted (b)(1)(K) for which the servicer fails to reim- iting the program— pursuant to subsection (a). burse the mortgagor (A) before the expira- ‘‘(1) to first-time homebuyers; or (c) HUD REPORT.—Not later than the expi- tion of the 60-day period beginning on the ‘‘(2) metropolitan statistical areas signifi- ration of the 18-month period beginning upon deadline to avoid a penalty with respect to cantly impacted by subprime lending. the date of the enactment of this Act, the such payment, in the sum of the amount not ‘‘(c) LIMITATION.—In any fiscal year, the Secretary of Housing and Urban Develop- paid from the escrow account by such dead- aggregate number of mortgages insured pur- ment may submit a report to the Congress line and the amount of any penalties accru- suant to the automated process established making recommendations regarding any ing to the mortgagor that are attributable to under this section may not exceed 5 percent changes in requirements for participation of such failure, or (B) in the amount of any at- of the aggregate number of mortgages for 1- mortgage brokers and correspondent lenders torneys fees incurred by the mortgagor and to 4-family residences insured by the Sec- in the mortgage insurance programs under attributable to such failure, the Secretary retary under this title during the preceding the National Housing Act arising from a re- shall increase the amount of the penalty fiscal year. view of the study conducted pursuant to sub- under subsection (a) for any such failure to ‘‘(d) SUNSET.—After the expiration of the 5- section (a). reimburse, unless the Secretary determines year period beginning on the date of the en- SEC. 221. CONFORMING LOAN LIMIT IN DISASTER there are mitigating circumstances.’’. actment of the Expanding American Home- AREAS. ownership Act of 2008, the Secretary may not Section 203(h) of the National Housing Act (b) PROHIBITION ON SUBMISSION OF INFORMA- enter into any new commitment to insure (12 U.S.C. 1709) is amended— TION BY HUD.—Title II of the National Hous- any mortgage, or newly insure any mort- (1) by inserting after ‘‘property’’ the fol- ing Act (12 U.S.C. 1707 et seq.) is amended by gage, pursuant to the automated process es- lowing: ‘‘plus any initial service charges, ap- adding at the end the following new section: tablished under this section.’’.

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00044 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.012 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3233

(b) GAO REPORT.—Not later than the expi- shall not apply to any transaction regarding judgment of such person exercised in accord- ration of the 4-year period beginning on the a multifamily real property for which— ance with applicable professional stand- date that the Secretary of Housing and (1) the Secretary of Housing and Urban De- ards.’’. Urban Development first insures any mort- velopment has received, before the date of SEC. 230. MORTGAGE INSURANCE PREMIUM RE- gage pursuant to the automated process es- the enactment of such Act, written expres- FUNDS. tablished under pilot program under section sions of interest in purchasing the property (a) AUTHORITY.—The Secretary of Housing 258 of the National Housing Act (as added by from both a city government and the hous- and Urban Development shall, to the extent the amendment made by subsection (a) of ing commission of such city; that amounts are made available pursuant to this section), the Comptroller General of the (2) after such receipt, the Secretary ac- subsection (c), provide refunds of unearned United States shall submit to the Congress a quires title to the property at a foreclosure premium charges paid, at the time of insur- report identifying the number of additional sale; and ance, for mortgage insurance under title II of mortgagors served using such automated (3) such city government and housing com- the National Housing Act (12 U.S.C. 1707 et process and the impact of such process and mission have resolved a previous disagree- seq.) to or on behalf of mortgagors under the insurance of mortgages pursuant to such ment with respect to the disposition of the mortgages described in subsection (b). process on the safety and soundness of the property. (b) ELIGIBLE MORTGAGES.—A mortgage de- insurance funds under the National Housing SEC. 227. VALUATION OF MULTIFAMILY PROP- scribed in this section is a mortgage on a Act of which such mortgages are obligations. ERTIES IN NONCOMPETITIVE SALES one- to four-family dwelling that— SEC. 225. SENSE OF CONGRESS REGARDING BY HUD TO STATES AND LOCAL- (1) was insured under title II of the Na- TECHNOLOGY FOR FINANCIAL SYS- ITIES. tional Housing Act (12 U.S.C. 1707 et seq.); TEMS. Subtitle A of title II of the Deficit Reduc- (2) is otherwise eligible, under the last sen- (a) CONGRESSIONAL FINDINGS.—The Con- tion Act of 2005 (Public Law 109–171; 120 Stat. tence of subparagraph (A) of section 203(c)(2) gress finds the following: 7) is amended by adding at the end the fol- of such Act (12 U.S.C. 1709(c)(2)(A)), for a re- (1) The Government Accountability Office lowing new section: fund of all unearned premium charges paid has cited the FHA single family housing ‘‘SEC. 2004. VALUATION OF MULTIFAMILY PROP- on the mortgage pursuant to such subpara- mortgage insurance program as a ‘‘high- ERTIES IN NONCOMPETITIVE SALES graph, except that the mortgage— risk’’ program, with a primary reason being BY HUD TO STATES AND LOCAL- (A) was closed before December 8, 2004; and non-integrated and out-dated financial man- ITIES. (B) was endorsed on or after such date. ‘‘ ‘Notwithstanding any other provision of agement systems. (c) AUTHORIZATION OF APPROPRIATIONS.— (2) The ‘‘Audit of the Federal Housing Ad- law, in determining the market value of any There is authorized to be appropriated for ministration’s Financial Statements for Fis- multifamily real property or multifamily each fiscal year such sums as may be nec- cal Years 2004 and 2003’’, conducted by the In- loan for any noncompetitive sale to a State essary to provide refunds of unearned mort- spector General of the Department of Hous- or local government entity occurring during gage insurance premiums pursuant to this ing and Urban Development reported as a fiscal year 2008, the Secretary shall consider, section. but not be limited to, industry standard ap- material weakness that ‘‘HUD/FHA’s auto- SEC. 231. SAVINGS PROVISION. mated data processing [ADP] system envi- praisal practices, including the cost of re- Any mortgage insured under title II of the ronment must be enhanced to more effec- pairs needed to bring the property at least to National Housing Act before the date of en- tively support FHA’s business and budget minimum State and local code standards and actment of this Act shall continue to be gov- processes’’. of maintaining the existing affordability re- erned by the laws, regulations, orders, and (3) Existing technology systems for the strictions imposed by the Secretary on the terms and conditions to which it was subject FHA program have not been updated to meet multifamily real property or multifamily on the day before the date of the enactment the latest standards of the Mortgage Indus- loan.’.’’. of this Act. SEC. 228. LIMITATION ON MORTGAGE INSURANCE try Standards Maintenance Organization and SEC. 232. IMPLEMENTATION. PREMIUM INCREASES. have numerous deficiencies that lenders Except as provided in section 223(b), the Notwithstanding any other provision of have outlined. Secretary of Housing and Urban Develop- law, including any provision of this subtitle (4) Improvements to technology used in the ment shall by notice establish any additional and any amendment made by this subtitle— FHA program will— requirements that may be necessary to im- (1) the premiums charged for mortgage in- (A) allow the FHA program to improve the mediately carry out the provisions of this surance under any program under the Na- management of the FHA portfolio, garner subtitle. The notice shall take effect upon tional Housing Act may not be increased greater efficiencies in its operations, and issuance. lower costs across the program; above the premium amounts in effect under Subtitle B—FHA Manufactured Housing Loan (B) result in efficiencies and lower costs such program on October 1, 2006, unless the Insurance Modernization for lenders participating in the program, al- Secretary of Housing and Urban Develop- lowing them to better use the FHA products ment determines that, absent such increase, SECTION 251. SHORT TITLE. in extending homeownership opportunities insurance of additional mortgages under This subtitle may be cited as the ‘‘FHA to higher credit risk or lower-income fami- such program would, under the Federal Cred- Manufactured Housing Loan Modernization lies, in a sound manner. it Reform Act of 1990, require the appropria- Act of 2008’’. (5) The Mutual Mortgage Insurance Fund tion of new budget authority to cover the SEC. 252. FINDINGS AND PURPOSES. operates without cost to the taxpayers and costs (as such term is defined in section 502 (a) FINDINGS.—The Congress finds that— generates revenues for the Federal Govern- of the Federal Credit Reform Act of 1990 (2 (1) manufactured housing plays a vital role ment. U.S.C. 661a) of such insurance; and in providing housing for low- and moderate- (b) SENSE OF CONGRESS.—It is the sense of (2) a premium increase pursuant to para- income families in the United States; the Congress that— graph (1) may be made only by rule making (2) the FHA title I insurance program for (1) the Secretary of Housing and Urban De- in accordance with the procedures under sec- manufactured home loans traditionally has velopment should use a portion of the funds tion 553 of title 5, United States Code (not- been a major provider of mortgage insurance received from premiums paid for FHA single withstanding subsections (a)(2), (b)(B), and for home-only transactions; family housing mortgage insurance that are (d)(3) of such section). (3) the manufactured housing market is in in excess of the amounts paid out in claims SEC. 229. CIVIL MONEY PENALTIES FOR IMPROP- the midst of a prolonged downturn which has to substantially increase the funding for ERLY INFLUENCING APPRAISALS. resulted in a severe contraction of tradi- technology used in such FHA program; Paragraph (2) of section 536(b) of the Na- tional sources of private lending for manu- (2) the goal of this investment should be to tional Housing Act (12 U.S.C. 1735f–14(b)(2)) is factured home purchases; bring the technology used in such FHA pro- amended— (4) during past downturns the FHA title I gram to the level and sophistication of the (1) in subparagraph (B), by striking ‘‘or’’ at insurance program for manufactured homes technology used in the conventional mort- the end; has filled the lending void by providing sta- gage lending market, or to exceed such level; (2) in subparagraph (C), by striking the pe- bility until the private markets could re- and riod at the end and inserting ‘‘; or’’; and cover; (3) the Secretary of Housing and Urban De- (3) by adding at the end the following new (5) in 1992, during the manufactured hous- velopment should report to the Congress not subparagraph: ing industry’s last major recession, over later than 180 days after the date of the en- ‘‘(D) in the case of an insured mortgage 30,000 manufactured home loans were insured actment of this Act regarding the progress under title II for a 1- to 4-family residence, under title I; the Department is making toward such goal compensating, instructing, inducing, coerc- (6) in 2006, fewer than 1,500 manufactured and if progress is not sufficient, the re- ing, or intimidating any person who con- housing loans were insured under title I; sources needed to make greater progress. ducts an appraisal of the property in connec- (7) the loan limits for title I manufactured SEC. 226. CLARIFICATION OF DISPOSITION OF tion with such mortgage, or attempting to housing loans have not been adjusted for in- CERTAIN PROPERTIES. compensate, instruct, induce, coerce, or in- flation since 1992; and Notwithstanding any other provision of timidate such a person, for the purpose of (8) these problems with the title I program law, subtitle A of title II of the Deficit Re- causing the appraised value assigned to the have resulted in an atrophied market for duction Act of 2005 (12 U.S.C. 1701z–11 note) property under the appraisal to be based on manufactured housing loans, leaving Amer- and the amendments made by such title any other factor other than the independent ican families who have the most difficulty

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00045 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.012 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3234 CONGRESSIONAL RECORD — HOUSE May 8, 2008 achieving homeownership without adequate ment of the FHA Manufactured Housing cash or credit in the Secretary’s discretion, financing options for home-only manufac- Loan Modernization Act of 2008.’’. and upon such terms and conditions and for tured home purchases. (c) TECHNICAL AND CONFORMING CHANGES.— such consideration as the Secretary shall de- (b) PURPOSES.—The purposes of this sub- Paragraph (1) of section 2(b) of the National termine to be reasonable, any real or per- title are— Housing Act (12 U.S.C. 1703(b)(1)) is amend- sonal property conveyed to or otherwise ac- (1) to provide adequate funding for FHA-in- ed— quired by the Secretary, in connection with sured manufactured housing loans for low- (1) by striking ‘‘No’’ and inserting ‘‘Except the payment of insurance heretofore or here- and moderate-income homebuyers during all as provided in the last sentence of this para- after granted under this title, including any economic cycles in the manufactured hous- graph, no’’; and evidence of debt, contract, claim, personal ing industry; (2) by adding after and below subparagraph property, or security assigned to or held by (2) to modernize the FHA title I insurance (G) the following: him in connection with the payment of in- program for manufactured housing loans to ‘‘The Secretary shall, by regulation, annu- surance heretofore or hereafter granted enhance participation by Ginnie Mae and the ally increase the dollar amount limitations under this section; and private lending markets; and in subparagraphs (A)(ii), (C), (D), and (E) (as ‘‘(B) pursue to final collection, by way of (3) to adjust the low loan limits for title I such limitations may have been previously compromise or otherwise, all claims assigned manufactured home loan insurance to reflect adjusted under this sentence) in accordance to or held by the Secretary and all legal or the increase in costs since such limits were with the index established pursuant to para- equitable rights accruing to the Secretary in last increased in 1992 and to index the limits graph (9).’’. connection with the payment of such insur- to inflation. SEC. 256. INSURANCE PREMIUMS. ance, including unpaid insurance premiums SEC. 253. EXCEPTION TO LIMITATION ON FINAN- Subsection (f) of section 2 of the National owed in connection with insurance made CIAL INSTITUTION PORTFOLIO. Housing Act (12 U.S.C. 1703(f)) is amended— available by this title. The second sentence of section 2(a) of the (1) by inserting ‘‘(1) PREMIUM CHARGES.—’’ ‘‘(2) ADVERTISEMENTS FOR PROPOSALS.— National Housing Act (12 U.S.C. 1703(a)) is after ‘‘(f)’’; and Section 3709 of the Revised Statutes shall amended— (2) by adding at the end the following new not be construed to apply to any contract of (1) by striking ‘‘In no case’’ and inserting paragraph: hazard insurance or to any purchase or con- ‘‘Other than in connection with a manufac- ‘‘(2) MANUFACTURED HOME LOANS.—Not- tract for services or supplies on account of tured home or a lot on which to place such withstanding paragraph (1), in the case of a such property if the amount thereof does not a home (or both), in no case’’; and loan, advance of credit, or purchase in con- exceed $25,000. (2) by striking ‘‘: Provided, That with’’ and nection with a manufactured home or a lot ‘‘(3) DELEGATION OF AUTHORITY.—The power inserting ‘‘. With’’. on which to place such a home (or both), the to convey and to execute in the name of the SEC. 254. INSURANCE BENEFITS. premium charge for the insurance granted Secretary, deeds of conveyance, deeds of re- (a) IN GENERAL.—Subsection (b) of section under this section shall be paid by the bor- lease, assignments and satisfactions of mort- 2 of the National Housing Act (12 U.S.C. rower under the loan or advance of credit, as gages, and any other written instrument re- 1703(b)), is amended by adding at the end the follows: lating to real or personal property or any in- following new paragraph: ‘‘(A) At the time of the making of the loan, terest therein heretofore or hereafter ac- ‘‘(8) INSURANCE BENEFITS FOR MANUFAC- advance of credit, or purchase, a single pre- quired by the Secretary pursuant to the pro- TURED HOUSING LOANS.—Any contract of in- mium payment in an amount not to exceed visions of this title may be exercised by an surance with respect to loans, advances of 2.25 percent of the amount of the original in- officer appointed by the Secretary without credit, or purchases in connection with a sured principal obligation. the execution of any express delegation of manufactured home or a lot on which to ‘‘(B) In addition to the premium under sub- power or power of attorney. Nothing in this place a manufactured home (or both) for a fi- paragraph (A), annual premium payments subsection shall be construed to prevent the nancial institution that is executed under during the term of the loan, advance, or obli- Secretary from delegating such power by this title after the date of the enactment of gation purchased in an amount not exceed- order or by power of attorney, in the Sec- the by the Secretary shall be conclusive evi- ing 1.0 percent of the remaining insured prin- retary’s discretion, to any officer or agent dence of the eligibility of such financial in- cipal balance (excluding the portion of the the Secretary may appoint.’’. stitution for insurance, and the validity of remaining balance attributable to the pre- SEC. 258. REVISION OF UNDERWRITING CRI- any contract of insurance so executed shall mium collected under subparagraph (A) and TERIA. be incontestable in the hands of the bearer without taking into account delinquent pay- (a) IN GENERAL.—Subsection (b) of section from the date of the execution of such con- ments or prepayments). 2 of the National Housing Act (12 U.S.C. tract, except for fraud or misrepresentation ‘‘(C) Premium charges under this para- 1703(b)), as amended by the preceding provi- on the part of such institution.’’. graph shall be established in amounts that sions of this subtitle, is further amended by (b) APPLICABILITY.—The amendment made are sufficient, but do not exceed the min- adding at the end the following new para- by subsection (a) shall only apply to loans imum amounts necessary, to maintain a neg- graph: that are registered or endorsed for insurance ative credit subsidy for the program under ‘‘(10) FINANCIAL SOUNDNESS OF MANUFAC- after the date of the enactment of this Act. this section for insurance of loans, advances TURED HOUSING PROGRAM.—The Secretary SEC. 255. MAXIMUM LOAN LIMITS. of credit, or purchases in connection with a shall establish such underwriting criteria for loans and advances of credit in connection (a) DOLLAR AMOUNTS.—Paragraph (1) of manufactured home or a lot on which to section 2(b) of the National Housing Act (12 place such a home (or both), as determined with a manufactured home or a lot on which U.S.C. 1703(b)(1)) is amended— based upon risk to the Federal Government to place a manufactured home (or both), in- (1) in clause (ii) of subparagraph (A), by under existing underwriting requirements. cluding such loans and advances represented striking ‘‘$17,500’’ and inserting ‘‘$25,090’’; ‘‘(D) The Secretary may increase the limi- by obligations purchased by financial insti- (2) in subparagraph (C) by striking tations on premium payments to percentages tutions, as may be necessary to ensure that ‘‘$48,600’’ and inserting ‘‘$69,678’’; above those set forth in subparagraphs (A) the program under this title for insurance (3) in subparagraph (D) by striking and (B), but only if necessary, and not in ex- for financial institutions against losses from ‘‘$64,800’’ and inserting ‘‘$92,904’’; cess of the minimum increase necessary, to such loans, advances of credit, and purchases (4) in subparagraph (E) by striking maintain a negative credit subsidy as de- is financially sound.’’. (b) TIMING.—Not later than the expiration ‘‘$16,200’’ and inserting ‘‘$23,226’’; and scribed in subparagraph (C).’’. of the 6-month period beginning on the date SEC. 257. TECHNICAL CORRECTIONS. (5) by realigning subparagraphs (C), (D), of the enactment of this Act, the Secretary (a) DATES.—Subsection (a) of section 2 of and (E) 2 ems to the left so that the left mar- of Housing and Urban Development shall re- gins of such subparagraphs are aligned with the National Housing Act (12 U.S.C. 1703(a)) vise the existing underwriting criteria for the margins of subparagraphs (A) and (B). is amended— the program referred to in paragraph (10) of (b) ANNUAL INDEXING.—Subsection (b) of (1) by striking ‘‘on and after July 1, 1939,’’ section 2(b) of the National Housing Act (as section 2 of the National Housing Act (12 each place such term appears; and added by subsection (a) of this section) in ac- U.S.C. 1703(b)), as amended by the preceding (2) by striking ‘‘made after the effective cordance with the requirements of such para- provisions of this subtitle, is further amend- date of the Housing Act of 1954’’. graph. ed by adding at the end the following new (b) AUTHORITY OF SECRETARY.—Subsection SEC. 259. REQUIREMENT OF SOCIAL SECURITY paragraph: (c) of section 2 of the National Housing Act ACCOUNT NUMBER FOR ASSIST- ‘‘(9) ANNUAL INDEXING OF MANUFACTURED (12 U.S.C. 1703(c)) is amended to read as fol- ANCE. HOUSING LOANS.—The Secretary shall develop lows: Section 2 of the National Housing Act (12 a method of indexing in order to annually ‘‘(c) HANDLING AND DISPOSAL OF PROP- U.S.C. 1703) is amended by adding at the end adjust the loan limits established in subpara- ERTY.— the following new subsection: graphs (A)(ii), (C), (D), and (E) of this sub- ‘‘(1) AUTHORITY OF SECRETARY.—Notwith- ‘‘(j) REQUIREMENT OF SOCIAL SECURITY AC- section. Such index shall be based on the standing any other provision of law, the Sec- COUNT NUMBER FOR FINANCING.—No insurance manufactured housing price data collected retary may— shall be granted under this section with re- by the United States Census Bureau. The ‘‘(A) deal with, complete, rent, renovate, spect to any obligation representing any Secretary shall establish such index no later modernize, insure, or assign or sell at public loan, advance of credit, or purchase by a fi- than one year after the date of the enact- or private sale, or otherwise dispose of, for nancial institution unless the borrower to

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00046 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.012 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3235 which the loan or advance of credit was minimal financial loss to, or a significant standing of financial management or over- made has a valid social security number.’’. adverse effect on, the regulated entity; and sight, and have a demonstrated under- SEC. 260. GAO STUDY OF MITIGATION OF TOR- ‘‘(D) any not-for-profit corporation that re- standing of capital markets, including the NADO RISKS TO MANUFACTURED ceives its principal funding, on an ongoing mortgage securities markets and housing fi- HOMES. basis, from any regulated entity.’’. nance. The Comptroller General of the United (8) by redesignating paragraphs (8) through ‘‘(2) TERM AND REMOVAL.—The Director States shall assess how the Secretary of (13) as paragraphs (12) through (17), respec- shall be appointed for a term of 5 years and Housing and Urban Development utilizes the tively; and may be removed by the President only for FHA manufactured housing loan insurance (9) by inserting after paragraph (7) the fol- cause. program under title I of the National Hous- lowing new paragraph: ‘‘(3) VACANCY.—A vacancy in the position ing Act, the community development block ‘‘(11) FEDERAL HOME LOAN BANK.—The term of Director that occurs before the expiration grant program under title I of the Housing ‘Federal home loan bank’ means a bank es- of the term for which a Director was ap- and Community Development Act of 1974, tablished under the authority of the Federal pointed shall be filled in the manner estab- and other programs and resources available Home Loan Bank Act.’’; lished under paragraph (1), and the Director to the Secretary to mitigate the risks to (10) by redesignating paragraphs (2) appointed to fill such vacancy shall be ap- manufactured housing residents and commu- through (7) as paragraphs (5) through (10), re- pointed only for the remainder of such term. nities resulting from tornados. The Comp- spectively; and ‘‘(4) SERVICE AFTER END OF TERM.—An indi- troller General shall submit to the Congress vidual may serve as the Director after the a report on the conclusions and rec- (11) by inserting after paragraph (1) the fol- lowing new paragraphs: expiration of the term for which appointed ommendations of the assessment conducted until a successor has been appointed. pursuant to this section not later than the ‘‘(2) AGENCY.—The term ‘Agency’ means the Federal Housing Finance Agency. ‘‘(5) TRANSITIONAL PROVISION.—Notwith- expiration of the 12-month period beginning standing paragraphs (1) and (2), the Director on the date of the enactment of this Act. ‘‘(3) AUTHORIZING STATUTES.—The term ‘au- thorizing statutes’ means— of the Office of Federal Housing Enterprise TITLE III—REFORM OF GOVERNMENT- ‘‘(A) the Federal National Mortgage Asso- Oversight of the Department of Housing and SPONSORED ENTITIES FOR HOUSING FI- ciation Charter Act; Urban Development shall serve as the Direc- NANCE ‘‘(B) the Federal Home Loan Mortgage Cor- tor until a successor has been appointed SEC. 301. SHORT TITLE. poration Act; and under paragraph (1). This title may be cited as the ‘‘Federal ‘‘(C) the Federal Home Loan Bank Act. ‘‘(c) DEPUTY DIRECTOR OF THE DIVISION OF Housing Finance Reform Act of 2008’’. ENTERPRISE REGULATION.— ‘‘(4) BOARD.—The term ‘Board’ means the SEC. 302. DEFINITIONS. Federal Housing Enterprise Board estab- ‘‘(1) IN GENERAL.—The Agency shall have a Section 1303 of the Housing and Commu- lished under section 1313B.’’. Deputy Director of the Division of Enter- nity Development Act of 1992 (12 U.S.C. 4502) prise Regulation, who shall be appointed by is amended— Subtitle A—Reform of Regulation of the Director from among individuals who are (1) in paragraph (7), by striking ‘‘an enter- Enterprises and Federal Home Loan Banks citizens of the United States, and have a prise’’ and inserting ‘‘a regulated entity’’; CHAPTER 1—IMPROVEMENT OF SAFETY demonstrated understanding of financial (2) by striking ‘‘the enterprise’’ each place AND SOUNDNESS management or oversight and of mortgage such term appears (except in paragraphs (4) SEC. 311. ESTABLISHMENT OF THE FEDERAL securities markets and housing finance. and (18)) and inserting ‘‘the regulated enti- HOUSING FINANCE AGENCY. ‘‘(2) FUNCTIONS.—The Deputy Director of ty’’; (a) IN GENERAL.—The Housing and Commu- the Division of Enterprise Regulation shall (3) in paragraph (5), by striking ‘‘Office of nity Development Act of 1992 (12 U.S.C. 4501 have such functions, powers, and duties with Federal Housing Enterprise Oversight of the et seq.) is amended by striking sections 1311 respect to the oversight of the enterprises as Department of Housing and Urban Develop- and 1312 and inserting the following: the Director shall prescribe. ment’’ and inserting ‘‘Federal Housing Fi- ‘‘SEC. 1311. ESTABLISHMENT OF THE FEDERAL ‘‘(d) DEPUTY DIRECTOR OF THE DIVISION OF nance Agency’’; HOUSING FINANCE AGENCY. FEDERAL HOME LOAN BANK REGULATION.— (4) in each of paragraphs (8), (9), (10), and ‘‘(a) ESTABLISHMENT.—There is established ‘‘(1) IN GENERAL.—The Agency shall have a (19), by striking ‘‘Secretary’’ each place that the Federal Housing Finance Agency, which Deputy Director of the Division of Federal term appears and inserting ‘‘Director’’; shall be an independent agency of the Fed- Home Loan Bank Regulation, who shall be (5) in paragraph (13), by inserting ‘‘, with eral Government. appointed by the Director from among indi- respect to an enterprise,’’ after ‘‘means’’; ‘‘(b) GENERAL SUPERVISORY AND REGU- viduals who are citizens of the United (6) by redesignating paragraphs (16) LATORY AUTHORITY.— States, have a demonstrated understanding through (19) as paragraphs (20) through (23), ‘‘(1) IN GENERAL.—Each regulated entity of financial management or oversight and of respectively; shall, to the extent provided in this title, be the Federal Home Loan Bank System and (7) by striking paragraphs (14) and (15) and subject to the supervision and regulation of housing finance. inserting the following new paragraphs: the Agency. ‘‘(2) FUNCTIONS.—The Deputy Director of ‘‘(18) REGULATED ENTITY.—The term ‘regu- ‘‘(2) AUTHORITY OVER FANNIE MAE, FREDDIE the Division of Federal Home Loan Bank lated entity’ means— MAC, AND FEDERAL HOME LOAN BANKS.—The Regulation shall have such functions, pow- ‘‘(A) the Federal National Mortgage Asso- Director of the Federal Housing Finance ers, and duties with respect to the oversight ciation and any affiliate thereof; Agency shall have general supervisory and of the Federal home loan banks as the Direc- ‘‘(B) the Federal Home Loan Mortgage Cor- regulatory authority over each regulated en- tor shall prescribe. poration and any affiliate thereof; and tity and shall exercise such general regu- ‘‘(e) DEPUTY DIRECTOR FOR HOUSING.— ‘‘(C) each Federal home loan bank. latory and supervisory authority, including ‘‘(1) IN GENERAL.—The Agency shall have a ‘‘(19) REGULATED ENTITY-AFFILIATED such duties and authorities set forth under Deputy Director for Housing, who shall be PARTY.—The term ‘regulated entity-affili- section 1313 of this Act, to ensure that the appointed by the Director from among indi- ated party’ means— purposes of this Act, the authorizing stat- viduals who are citizens of the United ‘‘(A) any director, officer, employee, or utes, and any other applicable law are car- States, and have a demonstrated under- agent for, a regulated entity, or controlling ried out. The Director shall have the same standing of the housing markets and housing shareholder of an enterprise; supervisory and regulatory authority over finance and of community and economic de- ‘‘(B) any shareholder, affiliate, consultant, any joint office of the Federal home loan velopment. or joint venture partner of a regulated enti- banks, including the Office of Finance of the ‘‘(2) FUNCTIONS.—The Deputy Director for ty, and any other person, as determined by Federal Home Loan Banks, as the Director Housing shall have such functions, powers, the Director (by regulation or on a case-by- has over the individual Federal home loan and duties with respect to the oversight of case basis) that participates in the conduct banks. the housing mission and goals of the enter- of the affairs of a regulated entity, except ‘‘(c) SAVINGS PROVISION.—The authority of prises, and with respect to oversight of the that a shareholder of a regulated entity shall the Director to take actions under subtitles housing finance and community and eco- not be considered to have participated in the B and C shall not in any way limit the gen- nomic development mission of the Federal affairs of that regulated entity solely by rea- eral supervisory and regulatory authority home loan banks, as the Director shall pre- son of being a member or customer of the granted to the Director. scribe. regulated entity; ‘‘SEC. 1312. DIRECTOR. ‘‘(f) LIMITATIONS.—The Director and each ‘‘(C) any independent contractor for a reg- ‘‘(a) ESTABLISHMENT OF POSITION.—There is of the Deputy Directors may not— ulated entity (including any attorney, ap- established the position of the Director of ‘‘(1) have any direct or indirect financial praiser, or accountant), if— the Federal Housing Finance Agency, who interest in any regulated entity or regulated ‘‘(i) the independent contractor knowingly shall be the head of the Agency. entity-affiliated party; or recklessly participates in— ‘‘(b) APPOINTMENT; TERM.— ‘‘(2) hold any office, position, or employ- ‘‘(I) any violation of any law or regulation; ‘‘(1) APPOINTMENT.—The Director shall be ment in any regulated entity or regulated ‘‘(II) any breach of fiduciary duty; or appointed by the President, by and with the entity-affiliated party; or ‘‘(III) any unsafe or unsound practice; and advice and consent of the Senate, from ‘‘(3) have served as an executive officer or ‘‘(ii) such violation, breach, or practice among individuals who are citizens of the director of any regulated entity, or regulated caused, or is likely to cause, more than a United States, have a demonstrated under- entity-affiliated party, at any time during

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00047 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.012 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3236 CONGRESSIONAL RECORD — HOUSE May 8, 2008

the 3-year period ending on the date of ap- ‘‘(2) CONSULTATION WITH ATTORNEY GEN- ‘‘(i) if such standard is established by regu- pointment of such individual as Director or ERAL.—The Director shall provide notice to, lation, the Director shall require the regu- Deputy Director. and consult with, the Attorney General of lated entity to submit an acceptable plan to ‘‘(g) OMBUDSMAN.—The Director shall es- the United States before taking an action the Director within the time allowed under tablish the position of the Ombudsman in under paragraph (1) of this subsection or subparagraph (C); and the Agency. The Director shall provide that under section 1344(a), 1345(d), 1348(c), 1372(e), ‘‘(ii) if such standard is established by the Ombudsman will consider complaints 1375(a), 1376(d), or 1379D(c), except that, if the guideline, the Director may require the regu- and appeals from any regulated entity and Director determines that any delay caused lated entity to submit a plan described in any person that has a business relationship by such prior notice and consultation may clause (i). with a regulated entity and shall specify the adversely affect the safety and soundness re- ‘‘(B) CONTENTS.—Any plan required under duties and authority of the Ombudsman.’’. sponsibilities of the Director under this title, subparagraph (A) shall specify the actions (b) APPOINTMENT OF DIRECTOR.—Notwith- the Director shall notify the Attorney Gen- that the regulated entity will take to correct standing any other provision of law or of this eral as soon as reasonably possible after tak- the deficiency. If the regulated entity is title, the President may, any time after the ing such action. undercapitalized, the plan may be a part of date of the enactment of this Act, appoint an ‘‘(3) SUBJECT TO SUIT.—Except as otherwise the capital restoration plan for the regulated individual to serve as the Director of the provided by law, the Director shall be sub- entity under section 1369C. Federal Housing Finance Agency, as such of- ject to suit (other than suits on claims for ‘‘(C) DEADLINES FOR SUBMISSION AND RE- fice is established by the amendment made money damages) by a regulated entity or di- VIEW.—The Director shall by regulation es- by subsection (a). This subsection shall take rector or officer thereof with respect to any tablish deadlines that— effect on the date of the enactment of this matter under this title or any other applica- ‘‘(i) provide the regulated entities with Act. ble provision of law, rule, order, or regula- reasonable time to submit plans required SEC. 312. DUTIES AND AUTHORITIES OF DIREC- tion under this title, in the United States under subparagraph (A), and generally re- TOR. district court for the judicial district in quire a regulated entity to submit a plan not (a) IN GENERAL.—The Housing and Commu- which the regulated entity has its principal later than 30 days after the Director deter- nity Development Act of 1992 (12 U.S.C. 4513) place of business, or in the United States mines that the entity fails to meet any is amended by striking section 1313 and in- District Court for the District of Columbia, standard established under subsection (a); serting the following new sections: and the Director may be served with process and ‘‘SEC. 1313. DUTIES AND AUTHORITIES OF DIREC- in the manner prescribed by the Federal ‘‘(ii) require the Director to act on plans TOR. Rules of Civil Procedure. expeditiously, and generally not later than ‘‘(a) DUTIES.— ‘‘SEC. 1313A. PRUDENTIAL MANAGEMENT AND OP- 30 days after the plan is submitted. ‘‘(1) PRINCIPAL DUTIES.—The principal du- ERATIONS STANDARDS. ‘‘(2) REQUIRED ORDER UPON FAILURE TO SUB- ties of the Director shall be— ‘‘(a) STANDARDS.—The Director shall estab- MIT OR IMPLEMENT PLAN.—If a regulated enti- ‘‘(A) to oversee the operations of each reg- lish standards, by regulation, guideline, or ty fails to submit an acceptable plan within ulated entity and any joint office of the Fed- order, for each regulated entity relating to— the time allowed under paragraph (1)(C), or eral Home Loan Banks; and ‘‘(1) adequacy of internal controls and in- fails in any material respect to implement a ‘‘(B) to ensure that— formation systems, including information plan accepted by the Director, the following ‘‘(i) each regulated entity operates in a security and privacy policies and practices, shall apply: safe and sound manner, including mainte- taking into account the nature and scale of ‘‘(A) REQUIRED CORRECTION OF DEFI- nance of adequate capital and internal con- business operations; CIENCY.—The Director shall, by order, re- trols; ‘‘(2) independence and adequacy of internal quire the regulated entity to correct the de- ‘‘(ii) the operations and activities of each audit systems; ficiency. regulated entity foster liquid, efficient, com- ‘‘(3) management of credit and ‘‘(B) OTHER AUTHORITY.—The Director may, petitive, and resilient national housing fi- counterparty risk, including systems to by order, take one or more of the following nance markets that minimize the cost of identify concentrations of credit risk and actions until the deficiency is corrected: housing finance (including activities relating prudential limits to restrict exposure of the ‘‘(i) Prohibit the regulated entity from per- to mortgages on housing for low- and regulated entity to a single counterparty or mitting its average total assets (as such moderate- income families involving a rea- groups of related counterparties; term is defined in section 1316(b)) during any sonable economic return that may be less ‘‘(4) management of interest rate risk ex- calendar quarter to exceed its average total than the return earned on other activities); posure; assets during the preceding calendar quarter, ‘‘(iii) each regulated entity complies with ‘‘(5) management of market risk, including or restrict the rate at which the average this title and the rules, regulations, guide- standards that provide for systems that ac- total assets of the entity may increase from lines, and orders issued under this title and curately measure, monitor, and control mar- one calendar quarter to another. the authorizing statutes; and ket risks and, as warranted, that establish ‘‘(ii) Require the regulated entity— ‘‘(iv) each regulated entity carries out its limitations on market risk; ‘‘(I) in the case of an enterprise, to in- statutory mission only through activities ‘‘(6) adequacy and maintenance of liquidity crease its ratio of core capital to assets. that are consistent with this title and the and reserves; ‘‘(II) in the case of a Federal home loan authorizing statutes. ‘‘(7) management of any asset and invest- bank, to increase its ratio of total capital (as ‘‘(2) SCOPE OF AUTHORITY.—The authority ment portfolio; such term is defined in section 6(a)(5) of the of the Director shall include the authority— ‘‘(8) investments and acquisitions by a reg- Federal Home Loan Bank Act (12 U.S.C. ‘‘(A) to review and, if warranted based on ulated entity, to ensure that they are con- 1426(a)(5)) to assets. the principal duties described in paragraph sistent with the purposes of this Act and the ‘‘(iii) Require the regulated entity to take (1), reject any acquisition or transfer of a authorizing statutes; any other action that the Director deter- controlling interest in an enterprise; and ‘‘(9) maintenance of adequate records, in mines will better carry out the purposes of ‘‘(B) to exercise such incidental powers as accordance with consistent accounting poli- this section than any of the actions de- may be necessary or appropriate to fulfill cies and practices that enable the Director scribed in this subparagraph. the duties and responsibilities of the Direc- to evaluate the financial condition of the ‘‘(3) MANDATORY RESTRICTIONS.—In com- tor in the supervision and regulation of each regulated entity; plying with paragraph (2), the Director shall regulated entity. ‘‘(10) issuance of subordinated debt by that take one or more of the actions described in ‘‘(b) DELEGATION OF AUTHORITY.—The Di- particular regulated entity, as the Director clauses (i) through (iii) of paragraph (2)(B) rector may delegate to officers or employees considers necessary; if— of the Agency, including each of the Deputy ‘‘(11) overall risk management processes, ‘‘(A) the Director determines that the reg- Directors, any of the functions, powers, or including adequacy of oversight by senior ulated entity fails to meet any standard pre- duties of the Director, as the Director con- management and the board of directors and scribed under subsection (a); siders appropriate. of processes and policies to identify, meas- ‘‘(B) the regulated entity has not corrected ‘‘(c) LITIGATION AUTHORITY.— ure, monitor, and control material risks, in- the deficiency; and ‘‘(1) IN GENERAL.—In enforcing any provi- cluding reputational risks, and for adequate, ‘‘(C) during the 18-month period before the sion of this title, any regulation or order well-tested business resumption plans for all date on which the regulated entity first prescribed under this title, or any other pro- major systems with remote site facilities to failed to meet the standard, the entity un- vision of law, rule, regulation, or order, or in protect against disruptive events; and derwent extraordinary growth, as defined by any other action, suit, or proceeding to ‘‘(12) such other operational and manage- the Director. which the Director is a party or in which the ment standards as the Director determines ‘‘(c) OTHER ENFORCEMENT AUTHORITY NOT Director is interested, and in the administra- to be appropriate. AFFECTED.—The authority of the Director tion of conservatorships and receiverships, ‘‘(b) FAILURE TO MEET STANDARDS.— under this section is in addition to any other the Director may act in the Director’s own ‘‘(1) PLAN REQUIREMENT.— authority of the Director.’’. name and through the Director’s own attor- ‘‘(A) IN GENERAL.—If the Director deter- (b) INDEPENDENCE IN CONGRESSIONAL TESTI- neys, or request that the Attorney General mines that a regulated entity fails to meet MONY AND RECOMMENDATIONS.—Section 111 of of the United States act on behalf of the Di- any standard established under subsection Public Law 93–495 (12 U.S.C. 250) is amended rector. (a)— by striking ‘‘the Federal Housing Finance

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00048 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.013 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3237 Board’’ and inserting ‘‘the Director of the SEC. 314. AUTHORITY TO REQUIRE REPORTS BY to submit a report annually, in a format des- Federal Housing Finance Agency’’. REGULATED ENTITIES. ignated by the Director, containing the fol- SEC. 313. FEDERAL HOUSING ENTERPRISE Section 1314 of the Housing and Commu- lowing information: BOARD. nity Development Act of 1992 (12 U.S.C. 4514) ‘‘(A) TOTAL VALUE.—The total value of con- (a) IN GENERAL.—Title XIII of the Housing is amended— tributions made by the enterprise to non- and Community Development Act of 1992 (12 (1) in the section heading, by striking ‘‘EN- profit organizations during its previous fis- U.S.C. 4501 et seq.) is amended by inserting TERPRISES’’ and inserting ‘‘REGULATED cal year. after section 1313A, as added by the pre- ENTITIES’’; ‘‘(B) SUBSTANTIAL CONTRIBUTIONS.—If the ceding provisions of this title, the following (2) in subsection (a)— value of contributions made by the enter- new section: (A) in the subsection heading, by striking prise to any nonprofit organization during ‘‘SEC. 1313B. FEDERAL HOUSING ENTERPRISE ‘‘SPECIAL REPORTS AND REPORTS OF FINAN- its previous fiscal year exceeds the des- BOARD. CIAL CONDITION’’ and inserting ‘‘REGULAR AND ignated amount, the name of that organiza- ‘‘(a) IN GENERAL.—There is established the SPECIAL REPORTS’’; tion and the value of contributions. Federal Housing Enterprise Board, which (B) in paragraph (1)— ‘‘(C) SUBSTANTIAL CONTRIBUTIONS TO IN- shall advise the Director with respect to (i) in the paragraph heading, by striking SIDER-AFFILIATED CHARITIES.—Identification overall strategies and policies in carrying ‘‘FINANCIAL CONDITION’’ and inserting ‘‘REG- of each contribution whose value exceeds the out the duties of the Director under this ULAR REPORTS’’; and designated amount that were made by the title. (ii) by striking ‘‘reports of financial condi- enterprise during the enterprise’s previous ‘‘(b) LIMITATIONS.—The Board may not ex- tion and operations’’ and inserting ‘‘regular fiscal year to any nonprofit organization of ercise any executive authority, and the Di- reports on the condition (including financial which a director, officer, or controlling per- rector may not delegate to the Board any of condition), management, activities, or oper- son of the enterprise, or a spouse thereof, the functions, powers, or duties of the Direc- ations of the regulated entity, as the Direc- was a director or trustee, the name of such tor. tor considers appropriate’’; and nonprofit organization, and the value of the ‘‘(c) COMPOSITION.—The Board shall be (C) in paragraph (2), after ‘‘submit special contribution. comprised of 3 members, of whom— reports’’ insert ‘‘on any of the topics speci- ‘‘(2) DEFINITIONS.—For purposes of this sub- ‘‘(1) one member shall be the Secretary of fied in paragraph (1) or such other topics’’; section— the Treasury; and ‘‘(A) the term ‘designated amount’ means ‘‘(2) one member shall be the Secretary of (3) by adding at the end the following new such amount as may be designated by the Di- Housing and Urban Development; and subsection: rector by regulation, consistent with the ‘‘(3) one member shall be the Director, who ‘‘(c) REPORTS OF FRAUDULENT FINANCIAL public interest and the protection of inves- shall serve as the Chairperson of the Board. TRANSACTIONS.— tors for purposes of this subsection; and ‘‘(d) MEETINGS.— ‘‘(1) REQUIREMENT TO REPORT.—The Direc- ‘‘(B) the Director may, by such regulations ‘‘(1) IN GENERAL.—The Board shall meet tor shall require a regulated entity to sub- as the Director deems necessary or appro- upon notice by the Director, but in no event mit to the Director a timely report upon dis- priate in the public interest, define the shall the Board meet less frequently than covery by the regulated entity that it has terms officer and controlling person. once every 3 months. purchased or sold a fraudulent loan or finan- ‘‘(3) PUBLIC AVAILABILITY.—The Director ‘‘(2) SPECIAL MEETINGS.—Either the Sec- cial instrument or suspects a possible fraud shall make the information submitted pursu- retary of the Treasury or the Secretary of relating to a purchase or sale of any loan or ant to this subsection publicly available. Housing and Urban Development may, upon financial instrument. The Director shall re- ‘‘(e) DISCLOSURE OF INCOME.—Each enter- giving written notice to the Director, require quire the regulated entities to establish and prise shall include, in each annual report a special meeting of the Board. maintain procedures designed to discover ‘‘(e) TESTIMONY.—On an annual basis, the filed under section 13 of the Securities Ex- any such transactions. change Act of 1934 (15 U.S.C. 78m), the in- Board shall testify before Congress regard- ‘‘(2) PROTECTION FROM LIABILITY FOR RE- ing— come reported by the issuer to the Internal PORTS.— Revenue Service for the most recent taxable ‘‘(1) the safety and soundness of the regu- ‘‘(A) IN GENERAL.—If a regulated entity lated entities; year. Such income shall— makes a report pursuant to paragraph (1), or ‘‘(1) be presented in a prominent location ‘‘(2) any material deficiencies in the con- a regulated entity-affiliated party makes, or duct of the operations of the regulated enti- in each such report and in a manner that requires another to make, such a report, and permits a ready comparison of such income ties; such report is made in a good faith effort to ‘‘(3) the overall operational status of the to income otherwise required to be included comply with the requirements of paragraph in such reports under regulations issued regulated entities; (1), such regulated entity or regulated enti- ‘‘(4) an evaluation of the performance of under such section; and ty-affiliated party shall not be liable to any ‘‘(2) be submitted to the Securities and Ex- the regulated entities in carrying out their person under any law or regulation of the respective missions; change Commission in a form and manner United States, any constitution, law, or reg- suitable for entry into the EDGAR system of ‘‘(5) operations, resources, and performance ulation of any State or political subdivision of the Agency; and such Commission for public availability of any State, or under any contract or other under such system.’’. ‘‘(6) such other matters relating to the legally enforceable agreement (including any Agency and its fulfillment of its mission, as arbitration agreement), for such report or SEC. 316. ASSESSMENTS. the Board determines appropriate.’’. for any failure to provide notice of such re- Section 1316 of the Housing and Commu- (b) ANNUAL REPORT OF THE DIRECTOR.—Sec- port to the person who is the subject of such nity Development Act of 1992 (12 U.S.C. 4516) tion 1319B(a) of the Housing and Community report or any other person identified in the is amended— Development Act of 1992 (12 U.S.C. 4521 (a)) is report. (1) by striking subsection (a) and inserting amended— ‘‘(B) RULE OF CONSTRUCTION.—Subpara- the following new subsection: (1) in paragraph (3), by striking ‘‘and’’ at graph (A) shall not be construed as cre- ‘‘(a) ANNUAL ASSESSMENTS.—The Director the end; and ating— shall establish and collect from the regu- (2) by striking paragraph (4) and inserting ‘‘(i) any inference that the term ‘person’, lated entities annual assessments in an the following new paragraphs: as used in such subparagraph, may be con- amount not exceeding the amount sufficient ‘‘(4) an assessment of the Board or any of strued more broadly than its ordinary usage to provide for reasonable costs and expenses its members with respect to— so as to include any government or agency of of the Agency, including— ‘‘(A) the safety and soundness of the regu- government; or ‘‘(1) the expenses of any examinations lated entities; ‘‘(ii) any immunity against, or otherwise under section 1317 of this Act and under sec- ‘‘(B) any material deficiencies in the con- affecting, any civil or criminal action tion 20 of the Federal Home Loan Bank Act; duct of the operations of the regulated enti- brought by any government or agency of ‘‘(2) the expenses of obtaining any reviews ties; government to enforce any constitution, law, and credit assessments under section 1319; ‘‘(C) the overall operational status of the or regulation of such government or agen- ‘‘(3) such amounts in excess of actual ex- regulated entities; and cy.’’. penses for any given year as deemed nec- ‘‘(D) an evaluation of the performance of essary by the Director to maintain a work- SEC. 315. DISCLOSURE OF INCOME AND CHARI- the regulated entities in carrying out their TABLE CONTRIBUTIONS BY ENTER- ing capital fund in accordance with sub- missions; PRISES. section (e); and ‘‘(5) operations, resources, and performance Section 1314 of the Housing and Commu- ‘‘(4) the wind up of the affairs of the Office of the Agency; nity Development Act of 1992 (12 U.S.C. 4514), of Federal Housing Enterprise Oversight and ‘‘(6) a description of the demographic as amended by the preceding provisions of the Federal Housing Finance Board under makeup of the workforce of the Agency and this title, is further amended by adding at subtitle C of the Federal Housing Finance the actions taken pursuant to section the end the following new subsections: Reform Act of 2008.’’; 1319A(b) to provide for diversity in the work- ‘‘(d) DISCLOSURE OF CHARITABLE CONTRIBU- (2) in subsection (b)— force; and TIONS BY ENTERPRISES.— (A) in the subsection heading, by striking ‘‘(7) such other matters relating to the ‘‘(1) REQUIRED DISCLOSURE.—The Director ‘‘ENTERPRISES’’ and inserting ‘‘REGULATED Agency and its fulfillment of its mission.’’. shall, by regulation, require each enterprise ENTITIES’’ ;

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00049 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.013 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3238 CONGRESSIONAL RECORD — HOUSE May 8, 2008

(B) by realigning paragraph (2) two ems is in excess of the amount the Director ‘‘(4) ASSERTION OF INTERNAL CONTROLS.— from the left margin, so as to align the left deems necessary to maintain a working cap- The Director shall provide to the Comp- margin of such paragraph with the left mar- ital fund. troller General an assertion as to the effec- gins of paragraph (1); ‘‘(f) TREATMENT OF ASSESSMENTS.— tiveness of the internal controls that apply (C) in paragraph (1)— ‘‘(1) DEPOSIT.—Amounts received by the to financial reporting by the Agency, using (i) by striking ‘‘Each enterprise’’ and in- Director from assessments under this section the standards established in section 3512(c) of serting ‘‘Each regulated entity’’; may be deposited by the Director in the title 31, United States Code. (ii) by striking ‘‘each enterprise’’ and in- manner provided in section 5234 of the Re- ‘‘(5) RULE OF CONSTRUCTION.—This sub- serting ‘‘each regulated entity’’; and vised Statutes (12 U.S.C. 192) for monies de- section may not be construed as implying (iii) by striking ‘‘both enterprises’’ and in- posited by the Comptroller of the Currency. any obligation on the part of the Director to serting ‘‘all of the regulated entities’’; and ‘‘(2) NOT GOVERNMENT FUNDS.—The consult with or obtain the consent or ap- (D) in paragraph (3)— amounts received by the Director from any proval of the Director of the Office of Man- (i) in subparagraph (B), by striking ‘‘sub- assessment under this section shall not be agement and Budget with respect to any re- paragraph (A)’’ and inserting ‘‘clause (i)’’; construed to be Government or public funds ports, plans, forecasts, or other information (ii) by redesignating subparagraphs (A), or appropriated money. referred to in paragraph (1) or any jurisdic- (B), and (C) as clauses (i), (ii) and (ii), respec- ‘‘(3) NO APPORTIONMENT OF FUNDS.—Not- tion or oversight over the affairs or oper- tively, and realigning such clauses, as so re- withstanding any other provision of law, the ations of the Agency. designated, so as to be indented 6 ems from amounts received by the Director from any ‘‘(h) AUDIT OF AGENCY.— the left margin; assessment under this section shall not be ‘‘(1) IN GENERAL.—The Comptroller General (iii) by striking the matter that precedes subject to apportionment for the purpose of shall annually audit the financial trans- clause (i), as so redesignated, and inserting chapter 15 of title 31, United States Code, or actions of the Agency in accordance with the the following: under any other authority. U.S. generally accepted government auditing ‘‘(3) DEFINITION OF TOTAL ASSETS.—For pur- ‘‘(4) USE OF FUNDS.—The Director may use standards as may be prescribed by the Comp- poses of this section, the term ‘total assets’ any amounts received by the Director from troller General of the United States. The means as follows: assessments under this section for compensa- audit shall be conducted at the place or ‘‘(A) ENTERPRISES.—With respect to an en- tion of the Director and other employees of places where accounts of the Agency are nor- terprise, the sum of—’’; and the Agency and for all other expenses of the mally kept. The representatives of the Gov- (iv) by adding at the end the following new Director and the Agency. ernment Accountability Office shall have ac- subparagraph: ‘‘(5) AVAILABILITY OF OVERSIGHT FUND cess to the personnel and to all books, ac- ‘‘(B) FEDERAL HOME LOAN BANKS.—With re- AMOUNTS.—Notwithstanding any other provi- counts, documents, papers, records (includ- spect to a Federal home loan bank, the total sion of law, any amounts remaining in the ing electronic records), reports, files, and all assets of the Bank, as determined by the Di- Federal Housing Enterprises Oversight Fund other papers, automated data, things, or rector in accordance with generally accepted established under this section (as in effect property belonging to or under the control of accounting principles.’’; before the effective date under section 365 of or used or employed by the Agency per- (3) by striking subsection (c) and inserting the Federal Housing Finance Reform Act of taining to its financial transactions and nec- the following new subsection: 2008), and any amounts remaining from as- essary to facilitate the audit, and such rep- ‘‘(c) INCREASED COSTS OF REGULATION.— sessments on the Federal Home Loan banks resentatives shall be afforded full facilities ‘‘(1) INCREASE FOR INADEQUATE CAPITALIZA- pursuant to section 18(b) of the Federal for verifying transactions with the balances TION.—The semiannual payments made pur- Home Loan Bank Act (12 U.S.C. 1438(b)), or securities held by depositories, fiscal suant to subsection (b) by any regulated en- shall, upon such effective date, be treated for agents, and custodians. All such books, ac- tity that is not classified (for purposes of purposes of this subsection as amounts re- counts, documents, records, reports, files, subtitle B) as adequately capitalized may be ceived from assessments under this section. papers, and property of the Agency shall re- increased, as necessary, in the discretion of ‘‘(6) TREASURY INVESTMENTS.— main in possession and custody of the Agen- the Director to pay additional estimated ‘‘(A) AUTHORITY.—The Director may re- cy. The Comptroller General may obtain and costs of regulation of the regulated entity. quest the Secretary of the Treasury to invest duplicate any such books, accounts, docu- ‘‘(2) ADJUSTMENT FOR ENFORCEMENT ACTIVI- such portions of amount received by the Di- ments, records, working papers, automated TIES.—The Director may adjust the amounts rector from assessments paid under this sec- data and files, or other information relevant of any semiannual payments for an assess- tion that, in the Director’s discretion, are to such audit without cost to the Comp- ment under subsection (a) that are to be paid not required to meet the current working troller General and the Comptroller Gen- pursuant to subsection (b) by a regulated en- needs of the Agency. eral’s right of access to such information tity, as necessary in the discretion of the Di- ‘‘(B) GOVERNMENT OBLIGATIONS.—Pursuant shall be enforceable pursuant to section rector, to ensure that the costs of enforce- to a request under subparagraph (A), the 716(c) of title 31, United States Code. ment activities under this Act for a regu- Secretary of the Treasury shall invest such ‘‘(2) REPORT.—The Comptroller General lated entity are borne only by such regulated amounts in government obligations guaran- shall submit to the Congress a report of each entity. teed as to principal and interest by the annual audit conducted under this sub- ‘‘(3) ADDITIONAL ASSESSMENT FOR DEFI- United States with maturities suitable to section. The report to the Congress shall set CIENCIES.—If at any time, as a result of in- the needs of Agency and bearing interest at forth the scope of the audit and shall include creased costs of regulation of a regulated en- a rate determined by the Secretary of the the statement of assets and liabilities and tity that is not classified (for purposes of Treasury taking into consideration current surplus or deficit, the statement of income subtitle B) as adequately capitalized or as market yields on outstanding marketable and expenses, the statement of sources and the result of supervisory or enforcement ac- obligations of the United States of com- application of funds, and such comments and tivities under this Act for a regulated entity, parable maturity. information as may be deemed necessary to the amount available from any semiannual ‘‘(g) BUDGET AND FINANCIAL MANAGE- inform Congress of the financial operations payment made by such regulated entity pur- MENT.— and condition of the Agency, together with suant to subsection (b) is insufficient to ‘‘(1) FINANCIAL OPERATING PLANS AND FORE- such recommendations with respect thereto cover the costs of the Agency with respect to CASTS.—The Director shall provide to the Di- as the Comptroller General may deem advis- such entity, the Director may make and col- rector of the Office of Management and able. A copy of each report shall be furnished lect from such regulated entity an imme- Budget copies of the Director’s financial op- to the President and to the Agency at the diate assessment to cover the amount of erating plans and forecasts as prepared by time submitted to the Congress. such deficiency for the semiannual period. If, the Director in the ordinary course of the ‘‘(3) ASSISTANCE AND COSTS.—For the pur- at the end of any semiannual period during Agency’s operations, and copies of the quar- pose of conducting an audit under this sub- which such an assessment is made, any terly reports of the Agency’s financial condi- section, the Comptroller General may, in the amount remains from such assessment, such tion and results of operations as prepared by discretion of the Comptroller General, em- remaining amount shall be deducted from the Director in the ordinary course of the ploy by contract, without regard to section 5 the assessment for such regulated entity for Agency’s operations. of title 41, United States Code, professional the following semiannual period.’’; ‘‘(2) FINANCIAL STATEMENTS.—The Agency services of firms and organizations of cer- (4) in subsection (d), by striking ‘‘If’’ and shall prepare annually a statement of assets tified public accountants for temporary peri- inserting ‘‘Except with respect to amounts and liabilities and surplus or deficit; a state- ods or for special purposes. Upon the request collected pursuant to subsection (a)(3), if’’; ment of income and expenses; and a state- of the Comptroller General, the Director of and ment of sources and application of funds. the Agency shall transfer to the Government (5) by striking subsections (e) through (g) ‘‘(3) FINANCIAL MANAGEMENT SYSTEMS.—The Accountability Office from funds available, and inserting the following new subsections: Agency shall implement and maintain finan- the amount requested by the Comptroller ‘‘(e) WORKING CAPITAL FUND.—At the end of cial management systems that comply sub- General to cover the full costs of any audit each year for which an assessment under this stantially with Federal financial manage- and report conducted by the Comptroller section is made, the Director shall remit to ment systems requirements, applicable Fed- General. The Comptroller General shall cred- each regulated entity any amount of assess- eral accounting standards, and that uses a it funds transferred to the account estab- ment collected from such regulated entity general ledger system that accounts for ac- lished for salaries and expenses of the Gov- that is attributable to subsection (a)(3) and tivity at the transaction level. ernment Accountability Office, and such

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00050 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.013 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3239 amount shall be available upon receipt and (3) by inserting after subsection (a) the fol- SEC. 320. INCLUSION OF MINORITIES AND without fiscal year limitation to cover the lowing new subsections: WOMEN; DIVERSITY IN AGENCY WORKFORCE. full costs of the audit and report.’’. ‘‘(b) FACTORS.—In making any determina- Section 1319A of the Housing and Commu- SEC. 317. EXAMINERS AND ACCOUNTANTS. tion under subsection (a), the Director may nity Development Act of 1992 (12 U.S.C. 4520) take into consideration any factors the Di- (a) EXAMINATIONS.—Section 1317 of the is amended— rector considers relevant, including any Housing and Community Development Act of (1) in the section heading, by striking 1992 (12 U.S.C. 4517) is amended— wrongdoing on the part of the executive offi- ‘‘EQUAL OPPORTUNITY IN SOLICITATION (1) in subsection (a), by adding after the pe- cer, and such wrongdoing shall include any OF CONTRACTS’’ and inserting ‘‘MINORITY riod at the end the following: ‘‘Each exam- fraudulent act or omission, breach of trust AND WOMEN INCLUSION; DIVERSITY RE- ination under this subsection of a regulated or fiduciary duty, violation of law, rule, reg- QUIREMENTS’’; entity shall include a review of the proce- ulation, order, or written agreement, and in- (2) in subsection (a), by striking ‘‘(a) IN dures required to be established and main- sider abuse with respect to the regulated en- GENERAL.—Each enterprise’’ and inserting tained by the regulated entity pursuant to tity. The approval of an agreement or con- ‘‘(e) OUTREACH.—Each regulated entity’’; and tract pursuant to section 309(d)(3)(B) of the section 1314(c) (relating to fraudulent finan- (3) by striking subsection (b); Federal National Mortgage Association cial transactions) and the report regarding (4) by inserting before subsection (e), as so Charter Act (12 U.S.C. 1723a(d)(3)(B)) or sec- each such examination shall describe any redesignated by paragraph (2) of this section, tion 303(h)(2) of the Federal Home Loan problems with such procedures maintained the following new subsections: Mortgage Corporation Act (12 U.S.C. by the regulated entity.’’; ‘‘(a) OFFICE OF MINORITY AND WOMEN INCLU- 1452(h)(2)) shall not preclude the Director (2) in subsection (b)— SION.—Each regulated entity shall establish (A) by inserting ‘‘of a regulated entity’’ from making any subsequent determination an Office of Minority and Women Inclusion, after ‘‘under this section’’; and under subsection (a). or designate an office of the entity, that (B) by striking ‘‘to determine the condi- ‘‘(c) WITHHOLDING OF COMPENSATION.—In shall be responsible for carrying out this sec- tion of an enterprise for the purpose of en- carrying out subsection (a), the Director tion and all matters of the entity relating to suring its financial safety and soundness’’ may require a regulated entity to withhold diversity in management, employment, and and inserting ‘‘or appropriate’’; and any payment, transfer, or disbursement of business activities in accordance with such (3) in subsection (c)— compensation to an executive officer, or to standards and requirements as the Director (A) in the second sentence, by inserting place such compensation in an escrow ac- shall establish. ‘‘to conduct examinations under this sec- count, during the review of the reasonable- ‘‘(b) INCLUSION IN ALL LEVELS OF BUSINESS tion’’ before the period; and ness and comparability of compensation.’’. ACTIVITIES.—Each regulated entity shall de- (B) in the third sentence, by striking (b) CONFORMING AMENDMENTS.— velop and implement standards and proce- ‘‘from amounts available in the Federal (1) FANNIE MAE.—Section 309(d) of the Fed- dures to ensure, to the maximum extent pos- Housing Enterprises Oversight Fund’’. eral National Mortgage Association Charter sible, the inclusion and utilization of minori- (b) ENHANCED AUTHORITY TO HIRE EXAM- Act (12 U.S.C. 1723a(d)) is amended by adding ties (as such term is defined in section 1204(c) INERS AND ACCOUNTANTS.—Section 1317 of the at the end the following new paragraph: of the Financial Institutions Reform, Recov- Housing and Community Development Act of ‘‘(4) Notwithstanding any other provision ery, and Enforcement Act of 1989 (12 U.S.C. 1992 (12 U.S.C. 4517) is amended by adding at of this section, the corporation shall not 1811 note)) and women, and minority- and the end the following new subsection: transfer, disburse, or pay compensation to women-owned businesses (as such terms are ‘‘(g) APPOINTMENT OF ACCOUNTANTS, ECONO- any executive officer, or enter into an agree- defined in section 21A(r)(4) of the Federal MISTS, SPECIALISTS, AND EXAMINERS.— ment with such executive officer, without Home Loan Bank Act (12 U.S.C. 1441a(r)(4)) ‘‘(1) APPLICABILITY.—This section applies the approval of the Director, for matters (including financial institutions, investment with respect to any position of examiner, ac- being reviewed under section 1318 of the Fed- banking firms, mortgage banking firms, countant, specialist in financial markets, eral Housing Enterprises Financial Safety asset management firms, broker-dealers, fi- specialist in information technology, and and Soundness Act of 1992 (12 U.S.C. 4518).’’. nancial services firms, underwriters, ac- countants, brokers, investment consultants, economist at the Agency, with respect to su- (2) FREDDIE MAC.—Section 303(h) of the pervision and regulation of the regulated en- Federal Home Loan Mortgage Corporation and providers of legal services) in all busi- tities, that is in the competitive service. Act (12 U.S.C. 1452(h)) is amended by adding ness and activities of the regulated entity at ‘‘(2) APPOINTMENT AUTHORITY.—The Direc- at the end the following new paragraph: all levels, including in procurement, insur- ance, and all types of contracts (including tor may appoint candidates to any position ‘‘(4) Notwithstanding any other provision contracts for the issuance or guarantee of described in paragraph (1)— of this section, the Corporation shall not any debt, equity, or mortgage-related securi- ‘‘(A) in accordance with the statutes, rules, transfer, disburse, or pay compensation to and regulations governing appointments in ties, the management of its mortgage and se- any executive officer, or enter into an agree- curities portfolios, the making of its equity the excepted service; and ment with such executive officer, without ‘‘(B) notwithstanding any statutes, rules, investments, the purchase, sale and servicing the approval of the Director, for matters of single- and multi-family mortgage loans, and regulations governing appointments in being reviewed under section 1318 of the Fed- the competitive service. and the implementation of its affordable eral Housing Enterprises Financial Safety housing program and initiatives). The proc- ‘‘(3) RULE OF CONSTRUCTION.—The appoint- and Soundness Act of 1992 (12 U.S.C. 4518).’’. ment of a candidate to a position under the esses established by each regulated entity (3) FEDERAL HOME LOAN BANKS.—Section 7 for review and evaluation for contract pro- authority of this subsection shall not be con- of the Federal Home Loan Bank Act (12 sidered to cause such position to be con- posals and to hire service providers shall in- U.S.C. 1427) is amended by adding at the end clude a component that gives consideration verted from the competitive service to the the following new subsection: excepted service.’’. to the diversity of the applicant. ‘‘(l) WITHHOLDING OF COMPENSATION.—Not- ‘‘(c) APPLICABILITY.—This section shall (c) REPEAL.—Section 20 of the Federal withstanding any other provision of this sec- apply to all contracts of a regulated entity Home Loan Bank Act (12 U.S.C. 1440) is tion, a Federal home loan bank shall not for services of any kind, including services amended— transfer, disburse, or pay compensation to that require the services of investment bank- (1) by striking the section heading and in- any executive officer, or enter into an agree- ing, asset management entities, broker-deal- serting the following: ‘‘EXAMINATIONS AND ment with such executive officer, without ers, financial services entities, underwriters, GAO AUDITS’’; the approval of the Director, for matters accountants, investment consultants, and (2) in the third sentence, by striking ‘‘the being reviewed under section 1318 of the Fed- providers of legal services. Board and’’ each place such term appears; eral Housing Enterprises Financial Safety ‘‘(d) INCLUSION IN ANNUAL REPORTS.—Each and and Soundness Act of 1992 (12 U.S.C. 4518).’’. regulated entity shall include, in the annual (3) by striking the first two sentences and SEC. 319. REVIEWS OF REGULATED ENTITIES. report submitted by the entity to the Direc- inserting the following: ‘‘The Federal home tor pursuant to section 309(k) of the Federal Section 1319 of the Housing and Commu- loan banks shall be subject to examinations National Mortgage Association Charter Act nity Development Act of 1992 (12 U.S.C. 4519) by the Director to the extent provided in sec- (12 U.S.C. 1723a(k)), section 307(c) of the Fed- is amended— tion 1317 of the Federal Housing Enterprises eral Home Loan Mortgage Corporation Act (1) by striking the section designation and Financial Safety and Soundness Act of 1992 (12 U.S.C. 1456(c)), and section 20 of the Fed- (12 U.S.C. 4517).’’. heading and inserting the following: eral Home Loan Bank Act (12 U.S.C. 1440), as SEC. 318. PROHIBITION AND WITHHOLDING OF ‘‘SEC. 1319. REVIEWS OF REGULATED ENTITIES.’’; applicable, detailed information describing EXECUTIVE COMPENSATION. and the actions taken by the entity pursuant to (a) IN GENERAL.—Section 1318 of the Hous- (2) by striking ‘‘is a nationally recognized’’ this section, which shall include a statement ing and Community Development Act of 1992 and all that follows through ‘‘1934’’ and in- of the total amounts paid by the entity to (12 U.S.C. 4518) is amended— serting the following: ‘‘the Director con- third party contractors since the last such (1) in the section heading, by striking ‘‘OF siders appropriate, including an entity that report and the percentage of such amounts EXCESSIVE’’ and inserting ‘‘AND WITH- is registered under section 15 of the Securi- paid to businesses described in subsection (b) HOLDING OF EXECUTIVE’’; ties Exchange Act of 1934 (15 U.S.C. 78a) as a of this section.’’; and (2) by redesignating subsection (b) as sub- nationally registered statistical rating orga- (5) by adding at the end the following new section (d); and nization’’. subsection:

VerDate Aug 31 2005 03:48 May 09, 2008 Jkt 069060 PO 00000 Frm 00051 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.013 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3240 CONGRESSIONAL RECORD — HOUSE May 8, 2008

‘‘(f) DIVERSITY IN AGENCY WORKFORCE.— standards under section 6 of the Federal porary increase in minimum capital imposed The Agency shall take affirmative steps to Home Loan Bank Act for the Federal home on a regulated entity pursuant to this para- seek diversity in its workforce at all levels loan banks. graph shall not remain in place for a period of the agency consistent with the demo- ‘‘(b) CONFIDENTIALITY OF INFORMATION.— of more than 6 months unless the Director graphic diversity of the United States, which Any person that receives any book, record, makes a renewed determination of the exist- shall include— or information from the Director or a regu- ence of an unsafe and unsound condition. ‘‘(1) heavily recruiting at historically lated entity to enable the risk-based capital ‘‘(e) AUTHORITY TO ESTABLISH ADDITIONAL Black colleges and universities, Hispanic- requirements established under this section CAPITAL AND RESERVE REQUIREMENTS FOR serving institutions, women’s colleges, and to be applied shall— PARTICULAR PROGRAMS.—The Director may, colleges that typically serve majority minor- ‘‘(1) maintain the confidentiality of the at any time by order or regulation, establish ity populations; book, record, or information in a manner such capital or reserve requirements with re- ‘‘(2) sponsoring and recruiting at job fairs that is generally consistent with the level of spect to any program or activity of a regu- in urban communities, and placing employ- confidentiality established for the material lated entity as the Director considers appro- ment advertisements in newspapers and by the Director or the regulated entity; and priate to ensure that the regulated entity magazines oriented toward women and peo- ‘‘(2) be exempt from section 552 of title 5, operates in a safe and sound manner, with ple of color; United States Code, with respect to the sufficient capital and reserves to support the ‘‘(3) partnering with organizations that are book, record, or information. risks that arise in the operations and man- focused on developing opportunities for mi- ‘‘(c) NO LIMITATION.—Nothing in this sec- agement of the regulated entity. norities and women to place talented young tion shall limit the authority of the Director ‘‘(f) PERIODIC REVIEW.—The Director shall minorities and women in industry intern- to require other reports or undertakings, or periodically review the amount of core cap- ships, summer employment, and full-time take other action, in furtherance of the re- ital maintained by the enterprises, the sponsibilities of the Director under this positions; and amount of capital retained by the Federal Act.’’. ‘‘(4) where feasible, partnering with inner- home loan banks, and the minimum capital (b) FEDERAL HOME LOAN BANKS RISK-BASED city high schools, girls’ high schools, and levels established for such regulated entities CAPITAL.—Section 6(a)(3) of the Federal pursuant to this section. The Director shall high schools with majority minority popu- Home Loan Bank Act (12 U.S.C. 1426(a)(3)) is rescind any temporary minimum capital lations to establish or enhance financial lit- amended— level increase if the Director determines eracy programs and provide mentoring.’’. (1) by striking subparagraph (A) and in- that the circumstances or facts justifying SEC. 321. REGULATIONS AND ORDERS. serting the following new subparagraph: the temporary increase are no longer Section 1319G of the Housing and Commu- ‘‘(A) RISK-BASED CAPITAL STANDARDS.—The present.’’. nity Development Act of 1992 (12 U.S.C. 4526) Director shall, by regulation, establish risk- (b) CRITICAL CAPITAL LEVELS.— is amended— based capital standards for the Federal home (1) IN GENERAL.—Section 1363 of the Hous- (1) by striking subsection (a) and inserting loan banks to ensure that the Federal home ing and Community Development Act of 1992 the following new subsection: loan banks operate in a safe and sound man- (12 U.S.C. 4613) is amended— ‘‘(a) AUTHORITY.—The Director shall issue ner, with sufficient permanent capital and (A) by striking ‘‘For’’ and inserting ‘‘(a) any regulations, guidelines, and orders nec- reserves to support the risks that arise in ENTERPRISES.—FOR’’; and essary to carry out the duties of the Director the operations and management of the Fed- (B) by adding at the end the following new under this title and each of the authorizing eral home loans banks.’’; and subsection: statutes to ensure that the purposes of this (2) in subparagraph (B), by striking ‘‘(b) FEDERAL HOME LOAN BANKS.— title and such statutes are accomplished.’’; ‘‘(A)(ii)’’ and inserting ‘‘(A)’’. ‘‘(1) IN GENERAL.—For purposes of this sub- (2) in subsection (b), by inserting ‘‘, this SEC. 324. MINIMUM AND CRITICAL CAPITAL LEV- title, or any of the authorizing statutes’’ title, the critical capital level for each Fed- ELS. eral home loan bank shall be such amount of after ‘‘under this section’’; and (a) MINIMUM CAPITAL LEVEL.—Section 1362 capital as the Director shall, by regulation (3) by striking subsection (c). of the Housing and Community Development require. SEC. 322. NON-WAIVER OF PRIVILEGES. Act of 1992 (12 U.S.C. 4612) is amended— ‘‘(2) CONSIDERATION OF OTHER CRITICAL CAP- Part 1 of subtitle A of title XIII of the (1) in subsection (a), by striking ‘‘IN GEN- ITAL LEVELS.—In establishing the critical Housing and Community Development Act of ERAL’’ and inserting ‘‘ENTERPRISES’’; and capital level under paragraph (1) for the Fed- 1992 (12 U.S.C. 4511) is amended by adding at (2) by striking subsection (b) and inserting eral home loan banks, the Director shall the end the following new section: the following new subsections: take due consideration of the critical capital ‘‘(b) FEDERAL HOME LOAN BANKS.—For pur- ‘‘SEC. 1319H. PRIVILEGES NOT AFFECTED BY DIS- level established under subsection (a) for the CLOSURE. poses of this subtitle, the minimum capital enterprises, with such modifications as the ‘‘(a) IN GENERAL.—The submission by any level for each Federal home loan bank shall person of any information to the Agency for be the minimum capital required to be main- Director determines to be appropriate to re- any purpose in the course of any supervisory tained to comply with the leverage require- flect the difference in operations between or regulatory process of the Agency shall not ment for the bank established under section the banks and the enterprises.’’. EGULATIONS.—Not later than the expi- be construed as waiving, destroying, or oth- 6(a)(2) of the Federal Home Loan Bank Act (2) R ration of the 180-day period beginning on the erwise affecting any privilege such person (12 U.S.C. 1426(a)(2)). effective date under section 365, the Director may claim with respect to such information ‘‘(c) ESTABLISHMENT OF REVISED MINIMUM of the Federal Housing Finance Agency shall under Federal or State law as to any person CAPITAL LEVELS.—Notwithstanding sub- issue regulations pursuant to section 1363(b) or entity other than the Agency. sections (a) and (b) and notwithstanding the of the Housing and Community Development ‘‘(b) RULE OF CONSTRUCTION.—No provision capital classifications of the regulated enti- of subsection (a) may be construed as imply- ties, the Director may, by regulations issued Act of 1992 (as added by paragraph (1) of this ing or establishing that— under section 1319G, establish a minimum subsection) establishing the critical capital ‘‘(1) any person waives any privilege appli- capital level for the enterprises, for the Fed- level under such section. eral home loan banks, or for both the enter- cable to information that is submitted or SEC. 325. REVIEW OF AND AUTHORITY OVER EN- prises and the banks, that is higher than the transferred under any circumstance to which TERPRISE ASSETS AND LIABILITIES. level specified in subsection (a) for the enter- subsection (a) does not apply; or (a) IN GENERAL.—Subtitle B of title XIII of prises or the level specified in subsection (b) ‘‘(2) any person would waive any privilege the Housing and Community Development for the Federal home loan banks, to the ex- applicable to any information by submitting Act of 1992 (12 U.S.C. 4611 et seq.) is amend- tent needed to ensure that the regulated en- ed— the information to the Agency, but for this tities operate in a safe and sound manner. subsection.’’. (1) by striking the subtitle designation and ‘‘(d) AUTHORITY TO REQUIRE TEMPORARY IN- heading and inserting the following: SEC. 323. RISK-BASED CAPITAL REQUIREMENTS. CREASE.—Notwithstanding subsections (a) (a) IN GENERAL.—Section 1361 of the Hous- and (b) and any minimum capital level es- ‘‘Subtitle B—Required Capital Levels for Reg- ing and Community Development Act of 1992 tablished pursuant to subsection (c), the Di- ulated Entities, Special Enforcement Pow- (12 U.S.C. 4611) is amended to read as follows: rector may, by order, increase the minimum ers, and Reviews of Assets and Liabilities’’; ‘‘SEC. 1361. RISK-BASED CAPITAL LEVELS FOR capital level for a regulated entity on a tem- and REGULATED ENTITIES. porary basis for such period as the Director (2) by adding at the end the following new ‘‘(a) IN GENERAL.— may provide if the Director— section: ‘‘(1) ENTERPRISES.—The Director shall, by ‘‘(1) makes any determination specified in ‘‘SEC. 1369E. REVIEWS OF ENTERPRISE ASSETS regulation, establish risk-based capital re- subparagraphs (A) through (C) of section AND LIABILITIES. quirements for the enterprises to ensure that 1364(c)(1); ‘‘(a) IN GENERAL.—The Director shall, by the enterprises operate in a safe and sound ‘‘(2) determines that the regulated entity regulation, establish standards by which the manner, maintaining sufficient capital and has violated any of the prudential standards portfolio holdings, or rate of growth of the reserves to support the risks that arise in established pursuant to section 1313A and, as portfolio holdings, of the enterprises will be the operations and management of the enter- a result of such violation, determines that deemed to be consistent with the mission prises. an unsafe and unsound condition exists; or and the safe and sound operations of the en- ‘‘(2) FEDERAL HOME LOAN BANKS.—The Di- ‘‘(3) determines that an unsafe and un- terprises. In developing such standards, the rector shall establish risk-based capital sound condition exists, except that a tem- Director shall consider—

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00052 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.013 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3241 ‘‘(1) the size or growth of the mortgage member would find important to the fulfill- eration of the enterprise and shall remain market; ment of his or her fiduciary duties and obli- reasonably informed of the condition, activi- ‘‘(2) the need for the portfolio in maintain- gations. ties, and operations of the enterprise. The re- ing liquidity or stability of the secondary ‘‘(6) ANNUAL REVIEW.—At least annually, sponsibilities of the board of directors shall mortgage market (including the market for the board of directors of each enterprise include having in place adequate policies and the mortgage-backed securities the enter- shall review, with appropriate professional procedures to assure its oversight of, among prises issue); assistance, the requirements of laws, rules, other matters, the following: ‘‘(3) the need for an inventory of mortgages regulations, and guidelines that are applica- ‘‘(1) Corporate strategy, major plans of ac- in connection with securitizations; ble to its activities and duties. tion, risk policy, programs for legal and reg- ‘‘(4) the need for the portfolio to directly ‘‘(b) COMMITTEES OF BOARDS OF DIREC- ulatory compliance and corporate perform- support the affordable housing mission of the TORS.— ance, including prudent plans for growth and enterprises; ‘‘(1) FREQUENCY OF MEETINGS.—Any com- allocation of adequate resources to manage ‘‘(5) the liquidity needs of the enterprises; mittee of the board of directors of an enter- operations risk. ‘‘(6) any potential risks posed to the enter- prise shall meet with sufficient frequency to ‘‘(2) Hiring and retention of qualified exec- prises by the nature of the portfolio hold- carry out its obligations and duties under utive officers and succession planning for ings; and applicable laws, rules, regulations, and such executive officers. ‘‘(7) any additional factors that the Direc- guidelines. ‘‘(3) Compensation programs of the enter- tor determines to be necessary to carry out ‘‘(2) REQUIRED COMMITTEES.—Each enter- prise. the purpose under the first sentence of this prise shall provide for the establishment, ‘‘(4) Integrity of accounting and financial subsection to establish standards for assess- however styled, of the following committees reporting systems of the enterprise, includ- ing whether the portfolio holdings are con- of the board of directors: ing independent audits and systems of inter- sistent with the mission and safe and sound ‘‘(A) Audit committee. nal control. operations of the enterprises. ‘‘(B) Compensation committee. ‘‘(5) Process and adequacy of reporting, dis- ‘‘(b) TEMPORARY ADJUSTMENTS.—The Direc- ‘‘(C) Nominating/corporate governance closures, and communications to share- tor may, by order, make temporary adjust- committee. holders, investors, and potential investors. ments to the established standards for an en- Such committees shall be in compliance ‘‘(6) Extensions of credit to board members terprise or both enterprises, such as during with the charter, independence, composition, and executive officers. times of economic distress or market disrup- expertise, duties, responsibilities, and other ‘‘(7) Responsiveness of executive officers in tion. requirements set forth under section 10A(m) providing accurate and timely reports to ‘‘(c) AUTHORITY TO REQUIRE DISPOSITION OR of the Securities Exchange Act of 1934 (15 Federal regulators and in addressing the su- ACQUISITION.—The Director shall monitor U.S.C. 78j–1(m)), with respect to the audit pervisory concerns of Federal regulators in a the portfolio of each enterprise. Pursuant to committee, and under rules issued by the timely and appropriate manner. subsection (a) and notwithstanding the cap- New York Stock Exchange, as such rules ‘‘(f) PROHIBITION OF EXTENSIONS OF CRED- ital classifications of the enterprises, the Di- may be amended from time to time. IT.—An enterprise may not directly or indi- ‘‘(c) COMPENSATION.— rector may, by order, require an enterprise, rectly, including through any subsidiary, ex- ‘‘(1) IN GENERAL.—The compensation of under such terms and conditions as the Di- tend or maintain credit, arrange for the ex- board members, executive officers, and em- rector determines to be appropriate, to dis- tension of credit, or renew an extension of ployees of an enterprise— pose of or acquire any asset, if the Director credit, in the form of a personal loan to or ‘‘(A) shall not be in excess of that which is determines that such action is consistent for any board member or executive officer of reasonable and appropriate; with the purposes of this Act or any of the the enterprise, as provided by section 13(k) of ‘‘(B) shall be commensurate with the du- authorizing statutes.’’. the Securities Exchange Act of 1934 (15 ties and responsibilities of such persons; (b) REGULATIONS.—Not later than the expi- U.S.C. 78m(k)). ‘‘(C) shall be consistent with the long-term ration of the 180-day period beginning on the ‘‘(g) CERTIFICATION OF DISCLOSURES.—The goals of the enterprise; effective date under section 365, the Director chief executive officer and the chief financial ‘‘(D) shall not focus solely on earnings per- of the Federal Housing Finance Agency shall officer of an enterprise shall review each formance, but shall take into account risk issue regulations pursuant to section quarterly report and annual report issued by management, operational stability and legal the enterprise and such reports shall include 1369E(a) of the Housing and Community De- and regulatory compliance as well; and certifications by such officers as required by velopment Act of 1992 (as added by sub- ‘‘(E) shall be undertaken in a manner that section 302 of the Sarbanes-Oxley Act of 2002 section (a) of this section) establishing the complies with applicable laws, rules, and (15 U.S.C. 7241). portfolio holdings standards under such sec- regulations. ‘‘(h) CHANGE OF AUDIT PARTNER.—An enter- tion. ‘‘(2) REIMBURSEMENT.—If an enterprise is prise may not accept audit services from an SEC. 326. CORPORATE GOVERNANCE OF ENTER- required to prepare an accounting restate- external auditing firm if the lead or coordi- PRISES. ment due to the material noncompliance of nating audit partner who has primary re- The Housing and Community Development the enterprise, as a result of misconduct, sponsibility for the external audit of the en- Act of 1992 is amended by inserting before with any financial reporting requirement terprise, or the external audit partner who section 1323 (12 U.S.C. 4543) the following new under the securities laws, the chief executive has responsibility for reviewing the external section: officer and chief financial officer of the en- audit has performed audit services for the ‘‘SEC. 1322A. CORPORATE GOVERNANCE OF EN- terprise shall reimburse the enterprise as enterprise in each of the five previous fiscal TERPRISES. provided under section 304 of the Sarbanes- years. ‘‘(a) BOARD OF DIRECTORS.— Oxley Act of 2002 (15 U.S.C. 7243). This provi- ‘‘(i) COMPLIANCE PROGRAM.— ‘‘(1) INDEPENDENCE.—A majority of seated sion does not otherwise limit the authority ‘‘(1) REQUIREMENT.—Each enterprise shall members of the board of directors of each en- of the Agency to employ remedies available establish and maintain a compliance pro- terprise shall be independent board mem- to it under its enforcement authorities. gram that is reasonably designed to assure bers, as defined under rules set forth by the ‘‘(d) CODE OF CONDUCT AND ETHICS.— that the enterprise complies with applicable New York Stock Exchange, as such rules ‘‘(1) IN GENERAL.—An enterprise shall es- laws, rules, regulations, and internal con- may be amended from time to time. tablish and administer a written code of con- trols. ‘‘(2) FREQUENCY OF MEETINGS.—To carry duct and ethics that is reasonably designed ‘‘(2) COMPLIANCE OFFICER.—The compliance out its obligations and duties under applica- to assure the ability of board members, exec- program of an enterprise shall be headed by ble laws, rules, regulations, and guidelines, utive officers, and employees of the enter- a compliance officer, however styled, who re- the board of directors of an enterprise shall prise to discharge their duties and respon- ports directly to the chief executive officer meet at least eight times a year and not less sibilities, on behalf of the enterprise, in an of the enterprise. The compliance officer than once a calendar quarter. objective and impartial manner, and that in- shall report regularly to the board of direc- ‘‘(3) NON-MANAGEMENT BOARD MEMBER cludes standards required under section 406 tors or an appropriate committee of the MEETINGS.—The non-management directors of the Sarbanes-Oxley Act of 2002 (15 U.S.C. board of directors on compliance with and of an enterprise shall meet at regularly 7264) and other applicable laws, rules, and the adequacy of current compliance policies scheduled executive sessions without man- regulations. and procedures of the enterprise, and shall agement participation. ‘‘(2) REVIEW.—Not less than once every recommend any adjustments to such policies ‘‘(4) QUORUM; PROHIBITION ON PROXIES.—For three years, an enterprise shall review the and procedures that the compliance officer the transaction of business, a quorum of the adequacy of its code of conduct and ethics considers necessary and appropriate. board of directors of an enterprise shall be at for consistency with practices appropriate to ‘‘(j) RISK MANAGEMENT PROGRAM.— least a majority of the seated board of direc- the enterprise and make any appropriate re- ‘‘(1) REQUIREMENT.—Each enterprise shall tors and a board member may not vote by visions to such code. establish and maintain a risk management proxy. ‘‘(e) CONDUCT AND RESPONSIBILITIES OF program that is reasonably designed to man- ‘‘(5) INFORMATION.—The management of an BOARD OF DIRECTORS.—The board of directors age the risks of the operations of the enter- enterprise shall provide a board member of of an enterprise shall be responsible for di- prise. the enterprise with such adequate and appro- recting the conduct and affairs of the enter- ‘‘(2) RISK MANAGEMENT OFFICER.—The risk priate information that a reasonable board prise in furtherance of the safe and sound op- management program of an enterprise shall

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00053 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.014 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3242 CONGRESSIONAL RECORD — HOUSE May 8, 2008 be headed by a risk management officer, SEC. 329. GUARANTEE FEE STUDY. (6) in section 1315 (12 U.S.C. 4515)— however styled, who reports directly to the (a) IN GENERAL.—The Director of the Fed- (A) in subsection (a)— chief executive officer of the enterprise. The eral Housing Finance Agency, in consulta- (i) in the subsection heading, by striking risk management officer shall report regu- tion with the heads of the federal banking ‘‘OFFICE PERSONNEL’’ and inserting ‘‘IN GEN- larly to the board of directors or an appro- agencies, shall, not later than 18 months ERAL’’; and priate committee of the board of directors on after the date of the enactment of this Act, (ii) by striking ‘‘The’’ and inserting ‘‘Sub- compliance with and the adequacy of current submit to the Congress a study concerning ject to subtitle C of the Federal Housing Fi- risk management policies and procedures of the pricing, transparency and reporting of nance Reform Act of 2008, the’’; the enterprise, and shall recommend any ad- the Federal National Mortgage Association, (B) by striking subsections (d) and (f); and justments to such policies and procedures the Federal Home Loan Mortgage Corpora- (C) by redesignating subsection (e) as sub- that the risk management officer considers tion, and the Federal home loan banks with section (d); necessary and appropriate. regard to guarantee fees and concerning (7) in section 1319B (12 U.S.C. 4521), by ‘‘(k) COMPLIANCE WITH OTHER LAWS.— analogous practices, transparency and re- striking ‘‘Committee on Banking, Finance ‘‘(1) DEREGISTERED OR UNREGISTERED COM- porting requirements (including advances and Urban Affairs’’ each place such term ap- MON STOCK.—If an enterprise deregisters or pricing practices by the Federal Home Loan pears and inserting ‘‘Committee on Finan- has not registered its common stock with Banks) of other participants in the business cial Services’’; and the Securities and Exchange Commission of mortgage purchases and securitization. (8) in section 1319F (12 U.S.C. 4525), striking under the Securities Exchange Act of 1934, (b) FACTORS.—The study required by this all that follows ‘‘United States Code’’ and in- the enterprise shall comply or continue to section shall examine various factors such as serting ‘‘, the Agency shall be considered an comply with sections 10A(m) and 13(k) of the credit risk, counterparty risk consider- agency responsible for the regulation or su- Securities Exchange Act of 1934 (15 U.S.C. ations, economic value considerations, and pervision of financial institutions.’’. 78j–1(m), 78m(k)) and sections 302, 304, and volume considerations used by the regulated (b) AMENDMENTS TO FANNIE MAE CHARTER 406 of the Sarbanes-Oxley Act of 2002 (15 entities (as such term is defined in section ACT.—The Federal National Mortgage Asso- U.S.C. 7241, 7243, 7264), subject to such re- 1303 of the Housing and Community Develop- quirements as provided by subsection (l) of ment Act of 1992) included in the study in ciation Charter Act (12 U.S.C. 1716 et seq.) is this section. setting the amount of fees they charge. amended— ‘‘(2) REGISTERED COMMON STOCK.—An enter- (c) CONTENTS OF REPORT.—The report re- (1) by striking ‘‘Director of the Office of prise that has its common stock registered quired under subsection (a) shall identify and Federal Housing Enterprise Oversight of the with the Securities and Exchange Commis- analyze— Department of Housing and Urban Develop- sion shall maintain such registered status, (1) the factors used by each enterprise (as ment’’ each place such term appears, and in- unless it provides 60 days prior written no- such term is defined in section 1303 of the serting ‘‘Director of the Federal Housing Fi- tice to the Director stating its intent to Housing and Community Development Act of nance Agency’’, in— deregister and its understanding that it will 1992) in determining the amount of the guar- (A) section 303(c)(2) (12 U.S.C. 1718(c)(2)); remain subject to the requirements of the antee fees it charges; (B) section 309(d)(3)(B) (12 U.S.C. sections of the Securities Exchange Act of (2) the total revenue the enterprises earn 1723a(d)(3)(B)); and 1934 and the Sarbanes-Oxley Act of 2002, sub- from guarantee fees; (C) section 309(k)(1); and ject to such requirements as provided by sub- (3) the total costs incurred by the enter- (2) in section 309— section (l) of this section. prises for providing guarantees; (A) in subsections (d)(3)(A) and (n)(1), by ‘‘(l) OTHER MATTERS.—The Director may (4) the average guarantee fee charged by striking ‘‘Banking, Finance and Urban Af- from time to time establish standards, by the enterprises; fairs’’ each place such term appears and in- regulation, order, or guideline, regarding (5) an analysis of how and why the guar- serting ‘‘Financial Services’’; and such other corporate governance matters of antee fees charged differ from such fees (B) in subsection (m)— the enterprises as the Director considers ap- charged during the previous year; (i) in paragraph (1), by striking ‘‘Sec- propriate. (6) a breakdown of the revenue and costs retary’’ the second place such term appears ‘‘(m) MODIFICATION OF STANDARDS.—In con- associated with providing guarantees, based and inserting ‘‘Director’’; nection with standards of Federal or State on product type and risk classifications; and (ii) in paragraph (2), by striking ‘‘Sec- law (including the Revised Model Corpora- (7) other relevant information on guar- retary’’ the second place such term appears tion Act) or New York Stock Exchange rules antee fees with other participants in the and inserting ‘‘Director’’; and that are made applicable to an enterprise by mortgage and securitization business. (iii) by striking ‘‘Secretary’’ each other section 1710.10 of the Director’s rules (12 CFR (d) PROTECTION OF INFORMATION.—Nothing place such term appears and inserting ‘‘Di- 1710.10) and by subsections (a), (b), (g), (i), (j), in this section may be construed to require rector of the Federal Housing Finance Agen- and (k) of this section, the Director, in the or authorize the Director of the Federal cy’’; and Director’s sole discretion, may modify the Housing Finance Agency, in connection with (C) in subsection (n), by striking ‘‘Sec- standards contained in this section or in part the study mandated by this section, to dis- retary’’ each place such term appears and in- 1710 of the Director’s rules (12 CFR Part 1710) close information of the enterprises or other serting ‘‘Director of the Federal Housing Fi- in accordance with section 553 of title 5, organization that is confidential or propri- nance Agency’’. United States Code, and upon written notice etary. (c) AMENDMENTS TO FREDDIE MAC ACT.— to the enterprise.’’. (e) EFFECTIVE DATE.—This section shall The Federal Home Loan Mortgage Corpora- SEC. 327. REQUIRED REGISTRATION UNDER SE- take effect on the date of the enactment of tion Act is amended— CURITIES EXCHANGE ACT OF 1934. this Act. (1) by striking ‘‘Director of the Office of The Housing and Community Development SEC. 330. CONFORMING AMENDMENTS. Federal Housing Enterprise Oversight of the Act of 1992 is amended by adding after sec- (a) 1992 ACT.—Part 1 of subtitle A of title Department of Housing and Urban Develop- tion 1322A, as added by the preceding provi- XIII of the Housing and Community Develop- ment’’ each place such term appears, and in- sions of this title, the following new section: ment Act of 1992 (12 U.S.C. 4511 et seq.), as serting ‘‘Director of the Federal Housing Fi- ‘‘SEC. 1322B. REQUIRED REGISTRATION UNDER amended by the preceding provisions of this nance Agency’’, in— SECURITIES EXCHANGE ACT OF 1934. title, is further amended— (A) section 303(b)(2) (12 U.S.C. 1452(b)(2)); ‘‘(a) IN GENERAL.—Each regulated entity (1) by striking ‘‘an enterprise’’ each place (B) section 303(h)(2) (12 U.S.C. 1452(h)(2)); shall register at least one class of the capital such term appears in such part (except in and stock of such regulated entity, and maintain sections 1313(a)(2)(A), 1313A(b)(2)(B)(ii)(I), (C) section 307(c)(1) (12 U.S.C. 1456(c)(1)); such registration with the Securities and Ex- and 1316(b)(3)) and inserting ‘‘a regulated en- (2) in sections 303(h)(1) and 307(f)(1) (12 change Commission, under the Securities tity’’; U.S.C. 1452(h)(1), 1456(f)(1)), by striking Exchange Act of 1934. (2) by striking ‘‘the enterprise’’ each place ‘‘Banking, Finance and Urban Affairs’’ each ‘‘(b) ENTERPRISES.—Each enterprise shall such term appears in such part (except in place such term appears and inserting ‘‘Fi- comply with sections 14 and 16 of the Securi- section 1316(b)(3)) and inserting ‘‘the regu- nancial Services’’; ties Exchange Act of 1934.’’. lated entity’’; (3) in section 306(i) (12 U.S.C. 1455(i))— SEC. 328. LIAISON WITH FINANCIAL INSTITU- (3) by striking ‘‘the enterprises’’ each place (A) by striking ‘‘1316(c)’’ and inserting TIONS EXAMINATION COUNCIL. such term appears in such part (except in ‘‘306(c)’’; and Section 1007 of the Federal Financial Insti- sections 1312(c)(2), and 1312(e)(2)) and insert- (B) by striking ‘‘section 106’’ and inserting tutions Examination Council Act of 1978 (12 ing ‘‘the regulated entities’’; ‘‘section 1316’’; and U.S.C. 3306) is amended— (4) by striking ‘‘each enterprise’’ each (4) in section 307 (12 U.S.C. 1456))— (1) in the section heading, by inserting place such term appears in such part and in- (A) in subsection (e)— after ‘‘STATE’’ the following: ‘‘AND FEDERAL serting ‘‘each regulated entity’’; (i) in paragraph (1), by striking ‘‘Sec- HOUSING FINANCE AGENCY’’; and (5) by striking ‘‘Office’’ each place such retary’’ the second place such term appears (2) by inserting after ‘‘financial institu- term appears in such part (except in sections and inserting ‘‘Director’’; tions’’ the following: ‘‘, and one representa- 1311(b)(2), 1312(b)(5), 1315(b), and 1316(a)(4), (ii) in paragraph (2), by striking ‘‘Sec- tive of the Federal Housing Finance Agen- (g), and (h), 1317(c), and 1319A(a)) and insert- retary’’ the second place such term appears cy,’’. ing ‘‘Agency’’; and inserting ‘‘Director’’; and

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00054 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.014 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3243

(iii) by striking ‘‘Secretary’’ each other ‘‘(B) FAILURE TO ACT.—If the Director fails (A) by striking ‘‘implement any new pro- place such term appears and inserting ‘‘Di- to act within the 30-day period described in gram’’ and inserting ‘‘initially offer any rector of the Federal Housing Finance Agen- subparagraph (A), the enterprise may offer product’’; cy’’; and the product. (B) by striking ‘‘section 1303’’ and inserting (B) in subsection (f), by striking ‘‘Sec- ‘‘(d) EXPEDITED REVIEW.— ‘‘section 1321(f)’’; and retary’’ each place such term appears and in- ‘‘(1) DETERMINATION AND NOTICE.—If an en- (C) by striking ‘‘before obtaining the ap- serting ‘‘Director of the Federal Housing Fi- terprise determines that any new activity, proval of the Secretary under section 1322’’ nance Agency’’. service, undertaking, or offering is not a and inserting ‘‘except in accordance with CHAPTER 2—IMPROVEMENT OF MISSION product, as defined in subsection (f), the en- section 1321’’. SUPERVISION terprise shall provide written notice to the (3) 1992 ACT.—Section 1303 of the Housing SEC. 331. TRANSFER OF PRODUCT APPROVAL Director prior to the commencement of such and Community Development Act of 1992 (12 AND HOUSING GOAL OVERSIGHT. activity, service, undertaking, or offering. U.S.C. 4502), as amended by the preceding Part 2 of subtitle A of title XIII of the ‘‘(2) DIRECTOR DETERMINATION OF APPLICA- provisions of this title, is further amended— Housing and Community Development Act of BLE PROCEDURE.—Immediately upon receipt (A) by striking paragraph (17) (relating to 1992 (12 U.S.C. 4541 et seq.) is amended— of any notice pursuant to paragraph (1), the the definition of ‘‘new program’’); and (1) by striking the designation and heading Director shall make a determination under (B) by redesignating paragraphs (18) for the part and inserting the following: paragraph (3). through (23) as paragraphs (17) through (22), ‘‘PART 2—PRODUCT APPROVAL BY DIREC- ‘‘(3) DETERMINATION AND TREATMENT AS respectively. TOR, CORPORATE GOVERNANCE, AND PRODUCT.—If the Director determines that SEC. 333. CONFORMING LOAN LIMITS. any new activity, service, undertaking, or of- ESTABLISHMENT OF HOUSING GOALS’’; (a) FANNIE MAE.—Section 302(b)(2) of the and fering consists of, relates to, or involves a Federal National Mortgage Association (2) by striking sections 1321 and 1322. product— Charter Act (12 U.S.C. 1717(b)(2)) is amend- ‘‘(A) the Director shall notify the enter- SEC. 332. REVIEW OF ENTERPRISE PRODUCTS. ed— prise of the determination; (a) IN GENERAL.—Part 2 of subtitle A of (1) in the second sentence, by redesignating title XIII of the Housing and Community De- ‘‘(B) the new activity, service, under- clause (A) through (C) as clauses (i) through velopment Act of 1992 is amended by insert- taking, or offering described in the notice (iii), respectively; ing before section 1323 (12 U.S.C. 4543) the fol- under paragraph (1) shall be considered a (2) in the third sentence, by striking lowing new section: product for purposes of this section; and ‘‘clause (A)’’ and inserting ‘‘clause (i)’’; ‘‘(C) the enterprise shall withdraw its re- ‘‘SEC. 1321. PRIOR APPROVAL AUTHORITY FOR (3) in the 4th sentence, by striking ‘‘the PRODUCTS OF ENTERPRISES. quest or submit a written request for ap- Resolution Trust Corporation,’’; ‘‘(a) IN GENERAL.—The Director shall re- proval of the product pursuant to subsection (4) by striking the 7th and 8th sentences quire each enterprise to obtain the approval (c). and inserting the following new sentences: of the Director for any product of the enter- ‘‘(e) CONDITIONAL APPROVAL.—The Director ‘‘For 2008, such limitations shall not exceed prise before initially offering the product. may conditionally approve the offering of $417,000 for a mortgage secured by a single- ‘‘(b) STANDARD FOR APPROVAL.—In consid- any product by an enterprise, and may estab- family residence, $533,850 for a mortgage se- ering any request for approval of a product lish terms, conditions, or limitations with cured by a 2-family residence, $645,300 for a pursuant to subsection (a), the Director shall respect to such product with which the en- mortgage secured by a 3-family residence, make a determination that— terprise must comply in order to offer such and $801,950 for a mortgage secured by a 4- ‘‘(1) in the case of a product of the Federal product. family residence, except that such maximum National Mortgage Association, the Director ‘‘(f) DEFINITION OF PRODUCT.—For purposes limitations shall be adjusted effective Janu- determines that the product is authorized of this section, the term ‘product’ does not ary 1 of each year beginning with 2009, sub- under paragraph (2), (3), (4), or (5) of section include— ject to the limitations in this paragraph. 302(b) or section 304 of the Federal National ‘‘(1) the automated loan underwriting sys- Each adjustment shall be made by adding to Mortgage Association Charter Act, (12 U.S.C. tem of an enterprise in existence as of the or subtracting from each such amount (as it 1717(b), 1719); date of the enactment of the Federal Hous- may have been previously adjusted) a per- ‘‘(2) in the case of a product of the Federal ing Finance Reform Act of 2008, including centage thereof equal to the percentage in- Home Loan Mortgage Corporation, the Di- any upgrade to the technology, operating crease or decrease, during the most recent rector determines that the product is au- system, or software to operate the under- 12-month or four-quarter period ending be- thorized under paragraph (1), (4), or (5) of writing system; or fore the time of determining such annual ad- section 305(a) of the Federal Home Loan ‘‘(2) any modification to the mortgage justment, in the housing price index main- Mortgage Corporation Act (12 U.S.C. 1454(a)); terms and conditions or mortgage under- tained by the Director of the Federal Hous- ‘‘(3) the product is in the public interest; writing criteria relating to the mortgages ing Finance Agency (pursuant to section 1322 ‘‘(4) the product is consistent with the that are purchased or guaranteed by an en- of the Housing and Community Development safety and soundness of the enterprise or the terprise: Provided, That such modifications Act of 1992 (12 U.S.C. 4541)).’’. mortgage finance system; and do not alter the underlying transaction so as (5) by inserting ‘‘(A)’’ after ‘‘(2)’’; and ‘‘(5) the product does not materially impair to include services or financing, other than (6) by adding at the end the following new the efficiency of the mortgage finance sys- residential mortgage financing, or create subparagraph: tem. significant new exposure to risk for the en- ‘‘(B)(i) Notwithstanding subparagraph (A), ‘‘(c) PROCEDURE FOR APPROVAL.— terprise or the holder of the mortgage. for mortgages originated on or after January ‘‘(1) SUBMISSION OF REQUEST.—An enter- prise shall submit to the Director a written ‘‘(g) NO LIMITATION.—Nothing in this sec- 1, 2009, the limitation on the maximum origi- request for approval of a product that de- tion shall be deemed to restrict— nal principal obligation of a mortgage that scribes the product in such form as pre- ‘‘(1) the safety and soundness authority of may be purchased by the corporation shall scribed by order or regulation of the Direc- the Director over all new and existing prod- be the higher of— tor. ucts or activities; or ‘‘(I) the limitation determined under sub- paragraph (A) for a residence of the applica- ‘‘(2) REQUEST FOR PUBLIC COMMENT.—Imme- ‘‘(2) the authority of the Director to review diately upon receipt of a request for approval all new and existing products or activities to ble size; or of a product, as required under paragraph (1), determine that such products or activities ‘‘(II) 125 percent of the area median price the Director shall publish notice of such re- are consistent with the statutory mission of for a residence of the applicable size, but in quest and of the period for public comment the enterprise.’’. no case to exceed 175 percent of the limita- tion determined under subparagraph (A) for pursuant to paragraph (3) regarding the (b) CONFORMING AMENDMENTS.— a residence of the applicable size. product, and a description of the product (1) FANNIE MAE.—Section 302(b)(6) of the proposed by the request. The Director shall Federal National Mortgage Association ‘‘(ii) The areas and area median prices used give interested parties the opportunity to re- Charter Act (12 U.S.C. 1717(b)(6)) is amend- for purposes of the determination under this spond in writing to the proposed product. ed— subparagraph shall be the areas and area me- ‘‘(3) PUBLIC COMMENT PERIOD.—During the (A) by striking ‘‘implement any new pro- dian prices used by the Secretary of Housing 30-day period beginning on the date of publi- gram’’ and inserting ‘‘initially offer any and Urban Development in determining the cation pursuant to paragraph (2) of a request product’’; applicable limits under section 203(b)(2) of for approval of a product, the Director shall (B) by striking ‘‘section 1303’’ and inserting the National Housing Act (12 U.S.C. receive public comments regarding the pro- ‘‘section 1321(f)’’; and 1709(b)(2)). A mortgage that is eligible for posed product. (C) by striking ‘‘before obtaining the ap- purchase by the corporation at the time the ‘‘(4) OFFERING OF PRODUCT.— proval of the Secretary under section 1322’’ mortgage is originated under this subpara- ‘‘(A) IN GENERAL.—Not later than 30 days and inserting ‘‘except in accordance with graph shall be eligible for such purchase for after the close of the public comment period section 1321’’. the duration of the term of the mortgage.’’. described in paragraph (3), the Director shall (2) FREDDIE MAC.—Section 305(c) of the (b) FREDDIE MAC.—Section 305(a)(2) of the approve or deny the product, specifying the Federal Home Loan Mortgage Corporation Federal Home Loan Mortgage Corporation grounds for such decision in writing. Act (12 U.S.C. 1454(c)) is amended— Act (12 U.S.C. 1454(a)(2)) is amended—

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00055 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.014 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3244 CONGRESSIONAL RECORD — HOUSE May 8, 2008

(1) in the first sentence, by redesignating ‘‘(b) GAO AUDIT.— ‘‘(2) aggregate and analyze relevant data clause (A) through (C) as clauses (i) through ‘‘(1) IN GENERAL.—At such times as are re- on income to assess the compliance by each (iii), respectively; quired under paragraph (2), the Comptroller enterprise with the housing goals established (2) in the second sentence, by striking General of the United States shall conduct under subpart B; ‘‘clause (A)’’ and inserting ‘‘clause (i)’’; an audit of the methodology established by ‘‘(3) aggregate and analyze data on income, (3) in the third sentence by striking ‘‘the the Director under subsection (a) to deter- race, and gender by census tract and other Resolution Trust Corporation’’; mine whether the methodology established is relevant classifications, and compare such (4) by striking the 6th and 7th sentence and an accurate and appropriate means of meas- data with larger demographic, housing, and inserting the following new sentences: ‘‘For uring changes to the national average 1-fam- economic trends; 2008, such limitations shall not exceed ily house price. ‘‘(4) examine actions that— $417,000 for a mortgage secured by a single- ‘‘(2) TIMING.—An audit referred to in para- ‘‘(A) each enterprise has undertaken or family residence, $533,850 for a mortgage se- graph (1) shall be conducted and completed could undertake to promote and expand the cured by a 2-family residence, $645,300 for a not later than the expiration of the 180-day annual goals established under subpart B and mortgage secured by a 3-family residence, period that begins upon each of the following the purposes of the enterprise established by and $801,950 for a mortgage secured by a 4- dates: law; and family residence, except that such maximum ‘‘(A) ESTABLISHMENT.—The date upon ‘‘(B) each Federal home loan bank has limitations shall be adjusted effective Janu- which such methodology is initially estab- taken or could undertake to promote and ex- ary 1 of each year beginning with 2009, sub- lished under subsection (a) in final form by pand the community investment program ject to the limitations in this paragraph. the Director. and affordable housing program of the bank Each adjustment shall be made by adding to ‘‘(B) MODIFICATION OR AMENDMENT.—Each established under subsections (i) and (j) of or subtracting from each such amount (as it date upon which any modification or amend- section 10 of the Federal Home Loan Bank may have been previously adjusted) a per- ment to such methodology is adopted in final Act; centage thereof equal to the percentage in- form by the Director. ‘‘(5) examine the primary and secondary crease or decrease, during the most recent ‘‘(3) REPORT.—Within 30 days of the com- multifamily housing mortgage markets and 12-month or four-quarter period ending be- pletion of any audit conducted under this describe— fore the time of determining such annual ad- subsection, the Comptroller General shall ‘‘(A) the availability and liquidity of mort- justment, in the housing price index main- submit a report detailing the results and gage credit; tained by the Director of the Federal Hous- conclusions of the audit to the Director, the ‘‘(B) the status of efforts to provide stand- ing Finance Agency (pursuant to section 1322 Committee on Financial Services of the ard credit terms and underwriting guidelines of the Housing and Community Development House of Representatives, and the Com- for multifamily housing and to securitize Act of 1992 (12 U.S.C. 4541)).’’; mittee on Banking, Housing, and Urban Af- such mortgage products; and (5) by inserting ‘‘(A)’’ after ‘‘(2)’’; and fairs of the Senate.’’. ‘‘(C) any factors inhibiting such standard- (d) SENSE OF CONGRESS.—It is the sense of (6) by adding at the end the following new ization and securitization; the Congress that the securitization of mort- subparagraph: ‘‘(6) examine actions each regulated entity gages by the Federal National Mortgage As- ‘‘(B)(i) Notwithstanding subparagraph (A), has undertaken and could undertake to pro- sociation and the Federal Home Loan Mort- mote and expand opportunities for first-time for mortgages originated on or after January gage Corporation plays an important role in homebuyers, including the use of alternative 1, 2009, the limitation on the maximum origi- providing liquidity to the United States credit scoring; nal principal obligation of a mortgage that housing markets. Therefore, the Congress ‘‘(7) describe any actions taken under sec- may be purchased by the Corporation shall encourages the Federal National Mortgage tion 1325(5) with respect to originators found be the higher of— Association and the Federal Home Loan to violate fair lending procedures; ‘‘(I) the limitation determined under sub- Mortgage Corporation to securitize mort- ‘‘(8) discuss and analyze existing condi- paragraph (A) for a residence of the applica- gages acquired under the increased con- tions and trends, including conditions and ble size; or forming loan limits established by the trends relating to pricing, in the housing ‘‘(II) 125 percent of the area median price amendments made by this section, to the ex- markets and mortgage markets; and for a residence of the applicable size, but in tent that such securitizations can be effected ‘‘(9) identify the extent to which each en- no case to exceed 175 percent of the limita- in a timely and efficient manner that does terprise is involved in mortgage purchases tion determined under subparagraph (A) for not impose additional costs for mortgages and secondary market activities involving a residence of the applicable size. originated, purchased, or securitized under subprime loans (as identified in accordance ‘‘(ii) The areas and area median prices used the existing limits or interfere with the goal with the regulations issued pursuant to sec- for purposes of the determination under this of adding liquidity to the market. tion 334(b) of the Federal Housing Finance subparagraph shall be the areas and area me- (e) EFFECTIVE DATE.—The amendments Reform Act of 2008) and compare the charac- dian prices used by the Secretary of Housing made by this section shall take effect on, teristics of subprime loans purchased and and shall apply beginning on, January 1, and Urban Development in determining the securitized by the enterprises to other loans 2009. applicable limits under section 203(b)(2) of purchased and securitized by the enterprises. the National Housing Act (12 U.S.C. SEC. 334. ANNUAL HOUSING REPORT REGARDING ‘‘(c) DATA COLLECTION AND REPORTING.— REGULATED ENTITIES. 1709(b)(2)). A mortgage that is eligible for ‘‘(1) IN GENERAL.—To assist the Director in (a) IN GENERAL.—The Housing and Commu- purchase by the Corporation at the time the analyzing the matters described in sub- nity Development Act of 1992 is amended by mortgage is originated under this subpara- section (b) and establishing the methodology striking section 1324 (12 U.S.C. 4544) and in- graph shall be eligible for such purchase for described in section 1322, the Director shall serting the following new section: the duration of the term of the mortgage.’’. conduct, on a monthly basis, a survey of (c) HOUSING PRICE INDEX.—Subpart A of ‘‘SEC. 1324. ANNUAL HOUSING REPORT REGARD- mortgage markets in accordance with this ING REGULATED ENTITIES. part 2 of subtitle A of title XIII of the Hous- subsection. ‘‘(a) IN GENERAL.—After reviewing and ana- ing and Community Development Act of 1992 ‘‘(2) DATA POINTS.—Each monthly survey (as amended by the preceding provisions of lyzing the reports submitted under section 309(n) of the Federal National Mortgage As- conducted by the Director under paragraph this title) is amended by inserting after sec- (1) shall collect data on— tion 1321 (as added by the preceding provi- sociation Charter Act, section 307(f) of the Federal Home Loan Mortgage Corporation ‘‘(A) the characteristics of individual sions of this title) the following new section: Act, and section 10(j)(11) of the Federal Home mortgages that are eligible for purchase by ‘‘SEC. 1322. HOUSING PRICE INDEX. Loan Bank Act (12 U.S.C. 1430(j)(11)), the Di- the enterprises and the characteristics of in- ‘‘(a) IN GENERAL.—The Director shall es- rector shall submit a report, not later than dividual mortgages that are not eligible for tablish and maintain a method of assessing October 30 of each year, to the Committee on purchase by the enterprises including, in the national average 1-family house price for Financial Services of the House of Rep- both cases, information concerning— use for adjusting the conforming loan limita- resentatives and the Committee on Banking, ‘‘(i) the price of the house that secures the tions of the enterprises. In establishing such Housing, and Urban Affairs of the Senate, on mortgage; method, the Director shall take into consid- the activities of each regulated entity. ‘‘(ii) the loan-to-value ratio of the mort- eration the monthly survey of all major ‘‘(b) CONTENTS.—The report shall— gage, which shall reflect any secondary liens lenders conducted by the Federal Housing ‘‘(1) discuss the extent to which— on the relevant property; Finance Agency to determine the national ‘‘(A) each enterprise is achieving the an- ‘‘(iii) the terms of the mortgage; average 1-family house price, the House nual housing goals established under subpart ‘‘(iv) the creditworthiness of the borrower Price Index maintained by the Office of Fed- B of this part; or borrowers; and eral Housing Enterprise Oversight of the De- ‘‘(B) each enterprise is complying with sec- ‘‘(v) whether the mortgage, in the case of a partment of Housing and Urban Development tion 1337; conforming mortgage, was purchased by an before the effective date under section 365 of ‘‘(C) each Federal home loan bank is com- enterprise; and the Federal Housing Finance Reform Act of plying with section 10(j) of the Federal Home ‘‘(B) such other matters as the Director de- 2008, any appropriate house price indexes of Loan Bank Act; and termines to be appropriate. the Bureau of the Census of the Department ‘‘(D) each regulated entity is achieving the ‘‘(3) PUBLIC AVAILABILITY.—The Director of Commerce, and any other indexes or meas- purposes of the regulated entity established shall make any data collected by the Direc- ures that the Director considers appropriate. by law; tor in connection with the conduct of a

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00056 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.014 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3245 monthly survey available to the public in a SEC. 336. MORTGAGOR IDENTIFICATION RE- amended by striking sections 1331 through timely manner, provided that the Director QUIREMENTS FOR MORTGAGES OF 1334 (12 U.S.C. 4561–4) and inserting the fol- may modify the data released to the public REGULATED ENTITIES. lowing new sections: (a) IN GENERAL.—Subpart A of part 2 of to ensure that the data is not released in an ‘‘SEC. 1331. ESTABLISHMENT OF HOUSING GOALS. subtitle A of title XIII of the Housing and identifiable form. ‘‘(a) IN GENERAL.—The Director shall es- Community Development Act of 1992 (12 ‘‘(4) DEFINITION.—For purposes of this sub- tablish, effective for the first year that be- U.S.C. 4541 et seq.), as amended by the pre- section, the term ‘identifiable form’ means gins after the effective date under section 365 ceding provisions of this title, is further any representation of information that per- of the Federal Housing Finance Reform Act amended by adding at the end the following mits the identity of a borrower to which the of 2008 and each year thereafter, annual new section: information relates to be reasonably inferred housing goals, with respect to the mortgage by either direct or indirect means.’’. ‘‘SEC. 1330. MORTGAGOR IDENTIFICATION RE- purchases by the enterprises, as follows: QUIREMENTS FOR MORTGAGES OF (b) STANDARDS FOR SUBPRIME LOANS.—The REGULATED ENTITIES. ‘‘(1) SINGLE FAMILY HOUSING GOALS.—Three Director shall, not later than one year after single-family housing goals under section ‘‘(a) LIMITATION.—The Director shall by the effective date under section 365, by regu- regulation establish standards, and shall en- 1332. lations issued under section 1316G of the force compliance with such standards, that— ‘‘(2) MULTIFAMILY SPECIAL AFFORDABLE Housing and Community Development Act of ‘‘(1) prohibit the enterprises from the pur- HOUSING GOALS.—A multifamily special af- 1992, establish standards by which mortgages chase, service, holding, selling, lending on fordable housing goal under section 1333. purchased and mortgages purchased and the security of, or otherwise dealing with ‘‘(b) ELIMINATING INTEREST RATE DISPARI- securitized shall be characterized as any mortgage on a one- to four-family resi- TIES.— subprime for the purpose of, and only for the dence that will be used as the principal resi- ‘‘(1) IN GENERAL.—Upon request by the Di- purpose of, complying with the reporting re- dence of the mortgagor that does not meet rector, an enterprise shall provide to the Di- quirement under section 1324(b)(9) of such the requirements under subsection (b); and rector, in a form determined by the Director, Act. ‘‘(2) prohibit the Federal home loan banks data the Director may review to determine SEC. 335. ANNUAL REPORTS BY REGULATED EN- from providing any advances to a member whether there exist disparities in interest TITIES ON AFFORDABLE HOUSING for use in financing, and from accepting as rates charged on mortgages to borrowers STOCK. collateral for any advance to a member, any who are minorities as compared with com- The Housing and Community Development mortgage on a one- to four-family residence parable mortgages to borrowers of similar Act of 1992 is amended by inserting after sec- that will be used as the principal residence of creditworthiness who are not minorities. tion 1328 (12 U.S.C. 4548) the following new the mortgagor that does not meet the re- ‘‘(2) REMEDIAL ACTIONS UPON PRELIMINARY section: quirements under subsection (b). FINDING.—Upon a preliminary finding by the ‘‘(b) IDENTIFICATION REQUIREMENTS.—The Director that a pattern of disparities in in- ‘‘SEC. 1329. ANNUAL REPORTS ON AFFORDABLE terest rates with respect to any lender or HOUSING STOCK. requirements under this subsection with re- spect to a mortgage are that the mortgagor lenders exists pursuant to the data provided ‘‘(a) IN GENERAL.—To obtain information have, at the time of settlement on the mort- by an enterprise in paragraph (1), the Direc- helpful in applying the formula under sec- tor shall— tion 1337(c)(2) for the affordable housing pro- gage, a Social Security account number.’’. (b) FANNIE MAE.—Section 304 of the Fed- ‘‘(A) refer the preliminary finding to the gram under such section and for other appro- eral National Mortgage Association Charter appropriate regulatory or enforcement agen- priate uses, the regulated entities shall con- Act (12 U.S.C. 1719) is amended by adding at cy for further review; duct, or provide for the conducting of, a the end the following new subsection: ‘‘(B) require the enterprise to submit addi- study on an annual basis to determine the ‘‘(g) PROHIBITION REGARDING MORTGAGOR tional data with respect to any lender or levels of affordable housing inventory, and IDENTIFICATION REQUIREMENT.—Nothing in lenders, as appropriate and to the extent the changes in such levels, in communities this Act may be construed to authorize the practicable, to the Director who shall submit throughout the United States. corporation to purchase, service, hold, sell, any such additional data to the regulatory ‘‘(b) CONTENTS.—The annual study under lend on the security of, or otherwise deal or enforcement agency for appropriate ac- this section shall determine, for the United with any mortgage that the corporation is tion; and States, each State, and each community prohibited from so dealing with under the ‘‘(C) require the enterprise to undertake within each State— standards issued under section 1330 of the remedial actions, as appropriate, pursuant to ‘‘(1) the level of affordable housing inven- Housing and Community Development Act of section 1325(5) (12 U.S.C. 4545(5)). tory, including affordable rental dwelling 1992 by the Director of the Federal Housing ‘‘(3) ANNUAL REPORT TO CONGRESS.—The Di- units and affordable homeownership dwelling Finance Agency.’’. rector shall submit to the Committee on Fi- units; (c) FREDDIE MAC.—Section 305 of the Fed- nancial Services of the House of Representa- ‘‘(2) any changes to the level of such inven- eral Home Loan Mortgage Corporation Act tives and the Committee on Banking, Hous- tory during the 12-month period of the study (12 U.S.C. 1454) is amended by adding at the ing, and Urban Affairs of the Senate a report under this section, including— end the following new subsection: describing the actions taken, and being ‘‘(A) any additions to such inventory, ‘‘(d) PROHIBITION REGARDING MORTGAGOR taken, by the Director to carry out this sub- disaggregated by the category of such addi- IDENTIFICATION REQUIREMENTS.—Nothing in section. No such report shall identify any tions (including new construction or housing this Act may be construed to authorize the lender or lenders who have not been found to conversion); Corporation to purchase, service, hold, sell, have engaged in discriminatory lending prac- ‘‘(B) any subtractions from such inventory, lend on the security of, or otherwise deal tices pursuant to a final adjudication on the disaggregated by the category of such sub- with any mortgage that the Corporation is record, and after opportunity for an adminis- tractions (including abandonment, demoli- prohibited from so dealing with under the trative hearing, in accordance with sub- tion, or upgrade to market-rate housing); standards issued under section 1330 of the chapter II of chapter 5 of title 5, United ‘‘(C) the number of new affordable dwelling Housing and Community Development Act of States Code. units placed in service; and 1992 by the Director of the Federal Housing ‘‘(4) PROTECTION OF IDENTITY OF INDIVID- ‘‘(D) the number of affordable housing Finance Agency.’’. UALS.—In carrying out this subsection, the dwelling units withdrawn from service; (d) FEDERAL HOME LOAN BANKS.—Section Director shall ensure that no property-re- ‘‘(3) the types of financing used to build 10(a) of the Federal Home Loan Bank Act (12 lated or financial information that would en- any dwelling units added to such inventory U.S.C. 1430(a)) is amended— able a borrower to be identified shall be level and the period during which such units (1) by redesignating paragraph (6) as para- made public. are required to remain affordable; graph (7); and ‘‘(c) TIMING.—The Director shall establish ‘‘(4) any excess demand for affordable hous- (2) by inserting after paragraph (5) the fol- an annual deadline by which the Director ing, including the number of households on lowing new paragraph: shall establish the annual housing goals rental housing waiting lists and the tenure ‘‘(6) PROHIBITION REGARDING MORTGAGOR under this subpart for each year, taking into of the wait on such lists; and IDENTIFICATION REQUIREMENTS.—Nothing in consideration the need for the enterprises to ‘‘(5) such other information as the Director this Act may be construed to authorize a reasonably and sufficiently plan their oper- may require. Federal Home Loan Bank to provide any ad- ations and activities in advance, including ‘‘(c) REPORT.—For each annual study con- vance to a member for use in financing, or operations and activities necessary to meet ducted pursuant to this section, the regu- accept as collateral for an advance under such annual goals. lated entities shall submit to the Congress, this section, any mortgage that a Bank is ‘‘SEC. 1332. SINGLE-FAMILY HOUSING GOALS. and make publicly available, a report setting prohibited from so accepting under the ‘‘(a) IN GENERAL.—The Director shall es- forth the findings of the study. standards issued under section 1330 of the tablish annual goals for the purchase by each ‘‘(d) REGULATIONS AND TIMING.—The Direc- Housing and Community Development Act of enterprise of conventional, conforming, sin- tor shall, by regulation, establish require- 1992 by the Director of the Federal Housing gle-family, purchase money mortgages fi- ments for the studies and reports under this Finance Agency.’’. nancing owner-occupied and rental housing section, including deadlines for the submis- SEC. 337. REVISION OF HOUSING GOALS. for each of the following categories of fami- sion of such annual reports and standards for (a) HOUSING GOALS.—The Housing and lies: determining affordable housing.’’. Community Development Act of 1992 is ‘‘(1) Low-income families.

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00057 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.014 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3246 CONGRESSIONAL RECORD — HOUSE May 8, 2008 ‘‘(2) Families that reside in low-income ‘‘(vi) The need to maintain the sound fi- ‘‘(C) the size of the multifamily mortgage areas. nancial condition of the enterprises. market; ‘‘(3) Very low-income families. ‘‘(3) HMDA INFORMATION.—The Director ‘‘(D) the ability of the enterprise to lead ‘‘(b) REFINANCE SUBGOAL.— shall annually obtain information submitted the industry in making mortgage credit ‘‘(1) IN GENERAL.—The Director shall estab- in compliance with the Home Mortgage Dis- available, especially for underserved mar- lish a separate subgoal within each goal closure Act of 1975 regarding conventional, kets, such as for small multifamily projects under subsection (a)(1) for the purchase by conforming, single-family, owner-occupied or of 5 to 50 units, multifamily properties in each enterprise of mortgages for low-income rental, as applicable, purchase money mort- need of rehabilitation, and multifamily prop- families on single family housing given to gages originated and purchased for the pre- erties located in rural areas; and pay off or prepay an existing loan secured by vious year. ‘‘(E) the need to maintain the sound finan- the same property. The Director shall, for ‘‘(4) CONFORMING MORTGAGES.—In deter- cial condition of the enterprise. each year, determine whether each enter- mining whether a mortgage is a conforming ‘‘(b) UNITS FINANCED BY HOUSING FINANCE prise has complied with the subgoal under mortgage for purposes of this paragraph, the AGENCY BONDS.—The Director shall give this subsection in the same manner provided Director shall consider the original principal credit toward the achievement of the multi- under this section for determining compli- balance of the mortgage loan to be the prin- family special affordable housing goal under ance with the housing goals. cipal balance as reported in the information this section (for purposes of section 1336) to ‘‘(2) ENFORCEMENT.—For purposes of sec- referred to in paragraph (3), as rounded to dwelling units in multifamily housing that tion 1336, the subgoal established under para- the nearest thousand dollars. otherwise qualifies under such goal and that graph (1) of this subsection shall be consid- ‘‘(e) NOTICE OF DETERMINATION AND ENTER- is financed by tax-exempt or taxable bonds ered to be a housing goal established under PRISE COMMENT.— issued by a State or local housing finance this section. Such subgoal shall not be en- ‘‘(1) NOTICE.—Within 30 days of making a agency, but only if such bonds— forceable under any other provision of this determination under subsection (c) regarding ‘‘(1) are secured by a guarantee of the en- title (including subpart C of this part) other a compliance of an enterprise for a year with terprise; or than section 1336 or under any provision of a housing goal established under this section ‘‘(2) are not investment grade and are pur- the Federal National Mortgage Association and before any public disclosure thereof, the chased by the enterprise. Charter Act or the Federal Home Loan Mort- Director shall provide notice of the deter- ‘‘(c) USE OF TENANT INCOME OR RENT.—The gage Corporation Act. mination to the enterprise, which shall in- Director shall monitor the performance of ‘‘(c) DETERMINATION OF COMPLIANCE.—The clude an analysis and comparison, by the Di- each enterprise in meeting the goals estab- Director shall determine, for each year that rector, of the performance of the enterprise lished under this section and shall evaluate the housing goals under this section are in for the year and the targets for the year such performance (for purposes of section effect pursuant to section 1331(a), whether under subsection (d). 1336) based on— each enterprise has complied with the single- ‘‘(2) COMMENT PERIOD.—The Director shall ‘‘(1) the income of the prospective or ac- family housing goals established under this provide each enterprise an opportunity to tual tenants of the property, where such data section for such year. An enterprise shall be comment on the determination during the are available; or considered to be in compliance with such a 30-day period beginning upon receipt by the ‘‘(2) where the data referred to in para- goal for a year only if, for each of the types enterprise of the notice. graph (1) are not available, rent levels af- of families described in subsection (a), the ‘‘(f) USE OF BORROWER INCOME.—In moni- fordable to low-income and very low-income percentage of the number of conventional, toring the performance of each enterprise families. conforming, single-family, owner-occupied or pursuant to the housing goals under this sec- A rent level shall be considered to be afford- rental, as applicable, purchase money mort- tion and evaluating such performance (for able for purposes of this subsection for an in- gages purchased by each enterprise in such purposes of section 1336), the Director shall come category referred to in this subsection year that serve such families, meets or ex- consider a mortgagor’s income to be such in- if it does not exceed 30 percent of the max- ceeds the target for the year for such type of come at the time of origination of the mort- imum income level of such income category, family that is established under subsection gage. with appropriate adjustments for unit size as (d). ‘‘(g) CONSIDERATION OF UNITS IN SINGLE- measured by the number of bedrooms. ‘‘(d) ANNUAL TARGETS.— FAMILY RENTAL HOUSING.—In establishing ‘‘(d) DETERMINATION OF COMPLIANCE.—The ‘‘(1) IN GENERAL.—Except as provided in any goal under this subpart, the Director Director shall, for each year that the hous- paragraph (2), for each of the types of fami- may take into consideration the number of ing goal under this section is in effect pursu- lies described in subsection (a), the target housing units financed by any mortgage on ant to section 1331(a), determine whether under this subsection for a year shall be the single-family rental housing purchased by an each enterprise has complied with such goal average percentage, for the three years that enterprise. and the additional requirements under sub- most recently precede such year and for ‘‘SEC. 1333. MULTIFAMILY SPECIAL AFFORDABLE section (a)(2). which information under the Home Mortgage HOUSING GOAL. ‘‘SEC. 1334. DISCRETIONARY ADJUSTMENT OF Disclosure Act of 1975 is publicly available, ‘‘(a) ESTABLISHMENT.— HOUSING GOALS. of the number of conventional, conforming, ‘‘(1) IN GENERAL.—The Director shall estab- ‘‘(a) AUTHORITY.—An enterprise may peti- single-family, owner-occupied or rental, as lish, by regulation, an annual goal for the tion the Director in writing at any time dur- applicable, purchase money mortgages origi- purchase by each enterprise of each of the ing a year to reduce the level of any goal for nated in such year that serves such type of following types of mortgages on multifamily such year established pursuant to this sub- family, as determined by the Director using housing: part. the information obtained and determined ‘‘(A) Mortgages that finance dwelling units ‘‘(b) STANDARD FOR REDUCTION.—The Direc- pursuant to paragraphs (3) and (4). for low-income families. tor may reduce the level for a goal pursuant ‘‘(2) AUTHORITY TO INCREASE TARGETS.— ‘‘(B) Mortgages that finance dwelling units to such a petition only if— ‘‘(A) IN GENERAL.—The Director may, for for very low-income families. ‘‘(1) market and economic conditions or any year, establish by regulation, for any or ‘‘(C) Mortgages that finance dwelling units the financial condition of the enterprise re- all of the types of families described in sub- assisted by the low-income housing tax cred- quire such action; or section (a), percentage targets that are high- it under section 42 of the Internal Revenue ‘‘(2) efforts to meet the goal would result er than the percentages for such year deter- Code of 1986. in the constraint of liquidity, over-invest- mined pursuant to paragraph (1), to reflect ‘‘(2) ADDITIONAL REQUIREMENTS FOR SMALL- ment in certain market segments, or other expected changes in market performance re- ER PROJECTS.—The Director shall establish, consequences contrary to the intent of this lated to such information under the Home within the goal under this section, addi- subpart, or section 301(3) of the Federal Na- Mortgage Disclosure Act of 1975. tional requirements for the purchase by each tional Mortgage Association Charter Act (12 ‘‘(B) FACTORS.—In establishing any targets enterprise of mortgages described in para- U.S.C. 1716(3)) or section 301(3) of the Federal pursuant to subparagraph (A), the Director graph (1) for multifamily housing projects of Home Loan Mortgage Corporation Act (12 shall consider the following factors: a smaller or limited size, which may be U.S.C. 1451 note), as applicable. ‘‘(i) National housing needs. based on the number of dwelling units in the ‘‘(c) DETERMINATION.—The Director shall ‘‘(ii) Economic, housing, and demographic project or the amount of the mortgage, or make a determination regarding any pro- conditions. both, and shall include multifamily housing posed reduction within 30 days of receipt of ‘‘(iii) The performance and effort of the en- projects of such smaller sizes as are typical the petition regarding the reduction. The Di- terprises toward achieving the housing goals among such projects that serve rural areas. rector may extend such period for a single under this section in previous years. ‘‘(3) FACTORS.—In establishing the goal additional 15-day period, but only if the Di- ‘‘(iv) The size of the conventional mort- under this section relating to mortgages on rector requests additional information from gage market serving each of the types of multifamily housing for an enterprise for a the enterprise. A denial by the Director to families described in subsection (a) relative year, the Director shall consider— reduce the level of any goal under this sec- to the size of the overall conventional mort- ‘‘(A) national multifamily mortgage credit tion may be appealed to the United States gage market. needs; District Court for the District of Columbia ‘‘(v) The ability of the enterprise to lead ‘‘(B) the performance and effort of the en- or the United States district court in the ju- the industry in making mortgage credit terprise in making mortgage credit available risdiction in which the headquarters of an available. for multifamily housing in previous years; enterprise is located.’’.

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00058 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.014 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3247

(b) CONFORMING AMENDMENTS.—The Hous- under subsection (a) of this section’’ before ‘‘(c) EVALUATION AND REPORTING OF COM- ing and Community Development Act of 1992 ‘‘, each enterprise shall’’; PLIANCE.— is amended— (B) in paragraph (3), by inserting ‘‘and’’ ‘‘(1) IN GENERAL.—Not later than 6 months (1) in section 1335(a) (12 U.S.C. 4565(a)), in after the semicolon at the end; after the effective date under section 365 of the matter preceding paragraph (1), by strik- (C) in paragraph (4), by striking ‘‘; and’’ the Federal Housing Finance Reform Act of ing ‘‘low- and moderate-income housing and inserting a period; 2008, the Director shall establish a manner goal’’ and all that follows through ‘‘section (D) by striking paragraph (5); and for evaluating whether, and the extent to 1334’’ and inserting ‘‘housing goals estab- (E) by redesignating such subsection as which, the enterprises have complied with lished under this subpart’’; and subsection (b); the duty under subsection (a) to serve under- (2) in section 1336(a)(1) (12 U.S.C. 4566(a)(1)), (4) by inserting before subsection (b) (as so served markets and for rating the extent of by striking ‘‘sections 1332, 1333, and 1334,’’ redesignated by paragraph (3)(E) of this sub- such compliance. Using such method, the Di- and inserting ‘‘this subpart’’. section) the following new subsection: rector shall, for each year, evaluate such (c) DEFINITIONS.—Section 1303 of the Hous- ‘‘(a) DUTY TO SERVE UNDERSERVED MAR- compliance and rate the performance of each ing and Community Development Act of 1992 KETS.— enterprise as to extent of compliance. The (12 U.S.C. 4502), as amended by the preceding ‘‘(1) DUTY.—In accordance with the purpose Director shall include such evaluation and provisions of this title, is further amended— of the enterprises under section 301(3) of the (1) in paragraph (22) (relating to the defini- Federal National Mortgage Association rating for each enterprise for a year in the tion of ‘‘very low-income’’), by striking ‘‘60 Charter Act (12 U.S.C. 1716) and section report for that year submitted pursuant to percent’’ each place such term appears and 301(b)(3) of the Federal Home Loan Mortgage section 1319B(a). inserting ‘‘50 percent’’; Corporation Act (12 U.S.C. 1451 note) to un- ‘‘(2) SEPARATE EVALUATIONS.—In deter- (2) by redesignating paragraphs (19) dertake activities relating to mortgages on mining whether an enterprise has complied through (22) as paragraphs (23) through (26), housing for very low-, low-, and moderate-in- with the duty referred to in paragraph (1), respectively; come families involving a reasonable eco- the Director shall separately evaluate (3) by inserting after paragraph (18) the fol- nomic return that may be less than the re- whether the enterprise has complied with lowing new paragraph: turn earned on other activities, each enter- such duty with respect to each of the under- ‘‘(22) RURAL AREA.—The term ‘rural area’ prise shall have the duty to increase the li- served markets identified in subsection (a), has the meaning given such term in section quidity of mortgage investments and im- taking into consideration— 520 of the Housing Act of 1949 (42 U.S.C. 1490), prove the distribution of investment capital ‘‘(A) the development of loan products and except that such term includes micropolitan available for mortgage financing for under- more flexible underwriting guidelines; areas and tribal trust lands.’’. served markets. ‘‘(B) the extent of outreach to qualified (4) by redesignating paragraphs (13) ‘‘(2) UNDERSERVED MARKETS.—To meet its loan sellers in each of such underserved mar- through (18) as paragraphs (16) through (21), duty under paragraph (1), each enterprise kets; and respectively; shall comply with the following require- ‘‘(C) the volume of loans purchased in each (5) by inserting after paragraph (12) the fol- ments with respect to the following under- of such underserved markets. lowing new paragraph: served markets: ‘‘(3) MANUFACTURED HOUSING MARKET.—In ‘‘(15) LOW-INCOME AREA.—The term ‘low in- ‘‘(A) MANUFACTURED HOUSING.—The enter- determining whether an enterprise has com- come area’ means a census tract or block prise shall lead the industry in developing plied with the duty under subparagraph (A) numbering area in which the median income loan products and flexible underwriting of subsection (a)(2), the Director may con- does not exceed 80 percent of the median in- guidelines to facilitate a secondary market sider loans secured by both real and personal come for the area in which such census tract for mortgages on manufactured homes for property.’’. or block numbering area is located, and, for very low-, low-, and moderate-income fami- (b) ENFORCEMENT.—Subsection (a) of sec- the purposes of section 1332(a)(2), shall in- lies. tion 1336 of the Housing and Community De- clude families having incomes not greater ‘‘(B) AFFORDABLE HOUSING PRESERVATION.— velopment Act of 1992 (12 U.S.C. 4566(a)) is than 100 percent of the area median income The enterprise shall lead the industry in de- who reside in minority census tracts.’’; veloping loan products and flexible under- amended— (6) by redesignating paragraphs (11) and writing guidelines to facilitate a secondary (1) in paragraph (1), by inserting ‘‘and with (12) as paragraphs (13) and (14), respectively; market to preserve housing affordable to the duty under section 1335(a) of each enter- (7) by inserting after paragraph (10) the fol- very low-, low-, and moderate-income fami- prise with respect to underserved markets,’’ lowing new paragraph: lies, including housing projects subsidized before ‘‘as provided in this section’’; and (2) by adding at the end of such subsection, ‘‘(12) EXTREMELY LOW-INCOME.—The term under— ‘extremely low-income’ means— ‘‘(i) the project-based and tenant-based as amended by the preceding provisions of ‘‘(A) in the case of owner-occupied units, rental assistance programs under section 8 of this subtitle, the following new paragraph: income not in excess of 30 percent of the area the United States Housing Act of 1937; ‘‘(4) ENFORCEMENT OF DUTY TO PROVIDE median income; and ‘‘(ii) the program under section 236 of the MORTGAGE CREDIT TO UNDERSERVED MAR- ‘‘(B) in the case of rental units, income not National Housing Act; KETS.—The duty under section 1335(a) of each in excess of 30 percent of the area median in- ‘‘(iii) the below-market interest rate mort- enterprise to serve underserved markets (as come, with adjustments for smaller and larg- gage program under section 221(d)(4) of the determined in accordance with section er families, as determined by the Sec- National Housing Act; 1335(c)) shall be enforceable under this sec- retary.’’; ‘‘(iv) the supportive housing for the elderly tion to the same extent and under the same (8) by redesignating paragraphs (7) through program under section 202 of the Housing provisions that the housing goals established (10) as paragraphs (8) through (11), respec- Act of 1959; under this subpart are enforceable. Such tively; and ‘‘(v) the supportive housing program for duty shall not be enforceable under any (9) by inserting after paragraph (6) the fol- persons with disabilities under section 811 of other provision of this title (including sub- lowing new paragraph: the Cranston-Gonzalez National Affordable part C of this part) other than this section or under any provision of the Federal National ‘‘(7) CONFORMING MORTGAGE.—The term Housing Act; ‘conforming mortgage’ means, with respect ‘‘(vi) the programs under title IV of the Mortgage Association Charter Act or the to an enterprise, a conventional mortgage McKinney-Vento Homeless Assistance Act Federal Home Loan Mortgage Corporation having an original principal obligation that (42 U.S.C. 11361 et seq.), but only permanent Act.’’. does not exceed the dollar limitation, in ef- supportive housing projects subsidized under SEC. 339. MONITORING AND ENFORCING COMPLI- fect at the time of such origination, under, such programs; and ANCE WITH HOUSING GOALS. as applicable— ‘‘(vii) the rural rental housing program (a) ADDITIONAL CREDIT FOR CERTAIN MORT- ‘‘(A) section 302(b)(2) of the Federal Na- under section 515 of the Housing Act of 1949. tional Mortgage Association Charter Act; or ‘‘(C) RURAL AND OTHER UNDERSERVED MAR- GAGES.—Section 1336(a) of the Housing and ‘‘(B) section 305(a)(2) of the Federal Home KETS.—The enterprise shall lead the industry Community Development Act of 1992 (12 Loan Mortgage Corporation Act.’’. in developing loan products and flexible un- U.S.C. 4566(a)) is amended— SEC. 338. DUTY TO SERVE UNDERSERVED MAR- derwriting guidelines to facilitate a sec- (1) in paragraph (2), by inserting ‘‘, except KETS. ondary market for mortgages on housing for as provided in paragraph (4),’’ after ‘‘which’’; (a) ESTABLISHMENT AND EVALUATION OF very low-, low-, and moderate-income fami- and PERFORMANCE.—Section 1335 of the Housing lies in rural areas, and for mortgages for (2) by adding at the end the following new and Community Development Act of 1992 (12 housing for any other underserved market paragraph: U.S.C. 4565) is amended— for very low-, low-, and moderate-income ‘‘(5) ADDITIONAL CREDIT.—The Director (1) in the section heading, by inserting families that the Secretary identifies as shall assign more than 125 percent credit to- ‘‘DUTY TO SERVE UNDERSERVED MAR- lacking adequate credit through conven- ward achievement, under this section, of the KETS AND’’ before ‘‘OTHER’’; tional lending sources. Such underserved housing goals for mortgage purchase activi- (2) by striking subsection (b); markets may be identified by borrower type, ties of the enterprises that comply with the (3) in subsection (a)— market segment, or geographic area.’’; and requirements of such goals and support— (A) in the matter preceding paragraph (1), (5) by adding at the end the following new ‘‘(A) housing that meets energy efficiency by inserting ‘‘and to carry out the duty subsection: or other environmental standards that are

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00059 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.015 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3248 CONGRESSIONAL RECORD — HOUSE May 8, 2008

established by a Federal, State, or local gov- Director requires a housing plan under this ‘‘(2) SUSPENSION OF CONTRIBUTIONS.—The ernmental authority with respect to the geo- section, such a plan’’; and Director shall temporarily suspend the allo- graphic area where the housing is located or (ii) in subparagraph (B), by inserting ‘‘and cation under paragraph (1) by an enterprise are otherwise widely recognized; or changes in its operations’’ after ‘‘improve- to the affordable housing fund upon a finding ‘‘(B) housing that includes a licensed ments’’; by the Director that such allocations— childcare center. (C) in paragraph (3)— ‘‘(A) are contributing, or would contribute, The availability of additional credit under (i) by inserting ‘‘comply with any remedial to the financial instability of the enterprise; this paragraph shall not be used to increase action or’’ before ‘‘submit a housing plan’’; ‘‘(B) are causing, or would cause, the enter- any housing goal, subgoal, or target estab- and prise to be classified as undercapitalized; or lished under this subpart.’’. (ii) by striking ‘‘under subsection (b)(3) ‘‘(C) are preventing, or would prevent, the (b) MONITORING AND ENFORCEMENT.—Sec- that a housing plan is required’’; enterprise from successfully completing a tion 1336 of the Housing and Community De- (D) in paragraph (4), by striking the first capital restoration plan under section 1369C. velopment Act of 1992 (12 U.S.C. 4566) is two sentences and inserting the following: ‘‘(3) 5-YEAR SUNSET AND REPORT.— amended— ‘‘The Director shall review each submission ‘‘(A) SUNSET.—The enterprises shall not be (1) in subsection (b)— by an enterprise, including a housing plan required to make allocations to the afford- (A) in the subsection heading, by inserting submitted under this subsection, and not able housing fund in 2012 or in any year ‘‘PRELIMINARY’’ before ‘‘DETERMINATION’’; later than 30 days after submission, approve thereafter. (B) by striking paragraph (1) and inserting or disapprove the plan or other action. The ‘‘(B) REPORT ON PROGRAM CONTINUANCE.— the following new paragraph: Director may extend the period for approval Not later than June 30, 2011, the Director ‘‘(1) NOTICE.—If the Director preliminarily or disapproval for a single additional 30-day shall submit to the Committee on Financial determines that an enterprise has failed, or period if the Director determines such exten- Services of the House of Representatives and that there is a substantial probability that sion necessary.’’; and the Committee on Banking, Housing, and an enterprise will fail, to meet any housing (E) by adding at the end the following new Urban Affairs of the Senate a report making goal established under this subpart, the Di- paragraph: recommendations on whether the program rector shall provide written notice to the en- ‘‘(7) ADDITIONAL REMEDIES FOR FAILURE TO under this section, including the require- terprise of such a preliminary determina- MEET GOALS.—In addition to ordering a hous- ment for the enterprises to make allocations tion, the reasons for such determination, and ing plan under this section, issuing cease and to the affordable housing fund, should be ex- the information on which the Director based desist orders under section 1341, and ordering tended and on any modifications for the pro- the determination.’’; civil money penalties under section 1345, the gram. (C) in paragraph (2)— Director may seek other actions when an en- ‘‘(4) PROHIBITION OF PASS-THROUGH OF COST (i) in subparagraph (A), by inserting ‘‘fi- terprise fails to meet a goal, and exercise ap- OF ALLOCATIONS.—The Director shall, by reg- nally’’ before ‘‘determining’’; propriate enforcement authority available to ulation, prohibit each enterprise from re- (ii) by striking subparagraphs (B) and (C) the Director under this Act to prohibit the directing such costs, through increased and inserting the following new subpara- enterprise from initially offering any prod- charges or fees, or decreased premiums, or in graph: uct (as such term is defined in section 1321(f)) any other manner, to the originators of ‘‘(B) EXTENSION OR SHORTENING OF PE- mortgages purchased or securitized by the or engaging in any new activities, services, RIOD.—The Director may— enterprise. undertakings, and offerings and to order the ‘‘(i) extend the period under subparagraph ‘‘(c) AFFORDABLE HOUSING NEEDS FOR- enterprise to suspend products and activi- (A) for good cause for not more than 30 addi- MULAS.— ties, services, undertakings, and offerings tional days; and ‘‘(1) ALLOCATION FOR 2008.— pending its achievement of the goal.’’. ‘‘(ii) shorten the period under subpara- ‘‘(A) ALLOCATION PERCENTAGES FOR LOU- graph (A) for good cause.’’; and SEC. 340. AFFORDABLE HOUSING FUND. ISIANA AND MISSISSIPPI.—For purposes of sub- (iii) by redesignating subparagraph (D) as (a) IN GENERAL.—The Housing and Commu- section (d)(1)(A), the allocation percentages subparagraph (C); and nity Development Act of 1992 is amended by for 2008 for the grantees under this section (D) in paragraph (3)— striking sections 1337 and 1338 (12 U.S.C. 4562 for such year shall be as follows: (i) in subparagraph (A), by striking ‘‘deter- note) and inserting the following new sec- ‘‘(i) The allocation percentage for the Lou- mine’’ and inserting ‘‘issue a final deter- tion: isiana Housing Finance Agency shall be 75 mination of’’; ‘‘SEC. 1337. AFFORDABLE HOUSING FUND. percent. (ii) in subparagraph (B), by inserting ‘‘(a) ESTABLISHMENT AND PURPOSE.—The ‘‘(ii) The allocation percentage for the Mis- ‘‘final’’ before ‘‘determinations’’; and Director, in consultation with the Secretary sissippi Development Authority shall be 25 (iii) in subparagraph (C)— of Housing and Urban Development, shall es- percent. (I) by striking ‘‘Committee on Banking, Fi- tablish and manage an affordable housing ‘‘(B) USE IN DISASTER AREAS.—Affordable nance and Urban Affairs’’ and inserting fund in accordance with this section, which housing grant amounts for 2008 shall be used ‘‘Committee on Financial Services’’; and shall be funded with amounts allocated by only as provided in subsection (g) only for (II) by inserting ‘‘final’’ before ‘‘determina- the enterprises under subsection (b). The such eligible activities in areas that were tion’’ each place such term appears; and purpose of the affordable housing fund shall subject to a declaration by the President of (2) in subsection (c)— be to provide formula grants to grantees for a major disaster or emergency under the (A) by striking the subsection designation use— Robert T. Stafford Disaster Relief and Emer- and heading and all that follows through the ‘‘(1) to increase homeownership for ex- gency Assistance Act (42 U.S.C. 5121 et seq.) end of paragraph (1) and inserting the fol- tremely low-and very low-income families; in connection with Hurricane Katrina or lowing: ‘‘(2) to increase investment in housing in Rita of 2005. ‘‘(c) CEASE AND DESIST ORDERS, CIVIL low-income areas, and areas designated as ‘‘(2) ALLOCATION FORMULA FOR OTHER MONEY PENALTIES, AND REMEDIES INCLUDING qualified census tracts or an area of chronic YEARS.—The Secretary of Housing and Urban HOUSING PLANS.— economic distress pursuant to section 143(j) Development shall, by regulation, establish a ‘‘(1) REQUIREMENT.—If the Director finds, of the Internal Revenue Code of 1986 (26 formula to allocate, among the States (as pursuant to subsection (b), that there is a U.S.C. 143(j)); such term is defined in section 1303) and fed- substantial probability that an enterprise ‘‘(3) to increase and preserve the supply of erally recognized Indian tribes, the amounts will fail, or has actually failed, to meet any rental and owner-occupied housing for ex- provided by the enterprises in each year re- housing goal under this subpart and that the tremely low- and very low-income families; ferred to subsection (b)(1), other than 2008, to achievement of the housing goal was or is ‘‘(4) to increase investment in public infra- the affordable housing fund established feasible, the Director may require that the structure development in connection with under this section. The formula shall be enterprise submit a housing plan under this housing assisted under this section; and based on the following factors, with respect subsection. If the Director makes such a ‘‘(5) to leverage investments from other to each State and tribe: finding and the enterprise refuses to submit sources in affordable housing and in public ‘‘(A) The ratio of the population of the such a plan, submits an unacceptable plan, infrastructure development in connection State or federally recognized Indian tribe to fails to comply with the plan or the Director with housing assisted under this section. the aggregate population of all the States finds that the enterprise has failed to meet ‘‘(b) ALLOCATION OF AMOUNTS BY ENTER- and tribes. any housing goal under this subpart, in addi- PRISES.— ‘‘(B) The percentage of families in the tion to requiring an enterprise to submit a ‘‘(1) IN GENERAL.—In accordance with regu- State or federally recognized Indian tribe housing plan, the Director may issue a cease lations issued by the Director under sub- that pay more than 50 percent of their an- and desist order in accordance with section section (m) and subject to paragraph (2) of nual income for housing costs. 1341, impose civil money penalties in accord- this subsection and subsection (i)(5), each en- ‘‘(C) The percentage of persons in the State ance with section 1345, or order other rem- terprise shall allocate to the affordable hous- or federally recognized Indian tribe that are edies as set forth in paragraph (7) of this sub- ing fund established under subsection (a), in members of extremely low- or very low-in- section.’’; each of the years 2008 through 2012, an come families. (B) in paragraph (2)— amount equal to 1.2 basis points for each dol- ‘‘(D) The cost of developing or carrying out (i) by striking ‘‘CONTENTS.—Each housing lar of the average total mortgage portfolio of rehabilitation of housing in the State or for plan’’ and inserting ‘‘HOUSING PLAN.—If the the enterprise during the preceding year. the federally recognized Indian tribe.

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00060 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.015 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3249 ‘‘(E) The percentage of families in the section (j)(1)(B) to be reimbursed or returned tion 1335(a)(2)(B), except that such grant State or federally recognized Indian tribe to the grantee during such year— amounts may be used for the benefit only of that live in substandard housing. ‘‘(i) except as provided in clause (ii)— extremely low- and very low-income fami- ‘‘(F) The percentage of housing stock in ‘‘(I) the amount of the grant for the grant- lies; the State or for the federally recognized In- ee for the succeeding year, as determined ‘‘(2) the production, preservation, and re- dian tribe that is extremely old housing. pursuant to subparagraph (A), shall be re- habilitation of housing for homeownership, ‘‘(G) Any other factors that the Secretary duced by the amount by which such amounts including such forms as downpayment assist- determines to be appropriate. required to be reimbursed or returned exceed ance, closing cost assistance, and assistance ‘‘(3) FAILURE TO ESTABLISH.—If, in any year the amount actually reimbursed or returned; for interest-rate buy-downs, that— referred to in subsection (b)(1), other than and ‘‘(A) is available for purchase only for use 2008, the regulations establishing the for- ‘‘(II) the amount of the grant for the suc- as a principal residence by families that mula required under paragraph (2) of this ceeding year for each other grantee whose qualify both as— subsection have not been issued by the date grant is not reduced pursuant to subclause ‘‘(i) extremely low- and very-low income that the Director determines the amounts (I) shall be increased by the amount deter- families at the times described in subpara- described in subsection (d)(1) to be available mined by applying the formula established graphs (A) through (C) of section 215(b)(2) of for affordable housing fund grants in such pursuant to subsection (c)(2) to the total the Cranston-Gonzalez National Affordable year, for purposes of such year any amounts amount of all reductions for all grantees for Housing Act (42 U.S.C. 12745(b)(2)); and for a State (as such term is defined in sec- such year pursuant to subclause (I); or ‘‘(ii) first-time homebuyers, as such term tion 1303 of this Act) that would otherwise be ‘‘(ii) in any case in which such failure to is defined in section 104 of the Cranston-Gon- determined under subsection (d) by applying obtain reimbursement or return occurs dur- zalez National Affordable Housing Act (42 the formula established pursuant to para- ing a year immediately preceding a year in U.S.C. 12704), except that any reference in graph (2) of this subsection shall be deter- which grants under this subsection will not such section to assistance under title II of mined instead by applying, for such State, be made, the grantee shall pay to the Direc- such Act shall for purposes of this section be the percentage that is equal to the percent- tor for reallocation among the other grant- considered to refer to assistance from afford- age of the total amounts made available for ees an amount equal to the amount of the re- such year for allocation under subtitle A of duction for the grantee that would otherwise able housing fund grant amounts; title II of the Cranston-Gonzalez National apply under clause (i)(I). ‘‘(B) has an initial purchase price that Affordable Housing Act (42 U.S.C. 12741 et ‘‘(e) GRANTEE ALLOCATION PLANS.— meets the requirements of section 215(b)(1) of seq.) that are allocated in such year, pursu- ‘‘(1) IN GENERAL.—For each year that a the Cranston-Gonzalez National Affordable ant to such subtitle, to such State (including grantee receives affordable housing fund Housing Act; any insular area or unit of general local gov- grant amounts, the grantee shall establish ‘‘(C) is subject to the same resale restric- ernment, as such terms are defined in sec- an allocation plan in accordance with this tions established under section 215(b)(3) of tion 104 of such Act (42 U.S.C. 12704), that is subsection, which shall be a plan for the dis- the Cranston-Gonzalez National Affordable treated as a State under section 1303 of this tribution of such grant amounts of the Housing Act and applicable to the partici- Act) and to participating jurisdictions and grantee for such year that— pating jurisdiction that is the State in which other eligible entities within such State. ‘‘(A) is based on priority housing needs, as such housing is located; and ‘‘(d) ALLOCATION OF FORMULA AMOUNT; determined by the grantee in accordance ‘‘(D) is made available for purchase only GRANTS.— with the regulations established under sub- by, or in the case of assistance under this ‘‘(1) FORMULA AMOUNT.—For each year re- section (m)(2)(C); paragraph, is made available only to, home- ferred to in subsection (b)(1), the Director ‘‘(B) complies with subsection (f); and buyers who have, before purchase— shall determine the formula amount under ‘‘(C) includes performance goals, bench- ‘‘(i) completed a program of counseling this section for each grantee, which shall be marks, and timetables for the grantee for with respect to the responsibilities and fi- the amount determined for such grantee— the production, preservation, and rehabilita- nancial management involved in home- ‘‘(A) for 2008, by applying the allocation tion of affordable rental and homeownership ownership that is approved by the Director; percentages under subparagraph (A) of sub- housing with such grant amounts that com- except that the Director may, at the request section (c)(1) to the sum of the total ply with the requirements established by the of a State, waive the requirements of this amounts allocated by the enterprises to the Director pursuant to subsection (m)(2)(F). subparagraph with respect to a geographic affordable housing fund for such year, less ‘‘(2) ESTABLISHMENT.—In establishing an area or areas within the State if: (I) the trav- any amounts used pursuant to subsection allocation plan, a grantee shall notify the el time or distance involved in providing (i)(1); and public of the establishment of the plan, pro- counseling with respect to such area or ‘‘(B) for any other year referred to in sub- vide an opportunity for public comments re- areas, as otherwise required under this sub- section (b)(1) (other than 2008), by applying garding the plan, consider any public com- paragraph, on an in-person basis is excessive the formula established pursuant to para- ments received, and make the completed or the cost of such travel is prohibitive; and graph (2) of subsection (c) to the sum of the plan available to the public. (II) the State provides alternative forms of total amounts allocated by the enterprises ‘‘(3) CONTENTS.—An allocation plan of a counseling for such area or areas, which may to the affordable housing fund for such year grantee shall set forth the requirements for include interactive telephone counseling, on- and any recaptured amounts available pursu- eligible recipients under subsection (h) to line counseling, interactive video counseling, ant to subsection (i)(4), less any amounts apply to the grantee to receive assistance and interactive home study counseling and a used pursuant to subsection (i)(1). from affordable housing fund grant amounts, program of financial literacy and education ‘‘(2) NOTICE.—In each year referred to in including a requirement that each such ap- to promote an understanding of consumer, subsection (b)(1), not later than 60 days after plication include— economic, and personal finance issues and the date that the Director determines the ‘‘(A) a description of the eligible activities concepts, including saving for retirement, amounts described in paragraph (1) to be to be conducted using such assistance; and managing credit, long-term care, and estate available for affordable housing fund grants ‘‘(B) a certification by the eligible recipi- planning and education on predatory lend- to grantees in such year, the Director shall ent applying for such assistance that any ing, identity theft, and financial abuse cause to be published in the Federal Register housing units assisted with such assistance schemes relating to homeownership that is a notice that such amounts shall be so avail- will comply with the requirements under approved by the Director, except that enti- able. this section. ties providing such counseling shall not dis- ‘‘(3) GRANT AMOUNT.— ‘‘(f) SELECTION OF ACTIVITIES FUNDED USING criminate against any particular form of ‘‘(A) IN GENERAL.—For each year referred AFFORDABLE HOUSING FUND GRANT housing; and to in subsection (b)(1), the Director shall AMOUNTS.—Affordable housing fund grant ‘‘(ii) demonstrated, in accordance with reg- make a grant from amounts in the affordable amounts of a grantee may be used, or com- ulations as the Director shall issue setting housing fund to each grantee in an amount mitted for use, only for activities that— forth requirements for sufficient evidence, that is, except as provided in subparagraph ‘‘(1) are eligible under subsection (g) for that they are lawfully present in the United (B), equal to the formula amount under this such use; States; and section for the grantee. A grantee may des- ‘‘(2) comply with the applicable allocation ‘‘(3) public infrastructure development ac- ignate a State housing finance agency, hous- plan under subsection (e) of the grantee; and tivities in connection with housing activities ing and community development entity, ‘‘(3) are selected for funding by the grantee funded under paragraph (1) or (2). tribally designated housing entity (as such in accordance with the process and criteria ‘‘(h) ELIGIBLE RECIPIENTS.—Affordable term is defined in section 4 of the Native for such selection established pursuant to housing fund grant amounts of a grantee American Housing Assistance and Self-De- subsection (m)(2)(C). may be provided only to a recipient that is termination Act of 1997 (25 U.S.C. 4103)) or ‘‘(g) ELIGIBLE ACTIVITIES.—Affordable other qualified instrumentality of the grant- housing fund grant amounts of a grantee an organization, agency, or other entity (in- ee to receive such grant amounts. shall be eligible for use, or for commitment cluding a for-profit entity, a nonprofit enti- ‘‘(B) REDUCTION FOR FAILURE TO OBTAIN RE- for use, only for assistance for— ty, and a faith-based organization) that— TURN OF MISUSED FUNDS.—If in any year a ‘‘(1) the production, preservation, and re- ‘‘(1) has demonstrated experience and ca- grantee fails to obtain reimbursement or re- habilitation of rental housing, including pacity to conduct an eligible activity under turn of the full amount required under sub- housing under the programs identified in sec- (g), as evidenced by its ability to—

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00061 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.015 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3250 CONGRESSIONAL RECORD — HOUSE May 8, 2008 ‘‘(A) own, construct or rehabilitate, man- ‘‘(i) the grantee; or ‘‘(II) any other requirements that the Di- age, and operate an affordable multifamily ‘‘(ii) any recipient of such grant amounts; rector determines are necessary to ensure rental housing development; and appropriate grant administration and com- ‘‘(B) design, construct or rehabilitate, and ‘‘(C) by regulation, limit the amount of pliance. market affordable housing for homeowner- any affordable housing fund grant amounts ‘‘(B) MISUSE OF FUNDS.— ship; of the grantee for a year that may be used ‘‘(i) REIMBURSEMENT REQUIREMENT.—If any ‘‘(C) provide forms of assistance, such as for administrative costs of the grantee of recipient of assistance from affordable hous- downpayments, closing costs, or interest- carrying out the program required under this ing fund grant amounts of a grantee is deter- rate buy-downs, for purchasers; or section to a percentage of such grant mined, in accordance with clause (ii), to ‘‘(D) construct related public infrastruc- amounts of the grantee for such year, which have used any such amounts in a manner ture development activities in connection may not exceed 10 percent. that is materially in violation of this sec- with such housing activities; ‘‘(7) PROHIBITION OF CONSIDERATION OF USE tion, the regulations issued under this sec- ‘‘(2) demonstrates the ability and financial FOR MEETING HOUSING GOALS OR DUTY TO tion, or any requirements or conditions capacity to undertake, comply, and manage SERVE.—In determining compliance with the under which such amounts were provided, the eligible activity; housing goals under this subpart and the the grantee shall require that, within 12 ‘‘(3) demonstrates its familiarly with the duty to serve underserved markets under months after the determination of such mis- requirements of any other Federal, State or section 1335, the Director may not consider use, the recipient shall reimburse the grant- local housing program that will be used in any affordable housing fund grant amounts ee for such misused amounts and return to conjunction with such grant amounts to en- used under this section for eligible activities the grantee any amounts from the affordable sure compliance with all applicable require- under subsection (g). The Director shall give housing fund grant amounts of the grantee ments and regulations of such programs; and credit toward the achievement of such hous- that remain unused or uncommitted for use. ‘‘(4) makes such assurances to the grantee ing goals and such duty to serve underserved The remedies under this clause are in addi- as the Director shall, by regulation, require markets to purchases by the enterprises of tion to any other remedies that may be to ensure that the recipient will comply with mortgages for housing that receives funding the requirements of this section during the available under law. from affordable housing fund grant amounts, ‘‘(ii) DETERMINATION.—A determination is entire period that begins upon selection of but only to the extent that such purchases the recipient to receive such grant amounts made in accordance with this clause if the by the enterprises are funded other than determination is— and ending upon the conclusion of all activi- with such grant amounts. ties under subsection (g) that are engaged in ‘‘(I) made by the Director; or ‘‘(8) ACCEPTABLE IDENTIFICATION REQUIRE- ‘‘(II)(aa) made by the grantee; by the recipient and funded with such grant MENT FOR OCCUPANCY OR ASSISTANCE.— amounts. ‘‘(bb) the grantee provides notification of ‘‘(A) IN GENERAL.—Any assistance provided ‘‘(i) LIMITATIONS ON USE.— the determination to the Director for review, with any affordable housing grant amounts ‘‘(1) REQUIRED AMOUNT FOR REFCORP.—Of in the discretion of the Director, of the de- may not be made available to, or on behalf the aggregate amount allocated pursuant to termination; and of, any individual or household unless the in- subsection (b) in each year to the affordable ‘‘(cc) the Director does not subsequently dividual provides, or, in the case of a house- housing fund, 25 percent shall be used as pro- reverse the determination. hold, all adult members of the household vided in section 21B(f)(2)(E) of the Federal ‘‘(2) GRANTEES.— provide, personal identification in one of the Home Loan Bank Act (12 U.S.C. ‘‘(A) REPORT.— following forms: 1441b(f)(2)(E)). ‘‘(i) IN GENERAL.—The Director shall re- ‘‘(i) SOCIAL SECURITY CARD WITH PHOTO ‘‘(2) REQUIRED AMOUNT FOR HOMEOWNERSHIP quire each grantee receiving affordable hous- IDENTIFICATION CARD OR REAL ID ACT IDENTI- ACTIVITIES.—Of the aggregate amount of af- ing fund grant amounts for a year to submit FICATION.— fordable housing fund grant amounts pro- a report, for such year, to the Director ‘‘(I) A social security card accompanied by vided in each year to a grantee, not less than that— a photo identification card issued by the 10 percent shall be used for activities under ‘‘(I) describes the activities funded under Federal Government or a State Government; paragraph (2) of subsection (g). this section during such year with the af- or ‘‘(3) MAXIMUM AMOUNT FOR PUBLIC INFRA- fordable housing fund grant amounts of the ‘‘(II) A driver’s license or identification STRUCTURE DEVELOPMENT ACTIVITIES IN CON- grantee; and NECTION WITH AFFORDABLE HOUSING ACTIVI- card issued by a State in the case of a State that is in compliance with title II of the ‘‘(II) the manner in which the grantee com- TIES.—Of the aggregate amount of affordable plied during such year with the allocation housing fund grant amounts provided in each REAL ID Act of 2005 (title II of division B of Public Law 109–13; 49 U.S.C. 30301 note). plan established pursuant to subsection (e) year to a grantee, not more than 12.5 percent for the grantee. ‘‘(ii) PASSPORT.—A passport issued by the may be used for activities under paragraph ‘‘(ii) PUBLIC AVAILABILITY.—The Director (3) of subsection (g). United States or a foreign government. ‘‘(iii) USCIS PHOTO IDENTIFICATION CARD.— shall make such reports pursuant to this ‘‘(4) DEADLINE FOR COMMITMENT OR USE.— subparagraph publicly available. Any affordable housing fund grant amounts A photo identification card issued by the ‘‘(B) MISUSE OF FUNDS.—If the Director de- of a grantee shall be used or committed for Secretary of Homeland Security (acting through the Director of the United States termines, after reasonable notice and oppor- use within two years of the date of that such tunity for hearing, that a grantee has failed grant amounts are made available to the Citizenship and Immigration Services). to comply substantially with any provision grantee. The Director shall recapture into ‘‘(B) REGULATIONS.—The Director shall, by of this section and until the Director is sat- the affordable housing fund any such regulation, require that each grantee and re- isfied that there is no longer any such failure amounts not so used or committed for use cipient take such actions as the Director to comply, the Director shall— and allocate such amounts under subsection considers necessary to ensure compliance ‘‘(i) reduce the amount of assistance under (d)(1) in the first year after such recapture. with the requirements of subparagraph (A). this section to the grantee by an amount ‘‘(5) USE OF RETURNS.—The Director shall, ‘‘(j) ACCOUNTABILITY OF RECIPIENTS AND equal to the amount affordable housing fund by regulation provide that any return on a GRANTEES.— grant amounts which were not used in ac- loan or other investment of any affordable ‘‘(1) RECIPIENTS.— cordance with this section; housing fund grant amounts of a grantee ‘‘(A) TRACKING OF FUNDS.—The Director ‘‘(ii) require the grantee to repay the Di- shall be treated, for purposes of availability shall— to and use by the grantee, as affordable ‘‘(i) require each grantee to develop and rector an amount equal to the amount of the housing fund grant amounts. maintain a system to ensure that each re- amount affordable housing fund grant amounts which were not used in accordance ‘‘(6) PROHIBITED USES.—The Director cipient of assistance from affordable housing shall— fund grant amounts of the grantee uses such with this section; ‘‘(A) by regulation, set forth prohibited amounts in accordance with this section, the ‘‘(iii) limit the availability of assistance uses of affordable housing fund grant regulations issued under this section, and under this section to the grantee to activi- amounts, which shall include use for— any requirements or conditions under which ties or recipients not affected by such failure ‘‘(i) political activities; such amounts were provided; and to comply; or ‘‘(ii) advocacy; ‘‘(ii) establish minimum requirements for ‘‘(iv) terminate any assistance under this ‘‘(iii) lobbying, whether directly or agreements, between the grantee and recipi- section to the grantee. through other parties; ents, regarding assistance from the afford- ‘‘(k) CAPITAL REQUIREMENTS.—The utiliza- ‘‘(iv) counseling services; able housing fund grant amounts of the tion or commitment of amounts from the af- ‘‘(v) travel expenses; and grantee, which shall include— fordable housing fund shall not be subject to ‘‘(vi) preparing or providing advice on tax ‘‘(I) appropriate continuing financial and the risk-based capital requirements estab- returns; project reporting, record retention, and lished pursuant to section 1361(a). ‘‘(B) by regulation, provide that, except as audit requirements for the duration of the provided in subparagraph (C), affordable grant to the recipient to ensure compliance ‘‘(l) DEFINITIONS.—For purposes of this sec- housing fund grant amounts of a grantee with the limitations and requirements of tion, the following definitions shall apply: may not be used for administrative, out- this section and the regulations under this ‘‘(1) AFFORDABLE HOUSING FUND GRANT reach, or other costs of— section; and AMOUNTS.—The term ‘affordable housing fund

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00062 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.015 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3251

grant amounts’ means amounts from the af- under subsection (g)(1) are used only for the (2) EFFECTIVE DATE.—This subsection shall fordable housing fund established under sub- benefit of extremely low- and very-low in- take effect on the date of the enactment of section (a) that are provided to a grantee come families; this Act. pursuant to subsection (d)(3). ‘‘(E) limitations on public infrastructure (c) REFCORP PAYMENTS.—Section 21B(f)(2) ‘‘(2) GRANTEE.—The term ‘grantee’ means— development activities that are eligible pur- of the Federal Home Loan Bank Act (12 ‘‘(A) with respect to 2008, the Louisiana suant to subsection (g)(3) for funding with af- U.S.C. 1441b(f)(2)) is amended— Housing Finance Agency and the Mississippi fordable housing fund grant amounts and re- (1) in subparagraph (E), by striking ‘‘and Development Authority; and quirements for the connection between such (D)’’ and inserting ‘‘(D), and (E)’’; ‘‘(B) with respect to the years referred to activities and housing activities funded (2) by redesignating subparagraph (E) as in subsection (b)(1), other than 2008, each under paragraph (1) or (2) of subsection (g); subparagraph (F); and State (as such term is defined in section 1303) and (3) by inserting after subparagraph (D) the and each federally recognized Indian tribe. ‘‘(F) requirements and standards for estab- following new subparagraph: ‘‘(3) RECIPIENT.—The term ‘recipient’ lishment, by grantees (including the grant- ‘‘(E) PAYMENTS BY FANNIE MAE AND FREDDIE means an entity meeting the requirements ees for 2008 pursuant to subsection (l)(2)(A)), MAC.—To the extent that the amounts avail- under subsection (h) that receives assistance of performance goals, benchmarks, and time- able pursuant to subparagraphs (A), (B), (C), from a grantee from affordable housing fund tables for the production, preservation, and and (D) are insufficient to cover the amount grant amounts of the grantee. rehabilitation of affordable rental and home- of interest payments, each enterprise (as ‘‘(4) TOTAL MORTGAGE PORTFOLIO.—The ownership housing with affordable housing such term is defined in section 1303 of the term ‘total mortgage portfolio’ means, with fund grant amounts. Housing and Community Development Act of respect to a year, the sum, for all mortgages ‘‘(n) ENFORCEMENT OF REQUIREMENTS ON 1992 (42 U.S.C. 4502)) shall transfer to the outstanding during that year in any form, ENTERPRISE.—Compliance by the enterprises Funding Corporation in each calendar year including whole loans, mortgage-backed se- with the requirements under this section the amounts allocated for use under this sub- curities, participation certificates, or other shall be enforceable under subpart C. Any paragraph pursuant to section 1337(i)(1) of structured securities backed by mortgages, reference in such subpart to this part or to such Act.’’. of the dollar amount of the unpaid out- an order, rule, or regulation under this part (d) GAO REPORT.—The Comptroller Gen- standing principal balances under such mort- specifically includes this section and any eral shall conduct a study to determine the gages. Such term includes all such mort- order, rule, or regulation under this section. effects that the affordable housing fund es- gages or securitized obligations, whether re- ‘‘(o) AFFORDABLE HOUSING TRUST FUND.—If, tablished under section 1337 of the Housing tained in portfolio, or sold in any form. The after the enactment of the Federal Housing and Community Development Act of 1992, as Director is authorized to promulgate rules Finance Reform Act of 2008, in any year, added by the amendment made by subsection further defining such term as necessary to there is enacted any provision of Federal law (a) of this section, will have on the avail- implement this section and to address mar- establishing an affordable housing trust fund ability and affordability of credit for home- ket developments. other than under this title for use only for buyers, including the effects on such credit ‘‘(5) VERY-LOW INCOME FAMILY.—The term grants to provide affordable rental housing of the requirement under such section 1337(b) ‘very low-income family’ has the meaning and affordable homeownership opportunities, that the Federal National Mortgage Associa- and the subsequent year is a year referred to given such term in section 1303, except that tion and Federal Home Loan Mortgage Cor- in subsection (b)(1), the Director shall in such term includes any family that resides poration make allocations of amounts to such subsequent year and any remaining in a rural area that has an income that does such fund based on the average total mort- years referred to in subsection (b)(1) transfer not exceed the poverty line (as such term is gage portfolios, and the extent to which the to such affordable housing trust fund the ag- defined in section 673(2) of the Omnibus costs of such allocation requirement will be Budget Reconciliation Act of 1981 (42 U.S.C. gregate amount allocated pursuant to sub- section (b) in such year to the affordable borne by such entities or will be passed on to 9902(2)), including any revision required by homebuyers. Not later than the expiration of such section) applicable to a family of the housing fund under this section, less any amounts used pursuant to subsection (i)(1). the 12-month period beginning on the date of size involved. the enactment of this Act, the Comptroller ‘‘(m) REGULATIONS.— For such subsequent and remaining years, General shall submit a report to the Con- ‘‘(1) IN GENERAL.—The Director, in con- the provisions of subsections (c) and (d) shall gress setting forth the results and conclu- sultation with the Secretary of Housing and not apply. Notwithstanding any other provi- sions of such study. This subsection shall Urban Development, shall issue regulations sion of law, assistance provided using take effect on the date of the enactment of to carry out this section. amounts transferred to such affordable hous- this Act. ‘‘(2) REQUIRED CONTENTS.—The regulations ing trust fund pursuant to this subsection issued under this subsection shall include— may not be used for any of the activities SEC. 341. CONSISTENCY WITH MISSION. ‘‘(A) a requirement that the Director en- specified in clauses (i) through (vi) of sub- Subpart B of part 2 of subtitle A of title sure that the program of each grantee for section (i)(6). Nothing in this subsection XIII of the Housing and Community Develop- use of affordable housing fund grant amounts shall be construed to alter the terms and ment Act of 1992 (12 U.S.C. 4561 et seq.) is of the grantee is audited not less than annu- conditions of the affordable housing fund amended by adding after section 1337, as ally to ensure compliance with this section; under this section or to extend the life of added by the preceding provisions of this ‘‘(B) authority for the Director to audit, such fund. title, the following new section: ‘‘(p) FUNDING ACCOUNTABILITY AND TRANS- provide for an audit, or otherwise verify a ‘‘SEC. 1338. CONSISTENCY WITH MISSION. PARENCY.—Any grant under this section to a grantee’s activities, to ensure compliance ‘‘This subpart may not be construed to au- grantee from the affordable housing fund es- with this section; thorize an enterprise to engage in any pro- tablished under subsection (a), any assist- ‘‘(C) requirements for a process for applica- gram or activity that contravenes or is in- ance provided to a recipient by a grantee consistent with the Federal National Mort- tion to, and selection by, each grantee for from affordable housing fund grant amounts, gage Association Charter Act or the Federal activities meeting the grantee’s priority and any grant, award, or other assistance Home Loan Mortgage Corporation Act.’’. housing needs to be funded with affordable from an affordable housing trust fund re- housing fund grant amounts of the grantee, ferred to in subsection (o) shall be considered SEC. 342. ENFORCEMENT. which shall provide for priority in funding to a Federal award for purposes of the Federal (a) CEASE-AND-DESIST PROCEEDINGS.—Sec- be based upon— Funding Accountability and Transparency tion 1341 of the Housing and Community De- ‘‘(i) greatest impact; Act of 2006 (31 U.S.C. 6101 note). Upon the re- velopment Act of 1992 (12 U.S.C. 4581) is ‘‘(ii) geographic diversity; quest of the Director of the Office of Manage- amended— ‘‘(iii) ability to obligate amounts and un- ment and Budget, the Director of the Federal (1) by striking subsection (a) and inserting dertake activities so funded in a timely man- Housing Finance Agency shall obtain and the following new subsection: ner; provide such information regarding any such ‘‘(a) GROUNDS FOR ISSUANCE.—The Director ‘‘(iv) in the case of rental housing projects grants, assistance, and awards as the Direc- may issue and serve a notice of charges under subsection (g)(1), the extent to which tor of the Office of Management and Budget under this section upon an enterprise if the rents for units in the project funded are af- considers necessary to comply with the re- Director determines— fordable, especially for extremely low-in- quirements of such Act, as applicable pursu- ‘‘(1) the enterprise has failed to meet any come families; ant to the preceding sentence.’’. housing goal established under subpart B, ‘‘(v) in the case of rental housing projects (b) TIMELY ESTABLISHMENT OF AFFORDABLE following a written notice and determination under subsection (g)(1), the extent of the du- HOUSING NEEDS FORMULA.— of such failure in accordance with section ration for which such rents will remain af- (1) IN GENERAL.—The Secretary of Housing 1336; fordable; and Urban Development shall, not later than ‘‘(2) the enterprise has failed to submit a ‘‘(vi) the extent to which the application the effective date under section 365 of this report under section 1314, following a notice makes use of other funding sources; and title, issue the regulations establishing the of such failure, an opportunity for comment ‘‘(vii) the merits of an applicant’s proposed affordable housing needs formulas in accord- by the enterprise, and a final determination eligible activity; ance with the provisions of section 1337(c)(2) by the Director; ‘‘(D) requirements to ensure that amounts of the Housing and Community Development ‘‘(3) the enterprise has failed to submit the provided to a grantee from the affordable Act of 1992, as such section is amended by information required under subsection (m) or housing fund that are used for rental housing subsection (a) of this section. (n) of section 309 of the Federal National

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00063 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.015 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3252 CONGRESSIONAL RECORD — HOUSE May 8, 2008 Mortgage Association Charter Act, or sub- ‘‘(2) for any failure described in paragraph ‘‘(A) establish the capital classifications section (e) or (f) of section 307 of the Federal (2), (3), or (4) of subsection (a), $20,000 for specified under paragraph (2) for the Federal Home Loan Mortgage Corporation Act; each day that the failure occurs.’’; home loan banks; ‘‘(4) the enterprise has violated any provi- (2) in subsection (c)— ‘‘(B) establish criteria for each such capital sion of this part or any order, rule or regula- (A) in paragraph (1)— classification based on the amount and types tion under this part; (i) in subparagraph (A), by inserting ‘‘and’’ of capital held by a bank and the risk-based, ‘‘(5) the enterprise has failed to submit a after the semicolon at the end; minimum, and critical capital levels for the housing plan that complies with section (ii) in subparagraph (B), by striking ‘‘; banks and taking due consideration of the 1336(c) within the applicable period; or and’’ and inserting a period; and capital classifications established under sub- ‘‘(6) the enterprise has failed to comply (iii) by striking subparagraph (C); and section (a) for the enterprises, with such with a housing plan under section 1336(c).’’; (B) in paragraph (2), by inserting after the modifications as the Director determines to (2) in subsection (b)(2), by striking ‘‘requir- period at the end the following: ‘‘In deter- be appropriate to reflect the difference in op- ing the enterprise to’’ and all that follows mining the penalty under subsection (a)(1), erations between the banks and the enter- through the end of the paragraph and insert- the Director shall give consideration to the prises; and ing the following: ‘‘requiring the enterprise length of time the enterprise should reason- ‘‘(C) shall classify the Federal home loan to— ably take to achieve the goal.’’; banks according to such capital classifica- ‘‘(A) comply with the goal or goals; (3) in the first sentence of subsection (d)— tions. ‘‘(B) submit a report under section 1314; (A) by striking ‘‘request the Attorney Gen- ‘‘(2) CLASSIFICATIONS.—The capital classi- ‘‘(C) comply with any provision this part eral of the United States to’’ and inserting ‘‘, fications specified under this paragraph are— or any order, rule or regulation under such in the discretion of the Director,’’; and ‘‘(A) adequately capitalized; part; (B) by inserting ‘‘, or request that the At- ‘‘(B) undercapitalized; ‘‘(D) submit a housing plan in compliance torney General of the United States bring ‘‘(C) significantly undercapitalized; and with section 1336(c); such an action’’ before the period at the end; ‘‘(D) critically undercapitalized. ‘‘(E) comply with a housing plan submitted (4) by striking subsection (f); and ‘‘(c) DISCRETIONARY CLASSIFICATION.— under section 1336(c); or (5) by redesignating subsection (g) as sub- ‘‘(1) GROUNDS FOR RECLASSIFICATION.—The ‘‘(F) provide the information required section (f). Director may reclassify a regulated entity under subsection (m) or (n) of section 309 of (d) ENFORCEMENT OF SUBPOENAS.—Section under paragraph (2) if— the Federal National Mortgage Association 1348(c) of the Housing and Community Devel- ‘‘(A) at any time, the Director determines Charter Act or subsection (e) or (f) of section opment Act of 1992 (12 U.S.C. 4588(c)) is in writing that the regulated entity is engag- 307 of the Federal Home Loan Mortgage Cor- amended— ing in conduct that could result in a rapid poration Act, as applicable.’’; (1) by striking ‘‘request the Attorney Gen- depletion of core or total capital or, in the (3) in subsection (c), by inserting ‘‘date of eral of the United States to’’ and inserting ‘‘, case of an enterprise, that the value of the the’’ before ‘‘service of the order’’; and in the discretion of the Director,’’; and property subject to mortgages held or (4) by striking subsection (d). (2) by inserting ‘‘or request that the Attor- securitized by the enterprise has decreased (b) AUTHORITY OF DIRECTOR TO ENFORCE ney General of the United States bring such significantly; NOTICES AND ORDERS.—Section 1344 of the an action,’’ after ‘‘District of Columbia,’’. ‘‘(B) after notice and an opportunity for Housing and Community Development Act of (e) CONFORMING AMENDMENT.—The heading hearing, the Director determines that the 1992 (12 U.S.C. 4584) is amended by striking for subpart C of part 2 of subtitle A of title regulated entity is in an unsafe or unsound subsection (a) and inserting the following XIII of the Housing and Community Develop- condition; or new subsection: ment Act of 1992 is amended to read as fol- ‘‘(C) pursuant to section 1371(b), the Direc- ‘‘(a) ENFORCEMENT.—The Director may, in lows: tor deems the regulated entity to be engag- the discretion of the Director, apply to the ing in an unsafe or unsound practice. United States District Court for the District ‘‘Subpart C—Enforcement’’. ‘‘(2) RECLASSIFICATION.—In addition to any SEC. 343. CONFORMING AMENDMENTS. of Columbia, or the United States district other action authorized under this title, in- court within the jurisdiction of which the Part 2 of subtitle A of title XIII of the cluding the reclassification of a regulated headquarters of the enterprise is located, for Housing and Community Development Act of entity for any reason not specified in this the enforcement of any effective and out- 1992 (12 U.S.C. 4541 et seq.) is amended— subsection, if the Director takes any action standing notice or order issued under section (1) by striking ‘‘Secretary’’ each place such 1341 or 1345, or request that the Attorney term appears in such part and inserting ‘‘Di- described in paragraph (1) the Director may General of the United States bring such an rector’’; classify a regulated entity— action. Such court shall have jurisdiction (2) in the section heading for section 1323 ‘‘(A) as undercapitalized, if the regulated entity is otherwise classified as adequately and power to order and require compliance (12 U.S.C. 4543), by inserting ‘‘of enterprises’’ with such notice or order.’’. before the period at the end; capitalized; (c) CIVIL MONEY PENALTIES.—Section 1345 (3) by striking section 1327 (12 U.S.C. 4547); ‘‘(B) as significantly undercapitalized, if of the Housing and Community Development (4) by striking section 1328 (12 U.S.C. 4548); the regulated entity is otherwise classified Act of 1992 (12 U.S.C. 4585) is amended— (5) by redesignating section 1329 (as amend- as undercapitalized; and (1) by striking subsections (a) and (b) and ed by section 335) as section 1327; ‘‘(C) as critically undercapitalized, if the inserting the following new subsections: (6) in sections 1345(c)(1)(A), 1346(a), and regulated entity is otherwise classified as ‘‘(a) AUTHORITY.—The Director may impose 1346(b) (12 U.S.C. 4585(c)(1)(A), 4586(a), and significantly undercapitalized.’’; and a civil money penalty, in accordance with 4586(b)), by striking ‘‘Secretary’s’’ each place (5) by inserting after subsection (d) (as so the provisions of this section, on any enter- such term appears and inserting ‘‘Direc- redesignated by paragraph (3) of this sub- prise that has failed to— tor’s’’; and section), the following new subsection: ‘‘(e) RESTRICTION ON CAPITAL DISTRIBU- ‘‘(1) meet any housing goal established (7) by striking section 1349 (12 U.S.C. 4589). under subpart B, following a written notice TIONS.— and determination of such failure in accord- CHAPTER 3—PROMPT CORRECTIVE ‘‘(1) IN GENERAL.—A regulated entity shall ance with section 1336(b); ACTION make no capital distribution if, after making ‘‘(2) submit a report under section 1314, fol- SEC. 345. CAPITAL CLASSIFICATIONS. the distribution, the regulated entity would lowing a notice of such failure, an oppor- (a) IN GENERAL.—Section 1364 of the Hous- be undercapitalized. tunity for comment by the enterprise, and a ing and Community Development Act of 1992 ‘‘(2) EXCEPTION.—Notwithstanding para- final determination by the Director; (12 U.S.C. 4614) is amended— graph (1), the Director may permit a regu- ‘‘(3) submit the information required under (1) in the heading for subsection (a), by lated entity, to the extent appropriate or ap- subsection (m) or (n) of section 309 of the striking ‘‘IN GENERAL’’ and inserting ‘‘EN- plicable, to repurchase, redeem, retire, or Federal National Mortgage Association TERPRISES’’. otherwise acquire shares or ownership inter- Charter Act, or subsection (e) or (f) of sec- (2) in subsection (c)— ests if the repurchase, redemption, retire- tion 307 of the Federal Home Loan Mortgage (A) by striking ‘‘subsection (b)’’ and insert- ment, or other acquisition— Corporation Act; ing ‘‘subsection (c)’’; ‘‘(A) is made in connection with the ‘‘(4) comply with any provision of this part (B) by striking ‘‘enterprises’’ and inserting issuance of additional shares or obligations or any order, rule or regulation under this ‘‘regulated entities’’; and of the regulated entity in at least an equiva- part; (C) by striking the last sentence; lent amount; and ‘‘(5) submit a housing plan pursuant to sec- (3) by redesignating subsections (c) (as so ‘‘(B) will reduce the financial obligations tion 1336(c) within the required period; or amended by paragraph (2) of this subsection) of the regulated entity or otherwise improve ‘‘(6) comply with a housing plan for the en- and (d) as subsections (d) and (f), respec- the financial condition of the entity.’’. terprise under section 1336(c). tively; (b) REGULATIONS.—Not later than the expi- ‘‘(b) AMOUNT OF PENALTY.—The amount of (4) by striking subsection (b) and inserting ration of the 180-day period beginning on the the penalty, as determined by the Director, the following new subsections: effective date under section 365, the Director may not exceed— ‘‘(b) FEDERAL HOME LOAN BANKS.— of the Federal Housing Finance Agency shall ‘‘(1) for any failure described in paragraph ‘‘(1) ESTABLISHMENT AND CRITERIA.—For issue regulations to carry out section 1364(b) (1), (5), or (6) of subsection (a), $50,000 for purposes of this subtitle, the Director shall, of the Housing and Community Development each day that the failure occurs; and by regulation— Act of 1992 (as added by paragraph (4) of this

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00064 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.016 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3253

subsection), relating to capital classifica- (2) in subsection (a)(2)(A), by striking ‘‘en- ‘‘(B) SUBSTANTIAL DISSIPATION.—Substan- tions for the Federal home loan banks. terprise’’ the last place such term appears; tial dissipation of assets or earnings due to— SEC. 346. SUPERVISORY ACTIONS APPLICABLE (3) in subsection (b)— ‘‘(i) any violation of any provision of Fed- TO UNDERCAPITALIZED REGULATED (A) in the subsection heading, by striking eral or State law; or ENTITIES. ‘‘DISCRETIONARY SUPERVISORY ACTIONS’’ and ‘‘(ii) any unsafe or unsound practice. Section 1365 of the Housing and Commu- inserting ‘‘SPECIFIC ACTIONS’’. ‘‘(C) UNSAFE OR UNSOUND CONDITION.—An nity Development Act of 1992 (12 U.S.C. 4615) (B) in the matter preceding paragraph (1), unsafe or unsound condition to transact is amended— by striking ‘‘may, at any time, take any’’ business. (1) in the section heading, by striking ‘‘en- and inserting ‘‘shall carry out this section ‘‘(D) CEASE-AND-DESIST ORDERS.—Any will- terprises’’ and inserting ‘‘regulated entities’’; by taking, at any time, one or more’’; ful violation of a cease-and-desist order that (2) in subsection (a)— (C) by redesignating paragraphs (5) and (6) has become final. (A) by redesignating paragraphs (1) and (2) as paragraphs (6) and (7), respectively; ‘‘(E) CONCEALMENT.—Any concealment of as paragraphs (2) and (3), respectively; (D) by inserting after paragraph (4) the fol- the books, papers, records, or assets of the (B) by inserting before paragraph (2), as so lowing new paragraph: regulated entity, or any refusal to submit redesignated by subparagraph (A) of this ‘‘(5) IMPROVEMENT OF MANAGEMENT.—Take the books, papers, records, or affairs of the paragraph, the following paragraph: one or more of the following actions: regulated entity, for inspection to any exam- ‘‘(1) REQUIRED MONITORING.—The Director ‘‘(A) NEW ELECTION OF BOARD.—Order a new iner or to any lawful agent of the Director. shall— election for the board of directors of the reg- ‘‘(F) INABILITY TO MEET OBLIGATIONS.—The ‘‘(A) closely monitor the condition of any ulated entity. regulated entity is likely to be unable to pay regulated entity that is classified as under- ‘‘(B) DISMISSAL OF DIRECTORS OR EXECUTIVE its obligations or meet the demands of its capitalized; OFFICERS.—Require the regulated entity to creditors in the normal course of business. ‘‘(B) closely monitor compliance with the dismiss from office any director or executive ‘‘(G) LOSSES.—The regulated entity has in- capital restoration plan, restrictions, and re- officer who had held office for more than 180 curred or is likely to incur losses that will quirements imposed under this section; and days immediately before the entity became deplete all or substantially all of its capital, ‘‘(C) periodically review the plan, restric- undercapitalized. Dismissal under this sub- and there is no reasonable prospect for the tions, and requirements applicable to the paragraph shall not be construed to be a re- regulated entity to become adequately cap- undercapitalized regulated entity to deter- moval pursuant to the Director’s enforce- italized (as defined in section 1364(a)(1)). ‘‘(H) VIOLATIONS OF LAW.—Any violation of mine whether the plan, restrictions, and re- ment powers provided in section 1377. any law or regulation, or any unsafe or un- quirements are achieving the purpose of this ‘‘(C) EMPLOY QUALIFIED EXECUTIVE OFFI- sound practice or condition that is likely section.’’; and CERS.—Require the regulated entity to em- to— (C) by inserting at the end the following ploy qualified executive officers (who, if the ‘‘(i) cause insolvency or substantial dis- new paragraphs: Director so specifies, shall be subject to ap- sipation of assets or earnings; or ‘‘(4) RESTRICTION OF ASSET GROWTH.—A reg- proval by the Director).’’; and ‘‘(ii) weaken the condition of the regulated ulated entity that is classified as under- (E) by inserting at the end the following entity. capitalized shall not permit its average total new paragraph: ‘‘(I) CONSENT.—The regulated entity, by assets (as such term is defined in section ‘‘(8) OTHER ACTION.—Require the regulated resolution of its board of directors or its entity to take any other action that the Di- 1316(b) during any calendar quarter to exceed shareholders or members, consents to the ap- rector determines will better carry out the its average total assets during the preceding pointment. calendar quarter unless— purpose of this section than any of the ac- ‘‘(J) UNDERCAPITALIZATION.—The regulated tions specified in this paragraph.’’; ‘‘(A) the Director has accepted the capital entity is undercapitalized or significantly (4) by redesignating subsection (c) as sub- restoration plan of the regulated entity; undercapitalized (as defined in section section (d); and ‘‘(B) any increase in total assets is con- 1364(a)(3) or in regulations issued pursuant to (5) by inserting after subsection (b) the fol- sistent with the plan; and section 1364(b), as applicable), and— lowing new subsection: ‘‘(C) the ratio of total capital to assets for ‘‘(i) has no reasonable prospect of becom- the regulated entity increases during the ‘‘(c) RESTRICTION ON COMPENSATION OF EX- ing adequately capitalized; calendar quarter at a rate sufficient to en- ECUTIVE OFFICERS.—A regulated entity that ‘‘(ii) fails to become adequately capital- able the entity to become adequately cap- is classified as significantly undercapitalized ized, as required by— italized within a reasonable time. may not, without prior written approval by ‘‘(I) section 1365(a)(1) with respect to an ‘‘(5) PRIOR APPROVAL OF ACQUISITIONS, NEW the Director— undercapitalized regulated entity; or PRODUCTS, AND NEW ACTIVITIES.—A regulated ‘‘(1) pay any bonus to any executive offi- ‘‘(II) section 1366(a)(1) with respect to a sig- entity that is classified as undercapitalized cer; or nificantly undercapitalized regulated entity; shall not, directly or indirectly, acquire any ‘‘(2) provide compensation to any executive ‘‘(iii) fails to submit a capital restoration interest in any entity or initially offer any officer at a rate exceeding that officer’s av- plan acceptable to the Agency within the new product (as such term is defined in sec- erage rate of compensation (excluding bo- time prescribed under section 1369C; or tion 1321(f)) or engage in any new activity, nuses, stock options, and profit sharing) dur- ‘‘(iv) materially fails to implement a cap- service, undertaking, or offering unless— ing the 12 calendar months preceding the cal- ital restoration plan submitted and accepted ‘‘(A) the Director has accepted the capital endar month in which the regulated entity under section 1369C. restoration plan of the regulated entity, the became undercapitalized.’’. ‘‘(K) CRITICAL UNDERCAPITALIZATION.—The entity is implementing the plan, and the Di- SEC. 348. AUTHORITY OVER CRITICALLY UNDER- regulated entity is critically undercapital- rector determines that the proposed action is CAPITALIZED REGULATED ENTITIES. ized, as defined in section 1364(a)(4) or in reg- consistent with and will further the achieve- (a) IN GENERAL.—Section 1367 of the Hous- ulations issued pursuant to section 1364(b), ment of the plan; or ing and Community Development Act of 1992 as applicable. ‘‘(B) the Director determines that the pro- (12 U.S.C. 4617) is amended to read as follows: ‘‘(L) MONEY LAUNDERING.—The Attorney posed action will further the purpose of this ‘‘SEC. 1367. AUTHORITY OVER CRITICALLY General notifies the Director in writing that section.’’; UNDERCAPITALIZED REGULATED the regulated entity has been found guilty of (3) in the subsection heading for subsection ENTITIES. a criminal offense under section 1956 or 1957 (b), by striking ‘‘FROM UNDERCAPITALIZED TO ‘‘(a) APPOINTMENT OF AGENCY AS CONSER- of title 18, United States Code, or section SIGNIFICANTLY UNDERCAPITALIZED’’; and VATOR OR RECEIVER.— 5322 or 5324 of title 31, United States Code. (4) by striking subsection (c) and inserting ‘‘(1) IN GENERAL.—Notwithstanding any ‘‘(4) MANDATORY RECEIVERSHIP.— the following new subsection: other provision of Federal or State law, if ‘‘(A) IN GENERAL.—The Director shall ap- ‘‘(c) OTHER DISCRETIONARY SAFEGUARDS.— any of the grounds under paragraph (3) exist, point the Agency as receiver for a regulated The Director may take, with respect to a at the discretion of the Director, the Direc- entity if the Director determines, in writing, regulated entity that is classified as under- tor may establish a conservatorship or re- that— capitalized, any of the actions authorized to ceivership, as appropriate, for the purpose of ‘‘(i) the assets of the regulated entity are, be taken under section 1366 with respect to a reorganizing, rehabilitating, or winding up and during the preceding 30 calendar days regulated entity that is classified as signifi- the affairs of a regulated entity. have been, less than the obligations of the cantly undercapitalized, if the Director de- ‘‘(2) APPOINTMENT.—In any conservatorship regulated entity to its creditors and others; termines that such actions are necessary to or receivership established under this sec- or carry out the purpose of this subtitle.’’. tion, the Director shall appoint the Agency ‘‘(ii) the regulated entity is not, and during SEC. 347. SUPERVISORY ACTIONS APPLICABLE as conservator or receiver. the preceding 30 calendar days has not been, TO SIGNIFICANTLY UNDERCAPITAL- ‘‘(3) GROUNDS FOR APPOINTMENT.—The generally paying the debts of the regulated IZED REGULATED ENTITIES. grounds for appointing a conservator or re- entity (other than debts that are the subject Section 1366 of the Housing and Commu- ceiver for a regulated entity are as follows: of a bona fide dispute) as such debts become nity Development Act of 1992 (12 U.S.C. 4616) ‘‘(A) ASSETS INSUFFICIENT FOR OBLIGA- due. is amended— TIONS.—The assets of the regulated entity ‘‘(B) PERIODIC DETERMINATION REQUIRED FOR (1) in the section heading, by striking ‘‘en- are less than the obligations of the regulated CRITICALLY UNDER CAPITALIZED REGULATED terprises’’ and inserting ‘‘regulated entities’’; entity to its creditors and others. ENTITY.—If a regulated entity is critically

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00065 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.016 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3254 CONGRESSIONAL RECORD — HOUSE May 8, 2008 undercapitalized, the Director shall make a ‘‘(iv) preserve and conserve the assets and such incidental powers as shall be necessary determination, in writing, as to whether the property of such regulated entity. to carry out such powers; and regulated entity meets the criteria specified ‘‘(C) FUNCTIONS OF OFFICERS, DIRECTORS, ‘‘(ii) take any action authorized by this in clause (i) or (ii) of subparagraph (A)— AND SHAREHOLDERS OF A REGULATED ENTITY.— section, which the Agency determines is in ‘‘(i) not later than 30 calendar days after The Agency may, by regulation or order, the best interests of the regulated entity or the regulated entity initially becomes criti- provide for the exercise of any function by the Agency. cally undercapitalized; and any stockholder, director, or officer of any ‘‘(3) AUTHORITY OF RECEIVER TO DETERMINE ‘‘(ii) at least once during each succeeding regulated entity for which the Agency has CLAIMS.— 30-calendar day period. been named conservator or receiver. ‘‘(A) IN GENERAL.—The Agency may, as re- ‘‘(C) DETERMINATION NOT REQUIRED IF RE- ‘‘(D) POWERS AS CONSERVATOR.—The Agen- ceiver, determine claims in accordance with CEIVERSHIP ALREADY IN PLACE.—Subpara- cy may, as conservator, take such action as the requirements of this subsection and any graph (B) shall not apply with respect to a may be— regulations prescribed under paragraph (4). regulated entity in any period during which ‘‘(i) necessary to put the regulated entity ‘‘(B) NOTICE REQUIREMENTS.—The receiver, the Agency serves as receiver for the regu- in a sound and solvent condition; and in any case involving the liquidation or lated entity. ‘‘(ii) appropriate to carry on the business winding up of the affairs of a closed regu- ‘‘(D) RECEIVERSHIP TERMINATES CON- of the regulated entity and preserve and con- lated entity, shall— SERVATORSHIP.—The appointment under this serve the assets and property of the regu- ‘‘(i) promptly publish a notice to the credi- section of the Agency as receiver of a regu- lated entity, including, if two or more Fed- tors of the regulated entity to present their claims, together with proof, to the receiver lated entity shall immediately terminate eral home loan banks have been placed in by a date specified in the notice which shall any conservatorship established under this conservatorship contemporaneously, merg- be not less than 90 days after the publication title for the regulated entity. ing two or more such banks into a single of such notice; and ‘‘(5) JUDICIAL REVIEW.— Federal home loan bank. ‘‘(ii) republish such notice approximately 1 ‘‘(A) IN GENERAL.—If the Agency is ap- ‘‘(E) ADDITIONAL POWERS AS RECEIVER.—The month and 2 months, respectively, after the pointed conservator or receiver under this Agency may, as receiver, place the regulated publication under clause (i). section, the regulated entity may, within 30 entity in liquidation and proceed to realize ‘‘(C) MAILING REQUIRED.—The receiver shall days of such appointment, bring an action in upon the assets of the regulated entity, hav- the United States District Court for the judi- mail a notice similar to the notice published ing due regard to the conditions of the hous- under subparagraph (B)(i) at the time of such cial district in which the principal place of ing finance market. business of such regulated entity is located, publication to any creditor shown on the ‘‘(F) ORGANIZATION OF NEW REGULATED EN- books of the regulated entity— or in the United States District Court for the TITIES.—The Agency may, as receiver, orga- District of Columbia, for an order requiring ‘‘(i) at the last address of the creditor ap- nize a successor regulated entity that will pearing in such books; or the Agency to remove itself as conservator operate pursuant to subsection (i). or receiver. ‘‘(ii) upon discovery of the name and ad- ‘‘(G) TRANSFER OF ASSETS AND LIABIL- dress of a claimant not appearing on the ‘‘(B) REVIEW.—Upon the filing of an action ITIES.—The Agency may, as conservator or books of the regulated entity within 30 days under subparagraph (A), the court shall, receiver, transfer any asset or liability of the upon the merits, dismiss such action or di- after the discovery of such name and ad- regulated entity in default without any ap- dress. rect the Agency to remove itself as such con- proval, assignment, or consent with respect ‘‘(4) RULEMAKING AUTHORITY RELATING TO servator or receiver. to such transfer. Any Federal home loan DETERMINATION OF CLAIMS.—Subject to sub- ‘‘(6) DIRECTORS NOT LIABLE FOR ACQUIESCING bank may, with the approval of the Agency, section (c), the Director may prescribe regu- IN APPOINTMENT OF CONSERVATOR OR RE- acquire the assets of any Bank in con- lations regarding the allowance or disallow- CEIVER.—The members of the board of direc- servatorship or receivership, and assume the ance of claims by the receiver and providing tors of a regulated entity shall not be liable liabilities of such Bank. for administrative determination of claims to the shareholders or creditors of the regu- ‘‘(H) PAYMENT OF VALID OBLIGATIONS.—The and review of such determination. lated entity for acquiescing in or consenting Agency, as conservator or receiver, shall, to ‘‘(5) PROCEDURES FOR DETERMINATION OF in good faith to the appointment of the the extent of proceeds realized from the per- CLAIMS.— Agency as conservator or receiver for that formance of contracts or sale of the assets of ‘‘(A) DETERMINATION PERIOD.— regulated entity. a regulated entity, pay all valid obligations ‘‘(i) IN GENERAL.—Before the end of the 180- ‘‘(7) AGENCY NOT SUBJECT TO ANY OTHER of the regulated entity in accordance with day period beginning on the date on which FEDERAL AGENCY.—When acting as conser- the prescriptions and limitations of this sec- any claim against a regulated entity is filed vator or receiver, the Agency shall not be tion. with the Agency as receiver, the Agency subject to the direction or supervision of any ‘‘(I) SUBPOENA AUTHORITY.— shall determine whether to allow or disallow other agency of the United States or any ‘‘(i) IN GENERAL.— the claim and shall notify the claimant of State in the exercise of the rights, powers, ‘‘(I) IN GENERAL.—The Agency may, as con- any determination with respect to such and privileges of the Agency. servator or receiver, and for purposes of car- claim. ‘‘(b) POWERS AND DUTIES OF THE AGENCY AS rying out any power, authority, or duty with ‘‘(ii) EXTENSION OF TIME.—The period de- CONSERVATOR OR RECEIVER.— respect to a regulated entity (including de- scribed in clause (i) may be extended by a ‘‘(1) RULEMAKING AUTHORITY OF THE AGEN- termining any claim against the regulated written agreement between the claimant and CY.—The Agency may prescribe such regula- entity and determining and realizing upon the Agency. tions as the Agency determines to be appro- any asset of any person in the course of col- ‘‘(iii) MAILING OF NOTICE SUFFICIENT.—The priate regarding the conduct of lecting money due the regulated entity), ex- notification requirements of clause (i) shall conservatorships or receiverships. ercise any power established under section be deemed to be satisfied if the notice of any ‘‘(2) GENERAL POWERS.— 1348. determination with respect to any claim is ‘‘(A) SUCCESSOR TO REGULATED ENTITY.— ‘‘(II) APPLICABILITY OF LAW.—The provi- mailed to the last address of the claimant The Agency shall, as conservator or receiver, sions of section 1348 shall apply with respect which appears— and by operation of law, immediately suc- to the exercise of any power exercised under ‘‘(I) on the books of the regulated entity; ceed to— this subparagraph in the same manner as ‘‘(II) in the claim filed by the claimant; or ‘‘(i) all rights, titles, powers, and privileges such provisions apply under that section. ‘‘(III) in documents submitted in proof of of the regulated entity, and of any stock- ‘‘(ii) AUTHORITY OF DIRECTOR.—A subpoena the claim. holder, officer, or director of such regulated or subpoena duces tecum may be issued ‘‘(iv) CONTENTS OF NOTICE OF DISALLOW- entity with respect to the regulated entity under clause (i) only by, or with the written ANCE.—If any claim filed under clause (i) is and the assets of the regulated entity; and approval of, the Director, or the designee of disallowed, the notice to the claimant shall ‘‘(ii) title to the books, records, and assets the Director. contain— of any other legal custodian of such regu- ‘‘(iii) RULE OF CONSTRUCTION.—This sub- ‘‘(I) a statement of each reason for the dis- lated entity. section shall not be construed to limit any allowance; and ‘‘(B) OPERATE THE REGULATED ENTITY.—The rights that the Agency, in any capacity, ‘‘(II) the procedures available for obtaining Agency may, as conservator or receiver— might otherwise have under section 1317 or agency review of the determination to dis- ‘‘(i) take over the assets of and operate the 1379D. allow the claim or judicial determination of regulated entity with all the powers of the ‘‘(J) CONTRACTING FOR SERVICES.—The the claim. shareholders, the directors, and the officers Agency may, as conservator or receiver, pro- ‘‘(B) ALLOWANCE OF PROVEN CLAIM.—The re- of the regulated entity and conduct all busi- vide by contract for the carrying out of any ceiver shall allow any claim received on or ness of the regulated entity; of its functions, activities, actions, or duties before the date specified in the notice pub- ‘‘(ii) collect all obligations and money due as conservator or receiver. lished under paragraph (3)(B)(i), or the date the regulated entity; ‘‘(K) INCIDENTAL POWERS.—The Agency specified in the notice required under para- ‘‘(iii) perform all functions of the regulated may, as conservator or receiver— graph (3)(C), which is proved to the satisfac- entity in the name of the regulated entity ‘‘(i) exercise all powers and authorities tion of the receiver. which are consistent with the appointment specifically granted to conservators or re- ‘‘(C) DISALLOWANCE OF CLAIMS FILED AFTER as conservator or receiver; and ceivers, respectively, under this section, and END OF FILING PERIOD.—Claims filed after the

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00066 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.016 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3255

date specified in the notice published under ‘‘(ii) CRITERIA.—In establishing alternative regulated entity, pay creditor claims, in paragraph (3)(B)(i), or the date specified dispute resolution processes, the Agency such manner and amounts as are authorized under paragraph (3)(C), shall be disallowed shall strive for procedures which are expedi- under this section, which are— and such disallowance shall be final. tious, fair, independent, and low cost. ‘‘(i) allowed by the receiver; ‘‘(D) AUTHORITY TO DISALLOW CLAIMS.— ‘‘(iii) VOLUNTARY BINDING OR NONBINDING ‘‘(ii) approved by the Agency pursuant to a ‘‘(i) IN GENERAL.—The receiver may dis- PROCEDURES.—The Agency may establish final determination pursuant to paragraph allow any portion of any claim by a creditor both binding and nonbinding processes, (7) or (8); or or claim of security, preference, or priority which may be conducted by any government ‘‘(iii) determined by the final judgment of which is not proved to the satisfaction of the or private party. All parties, including the any court of competent jurisdiction. receiver. claimant and the Agency, must agree to the ‘‘(B) AGREEMENTS AGAINST THE INTEREST OF ‘‘(ii) PAYMENTS TO LESS THAN FULLY SE- use of the process in a particular case. THE AGENCY.—No agreement that tends to di- CURED CREDITORS.—In the case of a claim of ‘‘(B) CONSIDERATION OF INCENTIVES.—The minish or defeat the interest of the Agency a creditor against a regulated entity which Agency shall seek to develop incentives for is secured by any property or other asset of claimants to participate in the alternative in any asset acquired by the Agency as re- such regulated entity, the receiver— dispute resolution process. ceiver under this section shall be valid ‘‘(I) may treat the portion of such claim ‘‘(8) EXPEDITED DETERMINATION OF against the Agency unless such agreement is which exceeds an amount equal to the fair CLAIMS.— in writing, and executed by an authorized of- market value of such property or other asset ‘‘(A) ESTABLISHMENT REQUIRED.—The Agen- ficial of the regulated entity, except that as an unsecured claim against the regulated cy shall establish a procedure for expedited such requirements for qualified financial entity; and relief outside of the routine claims process contracts shall be applied in a manner con- ‘‘(II) may not make any payment with re- established under paragraph (5) for claimants sistent with reasonable business trading spect to such unsecured portion of the claim who— practices in the financial contracts market. other than in connection with the disposi- ‘‘(i) allege the existence of legally valid ‘‘(C) PAYMENT OF DIVIDENDS ON CLAIMS.— tion of all claims of unsecured creditors of and enforceable or perfected security inter- The receiver may, in the sole discretion of the regulated entity. ests in assets of any regulated entity for the receiver, pay from the assets of the regu- ‘‘(iii) EXCEPTIONS.—No provision of this which the Agency has been appointed re- lated entity dividends on proved claims at paragraph shall apply with respect to any ex- ceiver; and any time, and no liability shall attach to the tension of credit from any Federal Reserve ‘‘(ii) allege that irreparable injury will Agency, by reason of any such payment, for Bank, Federal home loan bank, or the Treas- occur if the routine claims procedure is fol- failure to pay dividends to a claimant whose ury of the United States. lowed. claim is not proved at the time of any such ‘‘(E) NO JUDICIAL REVIEW OF DETERMINATION ‘‘(B) DETERMINATION PERIOD.—Before the payment. PURSUANT TO SUBPARAGRAPH (d).—No court end of the 90-day period beginning on the ‘‘(D) RULEMAKING AUTHORITY OF THE DIREC- may review the determination of the Agency date any claim is filed in accordance with TOR.—The Director may prescribe such rules, under subparagraph (D) to disallow a claim. the procedures established under subpara- including definitions of terms, as the Direc- This subparagraph shall not affect the au- graph (A), the Director shall— tor deems appropriate to establish a single thority of a claimant to obtain de novo judi- ‘‘(i) determine— uniform interest rate for, or to make pay- cial review of a claim pursuant to paragraph ‘‘(I) whether to allow or disallow such ments of post-insolvency interest to credi- (6). claim; or tors holding proven claims against the re- ‘‘(F) LEGAL EFFECT OF FILING.— ‘‘(II) whether such claim should be deter- ceivership estates of regulated entities fol- ‘‘(i) STATUTE OF LIMITATION TOLLED.—For mined pursuant to the procedures estab- purposes of any applicable statute of limita- lished under paragraph (5); and lowing satisfaction by the receiver of the tions, the filing of a claim with the receiver ‘‘(ii) notify the claimant of the determina- principal amount of all creditor claims. shall constitute a commencement of an ac- tion, and if the claim is disallowed, provide ‘‘(10) SUSPENSION OF LEGAL ACTIONS.— tion. a statement of each reason for the disallow- ‘‘(A) IN GENERAL.—After the appointment ‘‘(ii) NO PREJUDICE TO OTHER ACTIONS.—Sub- ance and the procedure for obtaining agency of a conservator or receiver for a regulated ject to paragraph (10), the filing of a claim review or judicial determination. entity, the conservator or receiver may, in with the receiver shall not prejudice any ‘‘(C) PERIOD FOR FILING OR RENEWING any judicial action or proceeding to which right of the claimant to continue any action SUIT.—Any claimant who files a request for such regulated entity is or becomes a party, which was filed before the date of the ap- expedited relief shall be permitted to file a request a stay for a period not to exceed— pointment of the receiver, subject to the de- suit, or to continue a suit filed before the ap- ‘‘(i) 45 days, in the case of any conservator; termination of claims by the receiver. pointment of the receiver, seeking a deter- and ‘‘(6) PROVISION FOR JUDICIAL DETERMINATION mination of the rights of the claimant with ‘‘(ii) 90 days, in the case of any receiver. OF CLAIMS.— respect to such security interest after the ‘‘(B) GRANT OF STAY BY ALL COURTS RE- ‘‘(A) IN GENERAL.—The claimant may file earlier of— QUIRED.—Upon receipt of a request by any suit on a claim (or continue an action com- ‘‘(i) the end of the 90-day period beginning conservator or receiver under subparagraph menced before the appointment of the re- on the date of the filing of a request for expe- (A) for a stay of any judicial action or pro- ceiver) in the district or territorial court of dited relief; or ceeding in any court with jurisdiction of the United States for the district within ‘‘(ii) the date the Agency denies the claim. such action or proceeding, the court shall which the principal place of business of the ‘‘(D) STATUTE OF LIMITATIONS.—If an action grant such stay as to all parties. regulated entity is located or the United described under subparagraph (C) is not filed, ‘‘(11) ADDITIONAL RIGHTS AND DUTIES.— States District Court for the District of Co- or the motion to renew a previously filed ‘‘(A) PRIOR FINAL ADJUDICATION.—The lumbia (and such court shall have jurisdic- suit is not made, before the end of the 30-day Agency shall abide by any final unappealable tion to hear such claim), before the end of period beginning on the date on which such judgment of any court of competent jurisdic- the 60-day period beginning on the earlier action or motion may be filed under subpara- tion which was rendered before the appoint- of— graph (B), the claim shall be deemed to be ment of the Agency as conservator or re- ‘‘(i) the end of the period described in para- disallowed as of the end of such period (other ceiver. graph (5)(A)(i) with respect to any claim than any portion of such claim which was al- ‘‘(B) RIGHTS AND REMEDIES OF CONSERVATOR against a regulated entity for which the lowed by the receiver), such disallowance OR RECEIVER.—In the event of any appealable Agency is receiver; or shall be final, and the claimant shall have no judgment, the Agency as conservator or re- ‘‘(ii) the date of any notice of disallowance further rights or remedies with respect to of such claim pursuant to paragraph (5)(A)(i). such claim. ceiver shall— ‘‘(i) have all the rights and remedies avail- ‘‘(B) STATUTE OF LIMITATIONS.—A claim ‘‘(E) LEGAL EFFECT OF FILING.— able to the regulated entity (before the ap- shall be deemed to be disallowed (other than ‘‘(i) STATUTE OF LIMITATION TOLLED.—For any portion of such claim which was allowed purposes of any applicable statute of limita- pointment of such conservator or receiver) by the receiver), and such disallowance shall tions, the filing of a claim with the receiver and the Agency, including removal to Fed- be final, and the claimant shall have no fur- shall constitute a commencement of an ac- eral court and all appellate rights; and ther rights or remedies with respect to such tion. ‘‘(ii) not be required to post any bond in claim, if the claimant fails, before the end of ‘‘(ii) NO PREJUDICE TO OTHER ACTIONS.—Sub- order to pursue such remedies. the 60-day period described under subpara- ject to paragraph (10), the filing of a claim ‘‘(C) NO ATTACHMENT OR EXECUTION.—No at- graph (A), to file suit on such claim (or con- with the receiver shall not prejudice any tachment or execution may issue by any tinue an action commenced before the ap- right of the claimant to continue any action court upon assets in the possession of the re- pointment of the receiver). that was filed before the appointment of the ceiver. ‘‘(7) REVIEW OF CLAIMS.— receiver, subject to the determination of ‘‘(D) LIMITATION ON JUDICIAL REVIEW.—Ex- ‘‘(A) OTHER REVIEW PROCEDURES.— claims by the receiver. cept as otherwise provided in this sub- ‘‘(i) IN GENERAL.—The Agency shall estab- ‘‘(9) PAYMENT OF CLAIMS.— section, no court shall have jurisdiction lish such alternative dispute resolution proc- ‘‘(A) IN GENERAL.—The receiver may, in the over— esses as may be appropriate for the resolu- discretion of the receiver, and to the extent ‘‘(i) any claim or action for payment from, tion of claims filed under paragraph (5)(A)(i). funds are available from the assets of the or any action seeking a determination of

VerDate Aug 31 2005 03:48 May 09, 2008 Jkt 069060 PO 00000 Frm 00067 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.016 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3256 CONGRESSIONAL RECORD — HOUSE May 8, 2008

rights with respect to, the assets of any reg- ‘‘(C) AVAILABILITY OF REPORTS.—Any re- ‘‘(B) NO LIMITATION OF POWER.—Nothing in ulated entity for which the Agency has been port prepared under subparagraph (B) shall this paragraph shall be construed to limit appointed receiver; or be made available by the Agency upon re- the power of a receiver or conservator to ex- ‘‘(ii) any claim relating to any act or omis- quest to any shareholder of a regulated enti- ercise any rights under contract or law, in- sion of such regulated entity or the Agency ty or any member of the public. cluding to terminate, breach, cancel, or oth- as receiver. ‘‘(D) RECORDKEEPING REQUIREMENT.—After erwise discontinue such agreement. ‘‘(E) DISPOSITION OF ASSETS.—In exercising the end of the 6-year period beginning on the ‘‘(19) GENERAL EXCEPTIONS.— any right, power, privilege, or authority as date that the conservatorship or receivership ‘‘(A) LIMITATIONS.—The rights of a conser- conservator or receiver in connection with is terminated by the Director, the Agency vator or receiver appointed under this sec- any sale or disposition of assets of a regu- may destroy any records of such regulated tion shall be subject to the limitations on lated entity for which the Agency has been entity which the Agency, in the discretion of the powers of a receiver under sections 402 appointed conservator or receiver, the Agen- the Agency, determines to be unnecessary through 407 of the Federal Deposit Insurance cy shall conduct its operations in a manner unless directed not to do so by a court of Corporation Improvement Act of 1991 (12 which maintains stability in the housing fi- competent jurisdiction or governmental U.S.C. 4402 through 4407). nance markets and, to the extent consistent agency, or prohibited by law. ‘‘(B) MORTGAGES HELD IN TRUST.— with that goal— ‘‘(15) FRAUDULENT TRANSFERS.— ‘‘(i) IN GENERAL.—Any mortgage, pool of ‘‘(i) maximizes the net present value re- ‘‘(A) IN GENERAL.—The Agency, as conser- mortgages, or interest in a pool of mort- turn from the sale or disposition of such as- vator or receiver, may avoid a transfer of gages, held in trust, custodial, or agency ca- sets; any interest of a regulated entity-affiliated pacity by a regulated entity for the benefit ‘‘(ii) minimizes the amount of any loss re- party, or any person who the conservator or of persons other than the regulated entity alized in the resolution of cases; and receiver determines is a debtor of the regu- shall not be available to satisfy the claims of ‘‘(iii) ensures adequate competition and lated entity, in property, or any obligation creditors generally. fair and consistent treatment of offerors. incurred by such party or person, that was ‘‘(ii) HOLDING OF MORTGAGES.—Any mort- ‘‘(12) STATUTE OF LIMITATIONS FOR ACTIONS made within 5 years of the date on which the gage, pool of mortgages, or interest in a pool BROUGHT BY CONSERVATOR OR RECEIVER.— Agency was appointed conservator or re- of mortgages, described under clause (i) shall ‘‘(A) IN GENERAL.—Notwithstanding any ceiver, if such party or person voluntarily or be held by the conservator or receiver ap- provision of any contract, the applicable involuntarily made such transfer or incurred pointed under this section for the beneficial statute of limitations with regard to any ac- such liability with the intent to hinder, owners of such mortgage, pool of mortgages, tion brought by the Agency as conservator delay, or defraud the regulated entity, the or interest in a pool of mortgages in accord- or receiver shall be— Agency, the conservator, or receiver. ance with the terms of the agreement cre- ‘‘(i) in the case of any contract claim, the ‘‘(B) RIGHT OF RECOVERY.—To the extent a ating such trust, custodial, or other agency longer of— transfer is avoided under subparagraph (A), arrangement. ‘‘(I) the 6-year period beginning on the date the conservator or receiver may recover, for ‘‘(iii) LIABILITY OF RECEIVER.—The liability the claim accrues; or the benefit of the regulated entity, the prop- of a receiver appointed under this section for ‘‘(II) the period applicable under State law; erty transferred, or, if a court so orders, the damages shall, in the case of any contingent and value of such property (at the time of such or unliquidated claim relating to the mort- ‘‘(ii) in the case of any tort claim, the transfer) from— gages held in trust, be estimated in accord- longer of— ‘‘(i) the initial transferee of such transfer ance set forth in the regulations of the Di- ‘‘(I) the 3-year period beginning on the date or the regulated entity-affiliated party or rector. the claim accrues; or person for whose benefit such transfer was ‘‘(c) PRIORITY OF EXPENSES AND UNSECURED ‘‘(II) the period applicable under State law. made; or CLAIMS.— ‘‘(B) DETERMINATION OF THE DATE ON WHICH ‘‘(ii) any immediate or mediate transferee ‘‘(1) IN GENERAL.—Unsecured claims A CLAIM ACCRUES.—For purposes of subpara- of any such initial transferee. against a regulated entity, or a receiver, graph (A), the date on which the statute of ‘‘(C) RIGHTS OF TRANSFEREE OR OBLIGEE.— that are proven to the satisfaction of the re- limitations begins to run on any claim de- The conservator or receiver may not recover ceiver shall have priority in the following scribed in such subparagraph shall be the under subparagraph (B) from— order: later of— ‘‘(i) any transferee that takes for value, in- ‘‘(A) Administrative expenses of the re- ‘‘(i) the date of the appointment of the cluding satisfaction or securing of a present ceiver. Agency as conservator or receiver; or or antecedent debt, in good faith; or ‘‘(B) Any other general or senior liability ‘‘(ii) the date on which the cause of action ‘‘(ii) any immediate or mediate good faith of the regulated entity and claims of other accrues. transferee of such transferee. Federal home loan banks arising from their ‘‘(13) REVIVAL OF EXPIRED STATE CAUSES OF ‘‘(D) RIGHTS UNDER THIS PARAGRAPH.—The payment obligations (including joint and ACTION.— rights under this paragraph of the conser- several payment obligations). ‘‘(A) IN GENERAL.—In the case of any tort vator or receiver described under subpara- ‘‘(C) Any obligation subordinated to gen- claim described under subparagraph (B) for graph (A) shall be superior to any rights of a eral creditors. which the statute of limitations applicable trustee or any other party (other than any ‘‘(D) Any obligation to shareholders or under State law with respect to such claim party which is a Federal agency) under title members arising as a result of their status as has expired not more than 5 years before the 11, United States Code. shareholder or members. appointment of the Agency as conservator or ‘‘(16) ATTACHMENT OF ASSETS AND OTHER IN- ‘‘(2) CREDITORS SIMILARLY SITUATED.—All receiver, the Agency may bring an action as JUNCTIVE RELIEF.—Subject to paragraph (17), creditors that are similarly situated under conservator or receiver on such claim with- any court of competent jurisdiction may, at paragraph (1) shall be treated in a similar out regard to the expiration of the statute of the request of the conservator or receiver, manner, except that the Agency may make limitation applicable under State law. issue an order in accordance with Rule 65 of such other payments to creditors necessary ‘‘(B) CLAIMS DESCRIBED.—A tort claim re- the Federal Rules of Civil Procedure, includ- to maximize the present value return from ferred to under subparagraph (A) is a claim ing an order placing the assets of any person the sale or disposition or such regulated en- arising from fraud, intentional misconduct designated by the Agency or such conser- tity’s assets or to minimize the amount of resulting in unjust enrichment, or inten- vator under the control of the court, and ap- any loss realized in the resolution of cases so tional misconduct resulting in substantial pointing a trustee to hold such assets. long as all creditors similarly situated re- loss to the regulated entity. ‘‘(17) STANDARDS OF PROOF.—Rule 65 of the ceive not less than the amount provided ‘‘(14) ACCOUNTING AND RECORDKEEPING RE- Federal Rules of Civil Procedure shall apply under subsection (e)(2). QUIREMENTS.— with respect to any proceeding under para- ‘‘(3) DEFINITION.—The term ‘administrative ‘‘(A) IN GENERAL.—The Agency as conser- graph (16) without regard to the requirement expenses of the receiver’ shall include the ac- vator or receiver shall, consistent with the of such rule that the applicant show that the tual, necessary costs and expenses incurred accounting and reporting practices and pro- injury, loss, or damage is irreparable and im- by the receiver in preserving the assets of cedures established by the Agency, maintain mediate. the regulated entity or liquidating or other- a full accounting of each conservatorship ‘‘(18) TREATMENT OF CLAIMS ARISING FROM wise resolving the affairs of the regulated en- and receivership or other disposition of a BREACH OF CONTRACTS EXECUTED BY THE RE- tity. Such expenses shall include obligations regulated entity in default. CEIVER OR CONSERVATOR.— that are incurred by the receiver after ap- ‘‘(B) ANNUAL ACCOUNTING OR REPORT.—With ‘‘(A) IN GENERAL.—Notwithstanding any pointment as receiver that the Director de- respect to each conservatorship or receiver- other provision of this subsection, any final termines are necessary and appropriate to ship, the Agency shall make an annual ac- and unappealable judgment for monetary facilitate the smooth and orderly liquidation counting or report available to the Board, damages entered against a receiver or con- or other resolution of the regulated entity. the Comptroller General of the United servator for the breach of an agreement exe- ‘‘(d) PROVISIONS RELATING TO CONTRACTS States, the Committee on Banking, Housing, cuted or approved in writing by such receiver ENTERED INTO BEFORE APPOINTMENT OF CON- and Urban Affairs of the Senate, and the or conservator after the date of its appoint- SERVATOR OR RECEIVER.— Committee on Financial Services of the ment, shall be paid as an administrative ex- ‘‘(1) AUTHORITY TO REPUDIATE CONTRACTS.— House of Representatives. pense of the receiver or conservator. In addition to any other rights a conservator

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00068 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.017 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3257

or receiver may have, the conservator or re- sor and the lessee is not, as of the date of ‘‘(A) SERVICES PERFORMED BEFORE APPOINT- ceiver for any regulated entity may dis- such repudiation, in default, the lessee under MENT.—In the case of any contract for serv- affirm or repudiate any contract or lease— such lease may either— ices between any person and any regulated ‘‘(A) to which such regulated entity is a ‘‘(i) treat the lease as terminated by such entity for which the Agency has been ap- party; repudiation; or pointed conservator or receiver, any claim of ‘‘(B) the performance of which the conser- ‘‘(ii) remain in possession of the leasehold such person for services performed before the vator or receiver, in its sole discretion, de- interest for the balance of the term of the appointment of the conservator or the re- termines to be burdensome; and lease, unless the lessee defaults under the ceiver shall be— ‘‘(C) the disaffirmance or repudiation of terms of the lease after the date of such re- ‘‘(i) a claim to be paid in accordance with which the conservator or receiver deter- pudiation. subsections (b) and (e); and mines, in its sole discretion, will promote ‘‘(B) PROVISIONS APPLICABLE TO LESSEE RE- ‘‘(ii) deemed to have arisen as of the date the orderly administration of the affairs of MAINING IN POSSESSION.—If any lessee under a the conservator or receiver was appointed. the regulated entity. lease described under subparagraph (A) re- ‘‘(B) SERVICES PERFORMED AFTER APPOINT- ‘‘(2) TIMING OF REPUDIATION.—The conser- mains in possession of a leasehold interest MENT AND PRIOR TO REPUDIATION.—If, in the vator or receiver shall determine whether or under clause (ii) of such subparagraph— case of any contract for services described not to exercise the rights of repudiation ‘‘(i) the lessee— under subparagraph (A), the conservator or under this subsection within a reasonable pe- ‘‘(I) shall continue to pay the contractual receiver accepts performance by the other riod following such appointment. rent pursuant to the terms of the lease after person before the conservator or receiver ‘‘(3) CLAIMS FOR DAMAGES FOR REPUDI- makes any determination to exercise the the date of the repudiation of such lease; and ATION.— right of repudiation of such contract under ‘‘(II) may offset against any rent payment ‘‘(A) IN GENERAL.—Except as otherwise pro- this section— which accrues after the date of the repudi- vided under subparagraph (C) and paragraphs ‘‘(i) the other party shall be paid under the ation of the lease, and any damages which (4), (5), and (6), the liability of the conser- terms of the contract for the services per- accrue after such date due to the non- vator or receiver for the disaffirmance or re- formed; and performance of any obligation of the regu- pudiation of any contract pursuant to para- ‘‘(ii) the amount of such payment shall be lated entity under the lease after such date; graph (1) shall be— treated as an administrative expense of the ‘‘(i) limited to actual direct compensatory and conservatorship or receivership. ‘‘(ii) the conservator or receiver shall not damages; and ‘‘(C) ACCEPTANCE OF PERFORMANCE NO BAR be liable to the lessee for any damages aris- ‘‘(ii) determined as of— TO SUBSEQUENT REPUDIATION.—The accept- ‘‘(I) the date of the appointment of the ing after such date as a result of the repudi- ance by any conservator or receiver of serv- conservator or receiver; or ation other than the amount of any offset al- ices referred to under subparagraph (B) in ‘‘(II) in the case of any contract or agree- lowed under clause (i)(II). connection with a contract described in such ment referred to in paragraph (8), the date of ‘‘(6) CONTRACTS FOR THE SALE OF REAL subparagraph shall not affect the right of the the disaffirmance or repudiation of such con- PROPERTY.— conservator or receiver to repudiate such tract or agreement. ‘‘(A) IN GENERAL.—If the conservator or re- contract under this section at any time after ‘‘(B) NO LIABILITY FOR OTHER DAMAGES.— ceiver repudiates any contract for the sale of such performance. For purposes of subparagraph (A), the term real property and the purchaser of such real ‘‘(8) CERTAIN QUALIFIED FINANCIAL CON- ‘actual direct compensatory damages’ shall property under such contract is in posses- TRACTS.— not include— sion, and is not, as of the date of such repudi- ‘‘(A) RIGHTS OF PARTIES TO CONTRACTS.— ‘‘(i) punitive or exemplary damages; ation, in default, such purchaser may ei- Subject to paragraphs (9) and (10) and not- ‘‘(ii) damages for lost profits or oppor- ther— withstanding any other provision of this Act, tunity; or ‘‘(i) treat the contract as terminated by any other Federal law, or the law of any ‘‘(iii) damages for pain and suffering. such repudiation; or State, no person shall be stayed or prohib- ‘‘(C) MEASURE OF DAMAGES FOR REPUDI- ‘‘(ii) remain in possession of such real ited from exercising— ATION OF FINANCIAL CONTRACTS.—In the case property. ‘‘(i) any right such person has to cause the of any qualified financial contract or agree- ‘‘(B) PROVISIONS APPLICABLE TO PURCHASER termination, liquidation, or acceleration of ment to which paragraph (8) applies, com- REMAINING IN POSSESSION.—If any purchaser any qualified financial contract with a regu- pensatory damages shall be— of real property under any contract de- lated entity that arises upon the appoint- ‘‘(i) deemed to include normal and reason- scribed under subparagraph (A) remains in ment of the Agency as receiver for such reg- able costs of cover or other reasonable meas- possession of such property under clause (ii) ulated entity at any time after such appoint- ures of damages utilized in the industries for of such subparagraph— ment; such contract and agreement claims; and ‘‘(i) the purchaser— ‘‘(ii) any right under any security agree- ‘‘(ii) paid in accordance with this sub- ‘‘(I) shall continue to make all payments ment or arrangement or other credit en- section and subsection (e), except as other- due under the contract after the date of the hancement relating to one or more qualified wise specifically provided in this section. repudiation of the contract; and financial contracts described in clause (i); or ‘‘(4) LEASES UNDER WHICH THE REGULATED ‘‘(II) may offset against any such payments ‘‘(iii) any right to offset or net out any ter- ENTITY IS THE LESSEE.— any damages which accrue after such date mination value, payment amount, or other ‘‘(A) IN GENERAL.—If the conservator or re- due to the nonperformance (after such date) transfer obligation arising under or in con- ceiver disaffirms or repudiates a lease under of any obligation of the regulated entity nection with 1 or more contracts and agree- which the regulated entity was the lessee, under the contract; and ments described in clause (i), including any the conservator or receiver shall not be lia- ‘‘(ii) the conservator or receiver shall— master agreement for such contracts or ble for any damages (other than damages de- ‘‘(I) not be liable to the purchaser for any agreements. termined under subparagraph (B)) for the damages arising after such date as a result of ‘‘(B) APPLICABILITY OF OTHER PROVISIONS.— disaffirmance or repudiation of such lease. the repudiation other than the amount of Paragraph (10) of subsection (b) shall apply ‘‘(B) PAYMENTS OF RENT.—Notwithstanding any offset allowed under clause (i)(II); in the case of any judicial action or pro- subparagraph (A), the lessor under a lease to ‘‘(II) deliver title to the purchaser in ac- ceeding brought against any receiver re- which that subparagraph applies shall— cordance with the provisions of the contract; ferred to under subparagraph (A), or the reg- ‘‘(i) be entitled to the contractual rent ac- and ulated entity for which such receiver was ap- cruing before the later of the date— ‘‘(III) have no obligation under the con- pointed, by any party to a contract or agree- ‘‘(I) the notice of disaffirmance or repudi- tract other than the performance required ment described under subparagraph (A)(i) ation is mailed; or under subclause (II). with such regulated entity. ‘‘(II) the disaffirmance or repudiation be- ‘‘(C) ASSIGNMENT AND SALE ALLOWED.— ‘‘(C) CERTAIN TRANSFERS NOT AVOIDABLE.— comes effective, unless the lessor is in de- ‘‘(i) IN GENERAL.—No provision of this para- ‘‘(i) IN GENERAL.—Notwithstanding para- fault or breach of the terms of the lease; graph shall be construed as limiting the graph (11) or any other Federal or State laws ‘‘(ii) have no claim for damages under any right of the conservator or receiver to assign relating to the avoidance of preferential or acceleration clause or other penalty provi- the contract described under subparagraph fraudulent transfers, the Agency, whether sion in the lease; and (A), and sell the property subject to the con- acting as such or as conservator or receiver ‘‘(iii) have a claim for any unpaid rent, tract and the provisions of this paragraph. of a regulated entity, may not avoid any subject to all appropriate offsets and de- ‘‘(ii) NO LIABILITY AFTER ASSIGNMENT AND transfer of money or other property in con- fenses, due as of the date of the appointment, SALE.—If an assignment and sale described nection with any qualified financial contract which shall be paid in accordance with this under clause (i) is consummated, the conser- with a regulated entity. subsection and subsection (e). vator or receiver shall have no further liabil- ‘‘(ii) EXCEPTION FOR CERTAIN TRANSFERS.— ‘‘(5) LEASES UNDER WHICH THE REGULATED ity under the contract described under sub- Clause (i) shall not apply to any transfer of ENTITY IS THE LESSOR.— paragraph (A), or with respect to the real money or other property in connection with ‘‘(A) IN GENERAL.—If the conservator or re- property which was the subject of such con- any qualified financial contract with a regu- ceiver repudiates an unexpired written lease tract. lated entity if the Agency determines that of real property of the regulated entity ‘‘(7) PROVISIONS APPLICABLE TO SERVICE the transferee had actual intent to hinder, under which the regulated entity is the les- CONTRACTS.— delay, or defraud such regulated entity, the

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00069 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.017 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3258 CONGRESSIONAL RECORD — HOUSE May 8, 2008 creditors of such regulated entity, or any of a commodity for future delivery on, or connection with any agreement or trans- conservator or receiver appointed for such subject to the rules of, a contract market or action referred to in any such subclause. regulated entity. board of trade; ‘‘(v) REPURCHASE AGREEMENT.—The term ‘‘(D) CERTAIN CONTRACTS AND AGREEMENTS ‘‘(II) with respect to a foreign futures com- ‘repurchase agreement’ (which definition DEFINED.—In this subsection: mission merchant, a foreign future; also applies to a reverse repurchase agree- ‘‘(i) QUALIFIED FINANCIAL CONTRACT.—The ‘‘(III) with respect to a leverage trans- ment)— term ‘qualified financial contract’ means action merchant, a leverage transaction; ‘‘(I) means an agreement, including related any securities contract, commodity con- ‘‘(IV) with respect to a clearing organiza- terms, which provides for the transfer of one tract, forward contract, repurchase agree- tion, a contract for the purchase or sale of a or more certificates of deposit, mortgage-re- ment, swap agreement, and any similar commodity for future delivery on, or subject lated securities (as such term is defined in agreement that the Agency determines by to the rules of, a contract market or board of the Securities Exchange Act of 1934), mort- regulation, resolution, or order to be a quali- trade that is cleared by such clearing organi- gage loans, interests in mortgage-related se- fied financial contract for purposes of this zation, or commodity option traded on, or curities or mortgage loans, eligible bankers’ paragraph. subject to the rules of, a contract market or acceptances, qualified foreign government ‘‘(ii) SECURITIES CONTRACT.—The term ‘se- board of trade that is cleared by such clear- securities or securities that are direct obli- curities contract’— ing organization; gations of, or that are fully guaranteed by, ‘‘(I) means a contract for the purchase, ‘‘(V) with respect to a commodity options the United States or any agency of the sale, or loan of a security, a certificate of de- dealer, a commodity option; United States against the transfer of funds posit, a mortgage loan, or any interest in a ‘‘(VI) any other agreement or transaction by the transferee of such certificates of de- mortgage loan, a group or index of securi- that is similar to any agreement or trans- posit, eligible bankers’ acceptances, securi- ties, certificates of deposit, or mortgage action referred to in this clause; ties, mortgage loans, or interests with a si- loans or interests therein (including any in- ‘‘(VII) any combination of the agreements multaneous agreement by such transferee to terest therein or based on the value thereof) or transactions referred to in this clause; transfer to the transferor thereof certificates or any option on any of the foregoing, in- ‘‘(VIII) any option to enter into any agree- of deposit, eligible bankers’ acceptances, se- cluding any option to purchase or sell any curities, mortgage loans, or interests as de- such security, certificate of deposit, mort- ment or transaction referred to in this clause; scribed above, at a date certain not later gage loan, interest, group or index, or op- than 1 year after such transfers or on de- tion, and including any repurchase or reverse ‘‘(IX) a master agreement that provides for an agreement or transaction referred to in mand, against the transfer of funds, or any repurchase transaction on any such security, other similar agreement; certificate of deposit, mortgage loan, inter- subclause (I), (II), (III), (IV), (V), (VI), (VII), or (VIII), together with all supplements to ‘‘(II) does not include any repurchase obli- est, group or index, or option; gation under a participation in a commercial ‘‘(II) does not include any purchase, sale, any such master agreement, without regard to whether the master agreement provides mortgage loan unless the Agency determines or repurchase obligation under a participa- by regulation, resolution, or order to include tion in a commercial mortgage loan unless for an agreement or transaction that is not a commodity contract under this clause, ex- any such participation within the meaning the Agency determines by regulation, resolu- of such term; tion, or order to include any such agreement cept that the master agreement shall be con- ‘‘(III) means any combination of agree- within the meaning of such term; sidered to be a commodity contract under ments or transactions referred to in sub- ‘‘(III) means any option entered into on a this clause only with respect to each agree- clauses (I) and (IV); national securities exchange relating to for- ment or transaction under the master agree- ‘‘(IV) means any option to enter into any eign currencies; ment that is referred to in subclause (I), (II), agreement or transaction referred to in sub- ‘‘(IV) means the guarantee by or to any se- (III), (IV), (V), (VI), (VII), or (VIII); or clause (I) or (III); curities clearing agency of any settlement of ‘‘(X) any security agreement or arrange- ‘‘(V) means a master agreement that pro- cash, securities, certificates of deposit, ment or other credit enhancement related to vides for an agreement or transaction re- mortgage loans or interests therein, group or any agreement or transaction referred to in ferred to in subclause (I), (III), or (IV), to- index of securities, certificates of deposit, or this clause, including any guarantee or reim- mortgage loans or interests therein (includ- bursement obligation in connection with any gether with all supplements to any such ing any interest therein or based on the agreement or transaction referred to in this master agreement, without regard to wheth- value thereof) or option on any of the fore- clause. er the master agreement provides for an going, including any option to purchase or ‘‘(iv) FORWARD CONTRACT.—The term ‘for- agreement or transaction that is not a repur- sell any such security, certificate of deposit, ward contract’ means— chase agreement under this clause, except mortgage loan, interest, group or index, or ‘‘(I) a contract (other than a commodity that the master agreement shall be consid- option; contract) for the purchase, sale, or transfer ered to be a repurchase agreement under this ‘‘(V) means any margin loan; of a commodity or any similar good, article, subclause only with respect to each agree- ‘‘(VI) means any other agreement or trans- service, right, or interest which is presently ment or transaction under the master agree- action that is similar to any agreement or or in the future becomes the subject of deal- ment that is referred to in subclause (I), transaction referred to in this clause; ing in the forward contract trade, or product (III), or (IV); and ‘‘(VII) means any combination of the or byproduct thereof, with a maturity date ‘‘(VI) means any security agreement or ar- agreements or transactions referred to in more than 2 days after the date the contract rangement or other credit enhancement re- this clause; is entered into, including, a repurchase lated to any agreement or transaction re- ‘‘(VIII) means any option to enter into any transaction, reverse repurchase transaction, ferred to in subclause (I), (III), (IV), or (V), agreement or transaction referred to in this consignment, lease, swap, hedge transaction, including any guarantee or reimbursement clause; deposit, loan, option, allocated transaction, obligation in connection with any agreement ‘‘(IX) means a master agreement that pro- unallocated transaction, or any other simi- or transaction referred to in any such sub- vides for an agreement or transaction re- lar agreement; clause. ferred to in subclause (I), (III), (IV), (V), (VI), ‘‘(II) any combination of agreements or For purposes of this clause, the term ‘quali- (VII), or (VIII), together with all supple- transactions referred to in subclauses (I) and fied foreign government security’ means a ments to any such master agreement, with- (III); security that is a direct obligation of, or out regard to whether the master agreement ‘‘(III) any option to enter into any agree- that is fully guaranteed by, the central gov- provides for an agreement or transaction ment or transaction referred to in subclause ernment of a member of the Organization for that is not a securities contract under this (I) or (II); Economic Cooperation and Development (as clause, except that the master agreement ‘‘(IV) a master agreement that provides for determined by regulation or order adopted shall be considered to be a securities con- an agreement or transaction referred to in by the appropriate Federal banking author- tract under this clause only with respect to subclauses (I), (II), or (III), together with all ity). each agreement or transaction under the supplements to any such master agreement, ‘‘(vi) SWAP AGREEMENT.—The term ‘swap master agreement that is referred to in sub- without regard to whether the master agree- agreement’ means— clause (I), (III), (IV), (V), (VI), (VII), or ment provides for an agreement or trans- ‘‘(I) any agreement, including the terms (VIII); and action that is not a forward contract under and conditions incorporated by reference in ‘‘(X) means any security agreement or ar- this clause, except that the master agree- any such agreement, which is an interest rangement or other credit enhancement re- ment shall be considered to be a forward con- rate swap, option, future, or forward agree- lated to any agreement or transaction re- tract under this clause only with respect to ment, including a rate floor, rate cap, rate ferred to in this clause, including any guar- each agreement or transaction under the collar, cross-currency rate swap, and basis antee or reimbursement obligation in con- master agreement that is referred to in sub- swap; a spot, same day-tomorrow, tomorrow- nection with any agreement or transaction clause (I), (II), or (III); or next, forward, or other foreign exchange or referred to in this clause. ‘‘(V) any security agreement or arrange- precious metals agreement; a currency swap, ‘‘(iii) COMMODITY CONTRACT.—The term ment or other credit enhancement related to option, future, or forward agreement; an eq- ‘commodity contract’ means— any agreement or transaction referred to in uity index or equity swap, option, future, or ‘‘(I) with respect to a futures commission subclause (I), (II), (III), or (IV), including any forward agreement; a debt index or debt merchant, a contract for the purchase or sale guarantee or reimbursement obligation in swap, option, future, or forward agreement; a

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00070 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.017 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3259

total return, credit spread or credit swap, op- ‘‘(E) CERTAIN PROTECTIONS IN EVENT OF AP- ‘‘(ii) the transfer includes any qualified fi- tion, future, or forward agreement; a com- POINTMENT OF CONSERVATOR.—Notwith- nancial contract, modity index or commodity swap, option, fu- standing any other provision of this Act the conservator or receiver shall notify any ture, or forward agreement; or a weather (other than paragraph (13) of this sub- person who is a party to any such contract of swap, weather derivative, or weather option; section), any other Federal law, or the law of such transfer by 5:00 p.m. (eastern time) on ‘‘(II) any agreement or transaction that is any State, no person shall be stayed or pro- the business day following the date of the ap- similar to any other agreement or trans- hibited from exercising— pointment of the receiver in the case of a re- action referred to in this clause and that is ‘‘(i) any right such person has to cause the ceivership, or the business day following of a type that has been, is presently, or in termination, liquidation, or acceleration of such transfer in the case of a conservator- the future becomes, the subject of recurrent any qualified financial contract with a regu- ship. dealings in the swap markets (including lated entity in a conservatorship based upon ‘‘(B) CERTAIN RIGHTS NOT ENFORCEABLE.— terms and conditions incorporated by ref- a default under such financial contract ‘‘(i) RECEIVERSHIP.—A person who is a erence in such agreement) and that is a for- which is enforceable under applicable non- party to a qualified financial contract with a ward, swap, future, or option on one or more insolvency law; rates, currencies, commodities, equity secu- ‘‘(ii) any right under any security agree- regulated entity may not exercise any right rities or other equity instruments, debt secu- ment or arrangement or other credit en- that such person has to terminate, liquidate, rities or other debt instruments, quan- hancement relating to one or more such or net such contract under paragraph (8)(A) titative measures associated with an occur- qualified financial contracts; or of this subsection or section 403 or 404 of the rence, extent of an occurrence, or contin- ‘‘(iii) any right to offset or net out any ter- Federal Deposit Insurance Corporation Im- gency associated with a financial, commer- mination values, payment amounts, or other provement Act of 1991, solely by reason of or cial, or economic consequence, or economic transfer obligations arising under or in con- incidental to the appointment of a receiver or financial indices or measures of economic nection with such qualified financial con- for the regulated entity (or the insolvency or or financial risk or value; tracts. financial condition of the regulated entity ‘‘(III) any combination of agreements or ‘‘(F) CLARIFICATION.—No provision of law for which the receiver has been appointed)— transactions referred to in this clause; shall be construed as limiting the right or ‘‘(I) until 5:00 p.m. (eastern time) on the ‘‘(IV) any option to enter into any agree- power of the Agency, or authorizing any business day following the date of the ap- ment or transaction referred to in this court or agency to limit or delay, in any pointment of the receiver; or clause; manner, the right or power of the Agency to ‘‘(II) after the person has received notice ‘‘(V) a master agreement that provides for transfer any qualified financial contract in that the contract has been transferred pursu- an agreement or transaction referred to in accordance with paragraphs (9) and (10) of ant to paragraph (9)(A). subclause (I), (II), (III), or (IV), together with this subsection or to disaffirm or repudiate ‘‘(ii) CONSERVATORSHIP.—A person who is a all supplements to any such master agree- any such contract in accordance with sub- party to a qualified financial contract with a ment, without regard to whether the master section (d)(1) of this section. regulated entity may not exercise any right agreement contains an agreement or trans- ‘‘(G) WALKAWAY CLAUSES NOT EFFECTIVE.— that such person has to terminate, liquidate, action that is not a swap agreement under ‘‘(i) IN GENERAL.—Notwithstanding the pro- or net such contract under paragraph (8)(E) this clause, except that the master agree- visions of subparagraphs (A) and (E), and sec- of this subsection or section 403 or 404 of the ment shall be considered to be a swap agree- tions 403 and 404 of the Federal Deposit In- Federal Deposit Insurance Corporation Im- ment under this clause only with respect to surance Corporation Improvement Act of provement Act of 1991, solely by reason of or each agreement or transaction under the 1991, no walkaway clause shall be enforceable incidental to the appointment of a conser- master agreement that is referred to in sub- in a qualified financial contract of a regu- vator for the regulated entity (or the insol- clause (I), (II), (III), or (IV); and lated entity in default. vency or financial condition of the regulated ‘‘(VI) any security agreement or arrange- ‘‘(ii) WALKAWAY CLAUSE DEFINED.—For pur- entity for which the conservator has been ment or other credit enhancement related to poses of this subparagraph, the term appointed). any agreements or transactions referred to ‘walkaway clause’ means a provision in a ‘‘(iii) NOTICE.—For purposes of this para- in subclause (I), (II), (III), (IV), or (V), in- qualified financial contract that, after cal- graph, the Agency as receiver or conservator cluding any guarantee or reimbursement ob- culation of a value of a party’s position or an of a regulated entity shall be deemed to have ligation in connection with any agreement amount due to or from 1 of the parties in ac- notified a person who is a party to a quali- or transaction referred to in any such sub- cordance with its terms upon termination, fied financial contract with such regulated clause. liquidation, or acceleration of the qualified entity if the Agency has taken steps reason- financial contract, either does not create a Such term is applicable for purposes of this ably calculated to provide notice to such per- payment obligation of a party or extin- subsection only and shall not be construed or son by the time specified in subparagraph guishes a payment obligation of a party in applied so as to challenge or affect the char- (A). whole or in part solely because of such par- acterization, definition, or treatment of any ‘‘(C) BUSINESS DAY DEFINED.—For purposes ty’s status as a nondefaulting party. swap agreement under any other statute, of this paragraph, the term ‘business day’ ‘‘(9) TRANSFER OF QUALIFIED FINANCIAL CON- regulation, or rule, including the Securities means any day other than any Saturday, TRACTS.—In making any transfer of assets or Act of 1933, the Securities Exchange Act of Sunday, or any day on which either the New 1934, the Public Utility Holding Company liabilities of a regulated entity in default which includes any qualified financial con- York Stock Exchange or the Federal Reserve Act of 1935, the Trust Indenture Act of 1939, Bank of New York is closed. the Investment Company Act of 1940, the In- tract, the conservator or receiver for such ‘‘(11) DISAFFIRMANCE OR REPUDIATION OF vestment Advisers Act of 1940, the Securities regulated entity shall either— QUALIFIED FINANCIAL CONTRACTS.—In exer- Investor Protection Act of 1970, the Com- ‘‘(A) transfer to 1 person— cising the rights of disaffirmance or repudi- modity Exchange Act, the Gramm-Leach- ‘‘(i) all qualified financial contracts be- ation of a conservator or receiver with re- Bliley Act, and the Legal Certainty for Bank tween any person (or any affiliate of such spect to any qualified financial contract to Products Act of 2000. person) and the regulated entity in default; which a regulated entity is a party, the con- ‘‘(vii) TREATMENT OF MASTER AGREEMENT ‘‘(ii) all claims of such person (or any affil- servator or receiver for such institution AS ONE AGREEMENT.—Any master agreement iate of such person) against such regulated for any contract or agreement described in entity under any such contract (other than shall either— any preceding clause of this subparagraph any claim which, under the terms of any ‘‘(A) disaffirm or repudiate all qualified fi- (or any master agreement for such master such contract, is subordinated to the claims nancial contracts between— agreement or agreements), together with all of general unsecured creditors of such regu- ‘‘(i) any person or any affiliate of such per- supplements to such master agreement, shall lated entity); son; and be treated as a single agreement and a single ‘‘(iii) all claims of such regulated entity ‘‘(ii) the regulated entity in default; or qualified financial contract. If a master against such person (or any affiliate of such ‘‘(B) disaffirm or repudiate none of the agreement contains provisions relating to person) under any such contract; and qualified financial contracts referred to in agreements or transactions that are not ‘‘(iv) all property securing or any other subparagraph (A) (with respect to such per- themselves qualified financial contracts, the credit enhancement for any contract de- son or any affiliate of such person). master agreement shall be deemed to be a scribed in clause (i) or any claim described in ‘‘(12) CERTAIN SECURITY INTERESTS NOT qualified financial contract only with re- clause (ii) or (iii) under any such contract; or AVOIDABLE.—No provision of this subsection spect to those transactions that are them- ‘‘(B) transfer none of the financial con- shall be construed as permitting the avoid- selves qualified financial contracts. tracts, claims, or property referred to under ance of any legally enforceable or perfected ‘‘(viii) TRANSFER.—The term ‘transfer’ subparagraph (A) (with respect to such per- security interest in any of the assets of any means every mode, direct or indirect, abso- son and any affiliate of such person). regulated entity, except where such an inter- lute or conditional, voluntary or involun- ‘‘(10) NOTIFICATION OF TRANSFER.— est is taken in contemplation of the insol- tary, of disposing of or parting with property ‘‘(A) IN GENERAL.—If— vency of the regulated entity, or with the in- or with an interest in property, including re- ‘‘(i) the conservator or receiver for a regu- tent to hinder, delay, or defraud the regu- tention of title as a security interest and lated entity in default makes any transfer of lated entity or the creditors of such regu- foreclosure of the regulated entity’s equity the assets and liabilities of such regulated lated entity. of redemption. entity, and ‘‘(13) AUTHORITY TO ENFORCE CONTRACTS.—

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00071 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.017 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3260 CONGRESSIONAL RECORD — HOUSE May 8, 2008

‘‘(A) IN GENERAL.—Notwithstanding any ‘‘(f) LIMITATION ON COURT ACTION.—Except ter, shall be under the management of a provision of a contract providing for termi- as provided in this section or at the request board of directors consisting of not fewer nation, default, acceleration, or exercise of of the Director, no court may take any ac- than 5 nor more than 10 members appointed rights upon, or solely by reason of, insol- tion to restrain or affect the exercise of pow- by the Agency. vency or the appointment of a conservator or ers or functions of the Agency as a conser- ‘‘(D) BYLAWS.—The board of directors of a receiver, the conservator or receiver may en- vator or a receiver. limited-life regulated entity shall adopt such force any contract or regulated entity bond ‘‘(g) LIABILITY OF DIRECTORS AND OFFI- bylaws as may be approved by the Agency. entered into by the regulated entity. CERS.— ‘‘(3) CAPITAL STOCK.—No capital stock need ‘‘(B) CERTAIN RIGHTS NOT AFFECTED.—No ‘‘(1) IN GENERAL.—A director or officer of a be paid into a limited-life regulated entity provision of this paragraph may be construed regulated entity may be held personally lia- by the Agency. as impairing or affecting any right of the ble for monetary damages in any civil action ‘‘(4) INVESTMENTS.—Funds of a limited-life conservator or receiver to enforce or recover by, on behalf of, or at the request or direc- regulated entity shall be kept on hand in under a director’s or officer’s liability insur- tion of the Agency, which action is pros- cash, invested in obligations of the United ance contract or surety bond under other ap- ecuted wholly or partially for the benefit of States or obligations guaranteed as to prin- plicable law. the Agency— cipal and interest by the United States, or ‘‘(C) CONSENT REQUIREMENT.— ‘‘(A) acting as conservator or receiver of deposited with the Agency, or any Federal ‘‘(i) IN GENERAL.—Except as otherwise pro- such regulated entity, or Reserve bank. vided under this section, no person may exer- ‘‘(B) acting based upon a suit, claim, or ‘‘(5) EXEMPT STATUS.—Notwithstanding cise any right or power to terminate, accel- cause of action purchased from, assigned by, any other provision of Federal or State law, erate, or declare a default under any con- or otherwise conveyed by such receiver or the limited-life regulated entity, its fran- tract to which a regulated entity is a party, conservator, chise, property, and income shall be exempt or to obtain possession of or exercise control for gross negligence, including any similar from all taxation now or hereafter imposed over any property of the regulated entity, or conduct or conduct that demonstrates a by the United States, by any territory, de- affect any contractual rights of the regu- greater disregard of a duty of care (than pendency, or possession thereof, or by any lated entity, without the consent of the con- State, county, municipality, or local taxing servator or receiver, as appropriate, for a pe- gross negligence) including intentional riod of— tortious conduct, as such terms are defined authority. ‘‘(I) 45 days after the date of appointment and determined under applicable State law. ‘‘(6) WINDING UP.— of a conservator; or ‘‘(2) NO LIMITATION.—Nothing in this para- ‘‘(A) IN GENERAL.—Subject to subparagraph ‘‘(II) 90 days after the date of appointment graph shall impair or affect any right of the (B), unless Congress authorizes the sale of of a receiver. Agency under other applicable law. the capital stock of the limited-life regu- AMAGES ‘‘(ii) EXCEPTIONS.—This paragraph shall— ‘‘(h) D .—In any proceeding related lated entity, not later than 2 years after the ‘‘(I) not apply to a director’s or officer’s li- to any claim against a director, officer, em- date of its organization, the Agency shall ability insurance contract; ployee, agent, attorney, accountant, ap- wind up the affairs of the limited-life regu- ‘‘(II) not apply to the rights of parties to praiser, or any other party employed by or lated entity. any qualified financial contracts under sub- providing services to a regulated entity, re- ‘‘(B) EXTENSION.—The Director may, in the section (d)(8); and coverable damages determined to result from discretion of the Director, extend the status ‘‘(III) not be construed as permitting the the improvident or otherwise improper use of the limited-life regulated entity for 3 ad- conservator or receiver to fail to comply or investment of any assets of the regulated ditional 1-year periods. with otherwise enforceable provisions of entity shall include principal losses and ap- ‘‘(7) TRANSFER OF ASSETS AND LIABILITIES.— such contracts. propriate interest. ‘‘(A) IN GENERAL.— ‘‘(14) SAVINGS CLAUSE.—The meanings of ‘‘(i) LIMITED-LIFE REGULATED ENTITIES.— ‘‘(i) TRANSFER OF ASSETS AND LIABILITIES.— terms used in this subsection are applicable ‘‘(1) ORGANIZATION.— The Agency, as receiver, may transfer any for purposes of this subsection only, and ‘‘(A) PURPOSE.—If a regulated entity is in assets and liabilities of a regulated entity in shall not be construed or applied so as to default, or if the Agency anticipates that a default, or in danger of default, to the lim- challenge or affect the characterization, def- regulated entity will default, the Agency ited-life regulated entity in accordance with inition, or treatment of any similar terms may organize a limited-life regulated entity paragraph (1). under any other statute, regulation, or rule, with those powers and attributes of the regu- ‘‘(ii) SUBSEQUENT TRANSFERS.—At any time including the Gramm-Leach-Bliley Act, the lated entity in default or in danger of default after a charter is transferred to a limited-life Legal Certainty for Bank Products Act of that the Director determines necessary, sub- regulated entity, the Agency, as receiver, 2000, the securities laws (as that term is de- ject to the provisions of this subsection. The may transfer any assets and liabilities of fined in section 3(a)(47) of the Securities Ex- Director shall grant a temporary charter to such regulated entity in default, or in danger change Act of 1934), and the Commodity Ex- the limited-life regulated entity, and the in default, as the Agency may, in its discre- change Act. limited-life regulated entity shall operate tion, determine to be appropriate in accord- ‘‘(15) EXCEPTION FOR FEDERAL RESERVE AND subject to that charter. ance with paragraph (1). FEDERAL HOME LOAN BANKS.—No provision of ‘‘(B) AUTHORITIES.—Upon the creation of a ‘‘(iii) EFFECTIVE WITHOUT APPROVAL.—The this subsection shall apply with respect to— limited-life regulated entity under subpara- transfer of any assets or liabilities of a regu- ‘‘(A) any extension of credit from any Fed- graph (A), the limited-life regulated entity lated entity in default, or in danger of de- eral home loan bank or Federal Reserve may— fault, transferred to a limited-life regulated Bank to any regulated entity; or ‘‘(i) assume such liabilities of the regu- entity shall be effective without any further ‘‘(B) any security interest in the assets of lated entity that is in default or in danger of approval under Federal or State law, assign- the regulated entity securing any such ex- default as the Agency may, in its discretion, ment, or consent with respect thereto. tension of credit. determine to be appropriate, provided that ‘‘(8) PROCEEDS.—To the extent that avail- ‘‘(e) VALUATION OF CLAIMS IN DEFAULT.— the liabilities assumed shall not exceed the able proceeds from the limited-life regulated ‘‘(1) IN GENERAL.—Notwithstanding any amount of assets of the limited-life regu- entity exceed amounts required to pay obli- other provision of Federal law or the law of lated entity; gations, such proceeds may be paid to the any State, and regardless of the method ‘‘(ii) purchase such assets of the regulated regulated entity in default, or in danger of which the Agency determines to utilize with entity that is in default, or in danger of de- default. respect to a regulated entity in default or in fault, as the Agency may, in its discretion, ‘‘(9) POWERS.— danger of default, including transactions au- determine to be appropriate; and ‘‘(A) IN GENERAL.—Each limited-life regu- thorized under subsection (i), this subsection ‘‘(iii) perform any other temporary func- lated entity created under this subsection shall govern the rights of the creditors of tion which the Agency may, in its discretion, shall have all corporate powers of, and be such regulated entity. prescribe in accordance with this section. subject to the same provisions of law as, the ‘‘(2) MAXIMUM LIABILITY.—The maximum ‘‘(2) CHARTER.— regulated entity in default or in danger of liability of the Agency, acting as receiver or ‘‘(A) CONDITIONS.—The Agency may grant a default to which it relates, except that— in any other capacity, to any person having temporary charter if the Agency determines ‘‘(i) the Agency may— a claim against the receiver or the regulated that the continued operation of the regu- ‘‘(I) remove the directors of a limited-life entity for which such receiver is appointed lated entity in default or in danger of default regulated entity; and shall equal the lesser of— is in the best interest of the national econ- ‘‘(II) fix the compensation of members of ‘‘(A) the amount such claimant would have omy and the housing markets. the board of directors and senior manage- received if the Agency had liquidated the as- ‘‘(B) TREATMENT AS BEING IN DEFAULT FOR ment, as determined by the Agency in its sets and liabilities of such regulated entity CERTAIN PURPOSES.—A limited-life regulated discretion, of a limited-life regulated entity; without exercising the authority of the entity shall be treated as a regulated entity ‘‘(ii) the Agency may indemnify the rep- Agency under subsection (i) of this section; in default at such times and for such pur- resentatives for purposes of paragraph (1)(B), or poses as the Agency may, in its discretion, and the directors, officers, employees, and ‘‘(B) the amount of proceeds realized from determine. agents of a limited-life regulated entity on the performance of contracts or sale of the ‘‘(C) MANAGEMENT.—A limited-life regu- such terms as the Agency determines to be assets of the regulated entity. lated entity, upon the granting of its char- appropriate; and

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00072 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.017 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3261

‘‘(iii) the board of directors of a limited- agents of a limited-life regulated entity are (2) FEDERAL HOME LOAN BANKS.—Section 25 life regulated entity— not, solely by virtue of service in any such of the Federal Home Loan Bank Act (12 ‘‘(I) shall elect a chairperson who may also capacity, officers or employees of the United U.S.C. 1445) is amended to read as follows: serve in the position of chief executive offi- States. Any employee of the Agency or of ‘‘SEC. 25. SUCCESSION OF FEDERAL HOME LOAN cer, except that such person shall not serve any Federal instrumentality who serves at BANKS. either as chairperson or as chief executive the request of the Agency as a representative ‘‘Each Federal Home Loan Bank shall have officer without the prior approval of the for purposes of paragraph (1)(B), interim di- succession until it is voluntarily merged Agency; and rector, director, officer, employee, or agent with another Bank under this Act, or until it ‘‘(II) may appoint a chief executive officer of a limited-life regulated entity shall not— is merged, reorganized, rehabilitated, liq- who is not also the chairperson, except that ‘‘(i) solely by virtue of service in any such uidated, or otherwise wound up by the Direc- such person shall not serve as chief executive capacity lose any existing status as an offi- tor in accordance with the provisions of sec- officer without the prior approval of the cer or employee of the United States for pur- tion 1367 of the Housing and Community De- Agency. poses of title 5, United States Code, or any velopment Act of 1992, or by further Act of ‘‘(B) STAY OF JUDICIAL ACTION.—Any judi- other provision of law; or Congress.’’. cial action to which a limited-life regulated ‘‘(ii) receive any salary or benefits for serv- SEC. 349. CONFORMING AMENDMENTS. entity becomes a party by virtue of its ac- ice in any such capacity with respect to a Title XIII of the Housing and Community quisition of any assets or assumption of any limited-life regulated entity in addition to Development Act of 1992, as amended by the liabilities of a regulated entity in default such salary or benefits as are obtained preceding provisions of this title, is further shall be stayed from further proceedings for through employment with the Agency or amended— a period of up to 45 days at the request of the such Federal instrumentality. (1) in sections 1365 (12 U.S.C. 4615) through limited-life regulated entity. Such period ‘‘(13) ADDITIONAL POWERS.—In addition to 1369D (12 U.S.C. 4623), but not including sec- may be modified upon the consent of all par- any other powers granted under this sub- tion 1367 (12 U.S.C. 4617) as amended by sec- ties. section, a limited-life regulated entity tion 349 of this title— ‘‘(10) OBTAINING OF CREDIT AND INCURRING may— (A) by striking ‘‘An enterprise’’ each place OF DEBT.— ‘‘(A) extend a maturity date or change in such term appears and inserting ‘‘A regu- ‘‘(A) IN GENERAL.—The limited-life regu- an interest rate or other term of outstanding lated entity’’; lated entity may obtain unsecured credit and securities; (B) by striking ‘‘an enterprise’’ each place incur unsecured debt in the ordinary course ‘‘(B) issue securities of the limited-life reg- such term appears and inserting ‘‘a regulated of business. ulated entity, for cash, for property, for ex- entity’’; and ‘‘(B) INABILITY TO OBTAIN CREDIT.—If the isting securities, or in exchange for claims or (C) by striking ‘‘the enterprise’’ each place limited-life regulated entity is unable to ob- interests, or for any other appropriate pur- such term appears and inserting ‘‘the regu- tain unsecured credit the Director may au- poses; and lated entity’’; thorize the obtaining of credit or the incur- ‘‘(C) take any other action not incon- (2) in section 1366 (12 U.S.C. 4616)— ring of debt— sistent with this section. (A) in subsection (b)(7), by striking ‘‘sec- ‘‘(i) with priority over any or all adminis- tion 1369 (excluding subsection (a)(1) and trative expenses; ‘‘(j) OTHER EXEMPTIONS.—When acting as a receiver, the following provisions shall apply (2))’’ and inserting ‘‘section 1367’’; and ‘‘(ii) secured by a lien on property that is (B) in subsection (d), by striking ‘‘the en- not otherwise subject to a lien; or with respect to the Agency: terprises’’ and inserting ‘‘the regulated enti- ‘‘(iii) secured by a junior lien on property ‘‘(1) EXEMPTION FROM TAXATION.—The ties’’; that is subject to a lien. Agency, including its franchise, its capital, (3) in section 1368(d) (12 U.S.C. 4618(d)), by ‘‘(C) LIMITATIONS.— reserves, and surplus, and its income, shall striking ‘‘Committee on Banking, Finance ‘‘(i) IN GENERAL.—The Director, after no- be exempt from all taxation imposed by any and Urban Affairs’’ and inserting ‘‘Com- tice and a hearing, may authorize the ob- State, country, municipality, or local taxing mittee on Financial Services’’; taining of credit or the incurring of debt se- authority, except that any real property of (4) in section 1369C (12 U.S.C. 4622)— cured by a senior or equal lien on property the Agency shall be subject to State, terri- (A) in subsection (a)(4), by striking ‘‘ac- that is subject to a lien (other than mort- torial, county, municipal, or local taxation tivities (including existing and new pro- gages that collateralize the mortgage-backed to the same extent according to its value as securities issued or guaranteed by the regu- other real property is taxed, except that, grams)’’ and inserting ‘‘activities, services, lated entity) only if— notwithstanding the failure of any person to undertakings, and offerings (including exist- ‘‘(I) the limited-life regulated entity is un- challenge an assessment under State law of ing and new products (as such term is de- able to obtain such credit otherwise; and the value of such property, and the tax fined in section 1321(f))’’; and ‘‘(II) there is adequate protection of the in- thereon, shall be determined as of the period (B) in subsection (c), by striking ‘‘any en- terest of the holder of the lien on the prop- for which such tax is imposed. terprise’’ and inserting ‘‘any regulated enti- erty which such senior or equal lien is pro- ‘‘(2) EXEMPTION FROM ATTACHMENT AND ty’’; and posed to be granted. LIENS.—No property of the Agency shall be (5) in subsections (a) and (d) of section ‘‘(ii) BURDEN OF PROOF.—In any hearing subject to levy, attachment, garnishment, 1369D, by striking ‘‘section 1366 or 1367 or ac- under this subsection, the Director has the foreclosure, or sale without the consent of tion under section 1369)’’ each place such burden of proof on the issue of adequate pro- the Agency, nor shall any involuntary lien phrase appears and inserting ‘‘section 1367)’’. tection. attach to the property of the Agency. CHAPTER 4—ENFORCEMENT ACTIONS ‘‘(D) EFFECT ON DEBTS AND LIENS.—The re- ‘‘(3) EXEMPTION FROM PENALTIES AND SEC. 351. CEASE-AND-DESIST PROCEEDINGS. versal or modification on appeal of an au- FINES.—The Agency shall not be liable for Section 1371 of the Housing and Commu- thorization under this paragraph to obtain any amounts in the nature of penalties or nity Development Act of 1992 (12 U.S.C. 4631) credit or incur debt, or of a grant under this fines, including those arising from the fail- is amended— section of a priority or a lien, does not affect ure of any person to pay any real property, (1) by striking subsections (a) and (b) and the validity of any debt so incurred, or any personal property, probate, or recording tax inserting the following new subsections: priority or lien so granted, to an entity that or any recording or filing fees when due. ‘‘(a) ISSUANCE FOR UNSAFE OR UNSOUND extended such credit in good faith, whether PRACTICES AND VIOLATIONS OF RULES OR ‘‘(k) PROHIBITION OF CHARTER REVOCA- or not such entity knew of the pendency of LAWS.—If, in the opinion of the Director, a TION.—In no case may a receiver appointed the appeal, unless such authorization and pursuant to this section revoke, annul, or regulated entity or any regulated entity-af- the incurring of such debt, or the granting of terminate the charter of a regulated entity. filiated party is engaging or has engaged, or such priority or lien, were stayed pending the Director has reasonable cause to believe appeal. ‘‘(l) PRESERVATION OF BANKRUPTCY LAW .— that the regulated entity or any regulated ‘‘(11) ISSUANCE OF PREFERRED DEBT.—A lim- Nothing in this Act shall be construed to entity-affiliated party is about to engage, in ited-life regulated entity may, subject to the modify, impair, or supersede the operation of an unsafe or unsound practice in conducting approval of the Director and subject to such any provision of title 11 of the United States the business of the regulated entity or is vio- terms and conditions as the Director may Code, or the operation of any provision of lating or has violated, or the Director has prescribe, issue notes, bonds, or other debt title 28 of such Code that relates to cases reasonable cause to believe that the regu- obligations of a class to which all other debt under such title 11, except as otherwise pro- lated entity or any regulated entity-affili- obligations of the limited-life regulated enti- vided in section 1367(b) of this Act and except ated party is about to violate, a law, rule, or ty shall be subordinate in right and pay- that a regulated entity may not be a debtor regulation, or any condition imposed in writ- ment. under such title 11.’’. ing by the Director in connection with the ‘‘(12) NO FEDERAL STATUS.— (b) CONFORMING AMENDMENTS.— granting of any application or other request ‘‘(A) AGENCY STATUS.—A limited-life regu- (1) HOUSING AND COMMUNITY DEVELOPMENT by the regulated entity or any written agree- lated entity is not an agency, establishment, ACT OF 1992.—Subtitle B of title XIII of the ment entered into with the Director, the Di- or instrumentality of the United States. Housing and Community Development Act of rector may issue and serve upon the regu- ‘‘(B) EMPLOYEE STATUS.—Representatives 1992 is amended by striking sections 1369 (12 lated entity or such party a notice of charges for purposes of paragraph (1)(B), interim di- U.S.C. 4619), 1369A (12 U.S.C. 4620), and 1369B in respect thereof. The Director may not, rectors, directors, officers, employees, or (12 U.S.C. 4621). pursuant to this section, enforce compliance

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00073 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.018 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3262 CONGRESSIONAL RECORD — HOUSE May 8, 2008 with any housing goal established under sub- (4) by striking subsection (e) and in insert- Home Loan Mortgage Corporation Act’’ and part B of part 2 of subtitle A of this title, ing the following new subsection: inserting ‘‘any provision of any of the au- with section 1336 or 1337 of this title, with ‘‘(e) ENFORCEMENT.—In the case of viola- thorizing statutes’’; subsection (m) or (n) of section 309 of the tion or threatened violation of, or failure to (ii) by striking ‘‘or Act’’ and inserting ‘‘or Federal National Mortgage Association obey, a temporary cease-and-desist order statute’’; Charter Act (12 U.S.C. 1723a(m), (n)), with issued pursuant to this section, the Director (iii) by striking ‘‘or subsection’’ and insert- subsection (e) or (f) of section 307 of the Fed- may apply to the United States District ing ‘‘, subsection’’; and eral Home Loan Mortgage Corporation Act Court for the District of Columbia or the (iv) by inserting ‘‘, or paragraph (5) or (12) (12 U.S.C. 1456(e), (f)), or with paragraph (5) United States district court within the juris- of section 10(j) of the Federal Home Loan of section 10(j) of the Federal Home Loan diction of which the headquarters of the reg- Bank Act’’ before the semicolon at the end; Bank Act (12 U.S.C. 1430(j)). ulated entity is located, for an injunction to (2) by striking subsection (b) and inserting ‘‘(b) ISSUANCE FOR UNSATISFACTORY RAT- enforce such order, and, if the court deter- the following new subsection: ING.—If a regulated entity receives, in its mines that there has been such violation or ‘‘(b) AMOUNT OF PENALTY.— most recent report of examination, a less- threatened violation or failure to obey, it ‘‘(1) FIRST TIER.—Any regulated entity than-satisfactory rating for asset quality, shall be the duty of the court to issue such which, or any regulated entity-affiliated management, earnings, or liquidity, the Di- injunction.’’. party who— rector may (if the deficiency is not cor- SEC. 353. PREJUDGMENT ATTACHMENT. ‘‘(A) violates any provision of this title, rected) deem the regulated entity to be en- The Housing and Community Development any provision of any of the authorizing stat- gaging in an unsafe or unsound practice for Act of 1992 is amended by inserting after sec- utes, or any order, condition, rule, or regula- purposes of this subsection.’’; tion 1375 (12 U.S.C. 4635) the following new tion under any such title or statute, except (2) in subsection (c)(2), by striking ‘‘enter- section: that the Director may not, pursuant to this prise, executive officer, or director’’ and in- section, enforce compliance with any hous- ‘‘SEC. 1375A. PREJUDGMENT ATTACHMENT. serting ‘‘regulated entity or regulated enti- ing goal established under subpart B of part ‘‘(a) IN GENERAL.—In any action brought ty-affiliated party’’; and 2 of subtitle A of this title, with section 1336 pursuant to this title, or in actions brought (3) in subsection (d)— or 1337 of this title, with subsection (m) or in aid of, or to enforce an order in, any ad- (A) in the matter preceding paragraph (1), (n) of section 309 of the Federal National ministrative or other civil action for money by striking ‘‘enterprise, executive officer, or Mortgage Association Charter Act (12 U.S.C. damages, restitution, or civil money pen- director’’ and inserting ‘‘regulated entity or 1723a(m), (n)), with subsection (e) or (f) of alties brought pursuant to this title, the regulated entity-affiliated party’’; section 307 of the Federal Home Loan Mort- court may, upon application of the Director (B) in paragraph (1)— gage Corporation Act (12 U.S.C. 1456(e), (f)), or Attorney General, as applicable, issue a (i) by striking ‘‘an executive officer or a di- or with paragraph (5) or (12) of section 10(j) restraining order that— rector’’ and inserting ‘‘a regulated entity af- of the Federal Home Loan Bank Act; ‘‘(1) prohibits any person subject to the filiated party’’; and ‘‘(B) violates any final or temporary order proceeding from withdrawing, transferring, (ii) by inserting ‘‘(including reimburse- or notice issued pursuant to this title; removing, dissipating, or disposing of any ment of compensation under section 1318)’’ ‘‘(C) violates any condition imposed in funds, assets or other property; and after ‘‘reimbursement’’; writing by the Director in connection with ‘‘(2) appoints a person on a temporary basis (C) in paragraph (6), by striking ‘‘and’’ at the grant of any application or other request to administer the restraining order. the end; by such regulated entity; or ‘‘(b) STANDARD.— (D) by redesignating paragraph (7) as para- ‘‘(D) violates any written agreement be- ‘‘(1) SHOWING.—Rule 65 of the Federal Rules tween the regulated entity and the Director, graph (8); and of Civil Procedure shall apply with respect to (E) by inserting after paragraph (6) the fol- shall forfeit and pay a civil money penalty of any proceeding under subsection (a) without not more than $10,000 for each day during lowing new paragraph: regard to the requirement of such rule that ‘‘(7) to effect an attachment on a regulated which such violation continues. the applicant show that the injury, loss, or ‘‘(2) SECOND TIER.—Notwithstanding para- entity or regulated entity-affiliated party damage is irreparable and immediate. subject to an order under this section or sec- graph (1)— ‘‘(2) STATE PROCEEDING.—If, in the case of tion 1372; and’’. ‘‘(A) if a regulated entity, or a regulated any proceeding in a State court, the court entity-affiliated party— SEC. 352. TEMPORARY CEASE-AND-DESIST PRO- determines that rules of civil procedure ‘‘(i) commits any violation described in CEEDINGS. available under the laws of such State pro- Section 1372 of the Housing and Commu- any subparagraph of paragraph (1); vide substantially similar protections to a nity Development Act of 1992 (12 U.S.C. 4632) ‘‘(ii) recklessly engages in an unsafe or un- party’s right to due process as Rule 65 (as is amended— sound practice in conducting the affairs of modified with respect to such proceeding by (1) by striking subsection (a) and inserting such regulated entity; or paragraph (1)), the relief sought under sub- the following new subsection: ‘‘(iii) breaches any fiduciary duty; and section (a) may be requested under the laws ‘‘(a) GROUNDS FOR ISSUANCE.—Whenever ‘‘(B) the violation, practice, or breach— the Director determines that the violation or of such State.’’. ‘‘(i) is part of a pattern of misconduct; threatened violation or the unsafe or un- SEC. 354. ENFORCEMENT AND JURISDICTION. ‘‘(ii) causes or is likely to cause more than sound practice or practices specified in the Section 1375 of the Housing and Commu- a minimal loss to such regulated entity; or notice of charges served upon the regulated nity Development Act of 1992 (12 U.S.C. 4635) ‘‘(iii) results in pecuniary gain or other entity or any regulated entity-affiliated is amended— benefit to such party, party pursuant to section 1371(a), or the con- (1) by striking subsection (a) and inserting the regulated entity or regulated entity-af- tinuation thereof, is likely to cause insol- the following new subsection: filiated party shall forfeit and pay a civil vency or significant dissipation of assets or ‘‘(a) ENFORCEMENT.—The Director may, in penalty of not more than $50,000 for each day earnings of the regulated entity, or is likely the discretion of the Director, apply to the during which such violation, practice, or to weaken the condition of the regulated en- United States District Court for the District breach continues. tity prior to the completion of the pro- of Columbia, or the United States district ‘‘(3) THIRD TIER.—Notwithstanding para- ceedings conducted pursuant to sections 1371 court within the jurisdiction of which the graphs (1) and (2), any regulated entity and 1373, the Director may issue a temporary headquarters of the regulated entity is lo- which, or any regulated entity-affiliated order requiring the regulated entity or such cated, for the enforcement of any effective party who— party to cease and desist from any such vio- and outstanding notice or order issued under ‘‘(A) knowingly— lation or practice and to take affirmative ac- this subtitle or subtitle B, or request that ‘‘(i) commits any violation or engages in tion to prevent or remedy such insolvency, the Attorney General of the United States any conduct described in any subparagraph dissipation, condition, or prejudice pending bring such an action. Such court shall have of paragraph (1); completion of such proceedings. Such order jurisdiction and power to order and require ‘‘(ii) engages in any unsafe or unsound may include any requirement authorized compliance with such notice or order.’’; and practice in conducting the affairs of such under section 1371(d).’’; (2) in subsection (b), by striking ‘‘or 1376’’ regulated entity; or (2) in subsection (b), by striking ‘‘enter- and inserting ‘‘1376, or 1377’’. ‘‘(iii) breaches any fiduciary duty; and prise, executive officer, or director’’ and in- SEC. 355. CIVIL MONEY PENALTIES. ‘‘(B) knowingly or recklessly causes a sub- serting ‘‘regulated entity or regulated enti- Section 1376 of the Housing and Commu- stantial loss to such regulated entity or a ty-affiliated party’’; nity Development Act of 1992 (12 U.S.C. 4636) substantial pecuniary gain or other benefit (3) in subsection (d)— is amended— to such party by reason of such violation, (A) by striking ‘‘An enterprise, executive (1) in subsection (a)— practice, or breach, officer, or director’’ and inserting ‘‘A regu- (A) in the matter preceding paragraph (1), shall forfeit and pay a civil penalty in an lated entity or regulated entity-affiliated by striking ‘‘, or any executive officer or di- amount not to exceed the applicable max- party’’; and rector’’ and inserting ‘‘or any regulated-enti- imum amount determined under paragraph (B) by striking ‘‘the enterprise, executive ty affiliated party’’; and (4) for each day during which such violation, officer, or director’’ and inserting ‘‘the regu- (B) in paragraph (1)— practice, or breach continues. lated entity or regulated entity-affiliated (i) by striking ‘‘the Federal National Mort- ‘‘(4) MAXIMUM AMOUNTS OF PENALTIES FOR party’’; and gage Association Charter Act, the Federal ANY VIOLATION DESCRIBED IN PARAGRAPH (3).—

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00074 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.018 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3263 The maximum daily amount of any civil pen- ther participation by such party, in any ‘‘(1) participate in any manner in the con- alty which may be assessed pursuant to manner, in the conduct of the affairs of any duct of the affairs of any regulated entity; paragraph (3) for any violation, practice, or regulated entity. ‘‘(2) solicit, procure, transfer, attempt to breach described in such paragraph is— ‘‘(b) SUSPENSION ORDER.— transfer, vote, or attempt to vote any proxy, ‘‘(A) in the case of any person other than a ‘‘(1) SUSPENSION OR PROHIBITION AUTHOR- consent, or authorization with respect to regulated entity, an amount not to exceed ITY.—If the Director serves written notice any voting rights in any regulated entity; $2,000,000; and under subsection (a) to any regulated entity- ‘‘(3) violate any voting agreement pre- ‘‘(B) in the case of any regulated entity, affiliated party of the Director’s intention to viously approved by the Director; or $2,000,000.’’; issue an order under such subsection, the Di- ‘‘(4) vote for a director, or serve or act as (3) in subsection (c)(1)(B), by striking ‘‘en- rector may— a regulated entity-affiliated party. terprise, executive officer, or director’’ and ‘‘(A) suspend such party from office or pro- ‘‘(e) INDUSTRY-WIDE PROHIBITION.— inserting ‘‘regulated entity or regulated en- hibit such party from further participation ‘‘(1) IN GENERAL.—Except as provided in tity-affiliated party’’; in any manner in the conduct of the affairs paragraph (2), any person who, pursuant to (4) in subsection (d), by striking the first of the regulated entity, if the Director— an order issued under this section, has been sentence and inserting the following: ‘‘If a ‘‘(i) determines that such action is nec- removed or suspended from office in a regu- regulated entity or regulated entity-affili- essary for the protection of the regulated en- lated entity or prohibited from participating ated party fails to comply with an order of tity; and in the conduct of the affairs of a regulated the Director imposing a civil money penalty ‘‘(ii) serves such party with written notice entity may not, while such order is in effect, under this section, after the order is no of the suspension order; and continue or commence to hold any office in, longer subject to review as provided under ‘‘(B) prohibit the regulated entity from re- or participate in any manner in the conduct subsection (c)(1) and section 1374, the Direc- leasing to or on behalf of the regulated enti- of the affairs of, any regulated entity. tor may, in the discretion of the Director, ty-affiliated party any compensation or ‘‘(2) EXCEPTION IF DIRECTOR PROVIDES WRIT- bring an action in the United States District other payment of money or other thing of TEN CONSENT.—If, on or after the date an Court for the District of Columbia, or the current or potential value in connection order is issued under this section which re- United States district court within the juris- with any resignation, removal, retirement, moves or suspends from office any regulated diction of which the headquarters of the reg- or other termination of employment or of- entity-affiliated party or prohibits such ulated entity is located, to obtain a mone- fice of the party. party from participating in the conduct of tary judgment against the regulated entity ‘‘(2) EFFECTIVE PERIOD.—Any suspension the affairs of a regulated entity, such party or regulated entity affiliated party and such order issued under this subsection— receives the written consent of the Director, other relief as may be available, or request ‘‘(A) shall become effective upon service; the order shall, to the extent of such con- that the Attorney General of the United and sent, cease to apply to such party with re- States bring such an action.’’; and ‘‘(B) unless a court issues a stay of such spect to the regulated entity described in the (5) in subsection (g), by striking ‘‘sub- order under subsection (g) of this section, written consent. If the Director grants such section (b)(3)’’ and inserting ‘‘this section, shall remain in effect and enforceable until— a written consent, it shall publicly disclose unless authorized by the Director by rule, ‘‘(i) the date the Director dismisses the such consent. regulation, or order’’. charges contained in the notice served under ‘‘(3) VIOLATION OF PARAGRAPH (1) TREATED SEC. 356. REMOVAL AND PROHIBITION AUTHOR- subsection (a) with respect to such party; or AS VIOLATION OF ORDER.—Any violation of ITY. ‘‘(ii) the effective date of an order issued paragraph (1) by any person who is subject to (a) IN GENERAL.—Subtitle C of title XIII of by the Director to such party under sub- an order described in such subsection shall the Housing and Community Development section (a). be treated as a violation of the order. Act of 1992 is amended— ‘‘(3) COPY OF ORDER.—If the Director issues ‘‘(f) APPLICABILITY.—This section shall (1) by redesignating sections 1377, 1378, a suspension order under this subsection to only apply to a person who is an individual, 1379, 1379A, and 1379B (12 U.S.C. 4637–41) as any regulated entity-affiliated party, the Di- unless the Director specifically finds that it sections 1379, 1379A, 1379B, 1379C, and 1379D, rector shall serve a copy of such order on should apply to a corporation, firm, or other respectively; and any regulated entity with which such party business enterprise. ‘‘(g) STAY OF SUSPENSION AND PROHIBITION (2) by inserting after section 1376 (12 U.S.C. is affiliated at the time such order is issued. OF REGULATED ENTITY-AFFILIATED PARTY.— 4636) the following new section: ‘‘(c) NOTICE, HEARING, AND ORDER.—A no- tice of intention to remove a regulated enti- Within 10 days after any regulated entity-af- ‘‘SEC. 1377. REMOVAL AND PROHIBITION AU- filiated party has been suspended from office THORITY. ty-affiliated party from office or to prohibit such party from participating in the conduct and/or prohibited from participation in the ‘‘(a) AUTHORITY TO ISSUE ORDER.—When- of the affairs of a regulated entity shall con- conduct of the affairs of a regulated entity ever the Director determines that— tain a statement of the facts constituting under this section, such party may apply to ‘‘(1) any regulated entity-affiliated party grounds for such action, and shall fix a time the United States District Court for the Dis- has, directly or indirectly— and place at which a hearing will be held on trict of Columbia, or the United States dis- ‘‘(A) violated— such action. Such hearing shall be fixed for trict court for the judicial district in which ‘‘(i) any law or regulation; a date not earlier than 30 days nor later than the headquarters of the regulated entity is ‘‘(ii) any cease-and-desist order which has 60 days after the date of service of such no- located, for a stay of such suspension and/or become final; tice, unless an earlier or a later date is set prohibition and any prohibition under sub- ‘‘(iii) any condition imposed in writing by by the Director at the request of (1) such section (b)(1)(B) pending the completion of the Director in connection with the grant of party, and for good cause shown, or (2) the the administrative proceedings pursuant to any application or other request by such reg- Attorney General of the United States. Un- the notice served upon such party under this ulated entity; or less such party shall appear at the hearing in section, and such court shall have jurisdic- ‘‘(iv) any written agreement between such person or by a duly authorized representa- tion to stay such suspension and/or prohibi- regulated entity and the Director; tive, such party shall be deemed to have con- tion. ‘‘(B) engaged or participated in any unsafe sented to the issuance of an order of such re- ‘‘(h) SUSPENSION OR REMOVAL OF REGU- or unsound practice in connection with any moval or prohibition. In the event of such LATED ENTITY-AFFILIATED PARTY CHARGED regulated entity; or consent, or if upon the record made at any WITH FELONY.— ‘‘(C) committed or engaged in any act, such hearing the Director shall find that any ‘‘(1) SUSPENSION OR PROHIBITION.— omission, or practice which constitutes a of the grounds specified in such notice have ‘‘(A) IN GENERAL.—Whenever any regulated breach of such party’s fiduciary duty; been established, the Director may issue entity-affiliated party is charged in any in- ‘‘(2) by reason of the violation, practice, or such orders of suspension or removal from formation, indictment, or complaint, with breach described in any subparagraph of office, or prohibition from participation in the commission of or participation in a paragraph (1)— the conduct of the affairs of the regulated crime involving dishonesty or breach of trust ‘‘(A) such regulated entity has suffered or entity, as it may deem appropriate, together which is punishable by imprisonment for a will probably suffer financial loss or other with an order prohibiting compensation de- term exceeding one year under State or Fed- damage; or scribed in subsection (b)(1)(B). Any such eral law, the Director may, if continued serv- ‘‘(B) such party has received financial gain order shall become effective at the expira- ice or participation by such party may pose or other benefit by reason of such violation, tion of 30 days after service upon such regu- a threat to the regulated entity or impair practice, or breach; and lated entity and such party (except in the public confidence in the regulated entity, by ‘‘(3) such violation, practice, or breach— case of an order issued upon consent, which written notice served upon such party— ‘‘(A) involves personal dishonesty on the shall become effective at the time specified ‘‘(i) suspend such party from office or pro- part of such party; or therein). Such order shall remain effective hibit such party from further participation ‘‘(B) demonstrates willful or continuing and enforceable except to such extent as it is in any manner in the conduct of the affairs disregard by such party for the safety or stayed, modified, terminated, or set aside by of any regulated entity; and soundness of such regulated entity, the Di- action of the Director or a reviewing court. ‘‘(ii) prohibit the regulated entity from re- rector may serve upon such party a written ‘‘(d) PROHIBITION OF CERTAIN SPECIFIC AC- leasing to or on behalf of the regulated enti- notice of the Director’s intention to remove TIVITIES.—Any person subject to an order ty-affiliated party any compensation or such party from office or to prohibit any fur- issued under this section shall not— other payment of money or other thing of

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00075 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.018 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3264 CONGRESSIONAL RECORD — HOUSE May 8, 2008

current or potential value in connection ‘‘(4) HEARING REGARDING CONTINUED PAR- clerk of the court to the Director, and there- with the period of any such suspension or TICIPATION.—Within 30 days from service of upon the Director shall file in the court the with any resignation, removal, retirement, any notice of suspension or order of removal record in the proceeding, as provided in sec- or other termination of employment or of- issued pursuant to paragraph (1) or (2) of this tion 2112 of title 28, United States Code. fice of the party. subsection, the regulated entity-affiliated Upon the filing of such petition, such court ‘‘(B) PROVISIONS APPLICABLE TO NOTICE.— party concerned may request in writing an shall have jurisdiction, which upon the filing ‘‘(i) COPY.—A copy of any notice under opportunity to appear before the Director to of the record shall (except as provided in the paragraph (1)(A) shall also be served upon show that the continued service to or par- last sentence of paragraph (1)) be exclusive, the regulated entity. ticipation in the conduct of the affairs of the to affirm, modify, terminate, or set aside, in ‘‘(ii) EFFECTIVE PERIOD.—A suspension or regulated entity by such party does not, or is whole or in part, the order of the Director. prohibition under subparagraph (A) shall re- not likely to, pose a threat to the interests Review of such proceedings shall be had as main in effect until the information, indict- of the regulated entity or threaten to impair provided in chapter 7 of title 5, United States ment, or complaint referred to in such sub- public confidence in the regulated entity. Code. The judgment and decree of the court paragraph is finally disposed of or until ter- Upon receipt of any such request, the Direc- shall be final, except that the same shall be minated by the Director. tor shall fix a time (not more than 30 days subject to review by the Supreme Court upon after receipt of such request, unless extended ‘‘(2) REMOVAL OR PROHIBITION.— certiorari, as provided in section 1254 of title at the request of such party) and place at ‘‘(A) IN GENERAL.—If a judgment of convic- 28, United States Code. tion or an agreement to enter a pretrial di- which such party may appear, personally or ‘‘(3) PROCEEDINGS NOT TREATED AS STAY.— through counsel, before one or more mem- version or other similar program is entered The commencement of proceedings for judi- bers of the Director or designated employees against a regulated entity-affiliated party in cial review under paragraph (2) shall not, un- of the Director to submit written materials connection with a crime described in para- less specifically ordered by the court, oper- (or, at the discretion of the Director, oral graph (1)(A), at such time as such judgment ate as a stay of any order issued by the Di- testimony) and oral argument. Within 60 is not subject to further appellate review, rector.’’. days of such hearing, the Director shall no- the Director may, if continued service or (b) CONFORMING AMENDMENTS.— tify such party whether the suspension or participation by such party may pose a (1) 1992 ACT.—Section 1317(f) of the Housing prohibition from participation in any man- threat to the regulated entity or impair pub- and Community Development Act of 1992 (12 ner in the conduct of the affairs of the regu- U.S.C. 4517(f)) is amended by striking ‘‘sec- lic confidence in the regulated entity, issue lated entity will be continued, terminated, and serve upon such party an order that— tion 1379B’’ and inserting ‘‘section 1379D’’. or otherwise modified, or whether the order (2) FANNIE MAE CHARTER ACT.—The second ‘‘(i) removes such party from office or pro- removing such party from office or prohib- hibits such party from further participation sentence of subsection (b) of section 308 of iting such party from further participation the Federal National Mortgage Association in any manner in the conduct of the affairs in any manner in the conduct of the affairs of the regulated entity without the prior Charter Act (12 U.S.C. 1723(b)) is amended by of the regulated entity, and prohibiting com- striking ‘‘The’’ and inserting ‘‘Except to the written consent of the Director; and pensation in connection with termination ‘‘(ii) prohibits the regulated entity from extent that action under section 1377 of the will be rescinded or otherwise modified. Such Housing and Community Development Act of releasing to or on behalf of the regulated en- notification shall contain a statement of the tity-affiliated party any compensation or 1992 temporarily results in a lesser number, basis for the Director’s decision, if adverse to the’’. other payment of money or other thing of such party. The Director is authorized to (3) FREDDIE MAC ACT.—The second sentence current or potential value in connection prescribe such rules as may be necessary to with the termination of employment or of- of subparagraph (A) of section 303(a)(2) of the effectuate the purposes of this subsection. Federal Home Loan Mortgage Corporation fice of the party. ‘‘(i) HEARINGS AND JUDICIAL REVIEW.— Act (12 U.S.C. 1452(a)(2)(A)) is amended by ‘‘(B) PROVISIONS APPLICABLE TO ORDER.— ‘‘(1) VENUE AND PROCEDURE.—Any hearing striking ‘‘The’’ and inserting ‘‘Except to the ‘‘(i) COPY.—A copy of any order under para- provided for in this section shall be held in extent that action under section 1377 of the graph (2)(A) shall also be served upon the the District of Columbia or in the Federal ju- Housing and Community Development Act of regulated entity, whereupon the regulated dicial district in which the headquarters of entity-affiliated party who is subject to the the regulated entity is located, unless the 1992 temporarily results in a lesser number, order (if a director or an officer) shall cease party afforded the hearing consents to an- the’’. to be a director or officer of such regulated other place, and shall be conducted in ac- SEC. 357. CRIMINAL PENALTY. entity. cordance with the provisions of chapter 5 of Subtitle C of title XIII of the Housing and ‘‘(ii) EFFECT OF ACQUITTAL.—A finding of title 5, United States Code. After such hear- Community Development Act of 1992 (12 not guilty or other disposition of the charge ing, and within 90 days after the Director has U.S.C. 4631 et seq.) is amended by inserting shall not preclude the Director from insti- notified the parties that the case has been after section 1377 (as added by the preceding tuting proceedings after such finding or dis- submitted to it for final decision, it shall provisions of this title) the following new position to remove such party from office or render its decision (which shall include find- section: to prohibit further participation in regulated ings of fact upon which its decision is predi- ‘‘SEC. 1378. CRIMINAL PENALTY. entity affairs, and to prohibit compensation cated) and shall issue and serve upon each ‘‘Whoever, being subject to an order in ef- or other payment of money or other thing of party to the proceeding an order or orders fect under section 1377, without the prior current or potential value in connection consistent with the provisions of this sec- written approval of the Director, knowingly with any resignation, removal, retirement, tion. Judicial review of any such order shall participates, directly or indirectly, in any or other termination of employment or of- be exclusively as provided in this subsection. manner (including by engaging in an activity fice of the party, pursuant to subsections (a), Unless a petition for review is timely filed in specifically prohibited in such an order) in (d), or (e) of this section. a court of appeals of the United States, as the conduct of the affairs of any regulated ‘‘(iii) EFFECTIVE PERIOD.—Any notice of provided in paragraph (2), and thereafter entity shall be fined not more than $1,000,000, suspension or order of removal issued under until the record in the proceeding has been imprisoned for not more than 5 years, or this subsection shall remain effective and filed as so provided, the Director may at any both.’’. outstanding until the completion of any time, upon such notice and in such manner SEC. 358. SUBPOENA AUTHORITY. hearing or appeal authorized under para- as it shall deem proper, modify, terminate, Section 1379D(c) of the Housing and Com- graph (4) unless terminated by the Director. or set aside any such order. Upon such filing munity Development Act of 1992 (12 U.S.C. ‘‘(3) AUTHORITY OF REMAINING BOARD MEM- of the record, the Director may modify, ter- 4641(c)), as so redesignated by section BERS.—If at any time, because of the suspen- minate, or set aside any such order with per- 356(a)(1) of this title, is further amended— sion of one or more directors pursuant to mission of the court. (1) by striking ‘‘request the Attorney Gen- this section, there shall be on the board of ‘‘(2) REVIEW OF ORDER.—Any party to any eral of the United States to’’ and inserting ‘‘, directors of a regulated entity less than a proceeding under paragraph (1) may obtain a in the discretion of the Director,’’; quorum of directors not so suspended, all review of any order served pursuant to para- (2) by inserting ‘‘or request that the Attor- powers and functions vested in or exercisable graph (1) (other than an order issued with ney General of the United States bring such by such board shall vest in and be exer- the consent of the regulated entity or the an action,’’ after ‘‘District of Columbia,’’; cisable by the director or directors on the regulated entity-affiliated party concerned, and board not so suspended, until such time as or an order issued under subsection (h) of (3) by striking ‘‘or may, under the direc- there shall be a quorum of the board of direc- this section) by the filing in the United tion and control of the Attorney General, tors. In the event all of the directors of a States Court of Appeals for the District of bring such an action’’. regulated entity are suspended pursuant to Columbia Circuit or court of appeals of the SEC. 359. CONFORMING AMENDMENTS. this section, the Director shall appoint per- United States for the circuit in which the Subtitle C of title XIII of the Housing and sons to serve temporarily as directors in headquarters of the regulated entity is lo- Community Development Act of 1992 (12 their place and stead pending the termi- cated, within 30 days after the date of service U.S.C. 4631 et seq.), as amended by the pre- nation of such suspensions, or until such of such order, a written petition praying ceding provisions of this title, is amended— time as those who have been suspended cease that the order of the Director be modified, (1) in section 1372(c)(1) (12 U.S.C. 4632(c)), to be directors of the regulated entity and terminated, or set aside. A copy of such peti- by striking ‘‘that enterprise’’ and inserting their respective successors take office. tion shall be forthwith transmitted by the ‘‘that regulated entity’’;

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00076 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.018 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3265 (2) in section 1379 (12 U.S.C. 4637), as so re- SEC. 362. REPORT ON PORTFOLIO OPERATIONS, ance Act (12 U.S.C.1821(t)(2)(A)) is amended designated by section 356(a)(1) of this title— SAFETY AND SOUNDNESS, AND MIS- by adding at the end the following new (A) by inserting ‘‘, or of a regulated entity- SION OF ENTERPRISES. clause: Not later than the expiration of the 12- affiliated party,’’ before ‘‘shall not affect’’; ‘‘(vii) The Federal Housing Finance Agen- month period beginning on the effective date and cy.’’. under section 365, the Director of the Federal (B) by striking ‘‘such director or executive (h) 1997 EMERGENCY SUPPLEMENTAL APPRO- Housing Finance Agency shall submit a re- officer’’ each place such term appears and in- PRIATIONS ACT.—Section 10001 of the 1997 port to the Congress which shall include— Emergency Supplemental Appropriations serting ‘‘such director, executive officer, or (1) a description of the portfolio holdings of regulated entity-affiliated party’’; Act for Recovery From Natural Disasters, the enterprises (as such term is defined in and for Overseas Peacekeeping Efforts, In- (3) in section 1379A (12 U.S.C. 4638), as so section 1303 of the Housing and Community redesignated by section 356(a)(1) of this title, cluding Those In Bosnia (42 U.S.C. 3548) is Development Act of 1992 (12 U.S.C. 4502) in amended— by inserting ‘‘or against a regulated entity- mortgages (including whole loans and mort- affiliated party,’’ before ‘‘or impair’’; (1) by striking ‘‘the Government National gage-backed securities), non-mortgages, and Mortgage Association, and the Office of Fed- (4) by striking ‘‘An enterprise’’ each place other assets; such term appears in such subtitle and in- eral Housing Enterprise Oversight’’ and in- (2) a description of the risk implications serting ‘‘and the Government National Mort- serting ‘‘A regulated entity’’; for the enterprises of such holdings and the (5) by striking ‘‘an enterprise’’ each place gage Association’’; and consequent risk management undertaken by (2) by striking ‘‘, the Government National such term appears in such subtitle and in- the enterprises (including the use of deriva- Mortgage Association, or the Office of Fed- serting ‘‘a regulated entity’’; tives for hedging purposes), compared with eral Housing Enterprise Oversight’’ and in- (6) by striking ‘‘the enterprise’’ each place off-balance sheet liabilities of the enter- serting ‘‘or the Government National Mort- such term appears in such subtitle and in- prises (including mortgage-backed securities gage Association’’. serting ‘‘the regulated entity’’; and guaranteed by the enterprises); (i) NATIONAL HOMEOWNERSHIP TRUST ACT.— (7) by striking ‘‘any enterprise’’ each place (3) an analysis of portfolio holdings for Section 302(b)(4) of the Cranston-Gonzalez such term appears in such subtitle and in- safety and soundness purposes; National Affordable Housing Act (42 U.S.C. serting ‘‘any regulated entity’’. (4) an assessment of whether portfolio 12851(b)(4)) is amended by striking ‘‘the holdings fulfill the mission purposes of the CHAPTER 5—GENERAL PROVISIONS chairperson of the Federal Housing Finance enterprises under the Federal National Mort- Board’’ and inserting ‘‘the Director of the SEC. 361. BOARDS OF ENTERPRISES. gage Association Charter Act and the Fed- Federal Housing Finance Agency’’. eral Home Loan Mortgage Corporation Act; SEC. 364. STUDY OF ALTERNATIVE SECONDARY (a) FANNIE MAE.— and MARKET SYSTEMS. (1) IN GENERAL.—Section 308(b) of the Fed- (5) an analysis of the potential systemic (a) IN GENERAL.—The Director of the Fed- eral National Mortgage Association Charter risk implications for the enterprises, the eral Housing Finance Agency, in consulta- Act (12 U.S.C. 1723(b)) is amended— housing and capital markets, and the finan- tion with the Board of Governors of the Fed- (A) in the first sentence, by striking cial system of portfolio holdings, and wheth- eral Reserve System, the Secretary of the ‘‘eighteen persons, five of whom shall be ap- er such holdings should be limited or reduced Treasury, and the Secretary of Housing and pointed annually by the President of the over time. Urban Development, shall conduct a com- United States, and the remainder of whom’’ SEC. 363. CONFORMING AND TECHNICAL AMEND- prehensive study of the effects on financial and inserting ‘‘13 persons, or such other MENTS. and housing finance markets of alternatives number that the Director determines appro- (a) 1992 ACT.—Title XIII of the Housing and to the current secondary market system for priate, who’’; Community Development Act of 1992 is housing finance, taking into consideration (B) in the second sentence, by striking ‘‘ap- amended by striking section 1383 (12 U.S.C. changes in the structure of financial and pointed by the President’’; 1451 note). housing finance markets and institutions (C) in the third sentence— (b) TITLE 18, UNITED STATES CODE.—Sec- since the creation of the Federal National (i) by striking ‘‘appointed or’’; and tion 1905 of title 18, United States Code, is Mortgage Association and the Federal Home (ii) by striking ‘‘, except that any such ap- amended by striking ‘‘Office of Federal Loan Mortgage Corporation. pointed member may be removed from office Housing Enterprise Oversight’’ and inserting (b) CONTENTS.—The study under this sec- by the President for good cause’’; ‘‘Federal Housing Finance Agency’’. tion shall— (D) in the fourth sentence, by striking (c) FLOOD DISASTER PROTECTION ACT OF (1) include, among the alternatives to the ‘‘elective’’; and 1973.—Section 102(f)(3)(A) of the Flood Dis- current secondary market system analyzed— (E) by striking the fifth sentence. aster Protection Act of 1973 (42 U.S.C. (A) repeal of the chartering Acts for the 4012a(f)(3)(A)) is amended by striking ‘‘Direc- (2) TRANSITIONAL PROVISION.—The amend- Federal National Mortgage Association and tor of the Office of Federal Housing Enter- ments made by paragraph (1) shall not apply the Federal Home Loan Mortgage Corpora- prise Oversight of the Department of Hous- to any appointed position of the board of di- tion; ing and Urban Development’’ and inserting rectors of the Federal National Mortgage As- (B) establishing bank-like mechanisms for ‘‘Director of the Federal Housing Finance granting new charters for limited purposed sociation until the expiration of the annual Agency’’. mortgage securitization entities; term for such position during which the ef- (d) DEPARTMENT OF HOUSING AND URBAN (C) permitting the Director of the Federal fective date under section 365 occurs. DEVELOPMENT ACT.—Section 5 of the Depart- Housing Finance Agency to grant new char- (b) FREDDIE MAC.— ment of Housing and Urban Development Act ters for limited purpose mortgage (1) IN GENERAL.—Section 303(a)(2) of the (42 U.S.C. 3534) is amended by striking sub- section (d). securitization entities, which shall include Federal Home Loan Mortgage Corporation analyzing the terms on which such charters Act (12 U.S.C. 1452(a)(2)) is amended— (e) TITLE 5, UNITED STATES CODE.— (1) DIRECTOR’S PAY RATE.—Section 5313 of should be granted, including whether such (A) in subparagraph (A)— charters should be sold, or whether such (i) in the first sentence, by striking ‘‘18 title 5, United States Code, is amended by striking the item relating to the Director of charters and the charters for the Federal Na- persons, 5 of whom shall be appointed annu- tional Mortgage Association and the Federal ally by the President of the United States the Office of Federal Housing Enterprise Oversight, Department of Housing and Urban Home Loan Mortgage Corporation should be and the remainder of whom’’ and inserting taxed or otherwise assessed a monetary ‘‘13 persons, or such other number as the Di- Development and inserting the following new item: price; and rector determines appropriate, who’’; and ‘‘Director of the Federal Housing Finance (D) such other alternatives as the Director (ii) in the second sentence, by striking ‘‘ap- Agency.’’. considers appropriate; pointed by the President of the United (2) EXCLUSION FROM SENIOR EXECUTIVE (2) examine all of the issues involved in States’’; SERVICE.—Section 3132(a)(1)(D) of title 5, making the transition to a completely pri- (B) in subparagraph (B)— United States Code, is amended— vate secondary mortgage market system; (i) by striking ‘‘such or’’; and (A) by striking ‘‘the Federal Housing Fi- (3) examine the technological advance- (ii) by striking ‘‘, except that any ap- nance Board,’’; and ments the private sector has made in pro- pointed member may be removed from office (B) by striking ‘‘the Office of Federal Hous- viding liquidity in the secondary mortgage by the President for good cause’’; and ing Enterprise Oversight of the Department market and how such advancements have af- (C) in subparagraph (C)— of Housing and Urban Development’’ and in- fected liquidity in the secondary mortgage (i) by striking the first sentence; and serting ‘‘the Federal Housing Finance Agen- market; and (ii) by striking ‘‘elective’’. cy’’. (4) examine how taxpayers would be im- (2) TRANSITIONAL PROVISION.—The amend- (f) INSPECTOR GENERAL ACT OF 1978.—Sec- pacted by each alternative system, including ments made by paragraph (1) shall not apply tion 8G(a)(2) of the Inspector General Act of the complete privatization of the Federal to any appointed position of the board of di- 1978 (5 U.S.C. App.) is amended by striking National Mortgage Association and the Fed- rectors of the Federal Home Loan Mortgage ‘‘Federal Housing Finance Board’’ and in- eral Home Loan Mortgage Corporation. Corporation until the expiration of the an- serting ‘‘Federal Housing Finance Agency’’. (c) REPORT.—The Director of the Federal nual term for such position during which the (g) FEDERAL DEPOSIT INSURANCE ACT.—Sec- Housing Finance Agency shall submit a re- effective date under section 365 occurs. tion 11(t)(2)(A) of the Federal Deposit Insur- port to the Congress on the study not later

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00077 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.018 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3266 CONGRESSIONAL RECORD — HOUSE May 8, 2008 than the expiration of the 24-month period ing, risk management practices, derivatives, (3) in the paragraph heading, by striking beginning on the effective date under section project development, or organizational man- ‘‘APPOINTED’’ and inserting ‘‘INDEPENDENT’’; 365. agement, or such other knowledge or exper- and SEC. 365. EFFECTIVE DATE. tise as the Director may provide by regula- (4) by striking ‘‘appointive’’ each place Except as specifically provided otherwise tion. such term appears and inserting ‘‘inde- in this subtitle, this subtitle shall take ef- ‘‘(ii) CONSULTATION WITH BANKS.—In ap- pendent’’. fect on and the amendments made by this pointing other directors to serve on the (d) CONFORMING AMENDMENTS.—Section subtitle shall take effect on, and shall apply board of a Federal home loan bank, the Di- 7(f)(3) of the Federal Home Loan Bank Act beginning on, the expiration of the 6-month rector of the Federal Housing Finance Agen- (12 U.S.C. 1427(f)(3)) is amended— period beginning on the date of the enact- cy may consult with each Federal home loan (1) in the paragraph heading, by striking ment of this Act. bank about the knowledge, skills, and exper- ‘‘ELECTED’’ and inserting ‘‘MEMBER’’; and Subtitle B—Federal Home Loan Banks tise needed to assist the board in better ful- (2) by striking ‘‘elective’’ each place such term appears in the first and third sentences SEC. 371. DEFINITIONS. filling its responsibilities. Section 2 of the Federal Home Loan Bank ‘‘(D) CONFLICTS OF INTEREST.—Notwith- and inserting ‘‘member’’. (e) COMPENSATION.—Subsection (i) of sec- Act (12 U.S.C. 1422) is amended— standing subsection (f)(2), an independent di- tion 7 of the Federal Home Loan Bank Act (1) by striking paragraphs (1), (10), and (11); rector under this paragraph of a Bank may (12 U.S.C. 1427(i)) is amended to read as fol- (2) by redesignating paragraphs (2) through not, during such director’s term of office, serve as an officer of any Federal Home Loan lows: (9) as paragraphs (1) through (8), respec- ‘‘(i) DIRECTORS’ COMPENSATION.— tively; Bank or as a director or officer of any mem- ber of a Bank. ‘‘(1) IN GENERAL.—Each Federal home loan (3) by redesignating paragraphs (12) and bank may pay the directors on the board of (13) as paragraphs (9) and (10), respectively; ‘‘(E) COMMUNITY DEMOGRAPHICS.—In ap- pointing independent directors of a Bank directors for the bank reasonable and appro- and priate compensation for the time required of (4) by adding at the end the following: pursuant to this paragraph, the Director shall take into consideration the demo- such directors, and reasonable and appro- ‘‘(11) DIRECTOR.—The term ‘Director’ priate expenses incurred by such directors, means the Director of the Federal Housing graphic makeup of the community most served by the Affordable Housing Program of in connection with service on the board of di- Finance Agency. rectors, in accordance with resolutions ‘‘(12) AGENCY.—The term ‘Agency’ means the Bank pursuant to section 10(j).’’; (2) in the first sentence of subsection (b), adopted by the board of directors and subject the Federal Housing Finance Agency.’’. to the approval of the Director. SEC. 372. DIRECTORS. by striking ‘‘elective directorship’’ and in- serting ‘‘member directorship established ‘‘(2) ANNUAL REPORT BY THE BOARD.—The (a) ELECTION.—Section 7 of the Federal Director shall include, in the annual report Home Loan Bank Act (12 U.S.C. 1427) is pursuant to subsection (a)(2)’’; (3) in subsection (c)— submitted to the Congress pursuant to sec- amended— tion 1319B of the Federal Housing Enter- (1) by striking subsection (a) and inserting (A) by striking ‘‘elective’’ each place such term appears and inserting ‘‘member’’, ex- prises Financial Safety and Soundness Act of the following: 1992, information regarding the compensa- ‘‘(a) NUMBER; ELECTION; QUALIFICATIONS; cept— (i) in the second sentence, the second place tion and expenses paid by the Federal home CONFLICTS OF INTEREST.— loan banks to the directors on the boards of ‘‘(1) IN GENERAL.—The management of each such term appears; and (ii) each place such term appears in the directors of the banks.’’. Federal Home Loan Bank shall be vested in (f) TRANSITION RULE.—Any member of the fifth sentence; a board of 13 directors, or such other number board of directors of a Federal Home Loan (B) in the first sentence, by inserting after as the Director determines appropriate, each Bank serving as of the effective date under ‘‘less than one’’ the following: ‘‘or two, as de- of whom shall be a citizen of the United section 381 may continue to serve as a mem- termined by the board of directors of the ap- States. All directors of a Bank who are not ber of such board of directors for the remain- propriate Federal home loan bank,’’; and independent directors pursuant to paragraph der of the term of such office as provided in (C) in the second sentence— (3) shall be elected by the members. section 7 of the Federal Home Loan Bank (i) by inserting ‘‘(A) except as provided in ‘‘(2) MEMBER DIRECTORS.—A majority of the Act, as in effect before such effective date. directors of each Bank shall be officers or di- clause (B) of this sentence,’’ before ‘‘if at any time’’; and SEC. 373. FEDERAL HOUSING FINANCE AGENCY rectors of a member of such Bank that is lo- OVERSIGHT OF FEDERAL HOME cated in the district in which such Bank is (ii) by inserting before the period at the LOAN BANKS. located. end the following: ‘‘, and (B) clause (A) of The Federal Home Loan Bank Act (12 ‘‘(3) INDEPENDENT DIRECTORS.—At least this sentence shall not apply to the director- U.S.C. 1421 et seq.), other than in provisions two-fifths of the directors of each Bank shall ships of any Federal home loan bank result- of that Act added or amended otherwise by be independent directors, who shall be ap- ing from the merger of any two or more such this title, is amended— pointed by the Director of the Federal Hous- banks’’; and (1) by striking sections 2A and 2B (12 U.S.C. ing Finance Agency from a list of individuals (4) by striking ‘‘elective’’ each place such 1422a, 1422b); recommended by the Federal Housing Enter- term appears (except in subsections (c), (e), (2) in section 6 (12 U.S.C. 1426(b)(1))— prise Board. The Federal Housing Enterprise and (f)). (A) in subsection (b)(1), in the matter pre- Board may recommend individuals who are (b) TERMS.— ceding subparagraph (A), by striking ‘‘Fi- identified by the Board’s own independent (1) IN GENERAL.—Section 7(d) of the Federal nance Board approval’’ and inserting ‘‘ap- process or included on a list of individuals Home Loan Bank Act (12 U.S.C. 1427(d)) is proval by the Director’’; and recommended by the board of directors of amended— (B) in each of subsections (c)(4)(B) and the Bank involved, which shall be submitted (A) in the first sentence, by striking ‘‘3 (d)(2), by striking ‘‘Finance Board regula- to the Federal Housing Enterprise Board by years’’ and inserting ‘‘4 years’’; and tions’’ each place that term appears and in- such board of directors. The number of indi- (B) in the second sentence— serting ‘‘regulations of the Director’’; viduals on any such list submitted by a (i) by striking ‘‘Federal Home Loan Bank (3) in section 8 (12 U.S.C. 1428), in the sec- Bank’s board of directors shall be equal to at System Modernization Act of 1999’’ and in- tion heading, by striking ‘‘BY THE BOARD’’; least two times the number of independent serting ‘‘Federal Housing Finance Reform (4) in section 10(b) (12 U.S.C. 1430(b)), by directorships to be filled. All independent di- Act of 2008’’; and striking ‘‘by formal resolution’’; rectors appointed shall meet the following (ii) by striking ‘‘1/3’’ and inserting ‘‘1/4’’. (5) in section 10 (12 U.S.C. 1430), by adding criteria: (2) SAVINGS PROVISION.—The amendments at the end the following new subsection: ‘‘(A) IN GENERAL.—Each independent direc- made by paragraph (1) shall not apply to the ‘‘(k) MONITORING AND ENFORCING COMPLI- tor shall be a bona fide resident of the dis- term of office of any director of a Federal ANCE WITH AFFORDABLE HOUSING AND COMMU- trict in which such Bank is located. home loan bank who is serving as of the ef- NITY INVESTMENT PROGRAM REQUIREMENTS.— ‘‘(B) PUBLIC INTEREST DIRECTORS.—At least fective date of this subtitle under section The requirements under subsection (i) and (j) 2 of the independent directors under this 381, including any director elected to fill a that the Banks establish Community Invest- paragraph of each Bank shall be representa- vacancy in any such office. ment and Affordable Housing Programs, re- tives chosen from organizations with more (c) CONTINUED SERVICE OF INDEPENDENT DI- spectively, and contribute to the Affordable than a 2-year history of representing con- RECTORS AFTER EXPIRATION OF TERM.—Sec- Housing Program, shall be enforceable by sumer or community interests on banking tion 7(f)(2) of the Federal Home Loan Bank the Director with respect to the Banks in the services, credit needs, housing, community Act (12 U.S.C. 1427(f)(2)) is amended— same manner and to the same extent as the development, economic development, or fi- (1) in the second sentence, by striking ‘‘or housing goals under subpart B of part 2 of nancial consumer protections. the term of such office expires, whichever oc- subtitle A of title XIII of the Housing and ‘‘(C) OTHER DIRECTORS.— curs first’’; Community Development Act of 1992 (12 ‘‘(i) QUALIFICATIONS.—Each independent di- (2) by adding at the end the following new U.S.C. 4561 et seq.) are enforceable under sec- rector that is not a public interest director sentence: ‘‘An independent Bank director tion 1336 of such Act with respect to the Fed- under subparagraph (B) shall have dem- may continue to serve as a director after the eral National Mortgage Association and the onstrated knowledge of, or experience in, fi- expiration of the term of such director until Federal Home Loan Mortgage Corporation.’’; nancial management, auditing and account- a successor is appointed.’’; (6) in section 11 (12 U.S.C. 1431)—

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00078 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.019 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3267 (A) in subsection (b)— SEC. 375. SHARING OF INFORMATION BETWEEN (B) ‘‘government securities’’ within the (i) in the first sentence— FEDERAL HOME LOAN BANKS. meaning of section 3(a)(42) of the Securities (I) by striking ‘‘The Board’’ and inserting (a) IN GENERAL.—The Federal Home Loan Exchange Act of 1934; ‘‘The Office of Finance, as agent for the Bank Act is amended by inserting after sec- (C) excluded from the definition of ‘‘gov- Banks,’’; and tion 20 (12 U.S.C. 1440) the following new sec- ernment securities broker’’ within section (II) by striking ‘‘the Board’’ and inserting tion: 3(a)(43) of the Securities Exchange Act of ‘‘such Office’’; and ‘‘SEC. 20A. SHARING OF INFORMATION BETWEEN 1934; (ii) in the second and fourth sentences, by FEDERAL HOME LOAN BANKS. (D) excluded from the definition of ‘‘gov- striking ‘‘the Board’’ each place such term ‘‘(a) REGULATORY AUTHORITY.—The Direc- ernment securities dealer’’ within section appears and inserting ‘‘the Office of Fi- tor shall prescribe such regulations as may 3(a)(44) of the Securities Exchange Act of nance’’; be necessary to ensure that each Federal 1934; and (B) in subsection (c)— Home Loan Bank has access to information (E) ‘‘government securities’’ within the (i) by striking ‘‘the Board’’ the first place that the Bank needs to determine the nature meaning of section 2(a)(16) of the Investment such term appears and inserting ‘‘the Office and extent of its joint and several liability. Company Act of 1940. of Finance, as agent for the Banks,’’; and ‘‘(b) NO WAIVER OF PRIVILEGE.—The Direc- (d) EXEMPTION FROM REPORTING REQUIRE- (ii) by striking ‘‘the Board’’ the second tor shall not be deemed to have waived any MENTS.—The Federal Home Loan Banks shall place such term appears and inserting ‘‘such privilege applicable to any information con- be exempt from periodic reporting require- Office’’; and cerning a Federal Home Loan Bank by trans- ments pertaining to— (C) in subsection (f)— ferring, or permitting the transfer of, that (1) the disclosure of related party trans- (i) by striking the two commas after ‘‘per- information to any other Federal Home Loan actions that occur in the ordinary course of mit’’ and inserting ‘‘or’’; and Bank for the purpose of enabling the recipi- business of the Banks with their members; (ii) by striking the comma after ‘‘require’’; ent to evaluate the nature and extent of its and (7) in section 15 (12 U.S.C. 1435), by insert- joint and several liability.’’. (2) the disclosure of unregistered sales of (b) REGULATIONS.—The regulations re- ing ‘‘or the Director’’ after ‘‘the Board’’; equity securities. quired under the amendment made by sub- (8) in section 18 (12 U.S.C. 1438), by striking (e) TENDER OFFERS.—The Securities and section (a) shall be issued in final form not subsection (b); Exchange Commission’s rules relating to later than 6 months after the effective date (9) in section 21 (12 U.S.C. 1441)— tender offers shall not apply in connection under section 381 of this title. (A) in subsection (b)— with transactions in capital stock of the (i) in paragraph (5), by striking ‘‘Chair- SEC. 376. REORGANIZATION OF BANKS AND VOL- Federal Home Loan Banks. UNTARY MERGER. (f) REGULATIONS.—In issuing any final reg- person of the Federal Housing Finance Section 26 of the Federal Home Loan Bank ulations to implement provisions of this sec- Board’’ and inserting ‘‘Director’’; and Act (12 U.S.C. 1446) is amended— tion, the Securities and Exchange Commis- (ii) in the heading for paragraph (8), by (1) by inserting ‘‘(a) REORGANIZATION.—’’ sion shall consider the distinctive character- striking ‘‘FEDERAL HOUSING FINANCE BOARD’’ before ‘‘Whenever’’; and istics of the Federal Home Loan Banks when and inserting ‘‘DIRECTOR’’; and (2) by striking ‘‘liquidated or’’ each place evaluating the accounting treatment with (B) in subsection (i), in the heading for such phrase appears; respect to the payment to Resolution Fund- paragraph (2), by striking ‘‘FEDERAL HOUSING (3) by striking ‘‘liquidation or’’; and ing Corporation, the role of the combined fi- FINANCE BOARD’’ and inserting ‘‘DIRECTOR’’; (4) by adding at the end the following new nancial statements of the twelve Banks, the (10) in section 23 (12 U.S.C. 1443), by strik- subsection: accounting classification of redeemable cap- ing ‘‘Board of Directors of the Federal Hous- ‘‘(b) VOLUNTARY MERGERS.—Any two or ital stock, and the accounting treatment re- ing Finance Board’’ and inserting ‘‘Direc- more Banks may, with the approval of the lated to the joint and several nature of the tor’’; Director, and the approval of the boards of obligations of the Banks. (11) by striking ‘‘the Board’’ each place directors of the Banks involved, merge. The SEC. 378. COMMUNITY FINANCIAL INSTITUTION such term appears in such Act (except in sec- Director shall promulgate regulations estab- MEMBERS. tion 15 (12 U.S.C. 1435), section 21(f)(2) (12 lishing the conditions and procedures for the (a) TOTAL ASSET REQUIREMENT.—Paragraph U.S.C. 1441(f)(2)), subsections (a), (k)(2)(B)(i), consideration and approval of any such vol- (10) of section 2 of the Federal Home Loan and (n)(6)(C)(ii) of section 21A (12 U.S.C. untary merger, including the procedures for Bank Act (12 U.S.C. 1422(10)), as so redesig- 1441a), subsections (f)(2)(C), and (k)(7)(B)(ii) Bank member approval.’’. nated by section 371(3) of this title, is amend- of section 21B (12 U.S.C. 1441b), and the first ed by striking ‘‘$500,000,000’’ each place such SEC. 377. SECURITIES AND EXCHANGE COMMIS- two places such term appears in section 22 SION DISCLOSURE. term appears and inserting ‘‘$1,000,000,000’’. (12 U.S.C. 1442)) and inserting ‘‘the Direc- (b) USE OF ADVANCES FOR COMMUNITY DE- (a) IN GENERAL.—The Federal Home Loan VELOPMENT ACTIVITIES.—Section 10(a) of the tor’’; Banks shall be exempt from compliance Federal Home Loan Bank Act (12 U.S.C. (12) by striking ‘‘The Board’’ each place with— such term appears in such Act (except in sec- 1430(a)) is amended— (1) sections 13(e), 14(a), 14(c), and 17A of the (1) in paragraph (2)(B)— tions 7(e) (12 U.S.C. 1427(e)), and 11(b) (12 Securities Exchange Act of 1934 and related U.S.C. 1431(b)) and inserting ‘‘The Director’’; (A) by striking ‘‘and’’; and Commission regulations; and (B) by inserting ‘‘, and community develop- (13) by striking ‘‘the Board’s’’ each place (2) section 15 of that Act and related Secu- such term appears in such Act and inserting ment activities’’ before the period at the rities and Exchange Commission regulations end; ‘‘the Director’s’’; with respect to transactions in capital stock (14) by striking ‘‘The Board’s’’ each place (2) in paragraph (3)(E), by inserting ‘‘or of the Banks. community development activities’’ after such term appears in such Act and inserting (b) MEMBER EXEMPTION.—The members of ‘‘agriculture,’’; and ‘‘The Director’s’’; the Federal Home Loan Banks shall be ex- (3) in paragraph (6)— (15) by striking ‘‘the Finance Board’’ each empt from compliance with sections 13(d), (A) by striking ‘‘and’’; and place such term appears in such Act and in- 13(f), 13(g), 14(d), and 16 of the Securities Ex- (B) by inserting ‘‘, and ‘community devel- serting ‘‘the Director’’; change Act of 1934 and related Securities and opment activities’’’ before ‘‘shall’’. (16) by striking ‘‘Federal Housing Finance Exchange Commission regulations with re- Board’’ each place such term appears and in- spect to their ownership of, or transactions SEC. 379. TECHNICAL AND CONFORMING AMEND- MENTS. serting ‘‘Director’’; in, capital stock of the Federal Home Loan (17) in section 11(i) (12 U.S.C. 1431(i), by (a) RIGHT TO FINANCIAL PRIVACY ACT OF Banks. 1978.—Section 1113(o) of the Right to Finan- striking ‘‘the Chairperson of’’; and (c) EXEMPTED AND GOVERNMENT SECURI- cial Privacy Act of 1978 (12 U.S.C. 3413(o)) is (18) in section 21(e)(9) (12 U.S.C. 1441(e)(9)), TIES.— by striking ‘‘Chairperson of the’’. amended— (1) CAPITAL STOCK.—The capital stock (1) by striking ‘‘Federal Housing Finance SEC. 374. JOINT ACTIVITIES OF BANKS. issued by each of the Federal Home Loan Board’’ and inserting ‘‘Federal Housing Fi- Banks under section 6 of the Federal Home Section 11 of the Federal Home Loan Bank nance Agency’’; and Loan Bank Act are— (2) by striking ‘‘Federal Housing Finance Act (12 U.S.C. 1431) is amended by adding at (A) exempted securities within the mean- Board’s’’ and inserting ‘‘Federal Housing Fi- the end the following new subsection: ing of section 3(a)(2) of the Securities Act of nance Agency’s’’. ‘‘(l) JOINT ACTIVITIES.—Subject to the regu- 1933; and (b) RIEGLE COMMUNITY DEVELOPMENT AND lation of the Director, any two or more Fed- (B) ‘‘exempted securities’’ within the REGULATORY IMPROVEMENT ACT OF 1994.— meaning of section 3(a)(12)(A) of the Securi- eral Home Loan Banks may establish a joint Section 117(e) of the Riegle Community De- ties Exchange Act of 1934. office for the purpose of performing func- velopment and Regulatory Improvement Act (2) OTHER OBLIGATIONS.—The debentures, tions for, or providing services to, the Banks of 1994 (12 U.S.C. 4716(e)) is amended by strik- bonds, and other obligations issued under ing ‘‘Federal Housing Finance Board’’ and on a common or collective basis, or may re- section 11 of the Federal Home Loan Bank inserting ‘‘Federal Housing Finance Agen- quire that the Office of Finance perform such Act are— cy’’. functions or services, but only if the Banks (A) exempted securities within the mean- (c) TITLE 18, UNITED STATES CODE.—Title are otherwise authorized to perform such ing of section 3(a)(2) of the Securities Act of 18, United States Code, is amended by strik- functions or services individually.’’. 1933; ing ‘‘Federal Housing Finance Board’’ each

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00079 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.019 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3268 CONGRESSIONAL RECORD — HOUSE May 8, 2008 place such term appears in each of sections pensation and benefits of any such employee such regulations, orders, determinations, 212, 657, 1006, 1014, and inserting ‘‘Federal which accrue before the effective date of the and resolutions, and shall be enforceable by Housing Finance Agency’’. transfer of such employee pursuant to sec- or against the Director of the Federal Hous- (d) MAHRA ACT OF 1997.—Section 517(b)(4) tion 387; and ing Finance Agency until modified, termi- of the Multifamily Assisted Housing Reform (2) may take any other action necessary nated, set aside, or superseded in accordance and Affordability Act of 1997 (42 U.S.C. 1437f for the purpose of winding up the affairs of with applicable law by such Director, as the note) is amended by striking ‘‘Federal Hous- the Office. case may be, any court of competent juris- ing Finance Board’’ and inserting ‘‘Federal (c) STATUS OF EMPLOYEES BEFORE TRANS- diction, or operation of law. Housing Finance Agency’’. FER.—The amendments made by subtitle A SEC. 387. TRANSFER AND RIGHTS OF EMPLOYEES (e) TITLE 44, UNITED STATES CODE.—Section and the abolishment of the Office of Federal OF OFHEO. 3502(5) of title 44, United States Code, is Housing Enterprise Oversight under sub- (a) TRANSFER.—Each employee of the Of- amended by striking ‘‘Federal Housing Fi- section (a) of this section may not be con- fice of Federal Housing Enterprise Oversight nance Board’’ and inserting ‘‘Federal Hous- strued to affect the status of any employee shall be transferred to the Federal Housing ing Finance Agency’’. of such Office as employees of an agency of Finance Agency for employment no later (f) ACCESS TO LOCAL TV ACT OF 2000.—Sec- the United States for purposes of any other than the date of the abolishment under sec- tion 1004(d)(2)(D)(iii) of the Launching Our provision of law before the effective date of tion 385(a) of this title and such transfer Communities’ Access to Local Television the transfer of any such employee pursuant shall be deemed a transfer of function for Act of 2000 (47 U.S.C. 1103(d)(2)(D)(iii)) is to section 387. purposes of section 3503 of title 5, United amended by striking ‘‘Office of Federal (d) USE OF PROPERTY AND SERVICES.— States Code. Housing Enterprise Oversight, the Federal (1) PROPERTY.—The Director of the Federal (b) GUARANTEED POSITIONS.—Each em- Housing Finance Board’’ and inserting ‘‘Fed- Housing Finance Agency may use the prop- ployee transferred under subsection (a) shall eral Housing Finance Agency’’. erty of the Office of Federal Housing Enter- be guaranteed a position with the same sta- (g) SARBANES-OXLEY ACT OF 2002.—Section prise Oversight to perform functions which tus, tenure, grade, and pay as that held on 105(b)(5)(B)(ii)(II) of the Sarbanes-Oxley Act have been transferred to the Director of the the day immediately preceding the transfer. of 2002 (15 U.S.C. 7215(B)(5)(b)(ii)(II)) is Federal Housing Finance Agency for such Each such employee holding a permanent po- amended by inserting ‘‘and the Director of time as is reasonable to facilitate the or- sition shall not be involuntarily separated or the Federal Housing Finance Agency’’ after derly transfer of functions transferred pursu- reduced in grade or compensation for 12 ‘‘Commission,’’. ant to any other provision of this title or months after the date of transfer, except for SEC. 380. STUDY OF AFFORDABLE HOUSING PRO- any amendment made by this title to any cause or, if the employee is a temporary em- GRAM USE FOR LONG-TERM CARE other provision of law. ployee, separated in accordance with the FACILITIES. (2) AGENCY SERVICES.—Any agency, depart- terms of the appointment. The Comptroller General shall conduct a ment, or other instrumentality of the United (c) APPOINTMENT AUTHORITY FOR EXCEPTED study of the use of affordable housing pro- States, and any successor to any such agen- SERVICE EMPLOYEES.— grams of the Federal home loan banks under cy, department, or instrumentality, which (1) IN GENERAL.—In the case of employees section 10(j) of the Federal Home Loan Bank was providing supporting services to the Of- occupying positions in the excepted service, Act to determine how and the extent to fice of Federal Housing Enterprise Oversight any appointment authority established pur- which such programs are used to assist long- before the expiration of the period under sub- suant to law or regulations of the Office of term care facilities for low- and moderate-in- section (a) in connection with functions that Personnel Management for filling such posi- come individuals, and the effectiveness and are transferred to the Director of the Federal tions shall be transferred, subject to para- adequacy of such assistance in meeting the Housing Finance Agency shall— graph (2). needs of affected communities. The study (A) continue to provide such services, on a ECLINE OF TRANSFER.—The Director of shall examine the applicability of such use (2) D reimbursable basis, until the transfer of such to the affordable housing fund required to be the Federal Housing Finance Agency may functions is complete; and established by the Director of the Federal decline a transfer of authority under para- (B) consult with any such agency to co- Housing Finance Agency pursuant to the graph (1) (and the employees appointed pur- ordinate and facilitate a prompt and reason- amendment made by section 340 of this title. suant thereto) to the extent that such au- able transition. The Comptroller General shall submit a re- thority relates to positions excepted from (e) SAVINGS PROVISIONS.— port to the Director of the Federal Housing the competitive service because of their con- (1) EXISTING RIGHTS, DUTIES, AND OBLIGA- Finance Agency and the Congress regarding fidential, policy-making, policy-deter- TIONS NOT AFFECTED.—Subsection (a) shall the results of the study not later than the mining, or policy-advocating character. not affect the validity of any right, duty, or expiration of the 1-year period beginning on (d) REORGANIZATION.—If the Director of the obligation of the United States, the Director the date of the enactment of this Act. This Federal Housing Finance Agency deter- of the Office of Federal Housing Enterprise section shall take effect on the date of the mines, after the end of the 1-year period be- Oversight, or any other person, which— enactment of this Act. ginning on the date of the abolishment under (A) arises under or pursuant to the title section 385(a), that a reorganization of the SEC. 381. EFFECTIVE DATE. XIII of the Housing and Community Develop- Except as specifically provided otherwise combined work force is required, that reor- ment Act of 1992, the Federal National Mort- in this subtitle, this subtitle shall take ef- ganization shall be deemed a major reorga- gage Association Charter Act, the Federal fect on and the amendments made by this nization for purposes of affording affected Home Loan Mortgage Corporation Act, or subtitle shall take effect on, and shall apply employees retirement under section any other provision of law applicable with beginning on, the expiration of the 6-month 8336(d)(2) or 8414(b)(1)(B) of title 5, United respect to such Office; and period beginning on the date of the enact- States Code. (B) existed on the day before the abolish- (e) EMPLOYEE BENEFIT PROGRAMS.—Any ment of this Act. ment under subsection (a) of this section. employee of the Office of Federal Housing Subtitle C—Transfer of Functions, Personnel, (2) CONTINUATION OF SUITS.—No action or Enterprise Oversight accepting employment and Property of Office of Federal Housing other proceeding commenced by or against with the Director of the Federal Housing Fi- Enterprise Oversight, Federal Housing Fi- the Director of the Office of Federal Housing nance Agency as a result of a transfer under nance Board, and Department of Housing Enterprise Oversight in connection with subsection (a) may retain for 12 months after and Urban Development functions that are transferred to the Direc- the date such transfer occurs membership in CHAPTER 1—OFFICE OF FEDERAL tor of the Federal Housing Finance Agency any employee benefit program of the Federal HOUSING ENTERPRISE OVERSIGHT shall abate by reason of the enactment of Housing Finance Agency or the Office of SEC. 385. ABOLISHMENT OF OFHEO. this title, except that the Director of the Federal Housing Enterprise Oversight, as ap- (a) IN GENERAL.—Effective at the end of Federal Housing Finance Agency shall be plicable, including insurance, to which such the 6-month period beginning on the date of substituted for the Director of the Office of employee belongs on the date of the abolish- the enactment of this Act, the Office of Fed- Federal Housing Enterprise Oversight as a ment under section 385(a) if— eral Housing Enterprise Oversight of the De- party to any such action or proceeding. (1) the employee does not elect to give up partment of Housing and Urban Development SEC. 386. CONTINUATION AND COORDINATION OF the benefit or membership in the program; and the positions of the Director and Deputy CERTAIN REGULATIONS. and Director of such Office are abolished. All regulations, orders, determinations, (2) the benefit or program is continued by (b) DISPOSITION OF AFFAIRS.—During the 6- and resolutions that— the Director of the Federal Housing Finance month period beginning on the date of the (1) were issued, made, prescribed, or al- Agency, enactment of this Act, the Director of the lowed to become effective by— The difference in the costs between the bene- Office of Federal Housing Enterprise Over- (A) the Office of Federal Housing Enter- fits which would have been provided by such sight shall, for the purpose of winding up the prise Oversight; or agency and those provided by this section affairs of the Office of Federal Housing En- (B) a court of competent jurisdiction and shall be paid by the Director of the Federal terprise Oversight and in addition to car- that relate to functions transferred by this Housing Finance Agency. If any employee rying out its other responsibilities under chapter; and elects to give up membership in a health in- law— (2) are in effect on the date of the abolish- surance program or the health insurance (1) manage the employees of such Office ment under section 385(a) of this title, shall program is not continued by such Director, and provide for the payment of the com- remain in effect according to the terms of the employee shall be permitted to select an

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00080 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.019 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3269 alternate Federal health insurance program son of the enactment of this title, except transfer under subsection (a) may retain for within 30 days of such election or notice, that the Director of the Federal Housing Fi- 12 months after the date on which such without regard to any other regularly sched- nance Agency shall be substituted for the transfer occurs membership in any employee uled open season. Board or any member thereof as a party to benefit program of the Federal Housing Fi- SEC. 388. TRANSFER OF PROPERTY AND FACILI- any such action or proceeding. nance Agency or the Board, as applicable, in- TIES. SEC. 392. CONTINUATION AND COORDINATION OF cluding insurance, to which such employee Upon the abolishment under section 385(a), CERTAIN REGULATIONS. belongs on the effective date of the abolish- all property of the Office of Federal Housing (a) IN GENERAL.—All regulations, orders, ment under section 391(a) if— Enterprise Oversight shall transfer to the Di- determinations, and resolutions described (A) the employee does not elect to give up rector of the Federal Housing Finance Agen- under subsection (b) shall remain in effect the benefit or membership in the program; cy. according to the terms of such regulations, and CHAPTER 2—FEDERAL HOUSING FINANCE orders, determinations, and resolutions, and (B) the benefit or program is continued by BOARD shall be enforceable by or against the Direc- the Director of the Federal Housing Finance tor of the Federal Housing Finance Agency Agency. SEC. 391. ABOLISHMENT OF THE FEDERAL HOUS- until modified, terminated, set aside, or su- (2) COST DIFFERENTIAL.—The difference in ING FINANCE BOARD. perseded in accordance with applicable law the costs between the benefits which would (a) IN GENERAL.—Effective at the end of by such Director, any court of competent ju- have been provided by the Board and those the 6-month period beginning on the date of risdiction, or operation of law. provided by this section shall be paid by the enactment of this Act, the Federal Housing (b) APPLICABILITY.—A regulation, order, Director of the Federal Housing Finance Finance Board (in this subtitle referred to as determination, or resolution is described Agency. If any employee elects to give up the ‘‘Board’’) is abolished. under this subsection if it— membership in a health insurance program (b) DISPOSITION OF AFFAIRS.—During the 6- (1) was issued, made, prescribed, or allowed or the health insurance program is not con- month period beginning on the date of enact- to become effective by— tinued by such Director, the employee shall ment of this Act, the Board, for the purpose (A) the Board; or be permitted to select an alternate Federal of winding up the affairs of the Board and in (B) a court of competent jurisdiction and health insurance program within 30 days addition to carrying out its other respon- relates to functions transferred by this chap- after such election or notice, without regard sibilities under law— ter; and to any other regularly scheduled open sea- (1) shall manage the employees of such (2) is in effect on the effective date of the son. Board and provide for the payment of the abolishment under section 391(a). SEC. 394. TRANSFER OF PROPERTY AND FACILI- compensation and benefits of any such em- TIES. ployee which accrue before the effective date SEC. 393. TRANSFER AND RIGHTS OF EMPLOYEES OF THE FEDERAL HOUSING FI- Upon the effective date of the abolishment of the transfer of such employee under sec- NANCE BOARD. under section 391(a), all property of the tion 393; and (a) TRANSFER.—Each employee of the Board shall transfer to the Director of the (2) may take any other action necessary Board shall be transferred to the Federal Federal Housing Finance Agency. for the purpose of winding up the affairs of Housing Finance Agency for employment not CHAPTER 3—DEPARTMENT OF HOUSING the Board. later than the effective date of the abolish- AND URBAN DEVELOPMENT (c) STATUS OF EMPLOYEES BEFORE TRANS- ment under section 391(a), and such transfer SEC. 395. TERMINATION OF ENTERPRISE-RE- FER.—The amendments made by subtitles A shall be deemed a transfer of function for LATED FUNCTIONS. and B and the abolishment of the Board purposes of section 3503 of title 5, United (a) TERMINATION DATE.—For purposes of under subsection (a) may not be construed to States Code. this chapter, the term ‘‘termination date’’ affect the status of any employee of such (b) GUARANTEED POSITIONS.—Each em- means the date that occurs 6 months after Board as employees of an agency of the ployee transferred under subsection (a) shall the date of the enactment of this Act. United States for purposes of any other pro- be guaranteed a position with the same sta- (b) DETERMINATION OF TRANSFERRED FUNC- vision of law before the effective date of the tus, tenure, grade, and pay as that held on TIONS AND EMPLOYEES.— transfer of any such employee under section the day immediately preceding the transfer. (1) IN GENERAL.—Not later than the expira- 393. Each such employee holding a permanent po- tion of the 3-month period beginning on the (d) USE OF PROPERTY AND SERVICES.— sition shall not be involuntarily separated or date of the enactment of this Act, the Sec- (1) PROPERTY.—The Director of the Federal reduced in grade or compensation for 12 retary, in consultation with the Director of Housing Finance Agency may use the prop- months after the date of transfer, except for the Office of Federal Housing Enterprise erty of the Board to perform functions which cause or, if the employee is a temporary em- Oversight, shall determine— have been transferred to the Director of the ployee, separated in accordance with the (A) the functions, duties, and activities of Federal Housing Finance Agency for such terms of the appointment. the Secretary of Housing and Urban Develop- time as is reasonable to facilitate the or- (c) APPOINTMENT AUTHORITY FOR EXCEPTED ment regarding oversight or regulation of derly transfer of functions transferred under AND SENIOR EXECUTIVE SERVICE EMPLOY- the enterprises under or pursuant to the au- any other provision of this title or any EES.— thorizing statutes, title XIII of the Housing amendment made by this title to any other (1) IN GENERAL.—In the case of employees and Community Development Act of 1992, provision of law. occupying positions in the excepted service and any other provisions of law, as in effect (2) AGENCY SERVICES.—Any agency, depart- or the Senior Executive Service, any ap- before the date of the enactment of this Act, ment, or other instrumentality of the United pointment authority established under law but not including any such functions, duties, States, and any successor to any such agen- or by regulations of the Office of Personnel and activities of the Director of the Office of cy, department, or instrumentality, which Management for filling such positions shall Federal Housing Enterprise Oversight of the was providing supporting services to the be transferred, subject to paragraph (2). Department of Housing and Urban Develop- Board before the expiration of the period (2) DECLINE OF TRANSFER.—The Director of ment and such Office; and under subsection (a) in connection with func- the Federal Housing Finance Agency may (B) the employees of the Department of tions that are transferred to the Director of decline a transfer of authority under para- Housing and Urban Development necessary the Federal Housing Finance Agency shall— graph (1) to the extent that such authority to perform such functions, duties, and activi- (A) continue to provide such services, on a relates to positions excepted from the com- ties. reimbursable basis, until the transfer of such petitive service because of their confidential, (2) ENTERPRISE-RELATED FUNCTIONS.—For functions is complete; and policymaking, policy-determining, or policy- purposes of this chapter, the term ‘‘enter- (B) consult with any such agency to co- advocating character, and noncareer posi- prise-related functions of the Department’’ ordinate and facilitate a prompt and reason- tions in the Senior Executive Service (within means the functions, duties, and activities of able transition. the meaning of section 3132(a)(7) of title 5, the Department of Housing and Urban Devel- (e) SAVINGS PROVISIONS.— United States Code). opment determined under paragraph (1)(A). (1) EXISTING RIGHTS, DUTIES, AND OBLIGA- (d) REORGANIZATION.—If the Director of the (3) ENTERPRISE-RELATED EMPLOYEES.—For TIONS NOT AFFECTED.—Subsection (a) shall Federal Housing Finance Agency deter- purposes of this chapter, the term ‘‘enter- not affect the validity of any right, duty, or mines, after the end of the 1-year period be- prise-related employees of the Department’’ obligation of the United States, a member of ginning on the effective date of the abolish- means the employees of the Department of the Board, or any other person, which— ment under section 391(a), that a reorganiza- Housing and Urban Development determined (A) arises under the Federal Home Loan tion of the combined workforce is required, under paragraph (1)(B). Bank Act or any other provision of law ap- that reorganization shall be deemed a major (c) DISPOSITION OF AFFAIRS.—During the 6- plicable with respect to such Board; and reorganization for purposes of affording af- month period beginning on the date of enact- (B) existed on the day before the effective fected employees retirement under section ment of this Act, the Secretary of Housing date of the abolishment under subsection (a). 8336(d)(2) or 8414(b)(1)(B) of title 5, United and Urban Development (in this subtitle re- (2) CONTINUATION OF SUITS.—No action or States Code. ferred to as the ‘‘Secretary’’), for the purpose other proceeding commenced by or against (e) EMPLOYEE BENEFIT PROGRAMS.— of winding up the affairs of the Secretary re- the Board in connection with functions that (1) IN GENERAL.—Any employee of the garding the enterprise-related functions of are transferred to the Director of the Federal Board accepting employment with the Fed- the Department of Housing and Urban Devel- Housing Finance Agency shall abate by rea- eral Housing Finance Agency as a result of a opment (in this subtitle referred to as the

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00081 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.019 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3270 CONGRESSIONAL RECORD — HOUSE May 8, 2008

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

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00082 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.019 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3271

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

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00083 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.020 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3272 CONGRESSIONAL RECORD — HOUSE May 8, 2008 Act of 1937 (42 U.S.C. 1437f) pursuant to sub- (2) no reduction in the total amount of the A month may be elected under clause (ii) section (a); and housing assistance payments under con- only if the election is made not later than (6) the term ‘‘Secretary’’ means the Sec- tracts described in subsection (b)(1). the 5th day after the close of such month. retary of Housing and Urban Development. SEC. 505. PROTECTION AGAINST DISCRIMINA- Such an election, once made, shall be irrev- SEC. 503. ELIGIBILITY OF CERTAIN PROJECTS TORY TREATMENT. ocable. FOR ENHANCED VOUCHER ASSIST- Section 525 of title 11, the United States ‘‘(2) METHOD OF PRESCRIBING PERCENT- ANCE. Code, is amended by adding at the end the AGES.— Notwithstanding any other provision of following: ‘‘(A) IN GENERAL.—For purposes of para- law— ‘‘(d) A governmental unit that operates a graph (1), the percentages prescribed by the (1) the property known as The Heritage mortgage loan program, including a loan Secretary for any month shall be— Apartments (FHA No. 023-44804), in Malden, guarantee or subsidy program, may not deny ‘‘(i) in the case of any building which is not Massachusetts, shall be considered eligible the benefits of such program to a disabled federally subsidized for the taxable year, the low-income housing for purposes of the eligi- veteran (as defined in section 3741(1) of title greater of— bility of residents of the property for en- 38) because he or she is or has been a debtor ‘‘(I) the average percentage determined hanced voucher assistance under section 8(t) under this title, has been insolvent before under subclause (II) for months in the pre- of the United States Housing Act of 1937 (42 the commencement of a case under this title ceding calendar year, or U.S.C. 1437f(t)), pursuant to paragraph (2)(A) or during the pendency of the case but before ‘‘(II) the percentage which will yield over a of section 223(f) of the Low-Income Housing being granted or denied a discharge, or has 10-year period amounts of credit under sub- Preservation and Resident Homeownership not paid a debt that is dischargeable in the section (a) which have a present value equal Act of 1990 (12 U.S.C. 4113(f)(2)(A)); case under this title.’’. to 70 percent of the qualified basis of such (2) such residents shall receive enhanced In the matter proposed to be inserted by building, and rental housing vouchers upon the prepay- the amendment of the Senate to the text of ‘‘(ii) in the case of any other building, the ment of the mortgage loan for the property the bill, strike titles VII, IX, and XI. percentage which will yield over a 10-year under section 236 of the National Housing The text of House amendment No. 2 period amounts of credit under subsection (a) Act (12 U.S.C. 1715z–1); and which have a present value equal to 30 per- (3) the Secretary shall approve such pre- to the Senate amendments is as fol- cent of the qualified basis of such building. payment and subsequent transfer of the lows: ‘‘(B) METHOD OF DISCOUNTING.—The present property without any further condition, ex- In the matter proposed to be inserted by value under subparagraph (A) shall be deter- cept that the property shall be restricted for the Senate amendment to H.R. 3221, strike mined— occupancy, until the original maturity date titles VI (relating to tax-related provisions), ‘‘(i) as of the last day of the 1st year of the of the prepaid mortgage loan, only by fami- VIII (relating to REIT investment diver- 10-year period referred to in subparagraph lies with incomes not exceeding 80 percent of sification and empowerment), and X (relat- (A), the adjusted median income for the area in ing to clean energy tax stimulus) and add at ‘‘(ii) by using a discount rate equal to 72 which the property is located, as published the end the following new title (and conform percent of the average of the annual Federal by the Secretary. the table of contents accordingly): Amounts for the enhanced vouchers pursu- mid-term rate and the annual Federal long- TITLE VII—REVENUE AND OTHER term rate applicable under section 1274(d)(1) ant to this section shall be provided under PROVISIONS amounts appropriated for tenant-based rent- to the month applicable under subparagraph al assistance otherwise authorized under sec- SEC. 700. AMENDMENT OF 1986 CODE. (A) and compounded annually, and tion 8(t) of the United States Housing Act of Except as otherwise expressly provided, ‘‘(iii) by assuming that the credit allow- 1937. whenever in this title an amendment or re- able under this section for any year is re- peal is expressed in terms of an amendment SEC. 504. TRANSFER OF CERTAIN RENTAL AS- ceived on the last day of such year. SISTANCE CONTRACTS. to, or repeal of, a section or other provision, ‘‘(3) CROSS REFERENCES.— (a) TRANSFER.—Subject to subsection (c) the reference shall be considered to be made ‘‘(A) For treatment of certain rehabilita- and notwithstanding any other provision of to a section or other provision of the Inter- tion expenditures as separate buildings, see law, the Secretary of Housing and Urban De- nal Revenue Code of 1986. subsection (e). velopment shall, at the request of the owner, Subtitle A—Housing Tax Incentives ‘‘(B) For determination of applicable per- transfer or authorize the transfer, of the con- PART 1—MULTI-FAMILY HOUSING centage for increases in qualified basis after tracts, restrictions, and debt described in Subpart A—Low-Income Housing Tax Credit the 1st year of the credit period, see sub- subsection (b)— section (f)(3). (1) on the housing that is owned or man- SEC. 701. TEMPORARY INCREASE IN VOLUME CAP FOR LOW-INCOME HOUSING TAX ‘‘(C) For authority of housing credit agen- aged by Community Properties of Ohio Man- CREDIT. cy to limit applicable percentage and quali- agement Services LLC or an affiliate of Ohio Paragraph (3) of section 42(h) is amended fied basis which may be taken into account Capital Corporation for Housing and located by adding at the end the following new sub- under this section with respect to any build- in Franklin County, Ohio, to other prop- paragraph: ing, see subsection (h)(7).’’. erties located in Franklin County, Ohio; and ‘‘(I) INCREASE IN STATE HOUSING CREDIT (2) CONFORMING AMENDMENTS.— (2) on the housing that is owned or man- CEILING FOR 2008 AND 2009.—In the case of cal- (A) Subparagraph (B) of section 42(e)(3) is aged by The Model Group, Inc., and located endar years 2008 and 2009, the dollar amount amended by striking ‘‘subsection in Hamilton County, Ohio, to other prop- in effect under subparagraph (C)(ii)(I) for (b)(2)(B)(ii)’’ and inserting ‘‘subsection erties located in Hamilton County, Ohio. such calendar year (after any increase under (b)(2)(A)(ii)’’. (b) CONTRACTS, RESTRICTIONS, AND DEBT subparagraph (H)) shall be increased by (B) Subparagraph (A) of section 42(i)(2) is COVERED.—The contracts, restrictions, and $0.20.’’. amended by striking ‘‘new building’’ and in- debt described in this subsection are as fol- serting ‘‘building’’. lows: SEC. 702. DETERMINATION OF CREDIT RATE. (1) All or a portion of a project-based rent- (a) ELIMINATION OF DISTINCTION BETWEEN (b) MODIFICATIONS TO DEFINITION OF FEDER- al assistance housing assistance payments NEW AND EXISTING BUILDINGS; MINIMUM ALLY SUBSIDIZED BUILDING.— contract under section 8 of the United States CREDIT RATE FOR NON-FEDERALLY SUBSIDIZED (1) IN GENERAL.—Subparagraph (A) of sec- Housing Act of 1937 (42 U.S.C. 1437f). BUILDINGS.— tion 42(i)(2) is amended by striking ‘‘, or any (2) Existing Federal use restrictions, in- (1) IN GENERAL.—Subsection (b) section 42 below market Federal loan,’’. cluding without limitation use agreements, is amended to read as follows: (2) CONFORMING AMENDMENTS.— regulatory agreements, and accommodation ‘‘(b) APPLICABLE PERCENTAGE.—For pur- (A) Subparagraph (B) of section 42(i)(2) is agreements. poses of this section— amended— (3) Any subordinate debt held by the Sec- ‘‘(1) IN GENERAL.—The term ‘applicable per- (i) by striking ‘‘BALANCE OF LOAN OR’’ in retary or assigned and any mortgages secur- centage’ means, with respect to any build- the heading thereof, ing such debt, all related loan and security ing, the appropriate percentage prescribed by (ii) by striking ‘‘loan or’’ in the matter documentation and obligations, and reserve the Secretary for the earlier of— preceding clause (i), and and escrow balances. ‘‘(A) the month in which such building is (iii) by striking ‘‘subsection (d)—’’ and all (c) RETENTION OF SAME NUMBER OF UNITS placed in service, or that follows and inserting ‘‘subsection (d) AND AMOUNT OF ASSISTANCE.—Any transfer ‘‘(B) at the election of the taxpayer— the proceeds of such obligation.’’. pursuant to subsection (a) shall result in— ‘‘(i) the month in which the taxpayer and (B) Subparagraph (C) of section 42(i)(2) is (1) a total number of dwelling units (in- the housing credit agency enter into an amended— cluding units retained by the owners and agreement with respect to such building (i) by striking ‘‘or below market Federal units transferred) covered by assistance de- (which is binding on such agency, the tax- loan’’ in the matter preceding clause (i), scribed in subsection (b)(1) after the transfer payer, and all successors in interest) as to (ii) in clause (i)— remaining the same as such number assisted the housing credit dollar amount to be allo- (I) by striking ‘‘or loan (when issued or before the transfer, with such increases or cated to such building, or made)’’ and inserting ‘‘(when issued)’’, and decreases in unit sizes as may be contained ‘‘(ii) in the case of any building to which (II) by striking ‘‘the proceeds of such obli- in a plan approved by a local planning or de- subsection (h)(4)(B) applies, the month in gation or loan’’ and inserting ‘‘the proceeds velopment commission or department; and which the tax-exempt obligations are issued. of such obligation’’, and

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00084 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.020 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3273 (iii) by striking ‘‘, and such loan is repaid,’’ any costs financed with the proceeds of a ing the period at the end of clause (viii) and in clause (ii). Federally funded grant.’’. inserting a comma, and by adding at the end (C) Paragraph (2) of section 42(i) is amend- (e) SIMPLIFICATION OF RELATED PARTY the following new clauses: ed by striking subparagraphs (D) and (E). RULES.—Clause (iii) of section 42(d)(2)(D), be- ‘‘(ix) the energy efficiency of the project, (c) EFFECTIVE DATE.—The amendments fore redesignation under subsection (f)(2), is and made by this subsection shall apply to build- amended— ‘‘(x) the historic nature of the project.’’. ings placed in service after the date of the (1) by striking all that precedes subclause (e) CONTINUED ELIGIBILITY FOR STUDENTS enactment of this Act. (II), WHO RECEIVED FOSTER CARE ASSISTANCE.— SEC. 703. MODIFICATIONS TO DEFINITION OF ELI- (2) by redesignating subclause (II) as clause Clause (i) of section 42(i)(3)(D) is amended by GIBLE BASIS. (iii) and moving such clause two ems to the striking ‘‘or’’ at the end of subclause (I), by (a) INCREASE IN CREDIT FOR CERTAIN STATE left, and redesignating subclause (II) as subclause DESIGNATED BUILDINGS.—Subparagraph (C) of (3) by striking the last sentence thereof. (III), and by inserting after subclause (I) the section 42(d)(5) (relating to increase in credit (f) REPEAL OF DEADWOOD.— following new subclause: for buildings in high cost areas), before re- (1) Clause (ii) of section 42(d)(2)(B) is ‘‘(II) a student who was previously under designation under subsection (f), is amended amended by striking ‘‘the later of—’’ and all the care and placement responsibility of the by adding at the end the following new that follows and inserting ‘‘the date the State agency responsible for administering a clause: building was last placed in service,’’. plan under part B or part E of title IV of the ‘‘(v) BUILDINGS DESIGNATED BY STATE HOUS- (2) Subparagraph (D) of section 42(d)(2) is Social Security Act, or’’. (f) TREATMENT OF RURAL PROJECTS.—Sec- ING CREDIT AGENCY.—Any building which is amended by striking clause (i) and by redes- tion 42(i) (relating to definitions and special designated by the State housing credit agen- ignating clauses (ii) and (iii) as clauses (i) rules) is amended by adding at the end the cy as requiring the increase in credit under and (ii), respectively. following new paragraph: this subparagraph in order for such building (3) Paragraph (5) of section 42(d) is amend- ‘‘(8) TREATMENT OF RURAL PROJECTS.—For to be financially feasible as part of a quali- ed by striking subparagraph (B) and by re- purposes of this section, in the case of any fied low-income housing project shall be designating subparagraph (C) as subpara- graph (B). project for residential rental property lo- treated for purposes of this subparagraph as cated in a rural area (as defined in section located in a difficult development area which (g) EFFECTIVE DATE.—The amendments made by this subsection shall apply to build- 520 of the Housing Act of 1949), any income is designated for purposes of this subpara- limitation measured by reference to area graph. The preceding sentence shall not ings placed in service after the date of the enactment of this Act. median gross income shall be measured by apply to any building if paragraph (1) of sub- reference to the greater of area median gross section (h) does not apply to any portion of SEC. 704. OTHER SIMPLIFICATION AND REFORM OF LOW-INCOME HOUSING TAX IN- income or national non-metropolitan median the eligible basis of such building by reason income. The preceding sentence shall not of paragraph (4) of such subsection.’’. CENTIVES. EPEAL ROHIBITION ON ODERATE E apply with respect to any building if para- (b) MODIFICATION TO REHABILITATION RE- (a) R P M R - HABILITATION SSISTANCE graph (1) of section 42(h) does not apply by QUIREMENTS.— A .—Paragraph (2) of reason of paragraph (4) thereof to any por- (1) IN GENERAL.—Clause (ii) of section section 42(c) (defining qualified low-income tion of the credit determined under this sec- 42(e)(3)(A) is amended— building) is amended by striking the flush tion with respect to such building.’’. (A) by striking ‘‘10 percent’’ in subclause sentence at the end. (b) MODIFICATION OF TIME LIMIT FOR INCUR- (g) EFFECTIVE DATE.— (I) and inserting ‘‘20 percent’’, and RING 10 PERCENT OF PROJECT’S COST.—Clause (1) IN GENERAL.—Except as otherwise pro- (B) by striking ‘‘$3,000’’ in subclause (II) (ii) of section 42(h)(1)(E) is amended by strik- vided in this subsection, the amendments and inserting ‘‘$6,000’’. ing ‘‘(as of the later of the date which is 6 made by this section shall apply to buildings (2) INFLATION ADJUSTMENT.—Paragraph (3) months after the date that the allocation placed in service after the date of the enact- of section 42(e) is amended by adding at the was made or the close of the calendar year in ment of this Act. end the following new subparagraph: which the allocation is made)’’ and inserting (2) REPEAL OF BONDING REQUIREMENT ON ‘‘(D) INFLATION ADJUSTMENT.—In the case ‘‘(as of the date which is 1 year after the date DISPOSITION OF BUILDING.—The amendment of any expenditures which are treated under that the allocation was made)’’. made by subsection (c) shall apply to— paragraph (4) as placed in service during any (c) REPEAL OF BONDING REQUIREMENT ON (A) interests in buildings disposed after the calendar year after 2009, the $6,000 amount in DISPOSITION OF BUILDING.—Paragraph (6) of date of the enactment of this Act, and subparagraph (A)(ii)(II) shall be increased by section 42(j) (relating to no recapture on dis- (B) interests in buildings disposed of on or an amount equal to— position of building (or interest therein) before such date if— ‘‘(i) such dollar amount, multiplied by where bond posted) is amended to read as fol- (i) it is reasonably expected that such ‘‘(ii) the cost-of-living adjustment deter- lows: building will continue to be operated as a mined under section 1(f)(3) for such calendar ‘‘(6) NO RECAPTURE ON DISPOSITION OF qualified low-income building (within the year by substituting ‘calendar year 2008’ for BUILDING WHICH CONTINUES IN QUALIFIED meaning of section 42 of the Internal Rev- ‘calendar year 1992’ in subparagraph (B) USE.— enue Code of 1986) for the remaining compli- thereof. ‘‘(A) IN GENERAL.—The increase in tax ance period (within the meaning of such sec- Any increase under the preceding sentence under this subsection shall not apply solely tion) with respect to such building, and which is not a multiple of $100 shall be by reason of the disposition of a building (or (ii) the taxpayer elects the application of rounded to the nearest multiple of $100.’’. an interest therein) if it is reasonably ex- this subparagraph with respect to such dis- (3) CONFORMING AMENDMENT.—Subclause pected that such building will continue to be position. (II) of section 42(f)(5)(B)(ii) is amended by operated as a qualified low-income building Notwithstanding the preceding sentence, the striking ‘‘if subsection (e)(3)(A)(ii)(II)’’ and for the remaining compliance period with re- amendments made by subsection (c) shall all that follows and inserting ‘‘if the dollar spect to such building. not apply to any disposition after the date 5 amount in effect under subsection ‘‘(B) STATUTE OF LIMITATIONS.—If a build- years after the date of the enactment of this (e)(3)(A)(ii)(II) were two-thirds of such ing (or an interest therein) is disposed of Act. amount.’’. during any taxable year and there is any re- (3) ENERGY EFFICIENCY AND HISTORIC NA- (c) INCREASE IN ALLOWABLE COMMUNITY duction in the qualified basis of such build- TURE TAKEN INTO ACCOUNT IN MAKING ALLOCA- SERVICE FACILITY SPACE FOR SMALL ing which results in an increase in tax under TIONS.—The amendments made by subsection PROJECTS.—Clause (ii) of section 42(d)(4)(C) this subsection for such taxable or any sub- (d) shall apply to allocations made after De- (relating to limitation) is amended by strik- sequent taxable year, then— cember 31, 2008. ing ‘‘10 percent of the eligible basis of the ‘‘(i) the statutory period for the assess- (4) CONTINUED ELIGIBILITY FOR STUDENTS qualified low-income housing project of ment of any deficiency with respect to such WHO RECEIVED FOSTER CARE ASSISTANCE.—The which it is a part. For purposes of’’ and in- increase in tax shall not expire before the ex- amendments made by subsection (e) shall serting ‘‘the sum of— piration of 3 years from the date the Sec- apply to determinations made after the date ‘‘(I) 15 percent of so much of the eligible retary is notified by the taxpayer (in such of the enactment of this Act. basis of the qualified low-income housing manner as the Secretary may prescribe) of (5) TREATMENT OF RURAL PROJECTS.—The project of which it is a part as does not ex- such reduction in qualified basis, and amendment made by subsection (f) shall ceed $5,000,000, plus ‘‘(ii) such deficiency may be assessed be- apply to determinations made after the date ‘‘(II) 10 percent of so much of the eligible fore the expiration of such 3-year period not- of the enactment of this Act. basis of such project as is not taken into ac- withstanding the provisions of any other law Subpart B—Modifications to Tax-Exempt count under subclause (I). or rule of law which would otherwise prevent Housing Bond Rules For purposes of’’. such assessment.’’. SEC. 706. RECYCLING OF TAX-EXEMPT DEBT FOR (d) CLARIFICATION OF TREATMENT OF FED- (d) ENERGY EFFICIENCY AND HISTORIC NA- FINANCING RESIDENTIAL RENTAL ERAL GRANTS.—Subparagraph (A) of section TURE TAKEN INTO ACCOUNT IN MAKING ALLO- PROJECTS. 42(d)(5) is amended to read as follows: CATIONS.—Subparagraph (C) of section (a) IN GENERAL.—Subsection (i) of section ‘‘(A) FEDERAL GRANTS NOT TAKEN INTO AC- 42(m)(1) (relating to plans for allocation of 146 (relating to treatment of refunding COUNT IN DETERMINING ELIGIBLE BASIS.—The credit among projects) is amended by strik- issues) is amended by adding at the end the eligible basis of a building shall not include ing ‘‘and’’ at the end of clause (vii), by strik- following new paragraph:

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00085 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.007 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3274 CONGRESSIONAL RECORD — HOUSE May 8, 2008

‘‘(6) TREATMENT OF CERTAIN RESIDENTIAL ‘‘(E) HOLD HARMLESS FOR REDUCTIONS IN ‘‘(A) IN GENERAL.—Except as otherwise pro- RENTAL PROJECT BONDS AS REFUNDING BONDS AREA MEDIAN GROSS INCOME.— vided in this paragraph, the credit allowed IRRESPECTIVE OF OBLIGOR.— ‘‘(i) IN GENERAL.—Any determination of under subsection (a) shall not exceed $7,500. ‘‘(A) IN GENERAL.—If, during the 6-month area median gross income under subpara- ‘‘(B) MARRIED INDIVIDUALS FILING SEPA- period beginning on the date of a repayment graph (B) with respect to any project for any RATELY.—In the case of a married individual of a loan financed by an issue 95 percent or calendar year after 2008 shall not be less filing a separate return, subparagraph (A) more of the net proceeds of which are used to than the area median gross income deter- shall be applied by substituting ‘$3,750’ for provide projects described in section 142(d), mined under such subparagraph with respect ‘$7,500’. such repayment is used to provide a new loan to such project for the calendar year pre- ‘‘(C) OTHER INDIVIDUALS.—If two or more for any project so described, any bond which ceding the calendar year for which such de- individuals who are not married purchase a is issued to refinance such issue shall be termination is made. principal residence, the amount of the credit treated as a refunding issue to the extent the ‘‘(ii) SPECIAL RULE FOR CERTAIN CENSUS allowed under subsection (a) shall be allo- principal amount of such refunding issue CHANGES.—In the case of a HUD hold harm- cated among such individuals in such man- does not exceed the principal amount of the less impacted project, the area median gross ner as the Secretary may prescribe, except bonds refunded. income with respect to such project for any that the total amount of the credits allowed ‘‘(B) LIMITATIONS.—Subparagraph (A) shall calendar year after 2008 (hereafter in this to all such individuals shall not exceed apply to only one refunding of the original clause referred to as the current calendar $7,500. issue and only if— year) shall be the greater of the amount de- ‘‘(2) LIMITATION BASED ON MODIFIED AD- ‘‘(i) the refunding issue is issued not later termined without regard to this clause or JUSTED GROSS INCOME.— than 4 years after the date on which the the sum of— ‘‘(A) IN GENERAL.—The amount allowable original issue was issued, ‘‘(I) the area median gross income deter- as a credit under subsection (a) (determined ‘‘(ii) the latest maturity date of any bond mined under the HUD hold harmless policy without regard to this paragraph) for the of the refunding issue is not later than 34 with respect to such project for calendar taxable year shall be reduced (but not below years after the date on which the refunded year 2008, plus zero) by the amount which bears the same bond was issued, and ‘‘(II) any increase in the area median gross ratio to the amount which is so allowable ‘‘(iii) the refunding issue is approved in ac- income determined under subparagraph (B) as— cordance with section 147(f) before the (determined without regard to the HUD hold ‘‘(i) the excess (if any) of— issuance of the refunding issue.’’. harmless policy and this subparagraph) with ‘‘(I) the taxpayer’s modified adjusted gross (b) LOW-INCOME HOUSING CREDIT.—Clause respect to such project for the current cal- income for such taxable year, over (ii) of section 42(h)(4)(A) is amended by in- endar year over the area median gross in- ‘‘(II) $70,000 ($140,000 in the case of a joint serting ‘‘or such financing is refunded as de- come (as so determined) with respect to such return), bears to scribed in section 146(i)(6)’’ before the period project for calendar year 2008. ‘‘(ii) $20,000. at the end. ‘‘(iii) HUD HOLD HARMLESS POLICY.—The ‘‘(B) MODIFIED ADJUSTED GROSS INCOME.— (c) EFFECTIVE DATE.—The amendments term ‘HUD hold harmless policy’ means the For purposes of subparagraph (A), the term made by this section shall apply to repay- regulations under which a policy similar to ‘modified adjusted gross income’ means the ments of loans received after the date of the the rules of clause (i) applied to prevent a adjusted gross income of the taxpayer for the enactment of this Act. change in the method of determining area taxable year increased by any amount ex- SEC. 707. COORDINATION OF CERTAIN RULES AP- median gross income from resulting in a re- cluded from gross income under section 911, PLICABLE TO LOW-INCOME HOUS- duction in the area median gross income de- 931, or 933. ING CREDIT AND QUALIFIED RESI- termined with respect to certain projects in DENTIAL RENTAL PROJECT EXEMPT ‘‘(c) DEFINITIONS.—For purposes of this sec- FACILITY BONDS. calendar years 2007 and 2008. tion— (a) DETERMINATION OF NEXT AVAILABLE ‘‘(iv) HUD HOLD HARMLESS IMPACTED ‘‘(1) FIRST-TIME HOMEBUYER.—The term UNIT.—Paragraph (3) of section 142(d) (relat- PROJECT.—The term ‘HUD hold harmless im- ‘first-time homebuyer’ means any individual ing to current income determinations) is pacted project’ means any project with re- if such individual (and if married, such indi- amended by adding at the end the following spect to which area median gross income was vidual’s spouse) had no present ownership in- new subparagraph: determined under subparagraph (B) for cal- terest in a principal residence during the 3- ‘‘(C) EXCEPTION FOR PROJECTS WITH RESPECT endar year 2007 or 2008 if such determination year period ending on the date of the pur- TO WHICH AFFORDABLE HOUSING CREDIT IS AL- would have been less but for the HUD hold chase of the principal residence to which this LOWED.—In the case of a project with respect harmless policy.’’. section applies. to which credit is allowed under section 42, (b) EFFECTIVE DATE.—The amendment ‘‘(2) PRINCIPAL RESIDENCE.—The term ‘prin- the second sentence of subparagraph (B) made by this section shall apply to deter- cipal residence’ has the same meaning as shall be applied by substituting ‘building minations of area median gross income for when used in section 121. (within the meaning of section 42)’ for calendar years after 2008. ‘‘(3) PURCHASE.— ‘project’.’’. SEC. 710. EXCEPTION TO ANNUAL CURRENT IN- ‘‘(A) IN GENERAL.—The term ‘purchase’ (b) STUDENTS.—Paragraph (2) of section COME DETERMINATION REQUIRE- means any acquisition, but only if— 142(d) (relating to definitions and special MENT WHERE DETERMINATION NOT ‘‘(i) the property is not acquired from a RELEVANT. rules) is amended by adding at the end the person related to the person acquiring it, and (a) IN GENERAL.—Subparagraph (A) of sec- following new subparagraph: ‘‘(ii) the basis of the property in the hands tion 142(d)(3) is amended by adding at the ‘‘(C) STUDENTS.—Rules similar to the rules of the person acquiring it is not deter- end the following new sentence: ‘‘The pre- of 42(i)(3)(D) shall apply for purposes of this mined— ceding sentence shall not apply with respect subsection.’’. ‘‘(I) in whole or in part by reference to the to any project for any year if during such (c) SINGLE-ROOM OCCUPANCY UNITS.—Para- adjusted basis of such property in the hands graph (2) of section 142(d) (relating to defini- year no residential unit in the project is oc- of the person from whom acquired, or tions and special rules), as amended by sub- cupied by a new resident whose income ex- ‘‘(II) under section 1014(a) (relating to section (b), is further amended by adding at ceeds the applicable income limit.’’. property acquired from a decedent). (b) EFFECTIVE DATE.—The amendment the end the following new subparagraph: ‘‘(B) CONSTRUCTION.—A residence which is made by this section shall apply to years ‘‘(D) SINGLE-ROOM OCCUPANCY UNITS.—A constructed by the taxpayer shall be treated ending after the date of the enactment of unit shall not fail to be treated as a residen- as purchased by the taxpayer on the date the this Act. tial unit merely because such unit is a sin- taxpayer first occupies such residence. gle-room occupancy unit (within the mean- PART 2—SINGLE FAMILY HOUSING ‘‘(4) PURCHASE PRICE.—The term ‘purchase ing of section 42).’’. SEC. 712. FIRST-TIME HOMEBUYER CREDIT. price’ means the adjusted basis of the prin- (d) EFFECTIVE DATE.—The amendments (a) IN GENERAL.—Subpart C of part IV of cipal residence on the date such residence is made by this section shall apply to deter- subchapter A of chapter 1 is amended by re- purchased. minations of the status of qualified residen- designating section 36 as section 37 and by ‘‘(5) RELATED PERSONS.—A person shall be tial rental projects for periods beginning inserting after section 35 the following new treated as related to another person if the after the date of the enactment of this Act, section: relationship between such persons would re- with respect to bonds issued before, on, or ‘‘SEC. 36. FIRST-TIME HOMEBUYER CREDIT. sult in the disallowance of losses under sec- after such date. ‘‘(a) ALLOWANCE OF CREDIT.—In the case of tion 267 or 707(b) (but, in applying section Subpart C—Reforms Related to the Low-In- an individual who is a first-time homebuyer 267(b) and (c) for purposes of this section, come Housing Credit and Tax-Exempt of a principal residence in the United States paragraph (4) of section 267(c) shall be treat- Housing Bonds during a taxable year, there shall be allowed ed as providing that the family of an indi- SEC. 709. HOLD HARMLESS FOR REDUCTIONS IN as a credit against the tax imposed by this vidual shall include only his spouse, ances- AREA MEDIAN GROSS INCOME. subtitle for such taxable year an amount tors, and lineal descendants). (a) IN GENERAL.—Paragraph (2) of section equal to 10 percent of the purchase price of ‘‘(d) EXCEPTIONS.—No credit under sub- 142(d), as amended by section 707, is further the residence. section (a) shall be allowed to any taxpayer amended by adding at the end the following ‘‘(b) LIMITATIONS.— for any taxable year with respect to the pur- new subparagraph: ‘‘(1) DOLLAR LIMITATION.— chase of a residence if—

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00086 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.007 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3275

‘‘(1) a credit under section 1400C (relating vidual filing such return for purposes of this ‘‘(i) IN GENERAL.—Any amount of the State to first-time homebuyer in the District of subsection. ceiling for any State which is attributable to Columbia) is allowable to the taxpayer (or ‘‘(6) RECAPTURE PERIOD.—For purposes of an increase under this paragraph shall be al- the taxpayer’s spouse) for such taxable year this subsection, the term ‘recapture period’ located solely for one or more qualified hous- or any prior taxable year, means the 15 taxable years beginning with ing issues. ‘‘(2) the residence is financed by the pro- the second taxable year following the tax- ‘‘(ii) QUALIFIED HOUSING ISSUE.—For pur- ceeds of a qualified mortgage issue the inter- able year in which the purchase of the prin- poses of this paragraph, the term ‘qualified est on which is exempt from tax under sec- cipal residence for which a credit is allowed housing issue’ means— tion 103, under subsection (a) was made. ‘‘(I) an issue described in section 142(a)(7) ‘‘(3) the taxpayer is a nonresident alien, or ‘‘(g) APPLICATION OF SECTION.—This section (relating to qualified residential rental ‘‘(4) the taxpayer disposes of such residence shall only apply to a principal residence pur- projects), or (or such residence ceases to be the principal chased by the taxpayer on or after April 9, ‘‘(II) a qualified mortgage issue (deter- residence of the taxpayer (and, if married, 2008, and before April 1, 2009.’’. mined by substituting ‘12-month period’ for the taxpayer’s spouse)) before the close of (b) CONFORMING AMENDMENTS.— ‘42-month period’ each place it appears in such taxable year. (1) Section 26(b)(2) is amended by striking section 143(a)(2)(D)(i)).’’. ‘‘(e) REPORTING.—If the Secretary requires ‘‘and’’ at the end of subparagraph (U), by (2) CARRYFORWARD OF UNUSED LIMITA- information reporting under section 6045 by striking the period and inserting ‘‘, and’’ and TIONS.—Subsection (f) of section 146 is a person described in subsection (e)(2) there- the end of subparagraph (V), and by inserting amended by adding at the end the following of to verify the eligibility of taxpayers for after subparagraph (V) the following new new paragraph: the credit allowable by this section, the ex- subparagraph: ‘‘(6) SPECIAL RULES FOR INCREASED VOLUME ception provided by section 6045(e) shall not ‘‘(W) section 36(f) (relating to recapture of CAP UNDER SUBSECTION (d)(5).—No amount apply. homebuyer credit).’’. which is attributable to the increase under ‘‘(f) RECAPTURE OF CREDIT.— (2) Section 6211(b)(4)(A) is amended by subsection (d)(5) may be used— ‘‘(1) IN GENERAL.—Except as otherwise pro- striking ‘‘34,’’ and all that follows through ‘‘(A) for any issue other than a qualified vided in this subsection, if a credit under ‘‘6428’’ and inserting ‘‘34, 35, 36, 53(e), and housing issue (as defined in subsection subsection (a) is allowed to a taxpayer, the 6428’’. (d)(5)), or tax imposed by this chapter shall be in- (3) Section 1324(b)(2) of title 31, United ‘‘(B) to issue any bond after calendar year creased by 62⁄3 percent of the amount of such States Code, is amended by inserting ‘‘, 36,’’ 2010.’’. credit for each taxable year in the recapture after ‘‘section 35’’. (b) TEMPORARY RULE FOR USE OF QUALIFIED period. (4) The table of sections for subpart C of MORTGAGE BONDS PROCEEDS FOR SUBPRIME ‘‘(2) ACCELERATION OF RECAPTURE.—If a tax- part IV of subchapter A of chapter 1 is REFINANCING LOANS.— payer disposes of the principal residence amended by redesignating the item relating (1) IN GENERAL.—Section 143(k) (relating to with respect to which a credit was allowed to section 36 as an item relating to section 37 other definitions and special rules) is amend- under subsection (a) (or such residence and by inserting before such item the fol- ed by adding at the end the following new ceases to be the principal residence of the lowing new item: paragraph: taxpayer (and, if married, the taxpayer’s ‘‘(12) SPECIAL RULES FOR SUBPRIME ‘‘Sec. 36. First-time homebuyer credit.’’. spouse)) before the end of the recapture pe- REFINANCINGS.— (c) EFFECTIVE DATE.—The amendments riod— ‘‘(A) IN GENERAL.—Notwithstanding the re- made by this section shall apply to resi- ‘‘(A) the tax imposed by this chapter for quirements of subsection (i)(1), the proceeds dences purchased on or after April 9, 2008, in the taxable year of such disposition or ces- of a qualified mortgage issue may be used to sation, shall be increased by the excess of taxable years ending on or after such date. refinance a mortgage on a residence which the amount of the credit allowed over the SEC. 713. ADDITIONAL STANDARD DEDUCTION was originally financed by the mortgagor amounts of tax imposed by paragraph (1) for FOR REAL PROPERTY TAXES FOR through a qualified subprime loan. NONITEMIZERS. preceding taxable years, and ‘‘(B) SPECIAL RULES.—In applying subpara- (a) IN GENERAL.—Section 63(c)(1) (defining ‘‘(B) paragraph (1) shall not apply with re- graph (A) to any refinancing— standard deduction) is amended by striking spect to such credit for such taxable year or ‘‘(i) subsection (a)(2)(D)(i) shall be applied ‘‘and’’ at the end of subparagraph (A), by any subsequent taxable year. by substituting ‘12-month period’ for ‘42- striking the period at the end of subpara- ‘‘(3) LIMITATION BASED ON GAIN.—In the month period’ each place it appears, graph (B) and inserting ‘‘, and’’, and by add- case of the sale of the principal residence to ‘‘(ii) subsection (d) (relating to 3-year re- ing at the end the following new subpara- a person who is not related to the taxpayer, quirement) shall not apply, and graph: the increase in tax determined under para- ‘‘(iii) subsection (e) (relating to purchase graph (2) shall not exceed the amount of gain ‘‘(C) in the case of any taxable year begin- price requirement) shall be applied by using (if any) on such sale. Solely for purposes of ning in 2008, the real property tax deduc- the market value of the residence at the the preceding sentence, the adjusted basis of tion.’’. time of refinancing in lieu of the acquisition (b) DEFINITION.—Section 63(c) is amended such residence shall be reduced by the cost. by adding at the end the following new para- amount of the credit allowed under sub- ‘‘(C) QUALIFIED SUBPRIME LOAN.—The term graph: section (a) to the extent not previously re- ‘qualified subprime loan’ means an adjust- ‘‘(7) REAL PROPERTY TAX DEDUCTION.—For captured under paragraph (1). able rate single-family residential mortgage purposes of paragraph (1), the real property ‘‘(4) EXCEPTIONS.— loan made after December 31, 2001, and before tax deduction is the lesser of— ‘‘(A) DEATH OF TAXPAYER.—Paragraphs (1) January 1, 2008, that the bond issuer deter- ‘‘(A) the amount allowable as a deduction and (2) shall not apply to any taxable year mines would be reasonably likely to cause fi- under this chapter for State and local taxes ending after the date of the taxpayer’s death. nancial hardship to the borrower if not refi- described in section 164(a)(1), or ‘‘(B) INVOLUNTARY CONVERSION.—Paragraph nanced. ‘‘(B) $350 ($700 in the case of a joint return). (2) shall not apply in the case of a residence ‘‘(D) TERMINATION.—This paragraph shall which is compulsorily or involuntarily con- Any taxes taken into account under section not apply to any bonds issued after Decem- verted (within the meaning of section 62(a) shall not be taken into account under ber 31, 2010.’’. 1033(a)) if the taxpayer acquires a new prin- this paragraph.’’. (c) EFFECTIVE DATE.—The amendments cipal residence during the 2-year period be- (c) EFFECTIVE DATE.—The amendments made by this section shall apply to bonds ginning on the date of the disposition or ces- made by this section shall apply to taxable issued after the date of the enactment of this sation referred to in paragraph (2). Para- years beginning after December 31, 2007. Act. graph (2) shall apply to such new principal PART 3—GENERAL PROVISIONS SEC. 716. REPEAL OF ALTERNATIVE MINIMUM residence during the recapture period in the TAX LIMITATIONS ON TAX-EXEMPT SEC. 715. TEMPORARY LIBERALIZATION OF TAX- HOUSING BONDS, LOW-INCOME same manner as if such new principal resi- EXEMPT HOUSING BOND RULES. HOUSING TAX CREDIT, AND REHA- dence were the converted residence. (a) TEMPORARY INCREASE IN VOLUME CAP.— BILITATION CREDIT. ‘‘(C) TRANSFERS BETWEEN SPOUSES OR INCI- (1) IN GENERAL.—Subsection (d) of section (a) TAX-EXEMPT INTEREST ON CERTAIN DENT TO DIVORCE.—In the case of a transfer of 146 is amended by adding at the end the fol- HOUSING BONDS EXEMPTED FROM ALTER- a residence to which section 1041(a) applies— lowing new paragraph: NATIVE MINIMUM TAX.— ‘‘(i) paragraph (2) shall not apply to such ‘‘(5) INCREASE AND SET ASIDE FOR HOUSING (1) IN GENERAL.—Subparagraph (C) of sec- transfer, and BONDS FOR 2008.— tion 57(a)(5) (relating to specified private ac- ‘‘(ii) in the case of taxable years ending ‘‘(A) INCREASE FOR 2008.—In the case of cal- tivity bonds) is amended by redesignating after such transfer, paragraphs (1) and (2) endar year 2008, the State ceiling for each clauses (iii) and (iv) as clauses (iv) and (v), shall apply to the transferee in the same State shall be increased by an amount equal respectively, and by inserting after clause manner as if such transferee were the trans- to $10,000,000,000 multiplied by a fraction— (ii) the following new clause: feror (and shall not apply to the transferor). ‘‘(i) the numerator of which is the popu- ‘‘(iii) EXCEPTION FOR CERTAIN HOUSING ‘‘(5) JOINT RETURNS.—In the case of a credit lation of such State, and BONDS.—For purposes of clause (i), the term allowed under subsection (a) with respect to ‘‘(ii) the denominator of which is the total ‘private activity bond’ shall not include any a joint return, half of such credit shall be population of all States. bond issued after the date of the enactment treated as having been allowed to each indi- ‘‘(B) SET ASIDE.— of this clause if such bond is—

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00087 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.007 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3276 CONGRESSIONAL RECORD — HOUSE May 8, 2008 ‘‘(I) an exempt facility bond issued as part guarantee by a Federal home loan bank un- affidavit described in paragraph (3) of sub- of an issue 95 percent or more of the net pro- less such bank meets safety and soundness section (b), and ceeds of which are to be used to provide collateral requirements for such guarantees ‘‘(B) in the case of— qualified residential rental projects (as de- which are at least as stringent as such re- ‘‘(i) any transferor’s agent— fined in section 142(d)), quirements which apply under regulations ‘‘(I) such agent has actual knowledge that ‘‘(II) a qualified mortgage bond (as defined applicable to such guarantees by Federal such affidavit is false, or in section 143(a)), or home loan banks as in effect on April 9, ‘‘(II) in the case of an affidavit described in ‘‘(III) a qualified veterans’ mortgage bond 2008.’’. subsection (b)(2) furnished by a corporation, (as defined in section 143(b)). (c) EFFECTIVE DATE.—The amendments such corporation is a foreign corporation, or The preceding sentence shall not apply to made by this section shall apply to guaran- ‘‘(ii) any transferee’s agent or qualified any refunding bond unless such preceding tees made after the date of the enactment of substitute, such agent or substitute has ac- sentence applied to the refunded bond (or in this Act. tual knowledge that such affidavit is false, the case of a series of refundings, the origi- SEC. 718. MODIFICATION OF RULES PERTAINING such agent or qualified substitute shall so nal bond).’’. TO FIRPTA NONFOREIGN AFFIDA- notify the transferee at such time and in (2) NO ADJUSTMENT TO ADJUSTED CURRENT VITS. such manner as the Secretary shall require EARNINGS.—Subparagraph (B) of section (a) IN GENERAL.—Subsection (b) of section by regulations.’’. 56(g)(4) is amended by adding at the end the 1445 (relating to exemptions) is amended by (B) FAILURE TO FURNISH NOTICE.—Para- following new clause: adding at the end the following: graph (2) of section 1445(d) (relating to fail- ‘‘(iii) TAX EXEMPT INTEREST ON CERTAIN ‘‘(9) ALTERNATIVE PROCEDURE FOR FUR- ure to furnish notice) is amended to read as HOUSING BONDS.—Clause (i) shall not apply in NISHING NONFOREIGN AFFIDAVIT.—For pur- follows: the case of any interest on a bond to which poses of paragraphs (2) and (7)— ‘‘(2) FAILURE TO FURNISH NOTICE.— section 57(a)(5)(C)(iii) applies.’’. ‘‘(A) IN GENERAL.—Paragraph (2) shall be ‘‘(A) IN GENERAL.—If any transferor’s (b) ALLOWANCE OF LOW-INCOME HOUSING treated as applying to a transaction if, in agent, transferee’s agent, or qualified sub- CREDIT AGAINST ALTERNATIVE MINIMUM connection with a disposition of a United stitute is required by paragraph (1) to fur- TAX.—Subparagraph (B) of section 38(c)(4) States real property interest— nish notice, but fails to furnish such notice (relating to specified credits) is amended by ‘‘(i) the affidavit specified in paragraph (2) at such time or times and in such manner as redesignating clauses (ii) through (iv) as is furnished to a qualified substitute, and may be required by regulations, such agent clauses (iii) through (v) and inserting after ‘‘(ii) the qualified substitute furnishes a or substitute shall have the same duty to de- clause (i) the following new clause: statement to the transferee stating, under duct and withhold that the transferee would ‘‘(ii) the credit determined under section 42 penalty of perjury, that the qualified sub- have had if such agent or substitute had to the extent attributable to buildings stitute has such affidavit in his possession. complied with paragraph (1). placed in service after December 31, 2007,’’. ‘‘(B) REGULATIONS.—The Secretary shall ‘‘(B) LIABILITY LIMITED TO AMOUNT OF COM- (c) ALLOWANCE OF REHABILITATION CREDIT prescribe such regulations as may be nec- PENSATION.—An agent’s or substitute’s liabil- AGAINST ALTERNATIVE MINIMUM TAX.—Sub- essary or appropriate to carry out this para- ity under subparagraph (A) shall be limited paragraph (B) of section 38(c)(4), as amended graph.’’. to the amount of compensation the agent or by subsection (b), is amended by striking (b) QUALIFIED SUBSTITUTE.—Subsection (f) substitute derives from the transaction.’’. ‘‘and’’ at the end of clause (iv), by redesig- of section 1445 (relating to definitions) is (C) CONFORMING AMENDMENT.—The heading nating clause (v) as clause (vi), and by in- amended by adding at the end the following for section 1445(d) is amended by striking serting after clause (iv) the following new new paragraph: ‘‘OR TRANSFEREE’S AGENTS’’ and inserting ‘‘, clause: ‘‘(6) QUALIFIED SUBSTITUTE.—The term TRANSFEREE’S AGENTS, OR QUALIFIED SUB- ‘‘(v) the credit determined under section 47 ‘qualified substitute’ means, with respect to STITUTES’’. to the extent attributable to qualified reha- a disposition of a United States real property (d) EFFECTIVE DATE.—The amendments bilitation expenditures properly taken into interest— made by this section shall apply to disposi- account for periods after December 31, 2007, ‘‘(A) the person (including any attorney or tions of United States real property interests and’’. title company) responsible for closing the after the date of the enactment of this Act. (d) EFFECTIVE DATE.— transaction, other than the transferor’s SEC. 719. MODIFICATION OF DEFINITION OF TAX- (1) HOUSING BONDS.—The amendments agent, and EXEMPT USE PROPERTY FOR PUR- made by subsection (a) shall apply to bonds ‘‘(B) the transferee’s agent.’’. POSES OF THE REHABILITATION CREDIT. issued after the date of the enactment of this (c) EXEMPTION NOT TO APPLY IF KNOWL- Act. EDGE OR NOTICE THAT AFFIDAVIT OR STATE- (a) IN GENERAL.—Subclause (I) of section (2) LOW INCOME HOUSING CREDIT.—The MENT IS FALSE.— 47(c)(2)(B)(v) is amended by striking ‘‘section amendments made by subsection (b) shall (1) IN GENERAL.—Paragraph (7) of section 168(h)’’ and inserting ‘‘section 168(h), except apply to credits determined under section 42 1445(b) (relating to special rules for para- that ‘50 percent’ shall be substituted for ‘35 of the Internal Revenue Code of 1986 to the graphs (2) and (3)) is amended to read as fol- percent’ in paragraph (1)(B)(iii) thereof’’. extent attributable to buildings placed in lows: (b) EFFECTIVE DATE.—The amendments made by this section shall apply to expendi- service after December 31, 2007. ‘‘(7) SPECIAL RULES FOR PARAGRAPHS (2), (3), tures properly taken into account for periods (3) REHABILITATION CREDIT.—The amend- AND (9).—Paragraph (2), (3), or (9) (as the case ments made by subsection (c) shall apply to may be) shall not apply to any disposition— after December 31, 2007. credits determined under section 47 of the In- ‘‘(A) if— Subtitle B—Reforms Related to Real Estate ternal Revenue Code of 1986 to the extent at- ‘‘(i) the transferee or qualified substitute Investment Trusts tributable to qualified rehabilitation expend- has actual knowledge that the affidavit re- PART 1—FOREIGN CURRENCY AND OTHER itures properly taken into account for peri- ferred to in such paragraph, or the statement QUALIFIED ACTIVITIES ods after December 31, 2007. referred to in paragraph (9)(A)(ii), is false, or SEC. 721. REVISIONS TO REIT INCOME TESTS. SEC. 717. BONDS GUARANTEED BY FEDERAL ‘‘(ii) the transferee or qualified substitute (a) ADDITION OF PERMISSIBLE INCOME CAT- HOME LOAN BANKS ELIGIBLE FOR receives a notice (as described in subsection EGORIES.—Section 856(c) (relating to limita- TREATMENT AS TAX-EXEMPT BONDS. (d)) from a transferor’s agent, transferee’s tions) is amended— (a) IN GENERAL.—Subparagraph (A) of sec- agent, or qualified substitute that such affi- (1) by striking ‘‘and’’ at the end of para- tion 149(b)(3) (relating to exceptions for cer- davit or statement is false, or graph (2)(G) and by inserting after paragraph tain insurance programs) is amended by ‘‘(B) if the Secretary by regulations re- (2)(H) the following new subparagraphs: striking ‘‘or’’ at the end of clause (ii), by quires the transferee or qualified substitute ‘‘(I) passive foreign exchange gains; and striking the period at the end of clause (iii) to furnish a copy of such affidavit or state- ‘‘(J) any other item of income or gain as and inserting ‘‘, or’’ and by adding at the end ment to the Secretary and the transferee or determined by the Secretary;’’, and the following new clause: qualified substitute fails to furnish a copy of (2) by striking ‘‘and’’ at the end of para- ‘‘(iv) any guarantee by a Federal home such affidavit or statement to the Secretary graphs (3)(H) and (3)(I) and by inserting after loan bank made in connection with the origi- at such time and in such manner as required paragraph (3)(I) the following new subpara- nal issuance of a bond during the period be- by such regulations.’’. graphs: ginning on the date of the enactment of this (2) LIABILITY.— ‘‘(J) real estate foreign exchange gains; Act and ending on December 31, 2010 (or a re- (A) NOTICE.—Paragraph (1) of section and newal or extension of a guarantee so 1445(d) (relating to notice of false affidavit; ‘‘(K) any other item of income or gain as made).’’. foreign corporations) is amended to read as determined by the Secretary; and’’. (b) SAFETY AND SOUNDNESS REQUIRE- follows: (b) RULES REGARDING FOREIGN CURRENCY MENTS.—Paragraph (3) of section 149(b) is ‘‘(1) NOTICE OF FALSE AFFIDAVIT; FOREIGN TRANSACTIONS.—Section 856 (defining real es- amended by adding at the end the following CORPORATIONS.—If— tate investment trust) is amended by adding new subparagraph: ‘‘(A) the transferor furnishes the transferee at the end the following new subsection: ‘‘(E) SAFETY AND SOUNDNESS REQUIREMENTS or qualified substitute an affidavit described ‘‘(n) RULES REGARDING FOREIGN CURRENCY FOR FEDERAL HOME LOAN BANKS.—Clause (iv) in paragraph (2) of subsection (b) or a domes- TRANSACTIONS.—With respect to any taxable of subparagraph (A) shall not apply to any tic corporation furnishes the transferee an year—

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00088 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.007 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3277

‘‘(1) REAL ESTATE FOREIGN EXCHANGE section 856(c)(4)(B)(iii)(III) is amended by in- sets of the trust as of the beginning of the GAINS.—For purposes of subsection (c)(3)(J), serting ‘‘(including a discrepancy caused taxable year,’’. the term ‘real estate foreign exchange gains’ solely by the change in the foreign currency PART 4—HEALTH CARE REITS means— exchange rate used to value a foreign asset)’’ SEC. 730. CONFORMITY FOR HEALTH CARE FA- ‘‘(A) foreign currency gains (as defined in after ‘‘such requirements’’. CILITIES. section 988(b)(1)) which are attributable to— (b) CLARIFICATION OF PERMISSIBLE ASSET (a) RELATED PARTY RENTALS.—Subpara- ‘‘(i) any item described in subsection (c)(3) CATEGORY.—Section 856(c)(5), as amended by graph (B) of section 856(d)(8) (relating to spe- (other than in subparagraph (J) thereof), section 721(d), is amended by adding at the cial rule for taxable REIT subsidiaries) is ‘‘(ii) the acquisition or ownership of obliga- end the following new subparagraph: amended to read as follows: tions secured by mortgages on real property ‘‘(I) CASH.—The term ‘cash’ includes for- ‘‘(B) EXCEPTION FOR CERTAIN LODGING FA- or on interests in real property (other than eign currency if the real estate investment CILITIES AND HEALTH CARE PROPERTY.—The foreign currency gains attributable to any trust or its qualified business unit (as de- requirements of this subparagraph are met item described in clause (i)), or fined in section 989) uses such foreign cur- with respect to an interest in real property ‘‘(iii) becoming or being the obligor under rency as its functional currency (as defined which is a qualified lodging facility or a obligations secured by mortgages on real in section 985(b)).’’. qualified health care property (as defined in property or on interests in real property SEC. 723. CONFORMING FOREIGN CURRENCY RE- subsection (e)(6)(D)(i)) leased by the trust to (other than foreign currency gains attrib- VISIONS. a taxable REIT subsidiary of the trust if the utable to any item described in clause (i)), (a) NET INCOME FROM FORECLOSURE PROP- property is operated on behalf of such sub- ‘‘(B) gains described in section 987 attrib- ERTY.—Clause (i) of section 857(b)(4)(B) is sidiary by a person who is an eligible inde- utable to a qualified business unit (as defined amended to read as follows: pendent contractor. For purposes of this sec- by section 989) of the real estate investment ‘‘(i) gain (including any foreign currency tion, a taxable REIT subsidiary is not con- trust, but only if such qualified business unit gain, as defined in section 988(b)(1)) from the sidered to be operating or managing a quali- meets the requirements under— sale or other disposition of foreclosure prop- fied health care property or qualified lodging ‘‘(i) subsection (c)(3) (without regard to erty described in section 1221(a)(1) and the facility solely because it directly or indi- subparagraph (J) thereof) for the taxable gross income for the taxable year derived rectly possesses a license, permit or similar year, and from foreclosure property (as defined in sec- instrument enabling it to do so.’’. ‘‘(ii) subsection (c)(4)(A) at the close of tion 856(e)), but only to the extent such gross (b) ELIGIBLE INDEPENDENT CONTRACTOR.— each quarter that the real estate investment income is not described in (or, in the case of Subparagraphs (A) and (B) of section 856(d)(9) trust has directly or indirectly held the foreign currency gain, not attributable to (relating to eligible independent contractor) qualified business unit, and gross income described in) section 856(c)(3) are amended to read as follows: ‘‘(C) any other foreign currency gains as other than subparagraph (F) thereof, over’’. ‘‘(A) IN GENERAL.—The term ‘eligible inde- determined by the Secretary. (b) NET INCOME FROM PROHIBITED TRANS- pendent contractor’ means, with respect to ‘‘(2) PASSIVE FOREIGN EXCHANGE GAINS.— ACTIONS.—Clause (i) of section 857(b)(6)(B) is any qualified lodging facility or qualified For purposes of subsection (c)(2)(I), the term amended to read as follows: health care property (as defined in sub- ‘passive foreign exchange gains’ means— ‘‘(i) the term ‘net income derived from pro- section (e)(6)(D)(i)), any independent con- ‘‘(A) real estate foreign exchange gains, hibited transactions’ means the excess of the tractor if, at the time such contractor enters ‘‘(B) foreign currency gains (as defined in gain (including any foreign currency gain, as into a management agreement or other simi- section 988(b)(1)) which are not described in defined in section 988(b)(1)) from prohibited lar service contract with the taxable REIT subparagraph (A) and which are attributable transactions over the deductions (including subsidiary to operate such qualified lodging to any item described in subsection (c)(2) any foreign currency loss, as defined in sec- facility or qualified health care property, (other than in subparagraph (I) thereof), and tion 988(b)(2)) allowed by this chapter which such contractor (or any related person) is ac- ‘‘(C) any other foreign currency gains as are directly connected with prohibited trans- tively engaged in the trade or business of op- determined by the Secretary.’’. actions;’’. erating qualified lodging facilities or quali- (c) ADDITION TO REIT HEDGING RULE.—Sub- PART 2—TAXABLE REIT SUBSIDIARIES fied health care properties, respectively, for paragraph (G) of section 856(c)(5) is amended any person who is not a related person with to read as follows: SEC. 725. CONFORMING TAXABLE REIT SUB- respect to the real estate investment trust SIDIARY ASSET TEST. ‘‘(G) TREATMENT OF CERTAIN HEDGING IN- or the taxable REIT subsidiary. Section 856(c)(4)(B)(ii) is amended by strik- STRUMENTS.—Except to the extent as deter- ‘‘(B) SPECIAL RULES.—Solely for purposes mined by the Secretary— ing ‘‘20 percent’’ and inserting ‘‘25 percent’’. of this paragraph and paragraph (8)(B), a per- ‘‘(i) any income of a real estate investment PART 3—DEALER SALES son shall not fail to be treated as an inde- trust from a hedging transaction (as defined SEC. 727. HOLDING PERIOD UNDER SAFE HAR- pendent contractor with respect to any in clause (ii) or (iii) of section 1221(b)(2)(A)) BOR. qualified lodging facility or qualified health which is clearly identified pursuant to sec- Section 857(b)(6) (relating to income from care property (as so defined) by reason of the tion 1221(a)(7), including gain from the sale prohibited transactions) is amended— following: or disposition of such a transaction, shall (1) by striking ‘‘4 years’’ in subparagraphs ‘‘(i) The taxable REIT subsidiary bears the not constitute gross income under para- (C)(i), (C)(iv), and (D)(i) and inserting ‘‘2 expenses for the operation of such qualified graphs (2) and (3) to the extent that the years’’, lodging facility or qualified health care prop- transaction hedges any indebtedness in- (2) by striking ‘‘4-year period’’ in subpara- erty pursuant to the management agreement curred or to be incurred by the trust to ac- graphs (C)(ii), (D)(ii), and (D)(iii) and insert- or other similar service contract. quire or carry real estate assets, and ing ‘‘2-year period’’, and ‘‘(ii) The taxable REIT subsidiary receives ‘‘(ii) any income of a real estate invest- (3) by striking ‘‘real estate asset’’and all the revenues from the operation of such ment trust from a transaction entered into that follows through ‘‘if’’ in the matter pre- qualified lodging facility or qualified health by the trust primarily to manage risk of cur- ceding clause (i) of subparagraphs (C) and care property, net of expenses for such oper- rency fluctuations with respect to any item (D), respectively, and inserting ‘‘real estate ation and fees payable to the operator pursu- described in paragraph (2) or (3), including asset (as defined in section 856(c)(5)(B)) and ant to such agreement or contract. gain from the termination of such a trans- which is described in section 1221(a)(1) if’’. ‘‘(iii) The real estate investment trust re- action, shall not constitute gross income SEC. 728. DETERMINING VALUE OF SALES UNDER ceives income from such person with respect under paragraphs (2) and (3), but only if such SAFE HARBOR. to another property that is attributable to a transaction is clearly identified as such be- Section 857(b)(6) is amended— lease of such other property to such person fore the close of the day on which it was ac- (1) by striking the semicolon at the end of that was in effect as of the later of— quired, originated, or entered into (or such subparagraph (C)(iii) and inserting ‘‘, or (III) ‘‘(I) January 1, 1999, or other time as the Secretary may pre- the fair market value of property (other than ‘‘(II) the earliest date that any taxable scribe).’’. sales of foreclosure property or sales to REIT subsidiary of such trust entered into a (d) AUTHORITY TO EXCLUDE ITEMS OF IN- which section 1033 applies) sold during the management agreement or other similar COME FROM REIT INCOME TESTS.—Section taxable year does not exceed 10 percent of service contract with such person with re- 856(c)(5) is amended by adding at the end the the fair market value of all of the assets of spect to such qualified lodging facility or following new subparagraph: the trust as of the beginning of the taxable qualified health care property.’’. ‘‘(H) SECRETARIAL AUTHORITY TO EXCLUDE year;’’, and (c) TAXABLE REIT SUBSIDIARIES.—The last OTHER ITEMS OF INCOME.—The Secretary is (2) by adding ‘‘or’’ at the end of subclause sentence of section 856(l)(3) is amended— authorized to determine whether any item of (II) of subparagraph (D)(iv) and by adding at (1) by inserting ‘‘or a health care facility’’ income or gain which does not otherwise the end of such subparagraph the following after ‘‘a lodging facility’’, and qualify under paragraph (2) or (3) may be new subclause: (2) by inserting ‘‘or health care facility’’ considered as not constituting gross income ‘‘(III) the fair market value of property after ‘‘such lodging facility’’. solely for purposes of this part.’’. (other than sales of foreclosure property or PART 5—EFFECTIVE DATES SEC. 722. REVISIONS TO REIT ASSET TESTS. sales to which section 1033 applies) sold dur- SEC. 732. EFFECTIVE DATES. (a) CLARIFICATION OF VALUATION TEST.— ing the taxable year does not exceed 10 per- (a) IN GENERAL.—Except as otherwise pro- The first sentence in the matter following cent of the fair market value of all of the as- vided in this section, the amendments made

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00089 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.007 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3278 CONGRESSIONAL RECORD — HOUSE May 8, 2008 by this subtitle shall apply to taxable years ‘‘(ii) was transferred to such account from the year following the calendar year in beginning after the date of the enactment of an account in which such security was a cov- which the payment was made.’’. this Act. ered security, but only if the broker received (C) OTHER STATEMENTS.—Subsection (b) of (b) REIT INCOME TESTS.— a statement under section 6045A with respect section 6045 is amended by adding at the end (1) The amendment made by section 721(a) to the transfer. the following: ‘‘In the case of a consolidated and (b) shall apply to gains and items of in- ‘‘(B) SPECIFIED SECURITY.—The term ‘speci- reporting statement (as defined in regula- come recognized after the date of the enact- fied security’ means— tions) with respect to any account, any ment of this Act. ‘‘(i) any share of stock in a corporation, statement which would otherwise be re- (2) The amendment made by section 721(c) ‘‘(ii) any note, bond, debenture, or other quired to be furnished on or before January shall apply to transactions entered into after evidence of indebtedness, 31 of a calendar year with respect to any the date of the enactment of this Act. ‘‘(iii) any commodity, or contract or deriv- item reportable to the taxpayer shall instead (3) The amendment made by section 721(d) ative with respect to such commodity, if the be required to be furnished on or before Feb- shall apply after the date of the enactment Secretary determines that adjusted basis re- ruary 15 of such calendar year if furnished of this Act. porting is appropriate for purposes of this with such consolidated reporting state- (c) CONFORMING FOREIGN CURRENCY REVI- subsection, and ment.’’. SIONS.— ‘‘(iv) any other financial instrument with (b) DETERMINATION OF BASIS OF CERTAIN (1) The amendment made by section 723(a) respect to which the Secretary determines SECURITIES ON ACCOUNT BY ACCOUNT OR AVER- shall apply to gains recognized after the date that adjusted basis reporting is appropriate AGE BASIS METHOD.—Section 1012 (relating to of the enactment of this Act. for purposes of this subsection. basis of property–cost) is amended— (2) The amendment made by section 723(b) ‘‘(C) APPLICABLE DATE.—The term ‘applica- (1) by striking ‘‘The basis of property’’ and shall apply to gains and deductions recog- ble date’ means— inserting the following: nized after the date of the enactment of this ‘‘(i) January 1, 2010, in the case of any spec- ‘‘(a) IN GENERAL.—The basis of property’’, Act. ified security which is stock in a corporation (2) by striking ‘‘The cost of real property’’ (d) DEALER SALES.—The amendments made (other than any stock described in clause and inserting the following: by part 3 shall apply to sales made after the (ii)), date of the enactment of this Act. ‘‘(b) SPECIAL RULE FOR APPORTIONED REAL ‘‘(ii) January 1, 2011, in the case of any ESTATE TAXES.—The cost of real property’’, Subtitle C—Revenue Provisions stock for which an average basis method is and SEC. 741. BROKER REPORTING OF CUSTOMER’S permissible under section 1012, and (3) by adding at the end the following new BASIS IN SECURITIES TRANS- ‘‘(iii) January 1, 2012, or such later date de- subsections: ACTIONS. termined by the Secretary in the case of any ‘‘(c) DETERMINATIONS BY ACCOUNT.— (a) IN GENERAL.— other specified security. ‘‘(1) IN GENERAL.—In the case of the sale, (1) BROKER REPORTING FOR SECURITIES ‘‘(4) TREATMENT OF S CORPORATIONS.—In exchange, or other disposition of a specified TRANSACTIONS.—Section 6045 (relating to re- the case of the sale of a covered security ac- security on or after the applicable date, the turns of brokers) is amended by adding at quired by an S corporation (other than a fi- the end the following new subsection: conventions prescribed by regulations under nancial institution) after December 31, 2011, this section shall be applied on an account ‘‘(g) ADDITIONAL INFORMATION REQUIRED IN such S corporation shall be treated in the by account basis. THE CASE OF SECURITIES TRANSACTIONS, same manner as a partnership for purposes of ‘‘(2) APPLICATION TO OPEN-END FUNDS.— ETC.— this section. ‘‘(A) IN GENERAL.—Except as provided in ‘‘(1) IN GENERAL.—If a broker is otherwise ‘‘(5) SPECIAL RULES FOR SHORT SALES.—In subparagraph (B), any stock in an open-end required to make a return under subsection the case of a short sale, reporting under this fund acquired before January 1, 2011, shall be (a) with respect to the gross proceeds of the section shall be made for the year in which treated as a separate account from any such sale of a covered security, the broker shall such sale is closed.’’. stock acquired on or after such date. include in such return the information de- (2) BROKER INFORMATION REQUIRED WITH RE- ‘‘(B) ELECTION BY OPEN-END FUND FOR scribed in paragraph (2). SPECT TO OPTIONS.—Section 6045, as amended TREATMENT AS SINGLE ACCOUNT.—If an open- ‘‘(2) ADDITIONAL INFORMATION REQUIRED.— by subsection (a), is amended by adding at end fund elects to have this subparagraph ‘‘(A) IN GENERAL.—The information re- the end the following new subsection: quired under paragraph (1) to be shown on a ‘‘(h) APPLICATION TO OPTIONS ON SECURI- apply with respect to one or more of its return with respect to a covered security of TIES.— stockholders— a customer shall include the customer’s ad- ‘‘(1) EXERCISE OF OPTION.—For purposes of ‘‘(i) subparagraph (A) shall not apply with justed basis in such security and whether this section, if a covered security is acquired respect to any stock in such fund held by any gain or loss with respect to such secu- or disposed of pursuant to the exercise of an such stockholders, and rity is long-term or short-term (within the option that was granted or acquired in the ‘‘(ii) all stock in such fund which is held by meaning of section 1222). same account as the covered security, the such stockholders shall be treated as covered ‘‘(B) DETERMINATION OF ADJUSTED BASIS.— amount received with respect to the grant or securities described in section 6045(g)(3) For purposes of subparagraph (A)— paid with respect to the acquisition of such without regard to the date of the acquisition ‘‘(i) IN GENERAL.—The customer’s adjusted option shall be treated as an adjustment to of such stock. basis shall be determined— gross proceeds or as an adjustment to basis, A rule similar to the rule of the preceding ‘‘(I) in the case of any security (other than as the case may be. sentence shall apply with respect to a broker any stock for which an average basis method ‘‘(2) LAPSE OR CLOSING TRANSACTION.—In holding stock in an open-end fund as a nomi- is permissible under section 1012), in accord- the case of the lapse (or closing transaction nee. ance with the first-in first-out method unless (as defined in section 1234(b)(2)(A))) of an op- ‘‘(3) DEFINITIONS.—For purposes of this sec- the customer notifies the broker by means of tion on a specified security or the exercise of tion— making an adequate identification of the a cash-settled option on a specified security, ‘‘(A) OPEN-END FUND.—The term ‘open-end stock sold or transferred, and reporting under subsections (a) and (g) with fund’ means a regulated investment com- ‘‘(II) in the case of any stock for which an respect to such option shall be made for the pany (as defined in section 851) which is of- average basis method is permissible under calendar year which includes the date of fering for sale or has outstanding any re- section 1012, in accordance with the broker’s such lapse, closing transaction, or exercise. deemable security of which it is the issuer. default method unless the customer notifies ‘‘(3) PROSPECTIVE APPLICATION.—Para- Any stock which is traded on an established the broker that he elects another acceptable graphs (1) and (2) shall not apply to any op- securities exchange shall not be treated as method under section 1012 with respect to tion which is granted or acquired before Jan- stock in an open-end fund. the account in which such stock is held. uary 1, 2012. ‘‘(B) SPECIFIED SECURITY; APPLICABLE ‘‘(ii) EXCEPTION FOR WASH SALES.—Except ‘‘(4) DEFINITIONS.—For purposes of this sub- DATE.—The terms ‘specified security’ and as otherwise provided by the Secretary, the section, the terms ‘covered security’ and ‘applicable date’ shall have the meaning customer’s adjusted basis shall be deter- ‘specified security’ shall have the meanings given such terms in section 6045(g). mined without regard to section 1091 (relat- given such terms in subsection (g)(3).’’. ‘‘(d) AVERAGE BASIS FOR STOCK ACQUIRED ing to loss from wash sales of stock or secu- (3) EXTENSION OF PERIOD FOR STATEMENTS PURSUANT TO A DIVIDEND REINVESTMENT rities) unless the transactions occur in the SENT TO CUSTOMERS.— PLAN.— same account with respect to identical secu- (A) IN GENERAL.—Subsection (b) of section ‘‘(1) IN GENERAL.—In the case of any stock rities. 6045 is amended by striking ‘‘January 31’’ acquired after December 31, 2010, in connec- ‘‘(3) COVERED SECURITY.—For purposes of and inserting ‘‘February 15’’. tion with a dividend reinvestment plan, the this subsection— (B) STATEMENTS RELATED TO SUBSTITUTE basis of such stock while held as part of such ‘‘(A) IN GENERAL.—The term ‘covered secu- PAYMENTS.—Subsection (d) of section 6045 is plan shall be determined using one of the rity’ means any specified security acquired amended— methods which may be used for determining on or after the applicable date if such secu- (i) by striking ‘‘at such time and’’, and the basis of stock in an open-end fund. rity— (ii) by inserting after ‘‘other item.’’ the ‘‘(2) TREATMENT AFTER TRANSFER.—In the ‘‘(i) was acquired through a transaction in following new sentence: ‘‘The written state- case of the transfer to another account of the account in which such security is held, ment required under the preceding sentence stock to which paragraph (1) applies, such or shall be furnished on or before February 15 of stock shall have a cost basis in such other

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00090 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.008 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3279 account equal to its basis in the dividend re- ‘‘(1) a description of any organizational ac- inserting after the item relating to section investment plan immediately before such tion which affects the basis of such specified 6045A the following new item: transfer (properly adjusted for any fees or security of such issuer, ‘‘Sec. 6045B. Returns relating to actions af- other charges taken into account in connec- ‘‘(2) the quantitative effect on the basis of fecting basis of specified securi- tion with such transfer). such specified security resulting from such ties.’’. ‘‘(3) SEPARATE ACCOUNTS; ELECTION FOR action, and (e) EFFECTIVE DATE.— TREATMENT AS SINGLE ACCOUNT.—Rules simi- ‘‘(3) such other information as the Sec- (1) IN GENERAL.—Except as otherwise pro- lar to the rules of subsection (c)(2) shall retary may prescribe. vided in this subsection, the amendments apply for purposes of this subsection. ‘‘(b) TIME FOR FILING RETURN.—Any return made by this section shall take effect on ‘‘(4) DIVIDEND REINVESTMENT PLAN.—For required by subsection (a) shall be filed not January 1, 2010. purposes of this subsection— later than the earlier of— (2) EXTENSION OF PERIOD FOR STATEMENTS ‘‘(A) IN GENERAL.—The term ‘dividend rein- ‘‘(1) 45 days after the date of the action de- SENT TO CUSTOMERS.—The amendments made vestment plan’ means any arrangement scribed in subsection (a), or by subsection (a)(3) shall apply to state- under which dividends on any stock are rein- ‘‘(2) January 15 of the year following the ments required to be furnished after Decem- vested in stock identical to the stock with calendar year during which such action oc- ber 31, 2008. respect to which the dividends are paid. curred. SEC. 742. DELAY IN APPLICATION OF WORLD- ‘‘(B) INITIAL STOCK ACQUISITION TREATED AS ‘‘(c) STATEMENTS TO BE FURNISHED TO WIDE ALLOCATION OF INTEREST. ACQUIRED IN CONNECTION WITH PLAN.—Stock HOLDERS OF SPECIFIED SECURITIES OR THEIR (a) IN GENERAL.—Paragraphs (5)(D) and (6) shall be treated as acquired in connection NOMINEES.—According to the forms or regu- of section 864(f) are each amended by strik- with a dividend reinvestment plan if such lations prescribed by the Secretary, every ing ‘‘December 31, 2008’’ and inserting ‘‘De- stock is acquired pursuant to such plan or if person required to make a return under sub- cember 31, 2009’’. the dividends paid on such stock are subject section (a) with respect to a specified secu- (b) TRANSITIONAL RULE.—Subsection (f) of to such plan.’’. rity shall furnish to the nominee with re- section 864 is amended by adding at the end (c) INFORMATION BY TRANSFERORS TO AID spect to the specified security (or certificate the following new paragraph: BROKERS.— holder if there is no nominee) a written ‘‘(7) TRANSITION.—In the case of the first (1) IN GENERAL.—Subpart B of part III of statement showing— taxable year to which this subsection ap- subchapter A of chapter 61 is amended by in- ‘‘(1) the name, address, and phone number plies, the increase (if any) in the amount of serting after section 6045 the following new of the information contact of the person re- the interest expense allocable to sources section: quired to make such return, within the United States by reason of the ap- ‘‘SEC. 6045A. INFORMATION REQUIRED IN CON- ‘‘(2) the information required to be shown plication of this subsection shall be 78 per- NECTION WITH TRANSFERS OF COV- on such return with respect to such security, cent of the amount of such increase deter- ERED SECURITIES TO BROKERS. and mined without regard to this paragraph.’’. ‘‘(a) FURNISHING OF INFORMATION.—Every ‘‘(3) such other information as the Sec- (c) EFFECTIVE DATE.—The amendments applicable person which transfers to a broker retary may prescribe. made by this section shall apply to taxable (as defined in section 6045(c)(1)) a security The written statement required under the years beginning after December 31, 2008. which is a covered security (as defined in preceding sentence shall be furnished to the SEC. 743. TIME FOR PAYMENT OF CORPORATE ES- section 6045(g)(3)) in the hands of such appli- holder on or before January 15 of the year TIMATED TAXES. cable person shall furnish to such broker a following the calendar year during which the (a) REPEAL OF ADJUSTMENT FOR 2012.—Sub- written statement in such manner and set- action described in subsection (a) occurred. paragraph (B) of section 401(1) of the Tax In- ting forth such information as the Secretary ‘‘(d) SPECIFIED SECURITY.—For purposes of crease Prevention and Reconciliation Act of may by regulations prescribe for purposes of this section, the term ‘specified security’ has 2005 is amended by striking the percentage enabling such broker to meet the require- the meaning given such term by section contained therein and inserting ‘‘100 per- ments of section 6045(g). 6045(g)(3)(B). No return shall be required cent’’. ‘‘(b) APPLICABLE PERSON.—For purposes of under this section with respect to actions de- (b) MODIFICATION OF ADJUSTMENT FOR subsection (a), the term ‘applicable person’ scribed in subsection (a) with respect to a 2013.—The percentage under subparagraph means— specified security which occur before the ap- (C) of section 401(1) of the Tax Increase Pre- ‘‘(1) any broker (as defined in section plicable date (as defined in section vention and Reconciliation Act of 2005 in ef- 6045(c)(1)), and 6045(g)(3)(C)) with respect to such security. fect on the date of the enactment of this Act is increased by 13 percentage points. ‘‘(2) any other person as provided by the ‘‘(e) PUBLIC REPORTING IN LIEU OF RE- Secretary in regulations. TURN.—The Secretary may waive the re- Subtitle D—Coordination of Federal Housing ‘‘(c) TIME FOR FURNISHING STATEMENT.— quirements under subsections (a) and (c) Programs and Tax Incentives for Housing Except as otherwise provided by the Sec- with respect to a specified security, if the SEC. 751. SHORT TITLE. retary, any statement required by subsection person required to make the return under This subtitle may be cited as the ‘‘Housing (a) shall be furnished not later than 15 days subsection (a) makes publicly available, in Tax Credit Coordination Act of 2008’’. after the date of the transfer described in such form and manner as the Secretary de- SEC. 752. APPROVALS BY DEPARTMENT OF HOUS- such subsection.’’. termines necessary to carry out the purposes ING AND URBAN DEVELOPMENT. (2) ASSESSABLE PENALTIES.—Paragraph (2) of this section— (a) ADMINISTRATIVE AND PROCEDURAL of section 6724(d) (defining payee statement) ‘‘(1) the name, address, phone number, and CHANGES.— is amended by redesignating subparagraphs email address of the information contact of (1) IN GENERAL.—The Secretary of Housing (I) through (CC) as subparagraphs (J) such person, and and Urban Development (in this section re- through (DD), respectively, and by inserting ‘‘(2) the information described in para- ferred to as the ‘‘Secretary’’) shall, not later after subparagraph (H) the following new graphs (1), (2), and (3) of subsection (a).’’. than the expiration of the 6-month period be- subparagraph: (2) ASSESSABLE PENALTIES.— ginning upon after the date of the enactment ‘‘(I) section 6045A (relating to information (A) Subparagraph (B) of section 6724(d)(1) of this Act, implement administrative and required in connection with transfers of cov- of such Code (defining information return) is procedural changes to expedite approval of ered securities to brokers),’’. amended by redesignating clause (iv) and multifamily housing projects under the ju- (3) CLERICAL AMENDMENT.—The table of each of the clauses which follow as clauses risdiction of the Department of Housing and sections for subpart B of part III of sub- (v) through (xxii), respectively, and by in- Urban Development that meet the require- chapter A of chapter 61 is amended by insert- serting after clause (iii) the following new ments of the Secretary for such approvals. ing after the item relating to section 6045 the clause: (2) PROJECTS.—The multifamily housing following new item: ‘‘(iv) section 6045B(a) (relating to returns projects referred to in paragraph (1) shall in- ‘‘Sec. 6045A. Information required in connec- relating to actions affecting basis of speci- clude— tion with transfers of covered fied securities),’’. (A) projects for which assistance is pro- securities to brokers.’’. (B) Paragraph (2) of section 6724(d) of such vided by such Department in conjunction (d) ADDITIONAL ISSUER INFORMATION TO AID Code (defining payee statement), as amended with any low-income housing tax credits BROKERS.— by subsection (c)(2), is amended by redesig- under section 42 of the Internal Revenue (1) IN GENERAL.—Subpart B of part III of nating subparagraphs (J) through (DD) as Code of 1986 or tax-exempt housing bonds; subchapter A of chapter 61, as amended by subparagraphs (K) through (EE), respec- and subsection (b), is amended by inserting after tively, and by inserting after subparagraph (B) existing public housing projects and as- section 6045A the following new section: (I) the following new subparagraph: sisted housing projects, for which approval of ‘‘SEC. 6045B. RETURNS RELATING TO ACTIONS ‘‘(J) subsections (c) and (e) of section 6045B the Secretary is necessary for transactions, AFFECTING BASIS OF SPECIFIED SE- (relating to returns relating to actions af- in conjunction with any such low-income CURITIES. fecting basis of specified securities),’’. housing tax credits or tax-exempt housing ‘‘(a) IN GENERAL.—According to the forms (3) CLERICAL AMENDMENT.—The table of bonds, involving the preservation or rehabili- or regulations prescribed by the Secretary, sections for subpart B of part III of sub- tation of the project. any issuer of a specified security shall make chapter A of chapter 61 of such Code, as (3) CHANGES.—The administrative and pro- a return setting forth— amended by subsection (b)(3), is amended by cedural changes referred to in paragraph (1)

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00091 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.008 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3280 CONGRESSIONAL RECORD — HOUSE May 8, 2008 shall include all actions necessary to carry housing tax credits under section 42 of the Internal Revenue Code of 1986 (26 U.S.C. 42), out paragraph (1), which may include— Internal Revenue Code of 1986 or tax-exempt if the Secretary determines at the time of (A) improving the efficiency of approval housing bonds. issuance of the firm commitment for insur- procedures; ‘‘(B) CONSULTATION.—The Secretary of Ag- ance that the ratio of the loan proceeds to (B) simplifying approval requirements, riculture shall consult with the Commis- the actual cost of the project is less than 80 (C) establishing time deadlines or target sioner of the Internal Revenue Service and percent, subsection (a) of this section shall deadlines for required approvals; take such actions as are appropriate in con- not apply. (D) modifying division of approval author- junction with such consultation to simplify ‘‘(c) DEFINITIONS.—For purposes of this sec- ity between field and national offices; the coordination of rules, regulations, forms tion, the following definitions shall apply:’’; (E) improving outreach to project sponsors (including applications forms for project and regarding information that is required to be transfers), and approval requirements multi- (5) by inserting ‘‘(a) REQUIREMENT.—’’ after submitted for such approvals; family housing projects for which assistance ‘‘227.’’. (F) requesting additional funding for in- is provided by the Secretary of Agriculture (c) OTHER PROVISIONS REGARDING TREAT- creasing staff, if necessary; and in conjunction with any low-income housing MENT OF MORTGAGES COVERING TAX CREDIT (G) any other actions which would expedite tax credits under section 42 of the Internal PROJECTS.—Title II of the National Housing approvals. Revenue Code of 1986 or tax-exempt housing Act is amended by inserting after section 227 (12 U.S.C. 1715r) the following new section: Any such changes shall be made in a manner bonds. ‘‘(C) EXISTING REQUIREMENTS.—Any actions ‘‘SEC. 228. TREATMENT OF MORTGAGES COV- that provides for full compliance with any ERING TAX CREDIT PROJECTS. existing requirements under law or regula- taken pursuant to this paragraph shall be taken in a manner that provides for full ‘‘(a) DEFINITION.—For purposes of this sec- tion that are designed to protect families re- tion, the term ‘insured mortgage covering a ceiving public and assisted housing assist- compliance with any existing requirements under law or regulation that are designed to tax credit project’ means a mortgage insured ance, including income targeting, rent, and under any provision of this title that is exe- fair housing provisions, and shall also com- protect families receiving Federal housing assistance, including income targeting, rent, cuted in connection with the construction, ply with requirements regarding environ- rehabilitation, purchase, or refinancing of a mental review and protection and wages paid and fair housing provisions, and shall also comply with requirements regarding envi- multifamily housing project for which eq- to laborers. uity provided through any low-income hous- (b) CONSULTATION.—The Secretary shall ronmental review and protection and wages paid to laborers. ing tax credit pursuant to section 42 of the consult with the Commissioner of the Inter- Internal Revenue Code of 1986 (26 U.S.C. 42). nal Revenue Service and take such actions ‘‘(D) RECOMMENDATIONS.—In implementing the changes required under this paragraph, ‘‘(b) ACCEPTANCE OF LETTERS OF CREDIT.— as are appropriate in conjunction with such In the case of an insured mortgage covering consultation to simplify the coordination of the Secretary shall solicit recommendations regarding such changes from project owners a tax credit project, the Secretary may not rules, regulations, forms, and approval re- require the escrowing of equity provided by quirements for multifamily housing projects and sponsors, investors and stakeholders in housing tax credits, State and local housing the sale of any low-income housing tax cred- projects for which assistance is provided by its for the project pursuant to Section 42 of such Department in conjunction with any finance agencies, tenant advocates, and other stakeholders in such projects.’’. the Internal Revenue Code of 1986, or any low-income housing tax credits under section other form of security, such as a letter of 42 of the Internal Revenue Code of 1986 or SEC. 754. USE OF FHA LOANS WITH HOUSING TAX CREDITS. credit. tax-exempt housing bonds. ‘‘(c) ASSET MANAGEMENT REQUIREMENTS.— (a) SUBSIDY LAYERING REQUIREMENTS.— (c) RECOMMENDATIONS.—In implementing In the case of an insured mortgage covering the changes required under this section, the Subsection (d) of section 102 of the Depart- ment of Housing and Urban Development Re- a tax credit project for which project the ap- Secretary shall solicit recommendations re- form Act of 1989 (42 U.S.C. 3545(d)) is amend- plicable tax credit allocating agency is caus- garding such changes from project owners ed— ing to be performed periodic inspections in and sponsors, investors and stakeholders in (1) in the first sentence, by inserting after compliance with the requirements of section housing tax credits, State and local housing ‘‘assistance within the jurisdiction of the De- 42 of the Internal Revenue Code of 1986, such finance agencies, public housing agencies, partment’’ the following: ‘‘, as such term is project shall be exempt from requirements tenant advocates, and other stakeholders in defined in subsection (m), except that for imposed by the Secretary regarding periodic such projects. purposes of this subsection such term shall inspections of the property by the mort- (d) REPORT.—Not later than the expiration not include any mortgage insurance provided gagee. To the extent that other compliance of the 9-month period beginning on the date pursuant to title II of the National Housing monitoring is being performed with respect of the enactment of this Act, the Secretary Act (12 U.S.C. 1707 et seq.)’’; and to such a project by such an allocating agen- shall submit a report to the Committee on (2) in the second sentence, by inserting cy pursuant to such section 42, the Secretary Financial Services of the House of Rep- ‘‘such’’ before ‘‘assistance’’. shall, to the extent that the Secretary deter- resentatives and the Committee on Banking, (b) COST CERTIFICATION.—Section 227 of Na- mines such monitoring is sufficient to ensure Housing, and Urban Affairs of the Senate tional Housing Act (12 U.S.C. 1715r) is compliance with any requirements estab- that— amended— lished by the Secretary, accept such agency’s (1) identifies the actions taken by the Sec- (1) in the matter preceding paragraph (a) evidence of compliance for purposes of deter- retary to comply with this section; (relating to a definition of ‘‘new or rehabili- mining compliance with the Secretary’s re- (2) includes information regarding any re- tated multifamily housing’’)— quirements. sulting improvements in the expedited ap- (A) in the first sentence— ‘‘(d) STREAMLINED PROCESSING PILOT PRO- proval for multifamily housing projects; (i) by striking ‘‘Notwithstanding’’ and in- GRAM.— (3) identifies recommendations made pur- serting ‘‘Except as provided in subsection (b) ‘‘(1) IN GENERAL.—The Secretary shall es- suant to subsection (c); and notwithstanding’’; and tablish a pilot program to demonstrate the (4) identifies actions taken by the Sec- (ii) by redesignating clauses (a) and (b) as effectiveness of streamlining the review retary to implement the provisions in the clauses (A) and (B), respectively; and process, which shall include all applications amendments made by sections 4 and 5 of this (B) by striking ‘‘As used in this section—’’; for mortgage insurance under any provision Act; and (2) in paragraph (c) (relating to a definition of this title for mortgages executed in con- (5) makes recommendations for any legis- of ‘‘actual cost’’)— nection with the construction, rehabilita- lative changes that are needed to facilitate (A) in clause (i), by redesignating clauses tion, purchase, or refinancing of a multi- prompt approval of assistance for such (1) and (2) as clauses (I) and (II), respectively; family housing project for which equity pro- projects. and vided through any low-income housing tax SEC. 753. PROJECT APPROVALS BY RURAL HOUS- (B) in clause (ii), by redesignating clauses credit pursuant to section 42 of the Internal ING SERVICE. (1) and (2) as clauses (I) and (II), respectively; Revenue Code of 1986. The Secretary shall Section 515(h) of the Housing Act of 1949 (42 (3) by redesignating paragraphs (a), (b), and issue instructions for implementing the pilot U.S.C. 1485) is amended— (c) as paragraphs (1), (2), and (3), respec- program under this subsection not later than (1) by inserting ‘‘(1) CONDITION.—’’ after tively; the expiration of the 180-day period begin- ‘‘(h)’’; and (4) by inserting before paragraph (1) (as so ning upon the date of the enactment of the (2) by adding at the end the following new redesignated by paragraph (3) of this sub- Housing Tax Credit Coordination Act of 2008. paragraphs: section) the following: ‘‘(2) REQUIREMENTS.—Such pilot program ‘‘(2) ACTIONS TO EXPEDITE PROJECT APPROV- ‘‘(b) EXEMPTION FOR CERTAIN PROJECTS AS- shall provide for— ALS.— SISTED WITH LOW-INCOME HOUSING TAX CRED- ‘‘(A) the Secretary to appoint designated ‘‘(A) IN GENERAL.—The Secretary shall IT.—In the case of any mortgage insured underwriters, who shall be responsible for re- take actions to facilitate timely approval of under any provision of this title that is exe- viewing such mortgage insurance applica- requests to transfer ownership or control, for cuted in connection with the construction, tions and making determinations regarding the purpose of rehabilitation or preservation, rehabilitation, purchase, or refinancing of a the eligibility of such applications for such of multifamily housing projects for which as- multifamily housing project for which eq- mortgage insurance in lieu of the processing sistance is provided by the Secretary of Agri- uity provided through any low-income hous- functions regarding such applications that culture in conjunction with any low-income ing tax credit pursuant to Section 42 of the are otherwise performed by other employees

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00092 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.008 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3281 of the Department of Housing and Urban De- the Department of Housing and Urban Devel- which no State or local housing agency has velopment; opment Reform Act of 1989 (42 U.S.C. 3545(d)) applied to provide delegated processing pur- ‘‘(B) submission of applications for such shall not be required for assistance under suant to this paragraph or no such agency mortgage insurance by mortgagees who have this paragraph in the case of a housing as- has entered into an agreement with the Sec- previously been expressly approved by the sistance payments contract for an existing retary to serve as a delegated processing Secretary; and structure, or if a subsidy layering review has agency. ‘‘(C) determinations regarding the eligi- been conducted by the applicable State or ‘‘(C) An agency to which review and proc- bility of such applications for such mortgage local agency. essing is delegated pursuant to subparagraph insurance to be made by the chief under- ‘‘(ii) ENVIRONMENTAL REVIEW.—A public (A) may assess a reasonable fee which shall writer pursuant to requirements prescribed housing agency shall not be required to un- be included in the capital advance amounts by the Secretary, which shall include requir- dertake any environmental review before en- and may recommend project rental assist- ing submission of reports regarding applica- tering into a housing assistance payments ance amounts in excess of those initially tions of proposed mortgagees by third-party contract under this paragraph for an existing awarded by the Secretary. The Secretary entities expressly approved by the chief un- structure, except to the extent such a review shall develop a schedule for reasonable fees derwriter.’’. is otherwise required by law or regulation.’’. under this subparagraph to be paid to dele- SEC. 755. OTHER HUD PROGRAMS. (2) VOUCHER PROGRAM RENT REASONABLE- gated processing agencies, which shall take NESS.—Section 8(o)(10) of the United States (a) SECTION 8 ASSISTANCE.— into consideration any other fees to be paid Housing Act of 1937 (42 U.S.C. 1437f(o)(10)) is (1) PHA PROJECT-BASED ASSISTANCE.—Sec- to the agency for other funding provided to amended by adding at the end the following tion 8(o)(13) of the United States Housing the project by the agency, including bonds, new subparagraph; Act of 1937 (42 U.S.C. 1437f(o)(13)) is amend- tax credits, and other gap funding. ‘‘(F) TAX CREDIT PROJECTS.—In the case of ed— ‘‘(D) Under such delegated system, the Sec- a dwelling unit receiving tax credits pursu- (A) in subparagraph (D)(i)— retary shall retain the authority to approve ant to section 42 of the Internal Revenue (i) by striking ‘‘building’’ and inserting rents and development costs and to execute Code of 1986 or for which assistance is pro- ‘‘project’’; and a capital advance within 60 days of receipt of vided under subtitle A of title II of the Cran- the commitment from the State or local (ii) by adding at the end the following: ston Gonzalez National Affordable Housing ‘‘For purposes of this subparagraph, the term agency. The Secretary shall provide to such Act of 1990, for which a housing assistance agency and the project sponsor, in writing, ‘project’ means a single building, multiple contract not subject to paragraph (13) of this contiguous buildings, or multiple buildings the reasons for any reduction in capital ad- subsection is established, rent reasonable- vance amounts or project rental assistance on contiguous parcels of land.’’; ness shall be determined as otherwise pro- (B) in the first sentence of subparagraph and such reductions shall be subject to ap- vided by this paragraph, except that— peal.’’. (F), by striking ‘‘10 years’’ and inserting ‘‘15 ‘‘(i) comparison with rent for units in the (c) MCKINNEY-VENTO ACT HOMELESS AS- years’’; private, unassisted local market shall not be SISTANCE UNDER SHELTER PLUS CARE PRO- (C) In subparagraph (G)— required if the rent is equal to or less than GRAM.— (i) by inserting after the period at the end the rent for other comparable units receiving (1) TERM OF CONTRACTS WITH OWNER OR LES- of the first sentence the following: ‘‘Such such tax credits or assistance in the project SOR.—Part I of subtitle F of the McKinney- contract may, at the election of the public that are not occupied by families assisted Vento Homeless Assistance Act is amended— housing agency and the owner of the struc- with tenant-based assistance under this sub- (A) by redesignating sections 462 and 463 (42 ture, specify that such contract shall be ex- section; and U.S.C. 11403g, 11403h) as sections 463 and 464, tended for renewal terms of up to 15 years ‘‘(ii) the rent shall not be considered rea- respectively; each, if the agency makes the determination sonable for purposes of this paragraph if it (B) by striking ‘‘section 463’’ each place required by this subparagraph and the owner exceeds the greater of— such term appears in sections 471, 476, 481, is in compliance with the terms of the con- ‘‘(I) the rents charged for other comparable 486, and 488 (42 U.S.C. 11404, 11405, 11406, 11407, tract.’’; and units receiving such tax credits or assistance and 11407b) and inserting ‘‘section 464’’; and (ii) by adding at the end the following: ‘‘A in the project that are not occupied by fami- (C) by inserting after section 461 (42 U.S.C. public housing agency may agree to enter lies assisted with tenant-based assistance 11403f) the following new section: into such a contract at the time it enters under this subsection; and into the initial agreement for a housing as- ‘‘(II) the payment standard established by ‘‘SEC. 462. TERM OF CONTRACT WITH OWNER OR sistance payment contract or at any time the public housing agency for a unit of the LESSOR. thereafter that is before the expiration of size involved.’’. ‘‘An applicant under this subtitle may the housing assistance payment contract.’’; (b) SECTION 202 HOUSING FOR ELDERLY PER- enter into a contract with the owner or les- (D) in subparagraph (H), by inserting be- SONS.—Subsection (f) of section 202 of the sor of a property that receives rental assist- fore the period at the end of the first sen- Housing Act of 1959 (12 U.S.C. 1701q(f)) is ance under this subtitle having a term of not tence the following: ‘‘, except that in the amended— more than 15 years, subject to the avail- case of a contract unit that has been allo- (1) by striking ‘‘SELECTION CRITERIA.—’’ ability of sufficient funds provided in appro- cated low-income housing tax credits and for and inserting ‘‘INITIAL SELECTION CRITERIA priation Acts for the purpose of renewing ex- which the rent limitation pursuant to such AND PROCESSING.—(1) SELECTION CRITERIA.— piring contracts for assistance payments. section 42 is less than the amount that would ’’; Such contract may, at the election of the ap- otherwise be permitted under this subpara- (2) by redesignating paragraphs (1) through plicant and owner or lessor, specify that graph, the rent for such unit may, in the sole (7) as subparagraphs (A) through (G), respec- such contract shall be extended for renewal discretion of a public housing agency, be es- tively; and terms of not more than 15 years each, sub- tablished at the higher section 8 rent, sub- (3) by adding at the end the following new ject to the availability of sufficient such ap- ject only to paragraph (10)(A)’’; paragraph: propriated funds.’’. (E) in subparagraph (I)(i), by inserting be- ‘‘(2) DELEGATED PROCESSING.— (2) PROJECT-BASED RENTAL ASSISTANCE CON- fore the semicolon the following: ‘‘, except ‘‘(A) In issuing a capital advance under TRACTS.—Section 478(a) of the McKinney- that the contract may provide that the max- this subsection for any project for which fi- Vento Homeless Assistance Act (42 U.S.C. imum rent permitted for a dwelling unit nancing for the purposes described in the 11405a(a)) is amended by inserting before the shall not be less than the initial rent for the last two sentences of subsection (b) is pro- period at the end the following: ‘‘; except dwelling unit under the initial housing as- vided by a combination of a capital advance that, in the case of any project for which eq- sistance payments contract covering the under subsection (c)(1) and sources other uity is provided through any low-income unit’’; and than this section, within 30 days of award of housing tax credit pursuant to section 42 of (F) by adding at the end the following new the capital advance, the Secretary shall del- the Internal Revenue Code of 1986 (26 U.S.C. subparagraphs: egate review and processing of such projects 42), if an expenditure of such amount for ‘‘(L) USE IN COOPERATIVE HOUSING AND ELE- to a State or local housing agency that— each unit (including the prorated share of VATOR BUILDINGS.—A public housing agency ‘‘(i) is in geographic proximity to the prop- such work) is required to make the structure may enter into a housing assistance pay- erty; decent, safe, and sanitary, and the owner ments contract under this paragraph with ‘‘(ii) has demonstrated experience in and agrees to reach initial closing on permanent respect to— capacity for underwriting multifamily hous- financing from such other sources within ‘‘(i) dwelling units in cooperative housing; ing loans that provide housing and sup- two years and agrees to carry out the reha- and portive services; bilitation with resources other than assist- ‘‘(ii) notwithstanding subsection (c), dwell- ‘‘(iii) may or may not be providing low-in- ance under this subtitle within 60 months of ing units in a high-rise elevator project, in- come housing tax credits in combination notification of grant approval, the contract cluding such a project that is occupied by with the capital advance under this section, shall be for a term of 10 years (except that families with children, without review and and such period may be extended by up to 1 year approval of the contract by the Secretary. ‘‘(iv) agrees to issue a firm commitment by the Secretary, which extension shall be ‘‘(M) REVIEWS.— within 12 months of delegation. granted unless the Secretary determines ‘‘(i) SUBSIDY LAYERING.—A subsidy layering ‘‘(B) The Secretary shall retain the author- that the sponsor is primarily responsible for review in accordance with section 102(d) of ity to process capital advances in cases in the failure to meet such deadline)’’.

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00093 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.008 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3282 CONGRESSIONAL RECORD — HOUSE May 8, 2008 (d) DATA COLLECTION ON TENANTS OF HOUS- foreclosure, or seizure of the property is not boosts credits for construction of af- ING TAX CREDIT PROJECTS.—Title I of the valid under subsection (c).’’. fordable housing. It allows families to United States Housing Act of 1937 (42 U.S.C. (b) EFFECTIVE DATE.—Subsection (e) of sec- deduct property taxes who couldn’t do tion 303 of the Servicemembers Civil Relief 1437 et seq.) is amended by adding at the end so before. the following new section: Act (50 U.S.C. App. 533), as added by sub- ‘‘SEC. 36. COLLECTION OF INFORMATION ON TEN- section (a), shall apply with respect to a b 1230 ANTS IN TAX CREDIT PROJECTS. servicemember who defaults on an obligation on or after the date of the enactment of this It increases mortgage revenue bonds ‘‘(a) IN GENERAL.—Each State agency ad- and it allows the States to refinance ministering tax credits under section 42 of Act. the Internal Revenue Code of 1986 (26 U.S.C. The text of House amendment No. 3 troubled subprime loans. 42) shall furnish to the Secretary of Housing to the Senate amendments is as fol- This assistance is targeted to those and Urban Development, not less than annu- lows: who need it most. It will also help ally, information concerning the race, eth- bring economic stability to our com- At the end of the matter proposed to be in- nicity, family composition, age, income, use serted by the amendment of the Senate to munities. And these provisions are rev- of rental assistance under section 8(o) of the the text of the bill, add the following new enue neutral, I emphasize ‘‘revenue United States Housing Act of 1937 or other section: neutral,’’ using a provision from the similar assistance, disability status, and President’s own budget to pay for monthly rental payments of households re- SEC. ll. RULE OF CONSTRUCTION. siding in each property receiving such cred- (a) IN GENERAL.—No provision of this Act, much of the cost. its through such agency. Such State agen- the Home Owners’ Loan Act, or title LXII of Mr. Speaker, this bill has been en- cies shall, to the extent feasible, collect such the Revised Statutes of the United States dorsed by the Home Builders, the Real- information through existing reporting proc- (commonly referred to as the ‘‘National tors and State Housing Administra- esses and in a manner that minimizes bur- Bank Act’’) may be construed as preempting tors. It passed with the support of 12 the application, to any entity, of any State dens on property owners. In the case of any Republican members of the Ways and household that continues to reside in the law regulating the foreclosure of residential real property in that State or the treatment Means Committee, including my friend same dwelling unit, information provided by and the distinguished ranking member, the household in a previous year may be used of foreclosed property. (b) NO NEGATIVE IMPLICATION.—This sec- if the information is of a category that is not Mr. MCCRERY. It is broadly supported, tion shall not be construed as affecting in subject to change or if information for the it’s bipartisan in nature, and I am any way the applicability of any other type current year is not readily available to the proud to bring it to this House today. of State law to any Federal depository insti- owner of the property. There are but two changes to our tution (as defined in section 3(c)(4) of the ‘‘(b) STANDARDS.—The Secretary shall es- amendment. One is a package of tech- Federal Deposit Insurance Act) or to any tablish standards and definitions for the in- agent or subsidiary of any such depository nical improvements from the Financial formation collected under subsection (a), institution. Services Committee to better coordi- provide States with technical assistance in nate the various housing tax and HUD establishing systems to compile and submit The SPEAKER pro tempore. Pursu- such information, and, in coordination with ant to House Resolution 1175, debate programs. The other is—and I hope other Federal agencies administering hous- shall not exceed 3 hours, with 2 hours that everybody will listen to this sug- ing programs, establish procedures to mini- equally divided and controlled by the gestion—a provision approved by the mize duplicative reporting requirements for chairman and ranking minority mem- Veterans Affairs Committee to extend properties assisted under multiple housing ber of the Committee on Financial from 90 days to 1 year the protection programs. Services, and 1 hour equally divided against foreclosure for servicemembers ‘‘(c) PUBLIC AVAILABILITY.—The Secretary and controlled by the chairman and returning from active duty. I can’t shall, not less than annually, compile and imagine that there is a voice in this make publicly available the information sub- ranking minority member of the Com- mitted to the Secretary pursuant to sub- mittee on Ways and Means. body who would not be supportive of section (a). The gentleman from Massachusetts that initiative, the idea that in Af- ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— (Mr. FRANK) and the gentleman from ghanistan and/or in Iraq, that a There is authorized to be appropriated for Alabama (Mr. BACHUS) each will con- servicemember who is doing all that’s the cost of activities required under sub- trol 1 hour; and the gentleman from asked of him or her every day would sections (b) and (c) $2,500,000 for fiscal year Massachusetts (Mr. NEAL) and the gen- find themselves facing mortgage fore- 2009 and $900,000 for each of fiscal years 2010 closure because of their military serv- through 2013.’’. tleman from Louisiana (Mr. MCCRERY) each will control 30 minutes. ice. Subtitle E—Limitation on Sale, Foreclosure, The Chair recognizes the gentleman As chairman of the Select Revenue or Seizure of Property Owned by Measures Subcommittee, again I stand Servicemembers from Massachusetts (Mr. NEAL). Mr. NEAL of Massachusetts. Mr. in strong support of the legislation SEC. 761. LIMITATION ON SALE, FORECLOSURE, that’s before us today. It includes a OR SEIZURE OF PROPERTY OWNED Speaker, I yield myself such time as I BY SERVICEMEMBERS DURING ONE- might consume. number of improvements to the afford- YEAR PERIOD FOLLOWING PERIOD Mr. Speaker, I want to begin by able housing program. OF MILITARY SERVICE. thanking Mr. FRANK. In the 30 years Our subcommittee considered these (a) LIMITATION.—Section 303(c) of the that I’ve known him, I’ve yet to meet provisions last summer. And at the Servicemembers Civil Relief Act is amended anybody who has done a better job of urging of housing officials, developers, by striking ‘‘90 days’’ and inserting ‘‘one and advocates for low-income families, year’’. mastering the most arcane detail of (b) EFFECTIVE DATE.—The amendment complicated housing policy. In fact, in they have all been included in the made by subsection (a) shall apply with re- some measure, we’re here today be- Ways and Means amendment that we spect to any sale, foreclosure, or seizure of cause of the energy that he’s brought consider today. I urge its adoption. property on or after the date of the enact- to the task at hand. Mr. Speaker, I reserve the balance of ment of this Act. Mr. Speaker, I also rise today in sup- my time. SEC. 762. PROVISION OF FINANCIAL DISCLOSURE port of this housing assistance tax Mr. MCCRERY. Mr. Speaker, I yield TO SERVICEMEMBERS WHO DE- package which has been reported by myself so much time as I may con- FAULT ON CERTAIN OBLIGATIONS. sume. (a) PROVISION OF DISCLOSURE REQUIRED.— the Ways and Means Committee. I Section 303 of the Servicemembers Civil Re- want to thank Chairman RANGEL for Mr. Speaker, it is with regret that I lief Act (50 U.S.C. App. 533) is amended by his leadership on this very important rise to urge my colleagues to vote adding at the end the following new sub- national issue. against the tax amendment to this bill. section: There is little doubt that the sagging Let me be clear, however, in stating ‘‘(e) PROVISION OF FINANCIAL DISCLOSURE.— housing industry, now at historic lows, that my opposition to this section is In the case of a servicemember who defaults has been a drag on our national econ- not the result of a disagreement with on an obligation described in subsection (a) omy. This legislation would stimulate my friend, Mr. NEAL, or with the chair- for two consecutive months, the mortgagor man of the committee, Mr. RANGEL. We or loan servicer of the obligation shall pro- that industry and help families who vide to the servicemember a written finan- have been caught up in this struggling were able to work together so that the cial disclosure describing the economy. housing bill reported by the Ways and servicemember’s liability with respect to the This legislation provides tax credits Means Committee enjoyed bipartisan obligation for the period during which a sale, for first-time homebuyers, and it support.

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00094 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.008 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3283 And while that package contains At the same time, there are elements 12. Economic Growth and Tax Relief Act of many provisions that do make sense, I of this package that, frankly, I would 2001; think the House should have had the prefer not be in here. Given the nature 13. Marriage Penalty and Family Tax Re- opportunity to consider at least one al- of the housing crisis, I think the House lief Act of 2001; 14. Care Act of 2002; ternative. Unfortunately, the proce- should follow the Senate’s lead and 15. Death Tax Elimination Act of 2001; dural straitjacket imposed by the ma- waive PAYGO, for example. I think 16. Economic Growth and Tax Relief Rec- jority for consideration of the housing this is an emergency. We shouldn’t be onciliation Act of 2001; bill today is something that I simply responding to this emergency situation 17. Permanent Death Tax Repeal Act of cannot ignore. For that reason, I will with tax increases. 2002; be voting against this amendment. And there are specific items in here 18. Job Creation and Worker Assistance We all understand the severity of the that if it were up to me might not have Act of 2002; housing crisis. Housing starts declined 19. Pension Security Act of 2002; made the cut. But democracy is about 20. The WORK Act of 2002; to 680,000 in March of 2008, the lowest compromise, and the bill produced by 21. Retirement Savings Security Act of level since January of 1991. Since hit- the Ways and Means Committee was 2002; ting a peak in early 2006, housing starts something that I supported and would 22. Marriage Tax Penalty Relief Act of have dropped by 62 percent. There is like to vote for again here on the 2000; currently a 91⁄2 month supply of unsold House floor today. But the decision 23. Death Tax Elimination Act of 2000; homes, more than double the 10-year made by the majority leadership to de- 24. Retirement Security and Savings Act of average. With those facts in mind, it is bate this legislation as an amendment 2000; not surprising that home prices are 25. Foster Care Independence Act of 1999; to a Senate-passed bill deprives the 26. Financial Freedom Act of 1999; falling, and the contraction in the resi- House of the chance to consider ways 27. Fathers Count Act of 1999; dential real estate market is an anchor to improve it, even to the extent of de- 28. Marriage Tax Relief Reconciliation Act around our economy. nying the minority a motion to recom- of 2000; The Tax Code didn’t get us into this mit. 29. Social Security Benefits Tax Relief Act mess, and there is only so much the Now, I recognize that tax bills tradi- of 2000; Tax Code can do to get us out. The tionally come to the floor under re- 30. Education Savings and School Excel- package approved by the Committee on strictive rules, and I support that. But lence Act of 1998; Ways and Means contains many well- 31. Taxpayer Relief Act of 1998; as I documented in a letter last year to 32. Job Creation and Wage Enhancement designed improvements, including im- the distinguished chairwoman of the Act of 1995; provements to make the low-income Rules Committee, in years when Re- 33. A bill to permanently extend the deduc- housing tax credit more efficient. I publicans were in the majority, on one tion for the health insurance costs of self- also think allowing those credits to be tax bill after another the Republican employed individuals, and for other pur- claimed against both the regular tax majority offered the Democratic mi- poses; and the AMT is a step in the right di- nority not only a motion to recommit, 34. Tax Fairness and Deficit Reduction Act rection. but a substitute. of 1995; and, 35. Health Insurance Portability and Ac- The language expanding the Mort- Mr. Speaker, at this time, I would gage Revenue Bond program and allow- countability Act of 1996. like to insert the text of that letter to While the usual practice has been to pro- ing proceeds of the bonds to be used to the chairwoman of the Rules Com- vide for the consideration of an amendment refinance existing home mortgages, as mittee into the CONGRESSIONAL in the nature of a substitute, I recognize that suggested by the President, is certainly RECORD. there have been instances where such consid- worth doing. And although I have some eration was not allowed under the rule. In HOUSE OF REPRESENTATIVES, many of these cases, the amendment was ei- reservations about the design of the COMMITTEE ON WAYS AND MEANS, first-time homebuyer’s tax credit, the Washington, DC, August 1, 2007. ther non-germane to the underlying bill, was not an actual substitute amendment, or was recapture provision, if we include it, Chairwoman LOUISE MCINTOSH SLAUGHTER, makes it more like a no-interest loan Committee on Rules, House of Representatives, not compliant with the Budget Act. The Capitol, Washington, DC. I have submitted an amendment in the na- and not really a tax credit. ture of a substitute to H. R. 2776. According Ranking Member DAVID DREIER, Still, I share the hope of the sponsors to the Joint Committee on Taxation, the that this provision will help induce Committee on Rules, House of Representatives, Longworth Building, Washington, DC. amendment complies with Clause 10 of House some home purchases this year and Rule 21, otherwise known as the ‘‘paygo DEAR CHAIRWOMAN SLAUGHTER AND RANK- stabilize the market. We desire that be- rule.’’ In addition, through consultations ING MEMBER DREIER: This week the House is cause we recognize that potential expected to consider H.R. 2776, the ‘‘Renew- with the Office of the Parliamentarian, I am homebuyers right now are reading the able Energy and Energy Conservation Act of assured that the amendment is germane to headlines every day, they’re waiting on 2007.’’ This will be the first tax bill, reported H.R. 2776. To my knowledge, it would violate the sidelines to get to the bottom of by the Ways and Means Committee, to be no rules of the House. I hope that the Committee will make in the market. Well, as prices keep fall- considered under a rule in the 110th Con- gress. As you are aware, the House has a long order my amendment as part of the consider- ing, more people who might think ation of H.R. 2776. Please do not hesitate to about buying a home decide to keep history of supporting rules for tax bills which make in order an amendment in the contact me if you have any questions. waiting, and so that creates a self-per- nature of a substitute. Numerous examples, With kindest regards, I am petuating cycle of declining home dating back to the 104th Congress, include: Sincerely yours, prices. Maybe, just maybe, this tax 1. Death Tax Repeal Permanency Act of JIM MCCRERY, credit could induce some of those wait- 2005; Ranking Member. ing on the sidelines to go ahead, jump 2. Tax Increase Prevention and Reconcili- At the same time, I recognize that it in and buy a home. That’s our desire. I ation Act of 2005; is not uncommon to resolve differences think it could have been better, as I 3. Charitable Giving Act of 2003; between the House and the Senate by say, designed as a pure tax credit with 4. Death Tax Repeal Permanency Act of sending amendments back and forth 2003; across the Capitol. That’s what’s being no recapture provision, but still, I 5. Social Security Protection Act of 2003; think it’s better than nothing. 6. Pension Security Act of 2003; done today. But what makes today’s I understand the concern raised by 7. Tax Administration Good Government procedure so unusual, and to some of some that an artificial temporary Act; us so frustrating, is that this House floor, so to speak, will not restore long- 8. A bill to extend permanently the mar- never had a chance to work its will on term stability to the housing market riage penalty relief provided under the Eco- housing legislation. This is not a hous- and could even result in further price nomic Growth and Tax Relief Reconciliation ing bill that went to the Senate, was declines when the temporary benefit Act of 2001; amended, and then sent back to us. lapses. But on balance, I think this 9. Middle-Class Alternative Minimum Tax This was an energy bill for heaven’s Relief Act of 2004: provision holds some hope of helping us 10. A bill to permanently extend the ten sake. It was gutted in the Senate, re- to reverse this slide in housing prices, percent individual income tax bracket; placed with housing provisions, sent or at least stop it for a while and give 11. Child Credit Preservation and Expan- back to us, and that is what has cre- it a chance to recover. sion Act of 2004; ated this unusual opportunity for the

VerDate Aug 31 2005 04:14 May 09, 2008 Jkt 069060 PO 00000 Frm 00095 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.034 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3284 CONGRESSIONAL RECORD — HOUSE May 8, 2008 majority to deny the minority even a ues of nearby homes and lower munic- forts and the 12 Members from the dis- motion to recommit, and it’s wrong. ipal tax revenues.’’ tinguished opposition who joined. So Mr. Speaker, I think that action What more do we need to impel us to There is an array of good work here, reflects poorly on this House. It’s a act than the flight of families, the but in particular I’m heartened that in- trampling of the rights of all of our plight of communities, and the plight cluded within is a tax benefit for most Members, not just the minority. And I, of municipalities? Let’s vote on a bi- first-time homebuyers. This is a truly therefore, plan to vote against all of partisan bill. Let’s vote for this bill. meaningful incentive, and one that will these amendments and urge my col- Mr. REYNOLDS. Mr. Speaker, it is pull out a large swath of people from leagues to do the same until we can get now my pleasure to yield 3 minutes to the sidelines and back into the market, a fair hearing, a fair rule governing the the distinguished senior member of the having a ripple effect throughout the debate of these very important mat- Republican side of Ways and Means, rest of the economy. After all, without ters. WALLY HERGER of California. bold action to spur housing market ac- With that, Mr. Speaker, I reserve the Mr. HERGER. Mr. Speaker, I’m trou- tivity, inventories across the country balance of my time. bled by the housing catch-all bill be- may continue to grow, placing down- Mr. Speaker, I ask unanimous con- fore the House of Representatives ward pressure on home prices and wip- sent at this time to allow the gen- today from a commonsense, pro-Amer- ing out equity that so many Americans tleman from New York (Mr. REY- ican taxpayer position. have worked so hard to build. NOLDS), a member of the Ways and The bill would enable the already b 1245 Means Committee, to control the re- troubled FHA to take on an additional mainder of time. $300 million in distressed mortgage li- We don’t want more homes to be in The SPEAKER pro tempore. Is there abilities, loans that have a good chance that situation. We prove nothing. objection to the request of the gen- of going into default. This effectively There is a place for the Federal Gov- tleman from Louisiana? transfers risk from those holding bad ernment, therefore, in this terrible sit- There was no objection. loans to those taxpayers who made uation that has occurred and developed Mr. NEAL of Massachusetts. Mr. prudent decisions in the first place. over the last year. Speaker, I do offer some acknowledge- More than nine out of 10 mortgage This bill, when passed, will allow ment of the constraints that we find holders make payments on time. They middle class families to receive a tax ourselves within today on the House would now be on the hook for the bad benefit that is equivalent to an inter- floor, and I think there’s some accu- mortgage debt, as will renters saving est-free loan of $7,000 towards the pur- racy as to what Mr. MCCRERY had to for a first-time home and those who chase of their first home. It will also say. However, there is another very im- own their own homes outright. This allow existing homeowners who claim portant point, and that is, that the bill sends the signal that there are no the standard deduction to an addi- issues were vetted at the committee real consequences for poor lending or tional standard deduction for property level and there was ample opportunity borrowing practices, and encourages taxes, up to $700 for a married couple and a full and vigorous debate ensued more of the same behavior that led us filing jointly. in the Ways and Means Committee in here in the first place. When we first addressed this issue in which every opinion was welcomed. Further, to offset some of the tax the Ways and Means Committee, the With that, I would like to yield 2 giveaways in the bill, the Democrat National Association of Realtors found minutes to the gentleman from Michi- majority proposes billions of dollars in that our legislation would generate gan (Mr. LEVIN). what amounts to a retroactive tax in- about 1 million sales—— Mr. LEVIN. I rise in strong support. crease on American employers with op- The SPEAKER pro tempore. The gen- There has been some bipartisanship erations in foreign markets. What our tleman’s time has expired. that has motored this legislation, and I economy really needs is tax policies Mr. NEAL of Massachusetts. Mr. hope it won’t break down today. that foster greater, not less, competi- Speaker, I yield the gentleman an addi- The crisis in housing needs the atten- tiveness for the U.S. employers. tional 30 seconds. tion and the support of everybody. It Finally, it is truly disappointing that Mr. PASCRELL. The National Asso- needs much more than tea and sym- the Democrat majority has chosen to ciation of Realtors found that our leg- pathy, it needs legislation. Recently I bring this bill up in a lock down, islation would generate about 1 million met with mayors and managers from unamendable manner. I urge my col- sales to first-time homebuyers and the 12th District, in Macomb County leagues to reject this measure. stimulate nearly $130 billion in in- and southeast Oakland. And they all Mr. NEAL of Massachusetts. Mr. creased economic activity. You tell me talked about the plight of the home- Speaker, I would remind the audience, that that’s not worth it in this econ- owner, the plight of the communities including the Members that are on the omy. when houses are shut down. We have to floor, that this procedure was fully vet- Studies have shown that this will act. And I pay tribute, all of us should, ted in the Ways and Means Committee. help reduce housing inventory by to the Committee on Financial Serv- It passed 35–5. That means we picked 900,000 homes, which will, in turn, sta- ices. up 12 members of the minority who bilize prices. And let me say just a word about the supported this legislation. This is a wise and necessary course tax provisions. They would provide With that, I would like to yield 2 to take. Because of this we also salute credit to first-time homebuyers. Essen- minutes to my friend, the distin- Chairman RANGEL’s leadership. I hope tial. It would improve access to low-in- guished gentleman from New Jersey all my colleagues will enthusiastically come housing. Essential. It would (Mr. PASCRELL). support this proposal. It’s good for allow families to deduct property taxes Mr. PASCRELL. Mr. Speaker, you America. through the standard deduction. It’s a can’t have it both ways. You can’t say Mr. REYNOLDS. Mr. Speaker, I re- good experiment. It should have been that this is an emergency and we’ve serve the balance of my time. done earlier. And it also would allow got to get something done, and then in Mr. NEAL of Massachusetts. Mr. Federal home loan banks to help re- the other breath say let’s go through Speaker, at this time I would like to lieve pressure on credit markets. the technical procedures. They’re con- yield to the gentlewoman from Penn- I read the Statement of Administra- tradictory. sylvania (Ms. SCHWARTZ) for 2 minutes. tive Policy that said it was risky and it This bill was vetted. And housing in- Ms. SCHWARTZ. Mr. Speaker, I want was an expansion of the purpose of the ventories in our communities continue to thank Chairman RANGEL and Chair- banks, and I think it’s incorrect in to increase and home prices continue man FRANK for acting so swiftly and both respects. So I just want to close to decline. We need to incentivize wisely to stem the tide of foreclosures with the sense of urgency that I think Americans to reenter the housing mar- and address the sagging home values all of us feel. Mr. Bernanke said that if ket. It affects so much of our economy. that are hurting families and commu- markets were simply allowed to follow I think this amendment, this bill takes nities across our Nation. their own course, it could ‘‘destabilize giant leaps towards accomplishing this By addressing a whole range of communities, reduce the property val- goal. I applaud Mr. RANGEL for his ef- issues, from the continuing foreclosure

VerDate Aug 31 2005 04:14 May 09, 2008 Jkt 069060 PO 00000 Frm 00096 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.035 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3285 crisis to the new and existing homes the industry, knowing across the coun- Mr. Speaker, with that I would like that are sitting vacant and further de- try that we face challenges, and the to yield 3 minutes to the distinguished pressing the housing market, this statistics that Ranking Member gentlewoman from Nevada (Ms. BERK- package represents a significant step MCCRERY outlined, 680,000 fewer starts, LEY). toward stabilizing the economy and re- a reduction in high percentages of what Ms. BERKLEY. I thank the gen- storing consumer confidence. the industry is about, seeing what the tleman from Massachusetts for yield- I am very proud of the portion of this drag has been on our country’s growth. ing. And I would like to particularly package that came through the Com- And we need to work through good, thank Chairman RANGEL and Chairman mittee on Ways and Means, particu- solid solutions that need a hearing FRANK for their extraordinary efforts larly a timely, targeted, and well-de- process that involve the Congress, par- on behalf of the American people. signed first-time homebuyers credit; a ticularly this body, in a debate of solu- Mr. Speaker, this amendment and new Federal tax deduction to help fam- tion. the overall housing package we are ilies meet rising State property taxes; And when we look at the entire com- considering today will help millions of and expansion of the ability of cities plexity of this bill, not only as a Ways Americans and significantly improve and States to raise capital for infra- and Means member, not only as some- the economic situation in my State of structure improvements by partnering one who understands the housing Nevada. In recent years the vibrant with the Federal Home Loan Banks. world, but also as a former member of economy and rapid growth in my dis- In particular, I am pleased that the the Rules Committee, I know that the trict of Las Vegas combined to make package includes a provision that I Members of this body were trampled on the city appear immune to economic championed, along with my Republican based on the decision of taking an en- downturn. This foreclosure crisis has colleague JON PORTER, which would en- ergy bill and making the housing pro- shown that this is no longer the case. able State housing finance agencies to visions, one of the challenges of the Nevada has had the highest statewide raise capital through tax-exempt mort- country today, short-circuited as an foreclosure rate for well over a year. gage revenue bonds and use these addi- amendment to circumvent debate, The surge in foreclosures has led to tional funds to help at-risk borrowers amendments, recommittals, and sub- huge inventories of unsold homes. This, in turn, has led to massive layoffs of refinance their subprime loans, access stitutes that would be afforded the mi- the construction industry and other mortgages at fair rates, and enable nority in any other instance. families to meet their financial obliga- And as I look at this and the frustra- housing-related fields. Nevada, which tions and stay in their homes. This tion I heard in the ranking member’s has been a land of economic oppor- provision will work hand in hand with message of what is being trampled on tunity, the fastest-growing State in the Federal Housing Agency reforms on rights of the minority to make pres- the Nation, now has an unemployment rate of 5.8 percent, which is, I’m sorry that have come out of Chairman entations, quite frankly, maybe some to say, well above the national aver- FRANK’s committee and will allow majority Members on amendments, re- States to play a role in addressing the age. committal, and substitute, I find it dis- This amendment takes several steps needs of their local communities. turbing that this is the beginning of As Federal Reserve Chairman Ben that will help both current and pro- strong trends of kind of a less than rea- Bernanke put it, ‘‘ . . . doing what we spective homeowners as well as in- sonable approach to advance legisla- can to avoid preventable foreclosures is crease affordable housing opportuni- tion through this body. not just in the interest of lenders and ties. Current homeowners will be And in the final thoughts, as we look borrowers, it is in everyone’s interest.’’ helped by the creation of a standard de- It is in everyone’s interest that we at the predicament we’re in on proce- duction for property taxes, which will overcome this crisis in the housing dural processes here and maybe the lower Federal taxes for taxpayers who market, that we work to stabilize the fact that we could have made this bill don’t itemize and by freeing up funds economy, and we work to maintain and even better, I must share with my col- to refinance certain subprime loans. build our competitive edge in the glob- leagues that there is a clear veto mes- The tax credit for first-time home- al economy. The proposal before us is a sage on this legislation as it leaves the buyers creates a great incentive to get comprehensive approach to this chal- House and it will unlikely be the solu- families into properties that are cur- lenge, and I hope that it will be sup- tion of the land. rently sitting vacant due to foreclosure ported by all. So with that, Mr. Speaker, I reserve or that have been sitting on the mar- Mr. REYNOLDS. Mr. Speaker, I yield the balance of my time. ket for long periods of time due to ex- Mr. NEAL of Massachusetts. Mr. myself such time as I may consume. cess unsold inventory. The bill also Speaker, just briefly in reference to my Mr. Speaker, as the debate continues takes steps to increase affordable rent- from the Ways and Means portion of friend Mr. REYNOLDS’ comments, the al housing, another critical need in Las the housing bill, I believe the ranking constraints that we are operating on Vegas. member has set very clear remarks on today, as he criticizes them, are en- I’m hopeful that the combined efforts where many of us find ourselves with tirely legitimate; but they are institu- of this amendment and other provi- this debate today. tional problems, as opposed to just the sions of the package will be to allevi- Chairman RANGEL and Ranking Mem- will of the majority. ate the current housing crisis and help ber MCCRERY have a superb working re- I was asking a Member of the minor- turn our Nation’s economy around. I lationship, and they have set the tenor ity last evening, ‘‘Is it possible to be an proudly support the intent and the sub- of what has been hard work on both aggrieved Member of the majority?’’ In stance of this legislation. I urge adop- sides of the aisle and bipartisan com- these instances I think you can be an tion. promise and consensus to craft some aggrieved Member of the majority. And I must say I think it’s insulting good legislation that has passed this But I want to emphasize a very im- to the American people when they hear body and has become law. And as I portant point: This legislation received that there are Members on the other manage this portion for the minority overwhelming support from the minor- side of the aisle that support the bill, and look across to my colleague from ity in the committee, and I think based support the intent, but are voting Massachusetts, he and I also share in upon news accounts this morning that against it because they didn’t get a commonsense solutions to strengthen there was some conflict in two major procedural motion to vote on. America and to resolve some of the dailies as to whether or not the admin- Let’s do what’s best for the American problems and challenges that are there. istration would, in fact, veto this legis- people and stop this ridiculous infight- And this bill is not an exception to lation, but I can’t overstate enough ing that nobody out there cares about. that. We worked at the spirit of re- this simple point: There was ample op- They care about staying in their quest of both the Chair and ranking portunity for the minority to partici- homes. They care about protecting member to reach compromise and con- pate in the debate at the Ways and their families. And, quite frankly, they sensus to improve the Ways and Means Means Committee; and, in fact, they don’t give a hoot whether somebody jurisdiction on housing. succeeded in amending the legislation has a motion to recommit to vote on. And I look at it with sadness in two that has come to the floor today, and Mr. REYNOLDS. Mr. Speaker, I parts. One, as a realtor who looks at every voice was heard. would like to yield 5 minutes to the

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00097 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.039 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3286 CONGRESSIONAL RECORD — HOUSE May 8, 2008 gentleman from Texas (Mr. BRADY), a b 1300 Springfield, my friend, Mr. WELCH, for distinguished member of the Ways and So I like the philosophy of it. I don’t 2 minutes. Means Committee and a leading expert think it will help much. Thankfully it Mr. WELCH of Vermont. Thank you, on this issue. won’t hurt. It won’t hurt. There are Mr. Chairman. Mr. Speaker, I rise in strong support Mr. BRADY of Texas. Thank you, Mr. good things in this bill. The FHA mod- of this legislation. The legislation does REYNOLDS, for your leadership on our ernization and the reform of Fannie two things that are good and one thing economic issues here in Congress. Mae and Freddie Mac I think are ex- Mr. Speaker, a principle that is be- that is very good in its absence. The actly appropriate. fore us today is that Congress should But if our goal is to make sure we two things that are good are one, it ad- not be bailing out speculators, lenders, have available credit for creditworthy dresses very specifically, in a practical or investors who have behaved irre- borrowers, I think this bill is a poor al- way, the housing crisis that has been sponsibly. ternative to the Hope Alliance, which brought on by the subprime foreclosure If you bought a home that is too big debacle. is moving faster and more effectively for you, that you couldn’t afford from What it does is it shares the oppor- today and covering more than 90 per- the get-go, or you were betting that tunity of relief and it shares the pain property values would go up in your re- cent of those who have mortgages and of getting the relief so that we can end gion, that’s tough. could have problems, or has already up at the end of the day with several If you lent money without income or worked with 1.4 million families who hundred thousand American families means of those who were borrowing it, need help moving them into new loans still in their homes, lenders having or you preyed, you preyed on people or moderating the loan they have been able to mitigate their loss, home- who didn’t know better and then today. And they are doing that without owners being able to keep a roof over churned their loan repeatedly, that’s taxpayers underwriting any potential their head, and the American taxpayer tough. If you purchased securities loss. That is, I think, the approach that not being left on the hook. without determining if the loans un- works best and is already proven to It does it by recognizing we have to derlying them were sound, that is your work. use existing institutions to accomplish problem. That is not the taxpayers’, I will finish with this. I have said that. It does it by acknowledging that that is not your next-door neighbor’s that there is nothing patently offensive it has to be voluntary. A lender will be problem. in the amendment from Ways and in this program only when they make We do have a role in Congress and it Means. In fact, again, I think it is well the practical business decision that it is this, to address this issue: One, we intentioned. But in the underlying bill is a better route than foreclosure. A should make sure that there is avail- by Chairman FRANK, there is some- borrower is going to be able to make able, affordable credit for creditworthy thing that is especially offensive. that same change and has to be able to borrowers. We need to make sure that I come from Texas. Our region was demonstrate an ability to pay at the we prevent this from occurring again. destroyed in Hurricane Rita, a hurri- new current appraisal value of that And we need to punish, aggressively cane that was stronger than Hurricane property. And in the process of doing punish, the bad actors who have in- Katrina. We lost 70,000 homes that were that, it means that we use the guar- fected our entire American economy. damaged or destroyed. We lost more anty of the taxpayer, but in all likeli- The proposal we have before us today than $1 billion of our timber industry, hood, according to the CBO score, not is well intentioned, clearly. I think Re- our main crop. We still have 10 percent the money of the taxpayer. publicans and Democrats agree on the of our families who haven’t moved So it is a practical solution to a very need to help where we can. It is well in- back to southeast Texas because they severe problem that could only have tentioned. It is not particularly effec- don’t have housing. Yet in Chairman been brought to this House for consid- tive. I have my doubts that it will help FRANK’s underlying bill, he creates an eration with the extraordinary co- much at all. It is too little, too slow, affordable housing fund and dedicates operation of both sides in the Ways and too unfocused. It is, as you would $500 million to Louisiana and Mis- Means Committee, the Financial Serv- imagine, a typical Washington reac- sissippi to help rebuild housing in ices Committee, and the help of high tion. those areas. And yet for the same hur- administration officials who had sig- For example, a provision to allow ricane, and Hurricane Rita, in the com- nificant input along the way. States to have more authority for low munities that actually took in the And it would be very unfortunate if income housing. Nothing wrong with Katrina families as they fled that hur- the procedural debates that we are hav- that. In fact, we need more of that. ricane, and then those same families ing about process, made at the leader- That housing likely, knowing the proc- have their own roofs torn off in south- ship level, derail what is a practical ap- ess that works here, in the State of east Texas, this bill says, ‘‘Drop dead. proach to solving a very serious prob- Texas and others, it will probably be 3 Forget it. We are going to help those lem. What this bill isn’t, and I con- years before anyone moves into hous- who are on this side of the hurricane.’’ gratulate the Members on both sides as ing of that caliber. Way too late for The SPEAKER pro tempore. The well, it is not a blame game about who this problem. time of the gentleman has expired. caused this. That is for another day. The property tax deduction for sen- Mr. REYNOLDS. I yield the gen- Mr. REYNOLDS. Mr. Speaker, it is iors who don’t itemize, you always tleman an additional 30 seconds. now my privilege to yield 2 minutes to want to help people with their property Mr. BRADY of Texas. But to those the gentleman from Nebraska (Mr. taxes. But is a retired person really who not only took in those of Katrina, TERRY). going to take $350 and buy a new home to those communities that opened Mr. TERRY. Mr. Speaker, I appre- or buy a foreclosed home in their their hearts, their churches and their ciate the opportunity to come down neighborhood? Not likely. homes and have their own community and speak. Even the tax credit for first-time destroyed, this government and this Certainly in every one of our dis- homebuyers, a part that, I think, the Congress is saying, ‘‘Forget it. We are tricts, the housing crunch or crisis af- philosophy of which I really like. But going to divide this hurricane along fects everyday people. And we have to this no-interest loan is structured so State lines. You can drop dead. No help look at the best way to resolve this. low, $7,500, it won’t allow them to buy for you in housing. No help for you in And I think what we have today is a home. There are not many $75,000 apartments. No help for you, period. kind of a best-intentions type of bill. homes on the market. If it’s only a 5 None. Zero for the victims of Hurricane But I don’t think it’s really getting to percent down payment, there are, Rita in Texas.’’ the heart of the matter. When I have truthfully, not very many $150,000 This Congress ought to be ashamed of talked to several economists that spe- homes that are in the areas of America itself. cialize in the real estate markets, all that actually have massive fore- Mr. NEAL of Massachusetts. Mr. have told me that when you’re looking closures. Those tend to be either in the Speaker, I would like at this time to back and trying to remedy or bail out depressed areas or in the high-value yield to the gentleman from Vermont what has occurred, that you are really States where a lot of people did bet on via Springfield, Massachusetts, one of not going to fix the problems or stimu- rising property values. the most distinguished families in late the housing industry.

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00098 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.041 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3287 So I have developed, with several of With that, Mr. Speaker, I think, ing. And I was searching hard to figure my colleagues, a bill that is forward again, for our colleagues it is impor- out the meaning of that acronym, looking. It is straightforward. It is an tant to understand some of what has based upon the fact that the Ways and up to $10,000 tax credit for a purchaser happened that the minority feels that Means Committee took this legislation of a home, not a foreclosed home only their rights have been trampled in up, and I want to reiterate, for the or a new build only or anything like what has been a very unusual decision fourth time today, 12 of the 17 Repub- that. Just if they want to buy a new on a major piece of legislation, hous- licans on the committee voted for the home or a home they would be eligible. ing. It is certainly a significant piece very bill that they are now all saying I realize that there was at least a of legislation because the Rules Com- they are going to oppose. Forgive me. weak attempt to something like that mittee granted 3 hours of debate by That is sad. How can you come to the in the amendment that is before us various jurisdictions. So it certainly floor and argue against the proposal now. We have got a $7,500 tax credit. sends a signal to all observers that this that you voted for in the committee But when you look at the eligibility is serious. It warrants debate. And it is when you agree with just about every and the fact that, yes, it is a refund- now before the House. part of the bill? able tax credit that you have to pay But I want to remind my colleagues b 1315 back, it turns out to be rather useless that this is not a bill that has gone reg- in trying to stimulate the housing ular order. There is a Senate bill that That’s what’s before us here. We have market. This is really a faux or phan- is energy that has come over to the heard these arguments, and they have tom tax credit. So I don’t think that House. And we have now amended it all said, we support most of what’s in can be used to help stimulate our econ- entirely with a housing amendment. the bill, but they are prepared because omy or the housing market to get us And so this is an amendment to an ex- of an institutional constraint with the out of the housing depression here. isting Senate bill to circumvent all of Senate to vote against the legislation And one of the issues that we’re talk- the regular order process that the that they favor. ing about here today is the devaluation House enjoys and has had speakers of In my home State of Massachusetts, of our homes because of the housing de- both parties affirm this should be the it’s sixth in the Nation in foreclosure pression and that what we’re going to action of how we debate great issues of activity. In Springfield, the largest do is make up the difference of a home the day. community in my district, 300 homes that has been devalued that goes into— This body is really infamous for acro- have been foreclosed this year and over The SPEAKER pro tempore. The nyms. So today I call this the SSAD 2,000 mortgages will reset to higher in- time of the gentleman has expired. Amendment, or the Sorry Sick Amend- terest rates by the end of next year. Mr. REYNOLDS. I yield 1 additional ment Decision. It is sad because the bi- In response to the worsening housing minute to the gentleman from Ne- crisis, Massachusetts this month initi- braska. partisan work that was done in the Ways and Means Committee outlined ated a new law that extends the fore- Mr. TERRY. What we are going to do closure moratorium from 30 to 90 days. is spend $300 billion to try and get us to by many from the Ways and Means Committee is not being worked Other States are taking similar action, right size that by bailing these folks but, like Massachusetts, they need help out. That’s just going to prolong the through a process so that bipartisan- ship and the ability to have the entire from Congress. problem according to the economists. Reports seem to suggest that the Two points there: If that is all that body debate its work that came from housing slide won’t turn around until we are really going to do here, we are committee. 2010. These tax provisions we are con- not going to turn the tide of the de- It is sad that the bipartisan work was sidering today for families and commu- valuation of our homes. The only way trampled in the Rules Committee by to do that is to increase demand over- this decision to slickly move around nities will help turn it around, I hope, all, which increasing your tax credit the mechanism of regular order in our much sooner. It certainly will help our will do, not the phantom one that is House. It is sad that there is no sub- economy and markets in general. here. stitute. It is sad that there is no re- The President’s housing proposals The other way is when you look at committal. It is sad that what makes really haven’t worked. It’s time for the the market and the availability of it a procedure so unusual and so frus- Congress to act. We are often accused credit, especially for lower income peo- trating is the House never had a chance of having a short memory, but I think ple, I think we are doing the right to work its will on housing legislation. all Members in this chamber remember thing here by increasing the cap or the In fact, as I said, the housing bill sent the recent government-backed bailout limit on credits for low-income hous- back to the House by the Senate was of Bear Stearns, yes, the bailout of ing. But there is also market-available an energy bill. When it first passed the that mom-and-pop operation called tools that are out there. I have had House, it had nothing to do with hous- Bear Stearns. If we can, with great ur- people come to my office and present ing. And it is sad that a procedural gency and enthusiasm, come to the aid these market, nongovernment bailout straitjacket has been used in order to of Wall Street, we have no excuse not programs, not programs but options, garner the type of votes that the ma- to help the people who reside on Main where they use a 501(c)(3) entity where jority wants to put before the House Street. you can put the life insurance in and today. I hope that my colleagues will sup- cover the costs, reduce the house, and Finally, it is just plain sad that the port this legislation, and I ask unani- I thank you for the opportunity. bipartisan work of the Ways and Means mous consent to yield the remainder of Mr. NEAL of Massachusetts. Mr. Committee is joined up by the Rules my time to the gentleman from Massa- Speaker, I must tell you I swore to my- Committee with the Frank housing chusetts (Mr. FRANK). self I was going to resist what I’m bill, because it has been clear that sen- The SPEAKER pro tempore. Is there about to say until I heard the term ior advisers to the White House will objection to the request of the gen- ‘‘bailout.’’ The minute I heard the term recommend the President veto the tleman from Massachusetts? ‘‘bailout,’’ I thought to myself the work of the Ways and Means Com- There was no objection. speed with which the Federal Reserve mittee. Mr. FRANK of Massachusetts. Mr. Board and the Treasury came to the So as we debate one of the significant Speaker, I will claim the remaining aid of Bear Stearns in a 48-hour period. issues that many feel should be debated time on behalf of the Financial Serv- And to use that same example of mak- in the House, it is a sad day how we ices Committee. ing it an analogy here is striking. have approached to do it. Mr. Speaker, this is a composite With that, I would like to reserve the I yield back the balance of my time. package. The President some time ago, balance of my time. Mr. NEAL of Massachusetts. Mr. a couple of weeks ago, urgently asked Mr. REYNOLDS. Mr. Speaker, first, I Speaker, let me see what I can do to the Congress to send him several pieces guess I will ask the gentleman if he has lift the spirits of the gentleman from of legislation, three in particular. One any other speakers. I am prepared to New York, my friend, Mr. REYNOLDS. is embodied in the part of the bill that close and yield back the balance of my In fact, I think what is sad is that came out of the Ways and Means Com- time. you are leaving us, that you’re retir- mittee.

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00099 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.043 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3288 CONGRESSIONAL RECORD — HOUSE May 8, 2008 Two, in fact, had previously passed they write down those amounts to a out. It is $2.4 billion versus $30 billion the House from our committee, the bill reasonable level. We think that is very at Bear Stearns. reforming the government sponsored helpful. Again, it’s voluntary. Now, I believe that Secretary enterprises—and that came out of our We do believe that knowing if you Paulson and Chairman Bernanke have committee and on the floor in a form write this down to a reasonable level, been doing the best they can in this that the administration mostly liked— accepting your loss, you will be able situation. I am not critical of what and the bill to modernize the FHA. then to at least get some guarantee of they have done. Chairman Bernanke In fact, the Senate then acted on the that to help stabilize the situation. But has been consistent and thinks this is bill to modernize the FHA. We went people should understand, there is not also a reasonable thing to do. into conference, we ran into some dif- $1 of taxpayer money going to writing The President, of course, appointed ficulty. Not a formal conference, but a down that loan. The holders of the Secretary Paulson and Chairman conversation. What we have done be- loans have to write it down. Bernanke, and for the administration cause, as we know, the Senate is in a Secondly, the borrower can then go that supported and facilitated the $30 situation where procedurally it’s often to the FHA if the borrower can pay the billion for Bear Stearns which went to harder for them to act, so we are act- new loan, but there is no taxpayer lenders, went to investors and some of ing on the basis of a Senate bill. money that will go to help pay off that them were speculators—to then object We are readopting today two of the loan. The taxpayer exposure comes in when it’s homeowners seems to me to pieces we already adopted, reforms of the fact that there are FHA guaran- be entirely the reverse of the reality of Fannie Mae and Freddie Mac and the tees. If someone gets an FHA guar- the situation. FHA modernization. I think it ought to antee and subsequently fails to make Again, I want to stress, I was asked be noted that in both cases they are a the payments, his or her house is for- by 17 Republicans if the committee recognition by the President that the feited to the FHA. would have a hearing. My answer was private sector needs to be able to co- We will lose some money on this, we yes, the committee will have a hearing operate with public or quasi-public en- believe. The Congressional Budget Of- after we have dealt with the current tities to get the job done. Those who fice estimates that half a million fore- subprime crisis—and that will be soon, take the philosophy that the market closures will be averted by this pro- that was our priority—and a hearing alone is sufficient unto itself, and that gram, that would otherwise have taken not simply to say what did you do, be- public sector intervention will do more place, at a cost to the taxpayers of $2.4 cause we cannot compel them to undo harm than good clearly have been repu- billion. That means $4,800 for every it—to look at what they did in the diated. foreclosure averted. Bear Stearns thing in the context of The FHA is a government agency. We are told, well, this is a bailout, figuring out how we are best able to di- Fannie Mae and Freddie Mac are gov- and I want to follow on what my col- minish the likelihood that it will ernment creations with both public and league from Massachusetts said. We recur. have seen one bailout this year over in- private aspects. It is clear that we need But we are in a recession, and a vestors and speculators. It came when major cause of that recession is the both of them if we are to get out of this the Federal Reserve, actively urged on subprime crisis. We do not see any al- current crisis in mortgage lending and by the Treasury, bailed out for $30 bil- ternatives to this bill to trying to work be able to go forward in a healthy way. There is one new element today. lion potentially—we don’t know what on that. Yes, we had Hope Now, and then we That is a bill that our committee voted the losses will be—but $30 billion is at had FHA Secure. The administration on last week and the week before. We risk of what will ultimately be public money, to lenders, to speculators and had several policies. They have been had a markup. It was suggested to us in investors, people who were partners at closer, in many ways, to us. The dif- many ways by some of the regulators. Bear Stearns. ferences are not as great as they once In its essential form it was endorsed Now there may have been some con- were. last Monday by the Chairman of the fusion yesterday. I tried to avoid it. I But the fundamental here is this, Federal Reserve, and we worked closely am not critical that we are doing that. foreclosures are causing, have caused with his staff. The administration had I am critical of the lack of sensible reg- and are causing serious economic prob- an objection to one major piece of an ulation that led them to be in that po- lems. Diminishing the number of fore- auction mechanism. That’s the longer sition. I think we do have to examine closures is in the interest—not simply part of the bill. What it says is that it, and I want to examine it from the of those who will avert foreclosure— holders of loans, not the lenders, be- standpoint of what we can do that will but of people in the neighborhood of cause the lenders have unfortunately make it less likely that we will be con- the cities in which they are located and long since been able to sell off their fronted with that kind of choice, either the whole economy. That’s why we are loans in many cases—and that’s part of provide those funds or see serious fur- going forward with this bill. the problem—if the holders of loans ther economic debilitation. Mr. Speaker, I reserve the balance of will write down the amount due them But for the administration that engi- my time. in the principal, and if they get to a neered $30 billion of bailout for the in- Mr. NEUGEBAUER. Mr. Speaker, I point below the current value of the vestors and others who did business claim time in opposition. home, in many cases these homes have with Bear Stearns to say that this $2.4 The SPEAKER pro tempore. The gen- lost value from when they were first billion cost according to CBO that will tleman from Texas is recognized. mortgaged, and the borrower can be avert 500,000 foreclosures is unaccept- Mr. NEUGEBAUER. Mr. Speaker, I reasonably expected to repay it, we able as a bailout is as intellectually yield so much time as he may consume will broaden the right of the FHA to and morally and economically incon- to the distinguished ranking member make a case-by-case determination, sistent a policy as we have ever seen. It of the House Financial Services Com- provide a guarantee so that can then be is true, and some of the Republicans mittee, Mr. BACHUS. financed and resold to the secondary have said in a letter to me in the Mr. BACHUS. Mr. Speaker, I rise in market. House, that they wanted to question strong opposition to this Democratic It’s entirely voluntary on the part of this. omnibus housing bill, and also I rise in the lender. The lender will retain the I would note, by the way, we talked strong opposition to the procedure right to foreclose. In many cases we be- about this, I have looked at the letter under which it comes to the floor today lieve that it will pay the lender not to that was sent to me. I looked again at under a contorted rule, which is de- foreclose. the letter, and in no case does it say signed to do one thing and one thing In fact, we have legislation in this they were opposed to it. People raised only, and that’s allow no Republican package sponsored by the gentleman questions. Maybe that’s an easy way to amendments, allow no input, allow no from Delaware (Mr. CASTLE) and the kind of cover your bases, but my point open debate of different provisions with gentleman from Pennsylvania (Mr. is not so much those who wrote the let- any ability to modify those provisions. KANJORSKI) that will ensure servicers ter, it’s the administration. Mr. Speaker, I submit for the RECORD who are willing to write down the The administration says they’re page 24 of a promise that the Demo- amounts, that they will not be sued if going to veto this bill, that it’s a bail- cratic majority made to the American

VerDate Aug 31 2005 02:07 May 09, 2008 Jkt 069060 PO 00000 Frm 00100 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.045 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3289 people. It’s a statement of the Speaker b 1330 gram. At a time when we are running a of the House in their document ‘‘A New Mr. Speaker, the procedure outlined deficit, that makes no sense to most Direction for America.’’ here indeed stifles the democratic proc- Americans, most of us on this side of REGULAR ORDER FOR LEGISLATION ess. It corrupts the democratic process. the aisle. Most of all what I do oppose Bills should be developed following full Despite ‘‘A New Direction for Amer- is our inability to strike from the over- hearings and open subcommittee and com- ica,’’ despite a specific promise not to all package this new $300 billion gov- mittee markups, with appropriate referrals do this, we have a process that not only ernment subsidy that I believe is fun- to other committees. Members should have allows no Republican amendments, no damentally unfair and likely to do at least 24 hours to examine a bill prior to more harm than good. consideration at the subcommittee level. substitutes, it does not allow even a Bills should generally come to the floor vote on final passage of this entire bill. Mr. Speaker, let me explain, and in under a procedure that allows open, full, and There will be no vote on final passage. doing so I do not want to minimize the fair debate consisting of a full amendment There will be a vote on each of the seriousness of the distress many of our process that grants the Minority the right to three amendments that go to make up citizens are experiencing. When we offer its alternatives, including a substitute. this package, but as the resolution talk about distress, we sometimes Members should have at least 24 hours to focus on those who are behind on their examine bill and conference report text prior clearly says, it is sort of self-executing, to floor consideration. Rules governing floor a motion that the House concur in the mortgage payments. But, Mr. Speaker, debate must be reported before 10 p.m. for a Senate amendment to the title, the so- let me assure you there are millions of bill to be considered the following day. called renewable energy bill, shall be other Americans who are making their Floor votes should be completed within 15 considered as adopted. There won’t mortgage payments; but, nonetheless, minutes, with the customary 2-minute ex- even be a vote on that. Now that is they are under an equal stress or a tension to accommodate Members’ ability to pretty innovative. That is pretty un- great stress themselves. reach the House Chamber to cast their votes. usual. Last night the gentleman from No vote shall be held open in order to manip- Vermont said what we want to do with ulate the outcome. But above all, as strange and as con- House-Senate conference committees torted and convoluted as this is, it is a this bill is we want to spread the pain should hold regular meetings (at least week- corruption of the democratic process. from those million or 2 million Ameri- ly) of all conference committee Members. All It is a corruption of our democratic cans who are behind on their mortgage, duly-appointed conferees should be informed system, and it is a sad day for this we want to spread that pain to all of the schedule of conference committee ac- House. Americans. We want to spread that tivities in a timely manner and given ample It is not the Members of this House pain to those 34 million Americans who opportunity for input and debate as decisions who are being denied the full amend- are renting their homes. We want them are made toward final bill language. The Suspension Calendar should be re- ment process, it is Americans, those to take part of that yoke upon them. stricted to non-controversial legislation, Americans we on this side of the aisle We want those who are making their with minority-authored legislation sched- represent. They, as are we, are being mortgage payments on time, we want uled in relation to the party ratio in the shut out of the process. them to adopt some of this liability House. Now, Mr. Speaker, if we had been al- and assume some of this liability. We In this document, the Democratic lowed, and we were not allowed to offer want those 25 million American fami- majority promised to the American a substitute, if we had been allowed to lies who have paid off their mortgages, people in what was called a Congress offer an amendment, one of our first many of them elderly citizens, we want working for all America, they made substitutes would have contained some them to assume some of this pain. We this promise: ‘‘Bills should generally of the things that the Democratic al- want them as taxpayers to assume come to the floor under a procedure ternative has. It is a Democrat alter- some of these liabilities. that allows open, full, and fair debate native, but there is no alternative, nor In other words, 110 million American consisting of a full amendment process was one allowed, so I am not sure that families who are making their mort- that grants the Minority a right to we ought to use the word ‘‘alter- gage payments on time, who are rent- offer its alternatives, including a sub- native.’’ Alternative without an alter- ing or who have paid off their mort- stitute.’’ native is maybe what we should call it. gages, they are being drug into this Well, that’s not what we have here But it has FHA reform in it. When we process and are being made liable and today. Instead, we have what we are said we would have liked to have of- are on the hook now for these bad calling the American Housing Rescue fered a stand-alone amendment or of- loans. They have been reading about it, and Foreclosure Prevention Act of 2008, fered legislation to do that, the chair- and now they are going to be respon- but, in fact, it started out as a bill here man says that has already passed the sible for them. Now they are going to in the House and passed the House as a House. Certainly it has; so did the re- have to start paying. And the vast ma- bill to move the United States towards newable energy bill. But it didn’t pass jority of Americans who find them- greater energy independence and secu- the Senate. We would like, because selves struggling with mortgage pay- rity. Absolutely none of that bill re- there is agreement in this House, and ments, struggling with high gas prices, mains, it’s a total sham. we could have agreed today and almost struggling with high food prices, are Through some, I suppose, back room, unanimously passed a FHA reform bill now going to assume responsibility for front room, side room, smoke-filled which all Members of this body say will ill-advised financial decisions and room, who knows, but the Democratic go a long ways toward solving the misjudgments of other people. Good leadership, we, the American people problems of Americans stressed by low- and decent people who have absolutely really don’t know—but at some point ering housing prices and their mort- done nothing wrong, don’t have a bad they decided to take every bit of that gage obligations. We could have done mortgage, don’t have a problem with bill out. The only thing that remains of that. But in the Senate there has been their mortgage, are going to be trapped that bill, actually, is the resolution no movement. We won’t do that today in this dragnet. that brings this bill to the floor. because if we start taking those con- Now is it necessary to involve the 110 It refers to this bill and the resolu- crete steps, it will diminish the major- million American families that aren’t tion that brings it to the floor. The res- ity’s opportunity to take what is a bad behind on their mortgages? I say, no. olution says, upon adoption of this res- situation and adopt and create a tre- No. In fact, the Federal Government olution it shall be in order to take mendously expensive new omnibus has already extended almost a trillion from the Speaker’s table the bill (H.R. housing bill. dollars in guarantees of liquidity. They 3221) moving the United States towards GSE reform, we would have liked to have brought onto their books, the greater energy independence and secu- have seen that joined with FHA. It is Federal Reserve, almost a half a tril- rity, developing innovative new tech- in this bill, and it is offered kind of as lion dollars worth of these questionable nologies, reducing carbon emissions, a candy or a carrot: take the GSE re- loans and questionable securities back- creating green jobs, increasing clean, form which you want, take the FHA re- ing these loans. And the American peo- renewable energy production. That’s form which you want and we have all ple could be on a hook for that. all gone. But that’s still in the RECORD. passed, and in doing that, you will have That is why my companion on the Fi- That’s still the resolution. to take a new $300 billion housing pro- nancial Services Committee and 17 of

VerDate Aug 31 2005 02:13 May 09, 2008 Jkt 069060 PO 00000 Frm 00101 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.046 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3290 CONGRESSIONAL RECORD — HOUSE May 8, 2008 us on the Republican side wrote the antee. There is a reason for that. They participatory program. No one is forced chairman and said we need to take a anticipate a default. to play. close look. We need to urgently look at The result is the taxpayers of this b 1345 the Federal Government extending its country, 110 million American families guarantees and assuming securities that acted responsibly during the run- This is not the silver bullet, by any and investments that maybe have no up in housing prices will be left to bear means. Homeowners, lenders and inves- market value, just to pump liquidity the cost of cleaning up after irrespon- tors will make sacrifices under this. But I’m also concerned about hearing into the market. sible lenders, investors and specu- from constituents who try to work Now what we have agreed to in the lators. That’s just not fair. with their lenders, but their lenders past and we continue to agree with and For all of those reasons, Mr. Speaker, won’t call them back. I’m tired of driv- we would have liked to have said let’s I oppose this housing package and I ex- ing through the Fifth Congressional go further with this, is the Hope Now press my disappointment that the Re- District and seeing many houses va- program. The 1.4 million Americans, publican Party, the minority, that cant because of foreclosure. No one those who come closest to making many representatives here were shut wins when a house in the neighborhood their mortgage payments, they are be- out of the process, denied any oppor- is foreclosed, absolutely no one, be- hind or in default but they were close, tunity to address the bill’s many defi- cause it brings down the value of those and they had an ability to, with adjust- ciencies through the amendment proc- properties. ments to their mortgage agreements, ess or through the motion to recom- No, Mr. Chairman, we cannot stick could make those payments, 1.4 million mit. with the status quo. That’s sticking American families have been helped by Mr. FRANK of Massachusetts. Mr. our policy-making heads in the sand. Hope Now. And we think that more Speaker, before I yield to the gentle- By providing lenders an incentive to will be helped. woman from Florida for 3 minutes, I write down mortgages, modernizing The FHA Secure program, almost would like to note the use of the figure FHA, improving GSE oversight and in- 180,000 families have been helped by $300 billion is not a hopeful sign about cluding tax incentives, I believe we can that program, at some Federal expense. a rational debate. Three hundred bil- help Americans get back into the mar- Before we create a massive new gov- lion is the total value of the mortgages ket and help the housing market to ernment program and put billions of that could be insured. It would cost survive. additional taxpayer dollars at risk, we $300 billion only if nobody made any The bill isn’t perfect, and certainly, need to think long and hard about ask- payments ever, and when the property neither was the process that this bill ing other Americans to assume this was taken by the Federal Government, comes to the floor. And I’m sure that burden. none of it had any value. CBO gave us Chairman FRANK agrees that the proc- Lenders and securitizers wanted no a score of $2.4 billion. So we can debate ess is murky, at best. But I do believe part of government regulation or inter- this, but I would hope we can debate it that what we have before us will pro- ference when house prices were soar- with real numbers. The CBO score for vide relief to Americans, and I urge ing, and they made extraordinary prof- the mortgage part is $2.4 billion. Ev- Members to support it. its. Speculators made millions of dol- erybody knows that $300 billion is not Mr. NEUGEBAUER. Mr. Speaker, the lars. Lenders made millions of dollars. remotely what is at risk. distinguished ranking member of the Investors on Wall Street bought high- I yield now 3 minutes to the gentle- Financial Services Committee men- risk SIVs, securitized investment vehi- woman from Florida (Ms. GINNY tioned that this is a shell. Maybe it’s a cles, and they made millions of dollars. BROWN-WAITE). shell game. I’m not sure. But for en- Sometimes we read where the heads of Ms. GINNY BROWN-WAITE of Flor- ergy bill being the underlying bill, I those hedge funds, private equity ida. I thank the gentleman for yield- think the American people wish we funds, and investment banks were paid ing, and I thank him for clarifying the were on the floor today discussing an a billion dollars in profits. They all true potential cost of this bill. energy future for America. made a lot of money. But now that the Mr. Speaker, today we have to face It’s now my distinct pleasure to yield loans that they eagerly made are going the fact that many Americans are in a 5 minutes to the distinguished ranking bad, this bill offers a mechanism to off- very tough financial position. If I have member of the Housing Subcommittee, load their problem loans onto the learned anything over the past year, it Mrs. BIGGERT from Illinois. American taxpayers. That is unfair. It is how intricate our financial and eco- Mrs. BIGGERT. I would say that all I is wrong. nomic markets are woven. can find in the Congressional Budget Because participation in the plan is As members of the Financial Serv- Office cost estimate is that it’s $2.7 bil- voluntary, no investor will part with a ices Committee, we have been pre- lion and not $2.4 billion over 2008 to mortgage if they think it has a reason- sented and have debated dozens of pro- 2013, as far as the CBO estimate that able chance of performing. The incen- posals and ideas to combat this hous- Chairman FRANK was talking about. tives are designed to ensure that the ing crisis before us. Many of them were You know, Congress has yet to sub- taxpayer loses. Investors will place the sound, good ideas worth pursuing. mit a single bill to the President that worst mortgages they have into the In the months leading up to today, might begin to address this crisis in program. In fact, that is exactly what going around my district I came to sev- the housing market, and here we are they are going to do. They are going to eral conclusions, but one is that Con- again debating controversial new hous- off-load the worst of their loans. If gress cannot accept the status quo. I ing legislation, instead of passing com- there is any chance of people paying, have been patient. I believe in the mar- mon-sense housing reform that could they won’t put these loans into this ket working itself out, but that just start helping homeowners. pool. They will take those loans where doesn’t seem to be happening. At a And I feel like I woke up one morn- people are way behind or have no abil- time when our dollar is devalued, not ing, we just had a markup on the Hous- ity to pay and they will put them into only is the price of petroleum products, ing bill, and suddenly, I couldn’t even a program that will be financed by the gas everyone fills up with over $1.70 find the number of it, H.R. 3221, and it FHA-guaranteed loans. We all know more than it was a year ago, we also suddenly was a different bill with a lot when those loans go bad, who pays. It have very high food prices. People are of different provisions in it. Some were is not the lenders, it is not the bor- finding it hard to make those pay- the same and some weren’t. I have to rowers, it is not the investors, it is not ments. say this reminds me of the SCHIP bill the speculators, it is the people we all And the beauty of this, it has to be a that we debated, which kind of came represent. homeowner who is being helped out, over here the same way from the Sen- Given the substantial risk these not a speculator, not a flipper. ate. I don’t think it’s going to be the loans present, no lender would refi- While Chairman FRANK’s proposal same result, but I just can’t understand nance them without the FHA guar- isn’t perfect, I do think it is one that that process. antee. That is what was said on the Members should take a very close look And I do appreciate Chairman floor. They are not going to refinance at and compare it to what is happening FRANK’s inclusion of FHA and GSE re- these with a Federal Government guar- in their districts. It is a voluntary, form, as well as the funding for housing

VerDate Aug 31 2005 02:13 May 09, 2008 Jkt 069060 PO 00000 Frm 00102 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.048 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3291 counseling and mortgage fraud in the And that’s why I join with Financial amendment that I have offered with bill that we’re considering today. But Services Ranking Member BACHUS to Mr. MILLER of North Carolina be modi- these are much needed reforms that offer an alternative plan that helps fied and amended, and I will describe could increase the liquidity in the homeowners in a responsible way. It that—but then I know the Clerk has to housing market and provide consumers does include the FHA reform. This report it—just by adding 2 words, on with an alternative to the bad could solve this problem right away. line 7, after the word ‘‘foreclosure’’ subprime loans, and help to restore Our substitute funds housing for coun- adding the word ‘‘process,’’ and on the consumer confidence, which is so im- seling, other reforms to GSEs that’s so next line, after the words ‘‘foreclosed portant. important, without a so-called trust property,’’ add the word ‘‘mainte- But attaching these things to a tax- fund or slush fund. nance.’’ payer-funded bailout will not get them And there’s nothing in the Democrat The SPEAKER pro tempore. The any closer to the President’s desk. And alternative that would prevent a simi- Clerk will report the modification. make no mistake. This is a bailout. It lar housing crisis like this in the fu- The Clerk read as follows: would place U.S. taxpayers on the hook ture. Though improved, disclosure Modification of amendment No. 3 printed for the $300 billion guarantee, but that lender registration higher price is in House Report 110–622: includes the riskiest mortgage debt on standard. Insert ‘‘process’’ after ‘‘foreclosure’’ and the market. And it does this by allow- The SPEAKER pro tempore. The strike ‘‘treatment’’ and insert ‘‘mainte- ing speculators, borrowers who have time of the gentlewoman from Illinois nance’’. overstated assets, who have cheated has expired. The SPEAKER pro tempore. Is there and knew that they couldn’t make the Mr. NEUGEBAUER. I yield the gen- objection to the request of the gen- payments, and those who invested irre- tlewoman an additional minute. tleman from Ohio? sponsibly, to pawn off their financial Mrs. BIGGERT. Our Republican al- Mr. PRICE of Georgia. Mr. Speaker, liabilities on U.S. taxpayers. This is a ternative would do more than put an reserving the right to object, I appre- expensive Band-Aid on the housing liability. ciate my colleague on the committee market. It begins to address the under- And instead of serving distressed for attempting to clarify an issue lying causes of the subprime mess. It homeowners, the bill requires that the which is, I think, significantly prob- will ensure that borrowers have access lenders, not the homeowners, to make lematic. to legitimate loans; that they under- the decision to place the mortgage in The issue of defining foreclosure stand the terms of their loan, and that the program. Since the lenders are the time, and length, the particulars have ones that would like to get rid of their they are taking a loan that they can afford based on the actual value of the always been the purview of the States. bad loans and put those on the, be And I know that this amendment is an guaranteed by the Federal Govern- house. We need to bring transparency and attempt to try to clarify that. In fact, ment, the taxpayers, the taxpayers will I think it confounds it, and my concern be bailing out the banks, the investors integrity to the homebuying process, and we need to expand access to credit about the unanimous consent request on their most unwise lending decisions. is that it doesn’t make it clear still. So Even more disturbing is that the for worthy borrowers who genuinely want to pay off their loans, but we I have significant concerns about the bailout is partially funded on the backs amendment. of seniors through changes to FHA re- need to do it without wasting tax- payers’ dollars. I’m happy to yield to my friend from verse mortgage program. Ohio for any clarification that he Mr. Speaker, we shouldn’t be asking I think we have an alternative bill might offer. American taxpayers to pay for the mis- that would solve these problems. And Mr. LATOURETTE. If the gentleman takes of those who over estimated many were supported by both Repub- licans and Democrats. It’s a common- would yield to me on his reservation, I their income on mortgage applications, sense plan that doesn’t spend money would make this observation to the or scam artists that inflated appraisals and, in fact, has been scored by CBO to gentleman and to the House. This and flipped properties. Nor should they actually reduce the deficit by $25 mil- amendment that Mr. MILLER and I pay for homeowners who chose to live lion. Coupled with Mr. TERRY’s tax crafted, obviously, one of the things beyond their means, using inflated credit for owner-occupied homebuyers, that vexes, and it doesn’t matter home equity loans to buy a new plasma it will jump-start the flailing housing whether it’s financial services or any- TV, a swimming pool or a fancy car. It market and get our economy back on thing else, one of the things that con- is not fair to those who saved and in- track. tinues to vex and cause tension be- vested responsibly. That’s why I urge my colleagues to tween the Federal Government and the The majority of Americans are work- vote against the bill before us today ing hard to make ends meet. Ninety- States is this whole issue of preemp- and consider the alternative, if we had tion. three percent of our mortgage holders the opportunity to have an alternative. are making their payments on time. So when Mr. MILLER came to me with Mr. FRANK of Massachusetts. I yield the original amendment, we began to Fifty-one out of 55 million Americans myself first 45 seconds to say that on with a mortgage are making their hear some concerns. And quite frankly, the scoring, $2.4 billion was the CBO the concerns were are you opening the mortgage payments on time. score for the mortgage part. They did Twenty-five million Americans own door to a Maryland-type situation, say a total of $2.7 billion. The other where they can pass a State law that their own homes and have no mort- $300 million is attributable to an says that nobody can foreclose on prop- gage. Thirty-four million Americans amendment offered by the gentle- erty for 5 years, 10 years, 15 years. And are prudently renting because they woman from Illinois on mortgage. So clearly, although I happen to think aren’t ready to own a home. These the gentlewoman from Illinois is cor- that that kind of abrogation of prop- hardworking Americans should not be rect. It is $2.7 billion. That includes the forced to foot the bill for the bad deci- $300 million she added to the bill with erty rights is an unconstitutional exer- sions of a few who gambled that their her amendment, and the $2.4 million in cise of legislative authority, I under- home values would never stop rising. mortgages. stood the concerns. They don’t think that’s fair, and I Mrs. BIGGERT. Will the gentleman And so I will tell the gentleman on don’t think so either. yield? I thank you for putting that $300 his reservation that we sought the ad- I understand that many of my col- million. vice of the OCC and the OTS and re- leagues are looking at the economic ef- Mr. FRANK of Massachusetts. Yes, ceived a list of things that are already fects of the housing bubble and saying the gentlewoman is correct. preempted. And as I think the gen- to themselves, ‘‘We must act, we must Now I would yield to the gentleman tleman has accurately stated, the man- do something. ‘‘But we shouldn’t do from Ohio for a unanimous consent re- ner, the process in which foreclosures something if it’s not right. Congress quest. have happened have always been the can help struggling borrowers and pro- REQUEST FOR PERMISSION TO MODIFY purview of the States. And then the mote economic growth without bur- AMENDMENT NO. 3 boarding up of properties or the main- dening the taxpayers with inappro- Mr. LATOURETTE. Mr. Speaker, I tenance of properties that are fore- priate spending. ask unanimous consent that the closed.

VerDate Aug 31 2005 02:13 May 09, 2008 Jkt 069060 PO 00000 Frm 00103 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.051 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3292 CONGRESSIONAL RECORD — HOUSE May 8, 2008 And so it is my attempt through this What happened was that they came for- that in this process going forward, our unanimous consent request, I think, ward with this amendment, and we failure to get real unanimous consent, from all Members, and I think Mem- heard some concerns from the Comp- as opposed to virtual unanimous con- bers on both sides of the aisle have troller of the Currency, as the gen- sent, will make no difference whatso- some concerns about this. This wasn’t tleman from Ohio has said, and from ever. limited to Republican Members. There bankers. On this point, let me yield 3 minutes were some Democratic members that We then talked to the gentleman to the gentleman from North Carolina had concerns as well. The OCC has indi- from Ohio and the gentleman from to complete this conversation. cated to us that this answers that con- North Carolina (Mr. MILLER), talked to Mr. MILLER of North Carolina. Mr. cern. It doesn’t deprive them of their the American Bankers Association, the Speaker, I want to add my assurance to authority under the National Bank Community Bankers Association, the that of Mr. FRANK, as if anyone would Act. Some of the banking institutions Mortgage Bankers, the OCC, various of need that, but I think that this clari- that were originally concerned about the advocacy groups, the State Attor- fication really does not change the in- the amendment have indicated the that neys General, the National Council of tent of the statute. On its face, going this is language that they can live State Legislators, and they came to an from foreclosure to foreclosure process with. agreement that adding these words is redundant. Foreclosure is a process. And just as a Republican Member of would make this something that would It is a legal procedure. It is a legal pro- the House, I would say to the gen- work. cedure by which real property given as tleman from Georgia, under his res- Now, the obvious thing in a construc- security for the payment of a debt is ervation, that this is typically the tive way would have been with the seized and sold to pay the debt. It is a point in our debates where our distin- agreement of all of the stakeholders legal procedure. It is all process. So guished chairman of the Financial and the conversations among Members saying ‘‘foreclosure process’’ appears, Services Committee skewers us as Re- on both sides to be incorporated into on its face, to be redundant. publicans for being for States’ rights the bill. But constructive isn’t always However, the concern has been that on some days and being against States’ the order of the day. States would add to the same section rights on other days. It was my goal to So let me make this announcement of their State ordinances, their State make sure that States’ rights were pre- which I have also, in anticipation that statutes, other provisions that have served on those things that they’ve al- there might be such an objection, al- nothing to do with foreclosure proce- ways had the opportunity to regulate, though I had spoken to the ranking dures, that have to do something to and not impinge upon those, but also member and he told me he thought we make other provisions; and yet there recognizing that not all the best ideas should go forward. It was my under- would be the argument that all of in terms of how to proceed on process standing the gentleman from Ohio had those now are exempt, immune from or maintenance necessarily emanate talked to the leadership on the Repub- any argument of preemption. That is from this Chamber. lican side. They thought it should go certainly not what we intend, and I I thank the gentleman for yielding forward. So here is where we are. We lend my assurance to that of Mr. on his reservation. will vote on the Miller-LaTourette FRANK that I will work to make sure Mr. PRICE of Georgia. Reclaiming amendment. I will guarantee to the that the language that Mr. my time, I appreciate those comments Members that when this goes forward LATOURETTE just presented be the lan- and I would agree. I think that all of in any discussions we have with the guage in the final bill. us, many of us in the House, many cer- Senate, we will accept this language, Mr. NEUGEBAUER. Mr. Speaker, at tainly on this side of the aisle, want to the Miller-LaTourette language, or if this time it is my pleasure to yield 3 retain the States’ prerogative in the someone comes up with a better idea, minutes to the gentleman from Florida area of foreclosure. And I would sug- any other language that would be mu- (Mr. FEENEY). gest to the gentleman that his com- tually agreed upon by the gentleman Mr. FEENEY. Mr. Speaker, I thank ment about that, and the discussion from Ohio and the gentleman from my friend from Texas, and I would say that’s gone on on the unanimous con- North Carolina, the two bipartisan that people in my district, there are sent request and the language therein, sponsors. some people who are hurting right is something that ‘‘they can live with.’’ So while we don’t get the unanimous about now as there are around the And I would suggest, Mr. Speaker, consent agreement, because some peo- country. There are some people, in- that this probably should have been ple would rather there not be a resolu- deed, who are homeowners in very bad dealt with in committee, and it might tion over an objection, let me an- shape. Some, for example, were duped have been able to be clarified to a nounce what may be a first, and I’m or lied to by people that loaned them much greater degree. My concern re- not always the most technologically money. Some, a few, have lost their mains. updated person; I don’t have a lot of jobs. Some bought homes at the high of Mr. FRANK of Massachusetts. Mr. the devices, but I do want to maybe be the housing market, say $150,000, now Speaker, I don’t know what the par- the pioneer of the virtual unanimous to find that their house is more like liamentary status is. Has the gen- consent agreement. In good faith the $120,000 or $100,000. And we all feel very tleman objected or not? gentleman from North Carolina and sympathetic for those people. The SPEAKER pro tempore. Does the the gentleman from Ohio want to But I don’t feel too terribly bad for gentleman from Georgia continue to amend this, they were denied unani- speculators that went in search of ways object? mous consent, but I am prepared to act to get higher returns and take higher Mr. PRICE of Georgia. Yes, unless as if the body, and I have no question risks as an exchange, and that’s who is anybody else would like time on my that it would have been adopted had we getting bailed out today. I also don’t reservation, I will object. had a chance to vote on it, that it be have complete sympathy when it The SPEAKER pro tempore. Objec- incorporated. And as we go forward, we comes to using taxpayer money to re- tion is heard. can guarantee Members that this lan- imburse people that, for example, put guage, if this bill is included, this will zero money down. They didn’t buy that b 1400 be included; and I can report that all of home. They bought an option to buy Mr. FRANK of Massachusetts. Mr. the stakeholders, the community advo- the home. People that bought into a 3- Speaker, I regret that, but sometimes cacy groups, the banks, and the public percent teaser rate knowing that if the people would rather see things not im- officials at the State and local level be- interest rate went to 7 percent, they proved so they can then complain that lieve that with the language that was would never be able to stay in that they weren’t improved. Fortunately in worked out by the gentleman from home. People that used no documenta- this case, we are not constrained. Ohio and the gentleman from North tion to demonstrate that they ever had The gentleman from North Carolina Carolina with the Comptroller of the the chance to repay. They moved into and the gentleman from Ohio said it Currency, it will be fine. a home with an option to continue buy- had not come to our attention fully So I wish we had got unanimous con- ing it. They didn’t make the type of until after the committee markup. sent, but I want to assure Members commitment that most homeowners do

VerDate Aug 31 2005 02:13 May 09, 2008 Jkt 069060 PO 00000 Frm 00104 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.053 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3293 to put 10 or 20 or 30 percent down and with their monthly mortgage pay- the majority’s budget that’s going to to make sure that they have a mort- ments, many having fallen into the impose a $3,000-a-year on the average gage and a loan that they can pay trap, the adjustable-rate mortgage American family tax increase phased under virtually any circumstance ex- trap. in over the next 3 years. We need to do cept for a disaster. For these reasons, I commend Chair- something about the skyrocketing cost Who does this bill help? Well, The man FRANK for graciously including a of gasoline and food that has occurred Wall Street Journal made it very clear provision I offered that would provide on the watch of the majority. They’ve who this bill helps. This bill is a bail- funding in fiscal years 2008 and 2009 for been in charge of the economic policies out from American taxpayers of specu- grants to be administered to the Neigh- of this country for almost 18 months. lators and imprudent borrowers. Less borhood Reinvestment Corporation for The shrinking American paycheck is than 1 percent of borrowers whose mortgage foreclosure and credit coun- our challenge. A huge bailout of Wall homes, under this bill, would be eligi- seling for veterans recently returning Street and borrowers, some who may ble when all is said and done to be from active duty. The mounting mort- be innocent victims and some who may helped. gage delinquencies and defaults pose a be guilty, is not the answer, and using I come today to speak on behalf of serious economic threat to our econ- taxpayers’ money to do it is simply an the forgotten man. And that includes omy, to say nothing of what it does to insult. some 50 percent of Americans that ei- affected families and their commu- Number one, we ought to have the ther own their home or are renting. nities. facts before we actually take on a Every one of them watching today Preventing foreclosures for our vet- major piece of legislation. The Amer- needs to know that they are bailing erans will benefit all communities, and ican people need to know. Over half of out irresponsible speculators and lend- more importantly, by providing addi- America rents their homes or owns ers and they will pay the price of this tional counseling, resources to vet- their home outright. Of those who have bill. I come here to speak for the 90- erans, it will enhance their ability to an active mortgage, 95 percent are plus, 95 percent of homeowners that are make sound financial decisions during making their mortgage payments on making their payments on time, that these challenging times. Our soldiers time. You have roughly 2 percent who took out responsible loans. They need need our help now, and toward that are in foreclosure. So now we’re being to know that they are bailing out irre- end, I’m pleased that the Foreclosure asked essentially for 98 percent of sponsible speculators and people that Prevention Act would also assist re- America to bail out 2 percent of Amer- went in search of higher profits. turning soldiers to avoid foreclosure by ica. Investors who take advantage of this lengthening the time a lender must Now listen. On the investors’ side, program are basically getting a guar- wait before starting the foreclosure these are a big bunch of boys and girls anteed gift from the government: 85 process from 3 months to 1 year fol- on Wall Street who made decisions percent of a loan that they know is not lowing a soldier’s return from military about what they should invest in. We likely to perform. We are bailing out service. know from the Financial Crimes En- This act is not a handout. It is a hand people that will cherry-pick the very forcement Network that mortgage up. And I urge my colleagues to sup- worst loans in their portfolio. fraud has been rampant: 1,400 percent port passage of this very important Who is here speaking on behalf of the increase over the last 6 years; 42 per- forgotten man? Who is here speaking legislation. Mr. NEUGEBAUER. Mr. Speaker, at cent increase last year alone, with the on behalf of 99 percent of Americans this time it is my pleasure to yield 5 majority of the fraud being borrowers that did not behave irresponsibly, that minutes to my colleague and friend who lied about their income, about did not behave foolishly, that ulti- from the great State of Texas (Mr. their assets, about their occupancy; mately will pay the price for this bill? and yet we have a bill to help them HENSARLING). Well, some of us in the minority are Mr. HENSARLING. I thank the gen- out. here speaking on behalf of the forgot- tleman for yielding. Let’s hear from some of the people ten man, which is 99 percent of Amer- I first come here somewhat amused who are being called upon to do the ica. at the lecture that some of us received bailout. I often ask people who reside And I would leave you with this: from the majority leader last evening in the Fifth Congressional District of Chairman FRANK and the CBO and oth- on abuse of process. I hear many of my Texas that I have the honor of rep- ers can estimate how much this bill colleagues on the other side of the aisle resenting what they think about legis- will cost these forgotten men and say that we have a housing crisis and lation coming to the House floor. And women, 99 percent of Americans who that this is one of the single most im- I hear from people like the Sadler fam- were not irresponsible who will pay the portant bills to come to this floor in ily in Mesquite, Texas, and they write: price. The answer is we don’t know. We this Congress. And yet here we are, as ‘‘Congressman, 3 years ago my hus- don’t have a crystal ball. If property the minority, not being allowed any band and I faced the loss of our home prices around the country take off by amendments, not being allowed a sub- due to a decrease in the sales income. another 50 percent and go up, there will stitute, not being allowed a motion to We cut our expenses as much as pos- be no cost. If they go down by 30 per- recommit, not even being allowed to sible, but it was simply no longer af- cent, the cost will be closer to $3 bil- have an up-or-down vote on the bill. fordable. We made the decision to put lion. And we’re accused of an abusive proc- the home on the market before we Mr. FRANK of Massachusetts. Mr. ess? faced foreclosure. Speaker, I yield 2 minutes to Mr. But enough of that. ‘‘I am adamantly opposed to my tax KAGEN of Wisconsin. Let’s look at the substance of this. dollars going toward bailing anyone Mr. KAGEN. Mr. Speaker, I rise in There is a great challenge in our hous- out of a mortgage crisis. If we didn’t strong support of the Foreclosure Pre- ing markets. There is no doubt about have to give up so much of our income vention Act on which would address to- it. And there are innocent people who to the government for taxes, we could day’s crisis in the housing market and have suffered, and they deserve to be have continued to afford our home.’’ help many American families work out helped. But this is the wrong plan. And what is the answer of the Demo- their financing to avoid foreclosure, al- What we need to do, Mr. Speaker, is, crat majority? Well, to the Sadler fam- though it comes a little bit too late for number one, we have to have better ily in Mesquite, we’re going to increase the gentleman I talked to in Green Bay disclosure so that people understand your taxes an extra $3,000 a year. an hour ago who will be losing his the economic obligations they’re un- Mr. Speaker, I heard from Sergeant home. dertaking. We need to enforce the laws First Class Kenneth Adams of As we are all aware, foreclosure rates that we have on the books. Mortgage Frankston, Texas. He writes: have risen, Housing prices are declin- fraud has been rampant on both the ‘‘Congressman, the mortgage crisis ing, and too many families nationwide, borrowers’ side and on the lenders’ Congress is trying to fix is an insult. including many veterans who served us side. My house went unpainted until I could with bravery, honor, and courage in We need to prevent the automatic return from serving in Iraq. I’m a Ser- Iraq and Afghanistan are overwhelmed tax increase that has been included in geant First Class in the United States

VerDate Aug 31 2005 02:13 May 09, 2008 Jkt 069060 PO 00000 Frm 00105 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.055 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3294 CONGRESSIONAL RECORD — HOUSE May 8, 2008 Army with over 20 years active and re- homes and give them to people who ton and New Braunfels will receive a total of serve service. Some day I would like to need them. $234,868,077 to support community develop- use my VA house-buying benefits, but Is there anything wrong with Amer- ment and produce more affordable housing. what a fool I was to earn those type of ica rising to be higher angels and help- HUD’s annual funding will also provide down- benefits when all I had to do was be ir- ing our fellow brothers and sisters? payment assistance to first-time home buyers; responsible, overspend, and have the Mr. Speaker, I rise in support of H.R. 3221, assist individuals and families who might oth- government bail me out.’’ the ‘‘American Housing Rescue and Fore- erwise be living on the streets; and offer real closure Prevention Act of 2008’’. This momen- housing solutions for individuals with HIV/ b 1415 tous legislation would jump-start the market for AIDS. That’s the answer that the Democrat mortgages by establishing a true market value While HUD is working to help Americans, majority brings to the floor, and it is for the securities backed by these loans. we must all do our part. an insult to 98 percent of Americans H.R. 3221 responds directly to the current We need to pass H.R. 3221, and we need who did it right. housing crisis facing this country, while pro- to continue to push in a bipartisan manner, Mr. Speaker, we should reject this viding the tools to prevent a repeat of these legislation that will ease gas and energy costs, legislation. problems. the rising costs of food, and the ever-rising Mr. FRANK of Massachusetts. Mr. This is preeminently the time to speak the cost of health care. Speaker, I yield 2 minutes to the gen- truth, the whole truth, frankly and boldly. Nor We are spending billions of dollars on the tlewoman from Texas (Ms. JACKSON- need we shrink from honestly facing condi- war in Iraq. I support our troops but I am dis- LEE). tions in our country today. This great Nation mayed at how our support for a war that (Ms. JACKSON-LEE of Texas asked will endure as it has endured, will revive and needs to become less military and more diplo- and was given permission to revise and will prosper. As President Franklin Delano matic in nature, has disrupted our ability to extend her remarks.) Roosevelt stated in 1933, ‘‘the only thing we take care of things at home. Ms. JACKSON-LEE of Texas. Mr. have to fear is fear itself—nameless, unrea- CONCLUSION Speaker, in 2007, Texas ranked fourth soning, unjustified terror which paralyzes Thank you Mr. Speaker for your leadership behind California, Florida and Illinois needed efforts to convert retreat into ad- in this area, I urge my colleagues to support in pre-foreclosures. We’re reminded of vance.’’ We must do just that. We must move American families by supporting, H.R. 3221. I Franklin Delano Roosevelt who said we forward and that is exactly what H.R. 3221 yield back the balance of my time. Mr. FEENEY. Mr. Speaker, I move I have nothing to fear but fear itself. We seeks to do. be able to claim Mr. NEUGEBAUER’s certainly have to face fear and to be This legislation will begin to repair, not bail time in his temporary absence. able to respond to this collapse in out the economy, restoring confidence in the The SPEAKER pro tempore (Mr. mortgages and our economic markets, markets, limiting the damage to families and ROSS). The gentleman is recognized. by resolve and not fear. neighborhoods, and rejuvenating the commu- Mr. FEENEY. Mr. Speaker, I yield 6 And so this is not a bailout. It’s a nities with new affordable housing. Ironically, minutes to a champion of the working helping hand. It’s what Franklin Dela- we celebrate the bailouts of yesteryear, when family, Mr. GARRETT from New Jersey. no Roosevelt did to restore this coun- we believed that the power of the federal gov- Mr. GARRETT of New Jersey. I try, and it worked. We survived. ernment was needed to get the country out of thank the gentleman. And so this tells us that we can sur- the Depression. I rise today to voice my opposition to vive, providing $10 billion in low-in- Were the banking reform laws, emergency the underlying bill, as well as the un- come tax credits for low-income home- relief programs, work relief programs, and ag- derlying unfairness that’s contained in owners and to also build rental prop- ricultural programs, the Social Security Act, it. But before I speak about Title I, erties. We also give a $7,500 tax credit and programs to aid tenant farmers and mi- which does contain the opportunity to for first time home buyers and a $700 grant workers—were these bailouts? Many of use taxpayers’ dollars to insure up to tax credit for those who are paying the New Deal programs under President Roo- $300 billion worth of new mortgages to property taxes. sevelt were considered bailouts at that time. bail out the Nation’s banking industry And it does fix the GSEs. It does pro- And yet, these programs brought our country and homeowners, those who made irre- vide an opportunity to get us out of out of the Depression, rejuvenated our econ- sponsible decisions, I want to briefly this mortgage foreclosure hold, but it omy, and gave hope as we sought to deal discuss other parts of the bill. does it in the right way. It’s not scan- with the War overseas. The chairman has been routinely dalous. It’s not illegal. It allows us to TEXAS criticizing the administration for fail- be able to have the mortgage owner In 2007, Texas ranked fourth behind Cali- ing to do anything, he says, to address sell it back to FHA at a lower price; fornia, Florida, and Illinois in pre-foreclosures. the current housing problems facing the lower mortgage is then backed by Last year, Texas held the top seat for active the Nation, but you know, this admin- FHA, and it isn’t a gimmick. It’s not a foreclosures. istration has been calling for the last flipover. Any profit made by the home- H.R. 3221 helps homeowners and only couple of years for FHA reform and owner comes back to the government if homeowners, not speculators or lenders. We new regulations for the GSEs. How- the property is later sold. cannot continue to stand by as things get ever, the new Democrat majority in And we protect our disabled veterans, worse. Texas reported 13,829 properties en- the House and the Senate has been un- able to pass these important measures. those who have fallen upon hard times. tering some stage of foreclosure in April, a You know, when you think about it, They can still be in the program even 16% increase from the previous month and who knows how many people we could if they are in bankruptcy. the most foreclosure filings reported by any have already helped to stay in their Mr. Speaker, this bill responds to the state. The state documented the Nation’s third homes and keep out of foreclosure if homeless and the helpless. What it does highest state combined foreclosure rate—one the Democrat leadership would have say is those who are living from hand- foreclosure filing for every 582 households. only forged an agreement already and to-hand, who are living in their par- Many homeowners in my district are worried passed those previous bills. ents’ homes, who have been thrown out about missing their next house payment or It is unfortunate that due to the re- of their home, who have been thrown their next home equity mortgage, or their inter- fusal of the distinguished chairman and out because they’re in rental property, est rate going up. These families are under others in the majority to temporarily this is a fix and the life and the spirit stress and in constant fear of losing their forego some of their pet projects, such of what America is all about. homes. as the housing slush fund for ACORN We don’t believe in giving a fish. We While this bill should not be the last word in and La Raza and others, that these two believe in giving a fishing rod. This is housing legislation, it is a great beginning. important reforms have been held up an even-handed, balanced way between This bill coupled with H.R. 5818, the Neighbor- now for the last year-and-a-half. the House and the Senate to provide hood Stabilization Act, provides a good start- And now, with this new housing om- tax relief but also to be able to provide ing point in providing Americans with relief. nibus bill before us, the chairman has the construct and the infrastructure to TEXAS AND WHAT HUD IS DOING once again refused to compromise, I get our houses back together, along In March, the Department of Housing and say, in good faith with the administra- with our stabilization bill that says Urban Development (HUD), announced the tion or the minority side and has in- we’re going to buy back foreclosed Texas State Program and the cities of Hous- cluded such pet projects once again.

VerDate Aug 31 2005 04:36 May 09, 2008 Jkt 069060 PO 00000 Frm 00106 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.056 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3295 And as an indication of the majority’s check to afford their mortgage and, I as saying, if Congress had done what I unwillingness to substantively com- say, attain their 10 percent equity over wanted in 2006, this wouldn’t have hap- promise, the administration has issued 3 years? Now, again, with this bill, pened. It was the Republicans who were a veto threat to this bill. we’re just giving that equity away to in power in 2006. It was under the Re- Over the last 6 months, the adminis- people who didn’t save, didn’t decide publicans that GSE reform and FHA tration and HUD have been working on they would live within their means. reform were frustrated. a program, the FHA Secure. It’s to try Some say the reason this provision is When we took power as the Demo- to help American families who are in needed is that it will encourage people cratic majority, last year this Finan- the right house but maybe not in the to stay in the houses. I believe, quite cial Services Committee and this right mortgage to stay in the house. frankly, the possibility of being kicked House passed both of those in forms And this program has recently been ex- out of your house is incentive enough very close to what the administration panded upon and has to date helped to try to stay in your house. I don’t wanted. In fact, the holdup on the GSE, thousands of Americans to be able to have a problem with trying to help peo- and I know the gentleman thinks the stay in their homes. ple, and this side of the aisle is trying notion of building affordable rental But now our distinguished chairman to do it as well, to stay in their homes, housing with public help is, as he calls and Democrat leadership are proposing but I do have a problem with facili- it, a slush fund, and I think it’s that a plan that is really financially risky. tating arrangements in which they are lack of sympathy for affordable hous- It rewards irresponsible behavior and it given a 10 percent equity in their home ing that was one of the contributing mandates a loosing of FHA under- with a mortgage that is insured by the factors to getting people into homes writing standards, and this is impor- Federal Government, and that means they couldn’t have owned. tant, that would put taxpayers on the the American taxpayer. But the fact is that we sent the GSE hook. Our distinguished chairman was bill over to the Senate last year with a So, when the chairman put together quoted in the paper the other day, ‘‘We very large majority in favor, and the what I say is an ill-conceived plan, he have done as much as possible to re- Senate hasn’t acted, partly because the noted originally that it would help up spond responsibly with the public pol- ranking Republican on the Senate com- to 2 million homeowners. Well, unfor- icy.’’ mittee hasn’t wanted to act. I know tunately when CBO scored the bill, However, the legislation before us com- the administration has been trying to they determined it would only help pletely disregards borrowers’ payment his- persuade him to act. 500,000, and that’s the same amount tories and credit scores when considering eli- So the notion that the affordable they have oft criticized the administra- gibility for this program. Borrowers could have housing trust fund, that’s slush fund tion plan is projected to help. So you’ll missed the majority of their monthly payments for the gentleman from New Jersey, excuse me if I find it a little hypo- over the life of the loan, yet these borrowers housing for lower income people, for el- critical here that those who believe would still be eligible for a government-backed derly people, for disabled people, that’s that the administration’s plan isn’t mortgage—and taxpayers would be on the slush fund, well, it was not that that going to provide adequate help to hook. An amendment was offered during the held it up. It was the refusal appar- struggling homeowners but that this committee process to rectify this and it was ently of the ranking member to act on new plan, which is forecasted to help soundly defeated by the Democrat majority it. the exact same number of people, is party. So this is an example of the inac- somehow the perfect cure-all. I have also heard a number of members on curate descriptions you’re getting. Now, the bill before us for consider- the other side of the aisle mention today their Mr. GARRETT of New Jersey. Would ation goes much further than this. This concerns about the Federal Reserve bailing the gentleman yield? bill actually pays people to stay in out Bear Stearns to the tune of $29 billion. Mr. FRANK of Massachusetts. I their houses. It would give every home- However, none of the members complaining yield. owner who was in trouble and partici- or any democrats for that matter choose to Mr. GARRETT of New Jersey. Just pates in this program a 10 percent eq- sign onto any of three letters I and a number for one question. With regard to your uity stake in their home. Normally, de- of my Republican colleagues sent to Chairman initial comment with regard to the pending on the specifics of your loan, it FRANK, Secretary Paulson, and Chairman FHA reform and the GSE reform, my could take you or I 3 or 4 years for a Bernanke noting our strong concern. comment saying that it hasn’t been homeowner to make enough payments For the last 17 months that the Democrat done, isn’t it true that we’re 17 months for you to get a 10 percent equity majority has been in charge, the Administra- into the year under Democrat leader- stake. Now under this bill, we’re just tion has been asking for a number of housing ship? Have those bills passed this going to give those people who are hav- reforms from Congress, none of which have House and have those bills made it to ing trouble making their payments. been delivered. Now, they want to say the Ad- the President’s desk? You know, I know things are bad in the ministration has idly sat by and watched as Mr. FRANK of Massachusetts. No, mortgage markets right now, but are the housing turmoil has continued to increase, but the gentleman very inaccurately things so bad that we actually have to while it is actually the Democrat congress that blamed the Democrats. He forgot, pay people to stay in the houses? has yet to pass significant housing reforms Bryan Montgomery said in 2006, the Where is the fairness in that pro- that could have provided the Administration Republicans did it. posal? The distinguished chairman ac- with the much needed tools to begin easing us I think one ought to be more accu- knowledged during the committee con- out of this housing downturn. rate and less partisan in a description sideration that maybe this bill isn’t The Chairman states that this a grand com- of reality. The fact is that those were fair in that sense. What about the per- promise between the different groups involved defeated under the Republicans when son who has been patiently sitting on in the discussion, but the only compromise I he was on the committee. Then, the the sidelines over the last several can see is the one between he and his party, Democrats did pass them. years, saving up, waiting for these the big banks who made unsound loans, and And as to the GSE bill, he said it was unsustainable high housing prices to the special interests and trial lawyers that the slush fund. I really like that come down to reality, come down to stand to benefit. phrase, ‘‘slush fund.’’ That’s affordable earth? They’ve been paying their rent Mr. FRANK of Massachusetts. Mr. housing for people, for lower income every month, building up no equity Speaker, first I wondered how I’d fill 2 people. He said that’s what’s holding whatsoever. What about those people? hours, but I could do that just respond- up the GSE bill. That is not remotely We’re now rewarding someone else who ing to the inaccuracies we’ve just true. The GSE bill was sent by us to has undertaken an irresponsible loan heard. Let me pick a couple. the Senate. They haven’t taken it up. and bought something, frankly, they The gentleman from New Jersey said By the way, the affordable housing just couldn’t afford. that the administration wanted FHA trust fund was in the Senate com- What about the person who took out reform and GSE reform and this Con- mittee version when the Republicans a loan 3 years ago and he’s been scrap- gress wouldn’t get it. Well, he misread were in power under the current rank- ing by, struggling just to get enough the newspaper. Bryan Montgomery, the ing member when he was chairman. So money from every paycheck to pay- head of the FHA, was quoted yesterday that is just inaccurate.

VerDate Aug 31 2005 02:13 May 09, 2008 Jkt 069060 PO 00000 Frm 00107 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.059 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3296 CONGRESSIONAL RECORD — HOUSE May 8, 2008 It is true they have been held up in vary from State to State, but every One of the things that we know is the Senate as they were held up under State’s foreclosure law includes protec- that, as the ranking member, I think, the Republican leadership as well. We tions for the borrowers whose homes pointed out, is that we have 110 million are closer to passing them. I am con- are being seized and sold to pay the people that are already meeting their fident that they are going to get passed mortgage. own housing needs. Some of them are fairly soon. We did finally get to some b 1430 having problems, yes, they are, and conversation on the FHA. we’re sorry about that. We know about My objection was that the gentleman State laws have notice requirements. 51 million people in America have acted as if the world was created in They provide reasonable time for the mortgages. And a lot of those folks are families who are losing their homes to January of 2007 and the Democrats re- taking second jobs and doing things to find someplace else to live and to fused to pass the bill, neglecting to make sure that they meet their rental move; they limit the costs that they be note that the head of the FHA himself payments and meet their housing pay- charged to homeowners; they allow put the blame much earlier when the ments. And you look at the fact that homeowners to cure defaults in some Republicans were in power. 94, 95 percent of those people are mak- circumstances. Many States limit or I now yield 3 minutes to the gen- ing those payments, not only are they prohibit deficiency judgments if the tleman from North Carolina (Mr. MIL- making them in full, but they’re mak- sale of the home is not enough to pay LER). ing them on time. off the debt, and on and on. And several Mr. MILLER of North Carolina. Mr. What we can’t let the Federal Gov- States, not surprisingly, are now con- Speaker, I wish to address specifically ernment be is the piggy bank when sidering additional laws to protect bor- the amendment that Mr. LATOURETTE things don’t go exactly the way we rowers who are losing their homes to and I have offered. planned. I would like to go back over Mr. Speaker, the worst of the fore- foreclosure. Recently, there has been some sug- my 30 years in the real estate business closure crisis is yet to come. Mr. gestion, some hint in the press and and wish the Federal Government FRANK just corrected incorrect factual elsewhere that if State and local gov- could have been my piggy bank when I assertions. Let me correct one as well. ernments start getting underfoot, if bought property that didn’t go in the Mr. FEENEY said a few minutes ago or they start making a nuisance of them- right direction. Some of it went down, gave the example of a 3 percent teaser selves, the lending industry will argue some of it went up. But what I do know rate. Mr. Speaker, the typical initial that some of the especially annoying is that it is important that the Federal rate for the mortgages that are causing State laws, State foreclosure pro- Government not get into the business this problem was 81⁄2 percent, which is ceedings cannot be applied to mortgage of trying to manipulate markets. already well above the conventional holders or mortgage services that are Markets are very efficient. In fact, prime rate. affiliated with national banks or they’re a lot more powerful than the According to The Wall Street Jour- trusts. Federal Government. I know everybody nal, 55 percent of the people who got There is no Federal foreclosure law, here feels like they may be a powerful those loans qualified for prime loans. but they argue that State foreclosure person and part of a powerful govern- Their trust was betrayed. And the typ- proceedings could be preempted by ment, but quite honestly, these free ical adjustment after just 2 or 3 years Federal laws that govern national markets are much more powerful than was a 30 to 50 percent higher monthly banks and trusts. This amendment the Federal Government and they’re mortgage payment. Seventy percent clarifies that State laws and local ordi- much more efficient and they’re much had prepayment penalties so people nances on foreclosure and foreclosed better able to deliver a housing market couldn’t get out and would have to pay properties are not preempted by Fed- that the American people can sustain when they got out, when they refi- eral law. and count on. nanced out of a loan they could not Mr. NEUGEBAUER. Mr. Speaker, I And so that’s one of the reasons that possibly afford and the lender never in- yield myself 3 minutes. I rise in opposition to this bill today is, tended they would afford because they Mr. Speaker, I’ve spent nearly three as I look across America—and I wish required they come back and refinance decades in the housing business. And you could have been at a town hall again. over those three decades the housing meeting with me the other day where It’s not surprising that 3 million market has gone up and the housing people weren’t asking about mort- homeowners with subprime loans are market has had its soft moments, and gages, Mr. Speaker, they were asking expected to enter foreclosure pro- one of the soft moments we’re experi- when is this Congress going to finally ceedings in the next couple of years encing today. I liken it to the fact that do something about getting a com- and 2 million of them will likely lose the housing market has a cold. And prehensive energy strategy for Amer- their homes. Another 40 million home- when you go to the doctor and you talk ica? When are we going to open up the owners will see the value of their to the doctor about a cold, what does ability to drill in these other areas? homes decline when other homes in he usually tell you? He says, you know, And when are we going to be able to their neighborhood are foreclosed, and you’re going to have to let it run its come up with more nuclear power they will lose $200 billion in their home course. And quite honestly, over the plants? property values. years as these housing downturns have Mr. Speaker, the American people Credit Suisse now estimates that happened, that exactly what we’ve had don’t want to make their neighbor’s there is another wave of foreclosures to do is let these markets run their payment when they’re having a hard coming after this one as even more ex- course. And what we do know is that time making their own. otic, innovative mortgages go into de- when they run their course, that they Mr. FRANK of Massachusetts. I yield fault. Credit Suisse estimates that in come back a lot stronger. 3 minutes to a very hardworking mem- the next 5 years 12.7 percent of home- We have just come off an unprece- ber of the committee, the gentleman owners with mortgages are expected to dented run in housing where the rise in from Georgia (Mr. SCOTT). lose their homes to foreclosure. home ownership has risen to record Mr. SCOTT of Georgia. You know, Mr. Speaker, when those families levels. And how did we do that? Well, I’m wondering whether the Repub- lose their home to foreclosure most we did it with the marketplace. licans are looking at the same America will fall out of the middle class and One of the things about this bill that I’m looking at, and that the American into poverty. bothers me is that we leave people with people are feeling. Between 7,000 and The policy failures that caused this the understanding that if their house 8,000 American families file for fore- problem, that led to this crisis, were in goes down, the government will come closure every day. While we were up Washington, but State and local gov- in and make up the difference. We can’t here debating this bill the last day and ernment are having to deal with the do that. People buy stocks, people buy today over 15,000 American families consequences. bonds, people buy other assets. They go have filed for foreclosure. We have a Property rights, contracts and fore- up, they go down. But it’s not the role crisis. closure proceedings are all matters of of the Federal Government to create a Now, I want to deal with three points State law, not Federal law. The laws profit opportunity for people. here right quick in my 3 minutes. The

VerDate Aug 31 2005 02:13 May 09, 2008 Jkt 069060 PO 00000 Frm 00108 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.060 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3297 first one is this: I think it is wrong as gentleman from South Carolina, a many people as possible in the program wrong can be for the other side to con- member of the House Financial Serv- meant to help them. And I understand tinually blame this crisis on the backs ices Committee, Mr. BARRETT. it would be nice if we could help all of of the American family. Mr. BARRETT of South Carolina. these borrowers, but some may have Let me read here for a moment from Mr. Speaker, I rise to oppose this bill, very bad credit scores that reflect irre- this morning’s Hill newspaper, and I which I think is unhelpful for the hous- sponsible borrowing behavior. It’s not hope that you all will read this as well, ing market and unfair to the American fair to the American taxpayer to insure this article by J. Morton Davis of the taxpayer. the loans of the riskiest borrowers who Harvard Business School, an econo- Like many of my colleagues, I’m con- may not be able to pay their mortgages mist. He tells you what the cause of cerned that this program will only dis- no matter what the terms of the loan. this is and who is to blame. tort housing prices, causing problems Without a doubt, it’s never easy to Because mortgage originators them- in the future by forcing the taxpayer to hear the stories of hardworking indi- selves were not taking any of the risk foot the bill. viduals and families losing their of holding this paper and were being I have no doubt that some of the homes, but I do not believe that more well paid by providing mortgages to lending practices in the beginning of government intervention is the solu- Wall Street banks that were packaging the decade, Mr. Speaker, were irrespon- tion to our problems. And we should them, they became more aggressive, sible, and that the government should not allow the American taxpayers to less demanding of the conditions tradi- take certain steps to help the market become the insurance policy for the fi- tionally required upon them. The mort- right itself and to prevent these prob- nancial decisions that did not turn out gage brokers and bankers introduced a lems from recurring in the future. At as planned or for temporary market whole series of new criteria that made the same time, I’m a firm believer in downturns. We should not punish those it easier to obtain a mortgage, they in- the power of the free market, and I be- hardworking and responsible American troduced nothing down, no equity lieve that the housing market fun- taxpayers for the mistakes of a few. mortgage, interest-only mortgage, no damentally reflects the laws of supply For these reasons, and others, I oppose income, no job requirement as suffi- and demand. this legislation and ask my colleagues I’m always wary of government cient basis to receive the mortgage. to do the same. intervention in the markets and con- That’s why we’re in the condition that Mr. FRANK of Massachusetts. Mr. cerned about unintended consequences. we’re in, not on the backs of the poor Speaker, I yield 4 minutes to the gen- I fear that in our rush to help, we are American family. tleman from California (Mr. GARY G. He goes on to say that ‘‘the changes overlooking the basic realities about MILLER). today’s housing market and about the in lending practices actually trans- Mr. GARY G. MILLER of California. cost of government spending. formed what were solid, safe, secure Mr. Speaker, I rise in support of this mortgage loans into instruments that I think we can all agree that govern- ment programs cost money, and this bill. were inferior even to the subprime A lot of people are losing their home program has the potential to cost a mortgages. The cause of this can be in this country. In fact, in California, tremendous amount of money. And traced to the simple fact that the pro- 500 families or more lose their home that money comes from the taxpayer, viders of these mortgages did not end every day. And that not only hurts Mr. Speaker. Because, in reality, like up holding the paper and thus were far them, but the neighbors around them. the laws of supply and demand, deci- less concerned about the quality of the Because of foreclosure, their home loan.’’ Because nobody bothered to sions have consequences, and money has to come from somewhere. It’s not value drops weekly. look at or take issue with the enor- I don’t support government bailouts. fair to ask my constituents from South mously changed quality of these under- I consider this bill we’re dealing with Carolina, who work hard and spend lying mortgages, not the Federal Re- here far from a government bailout. If wisely and pay, in my opinion, too serve, they didn’t look at it, not the you look at the situation people are in Securities and Exchange Commission, much tax money, to carry the burden for others’ financial mistakes. today, people are suffering from not the rating agencies, not even we shrinking paychecks, other things go here in Congress, who surely should While I believe that people in need wrong in their life. But this loan is the have been more responsible and ac- deserve our understanding and our help, I trust in the ability of the free most expensive FHA loan you will get. countable, and not the many Wall Normally, a person can go to get an Street banks that were coining the market to correct itself. And I think Americans know how best to spend FHA loan, put 3 percent down, and the money, just as they did. The whole government will basically be guaran- world is now suffering the pain, the their money and should be trusted to teeing 97 percent financing. Under this outsized losses and the damage to its make their own financial decisions. I loan, the lender has to be willing to banking systems and economies. also think that lenders have a responsi- Ladies and gentlemen of this Con- bility to live with the consequences of take 85 percent of current market gress, it is not the American home- investments that did not quite turn out value. Let me explain that so it makes owner who is the cause of this, he is as planned. it understandable to most people. Let’s say you bought a house for the victim, and it’s our responsibility Mr. Speaker, I offered an amendment $580,000. The first trustee gets $5,000, to provide the response for it. in the Financial Services Committee Now, the other point I wanted to that is representative of my concerns. but current market value is $400,000 for make is I have a copy in my hands here The amendment was not adopted, and that house. The people are upside of the Congressional Budget Office co- it was very simple. It was to strike the down, they can’t make the payment, it assessment. Let’s put to bed once and section of the bill that prohibits FHA is going into foreclosure. The lender for all, this is not $300 billion of the from denying borrowers entry into the has an opportunity to allow another taxpayers’ money. The taxpayers’ new FHA program solely on the basis lender to buy them out with an FHA money that’s going to this, as clearly of the mortgagor’s current FICO or loan guarantee, and they’re willing to as put out in this estimate, is $1.7 bil- other credit scores, or any delinquency take $340,000 for a loan they have that lion just to run the program, another or default by the mortgagor. In South the market today is $400,000, and the $300 million for administrative support, Carolina talk, Mr. Speaker, this new loan against that house will be and the counseling of $400,000. And then amendment would have given the FHA $360,000. Now, that sounds really good. Mrs. BIGGERT’s own program for coun- the opportunity to use individual And we say the person is going to make seling of $300 million. That’s $2.7 mil- pieces of information on their own that a lot of money, it’s a bailout. But this lion of the taxpayers’ money. reveal the risk of borrowers defaulting. is really more like a joint venture. And Let’s do facts right. That’s why we In offering the amendment, I wanted to I don’t think CBO even scores this por- need to pass this bill, Mr. Speaker. Let allow the FHA to protect the American tion. If you sell the home the first us stop fooling around and give the taxpayer by giving them every tool year, we either get 3 percent of the American people some relief. available. loan amount or 100 percent of the prof- Mr. NEUGEBAUER. Mr. Speaker, I I understand the motivations of this it on the home, whichever is greater. If yield 3 minutes to the distinguished section of the bill to try to include as they sell the second year, we either get

VerDate Aug 31 2005 02:13 May 09, 2008 Jkt 069060 PO 00000 Frm 00109 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.062 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3298 CONGRESSIONAL RECORD — HOUSE May 8, 2008 3 percent, or 80 percent of the profit, from Georgia (Mr. PRICE), who is also a ferent . . . If after everything we do in whichever is greater. The third year, 60 member of the Financial Services Com- this cooperative way falls short, then percent. And if you hold it for 30 years mittee. you are going to see legislation that and you sell that home, FHA gets 50 Mr. PRICE of Georgia. I thank the puts some very real restrictions on the percent of the profit on that home. gentleman for yielding. role of servicers.’’ Now, I don’t know how most people There’s a general sense, Mr. Speaker, All of a sudden, Mr. Speaker, this look at it, but that’s the worst FHA that it’s this bill or nothing, and that program doesn’t sound so voluntary. It loan you can get. It’s not a bailout, but certainly isn’t true. In fact, much has seems to me that the chairman’s com- it’s enabling a person who’s losing been done. As has been talked about, ments will exacerbate the moral hazard their home and a lender who says, well, the FHA Secure program has created that the Federal Reserve Governor if I foreclose it on $400,000, I might get greater flexibility, helping hundreds of warned us against. $380,000, $390,000. And what does that do thousands stay in their homes. The In addition to the incentives, the to a neighborhood? That home that Hope Now program has already helped chairman provides in his legislation for originally sold for $580,000, now the 1.4 million individuals stay in their holders of mortgages, and they are real market value for that home in that home, getting borrowers and lenders and enticing. We have actual threats of neighborhood is now $380,000, $390,000 or together. Loan limits have been in- harmful regulation if they don’t sign $400,000. creased, FHA, Fannie Mae, Freddie up dutifully for this program. That’s This is more like a refi. It doesn’t im- Mac. The Federal Reserve has lowered not voluntary. pact the value of the homes in the com- interest rates. So the notion that the The SPEAKER pro tempore. The gen- munity. It basically helps a person get Federal Government has been unre- tleman’s time has expired. in position where they can retain own- sponsive or slow to move is disingen- Mr. NEUGEBAUER. Mr. Speaker, I ership of their hone. And they’re not uous and is repeated as fact solely as yield the gentleman an additional 15 going to make a windfall profit for it. an excuse for the Democrats to con- seconds. Mr. PRICE of Georgia. I thank the I would like to thank the chairman tinue outbidding each other on how much taxpayer funding they can spend gentleman. for introducing language in this bill I would suggest, Mr. Speaker, that or bail out imprudent borrowers who that I worked on for 5 years, and that’s these threats do no favors to the Amer- either bought too much house or lend- raising conforming home limits in ican taxpayers across our country. The ers who were gladly willing to give high-cost areas. Basically, Freddie and chairman is ensuring that we will get them the money. So much has been Fannie and FHA, in high-cost areas, full and active participation in this you can borrow a maximum of a done to date. We have also heard the chairman and program, populated by the riskiest of $730,000 loan from them today. The big- loans with enormous redefault rates gest problem we’ve had in the market- others say that it’s unlikely that this will cost $300 billion, that it will only and cost to the American taxpayer of place in recent years is people have up to $300 billion. Mr. Speaker, that’s been forced into jumbo loans. If you be $2.4 or $2.7 billion. Well, then why doesn’t the bill say that? It doesn’t, irresponsible and it’s unwise. look at a GSE loan, that’s Freddie and Mr. FRANK of Massachusetts. Mr. Mr. Speaker, because the taxpayer will Fannie, compared to a jumbo loan Speaker, I yield 3 minutes to the gen- be on the hook for risky loans and the today, you can generally save about 100 tleman from North Carolina (Mr. number may significantly rise, and basis points in interest rates. That’s a WATT), member of our full committee. huge amount of payment a person can that’s because this bailout plan irre- Mr. WATT. Mr. Speaker, I was listen- save each year, enable a person to be sponsibly disregards borrowers’ pay- ing to this debate, and the only thing I able to put away money in the future ment history and credit scores. Bor- could be reminded of was a few years for house payments if times get tough rowers could have missed the majority ago when I had a very, very serious po- and basically own their own home. of their monthly payments over the litical campaign mounted against me Some people have said they don’t life of the loan; yet those borrowers and that had about $800,000 spent on trust the Refinance Program Oversight would still be eligible for a govern- television ads telling people how ter- Board because they don’t have any idea ment-backed mortgage, and taxpayers rible I was, and at the end of the cam- what the Board is going to implement would be on the hook. Americans don’t paign, my mother finally called me and as far as criteria to qualify for this believe that’s fair. said, ‘‘Are you really that bad?’’ loan. I have a problem believing that There has also been discussion about I don’t recognize the bill that’s being we can’t trust the Secretary of Treas- the voluntary nature of this program. described here on the floor. Title II and ury, the Secretary of HUD and the However, Federal Reserve Board Gov- title III we have overwhelmingly Chairman of the Federal Reserve Board ernor Randall Krozner said in our com- passed previously. Title V was over- to come up with criteria based on in- mittee, ‘‘If Congress decides to move whelmingly passed out of the Financial come, assets, liability, payment his- down this road, then it should carefully Services Committee. And all of the rep- tory, other criteria, debt-to-income consider the steps that should be taken resentations that are made about title ratio. If we can’t trust those three indi- to mitigate moral hazard, avoid ad- I seem to me to be just outrageously viduals to come up with a reasonable verse selection, and ensure that the fi- overstated. criteria under which this loan is made, nancial interests of the taxpayer are Like FHA is going to assume all of I think we’re in trouble in this coun- adequately safeguarded.’’ this responsibility. This is a bailout. try. But if you listen to the chairman, This is a voluntary program. FHA is The problem some people have is this program isn’t so voluntary. At not out soliciting any of these loans. FHA exists. FHA loans are made today, that same hearing, the chairman said, They will evaluate the credit worthi- and FHA is guaranteeing, through in- ‘‘If we were to get this approach adopt- ness of everyone who comes to them. surance premiums, these loans. Now, a ed but we don’t get much of a vol- Like this will cost $300 billion. normal FHA insured premium costs a untary buy into this, then I have to say There’s no way this program will borrower .55 percent per year, about the response will probably be more reg- cost $300 billion unless every single half a percent. Under this new pro- ulation than people might like to see.’’ person who gets involved in it defaults gram, they have to pay 1.5 percent per He went on in an article quoted yes- and we get nothing out of a foreclosure year to FHA to underwrite this guar- terday here in Washington to say, or reclaiming of the property. antee. That’s far from a giveaway. I ‘‘Meanwhile Chairman FRANK has Like this is going to benefit specu- can’t see anything in this FHA loan warned the mortgage industry that if lators. that’s a giveaway. it doesn’t support something like this The bill explicitly says that this is I rise in strong support of this bill. plan this year, it could be in for far limited to homeowners, not people who more regulation next year.’’ And that have been speculators. I don’t know b 1445 article went on: ‘‘If after this we con- what else we could say on that. The Mr. NEUGEBAUER. Mr. Speaker, tinue to get very little participation by language is absolutely explicit that now it is my honor to recognize for 3 servicers, I can guarantee you that the only homeowners qualify for this pro- minutes the distinguished gentleman servicer industry will look very dif- gram.

VerDate Aug 31 2005 02:13 May 09, 2008 Jkt 069060 PO 00000 Frm 00110 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.063 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3299 Or maybe like the most outrageous constituents, talking about the strug- Mr. NEUGEBAUER. Mr. Speaker, it one that I’ve heard today: Well, the gles that they are making in order to is my honor to introduce another dis- market will take care of this. pay their mortgage. They don’t want tinguished member of the Financial Well, the market is how we got here to have to pay somebody else’s mort- Services Committee, the gentleman in the first place. If the market had gage. They are struggling enough to from Illinois (Mr. ROSKAM), and I yield been taking care of this, we wouldn’t make their ends meet with high gas to him 3 minutes. be in this crisis. We wouldn’t be having prices, the rising cost of health care. Mr. ROSKAM. I thank the gentleman the problem that we are trying to And I’m not advocating that we do for yielding. solve. And so this notion that the mar- nothing. In fact, I have been working Mr. Speaker, have I ever told you ket is somehow going to overnight cor- very hard in my district with fore- about my dog, Max? I don’t think I rect itself and we will solve this prob- closure prevention seminars, working have. Let me just take a minute and lem solely through market forces just with the Hope Now alliance, which has tell you about Max. doesn’t make a lot of sense to me. But, helped 1.4 million homeowners stay out Like a lot of us who are fathers of again, my mother started to question of foreclosure, keep their homes. younger children, I have four children, after a while, after people said it over These are the things that Congress who approached me, Mr. Speaker, and and over and over again. Maybe my should be doing, is helping individuals begged me and begged me and begged colleagues think if they say it enough, get through this crisis. We shouldn’t me to get them a dog. And for years I that this is terrible, they will convince have a massive bailout of lenders on was able to avoid eye contact and was somebody. Wall Street. We shouldn’t bail out the able to keep an animal out of my Mr. NEUGEBAUER. Mr. Speaker, it servicers. They took ill-advised risks, house. But, finally, in a moment of is now my honor to introduce another and as such, the losses should be car- weakness, I said yes. member of the Financial Services Com- ried by them, not by my constituents And a friend of mine, Mr. Speaker, mittee, the gentleman from North who are paying on time. realized what was happening, and he Carolina (Mr. MCHENRY), for 3 minutes. Let’s oppose this legislation and do pulled me aside and he said, ‘‘Look, if Mr. MCHENRY. Mr. Speaker, there what’s reasonable and right for the you’re going to get a dog, realize this: are many good and decent people who taxpayer. You get what you pet.’’ You get what are in financial distress right now Mr. FRANK of Massachusetts. Mr. you pet. So if a dog comes in and it’s across this country. Some with mort- Speaker, I yield 2 minutes to a very disobedient and you pet that dog and gages they can’t afford. Some made hardworking member of the committee give it all kinds of affirmation, then poor financial decisions. Some were who contributed to this bill, the gen- guess what. It’s going to keep being victims of fraud. Some were simply tleman from Florida (Mr. MAHONEY). disobedient. And not being very wise, speculators acting on their instincts. Mr. MAHONEY of Florida. Mr. we started to do that, and so now we’ve But the reality is that most bor- Speaker, I rise today in strong support got a slightly out-of-control dog. rowers are paying on time. They are of the American Housing Rescue and Now, why do I mention Max? We’re making their mortgages; 92 percent of Foreclosure Prevention Act. on the verge of doing that same type of borrowers are paying on time across I must say that I’m extremely dis- conduct exactly to people who have this country; 6 percent are late but not appointed that the President and many fundamentally made some bad deci- yet in foreclosure, and 2 percent are ac- of my friends on the other side of the sions. Let’s take the borrowers aside, tually in foreclosure. This bill is di- aisle have expressed opposition to this and I realize the chairman has worked rected to the 2 percent on the backs of legislation. I think it’s telling that hard, but let’s take the borrowers aside the 98 percent. That means that 110 Federal Reserve Chairman Bernanke and just put them in a different cat- million households are meeting their has expressed his support for the bill. egory because what we’re going to be obligations. This legislation under con- Mr. Speaker, the President and some doing today, in addition to helping bor- sideration today would require that of my Republican colleagues have rowers, is really bailing out lenders. those 110 million families bail out the called this plan a bailout. Clearly, the And I don’t think that’s an over- lenders on Wall Street. And I will tell party that claims to represent big busi- characterization. I don’t think that’s you it’s simply a case of robbing Peter ness doesn’t understand business. an unfair way of looking at this. We to pay Paul. This plan requires current mortgage are being told that lenders who were in We are sending the message to finan- holders who choose to participate, not this, who are great advocates of the cial institutions and Wall Street inves- taxpayers, to realize the loss of at least free market when they’re making tors that when those investors make 15 percent. And by putting homeowners money, they love the free market when poor choices and take ill-advised risks in mortgages with rates and payments they’re making money, and now all of that the Federal Government will step that we know they can afford, we are a sudden, they are coming to the Fed- in and bail them out. That’s a bad deci- minimizing the risk of future defaults. eral taxpayer and saying this has got- sion. In fact, this is a $300 billion tax- And by doing so, we are injecting con- ten a little bit more complicated than payer bailout that will cost the Amer- fidence and liquidity back into credit we thought, and now we want the tax- ican taxpayer $5,000 for every fore- markets, thereby taking an important payers to come in and take care of this closed loan that is dumped into the step to ensure the economy has the from here out. It’s voluntary on the program. And make no mistake about capital to begin digging ourselves out part of the lenders, and think about it. They will be dumped into the pro- of this recession. how voluntary that would be. What a gram. And it’s not the homeowners For anyone who calls this a bailout great invitation. These lenders go and who will control this. It will be the of risky investors, I would invite them they say here’s our pile of bad debt. lenders and servicers who will decide to to come to my district and meet some Let’s take a haircut, 85 percent of the take advantage of this for their own of the thousands of families who are in value, shove that off to the FHA, which personal advantage, the servicers and foreclosure. These are families with is pretty ill equipped, I might add, to the lenders. dreams and hopes. They, like everyone take on this obligation—let’s shove The one thing that we know for sure in this room, were trying as best they that off to the taxpayer, and instead of is that those lenders and servicers are could to live the American Dream of getting our heads chopped off as lend- only going to submit those loans that homeownership. These are not frauds ers, we’re just going to get a haircut. they don’t believe will pay. The Amer- and cheats. They are firefighters and I think we can do a lot better, I ican taxpayer will instead be punished. teachers who were forced into the think, over a period of time. Ultimately, the real losers are the subprime mortgage market in order to American taxpayers who are left to realize their dream. b 1500 guarantee the loans that nobody else The only moral hazard before us There is a great willingness, Mr. wants. today would be our failure to act. If we Speaker, on this side of the aisle to try Mr. Speaker, in the past couple of are to protect our economy, our fami- and work creatively and to try and months, I received several calls, let- lies, and the American Dream of home- work substantively on solutions. But I ters, conversations I have had with my ownership, pass this amendment today. think as we reflect back on this, in the

VerDate Aug 31 2005 02:13 May 09, 2008 Jkt 069060 PO 00000 Frm 00111 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.065 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3300 CONGRESSIONAL RECORD — HOUSE May 8, 2008 chairman’s own words, it is going to the availability of credit. And thus it is recovered in foreclosure is below the cost $5,000 for every defaulted mort- imperative that we take responsible, outstanding debt still owed. gage that is assumed by the FHA, reasonable steps such as this to Furthermore, this legislation in- times a half million. That gets us to strengthen our weak economy and ulti- cludes tax provisions to expand refi- the $2.5 billion figure that makes many mately benefit not just those who are nancing opportunities and to spur of us cringe. at risk of losing their homes, but every home buying. And I don’t think that those types of American. It increases the VA home loan limit numbers should be allocated to lenders As Federal Reserve Chairman Ben for high-cost housing areas, which we and bailing out lenders who made bad Bernanke pointed out in a speech on passed before, enabling veterans to decisions. Monday, Monday, just a few days ago, have more homeownership opportuni- Mr. FRANK of Massachusetts. I yield at Columbia University, ‘‘High rates of ties. We are having people come home 1 minute to the majority leader, the delinquency and foreclosure can have from Iraq. We are going to be talking gentleman from Maryland. substantial spillover effects on the about that. They may have lost their Mr. HOYER. I thank the gentleman housing market, the financial markets, home because they went to Iraq and for yielding. and the broader economy.’’ they couldn’t keep their home. This This is not about petting dogs. This And the answer is, don’t pet your helps them get back in a home. is about people who are hurting. This is dog. It was bad behavior. Leave him And it includes FHA modernization trying to reach out to people who have alone. Or punish him. What we want to provisions that have already passed been savaged in many ways by this do is help people do the right thing. this House, as well as GSE reforms economy and the policies that have led He continued: ‘‘Therefore, doing what such as strengthening the regulation of to an economy where average working we can to avoid preventable fore- Fannie Mae and Freddie Mac and rais- incomes are down $1,000 and where gas- closures is not just in the interests of ing their loan limits to increase liquid- oline prices have exploded over 200 per- lenders and borrowers, it’s in ity in the mortgage market. cent from $1.46 to $3.56. I would remind everybody’s interest.’’ Those are Chairman FRANK has talked to Sec- you that under the Clinton administra- Bernanke’s words. Not Chairman retary Paulson about that. I have tion they went from $1.06 to $1.46, 5 FRANK’s. Not mine. talked to Secretary Paulson about cents a year during the 8 years of the Mr. Speaker, that is precisely what that. I am sure many of you on your Clinton administration. They are going this legislation, the product of hard side of the aisle have talked to Sec- up 5 cents a week during this adminis- work by Chairman BARNEY FRANK and retary Paulson about that. He thinks tration. so many others, is designed to do: this is absolutely essential. People are stretched. Avoid preventable foreclosures. I urge my colleagues on both sides of I didn’t hear people come to this There is little question that after an the aisle, let’s mitigate the effects of floor and say $30 billion for Bear historic housing boom in the first half the bursting of the housing bubble. Stearns. It was outrageous, putting the of this decade we now are faced with a Let’s prevent hundreds of thousands, taxpayers’ money—Mr. FLAKE says he housing crisis. Foreclosures soared to and perhaps up to 1 million people, did. Thirty billion dollars. We just an all-time high in the last quarter of from foreclosure and allow American talked about $2.5 billion for literally 2007. According to Mortgage Bankers families to stay in their homes through tens of thousands, hundreds of thou- Association, more than 1.2 million this responsible legislation. sands, perhaps as many as 1 million properties received foreclosure notices Let’s stabilize our housing market people. There is a crisis, and they have in 2007, up 75 percent from 2006. And 1 and help millions and millions of asked us to respond. in 33 homeowners is projected to be in homeowners who are not at risk of I want to congratulate the chairman foreclosure over the next 2 years. So foreclosure, but whose neighbors are at of our committee. I want to thank the much for a great economy. risk for foreclosure, and if they are ranking member of the committee. I This legislation, in short, will expand foreclosed upon, will see their home want to thank all the members of the the FHA program so that borrowers in values deteriorate. So the assistance is committee for giving this their atten- danger of losing their homes can refi- not just to those at risk of foreclosure, tion and trying to come up with a solu- nance into lower-cost, government-in- but to all those who are in commu- tion that works. Was this a partisan, sured mortgages that they can afford nities where homes are at risk. divisive solution? Absolutely not. The to repay. Let’s pass this comprehensive, bipar- Secretary of the Treasury has said that I’ve heard so much talk about a fam- tisan legislation today and work to get this is a product that merits serious ily-friendly Congress. Family values. it to the President’s desk without consideration. Caring about children. What can be delay. I am hopeful that the President For a time, I thought he was for it. I more family friendly than keeping will see fit to sign it. Vote ‘‘yes.’’ Vote am not sure now. There seems to be families in their homes? I think not ‘‘yes’’ on the American Housing Rescue some internal division within the ad- too many things. and Foreclosure Prevention Act of 2008. ministration. Mr. Bernanke, the head But to be clear, this bill will mini- Vote ‘‘yes’’ for the families of America. of the Federal Reserve, former chair- mize taxpayer exposure. In fact, the Mr. HENSARLING. I yield myself 30 man of the Council of Economic Advis- Congressional Budget Office estimates seconds. ers, said that this is a good thing to do. that the cost of putting homeowners As the distinguished majority leader So, Mr. Speaker, today through this into affordable loans under the bill said, this is about people hurting. He comprehensive landmark legislation, would be not $30 billion, not $20 billion, should know. Since his Democrat ma- the American Housing Rescue and not $10 billion, but a total of $2.7 bil- jority came into office almost 18 Foreclosure Prevention Act, this House lion. A few days in Iraq. A few days in months ago, we know that we have a is going to act not to pet dogs but to Iraq. Not a month. A few days in Iraq. $3,000 per family tax increase that has help people. This House will take deci- Contrary to the rhetoric coming from been approved, gasoline at almost $4 a sive action to keep hundreds of thou- some, this bill is not a bailout for irre- gallon, milk over $4 a gallon. Yes. This sands of families at risk of foreclosure sponsible lenders or borrowers. Only is about people hurting, particularly in their homes and will help stabilize primary residences are eligible. Inves- the 98 percent that rent, that have paid the housing markets across the Nation tors and lenders must take significant off their mortgages and whose mort- that have been wracked by an unprece- losses, as they should. The owner of the gages are current. dented drop in home values over the old mortgage can only receive 85 per- And if this bill is only going to cost last 2 years. cent of the current value of the home. the taxpayers $2.7 billion, why do we Make no mistake: The slumping And in return for an FHA guarantee see $300 billion written in the bill? housing market has had negative, rip- on the mortgage, borrowers must share With that, I am happy to yield 2 min- pling effects throughout our economy. with the government any profit from utes to the gentleman from Arizona, It is not just people in houses that are the resale of a refinanced home. The JEFF FLAKE. having problems, but the subprime cri- government will only have liability if Mr. FLAKE. I thank the gentleman sis has affected our entire country and the borrower defaults and the amount for yielding.

VerDate Aug 31 2005 02:13 May 09, 2008 Jkt 069060 PO 00000 Frm 00112 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.067 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3301 The gentleman from Massachusetts Mr. FRANK of Massachusetts. If the Mr. FRANK of Massachusetts. Mr. knows the respect I have for his knowl- gentlewoman will yield, I know some- Speaker, I yield the gentlelady from Il- edge of free market economics. He times conspiracy theories rattle linois an additional 30 seconds. often scolds us on this side of the aisle around this place. The reason we put in Ms. BEAN. Contrary to the earlier when our rhetoric doesn’t match our the legislation to protect disabled vet- comments from our colleague in Texas, actions. And he is often justified in erans who had bankruptcy from being I want to specifically acknowledge the doing so. I have heard him quote Adam excluded from this program is to pro- inclusion of my amendment to disallow Smith and Milton Friedman with the tect veterans, disabled veterans who participation in this program to any- best of them. have been in bankruptcy from being in one who had misstated their incomes That is why I was baffled to see this this program. There were people who on their original loan or been convicted bill come to the floor from his com- suggested that the sensitivity people of mortgage fraud. mittee, a bill that violates the same would have in bankruptcy could be a On the whole, this legislation will principles that he has chastened us for problem. Now I will point out, by the help stabilize the housing market and not recognizing. He was right then. way, that thanks to some very good economy while not creating any uncer- And he is inconsistent and wrong amendments by the gentleman from tainty in legal contracts by reducing today. Georgia (Mr. MARSHALL) who has dealt risks to lenders who keep qualified bor- This bill has ‘‘moral hazard’’ written with this problem in a more general rowers in their homes instead of fore- all over it. We know that a party insu- way, and he is a bankruptcy expert— closing. lated from risk behaves differently from the law side not the subject side. Mr. HENSARLING. Mr. Speaker, than a party that is fully exposed to But we thought with disabled veterans, may I inquire how much time is re- risk. The truth is here we are insu- we know this engenders prejudice when maining on each side. lating home buyers and home owners people see in some cases people are dis- The SPEAKER pro tempore. The gen- from risk. And we will simply prolong abled. So it was there for that reason, tleman from Texas has 61⁄2 minutes re- the housing crisis by doing so. to protect people, to make sure that maining. The gentleman from Massa- Let’s be real here. The purpose of we, the Federal Government, would chusetts has 261⁄2 minutes remaining. this legislation is to insulate political not, in any way, be discriminating Mr. HENSARLING. Mr. Speaker, I parties from risk. That is what we are against them and maybe therefore set wish to reserve the balance of my time. doing here. If we felt such a need to in- a good example for everybody else. Mr. FRANK of Massachusetts. Mr. tervene here, we ought to remember Ms. BEAN. Mr. Chairman, there have Speaker, I yield 2 minutes to the gen- what we did last September when I be- been reports suggesting that this provi- tleman from Georgia (Mr. MARSHALL). lieve, if I remember right, we encour- sion could be used as a placeholder for Mr. MARSHALL. Thank you, Mr. aged FHA to give no-money-down a broader expansion of the Federal Chairman. loans. Why is it that we think that we bankruptcy laws. Can you clarify that Mr. Speaker, I had originally planned are so prescient here about what is this language will not be expanded in to talk about something else alto- going to happen? conference to include a broader re- gether, but it’s the nature of the de- We can’t outguess the market. We write of the Nation’s bankruptcy laws bate that causes me to simply say I do shouldn’t try to. We simply will delay or to be used in conference for any view this as a bailout of sorts, but it’s the bottom and delay and increase the other redrafting of language encom- not a bailout for the borrowers, it’s not dislocations that will occur when its passed under title 11 of the U.S. Code a bailout for the lenders. politicians decide to allocate resources other than this specific provision? If you understand the bill, you under- and capital rather than the markets. Mr. FRANK of Massachusetts. If the stand that actually the deals that the Mr. FRANK of Massachusetts. Mr. gentlewoman will yield, absolutely I borrowers get are not particularly Speaker, I yield myself 30 seconds to can guaranty that. I should be clear. I respond to the gentleman from Texas. good. The deals that the lenders get are am cosponsor of the bill that would not particularly good. He says, why isn’t the $2.7 written have provided a bankruptcy avenue for into the bill? It is, in effect, because it This is intended, if it works, as a primary residences. That is a separate bailout generally for all those innocent is subject to appropriation, and no issue as far as I am concerned. No, this money will be spent until that is pro- homeowners and taxpayers who have particular provision will not be a vehi- been dragged into this mess in part, be- vided. The $300 billion is the number of cle for that. mortgages that could be insured, up to cause of our failure to regulate pre- The SPEAKER pro tempore. The viously, in part because of the incom- that. We needed to put that number time of the gentlewoman from Illinois there before CBO could tell us how petence, virtually, the pitiful perform- has expired. ance the of the rating agencies. much it would cost. And written into Mr. FRANK of Massachusetts. I yield As a result, an awful lot of people, this bill before it becomes law and be- the gentlewoman 30 additional seconds. comes operational will be that $2.7 bil- and our economy, are being hurt. I lion figure. That is the way the process b 1515 view, this personally, as a bailout for works. You get a CBO score, and then I guarantee this provision will only the economy, with an incidental effect you pay for it. be what it is. If anybody wants to move of avoiding foreclosures in individual I now yield 2 minutes to the gentle- elsewhere, I might support that. But cases—and that’s nice. It’s nice to help woman from Illinois, a very diligent entirely separate from this, this will people out—but I am not voting for member of our committee. not be a vehicle. this thing because it’s helping individ- Ms. BEAN. Mr. Speaker, I rise to en- In fact, I think it would be dishonor- uals out and happens to help a few gage in a colloquy with the chairman able for anyone. We have had too many lenders out. It’s not a bailout for those of the Committee on Financial Serv- examples of people trying to use vet- folks. In my view it’s a bailout for the ices. erans, and particularly disabled vet- entire economy and all of these people Mr. Chairman, section 505 of title V erans, as a political stick to achieve that have been dragged into it. of this legislation contains language other objectives. I would find that to Mr. HENSARLING. Mr. Speaker, I re- pertaining to the treatment of disabled be an absolutely outrageous procedure, serve the balance of my time. veterans in the bankruptcy code. and I can guarantee you it will not Mr. FRANK of Massachusetts. I yield Every Member of the House supports happen. 3 minutes to the gentleman from Texas ensuring that no disabled veteran is Ms. BEAN. I thank the chairman for (Mr. AL GREEN), a very active member discriminated against for obtaining the clarification. I would also like to of our committee. federally supported housing loans or commend your leadership on producing Mr. AL GREEN of Texas. I thank the subsidies. a balanced bipartisan bill and allowing chairman for the time, and I thank the Mr. Chairman, can you clarify for me me to work with you during the com- chairman for his tireless efforts to why this provision was included in the mittee markup. bring this to the floor. I question this bill, and why we need to protect dis- The SPEAKER pro tempore. The moral hazard argument. abled veterans from discrimination in time of the gentlewoman from Illinois I question it because I have to ask this legislation? has again expired. myself, where was the moral hazard

VerDate Aug 31 2005 03:04 May 09, 2008 Jkt 069060 PO 00000 Frm 00113 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.068 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3302 CONGRESSIONAL RECORD — HOUSE May 8, 2008 when we bailed out Penn Central? Penn California, that housing programs have Mr. FRANK of Massachusetts. Mr. Central got more than laissez faire. not kept pace with the times. Unreal- Speaker, I now yield 2 minutes to the Penn Central got more than market istically low limits for Fannie Mae, chairwoman of the Housing Sub- forces. Penn Central got $7 billion in a Freddie Mac and FHA mean people liv- committee, who makes her second ap- bailout. ing in the high-cost States have not pearance today, having carried through Where was the moral hazard when we fully benefited from these programs. passage of a very important bill earlier bailed out Lockheed Martin, $250 mil- The economic stimulus package, today, the gentlewoman from Cali- lion? Franklin National Bank, $1.7 bil- temporary loan limit increase to fornia (Ms. WATERS). lion bailout. For the good of the coun- $730,000, raising the loan limit, injects Ms. WATERS. I would first like to try, we bailed out Chrysler at the tune liquidity into the mortgage market to thank our chairman, BARNEY FRANK, of $1.5 billion; Continental Illinois, $4.5 provide access to credit and opens new for the leadership that he has provided billion; Farm Credit System, $4.5 bil- opportunities for refinancing. on dealing with a serious problem in lion; First Republic Bank, $1 billion. However, since these increases are America. I would like to thank the Major airlines got $5 billion, the steel only temporary, it is clear that making Members once more for the support companies got $7 billion. them permanent will have beneficial that they gave me on the Neighborhood Where was the argument about Bear effects for the housing market. I intro- Stabilization Act that we passed today. Stearns that was never brought to the duced the Homeowner Opportunity Act That, coupled with what is being done floor? I have heard about a letter that to permanently raise the loan limits, now, will go a long way to providing has been circulated. Why didn’t you and I am pleased that today’s legisla- real assistance to our cities, to our bring the argument to the floor? Let’s tion includes my bill. counties, to our States and to our citi- talk about the Bear facts, the Bear I want to thank Chairman FRANK for zens. Stearns facts. Bear Stearns got $29 bil- all of his support and assistance. This I know that it has been said over and lion in a bailout and a $13 billion loan. change will benefit my constituents over again today that people are suf- So if you really talk about the Bear and the entire country. fering, that there are people who got facts, the Bear Stearns facts, you are Mr. NEUGEBAUER. Mr. Speaker, I into these loans that did not under- talking about $42 billion. We live in a continue to reserve. stand what a no-doc loan, a no interest world where it is not enough for things Mr. FRANK of Massachusetts. Mr. rate loan was, an ARM that was going to be right, they must look right. Speaker, I yield 2 minutes to a very ac- to reset within 6 months, 1 year or 2 It doesn’t look right for this country tive member of the committee, the years, and that the mortgage would to continually bail out major corpora- gentleman from Colorado (Mr. double, triple or quadruple. tions. When the American people, little PERLMUTTER). They are innocent, hardworking people as we sometimes call them Mr. PERLMUTTER. I just want to Americans out there every day who here—they are big in my heart—but thank you and the committee for simply want to live the American the little person needs some help, we bringing a very focused piece of legisla- Dream. Many of them were steered into don’t find it within our hearts and our tion to the House floor. these loans because there was this big, power to help them. Mr. Speaker, to my friends from big housing bubble. We have the ability to make a dif- Texas, who have heard stories that this We had these local initiators of loans ference in the lives of people today. is a bailout, this is no bailout. This is through our banks and our mortgage This is why I am encouraging my col- about Strasbourg, Colorado, where brokers who discovered that they could leagues to vote for this bill. there have been foreclosures around a package them, they could securitize Mr. HENSARLING. Mr. Speaker, I neighborhood, and one person trying to them, they would be invested in Wall continue to reserve. sell their property can no longer do Street, and the Wall Street people in- Mr. FRANK of Massachusetts. Mr. that because the value of their house is vested mightily in them, and now the Speaker, I yield 2 minutes to the gen- less than their mortgage. They are in- services have them all. The only thing tleman who helped put this bill to- nocent. They didn’t deserve this. that the services can do is foreclose on gether, the gentleman from California Secondly in Edgewater, Colorado, these properties. (Mr. MCNERNEY). where the lender, the appraiser and the Well, we can do something about it. I Mr. MCNERNEY. Mr. Speaker, I rep- building owner got into cahoots, and a don’t know why we have to argue and resent Stockton, California, which un- young couple buys a condominium, and fight about whether or not we can help fortunately has the highest foreclosure now the properties around them are the American people. They sent us here rates in the country. Many families in foreclosed. They are going to lose this to look after their best interests. northern California have lost their property. They need assistance. They I don’t understand why anybody can homes and the foreclosures have lead are innocent. They deserve some help call this a bailout when, in fact, no- to personal hardships, community in- from this government. body has said anything about the bail- stability and national economic risk. Same thing in Commerce City, Colo- out of the almost $30 billion for Bear When my constituents asked me rado. I heard all of these stories last Stearns. If we can help Wall Street, we what Congress was doing to fix the night on a telephone town hall meeting certainly can help the people who vote economy, I told them we are pushing to while we were debating the Neighbor- for us every day and who sent us here. create family-wage jobs and put money hood Stabilization Act. That’s what We help people all over this Nation in back in people’s pockets. Today we are this bill is about. It’s about the com- different ways. Some people are con- building on these efforts by considering munity as a whole. fronted with a hurricane, or a flood or legislation that will provide fiscally re- Mr. MARSHALL from Georgia under- an earthquake. American citizens ex- sponsible options for families strug- stands what this bill is about. It’s pect us to be there for the citizens gling to stay in their homes. about looking after our neighborhoods when we are needed in different ways. Last December I hosted a workshop and protecting our neighborhoods and This is a different way. for foreclosures in Stockton with my averting 500,000 foreclosures across this I ask everyone to support the bill. colleague, DENNIS CARDOZA, to provide country. Mr. NEUGEBAUER. Mr. Speaker, it’s housing counseling to local families. Our neighborhoods, our cities, our my honor now to yield 2 minutes to the While we expected the turnout to be towns are going to pay for this if the gentlewoman from Virginia (Mrs. high, participants started lining up 2 Federal Government doesn’t assist in DRAKE), who has an extensive amount hours early and, ultimately, more than some fashion. This is a nationwide of experience in the housing industry 500 people showed up. problem. The Nation has to stand up. and brings great expertise to this proc- I heard heart-breaking stories from We have to deal with this. This bill ess. my constituents, and this is just one does it in so many ways, and I just ap- Mrs. DRAKE. Mr. Speaker, housing is single illustration of why today’s legis- preciated coming to the floor. a very complex issue. We are talking lation is so important. One of the big- Vote ‘‘yes’’ on this bill. about a person’s home, real people with gest challenges facing the housing mar- Mr. NEUGEBAUER. Mr. Speaker, I a real problem. Prior to Congress I was ket is in the high-cost States, like continue to reserve my time. a realtor for over 20 years.

VerDate Aug 31 2005 03:04 May 09, 2008 Jkt 069060 PO 00000 Frm 00114 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.071 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3303 I have worked with many families to at a delinquency twice that of a fixed wards turning around the housing cri- help them realize their dream of home- rate. In short, even before the interest sis and address the issues that have re- ownership. I have served as chairman rates go up, we have so many people sulted in a nationwide economic crisis. of the Virginia Housing Study Commis- who are already in trouble with their Mr. Speaker, I am especially pleased sion. I have seen good markets and bad loans. with title II of the bill which estab- and many changes to the mortgage in- Third, and most importantly, this is lishes a long-needed Office of Housing dustry. I have struggled with how to not just about the homeowner or the Counseling within the Department of define and protect against predatory mortgage lender, this is about all of us. Housing and Urban Development. I lending practices. I have seen interest What we have seen is not just harming commend Chairman FRANK and Rank- rates and loan products that seem too the housing and manufacturing indus- ing Member WATERS for including it in good to be true. tries, it has seeped over into the bond their bill. Unfortunately, we have seen they market for municipal bonds and even I sincerely appreciate the fact that were too good to be true. There are for education to where, because of the community-based organizations with many components of this bill, which I exposure of bond insurers, we cannot expertise in the field of housing coun- think are excellent. Enacting those re- have bonds that are being given in seling will be given a voice in the de- forms now would have a huge impact these categories. So, therefore, I think velopment of such policies. I am on the housing market and be helpful very highly of this bill. pleased that the bill provides for the to American families. I think this bill is done in the right building of capacity to provide housing My concerns with today’s package in- way. It is providing relief to actual, counseling services in areas that lack clude the establishment of a new, af- real people, those living in homes, not sufficient services such as large parts fordable housing fund and a $300 billion speculators. Second, it steps over and of my district in the Rio Grande Valley Federal loan guarantee program. A it doesn’t give any bailout to lenders. and in rural America in general. lender with troubled loans could con- It says you must write down your loans Moreover, I applaud Chairman FRANK tact those homeowners, offer a feder- and you must pay into a reserve fund and Congresswoman WATERS for in- ally backed loan and refinance at a and do closing costs. cluding in the bill the authorization of loss. Most importantly, it has the govern- $3 million for public service announce- But now he has moved that loan from ment reaping the rewards when the ments as part of the act’s national pub- a complete loss to 85 percent current houses inevitably go back up in value. lic service multimedia campaign. This value that will be guaranteed by the I think this is great for the economy. campaign will help persons facing Federal Government. He now has no Mr. Speaker, I would ask one thing mortgage foreclosure, elderly persons, reason to work with that borrower. to consider as we go forward. I am persons who face language barriers, Neighbor A bought at the height of the taken by incentivizing people to come and low-income persons. market. He struggles but pays. Neigh- forward. And as someone on the other I want to take this opportunity to bor B negotiates 85 percent of current side said, incentivizing them even by thank them for increasing the avail- value, a huge impact on the value of being exposed to more risk. The CBO ability, affordability, and quality of surrounding properties. said that out of the 2.8 million fore- housing in rural America. And I believe This is a voluntary program. Can’t closures expected to occur if nothing this bill will do more of the same. we develop incentives for the private happens between now and 2013, about Mr. Speaker, I believe the product sector and not obligate the American 500,000 loans will be refinanced. Chairman FRANK and Congresswoman taxpayers with $300 billion in loan CBO believes that many original and sec- WATERS have brought to the floor will guarantees? There are several things ondary lenders will be reluctant to participate. result in more homeowners remaining that are currently making a difference. This is a problem that must be addressed. in their homes and help stabilize the The FHA Secure loan program, HOPE To be most effective, I believe that there must housing market. I strongly urge my NOW, an alliance to prevent fore- be greater incentives for the original lien hold- colleagues to vote in favor of this bill. closure through outreach to delinquent ers—who take the haircut up front—to have Mr. NEUGEBAUER. Mr. Speaker, borrowers. Fannie Mae is currently the option to share in some portion of potential may I inquire as to the time remain- working on a streamlined short-sale profits on resale. ing. program to allow the sale of properties For those lenders willing to take a bigger The SPEAKER pro tempore. The gen- that are overmortgaged. piece of the risk upfront (beyond the 85 per- tleman from Texas has 41⁄2 minutes re- cent of current market value limit in the bill), maining. The gentleman from Massa- b 1530 there should be added incentive to participate chusetts has 131⁄2 minutes. The fact is, one out of two people in the upside potential. Mr. NEUGEBAUER. Mr. Speaker, I never contact their lender for help. Overall, I support this bill because it ad- continue to reserve. Both the administration and the pri- dresses many of the issues that need to be Mr. FRANK of Massachusetts. Mr. vate sector need to explain what is solved quickly. But I believe that more needs Speaker, I yield 2 minutes to the gen- available. Neither has done a good job. to be done to provide proper incentives to en- tleman from Oregon (Mr. WU). Mr. FRANK of Massachusetts. Mr. sure that lenders, who will play a critical role Mr. WU. Mr. Speaker, last year 1.5 Speaker, I yield 2 minutes to the gen- in the economic and housing recovery, will million American households entered tleman from Pennsylvania (Mr. fully participate, and I am prepared to work foreclosure, and this year the number SESTAK). with the Chairman and House leadership for of American families in danger of los- Mr. SESTAK. Mr. Speaker, much has an appropriate resolution. ing their homes could be as high as 2 been said about how we got into this Mr. NEUGEBAUER. Mr. Speaker, I million. These foreclosures could re- situation, although someone said it continue to reserve. duce overall economic activity by $166 best, I thought: too little oversight, Mr. FRANK of Massachusetts. Mr. billion this year as the effects of the too much greed, too little under- Speaker, I yield 2 minutes to the gen- mortgage crisis spill over into other standing. tleman from Texas (Mr. HINOJOSA). sectors of the economy. But there are several things we do Mr. HINOJOSA. Mr. Speaker, I rise In my State of Oregon, the fore- understand. There is no single cause today in strong support of the under- closure rate among subprime borrowers for why we got into this housing crisis, lying bill, H.R. 3221, the American increased by 28 percent in the fourth so there is no single solution. Housing Rescue and Foreclosure Pre- quarter of 2007. Over 5,000 Oregon fami- But second, we must act now. This vention Act of 2008, and in particular lies are currently in foreclosure, more March, there was a 57 percent increase H.R. 5830, the FHA Housing Stabiliza- than half of whom hold subprime mort- in the number of defaults than the pre- tion and Homeownership Retention Act gages. vious March a year ago. And of all of of 2008, which is part of this housing But this debate is not about facts and the adjustable rate mortgages that will rescue package. statistics. If it were, it would be over be reset this year to a higher interest I am proud to be a cosponsor of H.R. by now. By requiring that the holders rate, 80 percent are the subprime cat- 5830. I believe that it is a well-balanced of debt take a haircut down to 85 per- egory. Those subprime categories are measure that will go a long way to- cent of current market value, we are

VerDate Aug 31 2005 03:04 May 09, 2008 Jkt 069060 PO 00000 Frm 00115 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.073 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3304 CONGRESSIONAL RECORD — HOUSE May 8, 2008 sharing the pain. By requiring that said they felt like this bill was not If you are going to help homeowners, people who are working in order to be really about rescuing homeowners, you have to write-down the balance of eligible for this program are paying at they felt like it was another attempt the loan. And people come to this floor least 35 percent of their income in at wealth redistribution. They felt that and they say well, we can’t do it the order to be eligible, we are exercising the risk and the costs that are borne voluntary way, and we can’t do it the responsibility. and should be borne by irresponsible involuntary way; but just as soon as we What this debate is really about is a lenders, investors, and borrowers are find some other way, they will be matter of values. The values being ex- going to end up being transferred to happy to bail out homeowners. pounded on the other side of this de- the Federal Government and thereby The fact is they have voted against bate are absolutely astounding, and to the American taxpayer once again. using the bankruptcy court to write- nothing illustrates it better than a And this time, it is to the tune of $300 down the principal amount and not movie I love, ‘‘It’s a Wonderful Life.’’ billion. give the lenders anything. And now George Bailey was the hero of that What the bill does is the good actors, they are saying when we make a fair movie, and he was dealing with a hard- the 92 percent of all mortgage holders offer to the lenders to do the same hearted old man named Mr. Potter. Mr. who are paying their mortgage on thing, we are bailing out the lenders. Potter said to George Bailey as he was time, they are going to end up being I have a lot of ‘‘respect’’ for anybody trying to save American households, liable for the irresponsible actions of who can come to this floor and just say ‘‘Have you put any real pressure on lenders and speculators. The way my they don’t want to help these home- these people to pay their mortgages?’’ constituencies see it, this is a risky owners at all. That’s an honest posi- And George Bailey relied, ‘‘Times are business. This Congress should not tion. But to say you are against the bad, Mr. Potter. A lot of these people send a message that it is acceptable to voluntary and involuntary, that’s are out of work.’’ give up on an obligation because you’re wrong. ‘‘Then foreclose.’’ going to have a government buyout or Mr. FRANK of Massachusetts. I have George Bailey answers, ‘‘I can’t do a bailout and you are going to be able one request for a unanimous consent, that. These families have children.’’ to cut your personal losses. and then I’m going to close, so I would ‘‘Not my children,’’ said Mr. Potter. Last week I did a seminar in my dis- yield to the gentlewoman from New Well, what we hear from the other trict. I worked with some government York for a UC. side is: not my children, these folks are and private sector initiatives such as (Mrs. MALONEY of New York asked irresponsible, throw them out. Hope Now, working to help home- and was given permission to revise and We clearly have the upper hand in owners weather the storm, to get the extend her remarks.) this debate. information to them that they needed. Mrs. MALONEY of New York. I Mr. NEUGEBAUER. Mr. Speaker, I Mr. Speaker, that is what we should thank the gentleman for yielding to me continue to reserve. be doing, educating homeowners on the and for his extraordinary leadership on Mr. FRANK of Massachusetts. Mr. options at their disposal, as opposed to this extremely important housing Speaker, I yield 1 minute to the gentle- passing measures that reward reckless- stimulus package. It is good for the woman from California (Ms. LEE). ness and provide a safety net for irre- country and good for my constituents Ms. LEE. Mr. Speaker, let me thank sponsibility. Congress does not need to in New York City. I strongly support Chairman FRANK and Chairwoman WA- bail out the housing market, it needs it. TERS for bringing this badly needed leg- to encourage a kick start. I hope that Mr. Speaker, I rise in strong support for this islation to the floor today. Millions of my colleagues will join me and that to- Housing Stimulus Package. families in America are seeing their gether we will vote this bill down. It is good for our country and it is good for dream of homeownership turning into a Mr. FRANK of Massachusetts. I yield my constituents in New York. nightmare. Foreclosure rates have 2 minutes to another very active mem- We all know we are facing a housing crisis. reached crisis levels. In California and ber of our committee who has been Foreclosures are at record highs, wages are in many parts of my district, too many very active on the loan issue, the gen- stagnant and the markets continue to be vola- families are facing devastation, and en- tleman from California (Mr. SHERMAN). tile. tire neighborhoods are on the brink of Mr. SHERMAN. Mr. Speaker, the This housing package will help restore order collapse. facts are these: Homeowners have and provide the roadmap forward. Homeownership has been the primary signed mortgages where they can’t af- In addition to the $300 billion voluntary pro- means that most Americans have to ford to make the payments, especially gram that would permit FHA to provide up to accumulate any kind of wealth, to send as they are adjusted upwards. We need $300 billion in new guarantees to help refi- their kids to college, to start a small to write-down the principal amount to nance at-risk borrowers into viable mortgages, business, or to do whatever they want something that these good homeowners we are doing a number of things to help the to do to be part of the American can afford. But we are told ‘‘don’t bail mortgage market. dream. out the lenders.’’ We are making permanent the current FHA I want to thank Chairman FRANK for There are two ways to write-down and GSE loan limits we passed as part of our including language in this legislation the principal amount of a loan: an in- first stimulus package. which I introduced with Senator voluntary way through the bankruptcy Without this limit, the FHA limit in New York MCCASKILL to address the Reverse court, and we had a bill before this City would drop from $729,750 to $362,000 Mortgage Proceeds Protection Act House which authorized the bank- and the Fannie Mae/Freddie Mac limit would which protects seniors from losing ruptcy court in very limited cir- drop from $729,000 to $417,000. their homes. cumstances, very tailored, to write- This bill modernizes the reverse mortgage We are beginning to see some of the down the balance of the loan. Don’t provision administered by FHA, allowing co- same abuses in the advertising and bail out the lender, just tell the lender ops to be included for the first time. high-pressure sales of reverse mort- they have to take less. That bill is not We are preserving affordable FHA-insured gages as we saw in the subprime mort- going to pass. It is opposed by Repub- foreclosed multifamily projects. Including lan- gage crisis. These provisions will en- licans in the Senate. guage important to New York City. sure that vulnerable seniors are fully The second way is a voluntary way. This bill includes an amendment I offered informed of hidden costs and pitfalls of You make a fair offer to the lender that will provide for higher loan limits on reverse mortgages before they sign. that, if they will write-down the prin- homes that include a licensed child care facil- Mr. NEUGEBAUER. Mr. Speaker, it cipal amount, then they will get a ity. is my honor to introduce the gentle- guarantee of that lesser amount from This bill is needed. It helps our communities woman from Tennessee (Mrs. the government—so at least they will and I urge its adoption. BLACKBURN) who is also on the Com- get paid something. Now we are told to Mr. FRANK of Massachusetts. I in- mittee on Financial Services, and I vote against this bill because it bails tend to close with our remaining time yield 2 minutes to her. out lenders. as our last speaker. Mrs. BLACKBURN. Mr. Speaker, I Some are giving hypocrisy a bad Mr. NEUGEBAUER. Mr. Speaker, I heard from one of my constituents who name. rise in strong opposition to this bill. I

VerDate Aug 31 2005 04:36 May 09, 2008 Jkt 069060 PO 00000 Frm 00116 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.075 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3305

think we have had a good discussion from Massachusetts has 81⁄2 minutes re- market failure. Clearly there has been here today. Unfortunately, it was a dis- maining. market failure with regard to mort- cussion only and there was not oppor- Mr. FRANK of Massachusetts. Mr. gages. The market failure was the tunity for our side, or really any other Speaker, I understand the complaints breaking of the lender-borrower rela- Members to participate in this process about the process. Remember, though, tionship and the substitution of of offering amendments that could that several of the bills being reen- securitization without appropriate have most likely made this a better acted today have already been fully de- countervailing incentives. piece of legislation. bated and amended on the floor. There This bill today is no ongoing inter- There are several reasons I oppose is one that was not subject to the nor- vention in the market. It is time lim- this bill. Number one is the flawed mal—and I’m a general defender of the ited, and limited in specifics to a sub- process. In my tenure in Congress, I normal—process. It’s the FHA rescue set of mortgages. It seeks to undo, to have never had a major piece of legisla- bill. some extent, to mitigate a market fail- tion like this where I am not even And I will say, in this case, I think it ure. It will leave the market, I believe, going to get an opportunity to cast my is fair to ask Members to vote for it up stronger going forward. vote. I know people who are watching or down. It is a very interrelated piece So I accept the gentleman from Ari- this process are wondering, you mean of legislation. It tries to balance cost zona’s reminding me that I should stay we have been talking all day about this and incentive. It would be easy to put true to free market principles. This bill important piece of legislation that the it out of whack. And in this one case I is true to free market principles. other side says is very important to think it is fair to say you can vote it And let me quote one of the leading the American people, yet their Member up or you can vote it down. Members advocates of free market principles in of Congress is not going to get a vote will have a chance to vote on it. While the English-speaking world, the Econo- on this process. It is a flawed process. it’s in the form of an amendment, if mist, called to my attention by the We brought an energy bill over, that amendment is defeated, it dies. staff of the Financial Services Com- stripped all of the energy provisions I also want to address the issue of the mittee, which has done enormously out of it, and we are putting housing amendment offered by the gentleman good work in substantively putting into an energy bill. I still don’t under- from North Carolina and the gen- this bill together, and in listening to stand the mechanics of that, and tleman from Ohio regarding preemp- me talk about it in various ways. And maybe someone later on can explain tion, because there may be some confu- I appreciate both aspects of that. that to me. sion. Here’s what the Economist said: This is also about not saddling the I personally spoke, today, with rep- ‘‘The plan is hardly a bailout,’’ talking American people who are already resentatives of the banking organiza- about this bill. This is a current Econo- struggling to make their own house tions, the American Bankers Associa- mist. ‘‘Lenders would have to write payments, to make their own rental tion, the Independent Community down their loans to 85 percent of the payments, to pay the highest gasoline Bankers, and the Mortgage Bankers. current value of a house.’’ By the way, prices in the history of this country, They took the position that if we were under FHA Security Administration’s and the highest electricity costs and able to adopt the language offered by plan, they can get a 100 percent loan natural gas costs, it is about saddling the gentleman from Ohio, they would put in. They can get somebody who’s them now with the payments for their find this a bill that they would accept defaulted and get them a 100 percent neighbor. and would not seek to defeat. loan. We require an 85 percent What the 110 million people who are Because of an objection, we weren’t writedown to the value. doing the best they can and want the able to do this, so technically, yes, ‘‘Borrowers would pay a fee for the United States Congress to do is to they had previously said they were op- insurance and give up a share of any leave them alone and really start ad- posed to it in that form. They have later price rise to the government.’’ By dressing the major issues that are im- also said, after we outlined the proce- the way, they would also be barred for portant to the American people. dure that was followed by the gen- 5 years from taking out a second mort- b 1545 tleman from Ohio (Mr. LATOURETTE), gage. So the borrowers under this, if It’s about not rewarding bad behav- the gentleman from North Carolina there was an increase in equity, would ior. We have some lenders, and we have (Mr. MILLER) and myself, that it is now have to share much of it with the Gov- some borrowers that went out and bet acceptable; that is, while we were ernment, and the earlier in the process that the housing market was going to blocked by an objection from adopting in which they sold out, the more the go up. It didn’t go up, and, in fact, un- the actual language, the language that Government would get. That’s not the fortunately, in some places, it went was agreed to by them, by the Attor- bailout that people have described. down. And now people are faced with a neys General, by the State bank super- People worry about moral hazard. I negative equity or a smaller equity in visors, by advocacy groups, will be the would assure people, no borrower who their home. And we are sympathetic to language that’s in the bill. So let there goes through this process will say at that. be no doubt about that. There is no the end of it, ‘‘Boy, that was fun. As I said earlier, I’ve been in the real substantive objection to what will hap- Where do I buy a ticket to get back on estate business for a very long time. pen. Space Mountain?’’ They will be de- I’ve seen the markets go up. I’ve seen Now, let me talk about the bill. I terred. the markets go down. And sometimes guess I want to, not damn my bill But we’re not relying solely on this. it causes a situation where people don’t today with faint praise, but support it. Two-thirds plus of this House, many of have as much equity. It comes from the economists. my Republican colleagues didn’t do it, But what you have to understand is a Now, the gentleman from Arizona but many of my Republican colleagues lot of people went into this process (Mr. FLAKE), for whom I have a great did. We voted for a bill to regulate with no equity. And now this bill says, deal of respect, a man of very high in- subprime mortgages going forward. you know what? We’ve got a deal for tellectual integrity, he chided me be- We’re not simply relying on people’s you, because now we’re going to help cause I have taken a free market posi- bad experience. We have put some re- create equity in your house by putting tion, but not here. And I’ll respond this strictions on that. your neighbors at risk. way. I believe this is pro-market. The mar- This is a bad bill. I encourage Mem- I have opposed systemic interven- kets now are in trouble because a lot of bers to vote against this bill. I’m sorry. tions in the market. I think it is gen- people who were very smart bought We can’t vote against it. Vote against erally unwise for us to enact legisla- things they shouldn’t have bought, in- the amendments. tion which, in an ongoing way, dis- cluding subprime mortgages. And hav- Mr. FRANK of Massachusetts. How places the market. But that’s not what ing bought things they shouldn’t have much time is there remaining, Mr. we do here. There is a part of the re- bought, they now don’t want to buy Speaker? ality of the market that is called mar- things they should buy. The SPEAKER pro tempore (Mr. ket failure. People have won Nobel We all know the little story about JACKSON of Illinois). The gentleman Prizes, Joe Stiglitz, for work about the child who touches the hot stove,

VerDate Aug 31 2005 03:04 May 09, 2008 Jkt 069060 PO 00000 Frm 00117 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.078 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3306 CONGRESSIONAL RECORD — HOUSE May 8, 2008 and having touched a hot stove and foreseeing the depth of the drop in Kucinich Nadler Sires LaHood Napolitano Skelton being burned, won’t go near the stove. house prices. So Hope Now has been Lampson Neal (MA) Slaughter We have investors today who, having overtaken by events. Langevin Oberstar Smith (NJ) touched the hot stove, are staying We here are responding to reality in Larson (CT) Obey Smith (WA) away from the refrigerator, the sink a way that is pro-market and mini- LaTourette Olver Snyder Lee Ortiz Solis and the shower because they have been mizes the outlay. I hope the bill is Levin Pallone Souder so badly burned. passed. Lewis (GA) Pascrell Space If we do not adopt appropriate re- The SPEAKER pro tempore. All time Lipinski Pastor Speier sponses to this market failure, we will for debate has expired. Loebsack Payne Spratt Lofgren, Zoe Perlmutter Stark not cure it, and the lag in investments Pursuant to House Resolution 1175, Lowey Peterson (MN) Stupak will continue. the previous question is ordered. Lynch Pomeroy Sutton We are working through the market The question of adoption of the mo- Mahoney (FL) Porter Tauscher here. It is voluntary that a lender says Maloney (NY) Price (NC) Taylor tion is divided among the three House Markey Pryce (OH) Thompson (CA) we’re going to cut it down. People say, amendments. Marshall Rahall Thompson (MS) well, they’ll dump all their bad loans. The first portion of the divided ques- Matheson Ramstad Tierney Have the Republicans who say that, be- tion is: Will the House concur in the Matsui Rangel Towns McCarthy (NY) Reichert Tsongas cause many Republicans are with us, so amendment of the Senate with House McCollum (MN) Rodriguez Turner little confidence in the FHA? amendment No. 1 printed in House Re- McCotter Rogers (MI) Udall (CO) Nothing in this bill coerces the FHA port 110–622? McDermott Ros-Lehtinen Udall (NM) to accept a single loan that it finds un- McGovern Ross Upton The question was taken; and the McHugh Rothman Van Hollen likely to be repaid. And CBO accepts Speaker pro tempore announced that McIntyre Roybal-Allard Vela´ zquez that, because they say of 500,000 loans the ayes appeared to have it. McNerney Ruppersberger Visclosky that they expect to be accepted, the Mr. NEUGEBAUER. Mr. Speaker, on McNulty Ryan (OH) Walsh (NY) Meek (FL) Salazar Walz (MN) failure rate will be, average out to that I demand the yeas and nays. Meeks (NY) Sa´ nchez, Linda Wasserman $4,800 per loan. Do you really think if The yeas and nays were ordered. Melancon T. Schultz the loan failed it would only cost us The SPEAKER pro tempore. Pursu- Michaud Sanchez, Loretta Waters $4,800? Miller (NC) Sarbanes Watson ant to clause 8 and clause 9 of rule XX, Miller, Gary Schakowsky Watt That figure, that $2.4 billion is CBO this 15-minute vote on concurring in Miller, George Schiff Waxman saying that there won’t be many fail- the Senate amendment with amend- Mitchell Schwartz Weiner ures because of the criteria that are in ment No. 1 will be followed by 5-minute Mollohan Scott (GA) Welch (VT) this bill. Moore (KS) Scott (VA) Wexler votes on concurring in the Senate Moore (WI) Serrano Wilson (OH) And people have said, what about the amendment with amendment No. 2, Moran (VA) Sestak Woolsey people who paid their mortgages? Well, concurring in the Senate amendment Murphy (CT) Shays Wu if they live in a neighborhood where Murphy, Patrick Shea-Porter Wynn with amendment No. 3, adopting the Murphy, Tim Sherman Yarmuth there is foreclosure, they’re getting motion to instruct offered by Mr. Murtha Shuler Young (FL) hurt. If they live in a city where the FLAKE, and adopting the motion to in- property tax revenues are going down, struct offered by Mr. CANTOR. NAYS—154 they’re getting hurt. And if they live in The vote was taken by electronic de- Akin Fossella Neugebauer America, they are in the midst of a re- vice, and there were—yeas 266, nays Alexander Foxx Nunes cession in which we are losing jobs Bachmann Franks (AZ) Paul 154, not voting 13, as follows: Bachus Frelinghuysen Pearce when we should be gaining them, in [Roll No. 301] Barrett (SC) Gallegly Pence which real wages have been pulled Bartlett (MD) Garrett (NJ) Peterson (PA) YEAS—266 down, and the single biggest cause of Barton (TX) Gingrey Petri this recession is the subprime crisis Abercrombie Conyers Graves Biggert Gohmert Pickering Ackerman Cooper Green, Al Bilbray Goode Pitts and its reverberations. Allen Costa Green, Gene Bilirakis Goodlatte Platts This is a rare case of a micro- Altmire Costello Grijalva Bishop (UT) Granger Poe economic factor causing a macro- Andrews Courtney Hall (NY) Blackburn Hastings (WA) Price (GA) Arcuri Cramer Hall (TX) Blunt Hensarling Putnam economic problem. And the market got Baca Crowley Hare Boehner Herger Radanovich us into this. And we don’t say junk the Baird Cuellar Harman Bonner Hobson Regula market. And I know people who have Baldwin Cummings Hastings (FL) Bono Mack Hoekstra Rehberg said, oh, the market’s way too smart. Barrow Davis (AL) Hayes Boozman Hulshof Rogers (AL) Bean Davis (CA) Heller Boustany Hunter Rogers (KY) And people have said to me, you know, Becerra Davis (IL) Herseth Sandlin Brady (TX) Inglis (SC) Rohrabacher some smart people don’t agree with Berkley Davis, Lincoln Higgins Broun (GA) Issa Roskam this proposal. Well, I agree with that. Berman DeFazio Hill Brown (SC) Johnson (IL) Royce Berry DeGette Hinchey Burgess Johnson, Sam Ryan (WI) But I also have to note that no dumb Bishop (GA) Delahunt Hinojosa Burton (IN) Jordan Sali people got America into this problem. Bishop (NY) DeLauro Hirono Buyer King (IA) Saxton You had to be really smart to under- Blumenauer Dent Hodes Calvert Kingston Scalise stand collateralized debt obligation de- Boren Diaz-Balart, L. Holden Camp (MI) Kline (MN) Schmidt Boswell Diaz-Balart, M. Holt Cannon Kuhl (NY) Sensenbrenner rivatives. And the problem is that we Boucher Dicks Honda Cantor Lamborn Sessions need to restrain some of their instincts Boyd (FL) Dingell Hooley Carter Latham Shadegg and let the market function again. And Boyda (KS) Doggett Hoyer Chabot Latta Shimkus Brady (PA) Donnelly Inslee Coble Lewis (CA) Shuster it simply will not happen if you simply Braley (IA) Doyle Israel Cole (OK) Lewis (KY) Simpson let it go. Brown, Corrine Edwards Jackson (IL) Conaway Linder Smith (NE) Here’s what we say. And, by the way, Brown-Waite, Ehlers Jackson-Lee Crenshaw LoBiondo Smith (TX) I supported Hope Now when it came Ginny Ellison (TX) Cubin Lucas Stearns Buchanan Ellsworth Jefferson Culberson Lungren, Daniel Sullivan out. But Hope Now had a flaw. It was Butterfield Emanuel Johnson (GA) Davis (KY) E. Terry based on the notion—Members don’t Capito Engel Johnson, E. B. Davis, David Mack Thornberry even pay attention to this—it was Capps English (PA) Jones (NC) Davis, Tom Manzullo Tiahrt based on the notion that the problem Capuano Eshoo Jones (OH) Deal (GA) Marchant Tiberi Cardoza Etheridge Kagen Doolittle McCarthy (CA) Walberg was when the mortgage reset to a high- Carnahan Farr Kanjorski Drake McCaul (TX) Walden (OR) er rate under adjustable rate mort- Carney Fattah Kaptur Dreier McCrery Wamp gages, that would be the problem. That Carson Filner Keller Duncan McHenry Weldon (FL) Castle Foster Kennedy Emerson McKeon Weller hasn’t been the problem. Castor Frank (MA) Kildee Everett McMorris Westmoreland The problem has been people who owe Cazayoux Gerlach Kilpatrick Fallin Rodgers Whitfield (KY) more than the loan is worth. Some of Chandler Giffords Kind Feeney Mica Wilson (NM) them were irresponsible in the first Clarke Gilchrest King (NY) Ferguson Miller (FL) Wilson (SC) Clay Gillibrand Kirk Flake Miller (MI) Wittman (VA) place. Some of them made the mistake Cleaver Gonzalez Klein (FL) Forbes Moran (KS) Wolf that almost everybody else made of not Clyburn Gordon Knollenberg Fortenberry Myrick Young (AK)

VerDate Aug 31 2005 03:04 May 09, 2008 Jkt 069060 PO 00000 Frm 00118 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.080 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3307 NOT VOTING—13 Honda Meeks (NY) Shea-Porter NOT VOTING—17 Hooley Melancon Sherman Aderholt Musgrave Rush Aderholt McMorris Reynolds Hoyer Michaud Shimkus Campbell (CA) Renzi Tancredo Campbell (CA) Rodgers Richardson Hulshof Miller (MI) Shuler Cohen Reyes Tanner Cannon Moore (WI) Rush Hunter Miller (NC) Shuster Gutierrez Reynolds Cohen Musgrave Tancredo Inslee Miller, Gary Larsen (WA) Richardson Simpson Gutierrez Nunes Tanner Israel Miller, George Sires Larsen (WA) Renzi Walden (OR) ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Jackson (IL) Mitchell Skelton The SPEAKER pro tempore (during Jackson-Lee Mollohan Slaughter ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE (TX) Moore (KS) Smith (NJ) The SPEAKER pro tempore (during the vote). Let me advise Members that Jefferson Moran (KS) Smith (WA) there are approximately 2 minutes re- Johnson (GA) Moran (VA) Snyder the vote). There are 2 minutes remain- maining in this vote. Johnson, E. B. Murphy (CT) Solis ing in this vote. Johnson, Sam Murphy, Patrick Souder Jones (NC) Murphy, Tim b 1619 Space Jones (OH) Murtha Speier b 1627 Messrs. TURNER, WALSH of New Kagen Nadler Spratt Mr. SHAYS changed his vote from York and HALL of Texas changed their Kanjorski Napolitano Stark Kaptur Neal (MA) Stupak ‘‘no’’ to ‘‘aye.’’ vote from ‘‘nay’’ to ‘‘yea.’’ Keller Oberstar Sutton So the second portion of the divided So the first portion of the divided Kennedy Obey Tauscher question was adopted. question was adopted. Kildee Olver Taylor Kilpatrick Ortiz The result of the vote was announced Terry The result of the vote was announced Kind Pallone Thompson (CA) as above recorded. King (NY) Pascrell as above recorded. Thompson (MS) A motion to reconsider was laid on Kingston Pastor A motion to reconsider was laid on Tiahrt Klein (FL) Payne the table. Tierney the table. Knollenberg Perlmutter The SPEAKER pro tempore. The Towns The SPEAKER pro tempore. The Kucinich Peterson (MN) Tsongas Chair will now put the question on the LaHood Peterson (PA) Chair will now put the question on the Turner third portion of the divided question. Lampson Petri second portion of the divided question. Udall (CO) Langevin Pickering The question is: Will the House con- Udall (NM) The question is: Will the House con- Larson (CT) Platts cur in the amendment of the Senate Upton cur in the amendment of the Senate Latham Pomeroy with House amendment No. 3 printed in LaTourette Porter Van Hollen with House amendment No. 2 printed in ´ Lee Price (NC) Velazquez House Report 110–622? House Report 110–622? Levin Rahall Visclosky The question was taken; and the The question was taken; and the Lewis (CA) Ramstad Walberg Speaker pro tempore announced that Lewis (GA) Rangel Walsh (NY) Speaker pro tempore announced that Walz (MN) the ayes appeared to have it. the ayes appeared to have it. Lewis (KY) Regula Linder Rehberg Wamp RECORDED VOTE RECORDED VOTE Lipinski Reichert Wasserman Schultz Mr. PRICE of Georgia. Mr. Speaker, I Mr. RANGEL. Mr. Speaker, I demand LoBiondo Reyes Loebsack Rodriguez Waters demand a recorded vote. a recorded vote. Lofgren, Zoe Rogers (MI) Watson A recorded vote was ordered. A recorded vote was ordered. Lowey Ros-Lehtinen Watt The SPEAKER pro tempore. This The SPEAKER pro tempore. This is a Lynch Roskam Waxman Weiner will be a 5-minute vote. 5-minute vote. Mahoney (FL) Ross Maloney (NY) Rothman Welch (VT) The vote was taken by electronic de- The vote was taken by electronic de- Markey Roybal-Allard Weldon (FL) vice, and there were—ayes 256, noes 160, vice, and there were—ayes 322, noes 94, Marshall Ruppersberger Weller not voting 17, as follows: not voting 17, as follows: Matheson Ryan (OH) Westmoreland Matsui Salazar Wexler [Roll No. 303] [Roll No. 302] McCarthy (CA) Sa´ nchez, Linda Whitfield (KY) AYES—256 AYES—322 McCarthy (NY) T. Wilson (NM) McCollum (MN) Sanchez, Loretta Wilson (OH) Abercrombie Cooper Green, Gene Abercrombie Carson Ellsworth McCotter Sarbanes Wilson (SC) Ackerman Costa Grijalva Ackerman Castle Emanuel McDermott Schakowsky Wittman (VA) Allen Costello Hall (NY) Allen Castor Emerson McGovern Schiff Wolf Andrews Courtney Hare Altmire Cazayoux Engel McHugh Schwartz Woolsey Arcuri Cramer Harman Andrews Chabot English (PA) McIntyre Scott (GA) Wu Baca Crowley Hastings (FL) Arcuri Chandler Eshoo McKeon Scott (VA) Wynn Baird Cuellar Hayes Baca Clarke Etheridge McNerney Serrano Yarmuth Baldwin Cummings Herseth Sandlin Baird Clay Farr McNulty Sestak Young (AK) Barrow Davis (AL) Higgins Baldwin Cleaver Fattah Meek (FL) Shays Young (FL) Bartlett (MD) Davis (CA) Hill Barrow Clyburn Filner Bean Davis (IL) Hinchey Barton (TX) Conyers Forbes NOES—94 Becerra Davis, Lincoln Hinojosa Bean Cooper Fortenberry Berkley DeFazio Hirono Becerra Costa Fossella Akin Flake Mica Berman DeGette Hodes Berkley Costello Foster Alexander Foxx Miller (FL) Berry Delahunt Holden Berman Courtney Frank (MA) Bachmann Franks (AZ) Myrick Bishop (GA) DeLauro Holt Berry Cramer Gerlach Bachus Frelinghuysen Neugebauer Bishop (NY) Dent Honda Bilbray Crowley Giffords Barrett (SC) Gallegly Paul Bishop (UT) Dicks Hooley Bilirakis Cuellar Gilchrest Bartlett (MD) Garrett (NJ) Pearce Blumenauer Dingell Hoyer Bishop (GA) Cummings Gillibrand Biggert Gingrey Pence Boren Doggett Inslee Bishop (NY) Davis (AL) Gonzalez Bishop (UT) Gohmert Pitts Boswell Donnelly Israel Blumenauer Davis (CA) Goode Blackburn Granger Poe Boucher Doolittle Jackson (IL) Bono Mack Davis (IL) Goodlatte Blunt Hastings (WA) Price (GA) Boyd (FL) Doyle Jackson-Lee Boozman Davis, David Boehner Hensarling Boyda (KS) Edwards Gordon Pryce (OH) (TX) Boren Davis, Lincoln Graves Bonner Herger Brady (PA) Ehlers Jefferson Putnam Boswell Davis, Tom Green, Al Boustany Hobson Braley (IA) Ellison Johnson (GA) Radanovich Boucher Deal (GA) Green, Gene Brady (TX) Inglis (SC) Brown, Corrine Ellsworth Johnson (IL) Rogers (AL) Boyd (FL) DeFazio Grijalva Broun (GA) Issa Brown-Waite, Emanuel Johnson, E. B. Rogers (KY) Boyda (KS) DeGette Hall (NY) Brown (SC) Johnson (IL) Ginny Engel Jones (OH) Rohrabacher Brady (PA) Delahunt Hall (TX) Buyer Jordan Butterfield Eshoo Kagen Braley (IA) DeLauro Hare Calvert King (IA) Royce Capps Etheridge Kanjorski Brown, Corrine Dent Harman Cantor Kirk Ryan (WI) Capuano Fallin Kaptur Brown-Waite, Diaz-Balart, L. Hastings (FL) Carter Kline (MN) Sali Cardoza Farr Kennedy Ginny Diaz-Balart, M. Hayes Coble Kuhl (NY) Saxton Carnahan Fattah Kildee Buchanan Dicks Heller Cole (OK) Lamborn Scalise Carney Filner Kilpatrick Burgess Dingell Herseth Sandlin Conaway Latta Schmidt Carson Fortenberry Kind Burton (IN) Doggett Higgins Crenshaw Lucas Sensenbrenner Castle Foster King (NY) Butterfield Donnelly Hill Cubin Lungren, Daniel Sessions Castor Frank (MA) Klein (FL) Camp (MI) Doyle Hinchey Culberson E. Shadegg Cazayoux Gerlach Kucinich Capito Drake Hinojosa Davis (KY) Mack Smith (NE) Chandler Giffords Lampson Capps Dreier Hirono Doolittle Manzullo Smith (TX) Clarke Gilchrest Langevin Capuano Duncan Hodes Everett Marchant Stearns Clay Gillibrand Larson (CT) Cardoza Edwards Hoekstra Fallin McCaul (TX) Sullivan Cleaver Gonzalez LaTourette Carnahan Ehlers Holden Feeney McCrery Thornberry Cole (OK) Gordon Lee Carney Ellison Holt Ferguson McHenry Tiberi Conyers Green, Al Levin

VerDate Aug 31 2005 03:04 May 09, 2008 Jkt 069060 PO 00000 Frm 00119 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.058 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3308 CONGRESSIONAL RECORD — HOUSE May 8, 2008 Lewis (GA) Obey Skelton NOT VOTING—17 Weller Wilson (SC) Wynn Lipinski Olver Slaughter Westmoreland Wittman (VA) Young (AK) Aderholt Larsen (WA) Rush LoBiondo Ortiz Smith (NJ) Wilson (NM) Wolf Young (FL) Campbell (CA) Musgrave Tancredo Loebsack Pallone Smith (WA) Cannon Nunes Tanner Lofgren, Zoe Pascrell Snyder NAYS—274 Clyburn Renzi Walden (OR) Lowey Pastor Solis Cohen Reynolds Waters Abercrombie Gonzalez Murphy, Tim Lucas Paul Space Gutierrez Richardson Lynch Payne Allen Goode Murtha Speier Altmire Goodlatte Nadler Mahoney (FL) Perlmutter ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Spratt Andrews Gordon Napolitano Maloney (NY) Peterson (MN) Stark The SPEAKER pro tempore (during Arcuri Granger Neal (MA) Markey Peterson (PA) Stupak Baca Graves Neugebauer Marshall Platts the vote). Members are advised there is Sutton Baldwin Green, Al Oberstar Matheson Pomeroy 1 minute remaining in this vote. Tauscher Barrett (SC) Green, Gene Olver Matsui Porter Taylor Barrow Grijalva Ortiz McCarthy (NY) Price (NC) Thompson (CA) b 1633 Becerra Hall (NY) Pallone McCollum (MN) Rahall Thompson (MS) Berkley Hall (TX) Pascrell McDermott Rangel So the third portion of the divided Tierney Berman Hare Pastor McGovern Reyes question is adopted. Towns Berry Hastings (FL) Pearce McHugh Rodriguez Tsongas The result of the vote was announced Bilirakis Hayes Perlmutter McIntyre Ros-Lehtinen Turner as above recorded. Bishop (GA) Heller Peterson (MN) McNerney Ross Udall (CO) Bishop (NY) Herseth Sandlin Peterson (PA) McNulty Rothman A motion to reconsider was laid on Udall (NM) Bishop (UT) Higgins Pickering Meek (FL) Roybal-Allard the table. Upton Bonner Hill Platts Meeks (NY) Ruppersberger The SPEAKER pro tempore. Pursu- Bono Mack Hinchey Poe Melancon Ryan (OH) Van Hollen Vela´ zquez ant to section 2 of House Resolution Boozman Hinojosa Pomeroy Michaud Salazar Boren Hirono Porter Miller (MI) Sa´ nchez, Linda Visclosky 1175, the motion that the House concur Walsh (NY) Boswell Hodes Price (NC) Miller (NC) T. in the Senate amendment to the title Boucher Holden Putnam Walz (MN) Miller, George Sanchez, Loretta is adopted. Boyd (FL) Honda Rahall Wasserman Mitchell Sarbanes Boyda (KS) Hooley Rangel Schultz Mollohan Schakowsky f Brady (PA) Hoyer Regula Watson Moore (KS) Schiff Brown, Corrine Hulshof Rehberg Watt Moore (WI) Schwartz MOTION TO INSTRUCT CONFEREES Brown-Waite, Inslee Reyes Waxman Moran (VA) Scott (GA) ON H.R. 2419, FOOD AND ENERGY Ginny Israel Rodriguez Murphy (CT) Scott (VA) Weiner SECURITY ACT OF 2007 Buchanan Jackson (IL) Rogers (AL) Murphy, Patrick Serrano Welch (VT) Burton (IN) Jackson-Lee Ros-Lehtinen Murphy, Tim Sestak Wexler The SPEAKER pro tempore. The un- Butterfield (TX) Ross Murtha Shays Wilson (OH) finished business is the vote on the mo- Buyer Johnson (GA) Roybal-Allard Nadler Shea-Porter Woolsey Capito Johnson (IL) Ryan (OH) Napolitano Sherman Wu tion to instruct on H.R. 2419 offered by Capps Johnson, E. B. Salazar Neal (MA) Shuler Wynn the gentleman from Arizona (Mr. Cardoza Jones (NC) Sa´ nchez, Linda Oberstar Sires Yarmuth FLAKE) on which the yeas and nays Carnahan Jones (OH) T. Carney Kagen Sanchez, Loretta NOES—160 were ordered. Carson Kanjorski Sarbanes The Clerk will redesignate the mo- Akin Frelinghuysen Myrick Carter Kaptur Saxton Alexander Gallegly Neugebauer tion. Castle Kennedy Schakowsky Altmire Garrett (NJ) Pearce The Clerk redesignated the motion. Castor Kildee Schiff Bachmann Gingrey Pence The SPEAKER pro tempore. The Cazayoux Kilpatrick Schwartz Bachus Gohmert Petri Clarke King (IA) Scott (GA) Barrett (SC) Goode Pickering question is on the motion to instruct. Clay King (NY) Scott (VA) Barton (TX) Goodlatte Pitts This will be a 5-minute vote. Cleaver Klein (FL) Serrano Biggert Granger Poe The vote was taken by electronic de- Clyburn Kucinich Sessions Cole (OK) Kuhl (NY) Shea-Porter Bilbray Graves Price (GA) vice, and there were—yeas 128, nays Bilirakis Hall (TX) Pryce (OH) Conaway LaHood Sherman Blackburn Hastings (WA) Putnam 274, not voting 31, as follows: Costa Lampson Shimkus Blunt Heller Radanovich [Roll No. 304] Costello Langevin Shuler Boehner Hensarling Ramstad Courtney Larsen (WA) Shuster Bonner Herger Regula YEAS—128 Cramer Larson (CT) Simpson Bono Mack Hobson Rehberg Akin Franks (AZ) Murphy (CT) Crowley LaTourette Sires Boozman Hoekstra Reichert Alexander Frelinghuysen Myrick Cubin Lee Skelton Boustany Hulshof Rogers (AL) Bachmann Garrett (NJ) Obey Cuellar Levin Slaughter Brady (TX) Hunter Rogers (KY) Bartlett (MD) Gingrey Paul Cummings Lewis (CA) Smith (NE) Broun (GA) Inglis (SC) Rogers (MI) Bean Harman Payne Davis (AL) Lewis (GA) Smith (TX) Brown (SC) Issa Rohrabacher Biggert Hastings (WA) Pence Davis (CA) Lewis (KY) Snyder Buchanan Johnson, Sam Roskam Bilbray Hensarling Petri Davis (IL) Lipinski Solis Burgess Jones (NC) Royce Blackburn Herger Pitts Davis (KY) LoBiondo Space Burton (IN) Jordan Ryan (WI) Blumenauer Hobson Price (GA) Davis, Lincoln Loebsack Speier Buyer Keller Sali Blunt Hoekstra Pryce (OH) DeGette Lofgren, Zoe Spratt Calvert King (IA) Saxton Boehner Holt Radanovich Delahunt Lowey Stupak Camp (MI) Kingston Scalise Boustany Hunter Ramstad DeLauro Lucas Sutton Cantor Kirk Schmidt Brady (TX) Inglis (SC) Reichert Diaz-Balart, L. Lungren, Daniel Tauscher Capito Kline (MN) Sensenbrenner Broun (GA) Issa Rogers (KY) Diaz-Balart, M. E. Taylor Carter Knollenberg Sessions Burgess Johnson, Sam Rogers (MI) Dicks Lynch Terry Chabot Kuhl (NY) Shadegg Camp (MI) Jordan Rohrabacher Dingell Mahoney (FL) Thompson (CA) Coble LaHood Shimkus Cantor Keller Roskam Donnelly Maloney (NY) Thompson (MS) Conaway Lamborn Shuster Capuano Kind Rothman Doyle Marchant Thornberry Crenshaw Latham Simpson Chabot Kingston Royce Edwards Markey Towns Cubin Latta Smith (NE) Chandler Kirk Ruppersberger Ehlers Marshall Tsongas Culberson Lewis (CA) Smith (TX) Coble Kline (MN) Ryan (WI) Ellison Matsui Turner Davis (KY) Lewis (KY) Souder Cooper Knollenberg Sali Ellsworth McCarthy (CA) Udall (CO) Davis, David Linder Stearns Crenshaw Lamborn Scalise Emanuel McCarthy (NY) Udall (NM) Davis, Tom Lungren, Daniel Sullivan Culberson Latham Schmidt Emerson McCaul (TX) Van Hollen Deal (GA) E. Terry Davis, David Latta Sensenbrenner Engel McCollum (MN) Vela´ zquez Diaz-Balart, L. Mack Thornberry Davis, Tom Linder Sestak Eshoo McHugh Visclosky Diaz-Balart, M. Manzullo Tiahrt Deal (GA) Mack Shadegg Etheridge McIntyre Walsh (NY) Drake Marchant Tiberi Dent Manzullo Shays Everett McNerney Walz (MN) Dreier McCarthy (CA) Walberg Doggett McCotter Smith (NJ) Fallin McNulty Wasserman Duncan McCaul (TX) Wamp Doolittle McCrery Smith (WA) Farr Meek (FL) Schultz Emerson McCotter Weldon (FL) Drake McDermott Souder Fattah Meeks (NY) Watson English (PA) McCrery Weller Dreier McGovern Stark Fortenberry Melancon Watt Everett McHenry Westmoreland Duncan McHenry Stearns Foster Miller (MI) Weiner Feeney McKeon Whitfield (KY) English (PA) McMorris Tiahrt Frank (MA) Miller (NC) Welch (VT) Ferguson McMorris Wilson (NM) Feeney Rodgers Tiberi Gallegly Miller, George Weldon (FL) Flake Rodgers Wilson (SC) Ferguson Mica Tierney Gerlach Mitchell Wexler Forbes Mica Wittman (VA) Flake Michaud Upton Giffords Mollohan Whitfield (KY) Fossella Miller (FL) Wolf Forbes Miller (FL) Walberg Gilchrest Moore (KS) Wilson (OH) Foxx Miller, Gary Young (AK) Fossella Moore (WI) Wamp Gillibrand Moran (VA) Woolsey Franks (AZ) Moran (KS) Young (FL) Foxx Moran (KS) Waxman Gohmert Murphy, Patrick Yarmuth

VerDate Aug 31 2005 03:04 May 09, 2008 Jkt 069060 PO 00000 Frm 00120 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.061 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3309 NOT VOTING—31 Linder Petri Shimkus Weiner Weller Woolsey Lucas Pitts Shuster Welch (VT) Wexler Wynn Ackerman Conyers Reynolds Lungren, Daniel Platts Smith (NE) Weldon (FL) Wilson (OH) Yarmuth Aderholt DeFazio Richardson E. Poe Bachus Filner Smith (TX) Rush Mack Porter NOT VOTING—42 Baird Gutierrez Souder Sullivan Marchant Price (GA) Ackerman Filner Barton (TX) Jefferson Stark Pickering Tancredo McCarthy (CA) Pryce (OH) Aderholt Gutierrez Braley (IA) Matheson Stearns Renzi Tanner McCaul (TX) Putnam Bachus Jefferson Brown (SC) McKeon Terry Reynolds Walden (OR) McCotter Radanovich Baird Kaptur Calvert Miller, Gary Thornberry Richardson Waters McCrery Ramstad Barton (TX) Manzullo Campbell (CA) Musgrave Tiahrt Rush Wu McHenry Regula Braley (IA) Matheson Shadegg Cannon Nunes Tiberi McHugh Rogers (KY) Brown (SC) McKeon Shuler Cohen Renzi Turner McMorris Rogers (MI) Calvert Miller, Gary Sullivan Upton ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Rodgers Rohrabacher Campbell (CA) Musgrave Tancredo Mica Ros-Lehtinen Walberg Cannon Nadler Tanner The SPEAKER pro tempore (during Miller (FL) Roskam Wamp Capuano Nunes Walden (OR) the vote). Members are advised that 1 Moore (WI) Royce Westmoreland Cohen Pascrell Waters minute remains in this vote. Moran (KS) Ryan (WI) Whitfield (KY) Davis, Lincoln Paul Waxman Murphy, Tim Sali Wilson (NM) DeFazio Payne Wu b 1639 Myrick Saxton Wilson (SC) Neugebauer Scalise Wittman (VA) ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Mr. LEVIN changed his vote from Obey Schmidt Wolf The SPEAKER pro tempore (during ‘‘yea’’ to ‘‘nay.’’ Pearce Sensenbrenner Young (AK) the vote). There are 2 minutes remain- So the motion to instruct was re- Pence Sessions Young (FL) Peterson (PA) Sherman ing in this vote. jected. The result of the vote was announced NAYS—222 b 1646 as above recorded. Abercrombie Gordon Moran (VA) Mr. SHERMAN changed his vote A motion to reconsider was laid on Allen Green, Al Murphy (CT) from ‘‘nay’’ to ‘‘yea.’’ the table. Altmire Green, Gene Murphy, Patrick So the motion was rejected. Andrews Grijalva Murtha Stated against: Arcuri Hall (NY) Napolitano The result of the vote was announced Mr. FILNER. Mr. Speaker, on rollcall 304, I Baca Hare Neal (MA) as above recorded. was unable to vote because of pressing busi- Barrow Harman Oberstar A motion to reconsider was laid on ness with my constituents in my home district. Bean Hastings (FL) Olver Becerra Herseth Sandlin Ortiz the table. Had I been present, I would have voted ‘‘no.’’ Berkley Higgins Pallone Stated against: f Berman Hill Pastor Mr. FILNER. Mr. Speaker, on rollcall 305, I Berry Hinchey Perlmutter was unable to vote because of pressing busi- MOTION TO INSTRUCT CONFEREES Bishop (GA) Hinojosa Peterson (MN) Bishop (NY) Hirono Pomeroy ness with my constituents in my home district. ON H.R. 2419, FOOD AND ENERGY Blumenauer Hodes Price (NC) Had I been present, I would have voted ‘‘no.’’ SECURITY ACT OF 2007 Boren Holden Rahall Boswell Holt Rangel f The SPEAKER pro tempore. The un- Boucher Honda Rehberg finished business is the vote on the mo- Boyd (FL) Hooley Reichert PERSONAL EXPLANATION tion to instruct on H.R. 2419 offered by Boyda (KS) Hoyer Reyes Mr. GUTIERREZ. Mr. Speaker, I was un- Brady (PA) Inslee Rodriguez the gentleman from Virginia (Mr. CAN- Brown, Corrine Israel Rogers (AL) avoidably absent from this Chamber today. TOR) on which the yeas and nays were Butterfield Jackson (IL) Ross Had I been present, I would have voted ‘‘yea’’ ordered. Camp (MI) Jackson-Lee Rothman on rollcall votes 299, 300, 301, 302 and 303 The Clerk will redesignate the mo- Capps (TX) Roybal-Allard Cardoza Johnson (GA) Ruppersberger and ‘‘no’’ on rollcall votes 298, 304 and 305. tion. Carnahan Johnson (IL) Ryan (OH) f The Clerk redesignated the motion. Carney Johnson, E. B. Salazar The SPEAKER pro tempore. The Carson Jones (OH) Sa´ nchez, Linda COMMUNICATION FROM THE HON- Castor Kagen T. ORABLE JOHN A. BOEHNER, RE- question is on the motion to instruct. Cazayoux Kanjorski Sanchez, Loretta This will be a 5-minute vote. Chandler Kennedy Sarbanes PUBLICAN LEADER The vote was taken by electronic de- Clarke Kildee Schakowsky The SPEAKER pro tempore (Mr. vice, and there were—yeas 169, nays Clay Kilpatrick Schiff Cleaver Kirk Schwartz KLEIN of Florida) laid before the House 222, not voting 42, as follows: Clyburn Klein (FL) Scott (GA) the following communication from the [Roll No. 305] Conyers Kucinich Scott (VA) Honorable John A. Boehner, Repub- Cooper LaHood Serrano YEAS—169 Costa Lampson Sestak lican Leader: Akin Crenshaw Goodlatte Costello Langevin Shays CONGRESS OF THE UNITED STATES, Alexander Cubin Granger Courtney Larsen (WA) Shea-Porter HOUSE OF REPRESENTATIVES, Bachmann Culberson Graves Cramer Lee Simpson Washington, DC, May 8, 2008. Baldwin Davis (KY) Hall (TX) Crowley Levin Sires Hon. NANCY PELOSI Barrett (SC) Davis, David Hastings (WA) Cuellar Lewis (GA) Skelton Bartlett (MD) Davis, Tom Hayes Cummings Lipinski Slaughter Speaker, U.S. Capitol, Biggert Deal (GA) Heller Davis (AL) LoBiondo Smith (NJ) Washington, DC. Bilbray Dent Hensarling Davis (CA) Loebsack Smith (WA) DEAR SPEAKER PELOSI: Pursuant to Section Bilirakis Diaz-Balart, L. Herger Davis (IL) Lofgren, Zoe Snyder 1853(a) of the Implementing Recommenda- Bishop (UT) Diaz-Balart, M. Hobson DeGette Lowey Solis tions of the 9–11 Commission Act of 2007 Blackburn Doggett Hoekstra Delahunt Lynch Space (P.L. 110–53), I am pleased to appoint Mr. Blunt Doolittle Hulshof DeLauro Mahoney (FL) Speier Henry Sokolski of Arlington, Virginia and Boehner Drake Hunter Dicks Maloney (NY) Spratt Bonner Dreier Inglis (SC) Dingell Markey Stupak Mr. Stephen Rademaker of McLean, Virginia Bono Mack Duncan Issa Donnelly Marshall Sutton to the Commission on the Prevention of Boozman Ehlers Johnson, Sam Doyle Matsui Tauscher Weapons of Mass Destruction Proliferation Boustany Emerson Jones (NC) Edwards McCarthy (NY) Taylor and Terrorism. Brady (TX) English (PA) Jordan Ellison McCollum (MN) Thompson (CA) Both Mr. Sokolski and Mr. Rademaker Broun (GA) Everett Keller Ellsworth McDermott Thompson (MS) have expressed interest in serving in this ca- Brown-Waite, Feeney Kind Emanuel McGovern Tierney pacity and I am pleased to fulfill their re- Ginny Ferguson King (IA) Engel McIntyre Towns Buchanan Flake King (NY) Eshoo McNerney Tsongas quests. Burgess Forbes Kingston Etheridge McNulty Udall (CO) Sincerely, Burton (IN) Fortenberry Kline (MN) Fallin Meek (FL) Udall (NM) JOHN A. BOEHNER, Buyer Fossella Knollenberg Farr Meeks (NY) Van Hollen Republican Leader. Cantor Foxx Kuhl (NY) Fattah Melancon Vela´ zquez Capito Franks (AZ) Lamborn Foster Michaud Visclosky f Carter Gallegly Larson (CT) Frank (MA) Miller (MI) Walsh (NY) Castle Garrett (NJ) Latham Frelinghuysen Miller (NC) Walz (MN) LEGISLATIVE PROGRAM Chabot Gerlach LaTourette Giffords Miller, George Wasserman (Mr. BLUNT asked and was given Coble Gingrey Latta Gilchrest Mitchell Schultz Cole (OK) Gohmert Lewis (CA) Gillibrand Mollohan Watson permission to address the House for 1 Conaway Goode Lewis (KY) Gonzalez Moore (KS) Watt minute.)

VerDate Aug 31 2005 05:15 May 09, 2008 Jkt 069060 PO 00000 Frm 00121 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.065 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3310 CONGRESSIONAL RECORD — HOUSE May 8, 2008 Mr. BLUNT. Mr. Speaker, I yield to claiming some credit that the PAYGO in Iraq and Afghanistan, that when my friend from Maryland, the majority issue, which you and I actually dis- they come back, we invest in their edu- leader, to tell us about next week’s cussed last week, was a problem. At cation so they, in turn, can grow our scheduled bills. that time you thought that we might economy and our country and do what Mr. HOYER. I thank the Republican be able to waive PAYGO for both the the veterans of World War II did. But whip for yielding. GI portion of the supplemental and the we’re looking at those and they’re On Monday the House will meet in unemployment insurance portion of under discussion. pro forma session at 2 p.m. On Tuesday the supplemental. I wonder where we Mr. BLUNT. I thank the gentleman the House will meet at 12:30 p.m. for are on that topic of PAYGO as it re- for that. morning hour and at 2 p.m. for legisla- lates to those two issues. When you look at the anticipated tive business, with votes postponed Is that a decided issue yet, and how spending and the scoring on those bills, until 6:30 p.m. On Wednesday and would you expect that it may be de- both of them add so many new things Thursday, the House will meet at 10 cided? to the benefit area that there’s very a.m. for legislative business. On Friday Mr. HOYER. First, let me say that I little money spent in the first year. no votes are expected at this time. don’t believe that the PAYGO, under And since it takes that long to really We will consider several bills under the proposal that has been made, ap- get the new system up and running, I suspension of the rules. A final list of plies to the GI Bill, to the Webb bill, or would just suggest again that the clos- suspension bills will be announced, as to whatever bill there might be. STEPH- er we are to a system that the military is the custom, by the close of business ANIE HERSETH SANDLIN has a bill as can be supportive of, both individuals tomorrow. We expect to consider the well. Mr. MITCHELL has worked very in the military and the institutions, I Iraq/Afghanistan supplemental appro- hard on his bill. But however that think all of us want to take a step for- priations bill. In addition, we also hope might be considered, we believe that ward on those things that relate to to consider the farm bill conference re- technically it does not need a waiver of servicemen and women and particu- port. And it is possible, if the budget PAYGO. But, clearly, the unemploy- larly those servicemen and women that conference were completed, that we ment insurance, which would be con- may have been left out of past benefits might consider that as well. sidered as an emergency, as was the for those who served. That would relate Mr. BLUNT. I thank my friend for stimulus for stimulating the economy, most directly to the National Guard that information. would be dealt with as an emergency. and the reserves who are called up Is it likely on the two conference re- Mr. BLUNT. I was fortunate enough maybe for multiple periods of time but ports you mentioned that the farm bill to have a meeting with Secretary never for a long enough period of time conference report will come before the Gates this week, and he, of course, en- at one consecutive time of full-time budget conference report? courages us to get this supplemental service to qualify for past benefits. We Mr. HOYER. It’s likely that that will done quickly because, otherwise, they want to do that, but certainly we want happen. I can’t assert that, but I think immediately get into trying to transfer to do that in the very best way, par- it’s likely. funds around and things that may be ticularly when you look at how long it As you know, the farm bill has been available but do create huge manage- takes to retool the way that these ben- up to agreement and then back. I un- ment problems. I do hope we can get efits are made available for that to derstand it is now agreed to and that this done before the Memorial Day happen. Since it appears at this point Mr. PETERSON would like to bring it to break, as you suggested we would. that we’d have no alternative to bring, the floor, assuming that the agreement Mr. HOYER. Will my friend yield? in this case, a better House alternative holds, on Wednesday. So I think it’s Mr. BLUNT. I yield. to the floor, I hope we are putting the likely. Mr. HOYER. We were trying to get it right set of building blocks together to Mr. BLUNT. I am told if we went to done quickly this week. There were really build a better future for those the new budget, there might be some some delays, as I recall, in the process. who serve and are willing to put their additional PAYGO items, but the cur- That was not the only reason, as the lives at risk and their other activities rent budget makes that farm bill more gentleman has observed. But we hope on hold for us. workable. So I think that might be the to get it done quickly. Mr. HOYER. Will the gentleman case. Mr. BLUNT. You mentioned the yield? Mr. HOYER. If the gentleman will other alternatives to the so-called Mr. BLUNT. I would. yield, I see the chairman on the floor. Webb bill, and the Herseth Sandlin bill Mr. HOYER. I thank the gentleman The chairman and I have discussed that is cosponsored by Mr. BOOZMAN on for yielding and certainly agree with that issue, and that’s why I indicate this side, I’m told by our Members and the sentiments he has just expressed, that it is likely. Mr. PETERSON has frankly some people from the Pentagon which is why, of course, we want to see worked extraordinarily hard, along that it has some real merit over the this move forward quickly in the sup- with a lot of others. But because he’s other bill. Since we don’t have any op- plemental. But the alternatives that on the floor, I want to commend Chair- tions in that bill, at least the bill we the gentleman has expressed are being man PETERSON for the work that he has were talking about this week, no op- looked at. put in on this. It’s been a very rough tions to bring alternatives to the floor, Mr. BLUNT. I’m also wondering, as conference and a very rough agree- I would hope that we could look at all we approach the Memorial Day recess ment. But he and Mr. LATOURETTE of the alternatives in that part that and we have had this series now of days have worked closely together, and I benefit our servicemen and women and of the highest gasoline prices ever, will congratulate them both. be sure we’re bringing the best alter- there be any legislation on the floor to Mr. BLUNT. That’s right. Mr. GOOD- native the House has available to it to reduce the price of gasoline as we go LATTE and Mr. PETERSON have talked the floor next week. into Memorial Day and the other sum- to both of us a lot about this bill, and Mr. HOYER. I appreciate the gentle- mer driving seasons? I think it’s coming to some conclusion man’s comments. Mr. HOYER. We certainly, as you now. I will say that Congresswoman know, passed a number of pieces of leg- Mr. HOYER. I said Mr. LATOURETTE. HERSETH SANDLIN has worked very islation which have attempted to look I’m sure he’s worked hard, too, but Mr. hard on that. I’m sure Mr. BOOZMAN has at a number of different issues. One, of GOODLATTE is the ranking member. as well. The committee has addressed course, was the manipulation by the Mr. BLUNT. Mr. LATOURETTE was that bill. It’s a good bill. It’s not as ex- OPEC nations to artificially inflate probably working on the Coast Guard tensive, as you know, as the Webb bill, prices. The other thing we have looked issues in the farm bill. which has also been worked on pretty at is price gouging at the pump. We I would like to ask the gentleman on hard by former Secretary of the Navy passed that. The other item we looked the supplemental, I noticed in a num- WEBB, JIM WEBB, the Senator from Vir- at, of course, was the energy bill itself. ber of printed reports that one of the ginia. Both bills obviously seek to And the other was we asked the FTC to reasons we didn’t get to the supple- make sure that our warriors who come look at manipulation. We wrote to the mental was that the Blue Dogs were back, those who have defended freedom FTC about 3 weeks ago. The FTC gave

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00122 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.092 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3311 attention to our letter and is now exer- have a positive effect on bringing AUTHORIZING THE CLERK TO cising, as I understand, its jurisdiction prices down as well. MAKE CORRECTIONS IN EN- under the legislation that we passed to Mr. BLUNT. Based on the increase in GROSSMENT OF H.R. 5818, NEIGH- look at prices. prices, if in fact that would have the BORHOOD STABILIZATION ACT In addition, we have numerous hear- same impact as a gas tax holiday, OF 2008 ings scheduled. We’ve had some this maybe we should do both. I suspect Mr. FRANK of Massachusetts. Mr. week, next week, and the week after there would be substantial support on Speaker, I ask unanimous consent that looking at various different aspects of the floor to do both. the Clerk be authorized to make tech- this. Clearly, our consuming public, The only other item I am going to nical corrections in the engrossment of whether they be commercial, which are mention today is the Colombia Free H.R. 5818 and amendments to H.R. 3221, probably having the most critical prob- Trade Agreement. It was 1 year ago to- to include corrections in spelling, lem because that’s their livelihood, as morrow that the House, the Senate and punctuation, section numbering and well as those of us who are not driving the administration made an agreement cross-referencing, and the insertion of for commercial sake but for important on trade. That was about a year after appropriate headings. sake, to get to school, to get to work, the Colombia Free Trade Agreement The SPEAKER pro tempore. Is there to get to hospitals, to do all those had been negotiated. We have not objection to the request of the gen- things, we are very cognizant, as I passed that agreement yet and don’t tleman from Massachusetts? know all of us are, of the strain that is have any schedule on the floor. I would There was no objection. being put on the consumers of our hope that we will continue work to get f country. the Colombia Free Trade Agreement b 1700 and the other trade agreements but MOTION TO INSTRUCT CONFEREES particularly the Colombia agreement ON H.R. 2419, FOOD AND ENERGY Not only are they seeing an economic to the floor and do that in the spirit of SECURITY ACT OF 2007 downturn, but at the same time that the agreement that the Speaker and they are having reduced capacity to Mr. UPTON. Mr. Speaker, I have a administration and Senate negotiators purchase things critical to them, gaso- motion at the desk. announced a year ago. line and home heating oil are going up The SPEAKER pro tempore. The almost every week 5 to 10 cents. And so I would yield. Clerk will report the motion. we are addressing that. We met with Mr. HOYER. I thank the gentleman The Clerk read as follows: all the chairmen who reported out the for yielding. Mr. Upton moves that the managers on the energy bill last year and asked them to I want to say that both the Speaker part of the House at the conference on the address this issue short term, medium and I believe that the administration, disagreeing votes of the two Houses on the Senate amendment to the bill H.R. 2419 (an term and long term. in reaching an agreement that you refer to, made a positive step in terms Act to provide for the continuation of agri- Mr. BLUNT. I thank the gentleman cultural programs through fiscal year 2012) for that. of incorporating within trade agree- be instructed to recede to the provisions pro- I would like to find something to do ments a consideration of workers’ posed to be added to Section 9001 of the Farm that would have this impact as we get rights and environmental concerns so Security and Rural Investment Act of 2002 in into this driving season. I know that that our manufacturers and our job the form of a definition of ‘‘Renewable Bio- Mr. RYAN introduced a bill today that producers in the United States had a mass.’’ would take the money that otherwise fair, more level playing field in which Mr. UPTON (during the reading). Mr. would have been used for earmarks on to compete and that our workers were Speaker, I ask unanimous consent that both sides of the aisle and use that to competing with workers who had the the motion be considered as read. offset the loss of revenue to the high- right to organize and were getting de- The SPEAKER pro tempore. Is there way trust fund of a gas tax holiday. cent wages. objection to the request of the gen- That would be one of the things that The Colombia agreement, as you tleman from Michigan? we could do in the next 2 weeks that know, was not sent down here after There was no objection. should have immediate impact at the agreement between the administration The SPEAKER pro tempore. Pursu- pump by Memorial Day if we did it be- and the House leadership. The response ant to the rule, the gentleman from fore that Memorial Day break. But if was to simply not take it off the agen- Michigan (Mr. UPTON) and the gen- we could do something to reduce gas da but take the time limit during tleman from Pennsylvania (Mr. prices, that would be a major thing. which we might consider that. That HOLDEN) will be recognized for 30 min- Mr. HOYER. Will the gentleman was an interim step which did not, as utes each. yield on that? the Speaker has pointed out, take Co- The Chair recognizes the gentleman Mr. BLUNT. I would yield. lombia off the agenda. It simply didn’t from Michigan. Mr. HOYER. One of the things I know put it on the agenda for immediate Mr. UPTON. Mr. Speaker, I will say I I am personally for, and I think the consideration. But that is still on the know that the hour is late. Many of us Speaker is for that, as well, and we agenda. It is still available, a force, and are trying to get home for the week- have urged the administration to take it is still under discussion. end, and there is business after me. So action, is not purchase additional oil Mr. BLUNT. I hope we can get it I don’t at all intend to take too much for the Strategic Petroleum Reserve at done. of my 30 minutes that I have. But let this time. I would be opposed to taking me yield myself as much time as I may oil out of the reserve. But if we stop f consume now. purchasing oil for a period of time, re- Mr. Speaker, we are woefully unpre- duce our demand as we fill the SPR, ADJOURNMENT TO MONDAY, MAY pared to meet our energy needs for the not only will we reduce demand, econo- 12, 2008 next 30 years. Some estimates say that mists tell us that would have an effect our needs in this country are going to on price, perhaps about the same as the Mr. HOYER. Mr. Speaker, I ask increase as much as 50 percent by the gasoline tax holiday that you refer to. unanimous consent that when the year 2030. So we are going to have to do There are a number of pieces of legis- House adjourns today, it adjourn to a much better job on not only looking lation. Mr. WELCH has a bill. Mr. meet at 2 p.m. on Monday next, and at alternative forms of energy, we are LAMPSON has a bill. And many, many further, that when the House adjourns also going to need to do much more on other Members have a bill. The admin- on that day, it adjourn to meet at 12:30 conservation, nuclear and a whole host istration, we believe, can do this on its p.m. on Tuesday, May 13, for morning- of things. And as the majority leader own. We think that would be good pol- hour debate. indicated a short time ago, we are icy while we have this crisis to stop The SPEAKER pro tempore. Is there looking for some long-term strategies. filling up, not reducing, but to stop fill- objection to the request of the gen- What this instruction to the con- ing up our own reserve and reduce de- tleman from Maryland? ferees does is it takes, in essence, a mand. Economists tell us that would There was no objection. piece of legislation, a bipartisan piece

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00123 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.093 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3312 CONGRESSIONAL RECORD — HOUSE May 8, 2008 of legislation that the Energy Sub- H.R. 6 are correct and on target, we Mr. SHIMKUS. Madam Speaker, as committee held hearings on earlier cannot do it on this farm bill. The hour many people who have observed the this week, a bill offered by the is too late. So I would oppose my good House floor over the past month, I have gentlelady, STEPHANIE HERSETH friend’s amendment at this time. continuously come down to address the SANDLIN, which is bipartisan, and it ex- I reserve the balance of my time. high cost of energy and the importance pands the definition of renewable fuel Mr. UPTON. Madam Speaker, I have of bringing the supply issue to this de- and biomass to include wood removed no further speakers. I am prepared to bate. as byproducts from National Forest close if the gentleman yields back his One of the things that we have been System land or any organic matter time. successful with, which is now under at- that is available on a renewable basis Mr. HOLDEN. Again, the argument tack, it was once a success story, was from non-Federal land, including re- that my friend makes is credible. But E–85, ethanol and the entire debate of newable plant material which includes at this time, we just cannot accept it. bringing more supply to this debate. feed grain, other agricultural commod- The conference is all but over. And I This motion to instruct highlights ities, other plants and trees, waste ma- would oppose my friend’s motion. the importance of E–85 fueling stations terial, including crop residue, et I yield back the balance of my time. and developing that. For example, in cetera, food and yard waste. And it Mr. UPTON. Madam Speaker, I just my home State of Illinois, I am very would instruct the conferees to include might say in closing as a member of fortunate. We have 171 E–85 fueling sta- this on the farm bill. the Energy and Commerce Committee, tions. In my congressional district, I Of course, the farm bill is a bill that we had what I thought was a very fa- can go all throughout my 30 counties is moving along. The farm legislation vorable hearing earlier this week. I and fuel up with my flex-fuel vehicle is a bill that is going to be on the would like to think this is a vehicle we E–85. can move this legislation on very President’s desk we hope in the not too b 1715 distant future. So this is a bill that is quickly rather than resort to the nor- going to move. mal process, particularly as we look There are States in the Union that Why not take a piece of bipartisan long term. We can do this in the short cannot. An example, Maine, we legislation that deals with alternative term. It makes a lot of sense. couldn’t get any information on. Rhode fuels like ethanol, expand that, and ac- I would urge a ‘‘yes’’ vote on the mo- Island has zero, Vermont has zero, tually get it to the President’s desk so tion to instruct the conferees to in- Delaware has one, where other States, we can do it right away rather than clude this in the farm bill. like Minnesota, has 346. Madam Speaker, I yield back the bal- wait for more hearings, markups and One of the issues of more supply is ance of my time. also more supply locations. When we dealing with the Senate? Who knows The SPEAKER pro tempore (Ms. what happens over there. We can actu- move to new fuels, as other people talk CLARKE). Without objection, the pre- ally get this thing done and then ad- about, if we move to a hydrogen econ- vious question is ordered on the motion omy, we are going to need hydrogen- dress part of the needs that we have in to instruct. this country to expand our alternative fueling stations, and that’s all part of There was no objection. the importance. fuel base. The SPEAKER pro tempore. The So I would like to think that we This motion to instruct says let’s do question is on the motion to instruct. what the Senate did on the farm bill, could adopt this. I know that there is The question was taken; and the and let’s talk about developing an E–85 quite a bit of support on it based on the Speaker pro tempore announced that infrastructure around this country so hearing that we held earlier this week. the noes appeared to have it. Madam Speaker, I would reserve the Mr. UPTON. Madam Speaker, on that we can help decrease our reliance on balance of my time. I demand the yeas and nays. imported crude oil. Why? Because ev- Mr. HOLDEN. Madam Speaker, I The yeas and nays were ordered. erything we talk about on this floor re- yield myself such time as I may con- The SPEAKER pro tempore. Pursu- volves around energy and the high cost sume. ant to clause 8 of rule XX, further pro- of energy, especially for the producers Madam Speaker, it appears that my ceedings on this question will be post- of our food. friend from Michigan’s motion is to in- poned. For example, manufacturer inputs have increased 14 percent in 2008 on top struct the House to recede to the Sen- f ate’s definition of renewable biomass. of a 12 percent increase last year. The House conferees have receded to MOTION TO INSTRUCT CONFEREES That’s inputs to grow our food. Corn the Senate on their definition of renew- ON H.R. 2419, FOOD AND ENERGY fertilizer costs $140 per acre for 2008, able biomass. That definition of renew- SECURITY ACT OF 2007 compared to $115 price in 2007, con- able biomass that is included in the Mr. SHIMKUS. Madam Speaker, I trasted to $63 per acre from 2001–2005. farm bill applies only to farm bill pro- have a motion to instruct at the desk. What is driving up high farmers’ grams. This definition does not apply The SPEAKER pro tempore. The input costs? No additional supply. A to H.R. 6. Clerk will report the motion. lot of fertilizers are affected, all buy The farm bill conferees report does The Clerk read as follows: natural gas. As we continue to restrict not amend H.R. 6, that despite the fact Mr. Shimkus moves that the managers on our ability to go after more supply, we that several members of the Agri- the part of the House at the conference on push up the input costs, which drives culture Committee, including myself, the disagreeing votes of the two Houses on up the price for food and this whole de- are supporting efforts to amend the the Senate amendment to the bill H.R. 2419 bate. (an Act to provide for the continuation of ag- shortcomings we see in that bill. And I ricultural programs through fiscal year 2012) I can go through all the huge in- say to my friend from Michigan that I be instructed to recede to the provisions con- creases that our farmers have had to am going to have to oppose this motion tained in section 9021 of the Senate amend- do. DAP, prices rose from $252 per ton to instruct at this time. And I agree ment (relating to the E 85 Fuel Program). in January, 2007, to $752 gulf price. with your position on this. But yet you The SPEAKER pro tempore. Pursu- Urea rose from $272 to $415, muriate of know there are multijurisdictional ant to the rule, the gentleman from Il- potash rose from $173 to $252. We can concerns that have to be addressed linois (Mr. SHIMKUS) and the gentleman just go on. It’s a huge, huge increase. with the Energy and Commerce Com- from Colorado (Mr. SALAZAR) will be Now we don’t want to come down to mittee. And we are trying to work recognized for 30 minutes each. the floor without bringing alternatives through all of these. The Chair recognizes the gentleman and solutions. What’s the solution? The The farm bill conference is all but from Illinois. solution is more supply. done. Over the last few weeks, I have Mr. SHIMKUS. Madam Speaker, I Look at what’s happened. It’s not been saying we need to dot our I’s and yield myself such time as I may con- disputable. Under this majority, crude cross our T’s. The I’s are dotted and we sume. oil has gone from $58 a barrel to $123. I are crossing our T’s. So even though I (Mr. SHIMKUS asked and was given come down almost every day. This agree that the argument that my permission to revise and extend his re- price has not gone down. This price friend is making on the problems of marks.) continues to go up.

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00124 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.096 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3313 We have had promises made by Dem- ‘‘Forget it.’’ it’s getting desperate. It is getting very ocrat leadership. In 2006, I quoted them What about offshore? desperate, and they need help on the before, Speaker PELOSI saying, ‘‘We ‘‘Are you crazy?’’ price of gasoline. They need help on the have a plan to drive down energy Clean coal? price of diesel fuel. costs.’’ Majority Leader HOYER who ‘‘Out of the question.’’ What are we doing? We are hearing just spoke: ‘‘We have a plan to bring Nuclear power? people say, oh, we couldn’t possibly down energy costs.’’ JIM CLYBURN: ‘‘We ‘‘You’re just joking.’’ drill ANWR. I am from Texas. Texas, have a plan to drive down energy Well, what are we going to do about Oklahoma, Louisiana, we have got costs.’’ the high price of energy? When you States where we are doing everything The reality is, energy costs have have no plan, you plan to fail. My we can to pump up all the energy we gone up, not down, $58 a barrel to $123. farmers, who are getting accused for can to help the rest of the country. What has that done for us at the pump? high prices, have high prices because We need some help. We have got all When the Democrat majority took we have high energy costs, and we have of these other resources, and they are over, the price for a gallon of gasoline high energy costs because we won’t get being put off-limits. They are being was $2.33 on average. What is it today, to supply. kept off-limits, and we have heard from on average, $3.66. That’s why we want ethanol to suc- some on the other side, well, drilling Put in climate change tax, 50 cents, ceed. That’s the only thing we have doesn’t really bring down the price of $4.16 is what we would be paying today done to bring more supply to this de- fuel. with climate change. That’s not a plan. bate. You know what? We are told from In fact, it’s a plan to fail. If you don’t If we don’t address the high input some of the experts, 20, 30 percent is have a plan, you plan to fail, and that’s cost, what’s going to happen is this speculation. These speculators are the difficulty of our farmers getting fuel-food debate is going to go crazy. I smart. They see that every bill that’s into the field. Diesel costs have dou- was at the hearing. Guess what, there come out of this House for the last 16 bled, rising the price. Ethanol gets is a call to roll back the ethanol renew- months does not provide any answers blamed. Ethanol gets blamed because able fuel standard. to getting us more energy any time energy costs to get the corn out of the Now, that really helps our energy soon. fields has gone up. You want corn independence, doesn’t it? Talk about ANWR. Now, it was point- prices down? We have got to lower this. Madam Speaker, I reserve the bal- ed out yesterday in our Resources We have got to get back to the day of ance of my time. Committee that really this area that is $58 a barrel crude oil. We can’t get Mr. SALAZAR. Madam Speaker, proposed for drilling is not part of there with no plan. We can’t get there well, it appears that the gentleman’s ANWR. It was a section set aside by by every week saying we have got a motion to instruct will direct the Jimmy Carter to make sure that we plan, and there is no plan. House conferees to accept the provision had an area that we could develop. There is a plan. We have brought of the Senate version of the farm bill. Now we are told that perhaps once a them onto the floor numerous times. The Senate farm bill contains a pro- year caribou may come through this What can we do? One is use our great vision, section 9021, that would have area of ANWR, and, oh, my goodness, if natural resources on coal in this coun- created a grant program to install E–85 we put a drilling rig out there, it may try, 250 years worth of coal to be used pumps. The Energy and Commerce destroy our caribou. We heard the same using coal-to-liquid technology. Get Committee, who are also conferees in thing back some years back, that if we coal from our underground, build a the farm bill energy title, indicate that put a pipeline through some of this coal-to-liquid refinery, pipe it, in this had this plan is duplicative of section area up north it was going to kill off case, to an Air Force base, pipe it to a 244 that was included in H.R. 6, the En- the last 27 head of caribou. commercial airline. We have lost all ergy Independence and Security Act of You know what happened? The pipe- these airline jobs because of high costs. 2007. We tried to avoid this duplication line went in, that oil is warm going This is what we do. Guess what you can make: Diesel of programs between the farm bill and through that pipeline, and what hap- fuel. Diesel fuel. What is the farmers’ the energy bill that was passed last pened is it makes the caribou amorous. major input? Diesel fuel, because that’s year. Now when caribou want to go on a what goes in the tractors when you While I agree with the gentleman date, they invite each other to go over have got to plant the corn. That’s what that ethanol is a very vital part of our to the pipeline. We are up to 30,000 head goes in the tractor when you have got energy independence program, we still of caribou now because of what the to harvest the corn or the beans, and have to make sure that we continue to warm pipe has done for the good of the diesel fuel has cost. Truckers are going move forward and that we do not derail caribou community, so it’s going well. on strike. Independent truckers are this current farm bill that we are pres- We are told we can’t drill the Outer going on strike. ently working on. It is my under- Continental Shelf. About 97 of our A lot of these independent truckers standing that my colleagues in the coastlines are unavailable. We heard are hauling the beans, hauling the corn conference committee for the food con- the same thing in Texas years back. to the elevator. Without a plan to servation and energy act have already Oh, please, don’t put a drilling rig, not lower cost of energy, you plan to fail. come to an agreement that is already a platform out in the water. Oh, my Coal-to-liquid is a solution. to be reported. goodness, you get beyond 30 miles, no- What is another solution? See all this Nonetheless the chairman reminds body can see it from the beach. red area? We don’t have Alaska on us, all Members, that all motions to in- But what we found in the Texas coast there. Off-limits. Off-limits for natural struct are really out of order because is, despite all the naysayers saying it gas. Off-limits for crude oil. Let’s open the conference committee report is was going to kill off the fish, what’s up these areas. The environmentalists ready to be filed. I know that adopting happened, if you want to go fishing and will say, oh, no, we can’t do that. One this motion would obviously delay pas- really go where the fish are, they go of our major areas for crude oil and sage of the farm bill. around the platforms because they natural gas is the gulf. With that, Madam Speaker, I reserve have become wonderful artificial reefs. Guess what happened here? Katrina, the balance of my time. Man and environment can work to- big storm, devastated New Orleans. A Mr. SHIMKUS. Madam Speaker, I gether to help each other. The Outer major oil spill in the gulf? No, no would like to recognize my colleague Continental Shelf, we may have the major oil spill. from Texas (Mr. GOHMERT) for 5 min- highest second supply of natural gas in We can do it cleanly, we can do it ef- utes. the world, some think we might even ficiently, we can bring more supply to Mr. GOHMERT. Madam Speaker, this have the most, but we have put it off- the market. You want to know how to is such a critical issue. You know, limits and won’t go after it. lower prices for the farmers? Lower en- there are so many important things We have lost so many wonderful ergy prices. facing this country, whether it’s the union jobs because of the price of nat- But what’s our policy here? Can we war on terror, the importance of FISA. ural gas. I lost several hundred jobs out drill in ANWR? But when you talk to people at home, of my district when a paper mill closed

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00125 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.101 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3314 CONGRESSIONAL RECORD — HOUSE May 8, 2008 because it ran on natural gas, and we I was one of the few Members who ac- lead. I believe this is an opportunity were paying the highest price in the tually talked to the President reg- for us. world because we wouldn’t utilize what istering my disgust, frustration and But I will tell you what my position we have. anger. I will say it is now up to my is on energy, and this is after 8 years as My friend has pointed out coal. We friends on your side of the aisle, both the Republican co-chairman of the Re- are the Saudi Arabia of coal, according in the House and on the other side of newable Energy and Energy Efficiency to a lot of experts, and yet we put it the Capitol to help move on a strategy Caucus in the House of Representa- off-limits. President Carter put a huge to keep Future Gen on track. tives, which is over half of the House, amount of our coal off-limits. We are We have a strategy. We are working it is about 60 percent Democratic mem- the only advanced nation that takes in a bipartisan manner. Coal is critical bers and 40 percent Republican mem- our greatest resources of energy and to our national security, low cost fuel. bers. I have chaired it for 8 years with puts them off-limits. I am begging the legislative leaders on MARK UDALL. I am the chairman of Nuclear. Now I am not one to advo- your side, which they can do by putting that, but my position on energy is an cate mimicking France over anything, Future Gen legislation on must-pass all-of-the-above position. It has to be but they have about got it down on nu- legislation, funding it, and Future Gen an all-of-the-above position. We cannot clear. We could follow their example can stay alive. But I am not in the ma- pick winners and losers. They did that and provide so much energy. Refin- jority now. I am glad you mentioned it, in California and the lights went out. eries, the bills we keep passing out of and I call upon your side to make it so. You can’t pick winners and losers, not this Congress, out of this committee I Mr. SALAZAR. I agree with the gen- when we have the capacity challenges am on, it makes it harder to open re- tleman. I agree this is something that that we have today. And we do have ca- fineries. That makes the price go up. we have to move forward on, and it can pacity challenges everywhere. Speculators see that. be done in a bipartisan fashion, making At $122 a barrel, this is a supply-and- If we had an announcement today, sure our environment is taken care of. demand problem. If the people who tomorrow, from Speaker PELOSI and We also have to employ other nations don’t like us around the world that Leader REID that, by golly, next week as well. In China, they are building a produce oil would increase the supply, we’re going to drill ANWR, we’re going coal-fired plant once a week, that’s the price would go down. Or if the de- to drill Outer Continental Shelf, we’re what I hear. Maybe even more. So we mand would reduce by conservation going to start supplying more of our have to do it in a worldwide fashion and not so much growth in India and energy needs until we can bring all type of legislation that would actually China, the price would go down. But these alternatives on line, that 20 to 30 create that clean coal burning tech- this is a supply-and-demand problem. percent would go down. nology. We have to have an all-of-the-above so- I would be willing to bet you that we Madam Speaker, I reserve the bal- lution. would lose a dollar off the price of gas- ance of my time. Let me talk about a few things be- oline within a week’s time because the Mr. SHIMKUS. Madam Speaker, may cause transportation is the big driver, speculators would say, whoa, they are I inquire how much time I have re- and gasoline is the most painful thing really serious about providing their maining? for the average consumer. I would sug- own energy needs. The SPEAKER pro tempore. The gen- gest to you today, and Members say We had a report last week, that it tleman has 16 minutes. this a lot, but I know a lot about this, turns out a lot of the experts believe Mr. SHIMKUS. I yield the gentleman alternative fuels are only a bridge to that we may be able to get three to five from Tennessee (Mr. WAMP) 10 minutes. the future. They are not the end all. times the amount of oil left in the en- Mr. WAMP. Madam Speaker, the re- That is not where we are going to end tire Middle East from our shale in ality of 2008 is that the nexus between up in terms of transportation. Utah, Colorado, and Wyoming, three to national security, energy, and the envi- We have such quick development in five times. They are saying there are ronment is the most important public ion lithium batteries that the people in maybe 900 billion barrels of oil left in policy issue that we face in this coun- the auto industry will tell you that we the Middle East, maybe a trillion, and try. The nexus has a lot of different an- will be plugging in our automobiles we may get 3 to 5 trillion barrels recov- gles to it, but these three issues to- very, very soon at a cost-competitive erable from shale in areas so much of gether is the greatest policy challenge price point, not like the hydrogen fuel which is off-limits. that we face. cell which is a 25-year proposal because The farm bill is now in a sense an en- the cost is prohibitive today, we can’t b 1730 ergy bill. The national security chal- pay $300,000 for a car, so we can’t have In some cases they say, well, we’ll lenges that we face are indeed tied to hydrogen fuel cell cars yet, but that give you an 8-year lease, but it will the cost of oil. Unfortunately, these technology is out there. And maybe it take over 7 years to get the permits. are the realities of what we face today. will work. Folks, we have to help our people. Tomorrow in Oak Ridge, Tennessee, But I will tell you what will work They are crying out, and we need to do at the Oak Ridge National Laboratory right now in the marketplace is elec- something now. which is one of the lead laboratories in tric cars, and they are coming quick. Mr. SALAZAR. Madam Speaker, I our country on alternative fuels, Plug-in hybrids, GM and Toyota, the just wanted to remind the members on biofuels, research, mostly looking at year after next, will be commercially the other side of the aisle that the Fu- cellulosic ethanol research and how to viable at a price point such that con- ture Gen project which was actually on best bring that about, tomorrow at sumers will use them. So fuels are im- track to be built in Illinois was actu- that laboratory my senior Senator, portant, but technology is going to de- ally pulled from being built because of Senator LAMAR ALEXANDER, will lay velop. Transportation is two-thirds of its costly forecast. out a Manhattan Project style ap- our oil consumption, and we have to So I would remind our Members on proach to energy. move quickly there because this is the other side of the aisle that coal is I don’t want to preempt what he is very, very painful. a very large part of our energy inde- saying there tomorrow, but he is joined But here is the technology oppor- pendent America formula; however, we tomorrow by Congressman BART GOR- tunity for the United States of Amer- have to do it in a clean way to make DON, a Democrat from our State who ica, and I call this the in-tech agenda. sure that we use clean coal-burning happens to be the chairman of the How did the budget get balanced for 4 technology. However, that technology Science and Technology Committee years here? I was here. I think SHIMKUS has not been perfected yet. here in the House on a Manhattan- was here. Four years ago, LEE TERRY Mr. SHIMKUS. Would the gentleman style approach because of this nexus, was here. For 4 years in a row it got yield since you mentioned Future Gen because there is a lot of clamor about balanced, not by cutting spending. We which is in central Illinois? global warming and because people are did slow the growth of spending below Mr. SALAZAR. I will yield. looking to our country to take some inflation for 4 years which was very ad- Mr. SHIMKUS. I appreciate your leadership, and the President of the mirable because that hadn’t been done yielding. United States has said we do need to in 40 years. But what we did do is we

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00126 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.102 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3315 had such a robust, export-driven U.S. You say, What are you doing intro- thank my friend from across the aisle economy that revenues surpassed ex- ducing that today? Well, that is just a for his comments on conservation and penses. That’s how the budget got bal- package of things that we are reintro- the sharing of the same root between anced. ducing again that we voted on in this conservatism and conservation. Per- Now what drove the revenues up? House over and over and over and over haps he would be willing to tell our Well, guess what, we led in an area of again in the last 14 years because I Vice President who said a few years the economy, and it boomed with our counted, and it is dozens and dozens of ago that conservation may be a per- leadership, called the information times that we have had these votes, sonal virtue, but it is no way to build world. Bill Gates and people like him and the people who were for more ca- a national energy policy, that he is so led the world that if you wanted the pacity lost. On the floor of this House, wrong. I am pleased to hear Members best in software and computers, for a on the floor of the Senate, we lost. of this body on both sides of the aisle long period of time they were from this Bill Clinton vetoed the bill to open voicing that opinion, that conservation country. I grew up when you didn’t up oil production in Alaska. I’m not efficiency in effect has to be part of our want to drive an American-made car. picking on him. Maybe that is what national energy policy. You didn’t want to have an American- people wanted then, but they sure I also was happy to hear his com- made television; for a while it had to don’t now. Why are we not responding? ments on electric cars. In Israel, which be Japanese. Cars had to be German. Why is our head buried in the sand? We I visited last August, and which I Things changed. We led in the informa- have to have an all-of-the-above policy would like to wish a happy 60th birth- tion world, and revenues surpassed ex- to compete. And we can balance the day to, Israel is leading the way on not penses. budget again. It is good for us. The just solar energy in which they are col- Guess what can happen early in the world sees us reducing our carbon foot- laborating with a California company 21st century if we get off our tails: we print, leading with new energy tech- on a huge solar photovoltaic project can lead in energy technologies. We nologies and solving the world’s prob- which will provide today, this is not can solve the world’s problem by being lems. some distant time in the future, today proactive and not even beat a retreat We sat on the couch from 1973 to 2008. will provide enough electricity for on climate change. I don’t want to Since the oil embargoes of 1973, we sat 400,000 homes. Solel, Inc., is the Israeli argue about how much man contrib- on the couch as Americans and didn’t company and Pacific Gas and Electric utes to climate change because, frank- make the changes we needed to make. is the partner here in the United ly, the science is not clear on that. But And now we are in a mess. A $122 a bar- it is an opportunity for us because if States. Not only are they a leader in rel mess. But we sat on the couch. we provide these technology solutions photovoltaic solar electric power, but Guess what happens when you sit on to the world, the budget will get bal- they are pioneering in Israel, as we the couch and you don’t exercise and anced again with a robust manufac- could be in this country, electric cars you don’t get ready; that’s where we turing-driven U.S. economy. Part of an that travel from one station to another are. We have to change. all of the above. and instead of charging the battery, We should provide the nuclear solu- You cannot vote against energy ca- they just switch it. They are working tions to the world and not be afraid of pacity in any segment of our economy on a battery that will be interchange- it because, like the speaker said, in or energy production without ending able between all cars. So one can drive France and Great Britain and the up either the lights go out or the price up to the gas station which will now be Netherlands and other countries, nu- is too high, access is not there, and an electric station or whatever fuel one clear is very much a part of their port- people are hurting. That’s where we are moves toward, remove the old battery folio because they have a balanced today. It is an all-of-the-above strat- that is run down, immediately get a portfolio, because they know they need egy. new one installed and drive away in a to do these things in order to reduce Let me close on this note. I am a con- matter of minutes rather than waiting their emissions. servative, and conservation is a good for it to be charged up. thing. People can begin to reduce de- While we are going to vigorously de- b 1745 bate next year this issue of global mand by conserving, and consumers warming, anybody in this place who can join us. We need to do better, and All these options are available, and says they are for cleaning up the air so does the consumer in this country. I’m here to say they’re available today. globally and making progress on zero Use less, be sensitive to lights, drive I would also dispute, however, the as- emissions and carbon sequestration less, move to smaller vehicles; demand sertion that nuclear power is non-emit- and reducing the carbon footprint and goes down and price goes down. We ting, that nuclear power is clean. First they are not for nuclear, they are kid- need to do that, and it is not wimpish of all, nuclear power does give off ding themselves because it has got to to propose that. It is a good, solid, pro- greenhouse gas emissions because, in be a part of the portfolio given the ca- American thing. Let’s be more effi- the process of mining and milling and pacity demands of today and tomor- cient, let’s move to alternatives. But transporting nuclear fuel, there are row. I’m saying an all-of-the-above strategy. fossil fuels burned. And if we are going to plug our cars Don’t say we can do all of this with re- There are, in my very district, in in, capacity has to increase on energy. newables. It is not there to meet to- fact, strontium, nydium, tritium, It is an all-of-the-above strategy. morrow’s demand. We have to have all among other cancer-causing radio- Just today in the House, Congress- of the above. Some things are long active particles being released into the man STEVE BUYER, with me as an origi- term and I know that, but right now we groundwater and even under normal nal co-sponsor, introduced the Main have to respond. This takes a balanced operations, into the air. Street U.S.A. Energy Security Act. It approach. And lastly, of course, the spent fuel opens the Outer Continental Shelf to I thank Members from both sides who has to be transported, again using fos- responsible energy production. It al- have that attitude, and I look forward sil fuels, to a repository, which may be lows energy development within the to tomorrow at the Oak Ridge National Yucca Mountain whenever that hap- ANWR. It streamlines the refinery per- Laboratory. pens to be opened. mitting process assisting new refin- Mr. SALAZAR. Madam Speaker, I In the meanwhile, every nuclear eries to be built in the United States commend the gentleman for his leader- plant and every nuclear shipment is a for the first time in 30 years. It sup- ship in the Renewable Energy Caucus potential terrorist target. We know ports the development of coal-to-liquid and his efforts to try and develop fu- that Mohammad Atta wrote, for in- plants. It supports the building of more ture products that come from renew- stance, in the papers that were found nuclear plants. It provides a 3-year pro- able energies. after 9/11, about canvassing New York duction tax credit extension for wind, Madam Speaker, I would like to yield City, flying on commercial airliners, biomass, geothermal, and many of the 5 minutes to my good friend from New and that he took notes about a nuclear renewable investments. It invests in re- York (Mr. HALL). plant that he flew over as a potential search and development programs for Mr. HALL of New York. Madam target that we believe to be Indian the energy needs of tomorrow. Speaker, I thank the gentleman and I Point.

VerDate Aug 31 2005 04:14 May 09, 2008 Jkt 069060 PO 00000 Frm 00127 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.104 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3316 CONGRESSIONAL RECORD — HOUSE May 8, 2008 So I would remind those on both Colorado. I’m an aggie. I don’t serve on it you can burn electricity. You can sides of the aisle that our diplomatic the committee. And the agricultural capture the carbon. It’s a clean way to stance around the world has been one sector is one of the few sectors that we do it. We can’t do it. of trying to stop other countries from have increased supply. So I do this For every dollar increase in a barrel taking a ‘‘peaceful nuclear program with all due respect. of crude oil, do you know how much and turning it into a military nuclear My concern is that when we the taxpayers have to pay to fund the program.’’ It’s a very gray area and a disincentivize the E85 fuel stations, the Air Force? 60 million additional dol- blurry line once one learns how to en- cellulosic debate, which is the next lars. Our Air Force is the number one rich fuel. It’s only a matter of how far bridge to get us to the RFS standard jet fuel user in the world. They’re beg- one enriches that fuel. that we passed in December, we can’t ging for help. It’s crazy. So there are some things that we get there without RFS, without cel- We are relying on imported crude oil. agree about. I totally agree that we lulosic. And we’re sending a bad signal Our national security depends on avia- need a moon shot technology revolu- when we have States without any fuel- tion fuel, and we are constrained by tion. We need to put all the resources ing stations and we have States that imported crude oil. Don’t you think of this country that we can behind this, do. And so that’s what brings me down. it’d be better to use our known natural and that American ingenuity can solve And I’m glad my colleague from New resources to help our Air Force to fly these problems. York talked about nuclear power. The our planes? But speaking as one who’s burning 20 former head of Greenpeace now sup- Coast Guard authorization bill, $1 in- percent biodiesel in my home heating ports nuclear power. The former head crease. $1 dollar increase in Coast oil, who’s getting 1,500 kilowatt hours a of Greenpeace now supports nuclear Guard authorization diesel added $24 month from wind power, who’s driving power. million to the cost of the Coast Guard an American-made hybrid today that Coal generating electricity is 50 per- to protect our border. gets 33 miles per gallon, and an SUV cent of our electricity generation in Mr. SALAZAR. Will the gentleman with 4-wheel drive, not a little tin can, this country. 50 percent. Nuclear’s 20. yield? but actually a pretty sizeable vehicle, I Our demand’s going to increase 30 per- Mr. SHIMKUS. Yes, sir. think these technologies are available cent in the next 20 years. Mr. SALAZAR. I just wanted to ask if they’re given the proper incentives, Texas tried wind power. They had the gentleman, what does this have to tax breaks and subsidies today, and if brownouts. ZACK WAMP is right. We do with the farm bill? we lead the way in government with need more supply. This is what China’s Mr. SHIMKUS. These are input costs. preferential purchasing and the deci- doing. China is building 40 nuclear You know the diesel price has doubled. sion-making that we make as the pow- plants in the next 15 years, not one. We I mean, my farmers, when they plant erful government that we are. haven’t done one in 30. China’s going to the corn, they’re in a tractor. When So I’m happy to be a part of this ex- build 40. they harvest the corn or the beans, China’s invested $24 billion in large citing time in our energy history. they’re in a tractor. It’s run by diesel Mr. SHIMKUS. Madam Speaker, I scale coal liquification technology. fuel. China is rapidly expanding its refining would like to save my time to close, so There’s an attack on ethanol today. I I would reserve the balance of my time. capacity. One of the reasons we com- was in committee today, I mean, 2 days Mr. SALAZAR. Madam Speaker, I pete is because we had low cost power. ago, let’s stop the RFS. It’s the only would also like to thank my colleague We don’t have low cost power anymore. on the other side of the aisle for many Those days aren’t here. Renewable thing that we have. And why is it of his comments. I understand that fuels aren’t going to fill the gap that under attack? Because input cost to this is a very important issue here in we have. production of commodity grain has America today moving America for- So we have to do, as Zach said, all of gone up because we can’t get low price ward towards an energy independent the above. In a column, Robert Sam- diesel fuel. America. uelson said, what to do about oil? The When we harvest the corn we take it Madam Speaker, however, it is my first thing, start drilling. It’s the easi- to a grain elevator. We do that with a understanding that my colleagues on est, quickest thing we can do. Unless big diesel truck, a big tractor trailer. the conference committee for the Food you want to put up with this. Unless We have independent truckers striking. Conservation and Energy Act have al- you want more, and, you know, you’re They drove around here a couple of ready come to an agreement that is a rural farm boy in Colorado. weeks ago, big signs. We can’t afford ready to be reported. We have a title, I try to remind people here that in the high cost of diesel. which is the energy title of the farm rural America we like big trucks. We And we know costs get passed on. bill, which directly deals with agricul- have to have working trucks. We can’t What’s some Democrats’ response? Oh, tural issues and renewable energy and haul a horse trailer with an electric en- we’ve got a great idea. Let’s tax the en- cellulosic-based ethanol. gine, with a four-cylinder engine. It ergy companies more. As a matter of fact, the energy title won’t go anywhere. We need powerful My challenge is, when have we ever creates a $1.01 per gallon cellulosic eth- trucks. We need trailers. We need raised a tax that’s lowered the price to anol tax credit to 2010. It also has in working trucks. a consumer? And I’ve challenged peo- $1.01 per gallon is based on a 56 cents That’s fossil fuels. That’s diesel. We ple; give me one example where we per gallon tax credit, producers credit, can’t pay these gas prices anymore. raised the tax and costs went down. No and it has a 45 cents per gallon blend- And we’re going to. Don’t get me on one’s challenged me. And I’m sure peo- ers credit. The total tax benefit is $400 climate change. All I want is trans- ple will look at that. million. parency. Another thing is let’s demand that And as the gentleman knows, we are If we’re going to tax the American the people we’re reliant on, pump more currently in a budgetary strain. We public they need to know they’re going crude oil. Oh, that helps us not become have PAYGO rules which we must to pay 50 cents more a gallon. And my reliant on imported cried oil. Let’s de- abide by. I think that adopting this charts are way over. mand that the people who are pro- motion would delay the passage of the Why can’t we go here? Why? Why viding us oil pump more. That’s why farm bill. And the chairman reminds can’t we access these areas to get nat- I’m so frustrated with this. I hope you all Members that motions to instruct ural gas? Anhydrous ammonia, the understand. We need to lower prices. are basically out of order at this time, Number 1 commodity input, natural The SPEAKER pro tempore. Without being that my colleagues in the con- gas. objection, the previous question is or- ference committee have come up with And what has your majority done? dered on the motion to instruct. an agreement and they are ready to re- You put areas off-limits. We’ve got There was no objection. port this. areas in your State in the last year we The SPEAKER pro tempore. The Madam Speaker, I yield back the bal- put off-limits. We didn’t bring on more question is on the motion to instruct. ance of my time. supply. The question was taken; and the Mr. SHIMKUS. Madam Speaker, I Great solution. China’s doing it, tak- Speaker pro tempore announced that want to commend my colleague from ing coal, gasifying it. When you gasify the noes appeared to have it.

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00128 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.106 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3317 Mr. SHIMKUS. Madam Speaker, on use the oil from Mexico; but wouldn’t by the government. They’ve been re- that I demand the yeas and nays. it be great if we were in a position that ported in The Wall Street Journal and The yeas and nays were ordered. we didn’t have to use the oil that’s pro- other major business magazines. The SPEAKER pro tempore. Pursu- duced by countries that don’t like us, First of all, the problem with the ant to clause 8 of rule XX, further pro- that really hinders, as the gentleman higher prices at the grocery store in ceedings on this question will be post- from Tennessee, ZACH WAMP, men- total is because of increased energy poned. tioned. Our foreign policy, we have to costs. The price per barrel of oil closed f counsel, we have to do things for coun- short of a $124 today. It’s grown dra- tries that really are trying to harm us matically, and ethanol is actually MOTION TO INSTRUCT CONFEREES economically, like Venezuela is right helping with those energy costs. Every ON H.R. 2419, FOOD AND ENERGY now. report that I have seen, and we will use SECURITY ACT OF 2007 Now, the bottom line here, the bot- this chart, has shown that we would be Mr. TERRY. Madam Speaker, I have tom line here is that every citizen of paying much more at the pump today a motion to instruct at the desk. the United States is paying higher if it were not for the ethanol that we’re The SPEAKER pro tempore. The prices at the pump. They are paying blending. Clerk will report the motion. more of their family budget to get to Here is a chart that shows today’s av- The Clerk read as follows: and from work, to and from the gro- erage price at the pump of $3.65. That Mr. Terry moves that the managers on the cery store, and they’re upset and right- would be $4.20 at the pump today if we part of the House at the conference on the fully so. So I am asked frequently, didn’t have the ethanol to blend. disagreeing votes of the two Houses on the what is the plan. Well, the problem is Now, you’re saying, well, that’s great Senate amendment to the bill H.R. 2419 (an there really isn’t a cohesive plan. We but, you know, it’s driving up the food Act to provide for the continuation of agri- do know that it is an issue of supply costs so I’m actually paying more. cultural programs through fiscal year 2012) and demand. be instructed to recede to the provisions con- Well, that’s not true, but we’re not Now, we’ve nibbled at the edges in an hearing about it in our media. tained in section 12312 subtitle C of title XII earlier bill this year that was signed by of the Senate amendment (relating to a cel- The reality is that today, because of lulosic biofuel production tax credit). the President in December on the de- ethanol being blended into gasoline and mand part. We did things to help Mr. TERRY (during the reading). that major difference of what you incent electric cars, hybrids, battery would pay at the pump, it would be as Madam Speaker, I ask unanimous con- technology; and probably the key com- sent to waive the reading of the mo- much as 40 cents more, maybe 60 cents ponent or foundation of that demand more, according to that information. tion. bill or lowering demand of oil was in- The SPEAKER pro tempore. Is there So actually the consumer is saving creasing the fuel efficiency of cars and around $305 to as much as $420 a year objection to the request of the gen- light trucks. That was called the Hill- tleman from Nebraska? because of ethanol. Terry bill. So I was one of the co-au- Now, every study that I have seen There was no objection. thors of that bill, and we got that in The SPEAKER pro tempore. Pursu- has shown that the direct impact of there. And that will increase fuel effi- ethanol, that part of the corn crop ant to the rule, the gentleman from ciency by 40 percent, in stages, to 2020, Nebraska (Mr. TERRY) and the gen- that’s diverted from feed or shipped to where I really see that we’re going to be manufactured into food, impacts tleman from Colorado (Mr. SALAZAR) end up earlier meeting those goals be- will be recognized for 30 minutes each. about 5 cents on a box of cereal. Every cause of battery technology and eth- study that I have seen from Texas The Chair recognizes the gentleman anol. A&M, the government, University of from Nebraska. We already have some vehicles out on Nebraska has said it is about 3 percent Mr. TERRY. Madam Speaker, I rise the road today using ethanol blends as today with my motion to instruct to high as 85 percent that are hybrid. So on grain-related foods. 3 percent. But make sure that we keep a tax credit you’re combining ethanol, lowering the yet you’re saving 15 to 20 percent at that the Senate has in its version of amount of oil that we have to use and the pump, and it is helping you in to- the farm bill for cellulosic energy and refine, and battery technologies at day’s world. the blending. It’s a dollar tax credit, lower speeds: for example, the Ford Es- Now, let’s talk about cellulosic. Cel- and that’s important that we have the cape. lulosic is where you take a biofeed higher number because cellulosic en- Now, let me broach into an area here stock, it can be just about any living, ergy or cellulosic ethanol, I think, is that I think is important for people to growing thing, and you use an extra where we are going to move to for our understand because our midterm strat- step in the process to take this and midterm energy strategy in this coun- egy, at least as I envision it, is going to break down the gluten, kind of the glue try, and that we really are at the very involve ethanol. And for some reason, that holds the cells together, that embryonic stages of its development, ethanol has been blamed for every ill holds the sugars; and when we are able as I’m going to show here in a few min- that has occurred globally. There has to dissolve those, then you can extract utes, and that because we are at the be- been severe droughts that have affected that and create ethanol. ginning stages of cellulosic energy, rice crops, and yet I read in U.S. papers Now this type of ethanol, by the way, taking it literally from the research that that’s caused by ethanol. It’s baf- has a higher Btu rating and has more laboratories to the experimental mar- fling how they make this connection, energy involved in it. So actually this ket, trying to produce it more than at and it’s wrong; but yet it seems like ethanol goes further for us. 1 gallon at a time, that we will need to, ethanol is causing more problems, as What type of products can we use? more heavily subsidize these beginning related by the media, than President Well, you can use things like processes. Bush is. Maybe President Bush is switchgrass. You can use wood pulp. You can use sweet sorghum. You can b 1800 happy that ethanol is pushing him off the front page. I don’t know. use anything as long as it’s a living, Now, I’m going to build our argu- All I know is most of what you’re growing organism. You don’t have to ment here of why I feel that cellulosic reading about ethanol is completely use food. So that’s why it’s important. energy or cellulosic ethanol is impor- bogus. And even people in the Corn Now, I’m going to say that ethanol is tant and why we need the $1 credit Husker State are now starting to tell here to stay, but I do believe ethanol, versus the lower number that was in me, We can’t rely on ethanol. We’re based on corn, is going to hit a ceiling; the House version to get to our ulti- learning that this is bad, because I am and so cellulosic, if we can then use mate goal here, which is energy inde- paying more at the grocery store. My these types of bioproducts and create pendence. eggs are more expensive because of eth- more energy or liquid fuel, then that is And by the way, I define ‘‘energy anol. Huh? Well, okay. Maybe some of more that we can displace. And we will independence’’ as not relying on OPEC the grain-related foods have been im- need a complete national energy strat- countries. We will need to use the nat- pacted by ethanol. egy, and that’s why I was curious when ural gas and oil from Canada, and we I want to show you a few charts here. ZACH WAMP came up here and talked will need to, for a variety of reasons, And by the way, these studies are done about LAMAR ALEXANDER announcing

VerDate Aug 31 2005 04:14 May 09, 2008 Jkt 069060 PO 00000 Frm 00129 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.108 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3318 CONGRESSIONAL RECORD — HOUSE May 8, 2008 his energy plan using one of our biolabs India, can now afford American food age. That’s 56 percent higher than that’s doing work on the cellulosic products. So it creates a larger de- when Speaker PELOSI was sworn in, and area. And I think their focus in that mand. it is 745 days after she promised this: lab has been on switchgrass and wood The Congressional Research Service ‘‘Democrats have a commonsense plan pulp. And so that will be interesting. issued a report that shows that be- to help bring down skyrocketing gas But the beauty of cellulosic is not tween 40 and 50 percent of the price of prices.’’ And that was when gas was only that it gets us much closer to en- food at the grocery store is dependent, just about $2 a gallon, not $3.64. ergy independence but that every re- directly dependent on the cost of trans- It’s also 948 days after Majority gion of the country has something to portation. I agree with you on that. Leader STENY HOYER said, ‘‘Democrats offer, whether it is wood in the north- You also talked about the issue of believe that we can do more for the east or northwest, or algae; holding the $1 tax credit, which the American people who are struggling to switchgrass, and even in my State you Senate has approved. It is my under- deal with high gas prices.’’ can go from switchgrass in the Mis- standing that the Conference Com- And it’s 653 days after Democrat souri Valley area where I live to corn mittee has agreed upon that. As a mat- Whip JIM CLYBURN said, ‘‘House Demo- to sweet sorghum out in the dry parts ter of fact, what has been created is crats have a plan to help curb rising because sweet sorghum grows stalks 12 $1.01 per gallon cellulosic ethanol tax gas prices.’’ feet tall and requires less than 12 credit through 2010. The $1.01 per gallon All of these statements were made in inches of rain. is based on the 56-cents-per-gallon pro- 2006 when the Democrats were making Where are we, and I’m getting back ducer’s credit, and then the 45-cents- statements to fool the American people to my friend from Colorado to why we per-gallon blender’s credit. This should on what they could do to make things need the higher, the $1, the higher incentivise people to start or compa- different. amount for the blending credit. nies to start producing ethanol from Well, they got elected. They’re now USDA and Department of Energy are cellulosic material. in leadership and what do we have? partnering together—it’s nice to see I believe that the Nation is capable of Blaming. We’re looking for this secret two of our agencies actually working producing a sustainable supply of plan that they have. They’ve never together—to open up several cellulosic about 1.3 billion tons of biomass per brought it forward, and we’re still ethanol plants over the next 2 years. year. As you know, across the Western waiting for it, months, years after they promised it, 2 years actually after They will produce a small amount, States of America, many trees have Speaker PELOSI promised that they had maybe 10 million gallons to start with, died because of the bark beetle prob- lems. This is biomass that we can actu- a plan to do this. but if we can’t use this product in the We have all the quotes on this and market and blend it, because we all ally utilize to produce alcohol to fuel our vehicles. the dates. Again, April 2006, October know this is first generation so it’s 2005, July 2006 are the dates, but what going to be expensive. It’s going to be b 1815 they’ve done is they’ve raised taxes about $5.50 a gallon to produce this I believe that the 1 billion tons of four times since they’ve been in office with the first-generation technology. biomass would be sufficient to probably on energy in this country, and what They will get it down to $3, but if we displace 30 percent of our country’s they do then is blame the President. can’t get past this first generation present petroleum consumption. Most people know, I think, that the stage, we’re never going to get to sec- So I do agree with the gentleman. President can’t pass laws. All the ond, third, fourth generation. So we Mr. TERRY. Thank you. I do appre- President can do is sign them or veto need that higher level of subsidy or ciate those comments. It’s good to them. It is our responsibility to do blending credit to make sure that the know that that is what is in the report. something about the way this country product that comes out of the new cel- Many of us have not been able to see is operated in terms of laws. We oper- lulosic ethanol plants is being used the report language yet to know what’s ate under the rule of law, and it’s no within the market. in or what’s not. So I appreciate you coincidence that article I of the Con- Now, my expectation is while maybe letting me know that’s in there. stitution is about the Congress and 2 to 3 years from now we’re producing At this time, I would like to yield to about our responsibilities, but the maybe 50 million, that’s a drop in the the gentlelady from North Carolina Democratic leadership has failed mis- barrel, by the way, 50 million gallons; I (Ms. FOXX). erably in dealing with those respon- really think that with this type of a Ms. FOXX. Madam Speaker, I thank sibilities. blending credit that we can then dou- my colleague for yielding, and I really I also agree with Congressman WAMP ble and triple and quadruple and maybe appreciate the good work that was that this is a national security issue, tenfold that 5 to 10 years later. And done by my colleague from Tennessee, and that in addition to providing addi- then we couple that with hybrid and ZACH WAMP, and my colleague from Il- tional supplies of energy, we must do electric technology, and man, I really linois, JOHN SHIMKUS, on this issue of conservation and we must be more effi- am optimistic about the future of our what do we do about energy independ- cient. I don’t think anybody on our country. ence, what do we do about ethanol, side of the aisle disagrees with that. Now, the gentleman from Colorado, I what do we do about the alternatives However, we have to do something to have one speaker that would like to that we have. increase the supply. say a few things. Do you want to take And I think it’s important that we We are dealing with a short-term and some time right now or let us finish up continue to point out the problems mid-term and long-term issue, and part and you can have some time and I will that we’re facing in this country on of the problem that we’re dealing with take 1 minute for close? achieving energy independence and to is the fact that in 1995 President Clin- I yield to the gentleman from Colo- point out that we are dealing with ba- ton vetoed the bill that would have al- rado. sically a do-nothing Congress in terms lowed us to drill in ANWR. We have Mr. SALAZAR. I appreciate the gen- of this issue. We are not dealing with radical environmentalists who basi- tleman. this issue now, and I share the concern cally believe, if all the human beings in Let me just say I agree with you on that my colleague from Nebraska Mr. the world were to disappear, the world everything that you have said to this TERRY expressed about how every- would be a better place because we’re point. Ethanol is being blamed for the thing’s being blamed on ethanol and the ones to blame for all of the prob- high cost of food prices. But what the George Bush. lems that we have in this country and news media forgets to tell you is that The Congress likes to blame George in the world. we’ve had the shortest wheat crop on Bush for everything, thinking that’s I don’t believe that. I believe the record worldwide for many, many the mood of the American people, and good Lord gave us the resources that years. They also forget to tell you that the leadership thinks it can deflect any we need and the brains to use those re- because this country continues to bor- responsibility for the problem that sources and extract them. We should be row money from China, the value of we’re seeing now. drilling in ANWR. I’ve been to ANWR, the dollar continues to go down, and so But I want to point out that right I’ve been to Alaska, I’ve seen what hap- developing countries, like China and now gasoline is $3.64 a gallon on aver- pens there. The people who are opposed

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00130 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.110 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3319 to drilling there won’t even go to Alas- to using coal. They’ve said no to using mand on oil products, on oil and gaso- ka to see the situation there. I think nuclear. Everything they’ve done is say line, $124, just shy of $124 per barrel that’s terribly, terribly shortsighted. no, while Republicans have repeatedly today, and my friends, it’s just going We could have started doing that said yes. Yes to Americans who drive to keep going up. And we need a plan many years ago, and we wouldn’t be in to work and school. Yes to gasoline to make sure that we protect our econ- this situation that we’re in now be- prices that Americans can afford. Yes omy and your budget. cause that, along with other things to American oil. Yes to American com- We know that we can’t continue to that we could do, such as drilling in mon sense in the rules, and yes to an pay these type of prices at the pump. the outer continental shelf, such as American future of abundant, afford- We know that what we’re experiencing creating other resources, such as cel- able energy that working people can af- with our inflation at the grocery store lulosic ethanol, would be providing us ford to buy. is about 80 percent related to those what we need. I don’t think the Democrats are high costs of energy. And I also agree, again, with Rep- going to be able to continue to fool the We have a solution before us with resentative WAMP that energy inde- American people that someone else is ethanol, corn-based ethanol. Again, pendence means to me we are not going responsible for the problem that we’re just in a summary here, the ethanol to be dependent on OPEC countries. We now facing. They’re squarely respon- that is blended into the gasoline today don’t want to be dependent on people sible. They continue to say no, Repub- is actually making it cheaper. That’s who hate us. We don’t want to help fuel licans continue to say yes, and I think allowing you to save more. You’re not the terrorists. One of the things that the American people are going to un- going to be spending as much on gaso- we’re doing is providing money for the derstand that in the short-term and in line if it were not for the blend of eth- terrorists to fight us, and we don’t need the long-term. anol in it. to be doing that. Mr. SALAZAR. Madam Speaker, may b 1830 We do need to conserve. We do need I inquire how much time either side to use every resource available to us in has? The argument that food has in- this country, and it is time that the The SPEAKER pro tempore (Ms. creased because of ethanol is not accu- Democrats exert some leadership in HIRONO). The gentleman from Colorado rate. In fact, these are just several of this area instead of blaming George has 30 minutes remaining. The gen- the publications that have gone on record, Wall Street Journal, CNN, have Bush and blaming others for the prob- tleman from Nebraska has 31⁄2 minutes lem that we’re facing. They absolutely remaining. all said that it’s a fallacy that food refuse to take charge of what’s hap- Mr. SALAZAR. Is the gentleman pre- prices are going up because of ethanol. pening here. pared to close? So net, it’s helping our citizens, but I heard today on a radio program Mr. TERRY. I have closed, and I will the future isn’t with corn-based eth- 1 anol, it’s with cellulosic. Cellulosic is that there is a theory that they want probably use my 3 ⁄2 minutes for clos- to make the American people as miser- ing. going to supplement this ethanol. And able as they possibly can because Mr. SALAZAR. Madam Speaker, its potential is immense. President Bush is still our President, today I couldn’t agree more with many So I’m proud to learn from the gen- and they are so good at blaming him of the comments that my friend from tleman from Colorado that the dollar for things rather than accepting re- Nebraska has made. He comes from producers credit—I think I called it sponsibility for their own actions. I farming country like I do. We under- blenders credit a couple of times dur- think that has to be one of the most stand the value of the fuel that goes ing the statement—but that 101 pro- cynical things that anybody could pos- into your tractors and the value of the ducers credit, coupled with the blend- sibly be doing in this country. It’s our fuel that goes into your pick-up trucks ing credit, is what’s going to lift cel- responsibility here to do everything to run a farming operation. lulosic ethanol for us into the market that we can to help the American peo- I believe that ethanol is a temporary and make it a viable way that we can ple, not do everything that we can to fix to our energy independence in secure our independence from the make them miserable. America. We need to start looking at OPEC producers. I want to give you a quote from In- new technologies such as cellulosic- Knowing that that is in the farm bill vestors Business Daily from April 29, based technology. We understand that conference report, I feel comfortable, 2008. The title of the article is ‘‘Con- relying on corn-based ethanol is only a then, not instructing the farm con- gress vs. You,’’ and one of the quotes, short-term solution. ference, especially since there is no ‘‘The current Congress, led on the Everything that I believe that my more conference. House side by a Speaker who promised colleague has in his motion has been I ask unanimous consent to withdraw a ‘common sense plan’ to cut energy addressed in what the conference com- my motion to instruct. prices 2 years ago, has shown itself to mittee has brought forward, the higher The SPEAKER pro tempore. Without be incompetent and irresponsible.’’ $1 per gallon cellulosic ethanol tax objection, the motion is withdrawn. Again, we have quote after quote credit. I think that these are provi- There was no objection. after quote from business journals and sions that Mr. TERRY’s motion has. f from responsible people to show us that I only have one concern, Madam SPECIAL ORDERS the problems that we’re facing now are Speaker, is that if we were to adopt The SPEAKER pro tempore. Under not based in our situation with the war this motion, I believe that it could po- the Speaker’s announced policy of Jan- but is based in the incompetence and tentially delay the passage of the farm uary 18, 2007, and under a previous the do-nothing of this Congress. bill, and so I would ask my colleague, order of the House, the following Mem- And again, let me point out, Presi- Mr. TERRY from Nebraska, to consider dent Clinton vetoed H.R. 2491, the Bal- bers will be recognized for 5 minutes withdrawing his motion. each. anced Budget Act of 1995, which would Mr. TERRY. Would the gentleman have allowed environmentally respon- yield? f sible exploration for an estimated 10.4 Mr. SALAZAR. Yes. The SPEAKER pro tempore. Under a billion barrels of oil in a tiny sliver of Mr. TERRY. I plan to mouth those previous order of the House, the gentle- ANWR. Senate Democrats have twice words at the end of my ending com- woman from California (Ms. WOOLSEY) blocked energy exploration in ANWR ments. is recognized for 5 minutes. via the Energy Policy Acts of 2003 and Mr. SALAZAR. I would thank the (Ms. WOOLSEY addressed the House. 2005. They have voted ‘‘no’’ on the gentleman, and with that, Madam Her remarks will appear hereafter in American-Made Energy and Good Jobs Speaker, I yield back the balance of the Extensions of Remarks.) Act which would open ANWR to explo- my time. f ration, over and over again. They’ve Mr. TERRY. Madam Speaker, I The SPEAKER pro tempore. Under a said no to new refineries. They’ve said thank the gentleman from Colorado. previous order of the House, the gen- no to the Energy Policy Act. As others In closing, what we’re faced with is tleman from Texas (Mr. POE) is recog- have pointed out, they’ve said no use restricted supply, ever increasing de- nized for 5 minutes.

VerDate Aug 31 2005 04:14 May 09, 2008 Jkt 069060 PO 00000 Frm 00131 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.112 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3320 CONGRESSIONAL RECORD — HOUSE May 8, 2008 (Mr. POE addressed the House. His and each one of them died a nameless and tleman from Florida (Mr. BILIRAKIS) is remarks will appear hereafter in the lonely death. And each one of their mothers, recognized for 5 minutes. Extensions of Remarks.) whether she realizes it or not, will never be (Mr. BILIRAKIS addressed the f quite the same. And all the gifts that these House. His remarks will appear here- The SPEAKER pro tempore. Under a children might have brought to humanity are after in the Extensions of Remarks.) previous order of the House, the gen- now lost forever. Yet even in the glare of such f tragedy, this generation still clings to a blind, tleman from Texas (Mr. GENE GREEN) The SPEAKER pro tempore. Under a is recognized for 5 minutes. invincible ignorance while history repeats itself previous order of the House, the gen- and our own silent genocide mercilessly anni- (Mr. GENE GREEN of Texas ad- tleman from Pennsylvania (Mr. TIM hilates the most helpless of all victims, those dressed the House. His remarks will ap- MURPHY) is recognized for 5 minutes. yet unborn. pear hereafter in the Extensions of Re- Madam Speaker, perhaps it’s time for those (Mr. TIM MURPHY of Pennsylvania marks.) of us in this Chamber to remind ourselves of addressed the House. His remarks will f why we are really all here. Thomas Jefferson appear hereafter in the Extensions of The SPEAKER pro tempore. Under a said, ‘‘The care of human life and its happi- Remarks.) previous order of the House, the gen- ness and not its destruction is the chief and f tleman from North Carolina (Mr. only object of good government.’’ The phrase The SPEAKER pro tempore. Under a JONES) is recognized for 5 minutes. in the 14th amendment capsulizes our entire previous order of the House, the gen- (Mr. JONES of North Carolina ad- Constitution, it says, ‘‘No State shall deprive tleman from New Jersey (Mr. GARRETT) dressed the House. His remarks will ap- any person of life, liberty or property without is recognized for 5 minutes. pear hereafter in the Extensions of Re- due process of law.’’ Madam Speaker, pro- (Mr. GARRETT of New Jersey ad- marks.) tecting the lives of our innocent citizens and dressed the House. His remarks will ap- f their constitutional rights is why we are all pear hereafter in the Extensions of Re- here. The SPEAKER pro tempore. Under a marks.) The bedrock foundation of this Republic is previous order of the House, the gen- f the clarion declaration of the self-evident truth tleman from Oregon (Mr. DEFAZIO) is that all human beings are created equal and The SPEAKER pro tempore. Under a recognized for 5 minutes. endowed by their Creator with the unalienable previous order of the House, the gen- (Mr. DEFAZIO addressed the House. rights of life, liberty and the pursuit of happi- tleman from Indiana (Mr. BURTON) is His remarks will appear hereafter in ness. Every conflict and battle our Nation has recognized for 5 minutes. the Extensions of Remarks.) ever faced can be traced to our commitment (Mr. BURTON of Indiana addressed f to this core, self-evident truth. the House. His remarks will appear The SPEAKER pro tempore. Under a It has made us the beacon of hope for the hereafter in the Extensions of Re- previous order of the House, the gen- entire world. Madam Speaker, it is who we marks.) tleman from Illinois (Mr. WELLER) is are. And yet today another day has passed, f recognized for 5 minutes. and we in this body have failed again to honor The SPEAKER pro tempore. Under a (Mr. WELLER of Illinois addressed that foundational commitment. We have failed previous order of the House, the gen- the House. His remarks will appear our sworn oath and our God-given responsi- tleman from California (Mr. DREIER) is hereafter in the Extensions of Re- bility as we broke faith with nearly 4,000 more recognized for 5 minutes. marks.) innocent American babies who died today (Mr. DREIER addressed the House. f without the protection we should have given His remarks will appear hereafter in them. The SPEAKER pro tempore. Under a the Extensions of Remarks.) Madam Speaker, let me conclude in the previous order of the House, the gen- f hope that perhaps someone new who heard tleman from Ohio (Mr. RYAN) is recog- this Sunset Memorial tonight will finally em- The SPEAKER pro tempore. Under a nized for 5 minutes. brace the truth that abortion really does kill lit- previous order of the House, the gen- (Mr. RYAN of Ohio addressed the tle babies; that it hurts mothers in ways that tleman from Minnesota (Mr. KLINE) is House. His remarks will appear here- we can never express; and that 12,890 days recognized for 5 minutes. after in the Extensions of Remarks.) spent killing nearly 50 million unborn children (Mr. KLINE of Minnesota addressed f in America is enough; and that the America the House. His remarks will appear hereafter in the Extensions of Re- SUNSET MEMORIAL that rejected human slavery and marched into Europe to arrest the Nazi Holocaust is still marks.) The SPEAKER pro tempore. Under a courageous and compassionate enough to f previous order of the House, the gen- find a better way for mothers and their unborn U.S. FOREIGN POLICY tleman from Arizona (Mr. Franks) is babies than abortion on demand. recognized for 5 minutes. So tonight, Madam Speaker, may we each The SPEAKER pro tempore. Under Mr. FRANKS of Arizona. Madam Speaker, I remind ourselves that our own days in this the Speaker’s announced policy of Jan- stand once again before this House with yet sunshine of life are also numbered and that all uary 18, 2007, the gentleman from Cali- another Sunset Memorial. too soon each one of us will walk from these fornia (Mr. SHERMAN) is recognized for It is May 8, 2008, in the land of the free and Chambers for the very last time. 60 minutes as the designee of the ma- the home of the brave, and before the sun set And if it should be that this Congress is al- jority leader. today in America, almost 4,000 more defense- lowed to convene on yet another day to come, Mr. SHERMAN. Madam Speaker, I less unborn children were killed by abortion on may that be the day when we finally hear the thank the leadership for allocating 1 demand. That’s just today, Madam Speaker. cries of innocent unborn children. May that be hour to me of floor time. That’s more than the number of innocent lives the day when we find the humanity, the cour- As a senior member of the Foreign lost on September 11 in this country, only it age, and the will to embrace together our Affairs Committee and as Chair of the happens every day. human and our constitutional duty to protect Subcommittee on Terrorism and Non- It has now been exactly 12,890 days since these, the least of our tiny, little American proliferation, I will take the next hour the tragedy called Roe v. Wade was first brothers and sisters from this murderous to focus on our foreign policy and to handed down. Since then, the very foundation scourge upon our Nation called abortion on see whether it is focused correctly on of this Nation has been stained by the blood demand. the threats that face us in the first of almost 50 million of its own children. Some It is May 8, 2008, 12,890 days since Roe quarter of the 21st century. Then, if of them, Madam Speaker, died and screamed versus Wade first stained the foundation of time permits, I will discuss an issue— as they did so, but because it was amniotic this Nation with the blood of its own children, some would say a threat—that will face fluid passing over the vocal cords instead of this in the land of the free and the home of the us in the second and third quarters of air, no one could hear them. brave. the 21st century. And all of them had at least four things in f Madam Speaker, I believe that our common. First, they were each just little ba- The SPEAKER pro tempore. Under a foreign policy has been adrift since the bies who had done nothing wrong to anyone, previous order of the House, the gen- end of the Cold War because we have

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00132 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.117 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3321 been unable and unwilling to prioritize. could possibly deprive our enemies of a this doctrinal conflict has come up. Our national case of ADD forces us to conference room. The fact is that ter- You see, we are for self-determination focus on whatever international objec- rorists can and do plot against us in of Kosovo just as we were for the self- tive flits across our consciousness. Somalia, in Yemen, in countless other determination of the Slovenes and the We have an enormous national ego places, but of course these don’t count Croats, which led to the split up of which causes us to believe that we can because CNN isn’t there. Remember, Yugoslavia, and we were for the self-de- simultaneously and successfully pursue however, that 9/11 was plotted in an termination of the various republics all our objectives, and that we can de- apartment building in Hamburg, Ger- that made up the Soviet Union. Four feat evil everywhere we choose to no- many, which makes you wonder why times that we were for self-determina- tice it. As a Nation, we punish politi- we are staying in Iraq to make sure tion—Kosovo, Slovenia, Croatia, and cians and pundits who dare to deflate that terrorists don’t have a place to the Soviet Union itself. our enormous national ego. plot against us. So our fixation with But we are against self-determina- Our bureaucracy opposes any effort Iraq prevents us from prioritizing our tion and instead for territorial integ- to prioritize our objectives because foreign policy, prioritizing the need to rity in at least four areas also close to that effort conflicts with the bureau- protect Americans from nuclear at- Russia. We are against self-determina- cratic imperative to please every one tack. But that is just one of the obsta- tion of the Transdniestra region of of its bureaus. Imagine having to go to cles we face. Moldova. We are against self-deter- the Moldova desk in the State Depart- The second obstacle we face is an mination for the northern part of ment and say that Moldova’s sov- unhealthy fixation on our reflexive, un- Kosovo that would like to self-deter- ereignty over its Transdniestra region thinking and implacable anti-Russian mine itself out of Kosovo and rejoin cannot be a major national priority. attitude. Now, I don’t mind being anti- Serbia. And we are against self-deter- The State Department is pretty much Russian. I do mind being implacably, mination for two regions of the Repub- on autopilot, with each of its bureaus unthinkingly, and reflexively anti-Rus- lic of Georgia, Abkhazia and South focusing on the bureau’s function, the sian. Now, part of this stems from our Ossetia. Eight conflicts; four times we bureau’s priority, with no one setting great national hubris. Our foreign pol- support self-determination, four times overall national priorities. icy establishment doesn’t like Mr. we support territorial integrity. As a Nation, we have sacrificed 4,000 Putin or his so-called successor, and we Some would say we are inconsistent. of our finest, and untold treasure. We don’t think that we should have to ac- This is not the case. We are consist- did so in Iraq because our leaders told commodate anybody we don’t like. The ently anti-Russian; consistently, us it was necessary in order to protect fact is that sometimes you do have to unthinkingly, and reflexively anti-Rus- ourselves from weapons of mass de- do business with people you don’t like sian. In all eight of these conflicts, struction, weapons that did not exist. if you want to carry out a reasonable, Russia had a strong interest. In most of But just because we are able to sac- prioritized foreign policy. Our politi- these conflicts, we had virtually no in- terest. Who amongst our constituents rifice treasure and lives to protect our- cians tell us that we are at war. Well, talks to us about Abkhazia or South selves from a nuclear program that did the last truly great wartime leader of Ossetia? Yet every time, in all eight in- not exist does not mean that we can the United States was President Roo- stances, we took a very strong and de- sacrifice our national ego and our bu- sevelt, and he did business with Putin’s reaucratic imperatives to focus on real termined anti-Russian position. most venal predecessor. We also have a conflict with Russia threats that do exist. Now, this reflexive, anti-Russian at- over the proposal to build a missile de- Now, in addition to these long-stand- titude grew up in large part because of fense system in the Czech Republic and ing institutional and psychological the individuals who are making our in Poland. barriers to prioritization, at present we foreign policy decisions today. These face three practical barriers that also are people who spent their lives plan- b 1845 prevent us from focusing on the na- ning and studying and writing their Russia believes that we are rushing tional threats that we should really theses on how to surround and defeat to install these installations to create focus on, that we should give our pri- the Soviet Union. Old habits die hard, anti-Russian facts on the ground in ority to. The first of these is our but yesterday’s priorities should not Eastern Europe. Our position is that unhealthy fixation on Iraq. This fixa- dictate tomorrow’s priorities. those missile defenses will protect Eu- tion began with President Bush. It now Now, Putin has given us much to be rope from a possible Iranian nuclear- afflicts us all. angry about, but let us take a look at tipped missile. But the Europeans don’t Now, we are told that morally we whether this new Cold War, at worst, particularly want our missile defense must stay in Iraq because we ‘‘broke or very cold peace, at best, started system. We have to bribe the Czechs it,’’ but we are told this by the same with Moscow or started in Washington. and the Poles to let us put them there. people who rightfully point out that Now, one issue that has faced us The Germans and the French would whatever shape Iraq is in today and throughout foreign policy is the doc- just as soon we not build them. whatever shape we leave it in is still trinal battle between the doctrines of Why are we taking this aggressively superior to where it was under Saddam. self-determination and territorial in- anti-Russian position? One would say Remember, Saddam killed hundreds tegrity. Self-determination, the right that the goal is to protect Europe from and hundreds of thousands of Iraqis of a group of people within a country Iranian nuclear weapons. But wait a through his policies. We’re told we to split up, split off, and form their minute. We have not even tried to bar- must stay in Iraq because we risk a hu- own country; territorial integrity, the gain with Russia, to seek their help in manitarian problem if we leave, while right of a nation to continue to have preventing Iran from getting the nu- at the same time this Nation ignores and to possess and to control its terri- clear weapons in the first place. Per- actual humanitarian holocausts that tory. haps in return for not building a mis- are going on in places like Somalia, In fact, the two great wars fought on sile defense system, we could achieve Chad and Congo. Those humanitarian American soil were on opposite sides of greater cooperation from Moscow in holocausts don’t count because CNN this doctrinal distinction. Our first stopping Iran’s nuclear program. But isn’t there. And CNN isn’t there be- great war on our own soil was our war we are unwilling to prioritize. We have cause our troops aren’t there. So our for self-determination, our war for as a priority creating anti-Russian troops must stay in Iraq because CNN independence. The second great war facts on ground in the Czech Republic is in Iraq, and CNN is in Iraq because was the war to protect our territorial and Poland; and, accordingly, we can- our troops are in Iraq. So we must stay integrity from those who sought south- not sacrifice the opportunity to build there because we are there. This is no ern independence. So we have been on missile defense systems in those coun- way to prioritize our foreign policy. both sides of this doctrinal divide. We tries just to get Moscow’s critical help We are told that if we leave Iraq, ter- face this same divide now, territorial in preventing Iran from developing nu- rorists could meet there and plot integrity versus self-determination. clear weapons. against us. Imagine how big a national Let us examine eight places in the I could give you a number of other ego we must have to think that we general neighborhood of Russia where examples. Let me just focus on one,

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00133 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.144 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3322 CONGRESSIONAL RECORD — HOUSE May 8, 2008 and that is the recent commercial dis- vival. I will deal briefly with the last So I have dealt with deterrence and putes between Ukraine and Russia. In three of these and then focus on the interception. Let us turn to survival, those disputes we have told these two first, prevention. And by ‘‘prevention’’ civil defense. This is a subject you are groups of former Communists of these I mean preventing the wrong people not allowed to talk about on the House formerly Communist countries that it from getting the most powerful weap- floor or anywhere else in polite society. is wrong to sell goods, in this case, nat- ons. The First Amendment protects many ural gas, for its fair market value. We Now, deterrence and interception are, kinds of speech but not talking about have told former Communists that cap- I think, false hopes because they miss civil defense because you have to turn italism is wrong. Why? Because cap- the mark on the delivery system that to Americans and say your government italism would allow Russia to get more is most likely to be used by those who may not be able to protect you from for its natural gas, and our tendency to wish us harm. For 20 and 30 years, we nuclear attack. We may be in a cir- be reflexively anti-Russian exceeds our have talked on this floor about Star cumstance where we can reduce casual- tendency to support capitalism. So we Wars or national missile defense, how ties from 200,000 down to 100,000. Our face a second practical block to we’re going to hit a bullet with a bullet problem is that the American elec- prioritizing our foreign policy, and in outer space. Maybe someday it will torate finds the death of even 100 that is our instinctively anti-Russian work. But missile defense can be ren- Americans to be unthinkable. attitude. dered irrelevant. It doesn’t take a Now, we could cut casualties in half But we also face a third block to rocket scientist to deliver a nuclear or by more than half if we prepare civil prioritization, which is our failure to weapon to an American city. A nuclear defense. But if a nuclear weapon the recognize how important it is to get weapon is a bit smaller than a person, size of the one tested by North Korea the support of world opinion, particu- in most cases. You could smuggle one went off at the White House, about 2 larly opinion in Western Europe, in inside a bale of marijuana. miles away, the people in this room order to achieve what should be our Now, we have had a lot of talk on would survive, but none of us would number one national priority, which is this floor about how to make our bor- know what to do or where to turn for information. Should we shelter in protecting the American people from ders more secure and deal with the place? Should we flee, and if so, in nuclear weapons. issue of illegal immigration. To date, Now, think back to 9/11. We had the our efforts have increased the fee what direction? We need a system to sympathy of the whole world. People charged by the so-called coyotes to tell Americans what to do. And we were ready to follow our leadership. smuggle an illegal immigrant into the have to take Americans into our con- People demonstrated in favor of Amer- United States up from $1,000 to $1,500. fidence and tell them that this is a real ica in places where they had not dem- This may have a substantial impact on threat, that we are working to reduce onstrated in favor of America before or those people who aspire to work in the the threat, and that we are working to prepare for the threat. since. But then what did we do? We ig- United States for minimum wage. But Now, I know that survival is some- nored Kyoto. We invaded Iraq. We dis- whether the cost of bringing in some- thing that we dealt with in the 1960s thing the size of a person is $1,000 or dained the International Court of Jus- when we did those bomb drills I was $10,000 or $100,000 is not going to matter tice. We built Guantanamo. We angered talking about. What might have been much to the Iran Revolutionary Guard our friends and our allies with unilat- absurd when we did it is now laughed Corps. We are not going to have bor- eral approaches on the wrong set of at when it would be useful because in ders so secure that a truly sophisti- issues. Today, who would say that the the 1960s, had we been hit by our adver- cated terrorist group or intelligence United States has the support or the sary, it might well have been a thou- agency will not be able to bring a bomb sympathy of the world? We need to sand 10-megaton weapons. No one could across our borders. Keep in mind we prioritize. The real threat is nuclear have received medical care. There weapons in the wrong hands. have 300 million legal border crossings would be no relief into the city from Now, I am going to avoid using the every year. We have zero patrol offi- outside the city. The living would envy term ‘‘weapons of mass destruction’’ cers, zero on the entire border between the dead. because that has been a phony and mis- Alaska and Canada. Between Canada In contrast, Iran might develop one leading term. It puts nuclear weapons and the lower 48, we have roughly one or two 15-kiloton weapons, 1 to 2 per- in the same category as chemical or bi- security official every 30 or 40 miles, cent the size of the weapons of the So- ological weapons. Only nuclear weap- and that person is only working 8 hours viet Union, less than 1 percent of the ons could kill millions of Americans. a day. So smuggling a nuclear weapon number. We would be able to bring in Now, I don’t want this speech to be will not be difficult for any adversary medical care from outside. We should too depressing. We are vulnerable. We sophisticated enough to get its hands talk about it. We should plan for it. are institutionally and psychologically on a nuclear weapon in the first place. But I know that no politician or pundit unable to focus on how to reduce our Not only is smuggling easier, it gives is allowed to do so; so I will stop and vulnerability. But we are still far safer the perpetrator plausible deniability. If instead shift to a discussion of preven- than we have been at other times in you send an intercontinental ballistic tion, keeping nuclear weapons out of our history. In the 1960s we faced a far missile into the United States, we will the worst hands. greater threat. At that time we faced know where it came from. On the other Now, I know that we should prevent the risk of thousands of Soviet nuclear hand, if you smuggle one here, you can the worst regimes and organizations weapons, 10 megatons or more each. always deny that you did it or leave from obtaining nuclear weapons. How Now we face less than one five-hun- some plausible deniability, and deter- do we do that? Maximum carrots, max- dredth the arsenal of the Soviet Union rence will be undermined, and, as is ob- imum sticks, maximum focus. We need in terms of number and less than one vious, interception is made irrelevant to prioritize. We need to maximize our five-hundredth in terms of the strength if weapons are smuggled into the options. And, finally, maximum link- of each nuclear device. So we are far United States. age, by which I mean connecting our safer now than we were when we, as Now, I know that the great dictators objective of deterring a nuclear Iran or baby boomers, as elementary school really want an intercontinental bal- a nuclear North Korea with objectives students, were ducking under our desks listic missile. It’s the Viagra of ty- that are important to other countries, in air raid drills in order to learn how rants. But as a practical matter, our not only North Korea and Iran them- to protect ourselves from a massive So- enemies will determine that smuggling selves but Russia and China. viet nuclear attack. a nuclear weapon makes more sense for Let’s first look at North Korea. I Now, let us say that we could over- them. It provides them with plausible think North Korea is less important come our obstacles to a rational, deniability to deter deterrence. It than Iran because North Korea is not prioritized foreign policy. What would makes irrelevant all of our missile de- ambitious. It wishes only to survive be our response to the nuclear threat fenses. The other problem with deter- and to oppress its people in its own ter- that we face? There are four possible rence is that Iran may not be ritory. What we need in order to deal responses to a nuclear threat: Preven- deterrable, and I will get to that in just with North Korea is the carrot of offer- tion, deterrence, interception, and sur- a few minutes. ing a nonaggression pact, a treaty in

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00134 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.145 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3323 which we would agree not to invade would it have on Iran’s policies? Imag- breeding the horse. All they have to do North Korea. ine terrorism with impunity. Iran is al- is continue to create the fissile mate- That’s what the North Koreans have ready rated by our State Department rial and then restart their asked for. If the North Koreans are as the number one state sponsor of ter- weaponization program even a year or going to get rid of their nuclear weap- rorism. Imagine what happens if Iran two from now and they will be well on ons, you would think at a minimum has nuclear weapons. It puts us in a po- target to have a nuclear weapon by the they would want a promise from the sition where we cannot respond, even if middle of next decade. United States that we’re never going to we know that Iran is responsible for So how do we know that they are de- invade. Believe it or not, the American terrible terrorist acts. veloping the fissile material tech- response has been no. Why? Because Now not only do you provide impu- nology? Because this is the one thing the neocons never want to give up their nity for Iran to engage in terrorism, the whole world agrees on. The cen- dream of invading North Korea. This but you put us for the first time since trifuges are turning at Natanz. Iran has made progress at the six-party the end of the Cold War eyeball to eye- says so. And they brought in the IAEA talks uncertain at best. We are unable ball with a hostile and aggressive nu- to look at it, and the IAEA says so. to prioritize our need to eliminate clear power. You are going to end up And Bush says so. Iran’s enemies and North Korea’s nuclear weapons pro- with a Cuban missile crisis every week, Iran’s friends say so. And we have seen gram over the psychological need of or at least several a year. Whether it is the pictures. Iran is creating the tech- neocons to dream of invading North IEDs smuggled from Iran into Iraq or nology to enrich uranium and create Korea. Instead, we need maximum car- whether it is Iranian gunboats chal- that fissile material. rots for the North Korean regime if lenging American ships in the Persian Of course, Iran says it is all about they will verifiably and permanently Gulf, Iran will provoke us and will test generating peaceful electricity. Wait a get rid of their entire nuclear program. us. We will go eyeball to eyeball with a minute. Iran, as we know, creates an We also need maximum sticks. We regime considerably less sane than the awful lot of petroleum. As a byproduct don’t have many sticks. China has the regime presided over by Khrushchev. of pumping petroleum, you often get sticks. North Korea is utterly depend- Now even if we survive dozens of con- natural gas. Iran has no way to export ent on Chinese aid, and yet we have frontations with a hostile nuclear Iran, that natural gas. That natural gas is a failed to use linkage. In all our discus- there may come a day, and we pray for useless byproduct. Iran flares the nat- sions with China, we have told them this day, when the Iranian Government ural gas. Iran flares enough natural gas that our attitudes toward trade and will see itself about to be overthrown. to generate more electricity than you their currency manipulation will not Do you think those mullahs are going could generate at ten Bushehr-style re- be affected by their attitudes on non- to imitate the Soviet Communists, actors. Well, if you have free flared proliferation. We are a nation that has shrug their shoulders and walk off the natural gas, that is by far the cheapest lost 4,000 lives to protect us from world stage? Gorbachev wrote a book way to generate electricity. But Iran Saddam’s nuclear program that did not and went on a speaking tour. Do you isn’t interested so much in generating exist, but we are unwilling to link our think that is what is going to happen? electricity. They are interested in pur- policy on currency values to China’s No. If these extremists in Tehran feel suing their nuclear program to create behavior with regard to weapons, not that they are about to be overthrown, the fissile material which is the most weapons of mass destruction, but the among their options will be to use essential element of creating a nuclear real important ones, the nuclear weap- their nuclear weapons against Israel in weapon. So Iran is developing the ons. an effort to regain popularity on the fissile material needed for a bomb. Our State Department opposes link- streets of Tehran or to use their weap- Now there are those who say that our age because they find it more conven- ons on the United States figuring if response should be a military response. ient to just deal with one issue at a they are going to go out, they might as They point out that Saddam Hussein’s time in separate bureaus, in separate well go out with a bang. real nuclear program was destroyed by boxes. We need to link China’s policies Now I know that there was that NIE, Israel in 1981. Saddam put it all in one toward proliferation with our policies that National Intelligence Estimate, place, above ground, easy to see. Syria on issues important to China. released late last year that was delib- made a similar mistake. They put their erately designed to be misread. It said whole program, or the essential ele- b 1900 that Iran had abandoned its nuclear ments of that program, all in one Now let’s turn to Iran. Iran is more weaponization program. But if you place, above ground. They tried to dangerous than North Korea because it read that report carefully, and I am make it a little bit more difficult to is ambitious. It is already responsible not talking about the classified see. And if news reports are to be cred- for terrorist attacks as far away as version, which I wouldn’t talk about ited, that program was destroyed late Buenos Aires, which is as far as you here, but just the two-page unclassified last year by an Israeli bombing effort. can get from Tehran. It seeks to re- version, if you read it carefully, if you The Iranians are not nearly so in- make the Muslim world and then the read the footnote, you realize that the competent. Their program is dispersed. entire world. An Iran with nuclear real bottom line in that report is that It is underground. And it is hidden weapons is truly dangerous. Iran is well on target to have a nuclear from our intelligence assets. A mili- Let’s go through all the different weapon by the middle of next decade. tary strike would not destroy their ways it imperils the United States. You see, the key difficulty in pro- whole program. It would set them back First, an Iran with nuclear weapons ducing a nuclear weapon is to get your a few years. It would also cause a num- means that you can say goodbye to the hands on the fissile material. And the ber of problems. But even if you believe nonproliferation regime which has re- NIE says that Iran will likely have that a military strike is a good idea, stricted the number of nuclear states that fissile material by the middle of we ought to first exhaust our nonlethal since 1945. The Gulf Cooperation Coun- next decade. Now the easier part of alternatives if for nothing else than cil or Saudi Arabia acting individually building a nuclear weapon is to take out of a decent respect for the opinion will certainly develop nuclear weapons that fissile material and do the engi- of the world. if Iran does. Egypt will not be far be- neering work to turn it into a weapon. I will talk about those nonlethal al- hind. And once nuclear weapons be- This is called ‘‘weaponization.’’ The ternatives in a second. But I want to come popular for medium-sized coun- NIE, this big national intelligence re- respond to those who take the other tries and countries that do not face ex- port which got headlines around the approach and say, well, shouldn’t we istential threats to their existence, world, says that for at least a while, pass a law here in Congress to prohibit once nuclear weapons become some- Iran seems to have stopped its any bombing of Iran’s nuclear facili- thing that every country the size of weaponization program. But what does ties? That is, I think, a mistake. I call Egypt has, how do you say no to Nige- that mean? The weaponization pro- it Ambien for Ahmadinejad. It would ria or Brazil? gram could be completed in just a year, help him sleep better. Not only would we lose the non- year and a half. There is no reason for There is no reason for us to tell the proliferation regime, but what affect Iran to build the cart if they are still Iranians that we have taken any of our

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00135 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.146 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3324 CONGRESSIONAL RECORD — HOUSE May 8, 2008 options off the table. In fact, the more We also announced rather recently that the investment is being made. reasonable Iranian leaders will tell that we would put the Iranian Revolu- That would trigger the act. their colleagues that one of the reasons tionary Guard Corps on the terrorist This is like hiring a police officer to give up the nuclear program is that list. And for a few hours, people said who disagrees with the law, a narcotics in the end, it may be destroyed by an what does that mean? Does that mean officer who just walks around and ev- American bombing raid before it bears that if Mercedes chooses to sell trucks erybody is using whatever drugs, and fruit. So you strengthen the hand of to the Iranian Revolutionary Guard this officer does nothing—what good is the realists in Tehran if you leave all Corps that the United States might to pass the law if the Executive Branch options on the table. shut down Mercedes operations in the refuses to apply it? But now let’s focus on those non- United States? Two hours later, the Now, we have a bill that has passed lethal options. We have got to get a Treasury issued a press release saying this House, it’s stymied by Republicans message through to the Iranian elites they had no intention of pursuing sec- in the Senate, it is opposed by the Ad- and the Iranian people. And that mes- ondary sanctions. What that means is ministration, it’s called the Iran sage is very simple. You face total eco- that every European company is free to Counter-Proliferation Act. What does nomic and diplomatic isolation unless do business with the Iranian Revolu- this legislation do? The legislation you verifiably and permanently give up tionary Guard Corps any way they strengthens the Iran Sanctions Act, it your nuclear weapons program. Well, want without facing any consequences imposes a total embargo on imports to we have the broadcasting resources to in the United States. the United States of Iran’s goods. get this message through. Radio Farda So what should we be doing? The Believe it or not, we import from is broadcasting into Iran right now. good news and the bad news is that we Iran. We don’t import oil, we only im- Why can’t we get this message have a lot of tools in our economic port the stuff they don’t need and they through? Because I can’t lie that well toolbox. The good news is we have got would have trouble selling anywhere in Farsi. The real facts are that Iran tools in the toolbox. The bad news is else, caviar and carpets, et cetera. faces nothing close to economic or dip- we have known of this threat for a dec- The bill we would pass through this lomatic isolation if it continues its nu- ade, and we have left our tools in the House would at least turn to Iran and clear program. They face only the toolbox, except for, you know, a little say well you can’t sell those goods here tiniest sanctions, and they can do busi- screwdriver we have used to have the in the United States, which would have ness as usual with the entire world. slightest possible effect. a significant impact on some of the So what do we do to create the re- most powerful families and clans in ality so that we can truthfully tell the b 1915 Iran, particularly those that play a de- Iranian people and Iranian elites that The first thing we should do is follow cisive role in their government. they must give up their nuclear pro- the law. We should enforce the Iran The Iran Counter-Proliferation Act gram or they face economic and diplo- Sanctions Act. Now, the Iran Sanctions would also end the obscene practice of matic isolation? Well, before I go for- Act was formerly known as the Iran- U.S. oil companies doing business with ward, when we talk about the Iranian Libya Sanctions Act. Iran through their foreign subsidiaries. economy, we must recognize that spe- We used the sanctions against Libya, So far that bill remains bottled up, in cial debt of gratitude we owe to Iran’s we forced Qaddafi to change his behav- large part because the Administration mullahs whose mismanagement, cor- ior, he gave up his nuclear program, we opposes it. The same Administration ruption and oppression have made dropped Libya from the act, we re- that refuses to enforce the existing Tehran vulnerable to economic pres- named the act, and we resumed our law. sure even in a $130-a-barrel world. So policy of never applying it against What about the World Bank? The what do we do? Iran. World Bank has lent some $1.36 billion What have we done? First on the eco- Since 1998, despite overwhelming evi- to Iran since Iran began its nuclear nomic side, and then on the diplomatic dence, we haven’t taken the first step weapons program. Some $700 million of side. Now there was great fanfare on we are supposed to take under the Iran that hasn’t been disbursed yet, but the October 21 of last year when we an- Sanctions Act, but what are we sup- United States has done nothing to pre- nounced big sanctions on Iran until posed to do? The purpose of the act is vent those loans from being authorized you realized there was virtually noth- to deter companies from investing $20 or the funds disbursed, except one ing there. The first part of that sanc- million or more in the Iran oil sector. thing. tion was to ban four Iranian banks. We The first step in that is for us to take The Administration cast a token had banned some of them earlier, note of which companies have invested vote at the World Bank knowing they bringing to a total of four the number $20 million in the Iran oil sector, and would be outvoted, and they only did of Iranian banks that were not allowed that triggers the act. At that point, the that because it was required by law. At to execute transactions with the New President is supposed to impose sanc- least they followed the law. They are York branch of the United States Fed- tions on that firm or at least name willing to follow the law when it’s ut- eral Reserve. That means large dollar them and shame them and then waive terly inconsequential. transactions, including oil sales, will the sanctions. Minimum compliance To date, the Secretary of the Treas- either have to be executed through with the law requires the President to ury has refused to even call any of his other Iranian banks or through non- at least name the companies that we counterparts in European capitals to Iranian banks or priced in euros rather know are investing $20 million or more urge them to withdraw their support than dollars. The most this could pos- in the Iran oil sector. for these World Bank loans. sibly do is to cut maybe one-tenth of 1 What has actually happened? The Now, why are these World Bank loans percent of Iran’s oil revenue at very State Department, the Administration, so important? Because we know what worst. And that is if many of the Euro- refuses to open its copy of the Wall it takes to stay in power. One of the pean banks really hit them with huge Street Journal on any day in which things it takes is delivering projects to fees. there is an announcement of an addi- people, bringing home the bacon, if you The fact is that there are plenty of tional significant investment in the will. Now, I know it’s not kosher, it’s banking channels. Iran can easily shift, Iran oil sector. not Halal, but it is what Iranian politi- and has shifted, to selling its oil for I had to turn to CRS, the Congres- cians around the world do. Imagine dollars. Instead it sells for Euros. And sional Research Service, to give me a what it is for them to cut the ribbon on there are many ways that they can do chart of all of the large investments a water project and say we have given dollar transactions if they want to. We being made in the Iran oil sector. We this to you. That’s enough to help have not taken the step of even ban- have got not just one chart, we have them stay in power just a little bit. ning all Iranian banks from doing busi- got another chart. But if you ask the But imagine how much more meaning- ness with the Federal Reserve Board State Department to name even one ful it is when they say the whole world, because we have been unwilling to in- company that is investing, they will the World Bank, has sent us this convenience international corporations say we refuse to speak. Why? Because money. This is proof that the United even in that slight way. they don’t even want to acknowledge States can do nothing to hurt us. This

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00136 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.147 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3325 is proof that the whole world is on our hatred of trial lawyers is exceeded by diplomatic isolation unless you aban- side about developing nuclear weapons. their hatred of investors who would try don your nuclear weapons program. The World Bank loans to Iran are to influence the very companies in We need to prioritize. We need to link harmful not just from an economic per- which they have made an investment. what is important to us to what is im- spective, they are harmful to us from a It is absolutely shameful for us to portant to others. We need to use all political perspective as well. We should make it more difficult for good Ameri- the tools in our toolbox, and we need to change our laws dealing with Federal cans to push the companies that they use them immediately. Otherwise, we procurement, State procurement and partially own into doing the right will not achieve the level of security Federal corporate assistance to achieve thing. We should go further. from nuclear attack that the American one thing. We should turn to any cor- Later this month, I will introduce people deserve. poration seeking a big contract with legislation to change our tax code so I am not saying that we can make the Federal Government or seeking the that those who are divesting from com- America invulnerable, but I am saying assistance of any of our programs de- panies doing business in those bad that it is our duty here in the Federal signed to help business, whether it be areas, as I have identified, or those Government and as foreign policy- the Export-Import Bank or a whole areas we would like to discourage with makers to do everything we can to host of other programs. regard to Iran, we will say, if you sell achieve that objective. We should ask the other question, your stock in such a company, and re- I have concluded. I did mention that does your corporation or any of its af- invest the proceeds in a company that I would perhaps talk about threats filiates invest in the Iran oil sector, is clean, then you should get a carry- that face us in the second and third loan money to the Iranian government, over basis. We are not going to use that quarters of the 21st century. I will sell munitions to the Iranian govern- as a taxable event, because divestiture leave that to another speech. I yield ment? Imagine the effect this will have should be encouraged, not taxed. We back. if we make it clear that if you are a need to turn to all the corporations in f Nebraska corporation owned by an the world and say do not invest in the Italian corporation, and the Italian Iran oil sector, do not lend money to b 1930 corporation is investing in the oil sec- that government, do not sell the muni- PEAK OIL tor of Iran, that means we are not tions, otherwise, we will encourage our going to give you the contract, we will companies, we will encourage our in- The SPEAKER pro tempore (Mr. give it to somebody else. vestors, we will encourage our pension MAHONEY of Florida). Under the Speak- A number of States have tried to do plans, we will encourage our individual er’s announced policy of January 18, this, and they have been threatened by investors to stop investing in your 2007, the gentleman from Maryland the Federal Government. We have company. We will not give aid to any of (Mr. BARTLETT) is recognized for 60 passed through this House, and it has your subsidiaries, and we will not minutes as the designee of the minor- made it through the Foreign Relations make them eligible for Federal con- ity leader. Committee in the Senate, a bill dealing tracts. This will provide real pressure Mr. BARTLETT of Maryland. Mr. with OPIC, the most unfortunately ti- on the Iranian government. Speaker, several days ago I came into tled Federal agency, the Overseas Pri- But that’s just the economic toolbox. the office early and I found at my door vate Investment Corporation, and said We also have the diplomatic toolbox as the usual package of newspapers and I that if you want the assistance of this well. It is even more powerful, it is opened them up and was placing them agency, you have to certify that nei- even less used. We have never offered out on the table, and I noticed the ther your corporation nor any of its af- Russia anything in return for real co- headlines. And this is every paper that filiates are engaging in those wrongful operation on the issue of Iran’s nuclear was at my door that morning. There transactions with the Iranian govern- program. We have not provided linkage were four newspapers and there were ment. Clearly, we should not be giving between issues Russia cares about and three inside-the-Beltway newspapers assistance to those who are aiding what we care about, which ought to be intended primarily for those interested Iran’s nuclear program or aiding the preventing Iran from developing nu- in the Congress. I want to go through Iranian government in one of the key clear weapons. the headlines in every one of those pa- pressure point areas, munitions, in- We have made it clear to Russia that pers. vestment in the oil sector, loans to the what we do with regard to Chechnya, Here is the Baltimore Sun, and they government. Abkhazia, Moldova, Estonia or any- had two headlines above the fold both Now we have the issue of divestiture. thing else is not linked to what Russia related to energy, ‘‘Demand Eats Sup- We need to encourage private investors does with regard to Iran. ply,’’ and ‘‘Energy Bill Aids Payouts on and government pension plans and pri- Likewise, we have made it clear to Rise.’’ vate pension plans to sell their stock in China that what we do with regard to Then I went to the Washington corporations that are engaging in those Taiwan or currency manipulation or Times and there was a headline, ‘‘Bush transactions with the Iranian govern- trade will have nothing to do with Lays Gas Blame on Congress.’’ ment, investments in the oil sector, what China does in the U.N. or else- And then I went to the Wall Street loans to the government, sale of muni- where with regard to Iran’s nuclear Journal and the Wall Street Journal tions. program. headline was ‘‘Grain Companies’ Prof- A number of States, especially the If we could get Russia and China to its Soar as Global Food Crisis State of Florida, my own State of Cali- support us at the U.N., then instead of Mounts.’’ fornia, have decided to divest from stupid little sanctions designed to fool Then I turned to the U.S. News part such companies. But when they do so, people around the world, we could get of the Wall Street Journal and what do they face frivolous lawsuits, lawsuits real U.N. sanctions. What would that you know, above the fold there were from people saying, ‘‘oh, you have to mean? Imagine a U.N. ban on sending two more headlines, ‘‘Bush Prods Law- invest for the maximum possible re- refined oil products into Iran. Now, makers on Economy and Energy turn, and you can’t think of national Iran has plenty of petroleum, but they Prices,’’ and ‘‘GOP Senators Urge Halt interest when you do so.’’ don’t have the refinery capacity. They to Oil Reserve.’’ Now, get this, because my colleagues import nearly half of the gasoline they Then I noted the three papers that have seen how the Administration has burn. are kind of inside the Beltway papers: been opposed to frivolous lawsuits and If the United Nations would prohibit Roll Call, ‘‘Alexander Eyes Energy any lawsuit they claim is frivolous, every country in the world from send- Agenda’’; The Hill, ‘‘Politics At the they have been against lawsuits on ev- ing them that refined petroleum, you Pump’’; and Politico had ‘‘Gas Prices erything except one thing, they are in would have an immediate impact on Fuel Effort to Jam the GOP.’’ favor of frivolous lawsuits against the streets of Tehran. You would be So every one of these seven papers State governments who choose to di- able then to turn to the Iranian people, that were on my doorstep that morning vest, against private pension plans that to turn to the Iranian elites and say had headlines talking about energy. choose to divest. Why? Because their that you, indeed, face economic and Now I noted just a few days before that

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00137 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.150 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3326 CONGRESSIONAL RECORD — HOUSE May 8, 2008 there was a New York Times op-ed At that time the United States was Using that same technique, he pre- piece by Thomas Friedman. This is the largest producer of oil in the world, dicted that the world would be peaking what he says about energy. Here is the largest consumer of oil in the in oil production about now. Now I say what is scary. Our problem is so much world, and I think the largest exporter that we have known this for 28 years. I worse than you think. We have no en- of oil in the world. So this was abso- say that because by 1980 it was very ob- ergy strategy. If you are going to use lutely audacious to suggest that the vious that M. King Hubbert was right tax policy to shape energy strategy, king of oil in just 14 short years would about the United States. We were al- then you want to raise taxes on the reach its maximum ability to produce ready well over the peak and sliding things that you want to discourage— oil. down the other side of what is called gasoline consumption and gas-guzzling He was a pariah for a number of Hubbert’s peak. What did we do? We cars—and you want to lower taxes on years, and then in 1970, when right on have done as a world, as a country, ab- the things you want to encourage—new schedule as this chart shows, when solutely nothing to prepare for the in- renewable energy technologies. We are right on schedule the United States evitability that M. King Hubbert would doing just the opposite, he says. reached its maximum oil production, probably be right about the world be- The gas holiday proposal is a perfect he became a legend in his own time. He cause he was right about the United example of what energy expert Peter made his prediction in 1956. You see States. Schwartz of Global Business Network how much oil we were producing then. Now as the next chart shows, the two describes as the true American energy In 1970 we were producing a lot more entities which track oil production and policy today, and I quote, ‘‘Maximize oil. And right on schedule, just as he consumption, and it is essentially the predicted, the United States after that demand, minimize supply, and buy the same thing, very little oil is stored in produced less and less oil each year, in rest from the people who hate us the world compared to the amount that spite of several things, Mr. Speaker. In most.’’ we use, that is the EIA, the Energy In- This is not an energy policy. This is spite of finding a lot of oil in Alaska. formation Administration, a part of money laundering, he says. We borrow And notice just a little blip down the our Department of Defense, and the money from China and ship it to Saudi slide of what is called Hubbert’s peak IEA, the International Energy Associa- Arabia and take a little cut for our- as a result of this enormous find in tion, both of those track very well the selves as it goes through our gas tanks. Alaska. I have been to Prudhoe Bay, a production of oil. And you can see they No, no, no, we will just get the money 4-foot pipeline through which for a have the production of oil about flat by taxing Big Oil. Even if you could do number of years a full 25 percent of all that, what a terrible way to spend pre- our domestic production flowed. And for the last 3 years. Now when I first came here, and I cious tax dollars, he says. then a big find some years later in the For almost a year now, Congress has Gulf of Mexico. I remember the hype think that was 43 times ago, I think been bickering over whether and how over that find. You see the yellow this is the 44th time I have been to the to renew the investment tax credit to there, just a blip in the slide down the floor, when I was here in 2005, oil was stimulate investment in solar energy other side of Hubbert’s peak. about $50 a barrel, a little over $50 a and the production of tax credit to en- So not only did we find a lot of oil barrel. Using the predictions of M. courage investment in wind energy. that M. King Hubbert had not included King Hubbert, I with some confidence And a little later I will go over this bill in his prediction, his prediction in- have been saying now for these 43 that has already passed the Senate, cluded only the lower 48 States, in times, 44 times including tonight, that and we have introduced it in the House spite of this large find of oil in Alaska we were going to get here, that the now. and the large find of oil in the Gulf of world was going to reach maximum oil The Democrats wanted the wind and Mexico, and in spite of increasing production. solar credits to be paid for by taking amounts of natural gas liquids, we b 1945 away tax credits from the oil industry. today produce about half of the oil that And we ought to have been preparing President Bush said he would veto we did in 1970. for this. And since we hadn’t been pre- that. Neither side would back down. Another thing that we have done, we Stalemate, he says. have drilled more oil wells than all of paring in the past, we ought to start I first came to this floor to talk the rest of the world put together. In preparing for this with some realistic about this subject more than 3 years spite of doing that, in spite of ever-bet- measures. ago. It was, I believe, the 14th day of ter techniques for finding oil, computer Notice what happened to the price of March in 2005. I noted then that we modeling and 3–D seismic, in spite of oil. Of course, when you have a static have known, we had known at that ever-better techniques for getting the production and an increasing demand, time for 25 years that we would be fac- oil, enhanced oil recovery, nothing we the supply/demand mechanism which ing this crisis. Now it is 28 years. We have done has proved M. King Hubbert controls the pricing of almost every- have known for 28 years that we would a liar. He said we would peak in oil pro- thing in our world, caused an increase be facing this crisis. I will present the duction in 1970, and we did. And we in the price of oil. Now, it would be evidence for that in just a moment, and have been sliding down the other side well off the top of our chart here. We’re I think the evidence is absolutely unas- of Hubbert’s peak ever since. now at $123, $124 a barrel. That’s well sailable. Anybody who looked at the In 1979 he predicted using the same off the top of the chart here. As far as evidence would have to conclude that analytical techniques which aren’t all I know, these lines are extending out there was a reasonable, indeed prob- that hard to understand. He noted that flat. There is no increase in oil produc- ably a high probability that we would in an individual oil field, that the pro- tion. be here today with oil at over $100 a duction of the field increased and in- The next chart, this chart shows the barrel. creased and increased until it reached a discoveries of oil through the years, This all started in 1956 on March 8 maximum which was when about half and it shows the use of oil through the when an oil geologist from the Shell the oil was exhausted. After that, the years. Now, if you had only one chart Oil Company gave a speech that I think last half which reasonably would be that you could look at, this chart, I may shortly be recognized as the most more difficult to get, was more dif- think, conveys more information than important speech given in the last cen- ficult to get and production was slow- any other. And even without M. King tury. He gave that speech in San Anto- er. And so he rationalized that if he Hubbert’s predictions, I think that you nio, Texas, to an audience of people in- could add up all of the little oil fields would conclude that we’re probably terested in oil. What he told them was in the United States and make a good going to max out in oil production at that time absolutely audacious and prediction as to how many more we about now. Because look what we have incredible. He told them in just 14 would find, he could have one big bell here. years the United States is going to curve which is basically the shape of We have discoveries back through the reach its maximum oil production and that curve, and he could then predict 1940s and the 1950s, and boy did we dis- no matter what you do, after that the when the United States would reach its cover it in the 1960s and the 1970s, and production of oil will decrease year by maximum oil production. He was right then another surge around the 1980s. year. on target. But down, down, down since then. And

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00138 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.130 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3327 that’s in spite of ever better tech- And unless you think that there’s to countries rather than companies. nologies for discovering oil, ever more going to be some startling new discov- Saudi Aramco, National Iranian, Iraqi interest in discovering oil. It’s been eries in the future, it’s been down, National Oil, Kuwait Petroleum Com- down, down, down. down, down, for 30 years. Unless you pany and so forth. Only 2 percent by Now, obviously, if you add up all of think there’s going to be some star- Lukoil, that’s a big Russian oil com- these bars, you will know the total tling new discoveries in the future, pany. amount of oil that we have discovered. these are the reserves that we have to Now, if you look at the 10 producers That is frequently done by simply fill in the volume here about what this of oil, 78 percent of the first 10 pro- drawing a smooth curve over those chart suggests we might find. ducers of oil, all that oil comes from bars. That tells you that the area Now, it won’t be smooth like that. It countries, not companies, again, these under the curve represents the total will be up and down, but it might be nationally owned oil companies. And volume. I say that because there’s an- reasonably that kind of a slope. only 22 percent comes from the big other curve here which is very impor- So I think that even without the pre- three. tant, and that is the consumption dictions of M. King Hubbert, just look- There’s obviously a lot of angst over curve. ing at this oil chart, it would be very the high price of oil, and people are Notice that early on in the 1960s, boy, easy to conclude that we probably, looking around for who to blame. And in the 1970s, we were finding enor- very soon, if not now, would have there are a lot of people who blame the mously more oil than we were using. reached the maximum production of big oil companies. They’re gouging us. So every year we had bigger and bigger oil. There are a lot of people who blame reserves behind us that we could rely The next chart looks at some of the the OPEC countries, and many of them on. And then about 1980, when the dis- geopolitical consequences of this. This are here; because they say they’re covery of oil was down, and we were is the world according to oil. This is holding back on oil to drive the prices using more and more oil, ever since what the geography of the world would up. Probably neither one of those about 1980, we have been using more oil look like if the size of the country was things are true. There is pretty good than we found. Well, we could do that related to how much oil it had. Some evidence that OPEC is pumping oil because we had extra back here that we really interesting things here. about as fast as it can pump oil. Russia, not a part of OPEC, but a big hadn’t used. So we simply could borrow Saudi Arabia dominates the land- producer, noted several weeks ago that from this and pump it here and fill that scape. They should. They have 22 per- they had reached their maximum oil volume with it. cent of all the known reserves of oil in production. all the world. And notice, their near I want to point out something about Saudi Arabia, just last week admit- this curve which is really very inter- neighbors, Iraq, Kuwait, Iran, second, ted to maximizing out on oil produc- esting. You notice how steep the curve third and fourth. United Arab Emir- tion. They’re trying to bring a new is here. This is up through the Carter ates. You almost have to have a magni- field on-line, the Kuras field. It’s a very years. Now, had we continued on that fying glass to find them on the map, technical field. It may get 1.2 million trajectory, we would now be well off and there they are. Look how huge barrels a day. That’s a lot. But they the top of this chart. they are in terms of the amount of oil may get nothing. They’ve spent bil- The oil price spike hikes of the 1970s, they have. And then Northern Africa. lions of dollars drilling wells. They’re and the recession that occurred then, Here we are, the United States. The going to have to flood the field with notice the little dip there, were really yellow means that we’re a big user of seawater under pressure because that blessings in disguise. There’s an old oil. Our small size means we don’t have oil is so tightly held in the rocks that saying that it’s an ill wind that blows much. And notice the people from it won’t flow. And if they do is just no good. whom we get most of our oil. Canada is right they can get the oil to flow in I lived through all of those gas lines, our Number 1 supplier. They have large amounts, and they may get for even, odd, the end of your license plate, much less oil than we. But they don’t quite a number of years, 1.2 million the day you could fill up your tank. have very many people so they can ship barrels a day. But that’s kind of iffy. But look what happened as a result oil to us. But even if they get that and get it of that wake up call. Boy, are we more Mexico, until about a month ago, was on-line, it will barely maintain their efficient now than we were then. Look our Number 2 supplier. But their larg- present oil production. It will not in- at the slope of this curve as compared est oil field, which is the second largest crease their oil production. to the slope of this curve. And we’re oil field in the world, Cantoral, is now The next chart speaks again to this getting even more and more efficient. in steep decline, about 8, 10 percent a geopolitical situation. This is the chart This is an exponential rise. And it year. Now our Number 2 supplier is which shows who is buying oil where in would be off the top of the chart. Saudi Arabia. the world. And you see these symbols As a matter of fact, there was a stun- Mexico. But notice that Mexico and for Russia. Here they tried to buy ning statistic during the Carter years. Canada together have little more oil UniCal in our country. They have Every decade the world used as much than we have. And we have only 2 per- bought a lot of the production from oil as it had used in all of previous his- cent of the known reserves in the Canada, South America, the Middle tory. Now, that’s stunning, because world. Maybe they have 3 percent. East, Northern Africa. You see their what that says is that when you used Maybe all three of us together here symbol all over the map. half of it, only 10 years will remain. have 4, 5, 6 percent of the oil in the Why are they buying oil? Today it We’re very much better off. world. That’s all. doesn’t make any difference who owns By the way, oil’s not going to run out Even more alarming, notice the size the oil. The person who comes, the in 10 years or 20 or 30. We have another of China and India. Here they are. 1.3 country, the company that comes with 150 years of oil, gas and coal, but at billion people and 1.1 billion people, the dollars buys the oil. It doesn’t ever decreasing amounts, ever more more than a third of the world’s popu- make a bit of difference. difficult to find, ever more expensive. lation, and they have less oil than the We own only 2 percent of the oil in When we talk about peak oil and the United States has. the world, and we use 25 percent of the energy crisis, that does not mean we’re When you go to China, and I did with oil in the world because we come with running out of oil. What that means is 8 other Members of Congress about 16 our dollars and we buy the oil from we’re running out of our ability to months ago, and they begin their dis- those who have it for sale. produce oil as fast as we would like to cussion of energy by talking about So why would China be buying oil? use it. post-oil. So China knows that they You can’t get inside their head, but Well, what will the future look like? have to transition. you can make some prognostications Now, I said if you had only this chart The next chart is kind of a bar chart from what you see. You go to China, by to look at you could make some really which shows the same thing, pretty the way, and they talk about post-oil. educated guesses about what the future much, that we saw in that chart. If you There will be a post-oil world. It’s not is going to look like, because you can- take the 10 largest owners of oil in the forever. It is finite. It will run out. And not pump what you have not found. world, 98 percent of all that oil belongs China is talking about post-oil.

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00139 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.132 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3328 CONGRESSIONAL RECORD — HOUSE May 8, 2008 But while we still have some oil, they the way, from that we produce 8 per- that we don’t over-regulate our free so- have a policy, a 5-point plan, and ev- cent of the world’s oil. So we’re good at ciety as we respond to it. erybody knows it over there, all of pumping oil. The world needs to see us proactively their leaders know it, not just the peo- As I mentioned earlier, we have addressing this problem, but I would ple in energy and oil and coal know it. drilled more oil wells than all the rest say the best way we can do it is deploy Everybody over there talked to us of the world put together. So it is not the technologies, use the innovation, about the 5-point plan. surprising that we’re pumping down parlay and capitalize on our free-enter- Number 1 is conservation. That’s our oil reserves four times faster than prise system to solve these problems where whatever country, and this is the rest of the world. We have a bit less for the world, much in the same way where it’s got to begin. We have now than 5 percent than the world’s popu- that the information revolution in the run out of time. We have run out of ex- lation, and we use 25 percent of the last 30 years in this country was led by cess energy. We can buy some time and worlds’ oil. the United States of America and the free up some energy if we have an ag- I’m going to next look at some of the likes of Microsoft; and in doing so, a gressive program in conservation. things that I personally have been robust U.S. economy erupted that led Number 2 and Number 3 were alter- doing and some of the things that Con- to a balanced budget in this modern natives, and as many of those as you gress has been doing, and then I am era that was unprecedented where reve- can from your own country. going to recognize my very good friend, nues actually surpassed expenses. Number 4 may surprise you. Be kind Zach Wamp from Tennessee, who has So we see energy and the environ- to the environment. They know they’re come with us to share some of this ment and national security all come awful polluters, but they have 900 mil- time with us. together. lion people in rural areas that, through Mr. WAMP. I thank the gentleman Now, earlier tonight I talked about the miracle of communications, know for yielding, and I want to thank Mr. an all-of-the-above approach that I pro- mote that we should promote because the benefits of industrialization. And I BARTLETT for this lesson. I should say the capacity needs, both from transpor- think they see their empire unraveling Dr. BARTLETT. It is rare that a person tation and fuels and electricity are so the way the Soviet empire unraveled if has been in Congress for as long as you great, even today but even more so in they cannot meet the demands of these have. I first met you, Congressman the future, the capacity needs are so people. BARTLETT, when you and I were run- great with this demand that we have to So why are they buying all the oil? ning for Congress in the 1992 cycle. I not, in my view, leave anything off the At the same time they’re buying this, did not prevail, and you did, so you got table but have an all-of-the-above solu- oh by the way, they’re not just buying a 2-year jump on me here. And I’ve been here on the floor in the tion. oil; they’re buying good will. Would But I want to zero in, because you past when we talked about this chal- you like a soccer stadium? Is it hos- have rightly talked about these issues lenge, and my only regret tonight is pitals you need, roads? So in addition of conservation, efficiency, new tech- that all of the Members of the House to buying the oil they’re buying good- nologies, renewables; and I want to were not here to hear again your com- will. highlight a few because I said earlier prehensive explanation of some of At the same time that they’re doing tonight on the floor, I’m a conserv- these problems and the solutions and this, they are aggressively building a ative. I think conservatives should pro- the realities, and that everyone in our blue water navy. They launched many mote conservation. That’s a logical times, I don’t know the exact number, country could not understand as well thing to say and to do. And that should maybe 10, submarines last year. We as you understand the realities of what be first and foremost, and it is not launched one. we are seeing today. wimpish, as I said earlier, for us to pro- I want to begin elementally by say- Now, their submarines aren’t ours mote conservation. It’s smart. It re- ing that the nexus between energy and yet, but I would note that they are duces demand and lowers price. That’s graduating six times as many engi- national security and our environment what we have to see. And it should be neers as we graduate, and about half of is the most important policy challenge led by the top, and it should be a grass- our engineers are Chinese students. of our time. And all of the conflicts of roots call for us to be as efficient as I was stunned the other day when I the world have some relation to those possible in all aspects of our life, learned that in our patent office more three challenges. There’s obviously re- frankly. than 60 percent of the applications for ligious undertones and whatnot, but We have sat on the couch for a gen- a new patent come from Asia. those have been around forever. These eration knowing these problems ex- They are very aggressively building a challenges now all kind of collide. isted, and we haven’t acted, and there’s blue water navy. Might the day come That’s this nexus that I am talking plenty of blame to go around. I don’t that they would say well, gee, I’m about. want to come to the floor and blame sorry, guys, but we have 1.3 billion peo- On the national security front, you everybody. There’s a lot of that that ple, the oil is ours and we can’t share mentioned Thomas Friedman’s col- goes on. Frankly, that’s one reason it. umn, and there is one quote in it that people tune out Washington so much is Today there’s no alternative, the way I wanted to point out where he says, there’s too much of a blame game the marketplace works but that you’re ‘‘ ‘There are 23 countries in the world going on here. American people want going to share your oil. that derive at least 60 percent of their these problems solved, but I really be- The next chart, and I’ve already men- exports from oil and gas and not a sin- lieve we should look at these incredible tioned some of these numbers. We have gle one is a real democracy. Russia, technologies that we have. only 2 percent of the world’s reserves of Venezuela, Iran, and Nigeria are the So let’s talk a little bit about trans- oil. By the way, these numbers encour- poster children’ for this trend where portation because there’s a Farm Bill aged 30 of our prominent leaders, Jim leaders grab the oil tap to ensconce coming. There’s a lot of talk about al- Woolsey and McFarland and Boyden themselves in power.’’ ternative fuels. Gray and 27 others, several retired 4– That makes this peak oil challenge a I believe in the south that cellulosic Star admirals and generals to write a critical national security problem for ethanol will be part of the solution, but letter to the President saying, Mr. the United States of America. it’s a bridge, in my view. Even at best, President, the fact that we have only 2 When I talk about the environment, it’s a bridge to the future. It’s not the percent of the world’s reserves of oil, one of the most important issues now permanent solution. The fuel mix could and we use 25 percent of the world’s oil as we face the next Congress and the certainly be improved, and cellulosic and import almost two-thirds of what next administration after this fall’s ethanol doesn’t destroy our agriculture we use is really a totally unacceptable election will be the American response and our food capabilities and pricing national security risk. to this global warming challenge. And like corn-based ethanol does, so that I would argue this: We can’t deny the obviously has been a net loser for the b 2000 problem. We can’t bury our head in the environment; it has been a net loser for We’ve got to do something about sand from the problem. We should not agriculture; it has been a net loser eco- that. That little 2 percent we have, by ignore it, but we better be very careful nomically in some ways.

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00140 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.134 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3329 But cellulosic ethanol, say mine which ones come first and which You would think every utility in the switchgrass that you don’t eat, it could one consumers will buy and which ones country would be interested in that be- actually be productive in creating an hit the price points quickest, and cause there is no transmission grid. It alternative fuel. But that’s a bridge to that’s where people, I think, will buy. makes us more terrorist-proof because the future because if you ask the auto- So I think if electric cars or the plug- you can’t shut down the transmission motive industry leaders, they will tell in hybrid is the first one there at grid because everybody’s got their own you that in a couple of years, the price $25,000, $35,000 for a new car, that’s electricity source. And if transpor- points on plug-in hybrids will be such where consumers will go. But where is tation is moving towards electricity, it that Toyota and General Motors in 2010 the electricity going to come from if has tremendous potential. will have a cost-competitive plug-in we do this? We don’t have the capacity I would just say that your energy ef- hybrid. right now to meet today’s demand ficiency, renewable energy, conserva- So the vehicles of the future are based on commerce and industry, let tion programs should be at the fore- going to run probably for a while on alone new transportation systems that front followed by a real understanding some form of electricity, some kind of need electricity. that we have capacity needs in this a battery, an ion lithium battery. The And we are the most abundant source country. I, too, was in China in Janu- technologies are developing very of coal. We’re the Saudi Arabia of coal ary. I have a great concern because quickly. Imagine plugging your car in for the world. But we have got to, if what I heard and saw in China about in your garage overnight and having it we’re going to take this leadership po- their attitudes towards the environ- charged where you can take it 400 sition on climate change and not bury ment is that this is indeed their indus- miles before recharging it and getting our head in the sand, we’ve got to have trial revolution and they’re entitled to an equivalent horsepower of 260 to 280 clean coal technology, we’ve got to it. horsepower. People would be excited have carbon capture. We’ve got to in- The problem with them having an in- about that if they could afford it. vest there. We’ve got to still use coal, dustrial revolution in 2008 is they’re al- Right now the price point on a hydro- but it’s also a finite resource, which most one-fourth of the world’s popu- gen fuel cell car is not cost effective. you have identified. lation, and if they have an industrial Let me tell you about a new tech- It’s a couple hundred thousand dollars revolution without environmental re- nology that’s really got potential. It at best, which obviously is not ready sponsibility at the same time the rest comes out of the Silicon Valley and the for the marketplace. That may be 15 to of the world is being called on to re- Tennessee Valley, interestingly 25 years from now. duce carbon and their carbon footprint, And there is a silver lining in the enough, where I live. We’re in a part- nership with them. We have built a sta- it’s a regulatory burden to the indus- cloud. You talked, Dr. BARTLETT, about tionary solid oxide fuel cell system. It trialized world and it lets these devel- the silver lining during the Carter looks like the HVAC unit in your oping nations, including China, off years, that it caused us to blunt the home. We now have a 100 kilowatt sys- without those regulations. sharp increase in consumption. The sil- tem, meaning it generates 100 kilo- That levelizes the world at our ex- ver lining today with these price points watts of electricity, and it runs off of pense. That’s a dangerous notion. is that technologies are rapidly being one feedstock going in but no trans- So back to the nexus. This is critical. deployed because the marketplace mission system. So unlike the elec- You’re taking excellent leadership. I knows there’s opportunity there. tricity that comes to your house, it is want to thank you for that, and I want And we were with the President of not connected on a grid somewhere to to thank you for the time tonight. the United States yesterday discussing a power source. It’s a standalone sys- Mr. BARTLETT of Maryland. Thank this, and he talked about that specifi- tem for electricity production, but you you very much for your observations. cally that you’re seeing the most rapid do have to have a feedstock going in. We’re doing a number of things in the movement towards alternative trans- But this unit runs off of the feed- Congress. It would have been a whole portation systems and technologies stock as natural gas, can run off eth- lot better if we were doing them 25, 28 that we’ve seen in the modern era be- anol, it can run off of solar, it can run years ago, by the way, because what cause people cannot afford gasoline off of a variety of renewable sources; we’re doing in the Congress will not be today, and therefore, alternatives will but it has to have a feedstock as you adequate to meet the challenge. But hit the marketplace faster. And surely know—are you a physicist? it’s a start. It’s what we can do. we could have done better in the past, Mr. BARTLETT of Maryland. Physi- I have a book here that came across but we’ve got to find these solutions so ologist. my desk: ‘‘A Very Unpleasant Truth we’re going to have some kind of elec- Mr. WAMP. Physiologist. As you . . . Peak Oil Production and Its Global tricity. know it has to have a feedstock, but it Consequences’’ by two very Now that brings all of the energy has tremendous potential. credentialed authors, both Ph.Ds from problems together when you’re talking And just recently here in the House, one of our large oil companies. And about electric cars because two-thirds I have promoted, and much to his cred- they say in this book, The first and of the oil consumption’s in the trans- it, Dan Beard, the chief operating offi- most important thing that needs to be portation sector, and we’ve got some cer of the House, has been and viewed done is to educate and convince the capacity problems in the electricity these systems as has the chairwoman public that a problem even exists; and sector, and we are not bringing on nu- of the Legislative Branch Appropria- that’s what I have been trying to do for clear plants at anywhere near the rate tions Subcommittee, DEBBIE more than 3 years now. The public of European countries because we’re WASSERMAN SCHULTZ, been in consulta- must accept, they say, that the current still caught in this Three Mile Island tion with us about the notion that in system based on cheap oil is not sus- time warp of safety and security. And just a couple of years, we could take an tainable and cannot be kept intact re- the waste stream is such here that you entire House office building in Wash- gardless of what politicians promise. can’t permit a place to bury it, like ington, D.C. and take it off of the fos- Yucca Mountain, in a timely manner. sil-fired powerhouse here on Capitol b 2015 So we need to look at the proposition Hill, take it off of that coal powerhouse Let me mention quickly four things that they do in France of recycling the and put it on a solid oxide stationary that I’m personally involved with and spent fuel back into energy. Reprocess- fuel cell to demonstrate to the country personally doing. ing spent fuel. It’s a closed-fuel cycle. that emissionless, completely We have a new bill just introduced We can do that. We should look at emissionless, not nuclear, but through last evening. It is a companion bill to that. And we should bring nuclear up. a new technology called a stationary S. 2821 that has enormous support that But I want to throw a new tech- solid oxide fuel cell, you could com- I will mention very briefly. Our bill is nology into the electricity production pletely power and cool and heat and H.R. 5984. which could very well help us on trans- cool the water in a huge House office In one of his columns last week, New portation as we move towards battery- building or a 100,000 square foot com- York Times’ Thomas Friedman decried powered cars if they’re cost effective. mercial center with this new tech- the stalemate that has so far prevented See, I believe the market will deter- nology. Tremendous. the extension of renewable energy tax

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00141 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.135 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3330 CONGRESSIONAL RECORD — HOUSE May 8, 2008 credits that would otherwise expire tion of Home Builders, a very conserv- cles, incenting the industry to move to this year. I noted that in some opening ative organization to which I belonged flex-fuel vehicles. When we have the comments this evening, and this was in another life. National Association of new fuels we’ll be ready for it. If we one of the things that inspired us to State Energy Officials, National Elec- haven’t done that, there will only be a pick up this Senate bill and to file it in trical Manufacturers Association. small percentage of the cars that could the House. I’m reading, by the way, about one- use the new fuels. This bill does several things: Exten- tenth of all of those who have signed In addition to these things, I’m work- sion and modification of the renewable on. ing with my colleague, Democratic energy production tax credit; extension National Wildlife Federation, Nat- Congressman MARK UDALL from Colo- and modification of the solar energy ural Resources Defense Council, North- rado, to distribute a new report about and fuel cell investment tax credit; east Public Power Association. green collar jobs from energy effi- clean renewable energy bonds; exten- Oh, my, more pages, one-and-a-half ciency and renewable energy tech- sion of the special rule to implement more pages. I won’t bother reading nology. This industry is small but it is FERC restructuring policy; extension those, but it’s the same kinds of broad, really growing. The report is called Re- and modification of the credit for en- broad spectrum. newable Energy and Energy Efficiency: ergy efficiency improvements to exist- Like Suntech, I’ll mention Suntech, Economic Drivers for the 21st Century. ing homes; extension of the tax credit second largest solar cell manufacturing It’s available for free. You can for energy efficient new homes; exten- company in the world. Six years ago it download it at www.ases.org. sion of the energy efficient commercial didn’t exist. I was privileged to have Solar power grew worldwide by an buildings deduction; modification and lunch with the young Chinese man who average of 18 percent between 1980 and extension of the energy efficient appli- started it just 6 years ago, and now, it’s 2000. It’s accelerated dramatically in ance credit. number two in all of the world. recent years, growing by close to 50 So it’s a broad-based bill. It has Another thing that I am doing per- percent annually since 2002. In spite of passed the Senate by 88–8. It has 43 co- sonally, we are having a SMART Green that dramatic growth, it still produces sponsors in the Senate. We have 35 Showcase in conjunction with the a tiny, tiny percentage of our elec- original cosponsors in the House and SMART Organization. This will be on tricity. That’s because we get elec- two more have been added to that July 18 in Frederick, Maryland, and tricity production in huge, huge today. we’re going to showcase there a num- amounts, primarily from coal, 50 per- This bill has gotten a lot of support ber of smart energy solutions for many cent in our country, and from nuclear from the community out there. The of the problems that homeowners and power and hydro power. Those are the Christian Science Monitor has an arti- small businesses have. It has its own three largest sources of energy for coal. cle on it supporting the bill. ‘‘Big Oil’s Web site, From a significantly larger base, Friends in the Senate’’ is an editorial www.smartgreenconference.com. So wind power has also been growing rap- by New York Times on this subject, you can find more information on it idly. U.S. wind power capacity surged and here I have a list and I want to just there. 45 percent in 2007. So lots of new jobs mention a few of those because it’s so I have a bill, the Self-Powered Farm are being created. We need to create important. It notes how broad the sup- Energy Bill. We’re going to give a prize more. port is for this bill. to the first farm that can demonstrate I want to spend the remaining time, Here are letters from the National that they’re capable of independence and it won’t be very long, looking at Association of Manufacturers, the from off-site sources of energy, fuel, the alternatives that we have and what United States Chamber of Commerce, and raw materials; a community re- reasonable expectations should be. And the Retail Industry Leaders Associa- source for food and energy. They will I need to come back, and we’ll spend a tion. And then I have here a letter have food and energy left over to pro- full hour just looking at reasonable ex- signed by more than three pages of vide for the community or raw mate- pectations. double column organizations, more rials for food. It minimizes or elimi- I’d like to point to two expectations than three pages, double column, and nates ongoing operating expenditures that did not turn out to be reasonable. let me just mention a few of them. to off-site entities for fossil fuel-de- It kind of represented the irrational American Council on Renewable En- rived energy; employs sustainable exuberance that Alan Greenspan spoke ergy, Alliance to Save Energy, Alter- farming practices for long-term soil about in the market. native Fuels Renewable Energies Coun- fertility; and produces at least two The first of these was hydrogen, not cil, American Council for an Energy Ef- times as much energy, including fuel or hydrogen from renewables as the chart ficient Economy, American Solar En- raw materials for fuel, as it consumes. indicates here but hydrogen from any ergy Society, American Wind Energy Now, if we can’t do this, we’re in source. Remember, we were going to Association, the Audubon Society, trouble. If our farms can’t be energy have a hydrogen economy? The Presi- Babcock and Brown, Bloom Energy, independent, and I think they can, and dent mentioned this in his State of the Business Council for Sustainable En- we have a prize for that farm that will Union. I think we spent $1.5 billion on ergy, California Energy Commission, get there first. it. You don’t hear anybody talk about Center for Energy and Environmental The next chart speaks to the fourth hydrogen today, and that’s because I Sustainability at James Madison Uni- thing that I’m personally involved in. think we’ve finally figured out that hy- versity. Constellation Energy, well- This is the DRIVE Act. The Depend- drogen is not an energy source. It is known locally. They provide much ence Reduction through Innovation in simply a way to carry energy from one electricity for the Baltimore area. The Vehicles and Energy is what DRIVE place to another place. Dow Chemical Company, Duke Energy, stands for. The purpose of the bill is to There is no hydrogen out there free Earthjustice, Edison Electric Institute. achieve liquid fuel independence for the having. You have got to And so you notice the broad, broad through alternative energy sources. produce it by using more energy than spectrum of support for this bill from a Some of the key points include incen- you will get out of hydrogen. That is lot of those who are concerned about tives for the auto industry to produce the immutable second law of thermo- the environment and those who are flexible fuel, hybrid and electric vehi- dynamics. If you can repeal that law, concerned about the simple fact that cles; the conversion of gas stations to you can repeal the law of gravity, and we have got to have more energy. fuel stations, where consumers can then we have a whole different world, Environmental Defense Fund, Exelon plug into an electric car to fill up on don’t we? So hydrogen is rarely, rarely Corporation, GE Energy, Geothermal ethanol; as well as tax credits for mentioned now because that bubble Energy Association. Greenpeace? The Americans who buy flexible fuel cars. broke. Home Depot, Honeywell, Idaho Rural It costs so little, maybe less than Another bubble that broke very re- Council, John Deere Renewables, JP $100 to build a flex-fuel car. Every car cently was the corn ethanol bubble. Morgan, League of Conservation Vot- in Brazil is flex-fuel. They could be, I High, high hopes were held out for corn ers, Lowe’s Companies, Michigan Alli- think should be in our country, and we ethanol, very unrealistic expectations. ance of Cooperatives. National Associa- have a bill, H.R. 670, on flex-fuel vehi- I did some computations with Dr. John

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00142 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.137 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3331 Darnell, the most broadly knowledge- the nutrients that is really, really ap- bles have already broken. I will predict able scientist that I know and I’m priv- parent in a tropical rain forest. If you the next bubble that will break is the ileged to have on my staff. We did some take the tropical rain forest vegetation cellulosic ethanol bubble. We will get back-of-the-envelope computations away in many places, you leave what’s something from that; it will not be the several years ago and convinced our- called laterite soils which grow very huge amounts that people expect that selves that ethanol from corn could little because all of the nutrients were we will get from that. So I look for- never make any meaningful contribu- in circulation, in growth, death, decay, ward to coming back and talking for tion to freeing us from our need for oil. rebirth and growing again. It’s all recy- another hour about realistic expecta- The National Academy of Sciences cling. tions: What can we realistically get has now said that if we use all of our So we’re going to get some energy from these renewable sources? corn for ethanol, every bit of it, and from cellulosic ethanol, but it is not a f discounted it for fossil fuel input, silver bullet. It will not solve our prob- which is huge, at least 80 percent—and lem. WORLD PRESS FREEDOM DAY you’re just kidding yourself if you’re Here I have a look at all of the dif- The SPEAKER pro tempore. Under burning fossil fuel in another form and ferent places from which we might get the Speaker’s announced policy of Jan- pretending that you’re displacing gaso- energy, and I’m going to put the last uary 18, 2007, the gentleman from Cali- line. If we used all of our corn for eth- chart up now because our time is just fornia (Mr. SCHIFF) is recognized for 60 anol, discounted it for fossil fuel input, about out. I want to come back and I minutes. it would displace 2.4 percent of our gas- want to spend the full hour talking Mr. SCHIFF. Mr. Speaker, last Sat- oline. They noted that if you tuned up about realistic expectations from tar urday, May 3, was World Press Free- your car and put air in the tires you sands, more potential oil than all the dom Day. Two years ago, in conjunc- could save as much gas. oil in the world. Oil shales, again, in tion with World Press Freedom Day, Well, now there’s a backlash over our country, more potential oil than Congressman MIKE PENCE, Senator corn ethanol. A U.N. official said that all of the oil deposits in the world. CHRIS DODD, Senator DICK LUGAR and I what we had done was a crime against established the Congressional Caucus b 2030 humanity. There are other factors in- for Freedom of the Press. Since then, volved. One of the major ones is the How much can we realistically expect this bipartisan, bicameral caucus has very high cost of oil as energy, but cer- to get from them? I’ll make a very sought to highlight the importance of tainly, our diversion of corn to ethanol quick observation. We are very much free expression around the world. The is one of the factors that has increased like the young couple that has gotten a caucus is a forum where Members of the cost of food around the world. And big inheritance from their grand- Congress can work to combat and con- I was shocked at how quickly these parents and they’re living lavishly. demn media censorship and the perse- food shortages developed, and just a Eighty-five percent of the money they cution of journalists worldwide. couple of weeks ago, you remember spend comes from their grandparents’ Our caucus works to send a strong reading about food riots in a number of inheritance and only 15 percent from message that Congress will defend the countries in the world. what they earn. And it’s going to run democratic values and human rights There is a new bubble that I think out before they die, so obviously wherever they’re threatened. We work will break, and that is the cellulosic they’ve got to do something, they’ve to highlight abuses of press freedom ethanol bubble. We will get something got to earn more or spend less. and foster reforms in support of press from cellulosic ethanol. That’s precisely where we are. freedom around the world. We have Oh, the National Academy of Eighty-five percent of all of the energy hosted panel discussions with press Sciences has also looked at soybeans we use comes from fossil fuels. It will freedom experts, journalists and vic- for soy diesel, and they said that if we run out. It is not forever. And so this 15 tims of press freedom crimes. We have use all of our soybeans for soy diesel, percent is going to have to grow. And written to the leaders of countries no soybean oil for our cooking, no soy about half of that is nuclear, the rest which jail journalists, impose censor- protein for feeding our cattle and so of it is a broad spectrum of potential ship, and allow harassment, attacks forth, if we use it all for soy diesel, it renewables here. That’s going to have and threats to occur with impunity. would displace 2.9 percent of our diesel. to grow. And we’ve spoken out here on the Now, I’m going to make an observa- By the way, I think that this is an House floor and in the media to call for tion, just an intuitive observation, the enormously exciting challenge. I am reforms in countries that seek to cen- kind of thing that I think a rational excited about this. America is the most sor freedom of speech and expression. person might conclude. We grow our creative, innovative society in the The caucus enjoys the support of a corn and our soybeans on our best land. world. With proper understanding and wide range of organizations, including It’s level, it’s fertile. We dump all sorts proper leadership, we really can do Reporters Without Borders, Freedom of fertilizers and herbicides and insec- miracles. We put a man on the moon in House, the Committee to Protect Jour- ticides on it to nurse out these huge, less than a decade. nalists, the National Endowment for huge yields of corn, 250-bushels per I think we need a program that has a Democracy’s Center for International acre. total commitment of World War II. I Media Assistance, as well as the leg- Now, we are going to get this cel- lived through that war, I know what it endary Walter Cronkite. lulosic ethanol from our wasteland. It’s was. Daylight savings time, victory World Press Freedom Day was first not good for growing corn or soybeans guard, nobody told you you had to do designated by the United Nations Edu- or wheat or any of these things. And it, that’s just what you did because you cational, Scientific and Cultural Orga- just intuitively, I wonder how much were a patriotic American. nization in 1993 as an occasion to pay more energy we could get from our We need the technology focus of put- tribute to repressed journalists and to wasteland, which isn’t good for grow- ting a man on the moon—and many of reflect upon the role of the media in ing any of these crops, and we’re going us remember that exciting decade—and general in advancing fundamental to get it without fertilizer, how much we need the urgency of the Manhattan human rights as codified in inter- energy can we get from that Project. I think once again America national law, regional conventions, and sustainably? Well, we can get a lot the has become a major manufacturing and national constitutions. In keeping with first year and the second year by sim- exporting country, manufacturing and that tradition, we have hosted a Spe- ply going in and in effect raping the exporting to the rest of the world the cial Order hour in honor of World Press soil, taking off all the organic mate- technologies for sustainable renew- Freedom Day each year since the in- rial. ables. ception of the caucus. But to at least some measure and in Mr. Speaker, I think this is a chal- The Universal Declaration of Human some soils to a very large measure, this lenging opportunity, but it will not be Rights, which is a foundation of the year’s weeds and grasses grow because easy. And we have very unrealistic ex- postwar human rights movement, guar- last year’s weeds and grasses died and pectations about what we can get from antees freedom of expression in article are fertilizing them. It’s a recycling of many of these things. Two of the bub- 19. ‘‘Everyone has the right to freedom

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00143 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.138 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3332 CONGRESSIONAL RECORD — HOUSE May 8, 2008 of opinion and expression; this right in- Far too often, the reporters and edi- tragically press freedom continues to cludes freedom to hold opinions with- tors who demand reform, account- slip. This was the sixth consecutive out interference and to seek, receive, ability and greater transparency find year that Freedom House’s index and impart information and ideas themselves at risk. The censorship, in- showed a reduction in global press free- through any media and regardless of timidation, imprisonment, and murder dom, a worrisome trend. any frontiers.’’ It may not be as ele- of these journalists are not only crimes As I mentioned, this is the third Spe- gant as our first amendment, but its ef- against these individuals, they also im- cial Order hour we have held in rec- fect and its desire and goal are the pact those who are denied access to ognition of World Press Freedom Day. same. their ideas and information. The first year we launched our caucus, For Americans, this day should spur Freedom of expression and a free we outlined the intention of our caucus us to consider the role that journalists press is not just a cornerstone of de- and press freedom abuses around the play in our society and to ponder what mocracy, it has also proven to play an entire world. Last year, we decided our Nation would be like if this corner- important role in economic and social that each year we would focus on a par- stone of liberty were to be curtailed. development. James Wolfensohn, ticular hot spot and highlight a single Many Americans take the concept of a former President of the World Bank, country where press freedom rights are free press for granted and don’t realize has long argued that ‘‘a free press is particularly limited. that an unfettered press is vital to not a luxury, it is at the core of equi- Last year, we focused on Russia. We America’s national security and to our table development.’’ profiled 18 journalists murdered in Rus- democracy here at home. The media exposes corruption, helps sia during the administration of out- Freedom of the press is so central to build a public consensus to bring about going President Vladimir Putin. All of our democracy that the Framers en- change, and facilitates the trans- these journalists were believed to be shrined it in the very first amendment mission of innovative ideas and valu- killed due to their work. Most of these to our Constitution. Thomas Jefferson able information that empowers people murders remain unsolved to this day. so valued the principle of press freedom to share and shape their own destinies. Tonight, I will focus on the lack of that he said, given the choice between There is an emerging consensus among press freedom in China leading up to a free government or a free press, he development institutions that a skilled the 2008 Summer Olympic games in would choose a free press. He said, and a viable media sector is a society’s Beijing this August. I have chosen to ‘‘The basis of our governments being most promising tool for motivating highlight press freedom in China for a the opinion of the people, the very first government reform and poverty reduc- number of reasons, including its failure object should be to keep that right; and tion. to implement promised press freedom were it left to me to decide whether we Regrettably, censorship, intimida- reforms before the Olympics, its incar- should have a government without tion, imprisonment, and even murder ceration of more journalists than any newspapers or newspaper without a of journalists are far too common in other country, its lack of independent government, I should not hesitate a countries all around the world. The media, and its censorship of the Inter- moment to prefer the latter.’’ map to my right provides a visual rep- net, all of which I will be discussing to- Journalists have jealously guarded resentation of press freedom rights by night. their rights and American courts have, country. This map was provided by As the world’s most populous coun- in the main, carved out broad protec- Freedom House, which releases an an- try, China denies more citizens access tions for the press. In the United nual index called Freedom of the Press: to a free press than any other country. States, the press operates almost as a A Global Survey of Media Independ- It is also tied for 181st place out of 195 fourth branch of government, the ence. The countries that are high- countries in press freedom rights in Fourth Estate, independent of the lighted in green are listed as having a Freedom House’s survey. To give you a other three, and positioned as an agent ‘‘free’’ press. The countries in yellow bit of perspective, China ranks between of the free people. represent countries that are ‘‘partly Syria and Iran in the survey. And Rus- Winston Churchill agreed with the free.’’ And the countries colored purple sia, which as I just mentioned lost 18 idea that a free press was almost an- are countries they describe as ‘‘not journalists, murdered journalists, dur- other independent branch of govern- free’’ in terms of press freedom rights. ing one president’s administration, ment saying, ‘‘A free press is the And as you can see, in addition to prob- that country is ranked ahead of China unsleeping guardian of every other lems here, we have vast expanses in Af- on the survey. right that free men prize; it is the most rica, in Asia, in the Middle East, and in As I speak here tonight, the Chinese dangerous foe of tyranny. Under dicta- South Asia. Government limits more than 1 billion torship the press is bound to languish, To break it down a little more, when people’s access to an open Internet and and the loudspeaker and the film to be- taking population into account, 42 per- an independent media, despite the fact come more important. But where free cent of the world’s people live in coun- that article 35 of the Chinese Constitu- institutions are indigenous to the soil tries that have a press that is ‘‘not tion guarantees freedom of speech, as- and men have the habit of liberty, the free.’’ Forty percent of the world’s pop- sembly, association and publication. press will continue to be the Fourth ulation live in countries that have only Unfortunately, other articles in its Estate, the vigilant guardian of the a ‘‘partly free’’ press. That is exhibited Constitution subordinate these rights rights of the ordinary citizen.’’ here in yellow. And in green we see to what is called the ‘‘national inter- From the pioneering work of journal- that only 18 percent of the world’s citi- est.’’ This allows the ruling communist ists during the Civil War, to the zens enjoy a ‘‘free press.’’ Quite re- party to maintain direct control over ‘‘muckrakers’’ who were committed to markable; 18 percent ‘‘free,’’ 42 percent the news media through the Central exposing the social, economic and po- ‘‘not free,’’ and the additional 40 per- Propaganda Department, the CPD. litical ills of industrial life in the early cent only ‘‘partly free.’’ The Chinese Government has even 20th century, to the work of the Wash- More than 80 percent of the world’s proposed fines for domestic and foreign ington Post reporters Bob Woodward people, therefore, are denied full access news organizations that report ‘‘sudden and Carl Bernstein in uncovering the to information. This is not for eco- events,’’ such as protests, disease out- Watergate scandal a year later, jour- nomic reasons, as you might expect, breaks, or national disasters without nalists have performed a crucial role as such as printing costs, lack of Internet government authorization. Some of watchdogs of American freedom. connections or illiteracy, all of which these are public health emergencies, But in order for the press to do its are problems in their own right. epidemics that the Chinese government work properly, it must be free, and Eighty-two percent of the world’s pop- wants to have the ability to hide. journalists must be able to do their ulation, 82 percent of the world is being These are just a few of the examples work without fear of retribution. Infor- denied access to information because that I’ve chosen to highlight China to- mation is power, which is precisely their governments don’t want them to night. why many governments attempt to have that access. China is an enormously important control the press to suppress opposi- It’s also important to note that even country. China has emerged in a big tion and preempt dissent. as the world continues to globalize, way on the world stage. And China is a

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00144 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.140 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3333 country of immense promise. It is im- ily influences the weekly editorial con- the Beijing Organizing Committee of portant both to the Chinese Govern- tent for print, radio, and television the Olympic games, expressing our ment and to the Chinese people, as well platforms by preventing the reporting deep disappointment in the govern- as to the rest of the world, that we help of sensitive topics that fall under the ment’s failure to live up to the prom- to promote press freedom in our largest vague metric of issues affecting ‘‘social ises that it made before the Olympic neighbor in the world, and one that stability.’’ Journalists that stray from vote in 2001. The letter expressed our will take a position of increasing im- the government line, as Teng and Hu frustration that Chinese journalists portance in the years to come. noted, face imprisonment, travel re- face imprisonment for reporting stories b 2045 strictions, or are effectively deported. unfavorable to the state, are forced to Foreign correspondents do not expe- toe the government line, and the ever- Before I continue, I want to thank all rience ‘‘complete freedom’’ either when increasing restrictions on accessible the press freedom advocacy organiza- reporting in China. On January 1, 2007, material on the Internet. tions that helped provide this informa- the Chinese Government introduced a In the past the Olympic games have tion for tonight’s discussion: The Com- temporary measure that was intended helped establish freedoms in countries mittee to Protect Journalists, Report- to increase foreign reporters’ freedom struggling to emerge from authori- ers Without Borders, the National En- in China before, during, and after the tarian rule. Most notably, the 1988 dowment For Democracy, and Freedom Olympic games. This measure was set summer Olympics in Seoul, Korea House have all been chronicling press to expire in October, 2008. While some played a critical role in helping to freedom abuses in China, and much of foreign correspondents have experi- bring democracy to that country. It’s what I will share with you tonight is a enced increased journalistic freedom my hope that China begins to live up to product of these groups’ research, in- since the measure went into effect, its promise of complete freedom for vestigation, and reporting. I want to most have not. journalists, that it will cease the har- thank them not just for their efforts in A Foreign Correspondents Club in assment and imprisonment of journal- helping us here tonight but, more im- China’s survey showed that 40 percent ists, and allow the Chinese people to portantly, for all of their work to de- of foreign correspondents have experi- experience the full communicative and fend journalists and journalism around enced harassment, detention, or an of- economic powers of the Internet and the world. And I also want to take a ficial warning during the news gath- that the games will usher in a newer, moment to thank Sean Oblack of my ering in Beijing and other areas. freer era in Chinese public life. staff for all of his effort and leadership One foreign reporter in China that I’m now going to spend a few minutes in helping to put this caucus together Human Rights Watch interviewed expe- talking about one of the extreme meas- and the presentation tonight. rienced harassment and had difficulty ures that governments take to censor During the Olympic bidding process, renewing her work visa after covering the media, and that is arrest and de- as international opposition grew to re- political dissidents and the highly pub- tention. Unfortunately, it’s become warding the Olympics to China, the licized murder of Chinese journalist commonplace for some governments to Chinese Government promised to Lan Chengzhang. She told Human silence journalists simply by jailing strengthen human rights in China. Rights Watch, ‘‘I know the stories we them. And, regrettably, there is no big- This included a commitment to press have done have angered the Chinese ger offender in this regard than China. freedom. In the days leading up to the Government, and my visa renewal And, again, this is one of the main rea- Olympic vote, Wang Wei, Secretary problems began after,’’ after those re- sons we have chosen to highlight China General of the Beijing Olympic Bidding ports. here tonight. Committee, said, ‘‘We will give the Other foreign correspondents have Before I discus China’s imprisonment media complete freedom to report been detained for legal reporting ac- of journalists, I would like to give a when they come to China.’’ tivities. The New York Times Shang- brief overview of this problem around Regrettably, though, China has not hai-based correspondent David the world. And in fairness and in com- delivered ‘‘complete freedom’’ to its Barboza, his Chinese assistant, and a pleteness, while we are focusing on own reporters. In September, 2007 Teng photographer were detained for more China because of the magnitude of the Biao and Hu Jia, two of China’s most than 10 hours by staff at a factory in problem there and because of the prom- celebrated human rights activists, in Guangdong province while doing a ises that were made in advance of the an open letter to the international story about toxic lead paint discovered Olympics, it’s important to recognize community, detailed China’s failure to in the factory’s exports to the United this is by no means a problem confined live up to its Olympic commitments, States. Barboza was eventually let go to China. Tragically, as we’ve seen in including press freedom. Teng and Hu after writing a statement explaining the diagrams we had up earlier, press wrote: the reason for his factory visit and freedom is very limited in many places ‘‘As of this writing, 35 Chinese jour- stating that he hadn’t obtained permis- around the world and under great as- nalists and 51 writers are still in pris- sion to take the photographs. sault in many places around the world. on. Over 90 percent were arrested or At particular risk are the assistants So China is not unique in this respect. tried after Bejing’s successful bid for and sources of foreign reporters as It is unique in its size. It’s unique in the Olympics in July of 2001. For exam- they’re helping on stories that domes- some of the technological instruments ple, Dr. Xu Zerong, a scholar from Ox- tic reporters cannot cover. One local it has used to effectuate censorship in ford University who researched the Ko- assistant of a foreign press cor- this era of Internet journalism, but it rean War, was sentenced to 13 years’ respondent was told by security agents is not unique around the world for this imprisonment for ‘illegally providing that it was his responsibility to notify problem. information abroad.’ Qingshuijun, the agents if the reporter was uncover- According to the Committee to Pro- Huang Jinqiu, a freelance writer, was ing anything sensitive and warned him tect Journalists, as of December 1, 2007, sentenced to a 12-year term of impris- and his family of possible legal action 127 journalists were in prison around onment for his online publications. if he did not. Sipa Press photographer the world as a consequence of their Some writers and dissidents are prohib- Natalie Behring described to Human work. Of these more than 80 were being ited from going abroad; others from re- Rights Watch the obstacles foreign re- held by only five countries, however: turning to China.’’ porters face in finding a cooperative China, Cuba, Eritrea, Azerbaijan, and Due to this letter, due to this letter, source: ‘‘In light of the new rules, the Burma. Hu Jia now sits in jail. I will be Chinese Government can’t stop us from This statistic only includes journal- profiling his case later in the hour. talking to anyone; so they intimidate ists that the Committee to Protect Human Rights Watch reports that the subjects of our reporting rather Journalists can account for and that Chinese journalists remain closely ob- than intimidating the reporters.’’ CPJ has confirmed are being jailed. It served by state security agencies to en- In the fall of last year, I, along with does not include another alarming cat- sure that their reporting reflects the my Congressional Caucus For Freedom egory that the organization tracks, and official government position. The gov- of the Press co-Chair Mike Pence, that is journalists who have either dis- ernment’s Publicity Department heav- wrote a letter to Liu Qin, president of appeared or have been abducted by

VerDate Aug 31 2005 04:14 May 09, 2008 Jkt 069060 PO 00000 Frm 00145 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.141 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3334 CONGRESSIONAL RECORD — HOUSE May 8, 2008 nonstate entities, including criminal promise, with all of its future, and with able journalism, for journalism we groups and gangs, rebels, and militant a current policy extremely inhibiting would applaud in this country, these groups. of a free press. journalists are being jailed. Zhang CPJ’s research has found that nearly In addition to hosting the summer’s Jianhong, for example, the former edi- 17 percent of journalists jailed world- Olympic games, China’s the world most tor of the now closed news website Ae- wide in 2007 were held without any pub- populous nation, permanent member of gean Sea, was arrested in 2006 and licly disclosed charge. Many for the United Nations Security Council, charged with ‘‘inciting subversion’’ for months, some for years, and some in and as I mentioned, an emerging super- posting an essay criticizing China’s secret locations. power. Rightly or wrongly, many coun- human rights record and the poor The majority of journalists being im- tries look to China to set an example treatment of journalists, ironically prisoned are being held on spurious that others can follow. In this case ahead of the Olympic games. antistate allegations such as subver- that is a great concern to the well- Lawyer Yan Maodong, who also calls sion or divulging state secrets or act- being of global citizenry. himself Guo Feixiong, and his picture ing against some undefined national in- As I mentioned here tonight, China is here as well in the upper right-hand terests. CPJ has found out that about promised the world community to im- corner, was arrested in September of 57 percent of journalists in their survey prove press freedom in advance of the 2006 because of his critical writings and are jailed under these charges, and of Olympics. For 9 years, however, it has human rights activism. He was offi- those many are being held, regrettably, held the distinction of being the cially accused of selling a book using a by the Chinese Government. world’s largest jailer of journalists. false publishing reference, but he says These statistics demonstrate that As the Internet continues to grow the book’s content was what the gov- China is not the only offender in this and more and more people around the ernment objected to. But imagine practice but clearly one of the worst. world have access to the Internet, more being jailed since September of 2006 on As we have stated, we have set aside people are getting their news online. the charges of using a false publishing this time tonight to highlight China. Nowhere is this truer than in China. reference. But while we are on the subject of This is a fact that the Chinese Govern- According to the New York Times, jailing journalists nationwide, I would ment has not overlooked. And that is Guo had repeatedly called on China’s like to take a brief moment to discuss why 18 of the 29 jailed journalists Communist party leadership to liber- one particular case in Eritrea that was worked online, according to CPJ. Re- alize the political system. His wife and brought to my attention by a con- porters Without Borders lists China as supporters in the international human stituent of mine who works with Am- jailing an additional 50 ‘‘cyber-dis- rights community have said that Guo nesty International Group 22 in Pasa- sidents.’’ has been tortured in custody and that dena. China’s list includes imprisoned the police coerced him to confess to a Eritrea is a country of only 4.6 mil- Internet journalist Shi Tao, an award- nonpolitical crime. He was sentenced lion people; yet it imprisons the third- winning journalist who is serving a 10- to 5 years in prison in November of 2007 most journalists of any country: 14. year sentence for e-mailing details of a for ‘‘illegal commercial activity.’’ What’s worse, the Government of Eri- government propaganda directive to an The New York Times has also re- trea will not even confirm whether the overseas Web site. We’ll talk more ported that a Tibetan scholar, Dolma journalists in its custody are alive or about Shi Tao later tonight. Kyab, Dolma’s picture is here to my far dead, and it also holds the most jour- But the list of China’s unenviable right, has been jailed since 2005 after nalists in secret locations. distinctions when it comes to press writing an unapproved history of Tibet. One such journalist being held in a freedom and the jailing of journalists Reporters Without Borders reports secret location in Eritrea is Seyoum includes one other significant fact: that Dolma was sentenced to 10 years Tsehaye, a freelance reporter. His ar- CPA lists China as having the longest- in prison at a secret trial on September rest and jailing was believed to be part serving journalists in jail. Chen Renjie 16, 2005, by the Lhasa People’s Inter- of the government’s crackdown to and Lin Youping were jailed in China mediate Court for ‘‘endangering state eliminate political dissent ahead of in July, 1983, for publishing a pamphlet security’’ and for alleging spying. He elections scheduled for December of titled Ziyou Bao Freedom Report. managed to smuggle a letter out of 2001, which were later cancelled. He prison in September 2005 to the U.N. b 2100 was arrested on the street in Sep- Human Rights Commission saying he tember of that year, the first day of a And their co-defendant, Chen Biling had been jailed for writing about de- major round-up and imprisonment of was executed. We will profile these mocracy, freedom and the situation in reformers in Eritrea. There are con- journalists later tonight as well. Tibet. cerns about his health, but the govern- Journalists in China are also held in Zheng Yichun is another illustration ment has refused to provide details appalling conditions. Prison is never of the problem in China. He was sen- about his well-being. He has never been pleasant no matter what country you tenced to 7 years in prison followed by allowed a family visit or a lawyer. He are in, but Reporters Without Borders 3 years of deprivation of political has never been charged or appeared be- reports that journalists in jail in China rights for writing a series of editorials fore any court. Last year Reporters frequently experience the harshest of that directly criticized the Communist Without Borders honored him as their conditions. They are placed in over- party and its control of the media. ‘‘2007 Journalist of the Year.’’ And to- crowded cells, subjected to forced labor Li Changqing, a journalist for the night we take a moment to think and regularly beaten by their guards Fuzhou Daily, was sentenced to 3 years about Seyoum Tsehaye, freelance re- and fellow prisoners. This ill treatment in prison for ‘‘spreading false and porter in Eritrea, held in custody in a is at its worst in the first weeks in cus- alarmist information’’ when he re- secret location since September of 2001. tody when police try to extract confes- ported about a 2004 dengue fever out- So it’s clear this is a problem not sions. Many of the charges weighed break. only associated with China. It is also against journalists in China are In May 2006, Internet writer Yang clear there are more cases of impris- trumped up. For Americans, these Tongyan was sentenced to 12 years in oned journalists around the world than charges are pretty unimaginable. To prison for posting articles on overseas we have time to discuss tonight or, for give you some perspective on why some Web sites in which he simply called for that matter, over the course of a great of the journalists are sitting in jail the release of Chinese dissidents. many nights. right now, I am going to briefly men- In July 2006, Li Yuanlong, a reporter It’s important, though, to cast a tion a few of their cases. for the Bijie Daily, was sentenced to 2 spotlight tonight on China because of These cases are examples of journal- years in prison after he posted essays the significant role it plays on the ists being jailed for what we in the on foreign Web sites in which he dis- international stage. It’s one thing to West would consider responsible jour- cussed the harsh living conditions of talk about Eritrea and the role it nalism. I wouldn’t even get into some peasants in the Guizhou province. plays; it’s another to talk about one of of the other journalism we see here, as Yu Huafeng, I believe we have Yu’s the world’s superpowers with all of its well the rest of the world, but for laud- picture right here to my immediate

VerDate Aug 31 2005 04:14 May 09, 2008 Jkt 069060 PO 00000 Frm 00146 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.143 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3335 right, was the deputy editor and gen- itself from what a free press might un- home. On April 3, 2008, he was sen- eral manager of the Nanfang Dushi cover about corruption, inefficiency, tenced to 3 years’ imprisonment for Bao, Southern Metropolitan News. He human rights abuses, environmental ‘‘incitement to subvert state power,’’ a was detained less than a month after issues, health problems or any other af- charge regularly leveled against activ- the newspaper reported a suspected flictions that might accompany au- ists and dissidents. SARS case in Guangzhou, the first case thoritarian rule. Reporters Without Borders has re- since the epidemic died out in July China’s censorship and intimidation ported that Chinese authorities have 2003. Thankfully, Mr. Huafeng was re- of media are not limited to Chinese prevented Hu from appealing his sen- leased earlier this year when his sen- journalists. Freedom House has also tence. One of his lawyers, Li Fangping, tence was reduced. highlighted the convictions of two Chi- was refused permission to see him 10 Zi Beijia, of Beijing TV, was sen- nese journalists working for the Bei- days after the sentence was handed tenced by the Beijing Number 2 Inter- jing bureau of the New York Times and down. The authorities said he was un- mediate Court to a year in prison for Ching Cheong, a correspondent for dergoing a ‘‘medical examination’’ the unusual crime of ‘‘infringing on the Singapore’s Straits Times in China. prior to entering prison. He was again reputation of a commodity.’’ That is Their convictions may have been in- refused permission to see him on a really quite remarkable. Zi’s arrest tended to intimidate foreign cor- later date on the grounds that the came amid widespread international respondents and newspapers. According deadline for filing the appeal had al- reports about food and product safety to Reporters Sans Frontieres, there ready expired. defects in China. After the arrest, CPJ were at least 25 incidents of arrests, According to Reporters Without Bor- research found that domestic news re- threats or assaults against members of ders, Li wanted to give him official ports about consumer safety were no- the foreign press in 2006 alone. documents related to his appeal which ticeably tamer. So not only is the government in he urgently needed for him to sign. But Imagine in this country if you could China jailing journalists to keep infor- the guards refused without giving any jail a journalist for infringing on the mation from its own people, but it is reason. Hu has not been allowed to reputation of a commodity, for taking also seeking to censor information to take any telephone calls, and his fam- issue with the safety of a child’s toy, the rest of the world. ily is very worried about the state of With this understanding of how and lead paint, the safety of a train or an his health. The plight of Hu has been why the Chinese Government has air bag. Imagine if you could be jailed recognized by leaders around the world. sought to jail journalists, I think it is for that. And you can imagine the situ- Earlier this year, it was reported then important now to profile some of the ation that occurs in present day China. when our Secretary of State, most egregious cases. The reporters in- Wu Lihong, an environmental activ- Condoleezza Rice, met with President volved here are true profiles in cour- ist, was jailed after criticizing the on- Hu Jintao and Prime Minister Wen age. These journalists knew the con- going polluting of Lake Taihu, the Jiabao in Beijing, she raised human sequences of their writings in advance country’s third biggest lake and a rights issues and voiced concern about of their publication. And yet these Chi- major source of drinking water in the the situation of political prisoners of nese journalists believe so strongly eastern province of Jiangsu. He also de- Hu and Shi Tao, whom I will speak that all citizens deserve access to in- nounced the uncontrolled dumping of about next. The following day, Chinese formation, that they are willing to put industrial waste by privatized city- foreign ministry spokesman Liu their freedom on the line to better in- owned firms. After being hounded by Jianchao insisted that Hu was being form the public. These journalists police and local organizations, he was detained legally. ought to be commended for their work, Earlier this year, the Paris City arrested in April 2007 and thrown in not jailed. And that is what we are Council named Hu an honorary citizen jail, accused of demanding money from doing here tonight. We are saying of Paris. This title was bestowed on Hu the firms. He was tortured during in- ‘‘thank you’’ to all the brave Chinese for his work as an activist on behalf of terrogations and not allowed any de- journalists, Eritrean journalists, Cuban human rights, free expression, the en- fense witnesses at his trial. He was sen- journalists, and all other journalists vironment, and HIV/AIDS sufferers. tenced to 3 years in prison for theft and around the world who have risked their Other people to have been declared extortion. safety and freedom to spread valuable honorary citizens of Paris include In- And again, it is hard to imagine what information around their countries and grid Betancourt, a Colombian politi- it would be like in this country if re- around the world, information that we cian with French citizenship currently porting about contamination of drink- benefit from. a hostage of FARC guerillas, and Bur- ing water or dumping of toxics into a The concept of censorship of the mese opposition leader Aung San Suu lake would end you up in prison for a media can be so strange to us here in Kyi. matter of years without any ability to America that we often don’t realize Next I would like to profile Shi Tao. present the defense. And unfortu- that journalism can cost one his or her The Chinese Government often uses nately, that is the situation that Wu freedom or even their life, as we have vaguely worded laws to detain journal- Lihong found himself in. seen in Russia and indeed in China. So ists, dissidents and others in the peace- An outbreak of disease, government let’s go to some of these profiles. ful exercise of their right of free ex- corruption, public safety concerns, to I would like to start the profiles to- pression, including those arrested for me these are stories that the press night with the leading activist named the legitimate use of the Internet. This should be reporting. Indeed, in terms of Hu Jia who called for greater attention is despite the fact that the right to the interests of the Chinese people, to human rights around the Olympics freedom of expression is protected in these are stories the Chinese people and was arrested on January 30 of this China’s constitution. need to know. These are the stories year according to Human Rights One of the many unfortunate exam- that the public has the right to know Watch. Press Freedom—and Hu is pic- ples of this practice is the continued about, and the press has an obligation tured to my right—and human rights imprisonment of Shi Tao—his photo- to report. Articles like these were ex- organizations are concerned that Hu is graph exhibited here—a journalist and actly what the framers of our Constitu- being prosecuted simply for exercising poet imprisoned solely for exercising tion had in mind when they drafted the his rights to freedom of opinion and ex- his right to freedom of expression and First Amendment. This is exactly what pression. At issue is an open letter that his right to seek, receive and impart Thomas Jefferson said and had in mind he co-authored calling for the inter- information. when he said that ‘‘no government national community to look beyond Shi, the former editorial director at ought to be without censors,’’ in his the veneer put in place in Beijing for the Changsha-based newspaper Dangdai case he was meaning critics, ‘‘and the Olympics and to seriously examine Shang Bao, was detained near his home where the press is free, no one ever the extent to which China had fulfilled in Taiyuan in the Shanxi province. In will.’’ the promises it made to improve April 2004, Mr. Tao sent an e-mail from The Chinese Government is not cen- human rights in advance of the games. his Yahoo account to a U.S.-based pro- soring the press out of national secu- Three months after publication of democracy website in which he summa- rity concerns, but instead to shield this letter, Hu was arrested at his rized a government order directing

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00147 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.151 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3336 CONGRESSIONAL RECORD — HOUSE May 8, 2008 media organizations in China to down- geous journalist should do. That is why According to their findings in 2007, at play the upcoming 15th anniversary of he has got the support and the sym- least nine additional journalists and the Tiananmen crackdown. pathy from his colleagues all over the online writers were detained during the In the anonymous e-mail sent several world who uphold justice. year for information they had pub- months before his arrest, Shi tran- ‘‘Here and now, I am able to stand on lished on the Internet, particularly on scribed his notes from the local propa- the stage on behalf of my son.’’ U.S.-based independent Chinese news ganda department instructions to the What an arduous journey it has been Web sites. In China, Web sites that newspaper which included directives on to tell you the truth. I can’t believe it have not established or not been estab- coverage of the Falun Gong and the up- is true, and even the best human lan- lished by an official news outlet such coming 15th anniversary of the mili- guage in the world cannot express the as a newspaper or broadcaster are for- tary crackdown on demonstrators at gratitude from the mother and son. bidden from gathering or editing their Tiananmen Square. The official Xinhua It’s good to know that awards like own news or commentary. News Agency reported that the Na- these help provide at least a little com- Legally, they can only reproduce ma- tional Administration for the Protec- fort for journalists like Shi. But, more terial that has passed through sensors tion of State Secrets later certified the importantly, these awards should raise at approved media organizations. As we contents of the e-mail as classified, awareness surrounding press freedom have mentioned tonight, all media in later certified them as classified. abuses around the world. Mr. Shi is China are government controlled. China is not the only country to b 2115 clearly deserving of all these accolades. The Chinese people and citizens around manage public opinion by controlling On the basis of this e-mail, police ar- the world are thankful for his dedica- the Internet. As of 2007, CPJ had docu- rested Shi 6 months later in November tion to true journalism. mented Internet censorship in 22 coun- of 2004, charging him with ‘‘illegally Next I am going to speak about two tries worldwide, but China was first to providing state secrets to foreign enti- dedicated Chinese journalists who have launch a comprehensive program to ties,’’ as if Chinese efforts to downplay been detained longer than any journal- censor online speech and to monitor e- or fail to report on Tiananmen were ists in the world today, Chen Renjie mail and text messaging. Its censorship somehow a state secret. On April 27, and Lin Youping. Twenty-four years program is so expansive and tech- 2005 the Changsha Intermediate Peo- after their imprisonment in the early nically sophisticated that countries ple’s Court found Shi guilty and sen- days of China’s economic reform, Chen such as Vietnam, Zimbabwe, and Thai- tenced him to a 10-year prison term in land have adopted its practices. June. Renjie and Lin Youping have been in prison longer than any journalists in This gets back to what I have re- In June, the Hunan Province High ferred to earlier tonight, the fact that People’s Court rejected his appeal CPJ’s worldwide census. The two men, along with Chen because of its prominence China sets without granting a hearing. Court doc- an example, for good or for bad, in this uments in the case revealed that Yahoo Biling, wrote and published a pamphlet entitled Ziyou Bao (Freedom Report). case, regrettably, for ill. Due to tech- had supplied information to Chinese nological advancements and the efforts authorities that helped them identify They distributed 300 copies of the pam- phlet in the southern Chinese City of of overseas activists, the Chinese gov- Shi as the sender of the e-mail. In No- ernment attempt to suppress informa- vember of 2005 CPJ honored Shi with Fuzhou, Fujian province, in September, 1982. tion has become more difficult, but its annual Internation Press Freedom that has not stopped the government’s Award for his courage and defending The following July, they were ar- rested and accused of making contact efforts to censor online information. the ideals of free expression. Many have referred to Internet re- with Taiwanese spy groups and pub- On June 4, 2007 the 18th anniversary strictions in China as the ‘‘Great Fire- lishing a counterrevolutionary pam- of Tiananmen Square, Shi received an wall of China.’’ The government em- phlet. According to government official additional honor, the Golden Pen of ploys extensive surveillance and fil- records of the case, the men used Freedom Award. The award is the an- tering systems to prevent Internet ‘‘propaganda and incitement to encour- nual press freedom prize from the users from accessing material that the World Association of Newspapers, age the overthrow of the people’s government considers obscene, harmful which is based in Paris and is the glob- democratic dictatorship and the social- to national unity or politically subver- al organization for the newspaper in- ist system.’’ sive. dustry. It has awarded the Golden Pen In August, 1983, Chen was sentenced In May of 2007 Reporters Without annually since 1961. to life in prison and Lin was sentenced Borders launched a Web site in Chi- Shi also was presented with PEN New to death with reprieve. Chen Biling was nese, and it was blocked within hours England’s Vasyl Stus Award in 2006. sentenced to death and later executed. of going live. Additionally, all IP ad- The award is presented to a writer who Their case is so old, and with the dresses linked to a Web site deemed un- has been persecuted for the peaceful lack of an independent and open media, desirable are blocked without warning. expression of his or her views and we have had a hard time finding out As the web has become a new forum whose courage in the face of censorship more information about Chen Renjie to distribute information, the Chinese and oppression has been exemplary. and Lin. However, I would be remiss if government continues to create new This award is named after the poet, I did not pay special attention to high- laws to suppress the free flow of infor- Vasyl Stus, who became a leading voice light these two reporters who have en- mation on the Internet. In the 5 years of his generation and who was also the dured more time in jail, due to their ef- after China first allowed private Inter- last Ukranian writer to die in the So- fort to share information, than any net accounts in 1995, it has issued more viet Gulag. Unfortunately, all of these other journalist today. than 60 sets of regulations to tighten awards are presented in absentia due to The last topic I want to focus on to- its control of online content. Mr. Shi’s continued incarceration. His night is Internet censorship. According These regulations continue today. In mother accepted the Golden Pen of to Freedom House, China is the world’s 2005 the government introduced new Freedom award from WAN on his be- second largest population of Internet regulations that bar Web sites from half in June of last year. users after the United States, with an distributing information that violates At the awards ceremony she ex- estimated 210 million people online, or Chinese constitutional provisions, en- pressed what the award meant to both just under 16 percent of the country’s dangers national security, encourages her and her son when she stated, ‘‘In population. illegal strikes or promotes unrecog- China, he was taken as a criminal, but However, access to China, to the nized religious groups. In March of 2007 today WAN, made up of over 100 news- Internet in China, is not the same as the Ministry of Culture and the Min- paper organizations, awards him the access to the Internet here in America. istry of Information Industries banned Golden Pen of Freedom. It is not only Freedom House’s 2008 press freedom the opening of new Internet cafes, an honor but also a huge comfort to survey reported that last year in China 113,000 were in existence at the time. Shi Tao. was marked by additional Internet re- Many times Internet censorship is ‘‘It proves that my son is indeed in- strictions, as well as the jailing of used as a political tool. Internet cen- nocent. He has only done what a coura- more online journalists and bloggers. sorship in China increased prior to and

VerDate Aug 31 2005 03:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00148 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.152 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3337 during the 17th Party Congress in Octo- hind proxy servers, and use a range of (The following Members (at the re- ber of last year, during which the party tactics to side-step government censor- quest of Mr. TERRY) to revise and ex- leadership for the next 5 years was en- ship and spread good information to tend their remarks and include extra- dorsed. Between April and September, the Chinese public. neous material:) access to over 18,000 Web sites was But it’s our hope that these bloggers Mr. POE, for 5 minutes, May 15. blocked. and our journalists someday will not Mr. JONES of North Carolina, for 5 The Committee to Protect Journal- have to use these extreme measures. minutes, May 15. ists reported that in September of 2007, We would like to see China reconsider Mr. KELLER of Florida, for 5 minutes, security agencies in several regions or- its regulation and censorship of the May 14. dered Internet data centers, which host media. As we mentioned at the outset Mr. GOHMERT, for 5 minutes, May 14. large numbers of Web sites and blogs, tonight, press freedom provides a valu- f to suspend their service, or disable able, economic and social benefit that interactive features such as bulletin is in China’s best interest to ensure SENATE BILL REFERRED boards and comment sections during free and independent media. A bill of the Senate of the following the Congress’ meeting. We in this country have a great ad- title was taken from the Speaker’s In an apparent effort to overcome dif- miration for the Chinese people. They table and, under the rule, referred as ficulties monitoring audio-visual con- are extraordinarily talented, gifted, re- follows: sourceful people with a great future tent with automated filtering tech- S. Con. Res. 72. Concurrent resolution sup- nology, the government issued a regu- ahead of them. It’s our sincere view porting the goals and ideals of the Inter- lation requiring Web sites with audio that we do no service to our relation- national Year of Sanitation, the Committee visual context to apply for permits. I ship with China not to encourage in on Foreign Affairs. guess that would pretty well put the most forceful way freedom of the f YouTube and other like Web sites out press in that country. of business. We hope, many of us, that the Olym- ADJOURNMENT The regulation, which affects ap- pic Games would give China that op- Mr. SCHIFF. Mr. Speaker, I move proximately 60,000 sites in China, also portunity to move forward and make that the House do now adjourn. banned audio-visual content deemed to progress, and we are disappointed that The motion was agreed to; accord- fall into vaguely defined categories we have not seen that progress that the ingly (at 9 o’clock and 28 minutes such as opposing the principles of the Chinese government representative p.m.), under its previous order, the People’s Republic of China constitu- would make, and, yet, we push forward. House adjourned until Monday, May 12, tion, harming national unity, contrib- Tonight we think about those jour- 2008, at 2 p.m. uting to ethnic divisions or disrupting nalists, some held longer than any oth- social harmony. ers in China, and we urge the Chinese f So if there were entrepreneurs who government to step forward to recog- OATH FOR ACCESS TO CLASSIFIED wanted to start a Chinese version of nize the benefits to China itself of a INFORMATION free press and free media, to free jour- YouTube, unless they register, unless Under clause 13 of rule XXIII, the fol- nalists who are imprisoned for doing YouTube registers, that would be pro- lowing Members executed the oath for work important to the Chinese people. hibited. Indeed the content on those access to classified information: sites would be strictly scrutinized by We hope that these efforts will be un- the Chinese government. According to dertaken soon, that some of the jour- Neil Abercrombie, Gary L. Ackerman, Rob- nalists that we profiled here tonight ert B. Aderholt, W. Todd Akin, Rodney Alex- Freedom House, in some instances re- ander, Thomas H. Allen, Jason Altmire, Rob- strictions were imposed on a local will be released back into the warmth ert E. Andrews, Michael A. Arcuri, Joe Baca, level, after bloggers supported a pro- of their own families and their own Michele Bachmann, Spencer Bachus, Brian test against construction of a chemical homes, whether they are in China or Baird, Richard H. Baker, Tammy Baldwin, J. factory. Eritrea or in Cuba or in so many parts Gresham Barrett, John Barrow, Roscoe G. Near the southern City of Xiamen, of the world. That is our fond hope and Bartlett, Joe Barton, Melissa L. Bean, Xa- the local government adopted meas- desire and the raison d’etre of our cau- vier Becerra, Shelley Berkley, Howard L. ures requiring Internet users to provide cus on freedom of the press. Berman, Marion Berry, Judy Biggert, Brian P. Bilbray, Gus M. Bilirakis, Rob Bishop, their real names when posting material f Sanford D. Bishop, Jr., Timothy H. Bishop, on more than 100,000 Web sites reg- LEAVE OF ABSENCE Marsha Blackburn, Earl Blumenauer, Roy istered in the city. The Chinese govern- Blunt, John A. Boehner, Jo Bonner, Mary ment demands that individual service By unanimous consent, leave of ab- Bono, John Boozman, Madeleine Z. Bordallo, providers monitor content. These pro- sence was granted to: Dan Boren, Leonard L. Boswell, Rick Bou- viders filter searches, block Web sites, Mr. COHEN (at the request of Mr. cher, Charles W. Boustany, Jr., Allen Boyd, delete content and monitor e-mail traf- HOYER) for today on account of attend- Nancy E. Boyda, Kevin Brady, Robert A. fic. ing funeral. Brady, Bruce L. Braley, Paul C. Broun, The Chinese language search engines Ms. MCCOLLUM of Minnesota (at the Corrine Brown, Henry E. Brown, Jr., Ginny request of Mr. HOYER) for today from Brown-Waite, Vern Buchanan, Michael C. of many U.S. firms filter search results Burgess, Dan Burton, G.K. Butterfield, Steve and restrict access to information 12:15 p.m. to 2:30 p.m. Mr. CAMPBELL of California (at the Buyer, about topics deemed sensitive by the Ken Calvert, Dave Camp, John Campbell, request of Mr. BOEHNER) for today on government. These include searches Chris Cannon, Eric Cantor, Shelley Moore account of illness. such as Falun Gong, Tibetan independ- Capito, Lois Capps, Michael E. Capuano, ence, and human rights. f Dennis A. Cardoza, Russ Carnahan, Chris- U.S. filters have to adopt certain re- SPECIAL ORDERS GRANTED topher P. Carney, Andre´ Carson, Julia Car- strictions. U.S. sites, like YouTube and son, John R. Carter, Michael N. Castle, By unanimous consent, permission to Kathy Castor, Donald J. Cazayoux, Jr., Steve others, are subject to the same scru- address the House, following the legis- Chabot, Ben Chandler, Donna M. tiny. In 2007, more than 20 companies, lative program and any special orders Christensen, Yvette D. Clarke, Wm. Lacy some American, were forced to sign a heretofore entered, was granted to: Clay, Emanuel Cleaver, James E. Clyburn, self-disciplined pact which forces them (The following Members (at the re- Howard Coble, Steve Cohen, Tom Cole, K. to censor the content to blogs they quest of Mr. SHERMAN) to revise and ex- Michael Conaway, John Conyers, Jr., Jim host in China as bloggers to provide tend their remarks and include extra- Cooper, Jim Costa, Jerry F. Costello, Joe their real identity and to delete post- Courtney, Robert E. (Bud) Cramer, Jr., neous material:) Ander Crenshaw, Joseph Crowley, Barbara ings considered illegal and unhealthy. Ms. WOOLSEY, for 5 minutes, today. Despite all this discouraging news Cubin, Henry Cuellar, John Abney Mr. GENE GREEN of Texas, for 5 min- Culberson, Elijah E. Cummings, Artur Davis, there is a silver lining, though, the utes, today. Danny K. Davis, David Davis, Geoff Davis, Jo government’s efforts are not foolproof. Mr. DEFAZIO, for 5 minutes, today. Ann Davis, Lincoln Davis, Susan A. Davis, Brave and determined bloggers contin- Mr. RYAN of Ohio, for 5 minutes, Tom Davis, Nathan Deal, Peter A. DeFazio, ually pop up, change addresses, hide be- today. Diana DeGette, William D. Delahunt, Rosa

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00149 Fmt 4634 Sfmt 0634 E:\CR\FM\K08MY7.154 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3338 CONGRESSIONAL RECORD — HOUSE May 8, 2008 L. DeLauro, Charles W. Dent, Lincoln Diaz- Howard P. ‘‘Buck’’ McKeon, Cathy McMorris Tauscher, Gene Taylor, Lee Terry, Bennie G. Balart, Rodgers, Jerry McNerney, Michael R. Thompson, Mike Thompson, Mac Thorn- Mario Diaz-Balart, Norman D. Dicks, John McNulty, Connie Mack, Tim Mahoney, Caro- berry, Todd Tiahrt, Patrick J. Tiberi, John D. Dingell, Lloyd Doggett, Joe Donnelly, lyn B. Maloney, Donald A. Manzullo, Kenny F. Tierney, Edolphus Towns, Niki Tsongas, John T. Doolittle, Michael F. Doyle, Thelma Marchant, Edward J. Markey, Jim Marshall, Michael R. Turner, Mark Udall, Tom Udall, D. Drake, David Dreier, John J. Duncan, Jr., Jim Matheson, Doris O. Matsui, Martin T. Fred Upton, Chris Van Hollen, Chet Edwards, Vernon J. Ehlers, Keith Meehan, Kendrick B. Meek, Gregory W. Nydia M. Vela´ zquez, Peter J. Visclosky, Ellison, Brad Ellsworth, Rahm Emanuel, Jo Meeks, Tim Walberg, Greg Walden, James T. Walsh, Ann Emerson, Eliot L. Engel, Phil English, Charlie Melancon, John L. Mica, Michael Timothy J. Walz, Zach Wamp, Debbie Anna G. Eshoo, Bob Etheridge, Terry Ever- H. Michaud, Juanita Millender-McDonald, Wasserman Schultz, Maxine Waters, Diane ett, Eni F.H. Faleomavaega, Mary Fallin, Brad Miller, Candice S. Miller, Gary G. Mil- E. Watson, Melvin L. Watt, Henry A. Wax- Sam Farr, Chaka Fattah, Tom Feeney, Mike ler, Jeff Miller, Harry E. Mitchell, Alan B. man, Anthony D. Weiner, Peter Welch, Dave Ferguson, Bob Filner, Jeff Flake, J. Randy Mollohan, Dennis Moore, Gwen Moore, Weldon, Jerry Weller, Lynn A. Westmore- Forbes, Jeff Fortenberry, Luis G. Fortun˜ o, James P. Moran, Jerry Moran, Christopher land, Robert Wexler, Ed Whitfield, Roger F. Vito Fossella, Bill Foster, Virginia Foxx, S. Murphy, Patrick J. Murphy, Tim Murphy, Wicker, Charles A. Wilson, Heather Wilson, Barney Frank, Trent Franks, Rodney P. John P. Murtha, Marilyn N. Musgrave, Sue Joe Wilson, Robert J. Wittman, Frank R. Frelinghuysen, Elton Gallegly, Scott Gar- Wilkins Myrick, Jerrold Nadler, Grace F. Wolf, Lynn C. Woolsey, David Wu, Albert rett, Jim Gerlach, Gabrielle Giffords, Wayne Napolitano, Richard E. Neal, Randy Russell Wynn, John A. Yarmuth, C.W. Bill T. Gilchrest, Kirsten E. Gillibrand, Paul E. Neugebauer, Eleanor Holmes Norton, Charlie Young, Don Young. Gillmor, Phil Gingrey, Louie Gohmert, Norwood, Devin Nunes, James L. Oberstar, Charles A. Gonzalez, Virgil H. Goode, Jr., David R. Obey, John W. Olver, Solomon P. f Bob Goodlatte, Bart Gordon, Kay Granger, Ortiz, Frank Pallone, Jr., Bill Pascrell, Jr., Sam Graves, Al Green, Gene Green, Rau´ l M. Ed Pastor, Ron Paul, Donald M. Payne, Grijalva, Luis V. Gutierrez, John J. Hall, Stevan Pearce, Nancy Pelosi, Mike Pence, NOTICE OF PROPOSED Ralph M. Hall, Phil Hare, Jane Harman, J. Ed Perlmutter, Collin C. Peterson, John E. RULEMAKING Dennis Hastert, Alcee L. Hastings, Doc Peterson, Thomas E. Petri, Charles W. U.S. CONGRESS, Hastings, Robin Hayes, Dean Heller, Jeb ‘‘Chip’’ Pickering, Joseph R. Pitts, Todd OFFICE OF COMPLIANCE, Hensarling, Wally Herger, Stephanie Russell Platts, Ted Poe, Earl Pomeroy, Jon Washington, DC, April 16, 2008. Herseth, Brian Higgins, Baron P. Hill, Mau- C. Porter, David E. Price, Tom Price, Debo- Hon. NANCY PELOSI, rice D. Hinchey, Ruben Hinojosa, Mazie K. rah Pryce, Adam H. Putnam, George Radan- Speaker, House of Representatives, Hirono, David L. Hobson, Paul W. Hodes, ovich, Washington, DC. Peter Hoekstra, Tim Holden, Rush D. Holt, Nick J. Rahall II, Jim Ramstad, Charles B. DEAR MADAM SPEAKER: Section 304(b)(1) of Michael M. Honda, Darlene Hooley, Steny H. Rangel, Ralph Regula, Dennis R. Rehberg, the Congressional Accountability Act of 1995 Hoyer, Kenny C. Hulshof, Duncan Hunter, David G. Reichert, Rick Renzi, Silvestre (CAA), 2 U.S.C. 1384(b)(1), requires that, with Bob Inglis, Jay Inslee, Steve Israel, Darrell Reyes, Thomas M. Reynolds, Laura Richard- regard to the initial proposal of substantive E. Issa, Jesse L. Jackson, Jr., Sheila Jack- son, Ciro D. Rodriguez, Harold Rogers, Mike regulations under the CAA, the Board ‘‘shall son-Lee, William J. Jefferson, Bobby Jindal, Rogers (AL), Mike Rogers (MI), Dana Rohr- publish a general notice of proposed rule- Eddie Bernice Johnson, Henry C. ‘‘Hank’’ abacher, Peter J. Roskam, Ileana Ros- making’’ and ‘‘shall transmit such notice to Johnson, Jr., Sam Johnson, Timothy V. Lehtinen, Mike Ross, Steven R. Rothman, the Speaker of the House of Representatives Johnson, Stephanie Tubbs Jones, Walter B. Lucille Roybal-Allard, Edward R. Royce, and the President Pro Tempore of the Senate Jones, Jim Jordan, Steve Kagen, Paul E. C.A. Dutch Ruppersberger, Bobby L. Rush, for publication in the Congressional Record Kanjorski, Marcy Kaptur, Ric Keller, Pat- Paul Ryan, Tim Ryan, John T. Salazar, Bill on the first day on which both Houses are in rick J. Kennedy, Dale E. Kildee, Carolyn C. Sali, Linda T. Sa´ nchez, Loretta Sanchez, session following such transmittal.’’ Kilpatrick, Ron Kind, Peter T. King, Steve John P. Sarbanes, Jim Saxton, Steve The Board of Directors of the Office of King, Jack Kingston, Mark Steven Kirk, Ron Scalise, Janice D. Schakowsky, Adam B. Compliance is transmitting herewith the en- Klein, John Kline, Joe Knollenberg, Schiff, Jean Schmidt, Allyson Y. Schwartz, closed Notice of Proposed Rulemaking. The John R. ‘‘Randy’’ Kuhl, Jr., Ray LaHood, David Scott, Robert C. ‘‘Bobby’’ Scott, F. Board requests that the accompanying No- Doug Lamborn, Nick Lampson, James R. James Sensenbrenner, Jr., Jose´ E. Serrano, tice be published in both the House and Sen- Langevin, Tom Lantos, Rick Larsen, John B. Pete Sessions, Joe Sestak, John B. Shadegg, ate versions of the Congressional Record on Larson, Tom Latham, Steven C. LaTourette, Christopher Shays, Carol Shea-Porter, Brad the first day on which both Houses are in Robert E. Latta, Barbara Lee, Sander M. Sherman, John Shimkus, Heath Shuler, Bill session following receipt of this transmittal. Levin, Jerry Lewis, John Lewis, Ron Lewis, Shuster, Any inquiries regarding the accompanying John Linder, Daniel Lipinski, Frank A. Michael K. Simpson, Albio Sires, Ike Skel- Notice should be addressed to Tamara E. LoBiondo, David Loebsack, Zoe Lofgren, ton, Louise McIntosh Slaughter, Adam Chrisler, Executive Director of the Office of Nita M. Lowey, Frank D. Lucas, Daniel E. Smith, Adrian Smith, Christopher H. Smith, Compliance, 110 2nd Street, SE., Room LA– Lungren, Stephen F. Lynch, Carolyn McCar- Lamar Smith, Vic Snyder, Hilda L. Solis, 200, Washington, DC 20540; 202–724–9250, TDD thy, Kevin McCarthy, Michael T. McCaul, Mark E. Souder, Zachary T. Space, John M. 202–426–1912, [email protected]. Betty McCollum, Thaddeus G. McCotter, Jim Spratt, Jr., Jackie Speier, Cliff Stearns, Bart Sincerely, McCrery, James P. McGovern, Patrick T. Stupak, John Sullivan, Betty Sutton, Thom- SUSAN S. ROBFOGEL, McHenry, John M. McHugh, Mike McIntyre, as G. Tancredo, John S. Tanner, Ellen O. Chair, Board of Directors.

VerDate Aug 31 2005 04:36 May 09, 2008 Jkt 069060 PO 00000 Frm 00150 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.070 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3339

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00151 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D3 here EH08MY08.001 H3340 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00152 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D4 here EH08MY08.002 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3341

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00153 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D5 here EH08MY08.003 H3342 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00154 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D6 here EH08MY08.004 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3343

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00155 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D7 here EH08MY08.005 H3344 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00156 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D8 here EH08MY08.006 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3345

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00157 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D9 here EH08MY08.007 H3346 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00158 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D10 here EH08MY08.008 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3347

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00159 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D11 here EH08MY08.009 H3348 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00160 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D12 here EH08MY08.010 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3349

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00161 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D13 here EH08MY08.011 H3350 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00162 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D14 here EH08MY08.012 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3351

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00163 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D15 here EH08MY08.013 H3352 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00164 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D16 here EH08MY08.014 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3353

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00165 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D17 here EH08MY08.015 H3354 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00166 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D18 here EH08MY08.016 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3355

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00167 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D19 here EH08MY08.017 H3356 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00168 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D20 here EH08MY08.018 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3357

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00169 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D21 here EH08MY08.019 H3358 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00170 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D22 here EH08MY08.020 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3359

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00171 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D23 here EH08MY08.021 H3360 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00172 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D24 here EH08MY08.022 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3361

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00173 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D25 here EH08MY08.023 H3362 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00174 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D26 here EH08MY08.024 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3363

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00175 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D27 here EH08MY08.025 H3364 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00176 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D28 here EH08MY08.026 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3365

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00177 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D29 here EH08MY08.027 H3366 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00178 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D30 here EH08MY08.028 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3367

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00179 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D31 here EH08MY08.029 H3368 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00180 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D32 here EH08MY08.030 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3369

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00181 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D33 here EH08MY08.031 H3370 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00182 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D34 here EH08MY08.032 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3371

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00183 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D35 here EH08MY08.033 H3372 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00184 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D36 here EH08MY08.034 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3373

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00185 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D37 here EH08MY08.035 H3374 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00186 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D38 here EH08MY08.036 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3375

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00187 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D39 here EH08MY08.037 H3376 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00188 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D40 here EH08MY08.038 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3377

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00189 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D41 here EH08MY08.039 H3378 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00190 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D42 here EH08MY08.040 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3379

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00191 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D43 here EH08MY08.041 H3380 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00192 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D44 here EH08MY08.042 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3381

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00193 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D45 here EH08MY08.043 H3382 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00194 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D46 here EH08MY08.044 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3383

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00195 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D47 here EH08MY08.045 H3384 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00196 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D48 here EH08MY08.046 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3385

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00197 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D49 here EH08MY08.047 H3386 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00198 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D50 here EH08MY08.048 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3387

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00199 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D51 here EH08MY08.049 H3388 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00200 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D52 here EH08MY08.050 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3389

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00201 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D53 here EH08MY08.051 H3390 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00202 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D54 here EH08MY08.052 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3391

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00203 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D55 here EH08MY08.053 H3392 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00204 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D56 here EH08MY08.054 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3393

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00205 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D57 here EH08MY08.055 H3394 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00206 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D58 here EH08MY08.056 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3395

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00207 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D59 here EH08MY08.057 H3396 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00208 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D60 here EH08MY08.058 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3397

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00209 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D61 here EH08MY08.059 H3398 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00210 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D62 here EH08MY08.060 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3399

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00211 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D63 here EH08MY08.061 H3400 CONGRESSIONAL RECORD — HOUSE May 8, 2008

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00212 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.006 H08MYPT1 smartinez on PROD1PC64 with HOUSE Insert offset folio D64 here EH08MY08.062 May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3401 EXECUTIVE COMMUNICATIONS, prepared in accordance with Section 203 of mittee on Oversight and Government Re- ETC. the Notification and Federal Employee Anti- form. discrimination and Retaliation Act of 2002, 6498. A letter from the Commissioner, So- Under clause 8 of rule XII, executive Pub. L. 107-174; to the Committee on Over- cial Security Administration, transmitting communications were taken from the sight and Government Reform. notification of the details of a public-private Speaker’s table and referred as follows: 6484. A letter from the Director, Office of competition to be initiated by the Adminis- 6474. A letter from the Director, Regu- Economic Impact and Diversity, Department tration, pursuant to Public Law 110-81, sec- latory Management Division, Environmental of Energy, transmitting the Department’s tion 327; to the Committee on Oversight and Protection Agency, transmitting the Agen- annual report for Fiscal Year 2007, prepared Government Reform. cy’s final rule — 1-Methylcyclopropene; in accordance with Section 203 of the Notifi- 6499. A letter from the Assistant Adminis- Amendment to an Exemption from the Re- cation and Federal Employee Antidiscrimi- trator, Bureau for Legislative and Public Af- quirement of a Tolerance [EPA-HQ-OPP- nation and Retaliation Act of 2002 (No FEAR fairs, U.S. Agency for International Develop- 2007-0433; FRL-8357-5] received April 8, 2008, Act), Public Law 107-174; to the Committee ment, transmitting a report pursuant to the pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- on Oversight and Government Reform. Federal Vacancies Reform Act of 1998; to the mittee on Agriculture. 6485. A letter from the White House Liai- Committee on Oversight and Government 6475. A letter from the Secretary of the son, Department of Health and Human Serv- Reform. Army, Department of Defense, transmitting ices, transmitting a report pursuant to the 6500. A communication from the President notification that the Average Procurement Federal Vacancies Reform Act of 1998; to the of the United States, transmitting an Agree- Unit Cost (APUC) metric for the Javelin Ad- Committee on Oversight and Government ment between the United States of America vanced Anti-Tank Missile has exceeded the Reform. and the Czech Republic on Social Security, 15 percent significant cost growth threshold, 6486. A letter from the White House Liai- with a principal agreement and an adminis- pursuant to 10 U.S.C. 2433; to the Committee son, Department of Health and Human Serv- trative arrangement, both signed in Prague on Armed Services. ices, transmitting a report pursuant to the on September 7, 2007, pursuant to 42 U.S.C. 6476. A letter from the Acting General Federal Vacancies Reform Act of 1998; to the 433(e)(1); (H. Doc. No. 110–110); to the Com- Counsel, Department of Defense, transmit- Committee on Oversight and Government mittee on Ways and Means and ordered to be ting a copy of legislative proposals as part of Reform. printed. 6487. A letter from the White House Liai- the National Defense Authorization Bill for 6501. A letter from the Chair of the Board son, Department of Health and Human Serv- Fiscal Year 2009; to the Committee on Armed of Directors, Office of Compliance, transmit- ices, transmitting a report pursuant to the Services. ting notice of proposed procedural rule- Federal Vacancies Reform Act of 1998; to the 6477. A letter from the Comptroller, De- making regulations under Section 304(b)(1) of Committee on Oversight and Government partment of Defense, transmitting the De- the Congressional Accountability Act of 1995 Reform. partment’s quarterly report as of March 31, for publication in the Congressional Record, 6488. A letter from the White House Liai- 2008, entitled, ‘‘Acceptance of contributions pursuant to 2 U.S.C. 1384(b)(1); jointly to the son, Department of Justice, transmitting a for defense programs, projects and activities; Committees on Education and Labor and report pursuant to the Federal Vacancies Re- Defense Cooperation Account,’’ pursuant to House Administration. form Act of 1998; to the Committee on Over- 10 U.S.C. 2608; to the Committee on Armed sight and Government Reform. f Services. 6489. A letter from the Chairman, U.S. Pa- REPORTS OF COMMITTEES ON 6478. A letter from the Director, Regu- role Commission, Department of Justice, latory Management Division, Environmental transmitting a copy of the annual report in PUBLIC BILLS AND RESOLUTIONS Protection Agency, transmitting the Agen- compliance with the Government in the Sun- Under clause 2 of rule XIII, reports of cy’s final rule — Approval and Promulgation shine Act for the calendar year 2007, pursu- committees were delivered to the clerk of Implementation Plans; State of Iowa ant to 5 U.S.C. 552b(j); to the Committee on [EPA-R07-OAR-2008-0241; FRL-8533-1] re- for printing and reference to the proper Oversight and Government Reform. calendar, as follows: ceived April 8, 2008, pursuant to 5 U.S.C. 6490. A letter from the Attorney Advisor, 801(a)(1)(A); to the Committee on Energy and Department of Transportation, transmitting Mr. GEORGE MILLER of California: Com- Commerce. a report pursuant to the Federal Vacancies mittee on Education and Labor. H.R. 3021. A 6479. A letter from the Director, Regu- Reform Act of 1998; to the Committee on bill to direct the Secretary of Education to latory Management Division, Environmental Oversight and Government Reform. make grants and low-interest loans to local Protection Agency, transmitting the Agen- 6491. A letter from the White House Liai- educational agencies for the construction, cy’s final rule — Standards of Performance son, Department of the Treasury, transmit- modernization, or repair of public kinder- for Petroleum Refineries [EPA-HQ-OAR-2007- ting a report pursuant to the Federal Vacan- garten, elementary, and secondary edu- 0011; FRL-8563-2] (RIN: 2060-AN72) received cies Reform Act of 1998; to the Committee on cational facilities, and for other purposes; April 31, 2008, pursuant to 5 U.S.C. Oversight and Government Reform. with an amendment (Rept. 110–623). Referred 801(a)(1)(A); to the Committee on Energy and 6492. A letter from the White House Liai- to the Committee of the Whole House on the Commerce. son, Department of the Treasury, transmit- State of the Union. 6480. A letter from the Director, Regu- ting a report pursuant to the Federal Vacan- Mr. WAXMAN: Committee on Oversight latory Management Division, Environmental cies Reform Act of 1998; to the Committee on and Government Reform. H.R. 5781. A bill to Protection Agency, transmitting the Agen- Oversight and Government Reform. provide that 8 of the 12 weeks of parental cy’s final rule — Approval and Promulgation 6493. A letter from the White House Liai- leave made available to a Federal employee of Air Quality Implementation Plans; Con- son, Department of the Treasury, transmit- shall be paid leave, and for other purposes; necticut; Interstate Transport of Pollution ting a report pursuant to the Federal Vacan- with an amendment (Rept. 110–624 Pt. 1). Or- [EPA-R01-OAR-2007-0452; A-1-FRL-8562-9] re- cies Reform Act of 1998; to the Committee on dered to be printed. ceived April 31, 2008, pursuant to 5 U.S.C. Oversight and Government Reform. Mr. WAXMAN: Committee on Oversight 801(a)(1)(A); to the Committee on Energy and 6494. A letter from the White House Liai- and Government Reform. H.R. 752. A bill to Commerce. son, Department of the Treasury, transmit- direct Federal agencies to donate excess and 6481. A letter from the Director, Regu- ting a report pursuant to the Federal Vacan- surplus Federal electronic equipment, in- latory Management Division, Environmental cies Reform Act of 1998; to the Committee on cluding computers, computer components, Protection Agency, transmitting the Agen- Oversight and Government Reform. printers, and fax machines, to qualifying cy’s final rule — Approval and Promulgation 6495. A letter from the White House Liai- small towns, counties, schools, nonprofit or- of Air Quality Implementation Plans; West son, Department of the Treasury, transmit- ganizations, and libraries; with an amend- Virginia: Transportation Conformity Re- ting a report pursuant to the Federal Vacan- ment (Rept. 110–625). Referred to the Com- quirement [EPA-R03-OAR-2007-1146; FRL- cies Reform Act of 1998; to the Committee on mittee of the Whole House on the State of 8561-2] received April 31, 2008, pursuant to 5 Oversight and Government Reform. the Union. U.S.C. 801(a)(1)(A); to the Committee on En- 6496. A letter from the Chairperson, Na- DISCHARGE OF COMMITTEE ergy and Commerce. tional Council on Disability, transmitting 6482. A letter from the District of Columbia the Council’s Annual Performance Report to Pursuant to clause 2 or rule XII the Auditor, Office of the District of Columbia the President and Congress Fiscal Year 2007, Committee on House Administration Auditor, transmitting a report entitled, as required by the Government Performance discharged from further consideration. ‘‘Performance Measurement System Needs and Results Act, pursuant to 31 U.S.C. 1116; H.R. 5781 referred to the Committee of Long-Term Stability and Commitment to to the Committee on Oversight and Govern- the Whole on the State of the Union. Maximize Effectiveness,’’ pursuant to D.C. ment Reform. Code section 47-117(d); to the Committee on 6497. A letter from the Chairman, National f Oversight and Government Reform. Endowment for the Arts, transmitting the PUBLIC BILLS AND RESOLUTIONS 6483. A letter from the Director, Court Endowment’s report for Fiscal Year 2007, in Services and Offender Supervision Agency accordance with Title II of the Notification Under clause 2 of rule XII, public for the District of Columbia, transmitting and Federal Employee Antidiscrimination bills and resolutions were introduced the Agency’s Fiscal Year 2007 annual report and Retaliation Act of 2002; to the Com- and severally referred, as follows:

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00213 Fmt 4634 Sfmt 0634 E:\CR\FM\L08MY7.000 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3402 CONGRESSIONAL RECORD — HOUSE May 8, 2008

By Mr. JONES of North Carolina: JORSKI, Ms. KAPTUR, Mr. KENNEDY, H.R. 6004. A bill to provide for the financ- H.R. 5993. A bill to promote congressional Mr. KILDEE, Ms. KILPATRICK, Mr. ing of high-speed rail infrastructure, and for and public awareness, understanding, and po- LARSON of Connecticut, Ms. LEE, Mr. other purposes; to the Committee on Trans- litical accountability of presidential signing LEWIS of Georgia, Mr. LIPINSKI, Mrs. portation and Infrastructure, and in addition statements; to the Committee on the Judici- LOWEY, Mr. MCDERMOTT, Mr. MCGOV- to the Committee on Ways and Means, for a ary. ERN, Mr. MCNULTY, Mr. GEORGE MIL- period to be subsequently determined by the By Mr. CONYERS (for himself and Ms. LER of California, Ms. MOORE of Wis- Speaker, in each case for consideration of ZOE LOFGREN of California): consin, Mr. NADLER, Mrs. such provisions as fall within the jurisdic- H.R. 5994. A bill to amend the Clayton Act NAPOLITANO, Mr. OLVER, Mr. PAYNE, tion of the committee concerned. with respect to competitive and nondiscrim- Mr. RAHALL, Mr. ROTHMAN, Mr. RYAN By Mr. BECERRA (for himself, Mr. inatory access to the Internet; to the Com- of Ohio, Ms. LINDA T. SA´ NCHEZ of NUNES, Mr. RANGEL, Mr. mittee on the Judiciary. California, Ms. SCHAKOWSKY, Mr. BLUMENAUER, Mr. HONDA, and Mr. By Mr. RYAN of Wisconsin (for him- SCOTT of Virginia, Mr. SERRANO, Mr. COLE of Oklahoma): self, Mr. BOEHNER, Mr. BLUNT, Mr. SHERMAN, Ms. SLAUGHTER, Mr. H.R. 6005. A bill to amend the Internal Rev- CANTOR, Mr. PUTNAM, Mr. STARK, Mr. STUPAK, Ms. SUTTON, Mr. enue Code to provide for the treatment of In- HENSARLING, Mr. SENSENBRENNER, TIERNEY, Mr. TOWNS, Ms. WATSON, dian tribal governments as State govern- Mr. FLAKE, Mr. PENCE, Mrs. Mr. WAXMAN, Mr. WEXLER, Ms. WOOL- ments for the purposes of the Public Charity- BLACKBURN, Mr. CAMPBELL of Cali- SEY, Mr. YARMUTH, and Ms. ROYBAL- Private Foundation Classification; to the fornia, Mr. JORDAN, Mr. BROUN of ALLARD): Committee on Ways and Means. Georgia, and Mr. MCCOTTER): H.R. 6000. A bill to amend the Internal Rev- By Ms. BORDALLO (for herself, Mr. H.R. 5995. A bill to amend the Internal Rev- enue Code of 1986 to impose a windfall profit ABERCROMBIE, and Mr. HAYES): enue Code of 1986 to suspend the highway tax on oil and natural gas (and products H.R. 6006. A bill to amend title 10, United fuels taxes, to provide for a Joint Committee thereof) and to allow an income tax credit States Code, to authorize the Secretary of a on Earmark Reform, and to prohibit ear- for purchases of fuel-efficient passenger vehi- military department, and the Secretary of marking for the remainder of the 110th Con- cles, and to allow grants for mass transit; to Defense with respect to the Defense Agen- gress; to the Committee on Ways and Means, the Committee on Ways and Means, and in cies, to participate in conservation banking and in addition to the Committees on Rules, addition to the Committee on Transpor- programs and in-lieu-fee mitigation pro- and the Budget, for a period to be subse- tation and Infrastructure, for a period to be grams; to the Committee on Armed Services. quently determined by the Speaker, in each subsequently determined by the Speaker, in By Ms. BORDALLO: case for consideration of such provisions as each case for consideration of such provi- H.R. 6007. A bill to authorize the Secretary fall within the jurisdiction of the committee sions as fall within the jurisdiction of the of Transportation to establish a Port of concerned. committee concerned. Guam Improvement Enterprise Program, and for other purposes; to the Committee on By Mr. MCCOTTER: By Mr. BUYER (for himself, Mr. COLE H.R. 5996. A bill to amend the Internal Rev- of Oklahoma, Mr. GRAVES, Mr. PICK- Armed Services, and in addition to the Com- enue Code of 1986 to allow a deduction for tu- ERING, Mr. HAYES, Mr. SHIMKUS, Mr. mittee on Transportation and Infrastruc- toring expenses for elementary and sec- PENCE, Mr. BURTON of Indiana, Mr. ture, for a period to be subsequently deter- ondary school students; to the Committee on KLINE of Minnesota, Mrs. BLACKBURN, mined by the Speaker, in each case for con- Ways and Means. Mr. WAMP, Mr. YOUNG of Alaska, Mr. sideration of such provisions as fall within By Mr. BARROW: HOEKSTRA, Mr. SHUSTER, Mr. the jurisdiction of the committee concerned. H.R. 5997. A bill to amend title 49, United MCHENRY, Mr. BARRETT of South By Mr. BROUN of Georgia (for himself, States Code, to require a motor carrier, Carolina, Mr. SOUDER, and Mr. SHAD- Mr. AKIN, Mr. BARTLETT of Maryland, broker, or freight forwarder that collects a EGG): Mrs. MYRICK, and Mr. ISSA): fuel surcharge to pay an amount equal to the H.R. 6001. A bill to rebalance the United H.R. 6008. A bill to amend the Illegal Immi- surcharge to the person that bears the cost States energy portfolio, to increase and uti- gration Reform and Immigrant Responsi- of the fuel, and for other purposes; to the lize the Nation’s domestic energy resources bility Act of 1996 to make permanent the E- Verify program, and for other purposes; to Committee on Transportation and Infra- and supply, to strengthen energy security the Committee on the Judiciary, and in addi- structure. and independence, and for other purposes; to tion to the Committee on Education and By Mr. PALLONE (for himself, Ms. the Committee on Natural Resources, and in addition to the Committees on Energy and Labor, for a period to be subsequently deter- SHEA-PORTER, Mr. ALTMIRE, Ms. Commerce, Ways and Means, Armed Serv- mined by the Speaker, in each case for con- BALDWIN, Mr. BRALEY of Iowa, Mrs. ices, and Science and Technology, for a pe- sideration of such provisions as fall within CAPPS, Mr. COURTNEY, Ms. DEGETTE, riod to be subsequently determined by the the jurisdiction of the committee concerned. Ms. DELAURO, Mr. DINGELL, Mr. Speaker, in each case for consideration of By Mr. ENGLISH of Pennsylvania (for DOYLE, Mr. ELLISON, Mr. ENGEL, Ms. such provisions as fall within the jurisdic- himself and Mr. ALEXANDER): ESHOO, Mr. GENE GREEN of Texas, Ms. tion of the committee concerned. H.R. 6009. A bill to leverage market forces HARMAN, Mr. HODES, Ms. HOOLEY, Mr. By Mr. GARY G. MILLER of California to bring greater efficiency and capacity to INSLEE, Mr. LARSON of Connecticut, (for himself, Mr. DREIER, Mr. domestic refineries, to bring new sources of ARKEY URPHY Mr. M , Mr. M of Con- MCKEON, Mrs. NAPOLITANO, and Ms. domestic energy to market, and for other necticut, Mr. PATRICK MURPHY of SOLIS): purposes; to the Committee on Natural Re- Pennsylvania, Mr. RANGEL, Mr. RUSH, H.R. 6002. A bill to amend title 23, United sources, and in addition to the Committees Ms. SCHAKOWSKY, Ms. SOLIS, Mr. States Code, to prohibit the collection of on Energy and Commerce, the Judiciary, STARK, Mr. STUPAK, Mr. TOWNS, Mr. certain tolls on existing high occupancy ve- Ways and Means, and Foreign Affairs, for a WALZ of Minnesota, Mr. WAXMAN, and hicles; to the Committee on Transportation period to be subsequently determined by the Mr. WELCH of Vermont): and Infrastructure. Speaker, in each case for consideration of H.R. 5998. A bill to nullify any effective- By Mr. OBERSTAR (for himself, Mr. such provisions as fall within the jurisdic- ness of the August 17, 2007, State health offi- MICA, Ms. CORRINE BROWN of Florida, tion of the committee concerned. cial letter issued by the Centers for Medicare Mr. SHUSTER, Mr. NADLER, Mr. By Mr. GONZALEZ (for himself and & Medicaid Services; to the Committee on COSTELLO, Mr. LIPINSKI, Mr. SIRES, Mr. RODRIGUEZ): Energy and Commerce. Mr. DEFAZIO, Mr. CUMMINGS, Mrs. H.R. 6010. A bill to require the Secretary of By Ms. HIRONO (for herself, Mr. ABER- NAPOLITANO, Ms. NORTON, Mrs. Defense to establish a National Trauma In- CROMBIE, and Ms. ROS-LEHTINEN): TAUSCHER, Mr. ARCURI, Mr. SPACE, stitute Research Program; to the Committee H.R. 5999. A bill to authorize appropria- Mr. SALAZAR, Mr. BRALEY of Iowa, on Armed Services. tions for the National Tropical Botanical Mr. FILNER, Mr. RAHALL, Mr. BOS- By Ms. HERSETH SANDLIN (for her- Garden, and for other purposes; to the Com- WELL, Ms. EDDIE BERNICE JOHNSON of self and Mr. MORAN of Kansas): mittee on the Judiciary. Texas, Mr. TAYLOR, Mr. WALZ of Min- H.R. 6011. A bill to amend the Public By Mr. KUCINICH (for himself, Mr. nesota, Mr. CARNEY, Ms. HIRONO, Mr. Health Service Act to facilitate emergency ABERCROMBIE, Mr. BERMAN, Mr. HIGGINS, Mr. BISHOP of New York, medical services personnel training and cer- BRADY of Pennsylvania, Mrs. CAPPS, Mr. CARNAHAN, Mr. LARSEN of Wash- tification curriculums for military veterans; Mr. CLAY, Mr. CLEAVER, Mr. COHEN, ington, Mr. MICHAUD, Ms. MATSUI, to the Committee on Energy and Commerce. Mr. CONYERS, Mr. CUMMINGS, Mr. Mr. HALL of New York, Mr. COHEN, By Mr. ISRAEL: DAVIS of Illinois, Mr. DEFAZIO, Mr. Mr. MCNERNEY, Mr. ALTMIRE, Mr. H.R. 6012. A bill to require the Comptroller DELAHUNT, Mr. DOYLE, Mr. ELLISON, CAPUANO, Mr. HOLDEN, and Mr. General to conduct a study of the consolida- Mr. FARR, Mr. FATTAH, Mr. FILNER, KAGEN): tion of the refiners, importers, producers, Mr. FRANK of Massachusetts, Mr. H.R. 6003. A bill to reauthorize Amtrak, and wholesalers of gasoline with the sellers GRIJALVA, Mr. GUTIERREZ, Mr. HARE, and for other purposes; to the Committee on of such gasoline at retail; to the Committee Mr. HASTINGS of Florida, Mr. HIN- Transportation and Infrastructure. on Energy and Commerce. CHEY, Ms. HIRONO, Mr. HONDA, Mr. By Mr. OBERSTAR (for himself, Mr. By Mr. MELANCON (for himself, Mr. JACKSON of Illinois, Ms. EDDIE BER- MICA, Ms. CORRINE BROWN of Florida, MCCRERY, Mr. ALEXANDER, Mr. NICE JOHNSON of Texas, Mr. KAN- and Mr. SHUSTER): BOUSTANY, and Mr. JEFFERSON):

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00214 Fmt 4634 Sfmt 0634 E:\CR\FM\L08MY7.100 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3403

H.R. 6013. A bill to provide for disaster as- United States providing that the Constitu- H.R. 752: Mr. BLUMENAUER. sistance for power transmission and distribu- tion does not preclude a penalty of death, in- H.R. 768: Mr. GARRETT of New Jersey. tion facilities, and for other purposes; to the cluding when it is imposed for the rape of a H.R. 784: Mr. KUHL of New York. Committee on Transportation and Infra- child under 16 years of age; to the Committee H.R. 864: Mr. COHEN. structure. on the Judiciary. H.R. 1022: Mr. PATRICK MURPHY of Pennsyl- By Mrs. SCHMIDT: By Mr. ALEXANDER: vania. H.R. 6014. A bill to amend the Internal Rev- H. Con. Res. 346. Concurrent resolution ex- H.R. 1023: Ms. MCCOLLUM of Minnesota and enue Code of 1986 to allow a credit against pressing the sense of Congress that American Mr. JEFFERSON. tax for birthmothers whose children are oil companies should build additional refin- H.R. 1032: Ms. BORDALLO, Ms. HIRONO, Mr. adopted; to the Committee on Ways and ing capacity on existing refinery campuses; NADLER, and Mr. TOWNS. Means. to the Committee on Energy and Commerce. H.R. 1093: Mr. GINGREY. By Mr. SESSIONS (for himself, Mr. By Mr. BACA: H.R. 1142: Ms. HIRONO and Mr. NADLER. FEENEY, and Mrs. BLACKBURN): H. Con. Res. 347. Concurrent resolution ex- H.R. 1190: Mr. PAYNE. H.R. 6015. A bill to require hospitals and pressing the sense of Congress that the Sec- H.R. 1194: Mr. ENGLISH of Pennsylvania and ambulatory surgical centers to disclose retary of the Department of Health and Mr. CARNAHAN. charge-related information and to provide Human Services, through the Centers for H.R. 1222: Mr. SHULER. price protection for treatments not covered Disease Control and Prevention and the Food H.R. 1223: Mr. SHULER. by insurance as conditions for receiving pro- and Drug Administration, should take action H.R. 1343: Mr. HULSHOF. tection from charge-related legal actions; to to educate the public on the importance of H.R. 1353: Mr. BAIRD. the Committee on the Judiciary, and in addi- adequate iodine intake; to the Committee on H.R. 1363: Mr. ANDREWS. tion to the Committee on Energy and Com- Energy and Commerce. H.R. 1379: Mr. STARK. merce, for a period to be subsequently deter- By Mr. CROWLEY (for himself, Mr. H.R. 1386: Mr. RUSH. mined by the Speaker, in each case for con- FALEOMAVAEGA, Mr. SCHIFF, Mr. H.R. 1540: Mr. LOEBSACK. sideration of such provisions as fall within TOWNS, Mr. HOLT, Mr. DAVIS of Illi- H.R. 1552: Mr. INSLEE, Mr. KENNEDY, Mr. the jurisdiction of the committee concerned. nois, Mr. GRIJALVA, Mr. OLVER, Mr. DAVIS of Illinois, Mr. LOEBSACK, and Ms. By Mr. STUPAK: KING of New York, Mr. PITTS, Mr. NORTON. H.R. 6016. A bill to amend title 39, United MCGOVERN, Mr. SMITH of New Jersey, H.R. 1576: Mr. KNOLLENBERG. States Code, to require post offices to have Mr. MANZULLO, Mr. MCDERMOTT, Mrs. H.R. 1610: Ms. CASTOR, Mr. ARCURI, Mr. running water and sanitation facilities and MCCARTHY of New York, Mr. HIN- MCCARTHY of California, and Mr. OBERSTAR. LATTS prohibiting the closure of post offices based CHEY, Mr. SESTAK, Mr. HONDA, Ms. H.R. 1738: Mr. P . H.R. 1869: Mr. POE. on a lack of running water and sanitation fa- ROS-LEHTINEN, Mr. BERMAN, Mr. H.R. 1919: Mr. RYAN of Ohio and Mr. WATT. cilities; to the Committee on Oversight and BLUMENAUER, Ms. MCCOLLUM of Min- H.R. 2050: Mr. CARSON. Government Reform. nesota, and Mr. SOUDER): By Mr. STUPAK (for himself and Mrs. H. Res. 1181. A resolution expressing condo- H.R. 2073: Mr. FATTAH. MILLER of Michigan): lences and sympathy to the people of Burma H.R. 2125: Ms. MOORE of Wisconsin. H.R. 2164: Ms. EDDIE BERNICE JOHNSON of H.R. 6017. A bill to ameliorate the effects for the grave loss of life and vast destruction Texas. of harmful algal blooms in the Great Lakes caused by Cyclone Nargis; to the Committee H.R. 2165: Mr. ROTHMAN. by reducing phosphorus inputs, and for other on Foreign Affairs. H.R. 2188: Mr. MEEKs of New York, Ms. purposes; to the Committee on Transpor- By Mr. FILNER: NORTON, Ms. CLARKE, and Mr. GORDON. tation and Infrastructure, and in addition to H. Res. 1182. A resolution expressing the H.R. 2221: Mr. ISRAEL and Mr. BISHOP of the Committees on Energy and Commerce, sense of the House of Representatives that New York. and Natural Resources, for a period to be American flags flown on Federal Govern- H.R. 2231: Mr. BONNER. subsequently determined by the Speaker, in ment buildings and on Federal property be H.R. 2244: Mr. VAN HOLLEN. each case for consideration of such provi- made in the United States; to the Committee H.R. 2268: Mr. KUCINICH, Mr. AL GREEN of sions as fall within the jurisdiction of the on the Judiciary. Texas, Mrs. LOWEY, Mrs. DAVIS of California, committee concerned. By Mr. JONES of North Carolina (for Ms. ROYBAL-ALLARD Mr. FILNER, Mr. YOUNG By Ms. TSONGAS (for herself, Mr. himself and Mr. ROHRABACHER): of Alaska, Mr. LEWIS of California, Mr. COO- HAYES, Mr. BOOZMAN, Ms. HERSETH H. Res. 1183. A resolution amending the PER, Mr. CONAWAY, Mr. FALSOMAVAEGA, Mr. SANDLIN, Mr. MILLER of Florida, Ms. Rules of the House of Representatives to ob- BISHOP of New York, Mr. COLE of Oklahoma, BORDALLO, Mr. BRADY of Pennsyl- serve a moment of silence in the House on Mr. HOLT, Ms. EDDIE BERNICE JOHNSON of vania, and Mr. MCGOVERN): the first legislative day of each month for H.R. 6018. A bill to amend title 10, United Texas, Mr. KENNEDY, Mr. LAMBORN, Mr. POE, those killed or wounded in United States en- States Code, to increase loan repayment lim- Mr. SHULER, Mr. SPACE, Mr. ROHRABACHER, gagements in Iraq or Afghanistan; to the its for health professionals serving in the Mr. MCINTYRE, and Mr. HINOJOSA. Committee on Rules. Armed Forces; to the Committee on Armed H.R. 2303: Mr. HALL of Texas, Mr. REY- By Mr. KING of New York: Services. NOLDS, and Mrs. MILLER of Michigan. H. Res. 1184. A resolution supporting the By Mr. UDALL of New Mexico: H.R. 2332: Mr. TIAHRT, Mr. KLEIN of Flor- goals and ideals of the Knights of Pythias; to H.R. 6019. A bill to amend the Energy Em- ida, Mrs. MUSGRAVE, Mrs. MILLER of Michi- the Committee on Oversight and Govern- ployees Occupational Illness Compensation gan, Mr. HELLER, Mr. SAM JOHNSON of Texas, ment Reform. Program Act of 2000 to grant Special Expo- and Mr. RAMSTAD. By Mr. MCDERMOTT (for himself and sure Cohort designation to a specific group H.R. 2370: Mr. HINCHEY and Mr. WALBERG. Mr. PORTER): of individuals from a Department of Energy H.R. 2371: Mr. SIMPSON, Mr. GENE GREEN of H. Res. 1185. A resolution expressing the facility in Los Alamos, New Mexico; to the Texas, and Mr. INSLEE. sense of the House of Representatives that Committee on the Judiciary, and in addition H.R. 2380: Mr. SALI. Congress should recognize the important to the Committee on Education and Labor, H.R. 2481: Mr. PLATTS. contributions of Americans who serve as fos- for a period to be subsequently determined H. R. 2485: Ms. SPEIER. ter parents and, in doing so, unselfishly open by the Speaker, in each case for consider- H. R. 2507: Mr. GERLACH. their homes and family lives to children in ation of such provisions as fall within the ju- H. R. 2572: Mr. CUMMINGS. need; to the Committee on Ways and Means. risdiction of the committee concerned. H.R. 2659: Mr. KAGEN. By Mr. SENSENBRENNER: By Ms. ZOE LOFGREN of California H.R. 2784: Mr. DREIER. H. Res. 1186. A resolution prohibiting the (for herself, Mr. THORNBERRY, Mr. H.R. 2827: Mr. POE. use of funds in a Members’ Representational CONYERS, Mr. PENCE, Ms. LORETTA H.R. 2851: Mr. MURTHA, Mr. GINGREY, and Allowance for the long-term lease of a vehi- SANCHEZ of California, Mr. TURNER, Mr. CONYERS. cle; to the Committee on House Administra- and Mr. REYES): H.R. 2897: Mr. BLUMENAUER. H.R. 6020. A bill to amend the Immigration tion. H.R. 2914: Mr. WALBERG, Ms. BERKLEY, and and Nationality Act to protect the well- f Mr. BRALEY of Iowa. being of soldiers and their families, and for H.R. 2933: Mr. ARCURI. other purposes; to the Committee on the Ju- ADDITIONAL SPONSORS H.R. 2991: Mr. CONYERS, Mr. WILSON of diciary. Under clause 7 of rule XII, sponsors Ohio, Mr. SHULER, Mr. RAMSTAD, and Mr. PENCE. By Mr. BROUN of Georgia: were added to public bills and resolu- H.J. Res. 82. A joint resolution proposing H.R. 3021: Ms. LORETTA SANCHEZ of Cali- an amendment to the Constitution of the tions as follows: fornia, Ms. LEE, Mr. MCNERNEY, Mr. United States allowing castration after con- H.R. 154: Mr. SMITH of New Jersey. CUMMINGS, Mr. WALZ of Minnesota, Mr. viction for the rape of a child under 16 years H.R. 241: Mr. INGLIS of South Carolina. SCOTT of Georgia, Ms. TSONGAS, Mr. of age; to the Committee on the Judiciary. H.R. 552: Mr. BLUMENAUER, Mr. KILDEE, and FORTUNˆ O, Mr. WYNN, Ms. WASSERMAN By Mr. BROUN of Georgia: Mr. BACHUS. SCHULTZ, Mr. LANGEVIN, Mr. BOYD of Florida, H.J. Res. 83. A joint resolution proposing H.R. 594: Mr. PLATTS. and Mr. WILSON of Ohio. an amendment to the Constitution of the H.R. 741: Mrs. CAPPS. H.R. 3022: Ms. LEE and Mr. TOWNS.

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00215 Fmt 4634 Sfmt 0634 E:\CR\FM\L08MY7.100 H08MYPT1 smartinez on PROD1PC64 with HOUSE H3404 CONGRESSIONAL RECORD — HOUSE May 8, 2008

H.R. 3089: Mr. GINGREY and Mr. WOLF. H.R. 5549: Mr. TOWNS. gia, Ms. NORTON, Mrs. NAPOLITANO, Mr. H.R. 3151: Mr. YOUNG of Alaska and Mr. H.R. 5568: Mr. BILBRAY. GRIJALVA, Mr. KIND, Mr. KILDEE, Mr. MAR- BILBRAY. H.R. 5603: Mr. SIMPSON. KEY, Mr. BISHOP of Utah, and Mr. RAHALL. H.R. 3202: Mr. FALEOMAVAEGA. H. R. 5604: Mr. SNYDER. H. Con. Res. 40: Mr. PETERSON of Pennsyl- H.R. 3232: Mr. PAYNE, Mr. Foster, and Mr. H.R. 5629: Ms. LORETTA SANCHEZ of Cali- vania and Mr. SALI. KUHL of New York. fornia. H. Con. Res. 46: Mr. FILNER. H.R. 3326: Mr. BLUMENAUER and Mr. H.R. 5632: Mr. TERRY and Mr. MARKEY. H. Con. Res. 244: Mr. MARIO DIAZ-BALART of FATTAH. H.R. 5636: Mr. GRIJALVA. Florida, Mr. REYNOLDS, and Mr. OLVER. H.R. 3334: Mr. ALEXANDER, Mr. DICKS, Mr. H.R. 5646: Mr. HELLER and Mr. WHITFIELD H. Con. Res. 296: Mr. SMITH of New Jersey, SCOTT of Virginia, and Mr. WALBERG. of Kentucky. Mr. FORBES, Mr. HAYES, Mr. BILIRAKIS, Mr. H.R. 3374: Mr. BOUCHER. H.R. 5647: Mr. ALEXANDER. MORAN of Kansas, Mr. AKIN, and Mr. PEARCE. H. R. 3397: Ms. WATERS, Ms. WATSON, Ms. H.R. 5656: Mrs. MCMORRIS RODGERS. H. Con. Res. 299: Mr. TANNER and Mr. POR- SLAUGHTER, Ms. EDDIE BERNICE JOHNSON of H.R. 5669: Mr. CHANDLER, Mr. NADLER, and TER. Texas, Mr. WATT, Mr. BUTTERFIELD, Mr. Mr. RUSH. H. Con. Res. 305: Ms. MCCOLLUM of Min- JACKSON of Illinois, Mr. CLAY, Mr. MEEKs of H.R. 5673: Mrs. BONO MACK. nesota, Mr. FRANK of Massachusetts, and Mr. New York, Mr. DAVIS of Illinois, Mr. THOMP- H.R. 5684: Mr. BROWN of South Carolina, PASTOR. SON of Mississippi, Mr. CARSON, Mr. BRALEY and Ms. EDDIE BERNICE JOHNSON of Texas. H. CON. RES. 331: MS. EDDIE BERNICE JOHNSON of Iowa, Ms. LINDA T. SA´ NCHEZ of California, H.R. 5695: Mr. YOUNG of Alaska. OF TEXAS AND MS. GINNY BROWN-WAITE OF Mr. CRAMER, Mr. HALL of New York, Mr. AN- H.R. 5699: Mr. CULBERSON. FLORIDA. DREWS, Mr. BAIRD, Mr. PRICE of North Caro- H.R. 5702: Mr. LEWIS of Georgia and Mr. lina, and Ms. WOOLSEY. KIND. H. Con. Res. 336: Mr. LIPINSKI, Mr. DON- H.R. 3404: Mr. SARBANES. H.R. 5714: Mr. HENSARLING, Mr. FARR, Mr. NELLY, Ms. MATSUI, Mr. LOBIONDO, Mr. H.R. 3430: Mr. SHAYS. CARNAHAN, Mrs. MCCARTHY of New York, Ms. ENGEL, Mr. PETERSON of Minnesota, Mr. H.R. 3533: Mr. FATTAH. MCCOLLUM of Minnesota, Mr. MITCHELL, Mr. ROSS, Ms. SCHWARTZ, Mr. MICHAUD, Mr. PAT- H.R. 3544: Ms. ESHOO. WESTMORELAND, Mr. SCOTT of Georgia, Mr. RICK MURPHY of Pennsylvania, Mr. BRALEY of H.R. 3622: Mr. REHBERG. DOGGETT, Mr. DELAHUNT, and Mr. BISHOP of Iowa, and Mr. UDALL of Colorado. H.R. 3642: Mr. WU Utah. H. Con. Res. 337: Mrs. LOWEY. H.R. 3652: Ms. SCHAKOWSKY. H.R. 5716: Ms. CORRINE BROWN of Florida H. Con. Res. 338: Mrs. JONES of Ohio. H.R. 3750: Mr. FATTAH. and Mr. ABERCROMBIE. H. Res. 111: Ms. TSONGAS. H.R. 3765: Mr. ABERCROMBIE. H.R. 5721: Mr. SNYDER. H. Res. 282: Mr. MARSHALL. H.R. 3817: Mr. SPACE. H.R. 5731: Mr. BILBRAY and Mr. CALVERT. H. Res. 353: Mr. ALTMIRE. H.R. 3818: Mr. CAMP of Michigan. H.R. 5737: Mr. KUHL of New York and Ms. H. Res. 373: Mr. HONDA. H.R. 3822: Ms. EDDIE BERNICE JOHNSON of FALLIN. H. Res. 415: Mrs. TAUSCHER and Mr. ORTIZ. Texas. H.R. 5740: Mr. WHITFIELD of Kentucky, Mr. H. Res. 653: Mr. CONYERS. C ERNEY H.R. 4008: Mr. M N . BROWN of South Carolina, Mr. CUMMINGS, and H. Res. 795: Mr. WOLF. H.R. 4026: Mr. THOMPSON of Mississippi and Mr. RAHALL. H. Res. 896: Mr. ALLEN, Mr. ANDREWS, Mr. Mr. GRIJALVA. H.R. 5774: Mr. BERMAN, Ms. ZOE LOFGREN of ARCURI, Mr. BAIRD, Ms. BEAN, Mr. BERMAN, H.R. 4061: Mr. CARNAHAN. California, and Mr. HONDA. Mr. BERRY, Mr. BISHOP of Georgia, Mr. H.R. 4102: Mr. CONYERS. H.R. 5788: Mrs. TAUSCHER and Mr. FARR. BOREN, Mr. BOSWELL, Ms. CORRINE BROWN of H.R. 4109: Mr. MCDERMOTT. H.R. 5793: Mr. ISSA, Mr. GERLACH, Mr. GENE Florida, Ms. CLARKE, Mr. CLEAVER, Mr. CLY- H.R. 4138: Mr. FILNER. GREEN of Texas, Mr. PLATTS, and Mr. SES- BURN, Mr. CONYERS, Mr. COOPER, Mr. COSTA, H.R. 4173: Mr. ELLISON, Mr. RUPPERSBER- SIONS. Mr. CRAMER, Mr. CROWLEY, Mr. CUELLAR, Mr. GER, and Mr. BLUMENAUER. H.R. 5802: Mr. FATTAH, Mr. MEEK of Flor- DAVIS of Alabama, Ms. DEGETTE, Ms. H.R. 4188: Mr. GRIJALVA. ida, and Mr. BRADY of Pennsylvania. DELAURO, Mr. DICKS, Mr. DONNELLY, Mr. H.R. 4204: Mr. MITCHELL, Mr. CONYERS, and H.R. 5825: Mr. GARRETT of New Jersey. DOYLE, Mr. EMANUEL, Mr. FRANK of Massa- Mr. BLUMENAUER. AYLOR chusetts, Mr. LARSON of Connecticut, Mr. LVER H.R. 5831: Mr. T . H.R. 4206: Mr. O . MEEKS of New York, Mr. RODRIGUEZ, Mr. H.R. 4236: Mr. MCNERNEY, and Mr. UDALL of H.R. 5833: Mr. FARR. ROTHMAN, Mr. SALAZAR, Mr. THOMPSON of Colorado. H.R. 5841: Mr. GONZALEZ and Mr. Mississippi, Mr. THOMPSON of California, Mr. H.R. 4321: Mr. BOSWELL, Mr. MARKEY, Mr. CARNAHAN. UDALL of Colorado, Mr. UDALL of New Mex- SHAYS, and Mr. FEENEY. H.R. 5846: Mr. CARTER. ico, Mr. BOYD of Florida, Mrs. BOYDA of Kan- H.R. 4344: Mr. SHAYS. H.R. 5854: Ms. GINNY BROWN-WAITE of Flor- sas, Mr. CUMMINGS, Mr. ELLSWORTH, Mr. FIL- H.R. 4449: Ms. ROS-LEHTINEN. ida. NER, Mr. HALL of New York, Ms. HERSETH H.R. 4453: Mr. DAVIS of Illinois. H.R. 5857: Mr. FRELINGHUYSEN. SANDLIN, Mr. KAGEN, Mr. MURTHA, Mr. OBEY, H.R. 4900: Mr. MARIO DIAZ-BALART of Flor- H.R. 5878: Mr. GRIJALVA. Mr. PERLMUTTER, Mr. SHERMAN, Mr. SHULER, ida, Mr. BARTON of Texas, Mr. GORDON, Mr. H.R. 5881: Mr. STARK. Mr. SNYDER, Mr. TIERNEY, Ms. VELA´ ZQUEZ, RYAN of Wisconsin, and Mr. CHANDLER. H.R. 5886: Mr. KING of New York. Mr. WALZ of Minnesota, and Mr. SHIMKUS. H.R. 4926: Mr. MARSHALL, Ms. SCHAKOWSKY, H.R. 5898: Mr. ALTMIRE, Mrs. BONO MACK, H. Res. 937: Mr. INGLIS of South Carolina, Mr. PERLMUTTER, Ms. SHEA-PORTER, Ms. LEE, Mr. SHAYS, and Mr. WHITFIELD of Kentucky. Mr. SMITH of New Jersey, Mr. DELAHUNT, Mr. Mr. REGULA, and Mr. ELLISON. H.R. 5907: Mr. DENT. TANCREDO, Mr. WILSON of South Carolina, H.R. 5129: Mr. LOEBSACK. H.R. 5944: Ms. GRANGER, Mr. LEWIS of Cali- Mr. BARRETT of South Carolina, and Mr. H.R. 5136: Mrs. MALONEY of New York. fornia, and Mr. SOUDER. LOBIONDO. H.R. 5174: Mr. MARKEY. H.R. 5958: Mr. AL GREEN of Texas. H. Res. 970: Mr. DUNCAN, Mr. MCCOTTER, H.R. 5180: Mrs. CAPPS. H.R. 5960: Mr. WOLF. H.R. 5223: Ms. HIRONO and Mr. H.R. 5971: Mr. GINGREY, Mr. SOUDER, Mr. and Mr. HINOJOSA. BLUMENAUER. PLATTS, Mr. LATTA, Mr. HERGER, and Mr. H. Res. 977: Mr. RAHALL, Mr. CARNEY, Mrs. H.R. 5244: Ms. GIFFORDS and Mr. WATT. BILBRAY. DAVIS of California, Mr. DONNELLY, Ms. KIL- H.R. 5315: Mr. MICHAUD. H.R. 5974: Mr. BONNER, Mr. FRELINGHUYSEN, PATRICK, and Mr. MCNERNEY. H.R. 5352: Mr. EMANUEL. and Mr. DANIEL E. LUNGREN of California. H. Res. 1012: Mr. LOEBSACK. H.R. 5442: Mr. BLUMENAUER. H.R. 5976: Mr. WALSH of New York, Mr. H. Res. 1022: Mrs. CUBIN, Mrs. SCHMIDT, H.R. 5446: Mr. YARMUTH. HINCHEY, and Ms. SUTTON. Mrs. DRAKE, Mr. LAHOOD, Ms. SPEIER, Mrs. H.R. 5448: Ms. HIRONO and Mr. STARK. H.R. 5977: Mr. HOLDEN. BLACKBURN, Mrs. MILLER of Michigan, Mrs. H.R. 5465: Mr. WU and Mr. WALZ of Min- H.R. 5983: Ms. JACKSON-LEE of Texas. MUSGRAVE, Mr. SENSENBRENNER, Mr. DREIER, nesota. H.R. 5984: Mr. SOUDER, Mr. FORBES, and Mr. Ms. FOXX, Ms. BEAN, and Mr. MEEKS of New H.R. 5466: Mrs. JONES of Ohio. SHADEGG. York. H.R. 5496: Mr. LINCOLN DIAZ-BALART of H.J. Res. 1: Mr. BROUN of Georgia. H. Res. 1037: Mr. WOLF. Florida. H.J. Res. 7: Mr. BROUN of Georgia. H. Res. 1089: Mr. LAMPSON. H.R. 5506: Mr. FERGUSON, Mr. GARRETT of H.J. Res. 39: Mr. FOSTER. H. Res. 1105: Mr. GRIJALVA. New Jersey, Mr. SAXTON, Mr. ANDREWS, Mr. H. Con. Res. 2: Mr. MCGOVERN, Mr. CROW- H. Res. 1110: Mrs. WILSON of New Mexico. SMITH of New Jersey, Mr. PALLONE, Mr. LEY, Mr. NADLER, Mr. MEEK of Florida, Ms. H. Res. 1120: Mr. MATHESON. ROTHMAN, Mr. PAYNE, Mr. FRELINGHUYSEN, HARMAN, Mr. INSLEE, Mrs. MCCARTHY of New H. Res. 1122: Mr. BARRETT of South Caro- and Mr. HOLT. York, Mr. CLAY, Ms. CLARKE, Mr. TOWNS, Mr. lina and Mr. SIMPSON. H.R. 5515: Mr. ALEXANDER. THOMPSON of Mississippi, Mr. JOHNSON of H. Res. 1124: Mr. FERGUSON. H.R. 5534: Mr. PLATTS and Ms. BALDWIN. Georgia, Mr. CLYBURN, Ms. EDDIE BERNICE H. Res. 1132: Mr. DONNELLY. H.R. 5535: Mr. BOSWELL, Mr. MCDERMOTT, JOHNSON of Texas, Mr. JACKSON of Illinois, H. Res. 1134: Ms. SLAUGHTER, Mr. GERLACH, Mr. LEWIS of Georgia, Mr. CAPUANO, Mr. Mr. WATT, Mr. SCOTT of Virginia, Mr. HOLT, Ms. HERSETH SANDLIN, Mr. MCNERNEY, Mr. MORAN of Virginia, and Mr. KENNEDY. Ms. KILPATRICK, Mr. CARSON, Ms. MOORE of BISHOP of New York, Mr. LUCAS, Mr. DOO- H.R. 5547: Mr. COURTNEY and Mr. WELCH of Wisconsin, Ms. WATSON, Mr. ELLISON, Mr. LITTLE, Mr. MCKEON, Mrs. MUSGRAVE, Ms. Vermont. CUMMINGS, Mr. CLEAVER, Mr. BISHOP of Geor- GRANGER, Mr. FRELINGHUYSEN, Mr. PETRI,

VerDate Aug 31 2005 04:36 May 09, 2008 Jkt 069060 PO 00000 Frm 00216 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.077 H08MYPT1 smartinez on PROD1PC64 with HOUSE May 8, 2008 CONGRESSIONAL RECORD — HOUSE H3405 Mr. FEENEY, Mr. WALBERG, Mrs. MCMORRIS CONGRESSIONAL EARMARKS, LIM- mitted under section 823 of the Veterans RODGERS, Mr. FORBES, Mr. LAMBORN, Mr. ITED TAX BENEFITS, OR LIM- Benefits, Health Care, and Information Tech- COBLE, Mr. GARY G. MILLER of California, ITED TARIFF BENEFITS nology Act of 2006 (Public Law 109–461; 120 Mr. DENT, and Mr. ENGLISH of Pennsylvania. Stat. 3449). This request is intended to pro- Under clause 9 of rule XXI, lists or H. Res. 1135: Mr. WESTMORELAND and Mr. vide Department of Veterans Affairs patients statements on congressional earmarks, GINGREY. in and around Okaloosa County, Florida, the limited tax benefits, or limited tariff ability to more accessibly receive inpatient H. Res. 1142: Mr. CRAMER. benefits were submitted as follows: care through an agreement between the De- partment of Veterans Affairs and the Depart- H. Res. 1143: Mr. SHUSTER, Mr. WALSH of OFFERED BY MR. MILLER OF FLORIDA New York, and Mr. ARCURI. ment of Defense. Bill Number: H.R. 5856. H. Res. 1144: Mr. TIBERI, Mr. LEWIS of Cali- Provision: Section 5. f fornia, and Mr. SIMPSON. Description of Request: Authorizes the DISCHARGE PETITIONS— H. Res. 1160: Mr. GERLACH. Secretary of Veterans Affairs to carry out a major medical facility project to construct a ADDITIONS OR DELETIONS H. Res. 1165: Mr. SENSENBRENNER, Mr. new medical facility of the Department of The following Member added his ALTMIRE, Mr. MARKEY, and Mr. JONES of Veterans Affairs in Okaloosa County, Flor- North Carolina. ida, in an amount not to exceed $54,475,000. name to the following discharge peti- H. Res. 1179: Mr. TERRY, Mr. WELDON of The facility authorized is to be constructed tion: Florida, Mr. SHULER, and Mr. LEWIS of Ken- pursuant to option 2 of the report to Con- Petition 5, by Mrs. DRAKE on House Bill tucky. gress dated June 26, 2007, required to be sub- 4088: Mark E. Souder.

VerDate Aug 31 2005 03:31 May 09, 2008 Jkt 069060 PO 00000 Frm 00217 Fmt 4634 Sfmt 0634 E:\CR\FM\A08MY7.085 H08MYPT1 smartinez on PROD1PC64 with HOUSE E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 110 CONGRESS, SECOND SESSION

Vol. 154 WASHINGTON, THURSDAY, MAY 8, 2008 No. 76 Senate The Senate met at 9:30 a.m. and was APPOINTMENT OF ACTING The ACTING PRESIDENT pro tem- called to order by the Honorable MARK PRESIDENT PRO TEMPORE pore. Without objection, it is so or- L. PRYOR, a Senator from the State of The PRESIDING OFFICER. The dered. Arkansas. clerk will please read a communication Mr. DURBIN. Following morning to the Senate from the President pro business, the Senate will resume con- PRAYER tempore (Mr. BYRD). sideration of S. 2284, a bill to restore The legislative clerk read the fol- the financial solvency of the National The PRESIDING OFFICER. Today’s lowing letter: Flood Insurance Fund. opening prayer will be offered by guest U.S. SENATE, As a reminder, all amendments to Chaplain Rev. Brian Severin from Vic- PRESIDENT PRO TEMPORE, the flood insurance bill must be offered tory Christian Fellowship in Greeley, Washington, DC, May 8, 2008. today. Senators should expect rollcall CO. To the Senate: votes to occur throughout the day as The guest Chaplain offered the fol- Under the provisions of rule I, paragraph 3, we work to complete action on the bill. lowing prayer: of the Standing Rules of the Senate, I hereby I ask everyone to focus on the amend- appoint the Honorable MARK L. PRYOR, a ments and showing up in a timely fash- May we all join our hearts in prayer. Senator from the State of Arkansas, to per- form the duties of the Chair. ion. We want to complete this as quick- Almighty Father, God of all creation, ly as we can. in the Name of our Lord Jesus, the au- ROBERT C. BYRD, thor of salvation, I pray for each one of President pro tempore. f our Senators standing in this legisla- Mr. PRYOR thereupon assumed the MEASURE PLACED ON THE tive gate, 100 of our Nation’s best, in chair as Acting President pro tempore. CALENDAR—S. 2991 whose grasp is the throat of our fate. f Mr. DURBIN. Mr. President, I under- Give each of them Your wisdom amidst RESERVATION OF LEADER TIME stand that S. 2991 is at the desk and the confusion of our day. Help them due for a second reading. embrace Superman’s motto, bringing The ACTING PRESIDENT pro tem- pore. Under the previous order, the The ACTING PRESIDENT pro tem- Truth and Justice, the American way. pore. The Senator is correct. Protect their marriages and families, leadership time is reserved. f The clerk will read the bill by title who are invaluable to each Senator’s for the second time. heart, and enlighten their children’s RECOGNITION OF THE ACTING The legislative clerk read as follows: generation with a genius redefining the MAJORITY LEADER A bill (S. 2991) to provide energy relief, term ‘‘smart.’’ May a tidal wave of The ACTING PRESIDENT pro tem- hold oil companies and other entities ac- unity erase the line drawn in the sand. pore. The acting majority leader is rec- countable for their actions with regard to May our Senators lift their voices as ognized. high energy prices, and for other purposes. one, again declaring ‘‘United We f Mr. DURBIN. I object to any further Stand.’’ proceedings with respect to the bill. SCHEDULE Help us, the people, support our Sen- The ACTING PRESIDENT pro tem- ators, help them ignore our selfish Mr. DURBIN. Mr. President, today pore. Objection having been heard, the whine. May each of them fulfill their there will be a period of morning busi- bill will be placed on the calendar. ness for up to 1 hour, with the time calling, guiding us through the storms f of perilous times. equally divided and controlled between RECOGNITION OF THE MINORITY Amen. the two leaders or their designees. The Republicans will control the first half LEADER f and the majority will control the final The ACTING PRESIDENT pro tem- half. pore. The Minority leader is recog- ORDER OF PROCEDURE PLEDGE OF ALLEGIANCE nized. I ask unanimous consent to amend f The Honorable MARK L. PRYOR led this consent to note that Senator AL- the Pledge of Allegiance, as follows: LARD wishes to say a word about the DEMOCRATIC ENERGY PACKAGE I pledge allegiance to the Flag of the gentleman who just served as our Mr. MCCONNELL. Mr. President, United States of America, and to the Repub- Chaplain. I ask that his time not be de- reading the morning papers, we learned lic for which it stands, one nation under God, ducted from the minority time in a couple of key points about the energy indivisible, with liberty and justice for all. morning business. proposal introduced yesterday by our

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

S3935

.

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3936 CONGRESSIONAL RECORD — SENATE May 8, 2008 friends on the other side. The most im- and asked me to come to the floor if a duced. We cannot drill our way out of portant point is that two central provi- response was necessary, and a response this situation. sions of the bill are opposed by two of is necessary. We have to stop price gouging on their own chairmen. In this morning’s There are two fundamentally dif- consumers. We have to hold oil compa- Albuquerque Journal, we learned that ferent approaches when it comes to nies accountable, and I think the Re- the Democratic chairman of the Senate America’s energy futures between the publican approach does neither. I am Energy Committee does not like the Democratic side and the Republican looking forward to this debate. I as- so-called windfall profit tax. He called side. The Democratic side believes that sume that by early next week we will it ‘‘arbitrary.’’ first we have to do everything we can have a vote and the American people Now, we know this is a bad idea that to protect consumers of America from will see where we stand. does not work. The last time a windfall price gouging. We know what is hap- f profits tax was tried in the 1980s, it re- pening. We cannot go to Illinois, Ar- duced domestic production and actu- kansas, Kentucky, or Colorado and not WELCOMING THE GUEST ally increased our reliance on foreign run into people saying we cannot un- CHAPLAIN oil, just the opposite of a rational pol- derstand why gasoline prices are so Mr. ALLARD. Mr. President, it is icy to reduce gas prices to make Amer- high. We know the price of a barrel of with great pleasure and pride that I ica more energy independent. oil has gone up to record high levels be- rise to recognize and welcome the In the Wall Street Journal, we cause of price manipulation by the guest Chaplain for the Senate today, learned that the senior Senator from Saudis, OPEC, and other countries, and Pastor Brian Severin, who is the pastor New York, the chairman of the Joint the Republican approach to this totally of Victory Christian Fellowship Economic Committee, is raising the ignores it. We know the oil companies alarm about another central tenet of Church, Greeley, CO. across the United States last week re- Pastor Severin has served in the full- the Democratic energy proposal, the ported record profits in the first quar- energy futures trading provision. The time ministry for 23 years. He was born ter of this year. Since President Bush and raised in northeastern Colorado be- Journal reports the chairman is saying came to office, the profits of the oil the energy futures trading provisions, fore attending and graduating from the companies have more than quadrupled University of Northern Colorado, which as written, would send the bulk of the and the price of gasoline has more than trading that is now done in America, is also located in Greeley. doubled. Prior to coming to Greeley 6 years and thus American jobs, to markets Does the Republican approach even overseas. ago to minister to Victory Christian, address this? The answer is no. We he was the founding pastor for Church I agree with both of these chairmen. have, in the Democratic approach, a Two years have passed since Congres- Alive in Sterling, CO, and served as windfall profits tax, which says to pastor to New Life Fellowship in sional Democrats said they had a these oil companies: There is a limit ‘‘commonsense plan’’ to address high Yuma, CO. beyond which you cannot go in gouging gas prices. This week Senate Demo- He is joined today by his wife of 27 consumers and overcharging them for crats finally unveiled that plan, and years, Joslyn Severin, along with 14 your products. As airlines are faced their own chairmen do not seem to like members of his congregation. My col- with bankruptcy, as truckers cannot parts of it. It is predictably high on leagues and I very much appreciate afford to fill their rigs on the high- taxes, more bureaucracy, and contin- Pastor Severin taking time away from ways, as the cost of energy is passed on ued dependence on OPEC. his duties in Colorado to help guide us Their proposal would do nothing to to us as higher food prices and the like, through our deliberations today in the lower the price of gas. It will only it is absolutely unconscionable that Senate. serve to further reduce domestic sup- the oil companies continue to show May Pastor Severin’s words of inspi- plies and increase our dependency on record profits quarter after quarter, ration this morning make us wiser and foreign oil at a time when we are try- year after year, at the expense of our kinder to each other as we go about ing to make America more, not less, economy. conducting the people’s business today. energy independent. The Democratic approach deals with I yield the floor. Republicans believe we should in- that. We go to the fundamentals. The f crease our supply of American energy windfall profits tax says to the oil com- to bring gas prices down and to create panies: There is a limit to what you MORNING BUSINESS can take. Beyond that, the Govern- American jobs. Apparently our friends The ACTING PRESIDENT pro tem- across the aisle believe we should con- ment is going to tax you and make it clear to you that raising prices is not pore. Under the previous order, the tinue to ask OPEC to increase its sup- Senate will proceed to a period of ply, while opposing additional produc- the answer. Second, we are going to stop putting morning business for up to 1 hour, with tion of American energy. Senators permitted to speak for up to We will have an opportunity to vote more oil at high prices into the Stra- tegic Petroleum Reserve. If there ever 10 minutes each, with the time equally on Monday on the proposal that the divided and controlled between the two majority of Members on my side think was a time we should not be taking oil off the market, this is that time. We leaders or their designees, with the Re- would make an actual difference in the publicans controlling the first half and coming years. It is a fundamental dif- also provide in our bill for going after this OPEC coalition, the price collu- the majority controlling the final half. ference of opinion. We can either The Senator from Oklahoma. proactively increase our domestic pro- sion that is going on at the expense of the American economy. Mr. INHOFE. Mr. President, let me duction or we can place greater depend- make one observation, that the guest ence on foreign suppliers and further We deal with price gouging to make sure the companies that engage in it pastor got his training at Rhema Bible delay energy independence. Given the College at Broken Arrow, OK. I was choice, I would rather produce more know they are going to pay a heavy price for that kind of conduct. And we mayor of Tulsa, he reminded me, back American energy and create more at that time. So he had good training. American jobs. go after speculation, if it is excessive, Mr. President, I yield the floor. to try to make sure we fuel any fires of f The ACTING PRESIDENT pro tem- speculation that might be adding to the cost of energy. DOMESTIC ENERGY PRODUCTION pore. The assistant majority leader. ACT OF 2008 Mr. DURBIN. Mr. President, I ask What do the Republicans offer in re- unanimous consent to respond in lead- turn? Drilling, drilling, drilling. They Mr. INHOFE. Mr. President, let me er time in the absence of Senator REID. do not understand one fundamental respond, firstly, if I can, to the assist- The ACTING PRESIDENT pro tem- fact: The United States has within its ant majority leader. First, it is easy to pore. Without objection, it is so or- grasp, in our territory and territory we point the finger at oil companies. That dered. control, only 3 percent of the world’s is the easiest ‘‘out,’’ because everyone Mr. DURBIN. Mr. President, Senator supply of oil—3 percent. Each year, we has this perception that all oil compa- REID could not be here this morning consume 25 percent or more of oil pro- nies are doing great.

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3937 Here is the problem you have. If you talked about. That would be to in- gas-to-liquid fuel. So we know this is were to take all profits from oil compa- crease our drilling capacity. We could something that works. We know it can nies—let’s forget about windfall prof- do it on ANWR. People talk about the help our situation. its; take it all, do not leave any at all fact that this is pristine wilderness. What I don’t have time to get into for anything else, other than what they First of all, I challenge anyone to look because I only had 5 minutes, but I are putting into exploration—it would at this area. It is not a pristine wilder- wish to do it later, is the ethanol man- amount to 28 cents a gallon. ness. The main thing is, if you take date that came with the December of If you slashed their profits in half, as that little area that we have, with 2007 bill. Right now we know that eth- they are proposing to do, that would be huge reserves, we have been trying to anol—and quite a few of the far-left en- 14 cents. Fourteen cents does not help do something with it. It compares as a vironmental extremists were behind a lot, at least my wife says it does not. postage stamp does to a football field. this thing to start with; in fact, former And I think you know we are kidding It is such a small amount. All the Na- Senator Al Gore, Vice President Al ourselves. There are solutions to this tives there want it. All the Alaskans Gore has stated he cast the deciding problem, but that is not one of them. want it. It is their land. That would be vote to allow ethanol in the first Then as far as the Strategic Petro- the first thing we should do to increase place—is not environmentally sound. It leum Reserve, we are putting about our capacity. is expensive. It is not good on engines, 50,000 barrels per day in there right We tried this. We passed this 10 years and it is competing. In my State of now. If we were to halt that, over the ago. Then President Bill Clinton vetoed Oklahoma, our livestock people say we course of a year it would equal less it. If he had not, that would be flowing can’t continue to have the biomass than one day of U.S. consumption. today. All the people who are com- fuels competing with our feedstocks. That is not what I call a fix. Fourteen plaining about that are the same ones Almost everything you see that is high cents a gallon is not a fix, one day of who complained about the Alaska pipe- priced now in the grocery stores you time is not a fix. line. They said it was going to kill all can trace back to the ethanol mandate. But there are some things we can do. the caribou. Go up there now during One of the things we will be wanting to We do have an amendment, amendment the summer months, and they have in- do—and I will elaborate on it later—is No. 4720. It is by our leader, Senator creased the number of caribou up there to exercise the part of that bill that MCCONNELL, and by Senator DOMENICI. primarily because in some parts of gives the EPA the opportunity to be in- This actually was a bill. It was going Alaska, the only shade they can find is volved in a waiver of the ethanol man- to be the Domestic Energy Production the Alaskan pipeline. They are all date. Act of 2008, but we are offering it now lined up there. So it is not a problem. I yield the floor. as an amendment. This would handle a The other major area of production The ACTING PRESIDENT pro tem- lot of the problems. First, if we had all potential would be to go offshore. It is pore. The Senator from Wyoming. Mr. BARRASSO. Mr. President, the of the production out there that we interesting. One of the things in this American Energy Production Act of needed to take care of America’s needs, amendment is to allow States to deter- 2008 is being offered as an amendment we still could not do anything, because mine what they want to happen off- to the flood insurance legislation be- we do not have the refining capacity. shore. It is interesting, some of the fore us today. I am an original cospon- Two years ago I introduced the Gas States, such as Virginia, south of sor of the American Energy Production Price Act. I could not believe it went where we are standing right now, very much wants to. I have talked to Sen- Act. down right on party lines. The Demo- The thrust of this legislation is ex- ator WARNER. They are talking about crats flat do not want to increase our panding American energy supply allowing production offshore. Several refining capacity. This happened in the through many different avenues. I view other States have wanted to do that. It Environment and Public Works Com- this amendment as an essential step is a wake-up call we have right now mittee. It was actually a pretty smart forward in both addressing the short- approach to it. We were taking a lot of that we are going to have to do some of term as well as the long-term Amer- the closed bases and using them and al- these things. It is interesting that Can- ican energy supplies. I also view this lowing EDA grants to take place so ada allows offshore drilling in the Pa- amendment as the right policy to deal that adjoining communities could turn cific, the Atlantic, and the Great with today’s high price of energy. those into refineries, and also stream- Lakes. Cuba is also looking to expand America needs to advance its energy lining the process and all of that. drilling, which could occur 45 miles off policy, and this amendment deserves Well, it went right down on party parts of Florida. If this happened, they immediate consideration. lines. So this amendment we are going would be doing it with technology that There are many excellent provisions to be talking about is one that will do is much less environmentally friendly of the amendment that is before us. I something about the refinery capacity. than we have right now. So we have the am particularly interested in a provi- The one we introduced, the amend- possibility the Cubans are going to be sion to ramp up production of 6 billion ment, streamlines the permitting proc- doing something without any emission gallons of fuel derived from coal. The ess so there would be a maximum on controls, without any environmental provision would start with a mandate any new refinery of 360 days on a new precautions, and we would be allowing of 750 million gallons of alternative refinery or an expansion of 180 days. it. coal-to-liquid fuels and then ramp up We have not increased our refining Another part of this amendment is to by a similar amount over the following capacity. We have not had a new refin- repeal section 526. This is something 7 years, beginning in year 2015. Ana- ery in 30 years. Other countries are that should not have been in before. lysts estimate this provision will result doing it. China is doing it. Mexico is This was actually put in in the Energy in a reduction in the amount of oil doing it. But we are not. So that is the bill that was passed in December of America is projected to import. first thing we need to do, increase re- 2007. Section 526 prohibits Federal Simply put, coal is an abundant, af- fining capacity. agencies from contracting to produce fordable, reliable, and secure source of Secondly, everybody hold on, because nonconventional alternative fuels that energy. Coal can also be a clean energy this is something I know is very for- emit higher levels of greenhouse gas source. These coal-to-liquid fuels would eign to our thinking nowadays, it is an emissions than conventional petroleum likely be used first by our military. old concept called supply and demand. sources. The scope of the fuels that The Department of Defense would be We have a lot of demand for gas out could be prohibited is left wide open to allowed to sign longer contracts for there. We know that. We know when interpretation, including fuels such as synthetic fuels. The duration of the we go to the pump. The problem is the Canadian oil sands, E85 ethanol, the contracts would be expanded from the supply. I hate to say it. Is there a coal and natural gas-to-liquids fuels. current 5 years to 25 years. By doing chance? I am kind of excited that the This was an experiment I had some- that, this simple provision provides public now has the attention of the thing to do with, as did the occupant of great potential because it adds cer- high prices and realizes we are going to the chair, in the Senate Armed Serv- tainty to the market and provides an- have to do something besides the gim- ices Committee. We now have a B–52H other incentive to develop coal-to-liq- micks the assistant majority leader bomber that is actually running on uid facilities. In a time of soaring

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3938 CONGRESSIONAL RECORD — SENATE May 8, 2008 prices at the pump, this provision de- shows how much the price of gasoline supply of oil, that if we fix the amount serves serious debate, serious consider- has gone up across the country since of oil available worldwide because we ation. January 4, 2007. If we extrapolate what refuse to open America’s own natural The fundamental energy issue before that means for the average American resources in order to expand that sup- us is one, as we have heard from all family, they have seen a decrease in ply, that rising demand for oil by coun- speakers, of supply and demand. It is a their standard of living or an increase tries such as China and India—which time for Congress to take action, ac- in their cost of living by roughly $1,400 have more than a billion people each tion that can have a real important im- a year as a result of this increase in who want the kind of prosperity and pact on America’s energy supply. gasoline prices. enjoy the sort of economic vitality the America’s coal is vital to our Na- Another figure I wish to mention is United States has—they are going to tion’s economic prosperity and our Na- the figure 745. That was 745 days ago, place greater demands on that fixed tion’s security. Coal is a crucial part of when Speaker NANCY PELOSI, before supply of oil so they can benefit, as America’s energy portfolio. Coal pro- she was Speaker, said that if she and America has, from having access to vides a foundation for a competitive her fellow Democrats were given the low-cost—relatively low-cost—energy economy, a secure future, and a pros- majority, they would come up with a for a long, long time. perous information technology sector. commonsense plan to reduce gas prices. So price gouging is something for Wise use of natural resources drives That was 745 days ago. Notwith- which we have had investigations in America’s innovation and our eco- standing the fact that they announced the past. We have had hearings in the nomic success. From the steam engines a plan yesterday—I will talk about Senate Judiciary Committee, on which of yesterday to the superconductors of that in a minute—we are still waiting I am proud to serve. The Federal Trade the world, coal has powered this Na- for a commonsense plan to bring down Commission has investigated it until tion. Now is the time to support the gas prices at the pump. they were blue in the face and found no technology and development of coal to Here is the quote: real evidence of price gouging but, liquids. This will allow coal to be an Democrats have a commonsense plan to rather, a deficit of supply when it important contributor to America’s help bring down skyrocketing gas prices. comes to increasing demand as the transportation fuel. After all, coal is This was the Speaker of the House, most likely cause. Now, the second element of the strategically found in States through- April 24, 2006. As I said, we are still Democratic leadership’s so-called en- out the Nation, both in the East as well waiting for that plan. ergy policy is litigation. In other as the West. You heard both the Senator from words, we are going to sue the Organi- The countries competing with us eco- Oklahoma and the Senator from Wyo- zation of Petroleum Exporting Coun- nomically—India, China—rely heavily ming talk about some aspects of the legislation, the so-called Domenici tries. on coal. They are poised to exploit Now, I have heard some of our col- amendment, which we will vote on, on coal’s many benefits. In order for us to leagues talk about another context: We Monday, and of which I am a proud co- sustain America’s current economic need to engage countries such as Iran sponsor. But let me focus on the plan leadership, we must continue to har- and Venezuela and talk to them di- announced by Majority Leader REID ness the vast potential of coal. Energy rectly about geopolitical matters and and the Democratic leadership yester- sources often face challenges. You about security matters. know what they are: reliability, secu- day. First, we will find some very fa- This is the first time, really, I have rity, economic competitiveness, ease of miliar elements to this plan rolled out heard them talk about suing countries conversion, impacts on food supply, by the Democratic leadership. It bears such as Iran and Venezuela and the Or- and environmental considerations. some remarkable resemblance to pre- ganization of Petroleum Exporting Coal provides an essential on-demand vious plans they have rolled out. The Countries. The irony of it is, what are energy supply in the United States, No. 1 element is it produces not one we going to sue them for? We are going and coal is a low-cost energy source. single drop of additional oil or gas or to sue them for, presumably, more oil Coal has enormous potential to be con- energy, not one drop. The other char- or make them turn the spigot open verted into transportation fuels. At a acteristic it bears a remarkable resem- even wider, ironically forcing us to be- time when America faces record prices blance to in terms of past proposals is come more dependent on imported oil at the pump, coal should be used to that they basically suggest we tax, we from dangerous regions across the produce gasoline, diesel fuel, and jet litigate, and we investigate our way to globe and from people who are not our fuel. Several provisions in the Amer- greater energy independence. This is a friend—President Ahmadinejad in Iran, ican Energy Production Act of 2008 formula which, although familiar, is head of an Islamic extremist govern- move America’s use of coal and domes- one that has not shown itself effective, ment on the terror watch list of the tic energy in the right direction. Amer- obviously, in bringing down the pain at State Department as a state sponsor of ica’s energy and economic security will the pump, the price of gasoline. international terrorism in the Middle depend on promoting technologies that First, they said: We are going to in- East; and then there is Hugo Chavez in are related to coal. The time to act to vestigate price gouging by the oil and Venezuela, somebody who is not our expand America’s energy portfolio is gas industry. We have seen investiga- friend, somebody who harbors narco- now. tions by the Federal Trade Commis- terrorists in the FARC and other orga- I urge adoption of the amendment sion. We have had numerous hearings nizations in his country. These are the when it comes up for a vote. that have found basically no substan- kinds of people we are going to con- I yield the floor. tiation for so-called price gouging. In tinue to depend more and more on by The ACTING PRESIDENT pro tem- fact, the cost of oil and gasoline has somehow filing a lawsuit against them pore. The Senator from Texas. been related to unrest around the and forcing them to sell us more of Mr. CORNYN. May I ask how much world in dangerous parts of the world their oil? How is that going to make us time remains in morning business on where the supply may be in question, more energy independent? How is that our side. whether it is the Middle East or else- going to enhance our national security The ACTING PRESIDENT pro tem- where. and our economy? pore. There are 151⁄2 minutes. They found that the failure of Con- Well, then there is the other answer Mr. CORNYN. Mr. President, I thank gress to remove the regulatory burden we have heard in the Democratic lead- the Senator from Oklahoma and the to construction of new refinery capac- ership plan they proposed—this one, Senator from Wyoming for their excel- ity has led to a bottleneck when it again, is a familiar solution, or I lent remarks on the energy crisis. I comes to refinery capacity where that should say a nonsolution—and this has want to focus attention on a couple of oil is then transformed into gasoline to do with the so-called windfall profits numbers this morning. that we burn in our gas tanks. tax. The first number is $3.65. This is the Then, of course, there is the fact that Well, I think we ought to learn from average price of a gallon of gasoline we cannot repeal the law of supply and history or else we will be condemned to now for sale across America. Contrast demand, and that unless we are going relive it. Over the entire 1980 to 1986 pe- that with the figure of $2.33. That to do something about increasing the riod, in which the U.S. Government

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3939 had a windfall profits tax, it, in fact, those oil and gas reserves located there will come forward with additional reduced domestic production from be- and produce an additional million bar- ideas. I have explained how the pro- tween 320 million barrels and 1,268 mil- rels a day of oil, that if we were also to posals they have made would have no lion barrels. That is almost 5 percent of leave up to the States—States such as impact, would provide no supply but overall production. If you think about Virginia and other States, Alaska—the would really just rehash old, tired it, there is an easy way to understand option to open their Outer Continental themes which have been shown not to that. If you put an increased tax on Shelf to oil reserves, to further produc- work in the past. But I think the de- American producers—because, of tion, if we were to open some of the oil bate is an important one, and I look course, we cannot put an increased tax shale and oil sands out in the West to forward to continuing it. on OPEC, on Venezuela, on Iran, and production, we could develop another 3 Mr. President, I yield the floor. these state-owned oil companies—the million barrels of oil capacity right The ACTING PRESIDENT pro tem- fact is, we put an increased tax burden here in America without having to de- pore. The Senator from New Jersey. on our own domestic producers. pend more and more on foreign sources f Of course, we find that the Congres- of oil. 60TH ANNIVERSARY OF THE sional Research Service has found that If you take the same argument our FOUNDING OF ISRAEL last time we tried a windfall profits friends have offered on the impact of tax, it decreased our domestic oil pro- reducing deposits of oil in the Stra- Mr. MENENDEZ. Mr. President, I duction. Why in the world would we tegic Petroleum Reserve and that that rise to honor and celebrate Israel’s 60th want to do that? How does that help in- would actually have an impact on anniversary. On a sad note, this is the crease the supply of America’s natural price, how much more would it have a first year that we honor Israel’s anni- resources, which can help ameliorate beneficial impact on lowering the price versary without my friend and former some of this pain at the pump by in- if, in fact, we were to open up Amer- colleague, Congressman Tom Lantos, creasing supply and thus bringing ica’s natural resources here at home? former chairman of the House Foreign down, hopefully, the cost of a barrel of We will have an important vote on Affairs Committee. Mr. Lantos was the oil and then the refined product of gas- Monday where the so-called Domenici only Holocaust survivor to ever serve oline? amendment—which I am proud to in Congress, and his recent passing has Well, the last suggestion has to do join—will be offered for a vote, where left a hollow void for all of us. with the strategic oil reserves. That is the Senate can go on record in showing Mr. President, on April 22 of this a final answer, by eliminating the where they stand when it comes to this year, the Senate unanimously adopted 70,000 barrels a day that we put into effort to help bring down the price at a resolution expressing our unwavering the strategic oil reserves. Now, I think the pump, which Speaker PELOSI an- commitment to the sovereign and inde- there may be a case for reducing or nounced 745 days ago. The highlights, pendent State of Israel. eliminating the 70,000 barrels of oil a as I have already mentioned, of that Sixty years after its founding, we day that go into the Strategic Petro- bill are opening portions of the Outer now witness a strong nation, a stead- leum Reserve. But I have to tell you, Continental Shelf, as we have the Gulf fast ally and strategic partner of the the world consumes roughly 85 million of Mexico 300 miles offshore from the United States, a dynamic democracy barrels of oil a day—85 million barrels State of Texas. I tell you, you cannot with a thriving economic, political, of oil a day. What effect is 70,000 bar- even see the drilling activity out there cultural, and intellectual life, that sur- rels a day that would not go into the 300 miles offshore. Indeed, the drilling vives despite the heavy costs of war, Strategic Petroleum Reserve, what im- activity could occur in the Outer Con- terrorism, and unjustified diplomatic pact would that have on reducing the tinental Shelf beyond the horizon in a and economic boycotts. price of oil globally or bringing down way that is not even visible to people We now witness an innovative nation the price at the pump? Well, my cal- on shore. which has developed some of the lead- culation is that by reducing the I mentioned the Arctic National ing universities in the world and pro- amount of oil going into the Strategic Wildlife Refuge. Tapping into that oil duced eight recipients of the Nobel Petroleum Reserve, we could bring and gas, which we know is there, would prize. down gas prices maybe 2 cents or 5 immediately produce—once it is done— We now witness a compassionate na- cents per gallon. Maybe that would be huge volumes of oil that could help re- tion, which regularly sends humani- welcomed but hardly adequate to deal lieve our dependence on imported oil. tarian aid, search-and-rescue teams, with the high gas prices we have sus- We know that building additional re- mobile hospitals, and other emergency tained and are experiencing today. fineries would help relieve some of that supplies to help victims of disasters But I want to take that one step fur- bottleneck when it comes to refining around the world and which has taken ther. If our Democratic friends believe the oil into gasoline. Of course, 70 per- in millions of Jews from countries reducing the amount of oil that goes cent of the price of gasoline is the price around the world, often fleeing those into the Strategic Petroleum Reserve of oil, but another part of it is the bur- countries and persecution. These ac- by 70,000 barrels a day is a good idea den we put on the permitting process complishments have followed one of because that might reduce, although for the construction of new refineries the most tragic events in human civili- infinitesimally, the cost of gasoline, or expanding refinery capacity. zation: the slaughter of more than 6 how much more sense would it make to My colleague from Wyoming talked million European Jews during the Hol- explore and develop the million-barrel- about coal, and I agree with him that ocaust. a-day capacity that is located in Alas- we ought to use good, old-fashioned We are reminded that, as I have said ka in the Arctic National Wildlife Ref- American ingenuity in our research many times before on this floor, the uge? If you take the million barrels of and scientific ability to figure out, how events of the Holocaust are not distant oil a day that could be produced from do we use this coal—we are the ‘‘Saudi and are not buried in the past. Today, ANWR, then you are talking about— Arabia’’ of coal—how do we use it in a those who survived the camps live to according to the same calculation I way that is compatible with a good en- tell us their story, the stories of their just used on the Strategic Petroleum vironment? The technology has already families and their lives before the Hol- Reserve—reducing the pricing of gaso- been demonstrated, things such as ocaust. Their children and grand- line, by an additional million-barrel coal-to-liquids technology, coal gasifi- children are here with us too. They are supply of American oil a day, by 85 cation, which can capture the carbon, living testimony to the strength, the cents to $2.14 a gallon. Now, that would deal with the environmental concerns, courage, and optimism of their parents be a real impact, to be able to bring and yet provide us access to energy and grandparents. But in their hearts down the price of gasoline by 85 cents which can help drive our economy and and in their souls they feel the pain to $2.14 a gallon. help make us less dependent on im- and suffering of those who raised them. I just mentioned the ANWR reserves. ported oil and gas from other parts of In them, too, the past is present. But it is estimated if we were actually the world. Echoes from that tragedy still rattle to open not only Alaska to environ- So, Mr. President, I hope our col- our world in other ways. Every time a mentally responsible development of leagues on the other side of the aisle hateful slogan is spray-painted on a

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3940 CONGRESSIONAL RECORD — SENATE May 8, 2008 wall, every time a bigoted joke spreads Against these acts of bloodshed and The story of Israel’s rebirth is inex- like wildfire on the Internet, every repression and violence, the creation of tricably bound up in the story of an- time a synagogue somewhere in the the modern State of Israel in 1948 other extraordinary principal, purpose- world has to station armed guards out- stands as a counterpoint in human his- ful nation with its own special sense of side so its members can pray in peace, tory, a soaring act of hope and faith in destiny, and that is, of course, our own and every time a terrorist Qassam our capacity as human beings to rise beloved country—the United States of rocket attack from Gaza shatters a from the ashes of despair and to rebuild America. pane of glass at a family’s home or a and restore that which for so long had From the earliest days of our Na- school, we feel the dark shadows of his- seemed hopelessly lost. tion’s history, there has been a link be- tory falling upon our time. The modern history of the State of tween the promise of America and the It is a harsh reality that 60 years Israel goes back 60 years, but of course promise of Israel. The early settlers to after its founding, the nation of Israel the history of Israel goes back more America in fact believed they were continues to face mounting threats to than 4,000 years ago to the first words founding here a new Jerusalem. The its way of life and its existence. Sixty that God spoke to Abraham as recorded first minister to step foot at Plymouth years after the establishment of a in Genesis 1:21: Rock uttered words from the prophet homeland for the Jewish people, anti- Now get thee unto the land that I will Jeremiah. Many of our Nation’s Found- semitism is very much alive. show thee, and I will make thee a great Na- ing Fathers were themselves Zionists. So those who speak against the sov- tion. The President of the Continental Con- ereignty of Israel or threaten its oblit- That was the covenant that God gress, Elias Boudinot, predicted that eration or who believe that anti- made with Abraham and which God re- the mighty power of God would some- semitism is an attack that need not be peated to Isaac, to Jacob, and then to day return the Jews to their beloved answered, do not recognize the con- Moses who, with God’s help, delivered land. And John Adams wrote: sequences of history. In fact, an attack the children of Israel out of bondage in I really wish to see the Jews again in against anyone simply because of race Egypt to Mount Sinai where they re- Judea as an independent Nation. or religion is ultimately the beginning ceived the Ten Commandments, their When the modern State of Israel de- of the unraveling of civilization. So it national statement of purpose and des- clared its independence 60 years ago is in our common interests to raise our tiny, and then after 40 years in the wil- this month, it was officially and most voices against antisemitism. derness, returned to the land that God significantly recognized a mere 11 min- By honoring and commemorating the had promised—the land of Israel. utes later by a great American Presi- 60th anniversary of Israel, we do more It was there in the land of Israel dent, Harry S. Truman. than congratulate a nation. We take a more than 3,000 years ago that King Americans and Israelis alike are the stand against hatred and discrimina- David entered Jerusalem and declared children of freedom. We are both de- tion everywhere. We recognize a tri- it to be the capital of the Jewish peo- voted to our democratic ideals, our cul- umph over fear and achievement of in- ple. And it was there in Jerusalem that ture of economic opportunity, and our dustriousness, a victory of hope. We ex- David’s son Solomon built a holy tem- political pluralism. These are the prin- press our sincere confidence that de- ple to house the Ark of the Covenant ciples we cherish and the principles spite the challenges its people have and the Ten Commandments. Thus in that define not just who we are but faced, despite the threats to their very one place was established both the po- who we aspire to be. I think it is the existence, Israel has and it shall over- litical capital of the Jewish people and main reason, when our two nations come. the religious center of that people’s Israel and the Jewish people have look at each other, we so often see the faith. held many commemorations and events best of ourselves. It is also why suc- It was also there almost 2,600 years over the past week. Yesterday was a ceeding Presidents of both parties since ago on a dark day in history that the day to remember those who gave their Harry Truman have given such stead- temple that Solomon built was de- lives to protect the State of Israel and fast support to the State of Israel. stroyed. The Jewish people were forced I have often said as Presidents come others who have fallen victim to at- into exile, returning just 40 years later tacks from its enemies. Today is a day and go, some seem more supportive of to their homeland to rebuild the tem- to celebrate the nation’s 60 years of Israel, some somewhat less. The cur- ple. It was during the time of the sec- life. It is a day for celebration and for rent President obviously is one of those strong action. ond temple under Roman rule that who has most steadfastly and signifi- On this day, we pause to commemo- Jesus of Nazareth lived, preached, cantly supported Israel. But over the rate all of those who have contributed taught, and healed the Jews of Israel. long term, the great guarantor of the to make Israel such a strong nation, But the temple was to be destroyed U.S.-Israel relationship has been the and we pledge to continue to strength- once more, and most, if not all, of the bipartisan, pro-Israel majorities in en our bonds of close friendship and co- Jews were forced to flee the land. both Houses of Congress. operation so that as proud as this na- For nearly two millennia, the Jewish Throughout her brief history, Israel tion’s history is, the future will be people in the Diaspora prayed every has also courageously faced enemies even brighter still. day that they could return to the who have threatened her existence. Mr. President, I yield the floor. promised land. For almost 1,900 years, Today we once again see the rise of The ACTING PRESIDENT pro tem- the State of Israel was thus carried in such threats to Israel, including some pore. The Senator from Connecticut is the hearts of millions of these Jewish that are existential. Those threats recognized. exiles, and even more millions of Chris- come from the same Islamist extrem- Mr. LIEBERMAN. I thank the Chair. tians who prayed some of those same ists and terrorists who threaten Amer- Mr. President, I thank my colleague prayers for Zion’s restoration, particu- ica today and against whom we are from New Jersey for his powerful and larly here in America. fighting the global war on terrorism. eloquent words. I am privileged now to That collective yearning gave rise to History has taught us that we cannot stand to join him in giving honor and a new political movement at the end of ignore or appease these dangers, so celebrating the 60th anniversary of the the 19th century—the modern Zionist let’s never forget that Israel is a living founding of the modern State of Israel, movement. It was led by Theodore symbol for the ideals we as Americans which is a day truly to celebrate. Herzl and a small band of followers, treasure—the ideals of freedom and The 20th century witnessed unprece- Jewish and Christian, throughout the human dignity. dented horrors inflicted by man world. Many people said those early Zi- It is sometimes said that nations do against his fellow man, from the onists of the modern era were naive not have permanent friends, only per- trenches of World War I to the gulag dreamers, but Herzl replied: ‘‘If you manent interests. But I believe the archipelago of the Soviet Union to the will it, it is no dream.’’ If you will it, United States of America has a perma- killing fields of Cambodia and Rwanda it is no dream. Will it they did, and nent interest in our permanent friend- and, of course, the genocide per- work for it they did. In 1948, 60 years ship with the State of Israel because petrated by Nazi Germany against the ago this month, their dream became a that friendship is based on eternal val- Jews of Europe. reality. ues. We pledge today on the day of this

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3941 60th anniversary of the modern State was at the home of Rabbi Daniel for his comments about the state of of Israel, and we pray with God’s help Gordis, who is well known in the Israel. He has captured the special na- that those eternal values and perma- United States. He went to Israel from ture of Israel, which one gets when nent friendships will sustain these two the United States. The rabbi had a 19- they have an opportunity to visit the great democratic nations eternally. year-old daughter at that time who country and see the faces of the people I thank the Chair, and I yield the was serving in the military. At dinner, of Israel and what they have been able floor. Rabbi Gordis told us the story about to accomplish in a relatively short pe- The ACTING PRESIDENT pro tem- going very early in the morning to riod of time, in a very small country. pore. The Senator from Pennsylvania. wake up his daughter to take her back Today, we in the Senate pause to cel- Mr. CASEY. Mr. President, I rise to where she was stationed in the ebrate Israel’s 60th anniversary. To the today to commemorate and to cele- army, only to notice that, while she strongest ally of the United States in brate the 60th anniversary of the was soundly sleeping in her bed, next the Middle East, we wish Israel contin- founding of the modern State of Israel. to her automatic weapon was her Curi- ued success. I wish to commend my colleagues from ous George stuffed animal from her There is good reason that Israel is Connecticut and New Jersey, Senators childhood. As the father of four daugh- our strongest ally in the Middle East. MENENDEZ and LIEBERMAN, on their ters, I will never forget that image— It is a nation that has been built upon statements this morning. the image of a young Jewish woman, democratic principles, a trusted ally in Since its independence in 1948, bravely serving her country, but not our war against terror. It shares our Israel’s promotion of democratic val- that far removed from her own child- values in a critically important part of ues has helped forge a thriving society hood. Rabbi Daniel Gordis, like so the world to the United States. and a bastion of freedom in a region many parents in Israel, was feeling the President Lyndon Johnson said, ‘‘The where that value is sadly all too emotion, the human emotion of love U.S. and Israel share many common scarce. The vision of a permanent for his daughter and, at the same time, objectives, chief of which is the build- homeland for the Jewish people was love for his country. There is no better ing of a better world in which every na- centuries in the making and was fi- example of the profound sacrifices of tion can develop its resources, and de- nally achieved in May of 1948. From its the Jewish people and what they have velop them in freedom and peace.’’ outset, Israel has faced a myriad of given to build and preserve the state of Israel today is a vibrant oasis of de- challenges which it has navigated suc- Israel. The story of Rabbi Daniel mocracy in a region of the world re- cessfully against all odds. A small Gordis and his daughter is Israel’s plete with secular and religious dic- state with few natural resources and story. tators. residing in a region decidedly un- I was reminded, when I was there, of friendly to its very existence, the odds For 60 years, there have been near a passage from Scripture. We went by a constant military and terrorist against Israel have always been high. school, and this part of scripture was Yet the nation of Israel has endured. threats, economic boycotts, and diplo- inscribed on the school, which, in many matic hostility. Yet it still stands as a Today, Israel is known for a vibrant, ways, represented the bright promise high-tech economy. It successfully ac- thriving, pluralistic democracy, with and future of Israel. It is taken from the rule of law, and an independent ju- commodates a significant Arab popu- the prophet Zechariah, chapter 8, and I lation inside its borders, allowing Arab diciary that works to protect freedom will quote it briefly. This is the proph- of speech, association, religion, a free representatives to serve in the Knesset. et predicting thousands of years into It has achieved broad universal rec- press, and fair and open elections. the future at that time: Israel has become not only a regional ognition and has forged peace with pre- There shall yet old men and old women vious enemies, including Egypt and power but international leader in agri- dwell in the streets of Jerusalem, and every culture, health, science, medicine, high Jordan. This will to surmount adver- man with his staff in his hand for every age. sity time and time again comes from And the streets of the city shall be full of tech, and security. It has used that ex- the tenacious spirit of its people and boys and girls playing in the streets thereof. pertise to reach out and help so many represents the very reason we are able That prophecy of long ago has indeed other countries in the world deal with to celebrate their anniversary today. come to pass for the great state of its challenges. Although it is a very I was fortunate enough to visit Israel Israel. So today, and every day, when small country, eight of its citizens in November of 2005 and meet with var- we celebrate their bold entrepreneurial have been acknowledged as Nobel lau- ious people who make up the mosaic of spirit, a strong sense of community, a reates. In homeland security, it has that great nation. Today I want to commitment to national service and, helped the United States in dealing share with my colleagues two indelible obviously, a commitment to liberty, with our war against terror in the post- experiences. all these values, combined with the 9/11 era. First, I toured a semiconductor democratic ideal that permeates their Tel Aviv’s Ben-Gurion Airport is a plant, the Vishay plant near Tel Aviv, society, all these make Israel what it is model for airport security. Our Nation a plant whose base company is located today and demonstrates why it is such has benefited by learning how the in Chester County, PA. What made this a strong ally of the United States of Israelis protected their airports, and plant so special outside of its Pennsyl- America. Our two nations share a deep we are using many of those procedures vania ties was that it was started by a and unshakable bond, and that alli- here in the United States to protect Holocaust survivor, Dr. Felix ance, I believe, will endure for the next our own citizens. Zandman, and his son Mark who led us 60 years, and for all of our tomorrows, I can tell you how the Israelis have on the tour. as it has for the previous six decades. helped Maryland deal with homeland We not only observed the factory As the world community continues security issues. They have come and processes and equipment but also, and to deal with conflicts in the region, the looked at one of our urban hospitals to more importantly, the resiliency, I Jewish people must know that the make sure we take every precaution to should say, of this brave family. Dr. United States will always extend our protect the citizens of Maryland. Zandman experienced the most horrific assistance to our indispensable ally as Israel is a safe haven for Jews—from fate imaginable to man. Yet out of his it moves forward on the road toward the Soviet Union, to Ethiopia, or any experience, he was able to pick up the peace and stability. country where Jews are threatened. As pieces of his life, begin participating in Once again, I extend my warmest David Ben-Gurion said 60 years ago, his community again, and to become a congratulations to the state of Israel ‘‘The land of Israel was the birth place very successful businessman, who now on its 60th anniversary. of the Jewish people. Here their spir- contributes to the global economy. To I yield the floor. itual, religious, and political identity me, his story reflects the strength and The ACTING PRESIDENT pro tem- was shaped. Here they first attained courage embodied in the Jewish people. pore. The Senator from Maryland is statehood, created cultural values of The next experience occurred while recognized. national and universal significance and attending a Saturday dinner in Jeru- Mr. CARDIN. Mr. President, first, let gave the world the eternal Book of salem after the end of the Sabbath. I me thank my colleague Senator CASEY Books.’’

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3942 CONGRESSIONAL RECORD — SENATE May 8, 2008 Ben-Gurion went on to say that the Sderot and other towns near Gaza. Sui- Israeli President Shimon Peres spoken State of Israel ‘‘will be based on free- cide bombings continue. Hezbollah has only a few days ago. I know the Pre- dom, justice, and peace, as envisioned increased military capability, with siding Officer has met Shimon Peres by the prophets of Israel; it will ensure support from Syria and Iran. The lead- before in the number of roles he has complete equality of social and polit- ers of Iran—the most active state spon- played. I have been fortunate to do ical rights to all of its inhabitants, ir- sor of terrorism in the world—continue that as well. I have never met anyone respective of religion, race, or sex; it to call for Israel’s destruction, while who has a greater gift with the English will guarantee freedom of religion, con- denying that the Holocaust ever oc- language than this man. science, language, education and cul- curred. I want to share these words he said a ture; it will safeguard the holy places These are enormous, complex chal- couple days ago: of all religions.’’ lenges. But after 7 wars in only 60 Over the past 60 years, we have something Since its first days as a modern years, Israel somehow has achieved re- that previous generations of Jews, those who state, it has sought peace with its Arab markable—some would say miracu- were trampled in the pogroms and who were burned in the crematoria, did not have. The neighbors. During the declaration of lous—success, all the while having to soldiers who fell created a miracle unparal- independence, Israel stated: fight for its existence almost every sin- leled in history: the miracle of the state of We extend our hand to all neighboring gle day. Israel. . . . For 60 years, they fought in seven states and their peoples in an offer of peace Today is the day to express our fun- wars that were forced upon us, and that we and good neighborliness and appeal to them damental pride in a number of their won. They enabled us to establish an exem- to establish bonds of cooperation and mutual successes. For example, Israel’s popu- plary society, to be trailblazers in the world help with its sovereign Jewish people settled lation today is 7.3 million people, more in . . . agriculture, medicine and defense, to be a peace-seeking people, a democratic in its own lands. The state of Israel is pre- than 9 times the 800,000 who lived there pared to do its share in a common effort for state, and a state that seeks justice. the advancement of the entire Middle East. in 1948. Since its founding, over 3 mil- To that I would only add, may it be lion immigrants have been successfully It has had success, with the help of so for a millennium or more. absorbed. the United States, as peace agreements Ms. KLOBUCHAR. Mr. President, I While Israel is the world capital of join my colleagues who have come to were entered into with Egypt and Jor- Torah learning, it is among the world’s dan. But to those who continue to chal- the floor today to recognize and salute leaders in high-tech, medical, and sci- the 60th anniversary of the founding of lenge Israel’s sovereignty and security, entific advances. In 1948, there were let me caution them with the words of the modern state of Israel. only two universities; today there are Today is a great milestone for the President John F. Kennedy when he eight. On a per capita basis, Israel’s said: people of Israel—and for all Americans. GDP places it in the top tier of all na- Ever since President Truman recog- Israel was not created in order to dis- tions. Democratic institutions flourish nized Israel minutes after its birth on appear. Israel will endure and flourish. It is there. Both Jews and Arabs serve in the child of hope and the hope of the brave. May 14, 1948, the United States and It can neither be broken by adversity nor de- Israel’s Parliament, the Kennesset. Ad- Israel have enjoyed a friendship based moralized by success. It carries the shield of ditionally, Israel has an independent, on values rooted in democracy and mu- democracy and it honors the sword of free- effective judiciary and a free press. tual strategic goals. dom. So today I rise to join many of my Israel’s survival and success are a re- On the 60th anniversary of the state colleagues in reaffirming the commit- markable testimony to the vision that of Israel, we wish it continued success ment of the United States to Israel’s inspired its creation six decades ago and peace, as the bond between our two security. and to the Israeli people who have countries continues to strengthen. For the people of Israel, to its citi- made that vision a reality . I yield the floor. zens, our message is simple and clear: On this day of celebration, we must The ACTING PRESIDENT pro tem- We will continue to stand in solidarity reflect on the course charted by the pore. The Senator from Delaware is with you. We are proud of what you great leaders over the last six decades recognized. have become. that have made this milestone possible. Mr. CARPER. Mr. President, I ask As I said earlier, I have had the privi- Though the journey has not always unanimous consent to speak as in lege of visiting Israel a number of been along a straight and smooth path, morning business for up to 10 minutes. times—when I served in the House, as a each step along the way has been paved The ACTING PRESIDENT pro tem- Governor leading a trade delegation, as with the two fundamental and com- pore. Without objection, it is so or- a Member of the Senate, and perhaps plementary tenets of the Israeli nation: dered. the most special and memorable visit resilience and faith.‘‘ Mr. CARPER. Mr. President, 60 years for me was with my teenage son, The existence of Israel across these ago, on May 8—or May 14, under our roughly 3 years ago. We were in Israel six decades—the way it has grown and western calendar—Israel declared its on Easter weekend. We actually had flourished—has provided security and opportunity for its citizens. It has independence. On this special day, the privilege of being on Golgotha, strengthened and enhanced Jewish life when Jews and Christians, heads of where Christ was believed to have been around the world. And it has been a state, and others around the world cel- crucified, and we were there on Easter beacon of democracy that makes the ebrate the founding of Israel, I rise for Sunday. We were privileged to be at entire world a safer, more hopeful the tomb where Christ’s body was be- a few minutes to reaffirm our Nation’s place. commitment to Israel’s security and lieved to have been lain, and we placed I had the honor of traveling to Israel the pursuit of a comprehensive, just, our hands there on Easter Sunday. 2 years ago and seeing first-hand the and lasting peace in the Middle East. What an unforgettable memory. I had strength and vitality of the country. I That is one of the reasons I cospon- the privilege of meeting Prime Min- still remember the warm welcome I re- sored the resolution recognizing ister Shamir, Ehud Barak, Ariel Shar- ceived from the Israeli people, as well Israel’s 60th birthday, and reaffirming on, Netanyahu, and Shimon Peres, as the courage and pride they bring to the close ties between our country and among others. I will never forget being everyday life. I was honored to meet Israel, a nation I have been privileged at the home of the U.S. Ambassador to with Prime Minister Ariel Sharon just to visit as a Congressman, as a Gov- Israel on July 4, roughly 10 years ago— a few weeks before his tragic stroke, ernor, as a Senator, and maybe most being there and meeting what seemed and I will value forever the lessons I importantly as a father with a teenage like half of the leadership of Israel, and learned from our conversation. son. any number of prominent Israeli citi- Today, America’s and Israel’s inter- Current events threaten to over- zens as our guests that day celebrating ests in the Middle East and around the shadow the importance, though, of this our independence, our Nation’s birth- world have never been more closely independence day: Prime Minister day. aligned. Our common values and objec- Omert is again being investigated. An- Today, some 10 years later, as we pre- tives continue to drive us to meet the other round of peace talks appears to pare to celebrate Israel’s birthday with challenges we face, and to pursue op- have stalled once more. Hamas con- the Israelis and people all over the portunities for greater peace and pros- tinues to launch Qassam rockets at world, I want to close with the words of perity.

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3943 We are in the midst of turbulent faced injustice, persecution, expropria- of 6 million Jews. The Holocaust was times, with. instability threatening to tion, pogroms, and genocide; and they not the first or the last genocide. It spread across the Middle East. But the have persevered. was the culmination of centuries dur- people of Israel must know that wher- The return of the Jews to the Holy ing which Jews were ostracized, per- ever forces of intolerance gather to en- Land is perhaps the greatest historical secuted, and purged from country after danger their safety or security, the event of our time. The Jewish commu- country. The Jewish people struggled United States will stand beside them in nity emerged from the greatest tragedy to maintain their heritage, their tradi- defying and defeating these foes. the Diaspora had ever known, and in tions, and did so in the midst of other By continuing to support Israel, we its aftermath built the greatest tri- cultures, after the fall of Jerusalem support stability and democracy and umph. The authors of that triumph en- and enslavement by many other soci- we can make further progress toward compass the whole of the early Israeli eties. peace in the region. community. The great David Ben- For over 2000 years, Jews faced dis- I ask that my colleagues join with Gurion declared Israel a state but he crimination, including restrictions of me in congratulating and celebrating could not have without the thousands their rights, religious practices, and with the people of Israel on the 60th of brave Israelis willing to fight for it. even professional occupation. Yet even anniversary of the founding of their na- Chaim Weizman secured international as Jews were able to prosper and estab- tion, and that we renew our commit- support for Israel but he could not have lish themselves as an integral part of ment to ensuring that we will continue without the hundreds of thousands of society in Europe, this progress was to celebrate each successive anniver- Jews willing to immigrate to the Holy wiped out by the Nazi regime. Thou- sary for decades to come. Land. And of all these heroes, the fa- sands upon thousands of Jewish fami- Mr. NELSON of Florida. Mr. Presi- mous and the anonymous, none have lies, including my own, were uprooted dent, Israel’s first Prime Minister given more than the 22,437 Israeli sol- from their homes and forced to flee for David Ben-Gurion, on May 14, 1948, pro- diers who have fallen in battle since their lives for no other reason than the claimed the establishment of the state 1860. It is no coincidence in Israel that fact that they were Jewish. Not all of of Israel, and 60 years later now, we Independence Day is preceded by Re- our family was able to get out. We lost celebrate this momentous time in membrance Day, to honor the fallen family at Krystalnacht. We lost family Israel’s history. I congratulate, along Zahal warriors. On this 60th anniver- at Theresienstadt. My family came to with all of the other Senators, Israel sary of Israel’s independence, I know this country knowing they were com- on its 60th anniversary, and the close that wherever they are, those sons and ing to the best and freest place on relationship the United States and daughters of Judea are proud indeed. Earth. But not all were able to come Israel have. It serves as an important I am also proud that America has here. Many European Jews were not al- purpose of promoting peace in the Mid- stood with Israel in her times of need. lowed entry into other countries, in- dle East. It is only fitting that the two great cluding the land that is now Israel. Helping Israel achieve peace with its democratic nations forged by immi- Upon the conclusion of World War II, neighbors while maintaining its secu- grants and pioneers be close allies, in the United States joined with other rity strengthens both of our strategic the ongoing struggle against the forces countries in the United Nations to rec- interests. We must do everything we of fanaticism. For Israel, this fight is ognize the right and need of the Jewish can to end the bloodshed and bring the as familiar as existence; for America, people to have the security of being parties together. We must resume it is an old enemy in a new guise. Dur- able to live in their own state. The those positive measures. ing my time in the Senate, I have United States was, in fact, the very We must, as the Good Book says: worked tirelessly to strengthen the first country to recognize the State of Come, let us reason together. Most of bond between our two countries. I be- Israel on May 14, 1948. After thousands us out here support two states living lieve the bonds our two countries share of years, Jews had established in their side by side in peace and security for are as everlasting as they are many- historic homeland a sovereign country both. That was outlined by the Presi- layered. Together, they will ensure of their own, Israel. Yet Israel is much dent in a speech on June 24, 6 years that Israel faces down the next threat, more than a sanctuary for the Jewish ago. and the one after that, and after that, people. Israel’s importance transcends To achieve that, the Palestinians and so on until her 120th anniversary, the Jewish religion. Israel is a place of need to reform their institutions and when I pray there will at last be peace. enormous historic significance. It is a cease those continued terrorist activi- The past three have been littered sacred land not only for Jews but for ties against all the innocents. Contin- with many enemies, from Titus to the Christians and Muslims as well. All ued engagement by our country is re- Nazis, each with their own dream of de- three of the world’s major monothe- quired to help us get to that goal of stroying the Jews. Some came peril- istic faiths honor Jerusalem and other peace in the Middle East. I look for- ously close. But today we know that surrounding sites as holy places that ward to the continued cooperation of the destruction of the Second Temple, hold unique importance to the develop- Israel and the United States toward and the Inquisition, and the pogroms, ment of their religions. Israel has that goal. My hearty congratulations and the Holocaust were not in fact the worked to protect the interests and to Israel on its 60th anniversary. end of the story. The legend did not rights not just of Jews but those of all Mr. SMITH. Mr. President, I rise end. In 1948, the new chapter of the faiths. today to honor the State of Israel on tribes of Israel began, always glorious The Israeli Government provides ac- the 60th anniversary of its independ- and always tragic, animating the pages cess to historic and religiously signifi- ence. of history until the final chapter of cant sites and allows clergy, scholars, The story of the tribes of Judea Man. historian, archeologists, and others to began, as we know, in the Old Testa- May Israel ever be with us, and us pursue their studies of this very his- ment. The Israelites fled from Phar- ever by her side. toric, very special land. Israel is also of aoh’s slavery, wandering for 40 years in Mr. WYDEN. It is a great honor to enormous importance to our country. the desert before coming to their land. come to the floor in celebration of the Israel is America’s strongest and most It is a familiar narrative—and not only 60th anniversary of the establishment reliable ally in the Middle East. In a to those who study Scripture—for of the State of Israel. The creation of region that has been plagued by insta- those early trials of the Jewish people an independent Israeli State was truly bility but is of enormous strategic sig- bespoke an awe-inspiring destiny, both one of the most significant events of nificance, Israel is a stable democracy glorious and tragic. No other people on the 20th century. Following the hor- and a stalwart ally. earth have survived and prospered in rific events of the Holocaust, the As a member of the Select Com- the face of so much hardship. The Jew- founding of the State of Israel symbol- mittee on Intelligence, I follow these ish community has been contem- ized a recognition of the right and the issues closely and would say from the poraries of the Assyrians and Babylon, need of the Jewish people to have a Camp David accords to the current Crusaders and Rome, the Hapsburgs homeland—a place of sanctuary and se- peace talks, Israel has consistently and the Soviet Kremlin. They have curity after the senseless annihilation demonstrated a willingness to work

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3944 CONGRESSIONAL RECORD — SENATE May 8, 2008 along with the United States to engage God; respect of the rule of law as the secure homeland founded upon demo- its neighbors in difficult negotiations. foundation of a just society, not just cratic principles. We believed then, as Despite constant attacks and threats the power of men; and a commitment we do now, that democracy is, in Lin- to its very existence, Israel has given to the cause of liberation because the coln’s words, ‘‘the last best hope of up land and made very significant con- rights of the people are an inalienable Earth.’’ From such a commitment ciliatory offers in the interest of gift from their Creator. there is no out. To deny our support of achieving lasting peace and stability in So this celebration is not just a mile- Israel would be to deny everything the Middle East. stone for the Jewish people but for all America holds sacred and vital. We not Finally, beyond the religious, his- humanity. It is a celebration of the only have to hold to our commitment, toric, cultural, diplomatic, and stra- perseverance and faith of the Jewish but we must use our influence around tegic significance, it is important to people, those who have resisted oppres- the world to encourage other nations recognize the impact Israel has had at sion for thousands of years. The story to move in that direction. the human level for its citizens and for of Israel is a passionate history of the This commitment dictates that we people around the globe. Israel has es- capacity of human beings to remain remain vigilant and watchful over tablished a thriving economy, a world- true to ideals, to overcome the longest these Iranian threats. I expect the class education system, and has ad- odds, to realize a dream in the midst of United States to lead the way and use vanced scientific and technological in- those who wish to deny it. its influence over other countries that novation on numerous fronts. The dis- Over a century ago, Theodore Herzl may undermine these nonproliferation tinguished Senator from Minnesota put into writing his vision for a free efforts. For this reason I was very dis- and I have talked many times about Jewish state. His immortal words: ‘‘If appointed by the administration’s in- sistence in signing a nuclear coopera- the issue of health care. It is striking you will it, it is no legend,’’ personified tion agreement with Russia. I have to see the Israelis in such an innova- the deep faith of the Jewish people and written, along with Senator BAYH, a tive, focused kind of way look to their heritage and their role on this letter to the President signed by 32 health care improvements that are planet. Both the United States and Senators from both parties in which we going to be of great use, not just to the Israel were founded on the hope and state that taken together, Russia’s op- people of Israel but to many around the promise of being ‘‘a light unto na- position to effective U.N. sanctions world. In 60 years, Israel has truly es- tions,’’ and this is a principle that de- against Iran’s nuclear weapons pro- tablished itself as a global leader and a fines us and binds us together. gram, its ongoing assistance to Iran’s vital partner in the international com- For this reason, I believe the anni- versary of the State of Israel encom- ballistic missile programs, its exports munity. of fuel to Iran’s Bushehr reactor, and It is a great honor to be able to stand passes much more than the rebirth of a nation. As a person of Jewish heritage its increasingly abrasive foreign pol- today on the Senate floor to recognize icy, all give us cause for concern with- the 60th anniversary of the State of and a public servant, this milestone has special significance for me. It re- out finalizing such an agreement. Israel. I look forward to continuing the Submitting a 123 agreement with minds me not just of the added sense of close and indispensable partnership be- Russia to Congress at this time could responsibility to work for justice and tween our country and Israel. Today I severely undermine our policy with re- wish the people of Israel the greatest peace, but of the lesson to never give spect to Iran at a critical juncture. success, the greatest happiness, and es- up in my pursuit of those ideals, no Iran’s testing of advanced centrifuges pecially peace for the next 60 years and matter the size of the obstacle. could significantly reduce the time it But in Israel’s existence, there is also beyond. would take to reduce highly enriched a lesson of what we are called to pur- Mr. COLEMAN. Mr. President, a uranium for a nuclear weapon. We sue. The Jewish people have withstood birthday is an occasion that allows a urged the President not to send the family to focus on one of its members much persecution through the years agreement to Congress until Russia has and celebrate what is unique and spe- and endured some of the most horrific ended support for Iran’s ballistic mis- cial about that person. It is time to re- crimes against humanity that the sile program and stopped providing ad- flect on major challenges met and world has ever seen. It is our responsi- vanced conventional weapons and as- major fulfillments achieved. The same bility to remind the world what hu- sistance to Iran’s nuclear fuel cycle is true when we celebrate the birth of manity is capable of if we do not re- program. Russia must also cooperate a nation, or perhaps more appro- main vigilant and fight ignorance and with us to increase meaningful eco- priately today, its rebirth. injustice wherever it emerges. nomic pressure on Iran to end its defi- The modern State of Israel is 60 years Even today, after 60 years of inde- ance of the United Nations Security old today. But the idea of Israel was pendence and 7 wars fought to preserve Council’s mandatory resolutions to born at the dawn of recorded history. it, Israel continues to face grave suspend its enrichment of uranium. Students of the Bible know that Israel threats. Iran and its regional proxies— Improving our commercial ties to was originally a person—the father of Hamas and Hezbollah—continue not Russia may be a national interest. It 12 children who became the Twelve only to reject a peaceful solution to may be good economically for the Tribes. Israel became a nation as the the Arab-Israeli conflict, but also to United States and for Russia, but pre- progeny of those patriarchs grew in undermine the very existence of Israel venting Iran from acquiring nuclear population of more than 1 million. And as a democratic and Jewish State. weapons is a national interest of great- Israel has become a revered concept, a The Iranian President continues to er importance on which we cannot union of spiritual ideas that has bene- blatantly deny the Holocaust of the compromise. fited many cultures far from the Mid- Jewish people while vowing to create When I reflect on Israel at 60, I am dle East. another one. Iran’s pursuit of a nuclear excited about Israel’s future, despite That is what our second President, weapon is very real and must not be al- the ever-present challenges. As David John Adams, meant when he wrote: lowed to succeed. A nuclear Iran would Ben-Gurion said in the early days of The Hebrews have done more to civilize dramatically alter the fragile balance the modern Israeli nation, ‘‘Around man than any other nation. If I were an in that volatile region and would pose here, if you don’t believe in miracles, atheist and believed blind eternal fate, I an existential threat to the State of you’re not a realist.’’ should still believe that fate had ordained Israel. The Jewish people truly understand the Jews to be the most essential instrument In 1948, the United States under this concept, as there are many mir- for civilizing the nations. President Harry Truman made an un- acles that have come together to pre- We in the United States have enjoyed conditional commitment to the State serve the Jewish people throughout that civilizing influence. Much of what of Israel. That commitment was not history, including the one that brought we believe and assert in our founding based on the price of gas, economic pol- the modern State of Israel into exist- documents was drawn from ancient icy, or partisan politics. It was a moral ence. The anniversary of this miracle Jewish roots. The belief in individuals covenant made in response to genera- should be a joyous one, and the fact having ultimate value is because they tions of mistreatment of the Jewish that Israel has now stood firm for 60 are made in the likeness and image of people and a desire for them to have a years should be celebrated.

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3945 America should thank God for the of Israel, and to congratulate the Gaza Strip and the hands of those who heritage of freedom Israel has given us. Israeli people on this historic occasion. seek to do Israel harm. On this day, America should reaffirm It is also an appropriate occasion to Such continued U.S. engagement is its resolve to protect and sustain the note the close and unwavering friend- imperative if there is any hope for place and the people who have given us ship our two countries have enjoyed long-term peace between Israel and its so much. The gift Israel needs from us over the past 60 years. neighbors. on its birthday is our gratitude, to be President Harry Truman formally But hope is the foundation on which sure, but also our renewed, unshakable recognized Israel just 11 minutes after Israel was built. commitment to keeping those ancient the new country’s independence procla- It is what enabled people of so many dreams and ideals that we share alive. mation. Eleven minutes. That is per- backgrounds and languages to speak Mr. DODD. Mr. President, it is an haps the fastest that anything has ever with a common voice. honor to come to the floor today to cel- occurred in this city. It is what enabled them to bring ebrate Yom HaAtzmaut, Israel’s 60th Fast doesn’t necessarily mean easy, water to a desert and grow crops where Independence Day. though, and President Truman was there had only been sand. Today, on its 60th birthday, we recog- under a great deal of pressure, includ- It is what continues to lead the nize that Israel remains an island of ing from his own State Department, Israeli people forward, 60 years after its openness. Its success belongs to all the not to support the creation of a Jewish founding. Israeli people and is more lasting than state. I share that hope for a brighter fu- anything that ever happened on a bat- But Harry Truman did the right and ture—for Israel, for the United States, tlefield. courageous thing, and for the past 60 and for our enduring friendship. With politics that are open and vi- years, Israel has been one of America’s Congratulations to Israel on its 60th brant, markets that are free and fair, closest friends and allies birthday. and laws that hold for weak and strong That friendship has persevered, in Mr. FEINGOLD. Mr. President, I am alike, for six decades, America has part because of our dedication to many pleased to mark the 60th anniversary been a good friend to Israel. Indeed, it common values. of the founding of the modern State of only took us but 11 minutes to recog- Israel has a strong and vibrant demo- Israel. On this momentous occasion, we nize this new state, this new ally, in cratic tradition, and a prosperous and celebrate a vibrant nation that has May 1948. innovative free-market economy. thrived since its founding in 1948 under This is a matter imbued with great In fact, Israel’s economy grew faster the most difficult circumstances. personal meaning to me, Mr. President. last year than that of the United Founded in the aftermath of the Holo- As my colleagues are aware, my father, States, Europe, the U.K. or Japan. caust as a home for Jews around the Tom Dodd, spent over a year as execu- Such growth stems in part from more world, Israel continues to be a beacon tive trial counsel in one of the most re- than 3,000 hi-tech companies now oper- and a rare outpost of freedom and de- markable court cases the world has ating in Israel. mocracy in a region that knows too lit- ever seen—the Nuremberg Trials of And, I believe, Israel is committed to tle of either. As we take the time to ac- Nazi war criminals. He stood face-to- achieving peace with its neighbors. But knowledge the importance of this anni- face with men who committed the most peace requires security, and the United versary, we should also remember terrible atrocities imaginable. Indeed, States still has a very important role those who lost their lives in the fight- they were so horrible many were con- to play to make both of these a reality. ing that coincided with the birth of vinced they had could not have taken The late Congressman Tom Lantos— this nation. Few, if any, nations have place—that is, until my father set out whom we lost at the beginning of this had such difficult births and have over- meticulously proving that they had. year—understood this perhaps better come such tremendous challenges. It would have been impossible to be than anyone. As we celebrate the anniversary of unchanged through that confrontation As the only Holocaust survivor ever one of our strongest allies, the struggle with evil, and my father was no dif- elected to the Congress, Tom knew for peace and stability throughout the ferent. I know how often he spoke of it what Israel’s existence meant for Jews Middle East continues. Peacemaking in to me. And I think it was impossible the world over, and no one advocated this region is no easy task, but we need for anyone to go through the Nurem- more strongly than he did for contin- to nurture the progress developed dur- berg Trials without wondering, at some ued U.S. support for Israel. ing the Annapolis Summit and keep point or another: The fact that the Israeli foreign min- working toward a two-state solution What if those 6 million had some- ister, Tzipi Livni, spoke at his memo- that resolves the decades of turmoil place to go; what if there had been a rial service here in the Capitol speaks Israel and its neighbors have endured. I country to take them in—no questions not only to Tom Lantos’s personal am hopeful that through a continuing asked; what if there had been a nation commitment to Israel, but also to the dialogue and diligent efforts, we will willing to stand up for them when no broader commitment of Israel and the see a breakthrough that improves trust one else did? United States to each other as nations and cooperation between all actors and Only 2 years after my father came and as people. provides a framework for a lasting back from Nuremberg, 60 years ago It is a commitment that we must not peace. today, that nation was born. So in a abandon. The United States and Israel have a small way, I share some of my past The United States must remain en- unique relationship that both Ameri- with Israel, because my father had his gaged diplomatically to ensure that cans and Israelis cherish. Today, we part in the events that proved—at the the process begun last fall in Annap- should celebrate that relationship, price of tremendous pain—the neces- olis, the most recent in a string of which is as strong and deep as ever. sity of a Jewish state. My father U.S.-led Middle East peace initiatives Mr. MARTINEZ. Mr. President, I join learned that necessity, and I learned it stretching back over 30 years, con- my colleagues in recognizing Israel’s through him. In the years since, noth- tinues to move forward. Independence Day—the day Jewish peo- ing has dampened the force of that les- We must work with other countries ple around the world rejoiced after gen- son. How could I forget? and the United Nations to prevent Iran erations of political and religious per- For nearly 60 years America and from gaining the ability to develop nu- secution. Exactly 11 minutes after Israel have been two nations that can clear weapons that could threaten Israel’s first Prime Minister, David- look across the gulf of history and Israel’s security. Ben Gurion, announced the nation’s space and language, and still see, in We must provide appropriate assist- independence, the United States be- each other, themselves. That enduring ance to the Palestinian Authority to came the first nation in the world to bond is what we celebrate today, Mr. enable it to secure its own territory recognize it. President. and strengthen its democratic institu- Since that time, Israel and the Mr. DURBIN. Mr. President, I am tions. United States have forged a friendship pleased today to speak on the 60th an- And we must find a way to stop weap- based on shared ideals and common niversary of the founding of the State ons from making their way into the values—a commitment to political and

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3946 CONGRESSIONAL RECORD — SENATE May 8, 2008 religious freedom, the rule of law, civilization.’’ This special partnership for being our ally during trying times democratic governance, and the preser- which began with Israel’s creation has and a friend upon whom we can always vation of individual rights. During my been repeatedly tested since 1948. The count. first official trip abroad as Senator, I United States has been steadfast in our Mr. President, I yield the floor, and I traveled to Israel and saw firsthand the commitment to helping the people of suggest the absence of a quorum. sacrifices Israeli people make to pro- Israel develop their own economy and The ACTING PRESIDENT pro tem- tect these principles. This visit helped secure their own peace. We have helped pore. The clerk will call the roll. me better understand the urgent need give them the time that their founding The assistant legislative clerk pro- for sustainable peace in the Middle fathers knew was needed to secure ceeded to call the roll. East and Israel’s vulnerability within their future. Mr. DODD. Mr. President, I ask unan- the region. A decade ago, in celebration of imous consent that the order for the The United States shares Israel’s de- Israel’s 50th anniversary, I traveled quorum call be rescinded. sire to protect their thriving democ- there for an international conference of The ACTING PRESIDENT pro tem- racy, and we honor our commitment by Jewish legislators from around the pore. Without objection, it is so or- supporting security efforts in Israel. world. In our discussions, I saw then dered. Since 1948, Israel has been a reliable that the philosophy that was embraced Mr. DODD. Mr. President, may I in- and steadfast ally to the United States, by Ben-Gurion and other visionary quire what is the business before the and our support helps to ensure the se- leaders helped Israel become a dynamic Senate? curity of its territory and citizens. A democracy with a thriving economy. In f strong and healthy relationship with the decade since that conference, Israel CONCLUSION OF MORNING Israel is critical to the endurance of de- has come within a few breaths of a BUSINESS mocracy in the greater Middle East peace agreement and also experienced and the United States will continue to episode after episode of violence car- The ACTING PRESIDENT pro tem- stand with Israel to ensure its survival, ried out against its civilians. Still, pore. Morning business is closed. peace and prosperity. Israel’s faith and fortitude remain as f I extend my greetings to all those strong today as they were when the FLOOD INSURANCE REFORM AND taking part in celebrations to mark dream was realized six decades ago. MODERNIZATION ACT OF 2007 this historic week for Israel. In my In recognition of Israel’s remarkable home State of Florida, the home to history, I was pleased to be a cosponsor The ACTING PRESIDENT pro tem- thousands of individuals of Jewish de- of S. Res. 522, which the Senate unani- pore. Under the previous order, the scent, today is especially important. It mously passed late last month. The Senate will resume consideration of S. marks the day a permanent home was resolution acknowledges the 60th anni- 2284, which the clerk will report. established for a people who suffered versary of the founding of the State of The assistant legislative clerk read tremendously for generations because Israel and reaffirms the bonds of as follows: of their ethnicity and religious beliefs. friendship and cooperation between the A bill (S. 2284) to amend the National So during this momentous time, I United States and Israel. This is a fit- Flood Insurance Act of 1968, to restore the fi- offer the people of Israel and its many nancial solvency of the flood insurance fund, ting tribute to Israel’s past, and we all and for other purposes. friends around the world my best wish- hope that our nations’ mutual goodwill es and the hope for continued pros- augurs well for future positive and Pending: perity. peaceful developments in Israel, in the Dodd/Shelby amendment No. 4707, in the Mr. LEVIN. Mr. President, the 2000 Middle East and around the world. nature of a substitute. year search for a Jewish homeland con- McConnell amendment No. 4720 (to the text Mr. BOND. Mr. President, I rise of the bill proposed to be stricken by amend- cluded on May 14, 1948, with the dec- today joining my colleagues in con- ment No. 4707), of a perfecting nature. laration of an independent State of gratulating our friends in Israel as Allard amendment No. 4721 (to amendment Israel. But, the birth of Israel on that they celebrate the 60th anniversary of No. 4720), of a perfecting nature. day was far from easy. Prime Minister their independence and modern-day Landrieu/Nelson (FL) modified amendment David Ben-Gurion made his first radio founding. No. 4706 (to amendment No. 4707), to improve broadcast the following day from an air Sixty years ago, Missouri’s own the Office of the Flood Insurance Advocate. raid shelter as the precarious new na- President Harry S. Truman signed the Nelson (FL) amendment No. 4709 (to tion came under attack. amendment No. 4707), to establish a National telegram making the United States the Catastrophe Risks Consortium and a Na- Even as a war was being launched first Nation on the Earth to recognize tional Homeowners’ Insurance Stabilization against their young nation, Israel’s officially the State of Israel. Since Program. founding father took the time to re- that time, Israel and the United States DeMint amendment No. 4711 (to amend- mind the first citizens of Israel what have stood side by side on many issues ment No. 4707), to require the Director to had been accomplished and what it and have shared common bonds and conduct a study on the impact, effectiveness, would take to defend their dream. Ben- values that unite us still today. and feasibility of amending section 1361 of Gurion said, ‘‘whatever we have I daresay that no country has faced the National Flood Insurance Act of 1968 to achieved is the result of the efforts of such adversity and strife during such a include widely used and nationally recog- nized building codes as part of the flood plain earlier generations no less than our short period of time. Our staunchest management criteria developed under such own. It is also the result of an unwav- ally in the region has persevered section. ering fidelity to our precious heritage, against enemy invasions, random ter- DeMint modified amendment No. 4710 (to the heritage of a small nation that has ror attacks, and saber rattling amendment No. 4707), to end the premium suffered much, but at the same time throughout its short existence and has subsidy for any property purchased after the has won for itself a special place in the grown stronger as a result. date of enactment of this act. history of mankind because of its spir- As a Member of this body, I have The ACTING PRESIDENT pro tem- it, faith, and vision.’’ been proud to support joint U.S. and pore. The Senator from Connecticut. The United States has played a crit- Israeli programs aimed at strength- Mr. DODD. Mr. President, I wish to ical role in the development of Israel ening our mutual defense and coopera- inform my colleagues we are open for over the past 60 years. President Harry tion. We are engaged in a war against business. I know there are amendments S. Truman, the first head of state to a common enemy that seeks to further that Members have they would like to grant Israel diplomatic recognition, ex- its agenda through suicide bombings, be considered. I am more than happy, pressed its special place in the hearts the targeting of innocents, and the de- with my colleague, the ranking mem- of Americans as he declared, ‘‘I had struction of the civilized world. The ber, Senator SHELBY, to try to consider faith in Israel before it was established, United States and Israel recognize that those amendments and deal with them and I have faith in it now. I believe it without freedom, respect for human expeditiously. has a glorious future before it—not just rights, and liberty, we are lost. Last evening, we entered a unani- another sovereign nation, but as an Today, I congratulate and offer my mous consent agreement which re- embodiment of the great ideals of our sincere thanks to the people of Israel quires that all amendments be offered,

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3947 debated, and voted on by the close of Disaster Relief and Emergency Assistance So this is simply saying: OK, here is business today. The close of business Act (42 U.S.C. 5121 et seq.) or the Small Busi- the law. You have a federally backed today can occur any time between now ness Act (15 U.S.C. 631 et seq.) relating to mortgage. Your mortgagor is supposed and midnight. I suspect most Members, damage to a property located in a 100-year to require that—as a matter of fact, it floodplain caused by flooding, unless prior to knowing there may not be any votes such flooding that person purchased and was fixed in 1994, I believe, that if you tomorrow—I forget exactly what the maintained flood insurance for that property do not, they would. What we have seen leader said about that. I think there is under the national flood insurance program in the last disasters is the owner did a possibility of no votes tomorrow de- established under chapter I of the National not, and the mortgage backer did not. pending on the schedule and agenda. If Flood Insurance Act of 1968 (42 U.S.C. 4011 et Consequently, we had a large number that is the case, if we deal with these seq.). of people who had no flood insurance. amendments between now and the Mr. COBURN. First of all, let me Now, all this amendment says is, OK, early part of the afternoon, we can compliment the chairman and ranking we are putting you on notice right now, complete the business of this bill until member on this bill. They have made if you have a federally backed mort- next week when we will have votes on some tremendous strides in trying to gage and you are in a flood plain zone energy issues before final passage of fix this program. The one thing we and you do not have flood insurance, the flood insurance bill. have not done is we have not asked you do not get the disaster relief. You Again, I am willing and anxious to people in this country, who are in do not get the grant. You do not get consider the amendments. I know sev- flood-prone areas, to actually be re- what everybody who follows the rules eral people have amendments. They of- sponsible. We are going to get about $17 gets. fered some of them last evening and de- billion and charge it to our grandkids The problem with not accepting this bated them to some degree. So we are because we have to get rid of some debt amendment is we will undermine the prepared to enter into a little more de- because the insurance program had not rest of the flood insurance program, bate and get to some votes. My idea is, done in the past what we intended it to the very good work that the chairman to satisfy the convenience of Members, do. I believe you have fairly well fixed and ranking member did on this bill, to try to consider three or four of these that for the future—my hope is that because if there is no consequence to amendments and then hold a period of you have. I am not convinced of that not following the law, not buying in- 45 minutes or so to vote on three or yet. surance, why will anybody buy the in- four items at a time rather than bring What this amendment does is re- surance? In other words, if we are still Members over every half hour for a 15- quires FEMA and the Small Business going to pony up the money, what is minute vote. We will try to deal with Administration to withhold any Fed- the incentive to get them to do that? I several amendments and then have a eral flood disaster payments and assist- know the chairman and the ranking period of voting before considering the ance to people who have not purchased member are concerned about that. second tranche of issues. flood insurance. These are people who Some statistics are real important. I know Senator SHELBY is in the vi- reside in a 100-year flood plain zone, On the repetitive loss properties, what cinity. We are here to entertain these meaning that catastrophic flooding is we know is that 1 percent of the prop- proposals. expected to occur once every 100 years. erties in this country over the last 15 Mr. President, I suggest the absence These are known as special flood haz- years account for about 34 percent of of a quorum. ard areas. all of the expenditures. In other words, The ACTING PRESIDENT pro tem- Owners of properties in these flood- they have been damaged time and time pore. The clerk will call the roll. prone areas are already required by law again. And the chairman and the rank- The bill clerk proceeded to call the to have flood insurance. Yet what we ing member have done a good job in roll. have seen is, time and time again, they terms of addressing how we fix that in Mr. COBURN. Mr. President, I ask do not have it. So, in effect, even the outyears. But when one-third of unanimous consent the order for the though there is a requirement for flood the money goes for 1 percent of the quorum call be rescinded. insurance to be there, they do not have homes, something is very wrong. The PRESIDING OFFICER (Mr. it, so the cost, in terms of disasters, All this amendment is designed to do BROWN). Without objection, it is so or- goes up for the Federal Government. is to bring them forward so we lessen dered. The whole purpose behind this bill in this amount. More than 50,000 of these Mr. COBURN. What is the pending the first place, when it was first initi- repetitive loss properties have flood business of the Senate? ated, was to lessen the cost of the coverage right now but 61,000 do not; The PRESIDING OFFICER. Amend- American taxpayer in terms of disas- 61,000 of the repetitive loss properties ment No. 4710 to S. 2284. ters so owners of properties in these have no flood insurance right now. AMENDMENT NO. 4716 TO AMENDMENT NO. 4707 flood-prone areas are required by law So how do we make them do it? Mr. COBURN. I ask unanimous con- to purchase flood insurance if they Where is the teeth to make them do it, sent that amendment be set aside and have a federally backed loan. This other than to know that next time, un- amendment 4716 be called up. amendment would simply ensure that less they have flood insurance, they are The PRESIDING OFFICER. Without the law is enforced. not going to get the benefit the rest of objection, it is so ordered. The clerk I know this is a hard amendment be- the American taxpayers get in terms of will report. cause what we think about is what helping them out of a jam. Ultimately, The bill clerk read as follows: about those bad actors, what about what this does is it incentivizes us to those who do not—what we are doing to have people take risks that would not The Senator from Oklahoma [Mr. COBURN] proposes an amendment numbered 4716 to them. But actually we ought to think otherwise take risks because they amendment No. 4707. in the positive, that if, in fact, you are know we have their back. All this Mr. COBURN. I ask unanimous con- supposed to have flood insurance and amendment says is, be an adult; par- sent the reading of the amendment be you do not, how do we ever force every- ticipate in carrying some of the risk. dispensed with. body to do that unless there is a con- So when over 50 percent of the repet- The PRESIDING OFFICER. Without sequence? The consequence ought to itive loss properties have no flood in- objection, it is so ordered. be, if you did not follow the rules of surance, I would like to know how we The amendment is as follows: purchasing flood insurance when you are going to get them to get it under lived in a 100-year flood plain zone, a this bill if there is no teeth to make (Purpose: To require persons located in flood prone areas to hold flood insurance as a high-risk area, then you are asking the them do it. condition for receiving federal disaster as- rest of the taxpayers not only to re- Now, I have every intention, as I sistance) build your home but to also give you have spoken to the chairman and the At the appropriate place, insert the fol- the benefit of not paying a premium on ranking member, of withdrawing this lowing: flood insurance. Those people in those amendment. But my hope would be SEC. lll. DISASTER ASSISTANCE. areas are actually taking advantage of that in conference you would address No person shall be eligible to receive dis- the rest of the American taxpayers if, this incentive issue because I believe aster assistance under the Robert T. Stafford in fact, they do not follow the law. right now there is a large incentive not

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3948 CONGRESSIONAL RECORD — SENATE May 8, 2008 to insure their property because we I yield the floor. notice and pay it and then add to it. have their back and there is no hard Mr. COBURN. Mr. President, I sug- But it obviously was not enough teeth penalty to do that. gest the absence of a quorum. to get us up to where we need to be. So If in fact I have a home and it is one The PRESIDING OFFICER. The I think we need something stronger of the repetitive loss properties and I clerk will call the roll. than that. do not buy flood insurance, we have a The bill clerk proceeded to call the Overall—and this is no reflection on hurricane or a storm and it is damaged roll. the good work that has been done on and I know I can still get it fixed, why Mr. DODD. Mr. President, I ask unan- this bill but we have to ask ourselves— am I going to buy the flood insurance? imous consent that the order for the we are talking about $30 billion with Especially, let’s say, I do not have a quorum call be rescinded. this bill. That is going to actually go loan on it. Let’s say I am down there. The PRESIDING OFFICER. Without against the Treasury. We are going to I am in a very high risk area. I do not objection, it is so ordered. have $17 billion that we are going to have any loan on it and, to me, I know Mr. DODD. Mr. President, in response kiss off. We are going to say the people if I get a flood, no problem; the Govern- to Senator COBURN’s earlier comments, who are living in these flood-prone ment is going to back me up. I thank him for his courtesy in with- areas, because their insurance did not So what we are doing is sending a drawing the amendment. He is raising truly reflect—we did not have it spread signal to the people basically who have a very legitimate issue about how we broadly enough, $17 billion of it we can- no mortgage: The rest of the American get greater compliance, as Senator not pay back, so we are going to for- people are going to insure you for your SHELBY pointed out, and achieve great- give that. flood. And I do not think that is right. er actuarial soundness in a program Well, what does forgiving that mean? I will ask unanimous consent to that is in desperate need of that. What that means is we are going to withdraw the amendment. I think the The bill does something else. In fact, take the money from the Treasury, we amendment would markedly strength- we voted on it last evening. I believe are not going to charge it to the Na- en what this bill is trying to accom- Senator LANDRIEU and Senator DORGAN tional Flood Insurance Program, but plish. My hope would be that in con- offered an amendment that would have someone is going to have to pay that ference, if you do not like my lan- stripped out the mandatory require- off. And who is going to pay that off? It guage, you at least put something into ments of people being required to pay is going to be our kids. And there is al- the bill that will have some teeth that premiums if they live in these high- most $9 billion in interest that is going forces good behavior and forces those risk areas. That amendment was de- to be not paid off, so we are going to who own the properties to actually feated pretty soundly here. It is less charge that to our kids. Then there is have some responsibility for the prop- than a dollar a day, about $316, I think, another $3 billion still, I understand, to erties. I am not against us helping to to a maximum of $350 a year under our come from the Katrina-Rita-related create an insurance market. I am not bill for about 350,000 dollars’ worth of storms in terms of payments that are sure this is the best way to do it. But coverage: $250,000 for the property, also going out. we have certainly made big strides to $100,000 for contents. So what we are going to have is $30 improve the bill. The House bill actually goes out a bit billion, because the program was not AMENDMENT NO. 4716 WITHDRAWN higher. Senator VITTER wanted to raise actuarially sound in the past, that now I ask unanimous consent to withdraw that number. Senator SHELBY and I op- we are saying to our kids and the amendment. posed that amendment. I am not un- grandkids we are going to make actu- The PRESIDING OFFICER. Without arially sound, and they are going to sympathetic to Senator VITTER’s sug- objection, it is so ordered. gestion in certain high-cost areas that pay. The amendment (No. 4716) was with- So what we are doing with this bill— $250,000 ought to be a bit higher. drawn. and, again, it is not an indictment. You But the point Senator COBURN is The PRESIDING OFFICER. The Sen- made a lot of headway, but there has to making is that we want to get people ator from Alabama is recognized. be another way to fix this rather than here to contribute. We have 25 percent Mr. SHELBY. Mr. President, I want charge it to our kids. So when you take of the claims that are coming from to respond to the Senator from Okla- this $30 billion, on top of the 10 we have these risky areas where only 1 percent homa and commend him for his efforts now and the $74 trillion that is coming, of policies are actually being paid. So in this area. we have a significant debt in terms of one out of every four dollars that is What Senator DODD and I and other being fair to the next generation. This Members, including the Presiding Offi- going out for coverage under the flood bill underlies and forgives all the debt cer at the moment, who is involved in insurance program is in these areas, to the Treasury, and it translates into banking issues and insurance, and so and yet less than 1 percent of the pre- roughly $30.2 billion. That is how poor- forth, know is that this flood insurance miums are being paid out of those ly the program worked in the past. program is bankrupt, as does the Sen- areas. Again, I think we have made major ator from Oklahoma. It is not working. So, clearly, if you are going to be ac- improvements to the bill. But I believe And what we are trying to do is move tuarially sound, you get that many it is important enough for us to vote it toward an actuarially sound basis. claims out of that area, you have to on whether we want to send another $30 The Senator’s suggestion is some- get more compliance. How do you do billion toward our kids rather than thing I think we ought to consider as that? Our bill does not go as far as Sen- make people who have homes in flood- we move along down the road because ator COBURN’s does, but in our bill we prone areas who are getting the benefit we want to make sure nobody beats the require, as we do under a lot of similar from it pay for a portion of the cost. system. In other words, the more peo- areas, that the banks be required to Mr. President, I make a point of ple who are involved in the flood insur- collect these premiums, in fact, even order that the substitute amendment ance program, proper mapping is going hold them in escrow so we have a bet- violates section 201 of S. Con. Res 21 of to mean lower premiums to everybody. ter assurance that we are going to get the 110th Congress and ask for the yeas And the problem, in the long run, as we a lot more compliance with that ap- and nays associated with that, accord- have catastrophes, tornados, hurri- proach. ing to however the chairman would canes, earthquakes—well, in this case But I am certainly sympathetic to like to schedule votes. floods and water—that the insurance the goals of ensuring that we get as I know he will make a motion to would take care of it rather than much compliance as possible, and how waive the point of order. That is ex- thinking, as the Senator from Okla- you do that is a legitimate debate. I pected. But I would like to have a vote homa says: Well, I do not have to in- appreciate his raising the issue. on that, if I could. sure you; the Government, the tax- The PRESIDING OFFICER. The Sen- Mr. DODD. Mr. President, pursuant payer, the people will take care of me ator from Oklahoma. to section 904 of the Congressional in the end. Mr. COBURN. Mr. President, I thank Budget Act of 1974, I move to waive the I think that is what we are trying to Senator DODD. I think when you fixed applicable sections of that act for the prevent. I think the Senator from this in 1994 or 1997 is when you required consideration of the pending amend- Oklahoma has a very good point. the banks on the mortgage to have a ment, and I ask for the yeas and nays.

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3949 The PRESIDING OFFICER. Is there a I thank the chairman and ranking row from the Federal Government to sufficient second? member for taking two of my amend- meet that $17 billion worth of obliga- There appears to be a sufficient sec- ments, one a study on reinsurance. The tions after the storms of 2005, which ond. reinsurance we have right now is the devastated a good part of the country. The yeas and nays are ordered. American taxpayer. That is who is At the appropriate time, we will have Mr. DODD. I ask unanimous consent going to do the reinsurance this time a vote on the Senator’s motion. In the that the vote on the motion to waive of $30 billion. I am appreciative that meantime, we have some other amend- the Budget Act with respect to the they considered this and accepted it. ments that I think are coming. I know Coburn budget point of order occur at I yield the floor. Senator NELSON and Senator DEMINT 12 noon today, with 2 minutes of debate The PRESIDING OFFICER. The Sen- and others have some amendments. I prior to the vote equally divided and ator from Connecticut. am happy to consider those as soon as controlled by myself and Senator Mr. DODD. Mr. President, I thank they come over. COBURN or our designees. the Senator. Let me underscore the The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. Without point that, some 23 years ago, I was a ator from Oklahoma. objection, it is so ordered. new Member of this institution sitting Mr. COBURN. I want the record to Mr. COBURN. I would like to make in that last chair over in the corner, show I voted against the last supple- one more point. Politics is politics, but and I offered a pay-as-you-go budget. I mental because it was not paid for. No. in the realm of politics the long term is think I got 24 votes in 1983 or 1984. I 2, it had $27 billion of extraneous what is getting ready to happen in this have strong feelings about whether we spending that was not paid for either country because we are on an will be accountable and whether we that was offered by the Appropriations unsustainable course. I believe we have pay for what we want to do. My col- Committee. It has to start somewhere. to be guardians for the future. And I league from Oklahoma certainly raises I am OK with it starting with me. I believe in waiving the pay-go rules we a point I have raised for as long as I don’t earmark anything back to Okla- are not doing that; that we are not a have been here and tried legislatively homa. I look at every appropriations guardian for the future. to insist upon some accountability in bill and see if it is wise. So con- If you think about $30 billion, you how we do things. With this program, sequently, I vote for few appropriations are asking every person in this country obviously the problem we are in is by bills because they are not wise, with this year to pay an extra $100 because attaching these additional costs onto the waste that is in the Federal Gov- this program was not funded and ar- the premium cost today, we make it ernment. ranged properly. prohibitive for a lot of people. So we One final point. According to GAO, What we also ought to consider is were faced with a choice which was not IGs, and the Congressional Research making sure we never do this again. one I would have preferred. But we Service, we have $300 billion of waste a And I would hope that when and if this have ourselves in a position in this year in the Federal Government. The budget point of order is waived the country today where we are spending Congress didn’t do anything about it. chairman and ranking member will put almost that amount of money every We have plenty of ways to pay for the something in the bill that prohibits us month on the conflict in Iraq, and we war, pay for this, and do other things, if we do the hard work of oversight and from going back and ever waiving debt are not paying for it, something Harry make the hard choices about for this program again. Truman would not have tolerated. In prioritizing what is important. But we He wants it actuarially sound, I know the war in Korea, he said we would go find that very difficult to do as a body. that. I know the ranking member to Korea provided the American tax- I am worried that we find that because wants it actuarially sound. But it is payer was willing to pay for it. truly unfair, when we spend $28,500 per Every 8 weeks we are accumulating a we are not thinking long term. We are household at the Federal Government debt and passing it on to my 3-year-old. thinking short term. I yield the floor and suggest the ab- level and the median income in this The Senator knows I have young chil- country is $42,000 and we are already sence of a quorum. dren. Every 8 weeks we are asking my The PRESIDING OFFICER. The spending 70 percent of that at the Fed- daughter to assume the financial re- clerk will call the roll. eral Government level and a third of it sponsibility of this conflict. In addition The bill clerk proceeded to call the we are not paying for, we are bor- to this program, we are trying to make roll. rowing from our children, to add on an- a difference in people’s lives, where Mr. DODD. I ask unanimous consent other $30 billion. What we are talking they may lose their homes and their that the order for the quorum call be about is opportunity. We don’t want to life’s possessions. That is certainly one rescinded. be tough enough now to not take op- I would like to see us account for, but The PRESIDING OFFICER. Without portunity away from our kids. So the we are facing a situation today where I objection, it is so ordered. choice is, can we have what we want have to try and move this along. But I Mr. DODD. Mr. President, I made now and it not hurt our children. The would hope that on a whole host of this point about an hour ago. We all fact is, we can’t. We are hurting our these issues, where we are talking are familiar with what happens toward kids when we borrow, when we forgive about deficit financing or financing the end of the week here. I know Mem- this money. What we should be charg- things without paying for them, that bers are asking me what time we will ing this money to is to the people who we would apply the same standards so be adjourning. That is a leadership de- have benefited from the coverage. That we have this kind of uniformity to our cision, obviously. But we are required is who ought to be paying for it. That concerns. And certainly, the $2 billion now, under the unanimous consent is who got the flood insurance at a every week, the $12 billion every agreement of last evening, that all falsely low rate. My hope is that we month, the $24 to $30 billion every 2 amendments will be considered by the think long term, not short term. I months is another example of what close of business today. As I pointed know you have done that to a great ex- happens when we ask the American out earlier, that close of business could tent in the bill. But my hope is that taxpayer in the future to assume a re- occur at any point between now and somehow when you are in conference, sponsibility. It is a legitimate point midnight. But I suspect most Members that you might put some type of prohi- the Senator raises. I identify with it. are making plans to probably head bition of ever waiving the debt again, In my tenure, I have tried to do some- back to their respective States for to force the program to always be actu- thing about it. Hopefully, we have done Mother’s Day weekend sometime late arially sound. If we could do that, we that, Senator SHELBY and I. this afternoon or early evening. If you would not ever get to this point again. I appreciate his kind comments have amendments on this bill, I urge I know the chairman doesn’t want us about our effort in this bill to put this you to come to the floor and offer to get to where we are waiving this program on the kind of footing that them. Coming over at 3 o’clock, there debt again, which will force the flood never causes us to come back here is no guarantee that you are going to insurance program to be on the same again under similar circumstances and have the opportunity to make the case footing as every other insurance com- make a similar request for excusing a on behalf of the proposal, to the extent pany. responsibility that FEMA had to bor- you would like.

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3950 CONGRESSIONAL RECORD — SENATE May 8, 2008 I urge Members on both sides to come solutely critical, and to put it on a Sessions Stabenow Whitehouse to the floor. I appreciate the fact that sound actuarial footing and, by doing Shelby Stevens Wicker Smith Tester Wyden last evening several did make their so, move us forward. We can’t do that Snowe Vitter case, and we are scheduling votes for if we don’t have an excuse, if you will, Specter Webb early this afternoon on those matters. on this debt that is out there today. We NAYS—26 In the meantime, I would like to line have raised the cost of premiums to a Barrasso Domenici Isakson up other votes on these matters so we prohibitive level. Brownback Dorgan Kyl could conclude work on this bill at a So I am moving to waive this point of Burr Ensign Lincoln reasonable hour this afternoon that order the Senator from Oklahoma is Chambliss Enzi McConnell Coburn Feingold would allow Members to meet their making, with the full understanding Pryor Conrad Graham Sununu travel obligations. In the absence of that it is a legitimate point he is mak- Craig Grassley Thune that, we may be here until very late ing. But if we are going to succeed with Crapo Gregg Voinovich this evening, which I know will throw this program and get it done, we can’t DeMint Inhofe a monkey wrench into people’s plans. do otherwise. We will be stuck with a NOT VOTING—4 We are here. We have been here. We program that will be far too costly. Clinton Obama will be here. But we have been in a With that, I urge my colleagues to McCain Warner quorum call waiting for Members to support us on the motion to waive. The PRESIDING OFFICER. On this come over with their ideas. Coming The PRESIDING OFFICER. The Sen- vote, the yeas are 70 and the nays are around 4 or 5 this afternoon and won- ator from Oklahoma is recognized. 26. Three-fifths of the Senate duly cho- dering whether we are going to leave 15 Mr. COBURN. Mr. President, this is a sen and sworn having voted in the af- minutes later is not going to happen. I great choice. We can prove to the firmative, the motion is agreed to. urge Members now to be here and make American people we either really care Mr. DODD. Mr. President, I move to their case or let us know that you about the budget or not. This violates reconsider the vote and I move to lay don’t intend to offer the amendment, pay-go rules. We shouldn’t send $30 bil- that motion on the table. in which case we can clear the decks lion to our grandkids. We ought to The motion to lay on the table was and get to the few votes we have re- take it from some of the excess we agreed to. maining and move on. One way or the have today. The PRESIDING OFFICER. The Sen- other, we are happy to accept. I agree Senator DODD and Senator ator from Nevada is recognized. I suggest the absence of a quorum. SHELBY have done a good job on this, AMENDMENT NO. 4734 The PRESIDING OFFICER. The but I don’t think our grandchildren Mr. ENSIGN. Mr. President, I send an clerk will call the roll. ought to pay because we designed a amendment to the desk and ask unani- The bill clerk proceeded to call the program in 1977 and modified it in 1994 mous consent that the pending amend- roll. and it still doesn’t work and then have ment be set aside. Mr. NELSON of Florida. Mr. Presi- them pay $40 billion. We ought to en- The PRESIDING OFFICER. Is there dent, I ask unanimous consent that the force the pay-go rules, and we ought to objection? order for the quorum call be rescinded. come up with another way to pay for Without objection, it is so ordered. The PRESIDING OFFICER. Without this money. The clerk will report. objection, it is so ordered. I thank the Chair. The assistant legislative clerk read AMENDMENT NO. 4709 WITHDRAWN I yield the floor. as follows: Mr. NELSON of Florida. Mr. Presi- The PRESIDING OFFICER. The The Senator from Nevada [Mr. ENSIGN], for dent, I ask unanimous consent to with- question is on agreeing to the motion himself and Mr. REID, proposes an amend- draw amendment No. 4709. to waive the point of order under sec- ment numbered 4734 to amendment No. 4707. The PRESIDING OFFICER. The tion 201 of S. Con. Res. 21 against the Mr. ENSIGN. Mr. President, I ask amendment is withdrawn. Dodd substitute amendment. unanimous consent that reading of the Mr. NELSON of Florida. Thank you, The yeas and nays are ordered. amendment be dispensed with. Mr. President. The clerk will call the roll. The PRESIDING OFFICER. Without AMENDMENT NO. 4707 The legislative clerk called the roll. objection, it is so ordered. The PRESIDING OFFICER. There Mr. DURBIN. I announce that the The amendment is as follows: will now be 2 minutes of debate equally Senator from New York (Mrs. CLINTON) (Purpose: To provide compensation to the divided on the motion to waive. and the Senator from Illinois (Mr. citizens of Fernley, Nevada damaged by Who seeks time? the failure of the Truckee Canal) OBAMA) are necessarily absent. Mr. DODD. Mr. President, I should At the appropriate place, insert the fol- Mr. KYL. The following Senators are begin. lowing: necessarily absent: the Senator from The PRESIDING OFFICER. The Sen- SEC. ll. FERNLEY FLOOD COMPENSATION. Arizona (Mr. MCCAIN) and the Senator ator from Connecticut is recognized. (a) DEFINITIONS.—In this section: Mr. DODD. Mr. President, let me from Virginia (Mr. WARNER). (1) COVERED PERSON.—The term ‘‘covered first of all say on this motion by our The PRESIDING OFFICER. Are there person’’ means a United States citizen, an colleague from Oklahoma that Senator any other Senators in the Chamber de- alien lawfully admitted for permanent resi- siring to vote? dence, the City of Fernley, Lyon County, a SHELBY and I, and I believe most of us person that is not an individual, or a school here, don’t have a philosophical dis- The yea and nays resulted—yeas 70, nays 26, as follows: district. agreement. I think we all appreciate (2) FERNLEY FLOOD.—The term ‘‘Fernley the fact that we have ourselves in a sit- [Rollcall Vote No. 121 Leg.] flood’’ means the breach of the Truckee Irri- uation where we have massive deficits YEAS—70 gation Canal on January 5, 2008, and subse- that are growing by the hour. We have Akaka Collins Leahy quent flooding of the City of Fernley, Ne- seen it in a number of areas. This is Alexander Corker Levin vada. one in which we are actually forgiving Allard Cornyn Lieberman (3) INJURED PARTY.—The term ‘‘injured Baucus Dodd Lugar party’’ means a covered person that suffered a debt. Obviously, to do so, it is going Bayh Dole Martinez damages resulting from the Fernley flood. Bennett Durbin McCaskill to require at some point for us to pay (b) COMPENSATION AND SOURCE OF FUNDS.— for this debt and obligation. Senator Biden Feinstein Menendez Bingaman Hagel Mikulski (1) COMPENSATION.—Each injured party COBURN says we ought to be doing that Bond Harkin Murkowski shall be eligible to receive from the United under the pay-go rules. As someone Boxer Hatch Murray States compensation for damages suffered as who has over the years authored, in Brown Hutchison Nelson (FL) a result of the Fernley flood. Bunning Inouye Nelson (NE) (2) SOURCE OF FUNDS.—The Director shall fact, legislation requiring pay-as-you- Byrd Johnson Reed go proposals, I am very sympathetic to compensate each injured party for damages Cantwell Kennedy Reid resulting from the Fernley flood from the Cardin Kerry Roberts this idea. I would like to see us apply permanent judgment appropriation under it more uniformly in many ways. Carper Klobuchar Rockefeller Casey Kohl Salazar section 1304 of title 31, United States Code. Senator SHELBY and I are doing our Cochran Landrieu Sanders (c) INSURANCE AND OTHER BENEFITS.—The best to take this program, which is ab- Coleman Lautenberg Schumer Director shall reduce the amount to be paid

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3951 to an injured party relating to the Fernley to offer his amendment, or talk about Mr. DODD. Mr. President, first, I flood by an amount that is equal to the total it, that would be helpful. Anybody else thank my colleague from North Da- of insurance benefits (excluding life insur- who has amendments who would like kota. I am familiar with the commu- ance benefits) or other payments or settle- to offer them—I see the Senator from nity. As my colleague will recall, at his ments of any nature relating to the Fernley flood that were paid, or will be paid, to that North Dakota. invitation, I gave the commencement injured party. Mr. DORGAN. Mr. President, I ask address at the University of North Da- (d) ACCEPTANCE OF AWARD.—The accept- the Senator from Connecticut, how kota a few years ago and arrived a day ance by a injured party of any payment many amendments are remaining on or so early. I had an opportunity to under this section shall (excluding claims re- this bill, based on what he knows at visit the mayor and actually see the lating to life insurance benefits)— this time? city that went through that remark- (1) be final and conclusive as to any claim Mr. DODD. I am glad the Senator able devastation of flood and fire, si- of that injured party relating to damages clarified that. We have about five or multaneously, in fact, and the rather suffered because of the Fernley flood; and (2) constitute a complete and full release of six, based on what I know. There will remarkable recovery and great spirit all claims of that injured party relating to be five or six votes at the most, as of that exists in that community. the Fernley flood against the United States, now. Here is what we are doing. There are the State of Nevada, Lyon County, Nevada, Mr. DORGAN. I am still trying to de- those who believe if you have any kind the City of Fernley, Nevada, and the Truck- termine whether I can successfully of a dike, dam or levee, that you should ee-Carson Irrigation District. offer an amendment. I know I have a not have to pay for flood insurance. We (e) REGULATIONS.—Not later than 90 days right to offer it, but whether it is suc- cannot tolerate that in a sense. We after the date of enactment of this Act, the cessful—— have 130 dams, levees, and dikes that Director shall promulgate and publish in the Mr. DODD. That is the Senator’s Federal Register interim final regulations to are at great risk of one kind or another carry out this section. problem. in these residual risk areas. About 25 Mr. DORGAN. Mr. President, let me Mr. ENSIGN. Mr. President, I yield percent all the claims against the flood make a point again to the Senator insurance program come out of these the floor. from Connecticut and see if there is The PRESIDING OFFICER. The Sen- residual risk areas, not the coastline. any mutual understanding on these ator from Illinois is recognized. Clearly, having dikes, levees, and dams issues. help. AMENDMENT NO. 4715, AS MODIFIED To use one example, we had a city The fact is, the reason there is a Mr. DURBIN. Mr. President, I ask that was completely evacuated in my dike, levee or dam is because it is in a unanimous consent to set aside the State by a flood 10 years ago—actually residual risk area. Anything made by pending amendment and I call up 11 years ago now. It was the largest man or nature, there is no guarantee in amendment No. 4715, as modified. evacuation of any city since the Civil perpetuity it is going to survive, even The PRESIDING OFFICER. Is there War. A city of 50,000 was completely the 250 years about which we talked. objection? evacuated because of a flood. In the What better example than Louisiana. Without objection, it is so ordered. middle of that flood, there was a fire in We spent millions of dollars on a sys- The clerk will report. downtown Grand Forks, ND. A city tem down there that didn’t work, ulti- The legislative clerk read as follows: that was flooded and evacuated was on mately. The idea of having someone The Senator from Illinois [Mr. DURBIN] fire. pay a maximum of $350,000 worth of in- proposes an amendment numbered 4715, as In the intervening 10 years, there has modified, to amendment 4707. surance—actually, the average cost is been a flood protection plan, a very ex- $316 a year. Less than a dollar a day for Mr. DURBIN. Mr. President, I ask pensive one, $416 million, built to pro- this kind of coverage is something we unanimous consent that reading of the tect that city. The residents of that feel is dispersing that risk, bringing amendment be dispensed with. city, I believe, paid 45 percent of the the cost in for the program. The PRESIDING OFFICER. Without cost of that flood protection plan. Let me say to my colleague from objection, it is so ordered. As I read title VII—I believe it is on North Dakota, he makes an interesting The amendment is as follows: page 9 of the legislation—what is being point. We are, in fact, in discussions On page 11, line 11 after the first period, in- said now is this city that has a 250-year with the other members of the com- sert the following: flood plan, that is to protect against a mittee on this very point, where you ‘‘(h) USE OF MAPS TO ESTABLISH RATES FOR 250-year flood, will be told: By the way, CERTAIN COUNTIES.— might be able to prorate, it seems to ‘‘(1) IN GENERAL.—Until such time as the you residents, yes, you paid a lot of me, some of these costs based on the updating of flood insurance rate maps under money for flood protection. It is blue quality of that dam, dike or levee. I section 19 of the Flood Modernization Act of ribbon, first rate, first class protection cannot subscribe to the notion of elimi- 2007 is completed (as determined by the dis- against a 250-year flood, but we have nating it altogether, but certainly trict engineer) for all areas located in the St. now decided you have to ante up $1 a when you have a state-of-the-art facil- Louis District of the Mississippi Valley Divi- day to buy flood insurance. ity, then as a result of that, there is sion of the Corps of Engineers, the Director They are going to ask the question: shall not— less of a risk. There still is risk. So you ‘‘(A) adjust the chargeable premium rate What is this flood protection we paid may bring down the cost of that risk. for flood insurance under this title for any for? We were told this was blue-ribbon We are negotiating about doing that type or class of property located in an area flood protection. I know you have a as a way to recognize those kinds of in that District; and 250-year flood protection levee; now we contributions. So there would be some ‘‘(B) require the purchase of flood insur- want you to buy flood insurance. prorating. ance for any type or class of property located Is there anything in the legislation Mr. DORGAN. I understand the no- in an area in that District not subject to that allows FEMA to look at this situ- tion of residual risk, and I think the such purchase requirement prior to the up- ation, here is a levee that gives 100- Senator from Connecticut will agree dating of such national flood insurance pro- year protection, here is a levee that those residual risks are different in dif- gram rate map. ferent circumstances. I am not sug- ‘‘(2) RULE OF CONSTRUCTION.—For purposes gives 250-year protection, and here is of this subsection, the term ‘area’ does not one that doesn’t give any at all? We gesting if you are behind a levee, wher- include any area (or subdivision thereof) have different kinds of insurance. ever that levee is, you shouldn’t have that has chosen not to participate in the Would FEMA be allowed to take a look to buy flood insurance. But I am sug- flood insurance program under this title as at a new state-of-the-art, blue-ribbon, gesting if you exhausted yourself and of the date of enactment of this subsection.’’. 250-year flood protection device and your community and your region pro- Mr. DODD. Mr. President, we have a say those folks don’t need to buy flood ducing a state-of-the-art flood control window here. I see Senator THUNE and insurance, they just paid a substantial plan and spent a lot of money doing so, he has the possibility of offering his portion of the cost of a significant new including your own money, and you are amendment. I think Senator BOXER flood protection device? now told you have a 250-year protec- wants to express herself on that. She I ask the Senator from Connecticut, tion, that when somebody from FEMA may be on her way over. If my col- what is his intention with respect to comes in and says, it doesn’t matter a league from South Dakota is prepared that provision of the law? bit, it is irrelevant you built that, it

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3952 CONGRESSIONAL RECORD — SENATE May 8, 2008 doesn’t matter, you are going to be re- Mr. DODD. I thank my colleague. It speculation out of those commodity quired to purchase what our friends is a very good suggestion; once again, a markets. We ought to be increasing from the committee have now en- very good suggestion. margin requirements. I know it is hard acted—if my colleague from Con- The door is open for business. If any- to do, but we ought to do that. When necticut is saying this legislation ei- one has amendments, we would like to we see this kind of speculation dam- ther will or, as we might want to have Members come over and offer the aging our country by driving up oil change it, could allow FEMA to take a amendment. In the meantime, I sug- prices and driving up gasoline prices, look at that brand new 250-year flood gest the absence of a quorum. we ought to do something about it. protection plan and say, in this cir- Mr. DORGAN. Mr. President, will the Second, we are now putting oil un- cumstance you have minimal require- Senator withhold? derground right now. We are taking ments—— Mr. DODD. Yes, I withhold. sweet light crude oil off the Gulf of Mr. DODD. I think it is a very good Mr. DORGAN. Mr. President, I ask Mexico and sticking it underground in idea and suggestion and one about for 5 minutes in morning business. something called the Strategic Petro- which I have not had a chance to get The PRESIDING OFFICER. Without leum Reserve. I think it is fine to have into a long conversation with Senator objection, it is so ordered. the Strategic Petroleum Reserve if we SHELBY. I like the concept, the idea. OIL AND GAS PRICES run into trouble. It is nice to have an Remember this. The insurance pro- Mr. DORGAN. Mr. President, I wish oil reserve. Yet, that reserve is 97 per- gram, putting aside whether you think to make a point. I don’t know yet if cent full. Still, this administration is the cost is high or low, without the in- there is a markup this afternoon of the taking up to 70,000 barrels a day, every surance program, and if things don’t Appropriations full committee. If there single day, and sticking it under- work and you lose your home, there is is, I am intending to offer a couple ground. no program of Federal disaster relief amendments to that markup. I wish to They say it doesn’t affect the price. that rebuilds your home. describe one amendment that I plan to Of course, it affects the price. We had What the insurance program does for offer, and that relates to dealing with testimony before the Energy Com- $316 a year is it gives you a chance to oil and gas prices. mittee that because it is a much more rebuild your home and the contents The price of oil is way beyond that valuable subset of oil, called sweet you lose. There is no disaster relief which is justifiable by simple supply light crude, that it has as much as a 10- program the Senator from North Da- and demand conditions. It is bouncing percent impact on the price of oil and kota and I have been a part of that pro- around like a yo-yo up around $120 and gasoline. So, of course, it affects the vides that kind of assistance to home- as much as $124 a barrel of oil. There is price. owners affected by natural disaster. no justification in the supply and de- I think it is nuts for this country to This insurance program has great mand of oil for that price. It is dam- be taking $124 barrel of oil and saying value to these people who live in these aging to the economy, and it hurts a let’s stick that underground and save areas. It is a cost but actually has a series of industries in this country. The it for a rainy day. I tell you what, it is value. I think the numbers ought to be airline industry and trucking industry a rainy day these days when you have higher than $350,000. I live in a higher are just two examples. It hurts every to pay this price at the pump. It is a rainy day these days when you see cost area. So a $250,000 home in my American as they pull up to the gas State is less than the median cost of a four, five airlines go belly up because pump to figure out where they are home. I would like to see those values they cannot afford the fuel. It is a going to get the money to pay for the go up again. I presume in North Da- rainy day these days when truckers say gasoline price. that we have to park the truck because kota $250,000 may be more a median What is happening? At the moment, a cost of a home. we can’t afford the fuel. An entire in- couple of things are happening. The idea that you are going to get for One, we have an unbelievable bubble dustry is at risk. that $316 a year $350,000 back to rebuild The fact is, we have to do something of speculation in the futures market. I that home of yours has value. I think about it. I mentioned two things, both have people say to me: That is not prorating, based on the condition of of which are tangible and real and both true. It is true. It is hard to justify the dikes and levees, makes good sense. We of which are causing this increase, at current price of oil given the physical will try to work on it. least a significant part, in my judg- Mr. DORGAN. We don’t have a prob- elements of the market today. What we ment, in the increase in the ramp-up of lem with the merit and value of flood have is people entering the commod- the price of oil and gasoline. insurance. I think the program makes ities futures market that have no in- The President believes that there is sense. We have an agreement, as it is terest in buying oil. They buy oil and not much anybody can do in the near currently written, and I hope we can sell it. They never take possession of term. This is not a time to wring our perhaps modify it in a managers’ it. They buy what they will never get hands, mop our brow, gnash our teeth amendment. On page 9, section 7, it ap- from people who never had it. They are and say there is not much anybody can pears to me FEMA would be required making money on both sides of the do. This is a time for us to try to figure to come in and say: Ah ha, you are be- transaction because they are waging. out what is happening and try to re- hind that levee; therefore, you must To put it plainly, they are gambling. spond to it. It is doing great damage to purchase this insurance. I hope what That is speculation. We have an orgy of our economy. the Senator from Connecticut intends speculation on the futures market. In the longer term, I believe that with this is that it be risk based be- We had people testify in the Senate there are things we need to do. We are cause there will clearly be a different and House that it adds $20 to $30 to a unbelievably dependent on overseas oil. risk attached to someone who has a barrel of oil. Should we sit back and We are unbelievably dependent on brand new levee system that they ex- watch a bubble develop and say, Saudi Arabia, Kuwait, Iraq and Ven- hausted themselves paying for over the ‘‘Whatever the consequences, that is ezuela. Sixty percent of our oil comes last 10 years. It is all done. They cut fine?’’ The answer is no, of course, we from offshore. As I described before and the ribbon, they celebrated, they had should not. Buy stock on margin and it others have, we stick straws in this the town band out, in fact, but they are will cost you a 50-percent margin re- planet and suck oil out of the planet. told by FEMA: That is not a factor. quirement. If you want to buy oil on Every day we suck out 85 million bar- Mr. DODD. I think we are on the margin in the futures market for crude rels of oil. One-fourth of that has to be same page. oil, then you pay 5 to 7 percent. used in this country. Mr. DORGAN. Let’s see if we can We have hedge funds neck deep in the Let me say that again. The appetite craft something between now and the futures market. We have investment of oil is this: One-fourth of all the oil end of the day. I would not offer the banks neck deep in the futures market. we pull out of the planet every day is amendment; the Senator from Con- Are they are oil experts? Do they want used in this little place called the necticut will offer it, and it represents to own oil? No, they want to speculate United States of America. Sixty per- our combined views about this issue. on oil and make money. cent we get from outside our country. I appreciate my colleague having this The fact is, it is damaging this coun- Seventy percent of it is used by vehi- colloquy. try’s economy. We ought to wring that cles. We have a lot to do.

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3953 After 32 years, we finally mandated question about that. We need to find Mr. DORGAN. I am happy to yield. an increase of 10 miles per gallon in 10 more, and we need to use less, to the Ms. KLOBUCHAR. I thank Senator years on a range of vehicles. We also extent we can. That means more pro- DORGAN for his leadership in this area. need to produce more. I and three oth- duction and more conservation. In the He was ahead of this. Before the crisis ers in this Chamber got the law meantime, when markets do not work got to the pocketbooks of Americans, changed to allow us to go into lease 181 and people are doing things that have he was predicting what has happened. in the Gulf of Mexico and finally no common sense at all, such as put- He has been proactive about this. produce more oil and gas. Frankly, we ting oil underground when oil is $120 a But can the Senator talk about the ought to open up more of the Gulf of barrel, then this Congress has a respon- strategic reserve, the petroleum re- Mexico. That is the greatest potential sibility to act. We need to get things serve? I know there is some bipartisan reserve on the Outer Continental Shelf. straight. Let’s set things right; let’s support for doing this, is that correct, I and three others introduced the legis- stand up here on the side of the Amer- for stopping putting our oil there? Mr. DORGAN. It is the case. I have lation and got it passed and opened up ican consumer and on the side of Amer- introduced legislation here in the Sen- lease 181. If you look at the Gulf of ican businesses who need this energy. ate. Fifty-one Democratic Senators, in- Mexico, California, and Alaska, and the One final point: In yesterday’s The cluding Senator OBAMA and Senator East Coast, the greatest potential re- Wall Street Journal, they wrote one of CLINTON, signed a letter to the Presi- those editorials that must make those serves are in the Gulf of Mexico. dent saying stop sticking oil under- We need to conserve more and folks grin like Cheshire cats as they sit ground for the rest of 2008. Also, a cou- produce more. We need greater effi- there with their gray suits on, behind ple of weeks ago our Republican col- ciency for all we use, and we especially horn-rimmed glasses, deciding what to league, Senator HUTCHISON, led on a need to move into renewables. write next in the Wall Street Journal letter to the White House saying, yes, I understand we have to do all of about the Senate. Did you see what we agree. We ought to stop sticking oil that. At the moment and in the short those folks did in the Senate—DORGAN, underground at this time. There were run, we have to take specific steps that SCHUMER, and others? What they did is 15 Republicans who sent that letter. will put downward pressure on prices. said we should put pressure on the Further, Senator MCCAIN said it was John Maynard Keynes said, ‘‘In the Saudis because the Saudis want to buy nuts to stick oil in the SPR while on long we are all dead.’’ That is an econo- precision weapons for their own secu- the campaign trail. When you add that mist talking. We can talk about the rity from us. We should say that maybe up, that is 67 people in the Senate. long run here, but let’s also talk about they need to be producing more oil. Of That is a veto-proof majority. the short run right now. course, the Wall Street Journal had an Ms. KLOBUCHAR. How much is it ex- What can we do to address something apoplectic seizure over that. pected to save? Is there an immediate that most Americans understand is a Here are the points. The Saudis are impact we might expect in savings per very serious problem? The issue is producing 800,000 barrels a day less gallon? price of gasoline? I am just saying this, than they did 2 years ago. It is not lost Mr. DORGAN. There are several and there are those who disagree with on them what this is doing to price. It views on that, but we know it is a lot me. Look at the commodities market is not lost on them, or it should not be, more than zero like the Administration and look at this orgy of speculation. what this is doing to our country. They assumes. We don’t know exactly what This is a bubble. Wouldn’t it be nice if are pumping 800,000 barrels a day less the savings would be. We do know this: someone had looked at that bubble as than they did 2 years ago and then they If today 70,000 barrels, especially the it built with respect to home mort- say to this administration we wish to sweet light crude—which is the most gages and home prices? We have seen a buy sophisticated weapons from the valuable subset of oil—were put back lot of bubbles. We have seen the tech United States because we have our into this marketplace, then people bubble. We have seen the bubble in strategic military concerns in our re- have testified in the Senate that it home prices. Every bubble bursts. This gion. Maybe we say to the Saudis: The could impact as much as 10 percent of one will. But in the meantime, how United States has strategic concerns in the price of oil and gasoline. many additional casualties will we see our country as well. Why are you We know it would impact the price. on the side of the road? Look at what’s pumping 800,000 barrels a day less when Some say 70,000 barrels is not very happening with American families, you could be putting more oil on the much given what is used in a day. It is American business, American indus- world market? Partnerships work both true, 70,000 barrels is not all that much, tries. How many casualties? The big in- ways. but this is sweet light crude which is tegrated oil companies go to the bank I am very concerned about arming very different. We had an economist with a ‘‘permagrin.’’ They can’t stop the Middle East. I am going to speak named Dr. Verleger testify before the smiling because they are depositing about that at some point later. But our Energy Committee and make that very our money in their bank accounts. But point to the Saudis and the point in point. This is a more important point. it is not only the big integrated oil the Middle East was simple. If you are There are plenty of Members of the companies, it is the OPEC countries. pumping 800,000 barrels a day less per Senate who have now joined on this. They are going to the bank everyday day and then demand weapons from the I was just informed the markup with our money because we recycle U.S. without reciprocating then it’s starting at 2 this afternoon has been this money to provide for a bank ac- not going to work. canceled. This is where I was going to count for the Saudis and others just That is a long statement to say it is offer this amendment, so the amend- like we do for the major integrated time for us to act. Senator REID, Sen- ment I expect to be able to offer will companies. ator KLOBUCHAR, other Members and I now wait until next week. We will get I do not think there is any justifica- have decided we are not going to sit this done. We cannot sit around and tion for this price. This Congress is here like potted plants. When some- allow things to happen. We have to prepared to act. Senator REID and oth- thing is happening in the futures mar- make things happen, good things hap- ers have joined together, and I am a ket and when something is happening pen for this country and for the econ- part of it to deal with this issue of put- to take oil off the supply to put it in omy. ting oil underground. We are going to the SPR, then we have a responsibility I yield the floor. stop it in its tracks. I introduced a bi- to act. I intend to be a significant part The PRESIDING OFFICER. The Sen- partisan bill a couple of months ago to of that. ator from Minnesota. suspension the filling of the SPR. Our If we have the markup in the Senate Ms. KLOBUCHAR. Mr. President, I entire caucus is also behind the propo- Appropriations Committee this after- ask unanimous consent to speak as in sition. We believe it’s time to begin to noon, I intend to offer a couple amend- morning business. wring this speculation out of the fu- ments at that appropriations markup. The PRESIDING OFFICER. Without tures markets and stop this insidious Unfortunately, I understand it may objection, it is so ordered. rise in oil prices. well be canceled this afternoon. RENEWABLE ENERGY While we need to move beyond oil, Ms. KLOBUCHAR. Will the Senator Ms. KLOBUCHAR. Mr. President, I right now we still need oil. There is no yield for a question? am going to speak on another topic

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3954 CONGRESSIONAL RECORD — SENATE May 8, 2008 which is somewhat related to Israel’s First, there is opportunity for con- the idea that we can create a new en- 60th anniversary. It is about energy se- sumers. ergy future for all of us. They believe curity and climate change and the po- The National Academy of Sciences in their work and are now reaping the tential economic value to our country. has estimated that American motorists benefits of the opportunity created by The way it is related to Israel is this. were able to cut their gasoline con- this new energy economy. When I vis- As we look at the fact that we spend sumption by almost 15 percent annu- ited them, they actually had me jump $600,000 a minute on foreign oil, much ally as a result of the last fuel-econ- up and down on the solar panels to of that money going to countries that omy standards that Congress enacted show that they could withstand hail we might not want to be doing business in 1975—standards that also reduced damage; I am sure they would welcome with if we had a choice, Israel, like our the emission of greenhouse gases. The the Presiding Officer from the great country, is very interested in devel- new CAFE standards that we adopted State of Montana to do that as well. oping alternative energy. If we can cut in December will not only further slow Clearly, the people at Solar Skies are our dependence on foreign oil, we will the emission of greenhouse gases—but not the only ones to understand the op- enhance our own security as well as they will also save the average con- portunity. If you look at the leading Israel’s security. sumer as much as $1,000 a year at the indicator of American investment, ven- Last winter I visited the new head- gas pump. ture capital, you will find that it quarters of Great River Energy, one of We are developing the technology to reached $2.9 billion of investments in the biggest electric co-ops in Min- take these efficiencies even further and green technologies last year, up 78 per- nesota, to talk about renewable en- they make savings at the pump even cent from a year earlier. ergy. greater. The opportunities lie not only Clean technology is not only the fast- Great River is building a new energy- in producing cheaper and renewable est growing portion of the venture cap- efficient office complex in the suburb sources of fuel, including cellulosic ital market, it is now the third largest of Maple Grove, MN. But what I re- ethanol, the next generation of ethanol category, behind only biotech and com- member best about that day is the but in making our vehicles more effi- puter software. huge wind turbine that towers over the cient. Increased efficiency is perhaps So today we have to ask ourselves, building, and the way its blades were our greatest opportunity to stretch a Does the United States want to be a rotating in the January winds. This is family’s energy dollar—$4-a-gallon leader in creating the new green tech- literally in the middle of a suburban stretches a lot further when it will nologies and the new green industries shopping mall. take your car 50 miles instead of 25. of the future or are we going to sit It might seem odd that a company The next generation of hybrid cars, as back and watch the opportunities pass would put up a wind turbine in the sub- well as the development of cars pow- us by? I am determined that we will be urbs of Minneapolis—in fact, it has be- ered by other renewable sources such a leader. come a landmark for the commuters as electricity or hydrogen, open a new As you know, this is my third speech who drive past each morning and world of opportunity for the American on climate change every week up evening. consumer; an opportunity for innova- through the debate. The first was an It might seem even more odd that an tive American companies to be at the overview, and the second one was about electric utility would erect that sym- forefront; an opportunity to reduce our leadership and the need to push this bol of green energy in front of its new environmental impact while reducing country forward, to be a world leader headquarters. our dependence on foreign oil. on this climate change issue and on But what Great River understands— Then there is electricity. If every technology. Today, we are talking and what that wind turbine symbol- American household replaced just one about the possibilities of new jobs for izes—is that clean, alternative energy light bulb with a compact fluorescent this country, for our country as a represents a huge opportunity for our bulb, the country would save $600 mil- whole. country. lion in annual energy costs, the nation This is also an opportunity to create Great River is not alone among util- would save enough energy to light an energy-secure future, to free our ity companies that can see the green more than 3 million homes for a year— country from its dependence on foreign future before us. Xcel Energy, based in and we would prevent greenhouse gas oil. We spend literally $41 million every the Twin Cities and in Colorado, al- pollution equivalent to the emissions hour on imported oil, and much of the ready gets more than 10 percent of its of more than 800,000 cars, money simply goes back to countries power from wind. It has pledged to gen- There is also opportunity for busi- that are not our friends. erate 30 percent of its electricity from ness. The Council on Foreign Relations re- renewable sources by 2025 and reduce The Safeway grocery chain decided cently studied this question, and they its carbon emissions by more than 20 recently to install solar panels on 23 of said: percent over the next 12 years. In fact, its supermarkets to provide energy for America’s dependence on imported energy Xcel was supportive of our state legis- heating, cooling and electricity. increases its strategic vulnerability and con- lature which put in place one of the They estimate that they will cut strains its ability to pursue foreign policy most aggressive renewable standards in their electricity costs by 20 percent and national security objectives. The lack of the country. and that they will remove 12.6 million sustained attention to energy issues is un- Xcel’s CEO, Dick Kelly, recently said pounds of carbon emissions every year. dercutting U.S. foreign policy and U.S. na- that Xcel intends ‘‘to push it to the General Electric, one of the biggest tional security. max. But it would be nice to have a corporations in the world, has moved But the report also concluded that a policy at the federal level, a national aggressively into what it calls ‘‘green determined conservation effort could: policy, so we all know what the rules products’’ such as energy-efficient ap- Unleash remarkable forces for innovation are.’’ pliances and components for wind tur- in this country. Entrepreneurs are seeking As we prepare to debate the land- bines. Its sales of green products have new ideas for products and services such as mark climate-change legislation that doubled since 2005 to $12 billion, and batteries, advanced oil and gas exploration will come before us in a few weeks, I the company aims for $20 billion of and production techniques and biofuels. hope we keep these two examples in green products sales by 2010. This is our By reducing our emissions of green- mind. ‘‘building a fridge to the next cen- house gases through conservation and Because here is what they show us: tury.’’ new technology, we can reduce our use Global climate change represents a In my home State, the State of Min- of imported oil and leave our country world of challenges. But it also rep- nesota, in the town of Starbuck, there in a stronger international position. resents a universe of opportunities—for is a small company called Solar Skies. This is not only wishful thinking. It American business to develop new There are just 10 employees at Solar has worked before. Conservation initia- products and technologies, for con- Skies, but those 10 people decided to tives enacted after the first OPEC oil sumers to save money on their energy take a risk, to leave their jobs, and to embargo reduced the oil intensity of bills, for America to achieve greater go to work for a place that makes solar our economy, saving our country the energy security and independence. panels. Those employees are devoted to equivalent of 15 million barrels of oil

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3955 per day. Today, a comprehensive policy propose the Green New Deal, one in country tripled the number of science to reduce greenhouse gas emissions, in- which the Government’s role is not and engineering Ph.D.s—tripled them. cluding higher fuel standards for cars funding projects, as in the original New In 1961, President Kennedy issued a and trucks, development of clean alter- Deal, but seeding basic research, pro- challenge to our Nation: Put a man on native sources of energy, and better en- viding loan guarantees where needed, the Moon by the end of the decade. We ergy efficiency standards for buildings, and setting standards and incentives answered the call. On July 20, 1969, can do this. and taxes that will spawn all kinds of what seemed impossible became reality Look at the Chevy Volt. Two years new technologies. when Neil Armstrong took that giant from now, the Chevy Volt will be avail- We are trying to do that right now leap for mankind. able for purchase. You can plug your with the wind tax credit, the renewable But the space program was not only car in, you go 30 miles, and then it tax credit, for geothermal and for solar a success because we put a man on the transitions over to fuel. In other words, and other kinds of renewable energy. I Moon before the Soviets, it also if you are driving through Montana or believe this is not all about cutting spurred countless other innovations in Minnesota and it is 10 below zero, you back or hunkering down, it is about industry. I love saying this in front of are done with your 30 miles, and it is seizing opportunity. our pages because I think they were not going to stop, it transitions over to In his words: not born when this happened. To them, fuel, and hopefully that will be alter- It’s about creating a new cornucopia of this is commonplace, but back then we native fuel. abundance for the next generation by invent- did not have these things. This is what We can cut our oil consumption by as ing a whole new industry. It’s about getting it has spurred. It spurred industries much as 35 percent by 2030—more than our best brains out of hedge funds and into and innovations such as weather sat- offsetting the oil we import from OPEC innovations that will not only give us the ellites, solar technology, digital wrist- today—just by putting in place these clean-power industrial assets to preserve our watches, ultrasound machines, laser American dream, but also give us the tech- surgery, infrared medical thermom- higher fuel economy standards for cars nologies that billions of others need to real- and developing clean alternative ize their own dreams without destroying the eters, programmable pacemakers, sat- sources of energy and better energy ef- planet. ellite TV broadcasts, high-density bat- ficiency standards for our buildings. It is about making America safer by break- teries, high-speed long distance tele- A study last year by the McKinsey ing our addiction to a fuel that is powering phone service, automatic insulin Global Institute concluded that pro- regimes deeply hostile to our values. And, fi- pumps, CAT scans, radiation-blocking jected electricity consumption in nally, it is about making America the global sunglasses, GPS devices, and the little American homes in 2020 can be reduced environmental leader, instead of a laggard. chocolate space sticks my family by more than one-third if high-effi- Oponents of the Lieberman-Warner would take when we went on camping ciency measures were adopted nation- climate change bill say we cannot do trips in the 1970s. That all came out be- wide, including lightbulbs, water heat- this because it will somehow cripple cause we had a President who said we ers, kitchen appliances, room-insula- our economy. I say we cannot afford have a national goal, we are all part of tion materials, and standby power. But not to enact climate change legislation the same Nation, and we are going to here is what is interesting. The report because global warming will cripple reach the goal. We can do the same warned that market forces alone, even our economy. thing with climate change and energy with higher energy prices, would not be A recent economic study commis- independence. sufficient to make the most of these sioned by the Pew Center on Global Today, it is not a Russian satellite energy-efficient technologies. What is Climate Change concludes that, under streaming across our skies that should required is leadership from Wash- at least one scenario, higher tempera- galvanize our Nation into action. It is ington, leadership from this Chamber, tures could cut more than $100 billion the multiplying smokestacks in China, leadership from the White House, a new off American economic output over the it is the receding glaciers in Greenland national strategy to wean the country next century, largely because of dam- and Antarctica, and it is the rapidly from fossil fuels, to reduce our emis- age to agriculture, forestry, and com- rising global temperatures, and it is sions of greenhouse gases, and to set mercial fishing. being leapfrogged by countries like the stage for this new energy economy. Now, look at this. The temperature Brazil that are now fuel independent This is the heart of the climate in the last 100 years is up 1 degree. because their Government put in place change legislation that will come be- That does not sound like much until a policy for alternative biofuels. fore us in the next few weeks: a strat- you realize it has gone up only 5 de- But just as sputnik sparked a new egy to cap and reduce greenhouse gas grees since the height of the ice age. age of prosperity and opportunity, emissions, then use a cap-and-trade Our EPA, using data, well-founded sci- these trends can lead to opportunities system so that the private sector entific data, projects that tempera- for the strengthening of our economy achieves these reductions in the most tures in the next century will go up 3 and renewing our leadership in the efficient way possible. The market is to 8 degrees. world. In doing so, we will create a bet- ready, but it needs leadership from us. So this idea that we can lose $100 bil- ter economy for the next generation by Last year, Minnesota’s own Tom lion off American economic output developing whole new industries, which Friedman had a cover story in the New over the next century is not some far- will not only help us preserve our York Times Magazine, ‘‘The Power of flung idea, it is based on scientific re- American leadership in the world but Green.’’ It should be required reading search. Unless we can confront this will also help to deploy technologies for anyone who cares not only about problem and confront it now, those billions of others need to realize their the future of our environment but also costs will simply go higher and higher. own dreams without destroying the our economic future and our future na- We will also miss the opportunity for planet. tional security. new jobs, for new products and tech- I believe we have the responsibility In the article, Tom Friedman asks: nologies, new consumer savings, and a to confront a grave threat to our envi- How do our kids compete in a flatter more responsible climate change pol- ronment and our health. I believe we world? How do they thrive in a warmer icy. It is a big challenge. But meeting have the opportunity to do a great world? How do they survive in a more challenges is what our country does service to the people of this country. I dangerous world? best. Just look at history. believe that before us now we have the The answer is, in making the most of When the space race began with the opportunity to make our economy the economic and technological oppor- launch of sputnik in October 1957, stronger and more efficient. But it is tunities to reduce our dependence on American citizens listened with indig- rare that we have the opportunity to fossil fuels, and the greenhouse gas pol- nation and fear as the first manmade accomplish all three at once, to accom- lution that comes from it, we do bet- satellite, a Soviet satellite, beeped its plish so many good things in one bold ter. way around the Earth. Yet it inspired stroke. This rare opportunity will Friedman said that clean energy our Nation and its universities to make come before us in a few weeks when we technology is going to be the next a historic investment in math and take up the landmark Lieberman-War- great global industry. He went on to science education. Within a decade, our ner bill to address the challenge of

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3956 CONGRESSIONAL RECORD — SENATE May 8, 2008 global climate change. We must seize badly hurt, particularly smaller cities, goods. It is similar with the Colombia that opportunity. and they simply cannot afford to hire trade agreement; it is also about this Mr. President, I ask unanimous con- as many police and firemen and teach- size. If they were free-trade agree- sent that at 2 p.m. today, the Senate ers. ments, you could have written them on resume the DeMint amendment No. Ohio and its neighbors feel this prob- about this many pages: five, six pages. 4710, as modified, and that there be 20 lem most acutely, but it is the Nation’s All you would need is a tariff sched- minutes of debate prior to a vote with problem. Our economy cannot prosper ule—a schedule of tariffs we were going respect to the amendment, with 15 unless we make and sell goods as well to reduce or eliminate. But, instead, minutes under the control of Senator as services. Yet for the past several NAFTA and the Colombia Free Trade DEMINT and 5 minutes under the con- years, much of our Nation’s greatest Agreement and these others are this trol of Senator DODD or his designee; engineering prowess has not gone to big. Do you know why? that no amendment be in order to the Toledo or Dayton or Youngstown but, It is not just the tariff schedules. amendment prior to the vote, and that instead, to Wall Street. They also have protections for the drug upon the use or yielding back of time, Unfortunately, traditional manufac- industries, protections for the banks, the Senate proceed to vote in relation turing has declined as a share of our protections for the oil industry, protec- to the amendment. economy, while the manufacture of fi- tions for all kinds of corporate inter- The PRESIDING OFFICER. Without nancial products has become increas- ests in every one of these trade agree- objection, it is so ordered. ingly important. ments. That is why when we talk about Ms. KLOBUCHAR. I yield the floor, When I was elected to Congress in protections, let’s be fair. Yes, to be and I suggest the absence of a quorum. 1992, our trade deficit was $38 billion— sure, I want to protect workers. I want The PRESIDING OFFICER. The $38 billion a decade and a half ago. to protect communities such as Tiffin, clerk will call the roll. Today, it exceeds $800 billion. With oil OH. I want to protect Sandusky and The bill clerk proceeded to call the reaching $121 per barrel, and perhaps protect Lorain and protect Springfield roll. higher soon, the trade deficit will like- and protect Zanesville. I want to make Mr. BROWN. Mr. President, I ask ly only increase in the years ahead. sure those communities are not dev- unanimous consent that the order for Leading up to the Ohio Presidential astated by these trade agreements that the quorum call be rescinded. primary in March, the media focused have all kinds of protections for the The PRESIDING OFFICER. Without on NAFTA, the North American Free largest corporate interests but very lit- objection, it is so ordered. Trade Agreement. In Ohio, when we tle for the environment, even less for Mr. BROWN. Mr. President, I ask talk about NAFTA, we mean our over- workers, and even less still to protect unanimous consent to speak as in all trade policy, be it with Mexico and our food supply and our toy supply for morning business for up to 10 minutes. Canada, or China, or Central America. our children. The PRESIDING OFFICER. Without But the media, of course, hears only We need to recast this debate. Those objection, it is so ordered. the word ‘‘protectionism.’’ When you of us who want to change the rules are Mr. BROWN. I thank the Presiding think about it, that is a pretty inter- not protectionists, in spite of what Officer and the Parliamentarian. esting choice of words. On the one side every elitist newspaper from the New TRADE you have proponents of free trade, York Times to the Los Angeles Times Mr. President, for the last year, 15 while on the other side you have what and everything in between likes to say. months, 16 months, or so, as I have many papers label as ‘‘protectionists.’’ Those of us who want to enforce trade traveled throughout my home State of Those of us in favor of fair trade are, laws and defend against bumping Chi- Ohio, I have held 95 or so roundtables indeed, trying to protect what we be- nese steel products are not protection- with small business owners, entre- lieve is important. We would like to ists. Those who want safe ingredients preneurs, workers, community leaders, protect the labor standards our coun- in pharmaceuticals we import are not family farmers, educators, and every- try has fought so hard to establish over protectionists. Those who want to where I go I hear variations of the many decades. We would like to help make sure our children’s toys coming same story—about plants that have our trading partners, the developing from China—after our toy companies closed and left for Mexico or China, and world, to improve their labor stand- outsource jobs, push the Chinese sub- workers, often in their fifties and six- ards. We would like to protect con- contractors to cut costs. They cut ties, who have few alternatives. sumers in this country from defective costs by putting lead-based paint on Manufacturing has been devastated and even dangerous products. We would toys because it is cheaper, it is easier over the past 5 years. Ohio has lost up- like to protect our children from toys to apply, it is shinier, it dries faster. wards of 200,000 manufacturing jobs covered with lead paint and our hos- Yet then these products, these toys since 2001, and this administration has pital patients from tainted blood prod- come into the United States, and the been largely indifferent. ucts. We would like to protect the abil- Bush administration has weakened One of these roundtables was held in ity of our manufacturers to compete consumer protection laws and cut the Tiffin, OH, a small manufacturing city against foreign companies without hav- number of inspectors so, because of of about 20,000 people, an hour or so ing to overcome trade barriers such as this trade policy, this protectionist, from Toledo. A company well known, currency manipulation. protect-industry-at-all-costs trade pol- American Standard, a company that So, yes, there are things I would like icy, we have these tainted toys enter- makes plumbing equipment, was to protect. But so-called free traders ing the bedrooms of too many of our bought out by an investment banking are interested in protecting their inter- children. firm from Boston in November. In De- ests, as well. They would like to pro- Trade is not just about exchanging cember, they notified the workers they tect their beef from imports. They goods between countries. Trade, when were going to shut down the plant and would like to protect pharmaceutical done right, is about lifting workers in move its production elsewhere. companies, as they do. They would like the United States and lifting workers A couple hundred workers lost their to protect financial services. In fact, abroad out of poverty. It is about cre- jobs, many of them lost big chunks of trade agreements of recent years basi- ating new industry. It is about creating their pension, and some of them lost cally are chock full of protections— new business. It is about creating new their health care. Yet the investors protections for the financial service in- jobs. It is about ensuring strong and who came in and bought American dustries, protections for the pharma- thriving economies for all parties in- Standard did, of course, very well. ceutical industry, protections for big volved. Today, Ohio and its neighbors feel oil. Fair trade products—for example, this problem of plant shutdowns, what In fact, NAFTA—what I hold in my coffee, tea, bananas, flowers—products it means not just to the workers and hand is not the actual NAFTA trade once relegated to specialty shelves in their families, but what it means to agreement but NAFTA was about this health food stores have now found their the communities as it relates to police size. NAFTA contained hundreds of way into mainstream America. protection and fire protection and pages of protections—protections in Costco and McDonalds have begun to teachers, as these communities are areas that go way beyond tariffs on promote fair trade. That is fair trade

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3957 where workers share in some of the factor in the destruction of our manu- If we do not, we will wake up to find we profits they produce for their employ- facturing base. They know our econ- have left a sorry legacy to our Nation, ers. They know it means quality prod- omy and they know their interests are to our communities, and to our chil- ucts and good business sense at home. undermined by that exploding trade dren. In the coffee fields of Nicaragua, fair deficit. They know Ohio’s problems are Mr. President, I yield the floor and trade products mean a bright future for Colorado’s problems and Montana’s suggest the absence of a quorum. tens of thousands of young girls—girls problems and Massachusetts’ problems. The PRESIDING OFFICER (Mr. who often would not have been able to They know for the past three decades SALAZAR). The clerk will call the roll. go to school, but they are able to be- the historical link between rising pro- The legislative clerk proceeded to cause their parents—coffee farmers in ductivity and rising wages has been call the roll. the case of Nicaragua—are making an severed. Mr. GREGG. Mr. President, I ask income that gives them enough, some- For most of my life—well, half of my unanimous consent that the order for times more than $1 a pound, as opposed life; the first 25 or 30 years of my life— the quorum call be rescinded. to coffee that is not fair trade where in this country, when workers were The PRESIDING OFFICER. Without maybe they get only half that. The more productive, their wages went up. objection, it is so ordered. kids of those workers do not get to go If I had a chart, you could see that. We SUPPLEMENTAL APPROPRIATIONS to school. could map productivity, and we could Mr. GREGG. Mr. President, I rise to Fair trade products mean that farm- map wages. In this country, for decades speak briefly—not about the bill that ers in developing nations earn two to and decades and decades, this created is pending but about a bill that is three times more for their products, the middle class. This is what made us somewhere in one of the hallways and those children, as I said, can get an a successful economy and a successful around here, which is the supplemental education. democratic capitalist country—that that is necessary in order to fund our Fair trade products mean workers on productivity and wages would almost troops in the field. That bill was sup- flower farms across Latin America will be parallel. posed to be marked up today in the Ap- be free from poisonous pesticides that Today, particularly in the last dec- propriations Committee, but, regret- cause death and birth defects. ade, that connection has absolutely tably, for reasons which are not totally Fair trade products mean that work- been severed. That has been the prob- clear to me but which are reasonably ers in developing nations will earn lem in many ways with our economy. apparent—which is that the House has more and be able to buy more from Wages have been flat, profits have been not yet gotten its procedures in order— us—the whole point of trade. That up, executive salaries have exploded, the bill was not marked up, the mark- means, obviously, increased exports for and the middle class has struggled up was canceled. It was supposed to U.S. businesses. mightily. start at 2 o’clock. Fair trade means trade—and more of Our country has entered a period I certainly hope we will mark up this it—but with a very different set of where income inequality is at the high- bill. It is very important this bill be rules, not this kind of protectionism to est level in 70 years. Now is the time to subject to regular order. It is a very protect the drug companies and the oil be asking the right questions. It is significant bill, obviously, because it industry and the insurance industry time to end the name calling and have involves funding for our troops in the and the financial services, but trade a real debate about trade. We are at a field. It is significant also because a lot agreements with a different set of rules critical juncture in our Nation’s his- of other matters which are extraneous that help lift up people, both in the de- tory. It serves both sides of the trade to the issue of fighting the war and giv- veloping world and in this country. debate to remember that U.S. trade ing our troops the resources they need Proponents of the same failed trade policy is a tool. It is not a fairy god- have been added to it on the House policies of the last 15 years need to mother. It should not be used to tem- side, and even more, as it appears, stop selling the trade deal with Colom- porarily pump up well-connected indus- maybe even being added on the Senate bia, for example, as a path to a strong- tries—as trade policy often is; hence, side. Thus, the Senate ought to have er economy. all the protections—nor should it be the right to work its will on the bill in NAFTA sent 19 million more Mexi- used to tamp down competitive forces. the regular order, which includes a cans below the poverty line. Today, Our trade policy must promote com- committee hearing where the various there are 19 million more Mexicans liv- petition, build on the progress our Na- issues are aired and amendments can ing below the poverty line than in 1993, tion has made, and promote our Na- be made. Then when it gets to the since NAFTA. CAFTA has failed—the tion’s economic and strategic objec- floor, it should also be subject to Central American Free Trade Agree- tives rather than flouting them. amendments so the minority, espe- ment—to create the thriving middle Ultimately, it will be ingenuity and cially, can have some input on the bill. class in Central America that pro- sweat equity—we know that—that en- Otherwise, the minority gets written ponents promised. ables our country to thrive in the glob- out of the process, which is not con- The Colombia Free Trade Agreement, al marketplace. Like every country, we structive to the institution, and it cer- as written, will produce the same re- will have to work harder and smarter tainly means we would have to defend sults: more poverty abroad, more lost to win every contract and every sale. our rights and probably oppose the bill U.S. jobs, more small businesses in this But it is the role of governments to en- on those procedural grounds that we country closing up shop. sure the rules for that contest are fair have an obligation—that we as a mi- The first President Bush said each and that the interests of everyone—not nority basically have the sacred right billion dollars—listen to this—each bil- just those we protect in our trade of making a decision as to when lion dollars of our trade surplus or def- agreements—to ensure that everyone amendments are to be offered or at icit translates into 13,000 jobs. A bil- has a stake and everyone is served by least what amendments should be lion-dollar trade surplus creates 13,000 our trade policy. voted on. jobs. A billion-dollar trade deficit costs Our Government has not done that. Relative to a major piece of legisla- 13,000 jobs. That is what the first Presi- Our trade deficit has ballooned, our tion such as this, we as the minority dent Bush said. That was back when manufacturing sector is faltering, and should have the right to amend it. If the trade deficit was $20 billion, $30 bil- real wages are falling. The last thing we decide not to amend it, that is our lion, $40 billion. Again, think about we need is more business as usual. No choice, obviously. But parts of this bill that: 13,000 jobs for a billion-dollar more NAFTAs, no more CAFTAs, no clearly need to be subject to amend- trade deficit or surplus. more Colombia trade agreements. Busi- ment, and the minority has a right to Today, the trade deficit exceeds $800 ness as usual has not worked. The sta- be heard on that in the Senate, espe- billion. Just do the math. The cost in tus quo is not working. Again, 151⁄2 cially because that is the essence of the jobs of this enormous increase in our years ago, the trade deficit was $38 bil- institution. The minority has the abil- trade deficit is staggering. lion; today, it is $800 billion. ity to participate in the process It is not surprising that voters in my We need to decide what our economic through the amendment process and State see bad trade deals as a major goals will be and how we achieve them. through the filibuster process.

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3958 CONGRESSIONAL RECORD — SENATE May 8, 2008 So I wish to speak to some of the State of Jordan, which unfortunately were purchased before we developed amendments I would have offered had has found itself incurring dramatic these flood maps. In other words, there we met today which I happen to think costs as a result of the overflow of the were many properties purchased years are very appropriate to this bill and events in Iraq. Massive amounts of ref- ago when people did not know they which are in the area of jurisdiction for ugees are coming into Jordan. It has were purchasing a home in a flood area. which I have primary responsibility. I put an extraordinary burden on that For that reason, we basically grand- am the ranking member on the Foreign country, a tremendous ally and friend fathered these homes in and allowed Operations Subcommittee which is the of the United States. them lower rates in the flood insurance committee that deals with foreign rela- So I believe we have an obligation as program than those who bought homes tions, with the State Department, and a nation—since we created this prob- after we had designated those flood with funding foreign activities. There lem for Jordan in many ways by the areas. are some very important issues which activity in Iraq—to support Jordan as The bill addresses some of those need to be addressed in this bill that it tries to address the issues of the ref- properties by phasing out the subsidies are not addressed. This bill has a sig- ugees. We cannot help them with the of nonprimary residences—those that nificant amount of money in it that physical activity of the refugees there, are rental properties, second homes, will flow through the State Depart- but we can give them resources. I was and even those with severe repetitive ment which deals specifically with going to increase funding to Jordan to losses. We take about 475,000 properties Iraq, with Afghanistan, and to some ex- accomplish that. I know Senator that were pre-FIRM, as we call it, or tent with other issues such as Mexico. INOUYE is also very interested in this preflood map, and phase those out. The first amendment I would have of- issue. There are 700,000 permanent residences fered would have been language to cor- In addition, money being spent by we do not address in the bill. rect what is an inconceivable bureau- the State Department in Iraq on behalf The purpose of my amendment is to cratic snafu, in my opinion. That is the of reconstruction should be signifi- bring all the properties, basically, into fact that Nelson Mandela—certainly cantly limited; but more important the same plan, and not to force some to one of the greatest leaders of the 20th than that, any new money we spend for pay higher premiums so we can give century, who epitomized the movement reconstruction through State Depart- subsidies to these 700,000 homes. My for freedom and for equality in Africa ment accounts should be matched one- bill doesn’t affect the rates or the sub- but really for the world generally—is to-one by the Government of Iraq. I sidies of any current property owner. not allowed in the United States unless find it inconceivable for a government My amendment does address new own- he gets a special waiver from the Sec- that runs a $30 billion or $40 billion ers, if those properties are sold after retary of State which allows him to surplus, on the issue of oil revenues, this bill passes. In other words, we con- come into the United States because of not be asked to pony up or at least tinue the subsidies of current property the fact that he was a member of the match what the American taxpayers owners, except for those already ad- are spending there relative to resources African National Congress and is a dressed in the bill. But if those prop- to promote reconstruction in Iraq. So I erties are sold, clearly, the new owner member of the African National Con- was going to offer that amendment. would know they are buying in a flood gress, having been the head of South I see the Senator from South Caro- zone, so the rationale to continue sub- Africa as that party rules there; and lina is here. I understand this time is sidies up to 65 percent does not exist. that party, due to the history of that correctly his. At this point, I will yield I remind my colleagues that if we party, has been caught in the bureau- the floor. First, I also intended to offer allow inequities to continue, where cratic framework of our laws and is an amendment in markup today which some are getting subsidies and some designated as a potential terrorist or- would have put a consular office in are not, then some residents—and one ganization, which is really ridiculous Tibet. I think it is critical to have a might be sitting next to another—are on its face. consular office there as the Tibetan going to have a higher property value The fact that Nelson Mandela cannot people deal with the situation occur- because it will get lower flood insur- come into the United States because ring there relative to the Chinese Gov- ance rates indefinitely, no matter how the organization he led, which deliv- ernment crackdown. many times it is sold. ered freedom and equality in South Af- At this point, I yield the floor. My amendment, again, I think would rica, has gotten this designation due to AMENDMENT NO. 4710 improve the sustainability of the pro- its prior activity, it would be like say- The PRESIDING OFFICER. Under gram. I encourage the ranking member ing the head of the Likud Party, which the previous order, there will now be 20 to consider this. I know there have a number of Prime Ministers of Israel minutes of debate prior to a vote in re- been agreements not to add or support come from, because it at one time was lation to amendment No. 4170, offered any amendments. But I think this cap- an activist organization confronting by the Senator from South Carolina, tures a lot of the intent of the whole British rule in Palestine at the time, Mr. DEMINT. bill to make the program sustainable the head of the Likud Party would not The Senator from South Carolina is and fairer, and actually my amend- be allowed in the United States but recognized. ment would return about $550 million would have to receive special exemp- Mr. DEMINT. Mr. President, I wish to in additional premium revenues to the tion. It makes no sense. talk about my amendment that will be plan over the next 10 years. So this is, So this language, which the Sec- voted on in about 15 or 20 minutes. It is again, designed to make the program retary of State totally supports and amendment No. 4710. It is an amend- fairer. the Secretary of State is equally out- ment to the National Flood Insurance I encourage my colleagues to look at raged by, would have to be changed. So Program bill we are considering today. this amendment. It is not a partisan working with the State Department, The whole purpose of the flood insur- amendment in any way. It will make we have this language together, and we ance bill is to improve the program, the program better and fairer and it will go over it. make it more actuarially sound, make will bring everybody into the same sta- I understand at 2 o’clock we go into it more financially sustainable over tus once properties are sold. debate on the DeMint amendment, and many years. Obviously, we have had With that, I will reserve the remain- I will be happy to yield the floor as huge problems with the program. Yet der of my time and yield the floor. soon as somebody arrives and wishes to it is very important to people all I suggest the absence of a quorum. debate. But I ask unanimous consent around the country, particularly those The PRESIDING OFFICER. The to be able to continue until such indi- in coastal areas. clerk will call the roll. vidual arrives. One of the goals of this reform bill is The legislative clerk proceeded to The PRESIDING OFFICER. Without to make the rates fairer and to phase call the roll. objection, it is so ordered. out a number of the subsidies that we Mr. DEMINT. Mr. President, I ask Mr. GREGG. The second amendment have allowed under the current pro- unanimous consent that the order for I would have offered would address the gram. the quorum call be rescinded. issue of the war on terror and our in- The current program allows up to a The PRESIDING OFFICER. Without volvement with Iraq relative to the 65-percent subsidy on properties that objection, it is so ordered.

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3959 The Senator from South Carolina. I trust their judgment to work this fear that unless his administration Mr. DEMINT. Mr. President, in a mo- issue out in conference. I think the bill acts, and acts quickly, we will once ment I will ask unanimous consent to has made a lot of progress. again fail to stop a genocide in its trag- withdraw my amendment, but I wish to Mr. President, I ask unanimous con- ic march. If we want to send a message have a little discussion on the floor sent to withdraw my amendment. to the world that the United States with the chairman and ranking mem- The PRESIDING OFFICER. Without will not turn a blind eye to genocide, ber because for the most part, we agree objection, it is so ordered. The amend- now is the time to act in Darfur. on a lot of the principles in the bill, ment is withdrawn. Violence began in Darfur 5 years ago. and they would like the latitude to Mr. DEMINT. Mr. President, I yield Since that time, I have come to the work some of this out in conference. the floor and suggest the absence of a floor many times to talk about it. My goal is to have a more sustain- quorum. In 2004, the House of Representatives able, fairer program. The idea is not to The PRESIDING OFFICER. The unanimously adopted a resolution call- raise the price of current premium pay- clerk will call the roll. ing on President Bush to call the atroc- ers or to raise the price of real estate. The assistant legislative clerk pro- ities in Darfur by their rightful name: I want to ask my colleagues if they ceeded to call the roll. a genocide. The resolution also urged would consider some of the principles Mr. DURBIN. Mr. President, I ask the President to consider multilat- of bringing all policies eventually into unanimous consent that the order for eral—even unilateral—intervention. some actuarial equity. the quorum call be rescinded. That resolution passed nearly 4 years Mr. DODD. Mr. President, if my col- The PRESIDING OFFICER. Without ago, in July 2004—4 years ago. league will yield, he raises a very good objection, it is so ordered. A few months later, Secretary of point. In fact, I had a discussion with Mr. DURBIN. Mr. President, I ask State Colin Powell said: Senator DORGAN on a similar issue, but unanimous consent to speak as in [G]enocide has been committed in Darfur the same point of an equity interest in- morning business. and that the government of Sudan and the volving the cost of premiums where The PRESIDING OFFICER. Without Janjaweed bear responsibility and the geno- you have a very well-built levee and objection, it is so ordered. cide may still be occurring. should the premium be the same as one DARFUR In June 2005, President Bush said he with a 50-year-old levee—that is a le- Mr. DURBIN. Mr. President, I rise agreed with Secretary of State Pow- gitimate point, it seems to me. today to mark the anniversary of one ell’s determination that what was hap- We talked earlier with Senator global tragedy and to call attention to pening in Darfur was in fact a geno- VITTER about costs and values. We dis- another, a tragedy that is occurring cide. agree with him on that issue, but he even at this moment. Two years later, President Bush makes a case, as the Senator from Fourteen years ago this week, the spoke at the Holocaust Museum here in South Carolina does, that we need to world stood by as 800,000 Rwandans Washington and said that ‘‘genocide is strike this balance well so we are not were brutally murdered, largely along the only word for what is happening in locking in permanent costs, and not ethnic lines, in only 100 days. Despite Darfur.’’ He went on to say ‘‘ ... we also falsely contributing to a rise in early warning signs and pleas for great- have a moral obligation to stop it.’’ the cost of real estate in a time when er international attention, we did little Many things have been said by many we are dealing with oversupply and more as a nation than watch as this act influential people over the years, but trying to move properties. little action has taken place. Five I am sympathetic with what my col- of genocide was allowed to continue. years after this declaration of geno- league is trying to achieve. There is an Canadian GEN Romeo Dallaire at the cide, where do we stand? What have we equity interest he has identified that I time was commander of a small U.N. done? As many as 400,000 residents of think has legitimacy. The question is, peacekeeping force in Rwanda when How do we satisfy that in a actuarially the genocide began. He desperately Darfur have been killed, others bru- sound program? tried to get the United Nations to ap- tally raped and tortured, entire vil- I commend him for the idea. I am prove a more robust force to end the lages torched, creating a refugee crisis grateful to him for withdrawing the killings. Despite his efforts, the Secu- that has forced more than 2 million amendment. It gives us a chance to rity Council voted instead to cut back Darfuris to flee their homes. work on it and examine it in a way the United Nations’ force. Nearly 2,500 This photo is almost surreal. As that will hopefully satisfy him. I can- troops were replaced with 450 poorly often described, people who have flown not promise him this, obviously, be- trained and poorly equipped soldiers. over the Darfur region say it looks as if cause the Senator from Alabama and I We all know the tragic result. Today people have put cigarettes out—the have to deal with the House. I come the world looks back in shame at the types of burns that you see. The burns, with an open mind to the equity issue inaction in Rwanda. We all failed. of course, represent huts in villages he raises with his amendment. In 1998, President Clinton visited that have been destroyed. This is a The PRESIDING OFFICER. The Sen- Rwanda and spoke to those who lost part of Sudan after the Sudanese Gov- ator from Alabama. loved ones in those horrible times. ernment and allied militia forces re- Mr. SHELBY. Mr. President, I com- President Clinton said: cently burned a village. mend the Senator from South Carolina We in the United States and the world Hundreds of thousands of women and for bringing up his amendment. I think community did not do as much as we could children live in refugee camps in it is something we should consider in have and should have done to try to limit Darfur and Chad. I don’t think this conference. Senator DODD had a col- what occurred in Rwanda in 1994. photo does justice to the camp, but loquy about it on the side on the floor President Clinton’s decision to visit what appear to be tiny white dots are, a few minutes ago. Rwanda was an honorable one. It was in fact, small tents, a sea of small At the end of the day, what we are in- the right choice. His words were inspir- tents. There are 90,000 people who live terested in is a more actuarially sound ing in their honesty and accuracy, but in the Kalma refugee camp in Darfur— flood insurance program, one that will his words were also an important re- no grass, no trees, 10 reported rapes make more sense after a lot of mapping minder that the world cannot allow every single day. The people in camps goes on around the country that will such a tragedy to occur again. like this one in Kalma are dependent broaden the program and not perpet- President Bush visited Rwanda in on us, the entire international commu- uate subsidy over and over for four or January and toured the Kigali Memo- nity, for the basics—food, water, and five sales or four or five generations rial Center, which I have also visited, shelter. It is nothing short of a human- where property is sold. where 250,000 Rwandans are buried in itarian catastrophe. The Senator from South Carolina is mass graves. President Bush said he The U.N. Security Council voted last on the right track. I assure him I want hoped the world would ‘‘once and for summer in favor of a historic 26,000- to pursue this in conference. all’’ work to halt the genocide in member U.N.-African Union joint AMENDMENT NO. 4710 WITHDRAWN Darfur. peacekeeping force. Last summer, they Mr. DEMINT. Mr. President, I thank President Bush will soon be leaving voted for it. That brought a glimmer of the chairman and the ranking member. office—less than a year from now. I hope across the world that finally

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3960 CONGRESSIONAL RECORD — SENATE May 8, 2008 there was going to be a global response Rwanda. He called it ‘‘my great, great on the floor is that an event happened to this terrible situation. regret in international affairs.’’ Presi- this week in Bonneville County, ID, in Today, almost a year later, only a dent Bush, this is your chance. Either southeastern Idaho, that I think is sig- third of those peacekeepers have been do something or face a similar script nificant not only to this Nation but ul- deployed—a third. Only a third of this and a similar speech in years to come, timately to the world. A global nuclear peacekeeping force is on the ground expressing your regret that you, on service company selected that area of while the Sudanese Government con- your watch, did not stop the genocide our country in my State to site a $2 tinues to thumb its nose at the inter- in Darfur. billion uranium enrichment facility on national community and its forces con- We cannot allow ourselves to have to a 400-acre farm west of Idaho Falls on tinue to attack villages in Darfur. Hu- look back years from now to say that Highway 20, a location that is very manitarian and U.N. relief workers happened. We have a moral responsi- near the birthplace of global nuclear face ongoing violence and harassment. bility as a leader in the world to speak power and the nuclear industry. In 1951, This photo is of a grieving mother out and act to save these people. the first light bulb was lit by nuclear whose children were killed in Darfur. I yield the floor. Mr. President, I sug- power in Arco, ID. Of course, while Hers is one of the thousands—hundreds gest the absence of a quorum. that is a little known historical fact, of thousands of tragic stories. She said The PRESIDING OFFICER (Mr. NEL- the actual reactor itself is now a na- her three children had been burned SON of Nebraska). The clerk will call tional historic location, so designated alive in this region’s violence. Just the the roll. by the late President Lyndon Johnson other day, Sudanese forces were re- The assistant legislative clerk pro- a good number of years ago. Since that ported to have bombed a primary ceeded to call the roll. time forward, over 50 prototypes of nu- school in the north Darfur village of Mr. ENSIGN. Madam President, I ask clear reactors have been designed at Shegeg Karo, killing at least seven lit- unanimous consent that the order for the Idaho Nuclear Laboratory and our tle children. the quorum call be rescinded. first nuclear plant for a submarine. In After so many years, after so much The PRESIDING OFFICER (Ms. fact, I often laughingly say that out in violence and human suffering, after so KLOBUCHAR). Without objection, it is so a big bathtub in the middle of the high many calls for action, what is holding ordered. deserts of Idaho is a nuclear sub and up the deployment of peacekeepers? AMENDMENT NO. 4734 WITHDRAWN that many who train to operate our nu- It may be hard to believe, but one Mr. ENSIGN. Madam President, I ask clear Navy trained in Idaho. It was be- significant problem is a shortage of unanimous consent that the Ensign cause of that significance and the rela- helicopters—hard to imagine, a short- amendment be withdrawn. tionship that Areva, this global com- age of helicopters, as the killing, The PRESIDING OFFICER. Without pany, could have with our national lab- looting, pillaging, raping, and displace- objection, it is so ordered. oratory facilities that they sited this ment continues. This tragic genocide Mr. ENSIGN. Madam President, I nuclear service company there and has been raging for 5 years while we suggest the absence of a quorum. their enrichment plant. have just stood by and watched. Yet The PRESIDING OFFICER. The Areva, the company, will employ, at the world’s most powerful nations can- clerk will call the roll. a peak during construction, nearly not manage to dig up a handful of heli- The bill clerk proceeded to call the 1,000 workers over an 8-year period. copters. How can that be? Are all our roll. When operational, the plant will em- helicopters tied up in Iraq and Afghani- Mr. REID. Madam President, I ask ploy some 250 full-time workers, with a stan? Are they all in the shop? Is there unanimous consent that the order for total annual salary of approximately truly not one NATO ally that will the quorum call be rescinded. $15 million. The plant will provide over spare a few helicopters? How about The PRESIDING OFFICER. Without $5 billion to the local economy of asking the Russians? They are already objection, it is so ordered. southeastern Idaho over the next 30 helping in south Sudan and Chad. The Mr. REID. Madam President, before my friend leaves the floor, I express my years. Russian Ambassador visited my office The enrichment plant could be the recently and told me he is open to ex- appreciation to my colleague Senator first of many nuclear partnerships that ploring helping Darfur. It is hard to ENSIGN. This is an issue that needs Areva will have in the United States imagine that the United States would more work. We have spoken to the two and with Idaho. The next generation be asking other countries to be sup- managers of the bill. They are going to nuclear plant being designed at the plying helicopters, but at the risk of try to help us. This is an issue impor- Idaho lab right now allows and puts allowing this genocide to continue, we tant to Nevada and we think other Areva into an alliance relationship. ought to do that. places. But I wanted to express my ap- UniStar, which some who track the nu- This tragedy is of historic propor- preciation to Senator ENSIGN, who did tion, and it is our chance to step in and most of the work on this issue. clear industry know about, is looking show the world we really care. But Madam President, I suggest the ab- at an opportunity in Idaho, and Areva what it takes is Presidential leader- sence of a quorum. and Constellation and other major en- ship—not in 6 months, not in a year, The PRESIDING OFFICER. The ergy companies of the world are in- but now. clerk will call the roll. volved in that. My colleagues have I know some of my colleagues in the The bill clerk proceeded to call the heard us talk about NGNP which, of Senate, ones on the floor here—Senator roll. course, is a nuclear global energy part- BIDEN has raised this issue personally Mr. CRAIG. Madam President, I ask nership. Once again, Areva is a part of with President Bush. Quite simply, I unanimous consent that the order for that. want to put this in the most simple the quorum call be rescinded. Over the last year, I, my staff, and terms because I said it directly to the The PRESIDING OFFICER. Without the Idaho congressional delegation President himself and to Secretary of objection, it is so ordered. have worked with Areva. Because they State Condoleezza Rice: If you are not Mr. CRAIG. Madam President, let me showed interest in siting in Idaho or going to do anything before you leave also ask unanimous consent that I be Washington or Ohio or New Mexico or office to stop the genocide in Darfur, allowed to speak as in morning busi- Texas, we began to work with them to then spend a few minutes writing your ness. show them what Idaho had to offer, not speech so that a year or two from now, The PRESIDING OFFICER. Without only in a relationship with our na- when you visit that terrible place, you objection, it is so ordered. tional lab but a phenomenally talented can say: We could have done more; I Mr. CRAIG. Madam President, I workforce that is capable of doing the wish we would have. thank the chairman because of the ac- kind of work they need done. We That is what it has come down to. tivity we are involved in on the floor worked very closely with the office of This administration and Congress will with the legislation that he is shep- Gov. Butch Otter. As a result of those either act soon or, sadly, this genocide herding at this moment. relationships, we began to work with will have occurred on our watch. NUCLEAR ENERGY the Idaho legislature to provide an eco- A few years ago, President Clinton Mr. CRAIG. Madam President, the nomic incentives package for this kind faced the reality of his failure to act in reason I am speaking at this moment of development. We also worked with

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3961 the Idaho Department of Commerce seen what happened just in the last The PRESIDING OFFICER. Without and Industry, with the city of Idaho several months as we have watched objection, it is so ordered. Falls, ID, which has always had a very prices of gas at the pump go up to the The amendments were agreed to, as positive working relationship with the level they are today, the shudder that follows: National Nuclear Laboratory that is has gone out from the consuming pub- AMENDMENT NO. 4724 located just miles from that city. lic, and the political reaction in Wash- Those are the kinds of partnerships the ington as we chase ourselves in circles (Purpose: To study alternative approaches to State of Idaho, the City of Idaho Falls, trying to find an excuse to blame some- ensure the future of the National Flood In- surance Program by requiring greater effi- the Governor, the Idaho legislature, body for the inaction of the Congress ciency and financial accountability) and the Idaho congressional delegation over the last 20 years in the area of were able to put together that finally production and refinement and the At the appropriate place, insert the fol- brought Areva to recognize the tremen- overall development of energy itself. lowing: dous opportunity that rests in siting a The reason Areva’s decision to site a SEC. lll. FEASIBILITY STUDY ON PRIVATE RE- world-class facility such as this in our facility not just in Idaho but in this INSURANCE. State. country—a uranium enrichment Not later than 1 year after the date of en- I mentioned a moment ago and got plant—is a process that is key toward actment of this Act, the Comptroller General unanimous consent that Colin Jones be of the United States shall conduct and sub- building the fuel to supply a nuclear mit a report to Congress on— allowed on the floor if he chose. Colin reactor because that one technology (1) the feasibility of requiring the Director, is a fellow from the Idaho National Lab that is available today beyond wind, as part of carrying out the responsibilities of and he worked in a very close relation- beyond solar, to supply clean energy to the Director under the National Flood Insur- ship with this company to make sure the market is nuclear. While Sun is ance Program, to purchase private reinsur- they had all the answers when they intermittent and solar is intermittent, ance or retrocessional coverage, in addition needed them to make this happen. nuclear reactors supply a strong base to any such reinsurance coverage required Now, why is all this significant? load of electricity to the American under section 1335 of the National Flood In- Right now, we are talking about cli- surance Act of 1968 (42 U.S.C. 4055), to under- grid. lying primary private insurers for losses mate change. We are talking about try- While we struggle with the tech- arising due to flood insurance coverage pro- ing to rebuild an industry in our coun- nologies for clean coal, while we look vided by such insurers; try and for the world that we nearly to build other technologies, the one we (2) the feasibility of repealing the reinsur- lost, and that is the nuclear industry. can build today in a very demanding ance requirement under such section 1335, For 20 years, this country, for some energy market is nuclear. Yet in a nu- and requiring the Director, as part of car- reason, grew very fearful of the idea clear conference in Chicago just this rying out the responsibilities of the Director that we might advance generation of week Excelon and other companies under the National Flood Insurance Pro- electricity by new nuclear plants, and that are major utilities said because of gram, to purchase private reinsurance or retrocessional coverage to underlying pri- we literally stopped. In so stopping it, this whole new demand the price of mary private insurers for losses arising due we nearly lost the industry itself and building a nuclear reactor has doubled to flood insurance coverage provided by such the ability of the industry to build new from maybe $4 billion per single plant insurer; and nuclear reactors, tied with generating to now $8 billion or $9 billion. (3) the estimated total savings to the tax- facilities for electrical purposes. Along This is the bottom line: The cost of payer of taking each such action described in came the growing concern of climate energy is going to continue to go up paragraph (1) or (2). change and the emission of greenhouse until we bring online the technologies AMENDMENT NO. 4725 gases and other environmental con- and the infrastructure to supply those (Purpose: To deny premium subsidies to cerns that caused us, in many in- technologies to continue to build an homeowners who refuse to accept an offer stances, to stop producing energy in abundant energy supply for our coun- of Federal assistance to alter or relocate the traditional ways we had produced try. So that is why I came to the floor their property in an effort to minimize fu- it. today to talk about what got an- ture flood damages and costs) Nearly 60 percent of the energy in nounced in Idaho this Tuesday, and On page 8, line 13, strike ‘‘and’’. this country is produced by coal-fired that was a world-class, $2 billion ura- On page 8, line 16, strike ‘‘policy.’’.’’ and generation facilities. Many of those nium enrichment plant by the Areva insert the following: ‘‘policy; and today are emitters of CO2, and there company and International Utilities. ‘‘(3) any prospective insured who refuses to are some who believe it is the con- I am proud of my State and all of the accept any offer for mitigation assistance by centration of CO2 in the Earth’s atmos- people in my State for the work they the Administrator (including an offer to re- phere that may be causing an increased have done to accomplish this. I com- locate), including an offer of mitigation as- or an accelerated rate of warming of pliment them all and wanted them to sistance— our globe. ‘‘(A) following a major disaster, as defined be a part of the CONGRESSIONAL in section 102 of the Robert T. Stafford Dis- While we are trying to make those RECORD. aster Relief and Emergency Assistance Act changes, the rest of the world rushes I yield the floor. (42 U.S.C. 5122); or headlong. In fact, China is a perfect ex- Mr. DODD. Madam President, I ask ‘‘(B) in connection with— ample of bringing at least one new unanimous consent that there be 4 ‘‘(i) a repetitive loss property; or coal-fired plant on line per week to minutes of debate prior to a vote in re- ‘‘(ii) a severe repetitive loss property, as supply its growing energy and eco- lation to Durbin amendment No. 4715, that term is defined under section 1361A.’’. nomic needs. We had always been criti- as modified; that upon the use or yield- AMENDMENT NO. 4727 cized for being the larger emitter of ing back of the time, the Senate pro- (Purpose: To impose a civil penalty for non- greenhouse gas because we were 25 per- ceed to vote in relation to the Durbin compliance with certain reporting require- cent of the world economy. Now, amendment, with no amendment in ments) China, a country that we didn’t think order to the amendment prior to the On page 50, between lines 3 and 4, insert would become the larger emitter for vote. the following: several years, this last June measured The PRESIDING OFFICER. Without (4) FAILURE TO COMPLY.—A property and as the largest greenhouse gas-polluting objection, it is so ordered. casualty insurance company that is author- Nation in the world. AMENDMENTS (NOS. 4724; 4725; 4727; 4728, AS MODI- ized by the Director to participate in the My point is quite simple. The need FIED; 4730; 4733, AS MODIFIED; 4735; 4736; 4711; Write Your Own program which fails to com- for new environmental and clean en- AND 4706, AS MODIFIED FURTHER, TO AMEND- ply with the reporting requirement under ergy technology today is absolutely MENT NO. 4707) this subsection or the requirement under critical, and building the infrastruc- Mr. DODD. Madam President, I ask section 62.23(j)(1) of title 44, Code of Federal unanimous consent that the managers’ Regulations (relating to biennial audit of the ture that can supply us with abundant flood insurance financial statements) shall energy is even more important. amendment at the desk be agreed to, be subject to a civil penalty in an amount If our country is going to continue to and the motion to reconsider be laid equal to $1,000 per day for each day that the grow, it has to have an abundant sup- upon the table, with no intervening ac- company remains in noncompliance with ei- ply of all sources of energy. We have tion or debate. ther such requirement.

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3962 CONGRESSIONAL RECORD — SENATE May 8, 2008

AMENDMENT NO. 4728, AS MODIFIED owners to appeal proposed changes in flood to, but shall not report to, or be subject to (Purpose: To require clear and comprehen- elevations through their community; and the general supervision by, the Assistant Ad- sible disclosure of conditions, exclusions, (E) encouraging property owners to main- ministrator for Mitigation or any successor and other limitations pertaining to flood tain or acquire flood insurance coverage. thereto. insurance coverage) AMENDMENT NO. 4735 ‘‘(2) QUALIFICATIONS.—An individual ap- pointed under paragraph (1)(B) shall have a At the end of title I, add the following: (Purpose: To modify the project for flood background in customer service, or experi- SEC. 133. POLICY DISCLOSURES. control, Big Sioux River and Skunk Creek, ence representing insureds, as well as experi- (a) IN GENERAL.—Notwithstanding any Sioux Falls, South Dakota) ence in investigations or audits. other provision of law, in addition to any At the end, add the following: ‘‘(3) RESTRICTION ON EMPLOYMENT.—An in- other disclosures that may be required, each TITLE III—MISCELLANEOUS dividual may be appointed as the National policy under the National Flood Insurance Flood Insurance Advocate only if such indi- Program shall state all conditions, exclu- SEC. 301. BIG SIOUX RIVER AND SKUNK CREEK, SIOUX FALLS, SOUTH DAKOTA. vidual was not an officer or employee of the sions, and other limitations pertaining to Federal Emergency Management Agency coverage under the subject policy, regardless The project for flood control, Big Sioux River and Skunk Creek, Sioux Falls, South with duties relating to the national flood in- of the underlying insurance product, in plain surance program during the 2-year period English, in boldface type, and in a font size Dakota, authorized by section 101(a)(28) of the Water Resources Development Act of ending with such appointment and such indi- that is twice the size of the text of the body vidual agrees not to accept any employment of the policy. 1996 (110 Stat. 3666), is modified to authorize the Secretary to reimburse the non-Federal with the Federal Emergency Management (b) VIOLATIONS.—Any person that violates Agency for at least 2 years after ceasing to the requirements of this section shall be sub- interest for funds advanced by the non-Fed- eral interest for the Federal share of the be the National Flood Insurance Advocate. ject to a fine of not more than $50K at the Service as an employee of the National project, only if additional Federal funds are discretion of Director. Flood Insurance Advocate shall not be taken appropriated for that purpose. AMENDMENT NO. 4730 into account in applying this paragraph. (Purpose: To provide 2 additional members AMENDMENT NO. 4736 ‘‘(4) STAFF.—To the extent amounts are to the Technical Mapping Advisory Council) (Purpose: To ensure that the purchase price provided pursuant to subsection (n), the Na- On page 25, line 11, strike ‘‘; and’’ and in- of flood insurance polices required to be tional Flood Insurance Advocate may em- sert a semicolon. purchased in areas of residual risk accu- ploy such personnel as may be necessary to On page 25, line 14, strike the period and rately reflects the level of flood protection carry out the duties of the Office. insert a semicolon. provided by any levee, dam, or other man- ‘‘(5) INDEPENDENCE.—The Director shall not On page 25, between lines 14 and 15, insert made structure in such area) prevent or prohibit the National Flood Insur- the following: On page 10, between lines 16 and 17, insert ance Advocate from initiating, carrying out, (M) a representative of a State agency that the following: or completing any audit or investigation, or has entered into a cooperating technical (3) ACCURATE PRICING.—In carrying out the from issuing any subpoena or summons dur- partnership with the Director and has dem- mandatory purchase requirement under ing the course of any audit or investigation. onstrated the capability to produce flood in- paragraph (1), the Director shall ensure that ‘‘(6) REMOVAL.—The President and the Di- surance rate maps; and the price of flood insurance policies in areas rector shall have the power to remove, dis- (N) a representative of a local government of residual risk accurately reflects the level charge, or dismiss the National Flood Insur- agency that has entered into a cooperating of flood protection provided by any levee, ance Advocate. Not later than 15 days after technical partnership with the Director and dam, or other the man-made structure in the removal, discharge, or dismissal of the has demonstrated the capability to produce such area. Advocate, the President or the Director shall flood insurance rate maps. On page 31, after line 14 add: report to the Committee on Banking of the ‘‘(v) The level of protection provided by Senate and the Committee on Financial AMENDMENT NO. 4733, AS MODIFIED Services of the House of Representatives on On page 34, between lines 14 and 15, insert man-made structures.’’ On page 10, after line 16 insert: the basis for such removal, discharge, or dis- the following: missal. (d)—upon decertification of any levee, (d) COMMUNICATION AND OUTREACH.— ‘‘(b) FUNCTIONS OF OFFICE.—It shall be the dam, or man-made structure under the juris- (1) IN GENERAL.—The Director shall— function of the Office of the Flood Insurance (A) work to enhance communication and diction of the Army Corps of Engineers, the Advocate to— outreach to States, local communities, and Corps shall immediately provide notice to ‘‘(1) assist insureds under the national property owners about the effects of— the Director of the National Flood Insurance flood insurance program in resolving prob- (i) any potential changes to National Flood program. lems with the Federal Emergency Manage- Insurance Program rate maps that may re- (Amendment 4711 is printed in the ment Agency relating to such program; sult from the mapping program required RECORD of Wednesday, May 7, 2008.) ‘‘(2) identify areas in which such insureds under this section; and have problems in dealings with the Federal AMENDMENT NO. 4706, AS FURTHER MODIFIED (ii) that any such changes may have on Emergency Management Agency relating to flood insurance purchase requirements; and Strike section 131 and insert the following: such program; (B) engage with local communities to en- SEC. 131. FLOOD INSURANCE ADVOCATE. ‘‘(3) propose changes in the administrative hance communication and outreach to the Chapter II of the National Flood Insurance practices of the Federal Emergency Manage- residents of such communities on the mat- Act of 1968 is amended by inserting after sec- ment Agency to mitigate problems identified ters described under subparagraph (A). tion 1330 (42 U.S.C. 4041) the following new under paragraph (2); (2) REQUIRED ACTIVITIES.—The communica- section: ‘‘(4) identify potential legislative, adminis- tion and outreach activities required under ‘‘SEC. 1330A. OFFICE OF THE FLOOD INSURANCE trative, or regulatory changes which may be paragraph (1) shall include— ADVOCATE. appropriate to mitigate such problems; (A) notifying property owners when their ‘‘(a) ESTABLISHMENT OF POSITION.— ‘‘(5) conduct, supervise, and coordinate— properties become included in, or when they ‘‘(1) IN GENERAL.—There shall be in the ‘‘(A) systematic and random audits and in- are excluded from, an area having special Federal Emergency Management Agency an vestigations of insurance companies and as- flood hazards and the effect of such inclusion Office of the Flood Insurance Advocate sociated entities that sell or offer policies or exclusion on the applicability of the man- which shall be headed by the National Flood under the National Flood Insurance Pro- datory flood insurance purchase requirement Insurance Advocate. The National Flood In- gram, to determine whether such insurance under section 102 of the Flood Disaster Pro- surance Advocate shall— companies or associated entities are allo- tection Act of 1973 (42 U.S.C. 4012a) to such ‘‘(A) to the extent amounts are provided cating only flood losses under such insurance properties; pursuant to subsection (n), be compensated policies to the National Flood Insurance Pro- (B) educating property owners regarding at the same rate as the highest rate of basic gram; the flood risk and reduction of this risk in pay established for the Senior Executive ‘‘(B) audits and investigations to deter- their community, including the continued Service under section 5382 of title 5, United mine if an insurance company or associated flood risks to areas that are no longer sub- States Code, or, if the Director so deter- entity described under subparagraph (A) is ject to the flood insurance mandatory pur- mines, at a rate fixed under section 9503 of negotiating on behalf of the National Flood chase requirement; such title; Insurance Program with third parties in (C) educating property owners regarding ‘‘(B) be appointed by the Director without good faith; the benefits and costs of maintaining or ac- regard to political affiliation; ‘‘(6) conduct, supervise, and coordinate in- quiring flood insurance, including, where ap- ‘‘(C) report to and be under the general su- vestigations into the operations of the na- plicable, lower-cost preferred risk policies pervision of the Director, but shall not re- tional flood insurance program for the pur- under the National Flood Insurance Act of port to, or be subject to supervision by, any pose of— 1968 (42 U.S.C. 4011 et seq.) for such prop- other officer of the Federal Emergency Man- ‘‘(A) promoting economy and efficiency in erties and the contents of such properties; agement Agency; and the administration of such program; (D) educating property owners about flood ‘‘(D) consult with the Assistant Adminis- ‘‘(B) preventing and detecting fraud and map revisions and the process available such trator for Mitigation or any successor there- abuse in the program; and

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3963 ‘‘(C) identifying, and referring to the At- surance advocate is published and available ‘‘(xi) identify ways to promote the econ- torney General for prosecution, any partici- to such insureds served by the office; and omy, efficiency, and effectiveness in the ad- pant in such fraud or abuse; ‘‘(4) establish temporary State or local of- ministration of the national flood insurance ‘‘(7) identify and investigate conflicts of fices where necessary to meet the needs of program; interest that undermine the economy and ef- qualified insureds following a flood event. ‘‘(xii) identify fraud and abuse in the na- ficiency of the national flood insurance pro- ‘‘(e) OTHER RESPONSIBILITIES.— tional flood insurance program; and gram; and ‘‘(1) ADDITIONAL REQUIREMENTS RELATING ‘‘(xiii) include such other information as ‘‘(c) AUTHORITY OF THE NATIONAL FLOOD IN- TO CERTAIN AUDITS.—Prior to conducting any the National Flood Insurance Advocate may SURANCE ADVOCATE.—The National Flood In- audit or investigation relating to the alloca- deem advisable. surance Advocate may— tion of flood losses under subsection ‘‘(B) DIRECT SUBMISSION OF REPORT.—Each ‘‘(1) have access to all records, reports, au- (b)(5)(A), the National Flood Insurance Advo- report required under this paragraph shall be dits, reviews, documents, papers, rec- cate may— provided directly to the committees identi- ommendations, or other material available ‘‘(A) consult with appropriate subject-mat- fied in subparagraph (A) without any prior to the Director which relate to administra- ter experts to identify the data necessary to review or comment from the Director, the tion or operation of the national flood insur- determine whether flood claims paid by in- Secretary of Homeland Security, or any other officer or employee of the Federal ance program with respect to which the Na- surance companies or associated entities on Emergency Management Agency or the De- tional Flood Insurance Advocate has respon- behalf the national flood insurance program partment of Homeland Security, or the Of- sibilities under this section; including infor- reflect damages caused by flooding; fice of Management and Budget. mation submitted pursuant to Section 128 of ‘‘(B) collect or compile the data identified ‘‘(3) INFORMATION AND ASSISTANCE FROM this Act; in subparagraph (A), utilizing existing data OTHER AGENCIES.— ‘‘(2) undertake such investigations and re- sources to the maximum extent practicable; ‘‘(A) IN GENERAL.—Upon request of the Na- ports relating to the administration or oper- and tional Flood Insurance Advocate for infor- ation of the national flood insurance pro- ‘‘(C) establish policies, procedures, and mation or assistance under this section, the gram as are, in the judgment of the National guidelines for application of such data in all Flood Insurance Advocate, necessary or de- head of any Federal agency shall, insofar as audits and investigations authorized under is practicable and not in contravention of sirable; this section. any statutory restriction or regulation of ‘‘(3) request such information or assistance ‘‘(2) ANNUAL REPORTS.— the Federal agency from which the informa- as may be necessary for carrying out the du- ‘‘(A) ACTIVITIES.—Not later than December tion is requested, furnish to the National ties and responsibilities provided by this sec- 31 of each calendar year, the National Flood Flood Insurance Advocate, or to an author- tion from any Federal, State, or local gov- Insurance Advocate shall report to the Com- ized designee of the National Flood Insur- ernmental agency or unit thereof; mittee on Banking, Housing, and Urban Af- ance Advocate, such information or assist- ‘‘(4) request the production of information, fairs of the Senate and the Committee on Fi- ance. documents, reports, answers, records (includ- nancial Services of the House of Representa- ‘‘(B) REFUSAL TO COMPLY.—Whenever infor- ing phone records), accounts, papers, emails, tives on the activities of the Office of the mation or assistance requested under this hard drives, backup tapes, software, audio or Flood Insurance Advocate during the fiscal subsection is, in the judgment of the Na- visual aides, and any other data and docu- year ending during such calendar year. Any tional Flood Insurance Advocate, unreason- mentary evidence necessary in the perform- such report shall contain a full and sub- ably refused or not provided, the National ance of the functions assigned to the Na- stantive analysis of such activities, in addi- Flood Insurance Advocate shall report the tional Flood Insurance Advocate by this sec- tion to statistical information, and shall— circumstances to the Director without delay. tion; ‘‘(i) identify the initiatives the Office of ‘‘(f) COMPLIANCE WITH GAO STANDARDS.—In ‘‘(5) request the testimony of any person in the Flood Insurance Advocate has taken on carrying out the responsibilities established the employ of any insurance company or as- improving services for insureds under the na- under this section, the National Flood Insur- sociated entity participating in the National tional flood insurance program and respon- ance Advocate shall— Flood Insurance Program, described under siveness of the Federal Emergency Manage- ‘‘(1) comply with standards established by subsection (b)(5)(A), or any successor to such ment Agency with respect to such initia- the Comptroller General of the United States company or entity, including any member of tives; for audits of Federal establishments, organi- the board of such company or entity, any ‘‘(ii) describe the nature of recommenda- zations, programs, activities, and functions; trustee of such company or entity, any part- tions made to the Director under subsection ‘‘(2) establish guidelines for determining ner in such company or entity, or any agent (i); when it shall be appropriate to use non-Fed- or representative of such company or entity; ‘‘(iii) contain a summary of the most seri- eral auditors; ‘‘(6) select, appoint, and employ such offi- ous problems encountered by such insureds, ‘‘(3) take appropriate steps to assure that cers and employees as may be necessary for including a description of the nature of such any work performed by non-Federal auditors carrying out the functions, powers, and du- problems; complies with the standards established by ties of the Office subject to the provisions of ‘‘(iv) contain an inventory of any items de- the Comptroller General as described in title 5, United States Code, governing ap- scribed in clauses (i), (ii), and (iii) for which paragraph (1); and pointments in the competitive service, and action has been taken and the result of such ‘‘(4) take the necessary steps to minimize the provisions of chapter 51 and subchapter action; the publication of proprietary and trade se- III of chapter 53 of such title relating to clas- ‘‘(v) contain an inventory of any items de- crets information. sification and General Schedule pay rates; scribed in clauses (i), (ii), and (iii) for which ‘‘(g) PERSONNEL ACTIONS.— ‘‘(7) obtain services as authorized by sec- action remains to be completed and the pe- ‘‘(1) IN GENERAL.—The National Flood In- tion 3109 of title 5, United States Code, at riod during which each item has remained on surance Advocate shall have the responsi- daily rates not to exceed the equivalent rate such inventory; bility and authority to— prescribed for the rate of basic pay for a po- ‘‘(vi) contain an inventory of any items de- ‘‘(A) appoint regional flood insurance advo- sition at level IV of the Executive Schedule; scribed in clauses (i), (ii), and (iii) for which cates in a manner that will provide appro- and no action has been taken, the period during priate coverage based upon regional flood in- ‘‘(8) to the extent and in such amounts as which each item has remained on such inven- surance program participation; and may be provided in advance by appropria- tory and the reasons for the inaction; ‘‘(B) hire, evaluate, and take personnel ac- tions Acts, enter into contracts and other ar- ‘‘(vii) identify any Flood Insurance Assist- tions (including dismissal) with respect to rangements for audits, studies, analyses, and ance Recommendation which was not re- any employee of any regional office of a other services with public agencies and with sponded to by the Director in a timely man- flood insurance advocate described in sub- private persons, and to make such payments ner or was not followed, as specified under paragraph (A). as may be necessary to carry out the provi- subsection (i); ‘‘(2) CONSULTATION.—The National Flood sions of this section. ‘‘(viii) contain recommendations for such Insurance Advocate may consult with the ‘‘(d) ADDITIONAL DUTIES OF THE NFIA.—The administrative and legislative action as may appropriate supervisory personnel of the National Flood Insurance Advocate shall— be appropriate to resolve problems encoun- Federal Emergency Management Agency in ‘‘(1) monitor the coverage and geographic tered by such insureds; carrying out the National Flood Insurance allocation of regional offices of flood insur- ‘‘(ix) identify areas of the law or regula- Advocate’s responsibilities under this sub- ance advocates; tions relating to the national flood insurance section. ‘‘(2) develop guidance to be distributed to program that impose significant compliance ‘‘(h) OPERATION OF REGIONAL OFFICES.— all Federal Emergency Management Agency burdens on such insureds or the Federal ‘‘(1) IN GENERAL.—Each regional flood in- officers and employees having duties with re- Emergency Management Agency, including surance advocate appointed pursuant to sub- spect to the national flood insurance pro- specific recommendations for remedying section (d)— gram, outlining the criteria for referral of these problems; ‘‘(A) shall report to the National Flood In- inquiries by insureds under such program to ‘‘(x) identify the most litigated issues for surance Advocate or delegate thereof; regional offices of flood insurance advocates; each category of such insureds, including ‘‘(B) may consult with the appropriate su- ‘‘(3) ensure that the local telephone num- recommendations for mitigating such dis- pervisory personnel of the Federal Emer- ber for each regional office of the flood in- putes; gency Management Agency regarding the

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3964 CONGRESSIONAL RECORD — SENATE May 8, 2008 daily operation of the regional office of the toward avoiding duplication and insuring ef- between the leaders, or their designees, flood insurance advocate; fective coordination and cooperation; and prior to the commencement of the ‘‘(C) shall, at the initial meeting with any ‘‘(B) may participate, upon request of the votes ordered under a previous order; insured under the national flood insurance Inspector General of the Department of that prior to each vote there be 2 min- program seeking the assistance of a regional Homeland Security, in any audit or inves- office of the flood insurance advocate, notify tigation conducted by the Inspector General. utes of debate equally divided and con- such insured that the flood insurance advo- ‘‘(2) WITH STATE REGULATORS.—In carrying trolled in the usual form; that after the cate offices operate independently of any out any investigation or audit under this first vote in the sequence, each suc- other Federal Emergency Management section, the National Flood Insurance Advo- ceeding vote be limited to 10 minutes Agency office and report directly to Congress cate shall coordinate its activities and ef- in duration; that other provisions of through the National Flood Insurance Advo- forts with any State insurance authority the previous order remain in effect; cate; and that is concurrently undertaking a similar provided further that if cloture is in- ‘‘(D) may, at the flood insurance advo- or related investigation or audit. voked on the motion to proceed to H.R. cate’s discretion, not disclose to the Director ‘‘(3) AVOIDANCE OF REDUNDANCIES IN THE contact with, or information provided by, RESOLUTION OF PROBLEMS.—In providing any 980, then all postcloture time be yield- such insured. assistance to a policyholder pursuant to ed back, the motion to proceed be ‘‘(2) MAINTENANCE OF INDEPENDENT COMMU- paragraphs (1) and (2) of subsection (b), the agreed to, and the motion to reconsider NICATIONS.—Each regional office of the flood National Flood Insurance Advocate shall be laid upon the table. insurance advocate shall maintain a separate consult with the Director to eliminate, The PRESIDING OFFICER. Without phone, facsimile, and other electronic com- avoid, or reduce any redundancies in actions objection, it is so ordered. munication access. that may arise as a result of the actions of Mr. DODD. Madam President, after ‘‘(i) FLOOD INSURANCE ASSISTANCE REC- the National Flood Insurance Advocate and the vote on the Durbin amendment, the claims appeals process described under OMMENDATIONS.— there will be no further votes today, no ‘‘(1) AUTHORITY TO ISSUE.—Upon applica- section 62.20 of title 44, Code of Federal Reg- tion filed by a qualified insured with the Of- ulations. session on Friday, and no votes on fice of the Flood Insurance Advocate (in such ‘‘(l) AUTHORITY OF THE DIRECTOR TO LEVY Monday. Let me turn to the Senator form, manner, and at such time as the Direc- PENALTIES.—The Director and the Advocate from Illinois. tor shall by regulation prescribe), the Na- shall establish procedures to take appro- The PRESIDING OFFICER. The Sen- tional Flood Insurance Advocate may issue a priate action against an insurance company, ator from Illinois is recognized. including monetary penalties and removal or Flood Insurance Assistance Recommenda- AMENDMENT NO. 4715 suspension from the program, when a com- tion, if the Advocate finds that the qualified Mr. DURBIN. It is my understanding insured is suffering a significant hardship, pany refuses to cooperate with an investiga- such as a significant delay in resolving tion or audit under this section or where a that amendment No. 4715 is now pend- claims where the insured is incurring signifi- finding has been made of improper conduct. ing. cant costs as a result of such delay, or where ‘‘(m) DEFINITIONS.—For purposes of this The PRESIDING OFFICER. The Sen- the insured is at risk of adverse action, in- subsection: ator is correct. cluding the loss of property, as a result of ‘‘(1) ASSOCIATED ENTITY.—The term ‘associ- Mr. DURBIN. And I have 2 minutes to ated entity’ means any person, corporation, the manner in which the flood insurance speak? laws are being administered by the Director. or other legal entity that contracts with the Director or an insurance company to provide The PRESIDING OFFICER. Yes. ‘‘(2) TERMS OF A FLOOD INSURANCE ASSIST- adjustment services, benefits calculation Mr. DURBIN. Madam President, if I ANCE RECOMMENDATION.—The terms of a could say briefly, if you are in the Flood Insurance Assistance Recommenda- services, claims services, processing services, tion may recommend to the Director that or record keeping services in connection process of remapping, for flooding pur- the Director, within a specified time period, with standard flood insurance policies made poses, a watershed area, this amend- cease any action, take any action as per- available under the national flood insurance ment says that until you have com- mitted by law, or refrain from taking any ac- program. pleted both sides of the river—and in tion, including the payment of claims, with ‘‘(2) INSURANCE COMPANY.—The term ‘insur- my case both Illinois and Missouri— ance company’ refers to any property and respect to the qualified insured under any you don’t increase flood insurance other provision of law which is specifically casualty insurance company that is author- ized by the Director to participate in the rates for one side of the river. So the described by the National Flood Insurance entire watershed has to be mapped and Advocate in such recommendation. Write Your Own program under the national flood insurance program. completed before any new rates apply. ‘‘(3) DIRECTOR RESPONSE.—Not later than 15 days after the receipt of any Flood Insurance ‘‘(3) NATIONAL FLOOD INSURANCE ADVO- This will not disadvantage either side Assistance Recommendation under this sub- CATE.—The term ‘National Flood Insurance of the river. It says they will all be an- section, the Director shall respond in writing Advocate’ includes any designee of the Na- nounced at the same time. as to— tional Flood Insurance Advocate. I yield the floor. ‘‘(A) whether such recommendation was ‘‘(4) QUALIFIED INSURED.—The term ‘quali- The PRESIDING OFFICER. Who followed; fied insured’ means an insured under cov- erage provided under the national flood in- yields time? ‘‘(B) why such recommendation was or was Mr. DODD. Madam President, I think not followed; and surance program under this title. ‘‘(n) FUNDING.—Pursuant to section we are prepared to vote on the Durbin ‘‘(C) what, if any, additional actions were 1310(a)(8), the Director may use amounts taken by the Director to prevent the hard- amendment. from the National Flood Insurance Fund to ship indicated in such recommendation. The PRESIDING OFFICER. All time fund the activities of the Office of the Flood ‘‘(4) RESPONSIBILITIES OF DIRECTOR.—The is yielded back. Advocate in each of fiscal years 2009 through Director shall establish procedures requiring Mr. DURBIN. Madam President, I ask 2014, except that the amount so used in each a formal response consistent with the re- such fiscal year may not exceed $5,000,000 for the yeas and nays. quirements of paragraph (3) to all rec- and shall remain available until expended. The PRESIDING OFFICER. Is there a ommendations submitted to the Director by Notwithstanding any other provision of this sufficient second? There is a sufficient the National Flood Insurance Advocate title, amounts made available pursuant to second. under this subsection. this subsection shall not be subject to offset- The question is on agreeing to the ‘‘(j) REPORTING OF POTENTIAL CRIMINAL ting collections through premium rates for amendment, as modified, of the Sen- VIOLATIONS.—In carrying out the duties and flood insurance coverage under this title.’’. responsibilities established under this sec- ator from Illinois. tion, the National Flood Insurance Advocate Mr. DODD. Madam President, I ask The clerk will call the roll. shall report expeditiously to the Attorney unanimous consent that no further The legislative clerk called the roll. General whenever the National Flood Insur- amendments be in order except as pro- Mr. DURBIN. I announce that the ance Advocate has reasonable grounds to be- vided in the previous agreement with Senator from California (Mrs. BOXER), lieve there has been a violation of Federal respect to the McConnell and Reid the Senator from New York (Mrs. CLIN- criminal law. amendments; that the previous order TON), the Senator from Illinois (Mr. ‘‘(k) COORDINATION.— with respect to rollcall votes on Mon- OBAMA), the Senator from Washington ‘‘(1) WITH OTHER FEDERAL AGENCIES.—In day, May 12, be modified to reflect that (Mrs. MURRAY), and the Senator from carrying out the duties and responsibilities the previously ordered votes occur on Nevada (Mr. REID) are necessarily ab- established under this section, the National Flood Insurance Advocate— Tuesday, May 13, after the Senate con- sent. ‘‘(A) shall give particular regard to the ac- venes and following the opening se- Mr. KYL. The following Senators are tivities of the Inspector General of the De- quence of events, there be 60 minutes of necessarily absent: the Senator from partment of Homeland Security with a view debate equally divided and controlled Nevada (Mr. ENSIGN), the Senator from

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3965 Arizona (Mr. MCCAIN), and the Senator the Nation to flooding. More than 12 money for FEMA to update and digitize from Virginia (Mr. WARNER). percent of land is designated under the Nation’s flood hazard maps. Most The PRESIDING OFFICER. Are there NFIP as a special flood hazard area. An FEMA maps contain 30-year old data. any other Senators in the chamber de- estimated 68,000 Maryland homes and Think of that. How many of us live in siring to vote? buildings are located within the flood houses or even neighborhoods that The result was announced—yeas 68, plain, representing nearly $8 billion in were built in the last 30 years? Home- nays 24, as follows: assessed value. Nearly 64,000 Maryland- owners and officials can’t make good [Rollcall Vote No. 122 Leg.] ers held NFIP policies as of February decisions about risk and development YEAS—68 2007, and in the hurricane seasons from based on such woefully outdated infor- mation. Akaka Feinstein Mikulski 2002 to 2006, a span that included Hurri- Alexander Graham Murkowski cane Isabel, insured flood losses in At present, FEMA’s map moderniza- Baucus Grassley Nelson (FL) Maryland totaled approximately $177 tion program updates old maps by put- Bayh Gregg Nelson (NE) million. ting them in digital form without Bennett Harkin Pryor Biden Hatch The program appeared to work well changing any of the information. So if Rockefeller you live in a house or on a street that Bingaman Inouye Salazar for many years. The revenues brought Bond Isakson Sanders in through insurance premiums cov- only came into existence in the past 30 Brown Johnson Schumer ered payments made to individuals in years or so, you wouldn’t be on the old Byrd Kennedy Sessions Cantwell Kerry the wake of flooding disasters. Today, map or the new ‘‘updated’’ map. Mary- Shelby Cardin Klobuchar the NFIP has been reported to save land officials, to their credit, were Smith Casey Kohl taxpayers over $1 billion annually in among a handful of State and local of- Chambliss Landrieu Snowe Coleman Lautenberg Specter flood losses that, without the program, ficials nationwide who realized that Conrad Leahy Stabenow would be paid by the taxpayers in the mere digitization alone isn’t enough, Corker Levin Stevens form of emergency disaster relief. But and they contributed their own time Tester Cornyn Lieberman the 2005 hurricane season, which and data to update the content, as Craig Lincoln Voinovich Dodd Martinez Webb brought Hurricanes Katrina, Rita, and well. Those maps will all be completed Domenici McCaskill Whitehouse Wilma, created a need on an entirely over the next 5 years. I am proud of my Dorgan McConnell Wicker new scale, a scale that not only over- State’s emergency management offi- Durbin Menendez Wyden whelmed the program but exposed seri- cials for showing that initiative, and I NAYS—24 ous flaws in its design. am glad that this bill makes sub- Allard Collins Inhofe To pay out the estimated $19 billion stantive improvement to flood plain Barrasso Crapo Kyl in NFIP claims, the program had to maps the norm rather than the excep- Brownback DeMint Lugar Bunning Dole Reed borrow almost $18 billion from the U.S. tion. Burr Enzi Roberts Treasury. Government-subsidized pre- One of the biggest lessons we Mary- Carper Feingold Sununu miums for certain policyholders, out- landers learned in the wake of Hurri- Coburn Hagel Thune dated flood insurance rate maps, and cane Isabel in 2003 was that people Cochran Hutchison Vitter other program weaknesses undermined didn’t have good information about NOT VOTING—8 NFIP’s ability to meet the demands flood insurance. Some people who Boxer McCain Reid created in the 2005 season. Those flaws should have had insurance didn’t. Some Clinton Murray Warner have also created false incentives over who had it didn’t understand it, had Ensign Obama the years, encouraging developers and too little coverage, or too much cov- The amendment (No. 4715), as modi- homeowners to build and then rebuild erage. fied, was agreed to. in flood-prone and environmentally S. 2284 will improve consumer edu- Mr. DURBIN. Madam President, I sensitive areas. cation. It takes steps to ensure that all move to reconsider the vote. With the 2008 hurricane season less homeowners at high risk of flood dam- Mr. LEVIN. I move to lay that mo- than a month away, we have to fix the age participate in the program and tion on the table. program’s flaws and put it back on that more homeowners know about the The motion to lay on the table was sound financial footing. S. 2284 does flood risks to their property and about agreed to. just that, and I want to applaud Sen- the insurance options available to Mr. CARDIN. Madam President, I ators DODD and SHELBY and my other them. It requires every person who rise to speak today in favor of S. 2284, colleagues on the Senate Banking buys a home in an area of elevated legislation that would reform and mod- Committee for their excellent work. flood risk to learn about that risk at ernize the National Flood Insurance First and foremost, S. 2284 restores their settlement and be given an oppor- Program, NFIP. Congress created NFIP the program’s solvency by forgiving tunity to purchase insurance. It places in 1968 in the wake of a series of ter- FEMA’s debt to the Treasury. FEMA the burden on lenders to make sure all rible hurricanes, the worst of which isn’t able to repay it; the interest alone people who need to have insurance ac- was Hurricane Betsy, a storm that dev- is approximately $900 million annually, tually get it. It would provide grant astated New Orleans in 1965. After ob- equal to almost 40 percent of annual money to communities to conduct edu- serving the ad hoc nature of disaster premium income. In order to keep cational and outreach activities to en- relief efforts, all of which came at tax- rates affordable, we have to accept that courage people to purchase flood insur- payer expense, Congress saw an urgent loss and turn our attention to improv- ance and learn what steps they can need for a better way to handle the ing the program so it is better able to take to mitigate against flood damage. risks and losses associated with flood pay claims in the future. Last but not least, S. 2284 creates an damage. S. 2284 takes several steps to make Office of the Flood Insurance Advocate NFIP, which is administered by the sure that the program’s revenues will to assist policyholders with any prob- Federal Emergency Management Agen- be sufficient to meet those future lems they have with their NFIP claims. cy, FEMA, provided insurance to indi- needs. The legislation moves several Rates that reflect risk, better flood viduals living in flood-prone areas who types of homeowners, who previously plain maps, more expansive participa- weren’t able to get private insurance. received subsidized rates, toward pre- tion, and better information: these But it did much more. It required map- miums that match their actual risk of changes will make the program self- ping to identify areas at risk for flood- flooding. It expands the categories of sufficient once again. But even more ing and community floodplain mitiga- people who need to buy flood insurance important, by providing homeowners, tion and management measures to help to better reflect the categories of peo- communities, developers, and emer- prevent flood damage in the future. ple actually at high risk. It includes gency management and planning offi- The program has been important in provisions to encourage more home- cials with accurate information about my State of Maryland. According to owners, even those outside the highest flood risk and its associated costs, S. the 2005 report of the Maryland Emer- risk areas, to buy insurance. 2284 reverses some of the program’s gency Management Agency, Maryland S. 2284 takes steps to ensure we know false incentives to build and live in dis- is the third most vulnerable State in who is at high risk. It authorizes more aster-prone areas.

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3966 CONGRESSIONAL RECORD — SENATE May 8, 2008 When hurricane season starts this As we have had those debates, we use to recycle the aluminum cans you year, it will bring greater risk to many have seen gas prices rise to record lev- put in the special bin on the curb, the States, Maryland included. An April els. We have passed a ‘‘renewable fuels glass, the metal, the plastic, well it 2007 Intergovernmental Panel on Cli- mandate’’ that looks less encouraging comes from coal. And if you had an mate Change report found that global with every new study that is released, electric car now and wanted to plug it warming will result in more flooding and we have sent more and more in to recharge, that energy would like- through more intense hurricanes, re- money to countries that do not support ly come from coal. Coal supplies more duced snow pack, and sea level rise. We our ideals of freedom and democracy. than 50 percent of our Nation’s elec- are experiencing those changes today Because of that, it is my intention tricity and we have enough of it to last in Maryland. here today to inject a little reality, a us for more than 225 maybe 500 years. We have over 4,000 miles of coastline, little common sense into the energy Coal is what is going to pave the way more than the State of California, and debate. I want us to take a realistic to a completely renewable energy fu- historic tide-gauge records show sea look at how we get there from here. ture. But its not going to be the coal levels have risen one foot within Mary- The ‘‘there’’ is an America that pro- you are picturing in your head right land’s coastal waters over the last cen- duces more clean, renewable energy now. It’s not going to be the black tury. Due in part to naturally occur- than we can possibly consume. The lump that Santa gives to ill-behaved ring regional land subsidence, Mary- ‘‘here’’ and now is an America that is kids on his list. It’s not the dirty, land is currently experiencing sea level largely dependent on foreign govern- dusty coal of Dickens’ Victorian Lon- rise at a rate nearly double the world- ments for the energy we need, the en- don. No, what I am talking about is wide average. Thirteen charted islands ergy we can’t do without—the energy plentiful clean coal that we use our in- and large expanses of those critical that is the lifeblood of our economy; genuity and our resources to turn into tidal wetlands in the Chesapeake Bay the energy that makes our way of life green coal. have already disappeared. possible. Where we find ourselves now You are worried about climate These changes make us more vulner- is the hole that the failed planning of change and support the use of clean- able to storm surges. Allstate Insur- the past and realistic ideology has put burning natural gas. Good. Then you ance, one of our largest insurers, an- us in. We have got to get out. We have should support the projects underway nounced this past year that it would got to get out for the sake of our chil- right now that will convert coal into stop writing new homeowners’ policies dren and for the sake of Americans who that natural gas or carbon sequestra- in coastal areas of my State. The rea- are struggling to pay their bills today. tion of 50 percent of the carbon from son they won’t give insurance to home- For the most part, we can all agree coal, which makes coal just as ‘‘clean’’ owners in coastal areas is because they on where we want to go. We want more as natural gas. We are developing tech- say a warmer Atlantic Ocean will lead clean energy. We want to import less nology to efficiently and cost-effec- to more and stronger hurricanes hit- foreign oil. We want improved energy tively convert coal into low carbon, ting the Northeast. efficiency. We can also agree that low sulfur diesel, and to convert coal It is critical that we shore up the Na- where we are is not acceptable. Its the into low carbon gasoline so we can can- tional Insurance Flood Program so road we travel, the pathway we take to cel those trips to Saudi Arabia where that it is ready to support Marylanders a better future that we have been argu- we have our hands out begging them to and all Americans in times of need. S. ing about for decades. The arguments I increase production of oil. Look, to- 2284 does that without increasing in- have seen over the past dozen years or morrow we are not going to be able to centives to build in disaster-prone more center not on economic health of jump into our hover car that is pow- areas or destroy environmentally sen- our Nation but on environmental ered by common household trash. We sitive areas. That is a tough line to health. OK. That is fine with me. We need to develop what we have right navigate, but this bill does it well. I am can talk about hydrogen fuel cells, now alongside the fuels of the future. proud to offer my support. solar panels and wind turbines and we Instead of running from coal, we should f should. All these energy sources and invest in its abundance, in its power many other renewables are going to be MORNING BUSINESS and its potential. Instead of running a part of the solution, but overnight, from coal, America needs to run on Mr. DURBIN. Madam President, I ask they cannot replace the fuel sources we coal, green coal. unanimous consent that the Senate use today. The technology is not there. George Washington Carver is one of enter into a period for morning busi- The infrastructure is not there, and the my heroes for what he did with the ness, with Senators allowed to speak will of the American people to switch peanut. He found over 300 ways that for up to 10 minutes each. to different, more expensive fuel American farmers could use the pea- The PRESIDING OFFICER. Without sources is not there. It is one thing to nut, including as soap, facial cream, objection, it is so ordered. say, yes, let’s go green, but it’s another The Senator from Wyoming is recog- thing to pull the green out of your wal- shampoo and even ink. What we need nized. let to pay for it. Technology takes now is a George Washington Carver of coal—and I believe several are out f time to commercialize. Infrastructure takes time to build and the attitudes there right now ready to invent. They ENERGY SECURITY and willingness of many Americans to just need a little bit more encourage- Mr. ENZI. Madam President, I re- embrace a new energy market, a mar- ment instead of the ‘‘can’t do’’ attitude cently returned from a trip around Wy- ket that could be more expensive, will that I hear from some opponents of oming. The focus of my trip was the take time to occur. coal. need for change in our health care sys- What do we do until we get there? Over the next few months, as we de- tem. I have spoken about that issue on What do we do with the energy sources bate energy issues in the Senate, I will the floor of the Senate on a number of we have now? We make them better. be talking with my colleagues about occasions, and while improving our Na- We use them more efficiently. We the need to develop the energy sources tion’s health care system is essential, make them clean. We make them we will use in the future, some of here today to speak on another issue of green. And what is America’s most which must be cleaner, more efficient great importance to my constituents. readily accessible energy source that versions of the energy sources we use That issue relates to our Nation’s en- we already have the infrastructure in today. We need all the energy we can ergy security. We have debated meas- place to use? What is the 800-pound go- get to power America, and I look for- ures to tax one type of energy to pro- rilla in the room that unfortunately so ward to working on that solution. vide tax incentives for other industries. many of our political leaders are ignor- I have been paying attention to what We have debated, without success, the ing or worse yet, persecuting? It’s coal. China is doing. They have figured out idea of opening up more of America to When you turn on your computer, that the future power of the world is in energy production and the Senate will when you flick that light switch or energy, and they are buying it up any- eventually take up legislation related turn on the television, it’s probably where they can. They are even buying to climate change. powered by coal. Most of the energy we U.S. coal.

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3967 But I wish to speak today in a little it will change is if we act to make the It is very interesting that in one of more detail on an issue that is affect- process for permitting a refinery more those energy packages, that being of- ing everyone in the Nation, and that reasonable. fered by the Senator from New Mexico, issue is the rising price of gasoline and The bill addresses the need to fairly Mr. DOMENICI, it will have a provision diesel fuel. The rising prices are dis- compensate States that allow for en- for drilling in the Outer Continental proportionately affecting my constitu- ergy production to occur on their lands Shelf. Now, we have gone through this ents in Wyoming, who are oftentimes by repealing a provision to withhold 2 drill about drilling several times, the forced to drive long distances to get to percent of the revenue States receive last of which, I want to remind the and from work, and then all over the to pay for ‘‘administrative costs.’’ This Senate, when the pro drilling for oil country I am hearing from truckers, provision is particularly harmful to forces wanted an additional 2 million usually small company truckers who Wyoming and must be repealed imme- acres in the Gulf of Mexico, which have a fixed contract to deliver a prod- diately. The Federal Government’s ac- would go east in the eastern Gulf of uct and no fuel escalation clause. I ex- tions toward the Sates regarding min- Mexico headed straight toward Tampa, pect, from a financial literacy situa- eral royalties are the actions of a bully FL, we worked out something that tion, that they have learned something and a thief. I am standing up to this would satisfy all of the parties; that about that, but they are still tied into bully. I hope my colleagues will join they would not have 2 million acres but those and they are going broke doing me. Your State could be bullied next. they would have 8 million acres—8 mil- what they agreed to do because of the Don’t forget that. lion acres, not 2 million acres. But it This bill also addresses our Nation’s cost of fuel. They are visiting with all would be further to the south, not to need to find alternatives to oil by pro- of us. the east and, therefore, would not moting coal to diesel fuel. Coal is our The Senate needs to take up action, harm the interests of Florida or the Nation’s most abundant energy source and there is an amendment before us U.S. military. and can be made into low sulfur diesel that will help all Americans. I remind my colleagues that the U.S. through a process that has been in ex- With Americans hurting, we need to military’s largest testing and training istence for years. We need to build coal do something—anything to reduce gas- area in the world is almost the entire to diesel plants in the United States in oline prices. But, instead of working on Gulf of Mexico off of Florida. It is the order to increase our energy security solutions for one of the single most im- pilot training for the new F–22 out of and this bill has provisions to promote portant issues confronting the Amer- Tindale Air Force Base in Panama this important and much needed pol- ican people, the majority sticks its fin- City. They have to have wide areas gers in its ears and loudly sings cam- icy. Any one of provisions I have men- with which to do dog fighting, not at paign rhetoric chorus and verse. Last tioned will help our Nation’s energy submach but at 1.5 mach, and the turn- week, as oil shot up above $115 per bar- situation and we need to act now. If ing radius at 1.5 mach is extraordinary. rel, we held one vote. We did not vote the majority doesn’t like every part of When are you doing this with live fire on Tuesday, Wednesday, Thursday or it, that is fine. Let’s get in there and exercises, you can imagine that you do Friday. This week, we were out of ses- pass the parts we can agree on. Let’s not want anything down there on the sion on Monday. This is not the way we change the parts we can’t agree on. surface of the water. By the way, that should legislate when Americans can- Let’s throw some of the parts out. I is also why all of the new F–35s, the not afford to fill up their tanks. We was working on an 80 percent rule, fig- new joint strike fighter pilot training, need to do something about energy and uring we can usually agree on 80 per- when that fighter is developed, will we need to do it now. cent of anything and if we concentrate also be in that area. I am proud to be a cosponsor of the on the 80 percent, we can get it done It is also the reason the Navy now Domestic Energy Production Act of and leave the other 20 percent to the sends its squadrons down to the Key 2008 that was recently introduced by pundits. But we need to get out there West Naval Air Station at Boca Chica, Senator DOMENICI. The legislation in- and pass the parts we agree on. We because when they lift off the runway cludes a number of important provi- need to get something done. at Boca Chica, in 2 minutes they are sions that will have a positive effect on There will be plenty of credit to go over restricted air space where they our Nation’s energy situation. Some around. Congress cannot sit back and can do their pilot training. But it is provisions are designed to help hard do nothing as American pocketbooks also the area where we are testing working consumers today. Other provi- are bleeding. Right now, the credit for some of our most sophisticated weap- sions have a long term impact that will that has to go to the majority. ons systems, many of which are with make it so that we are not as depend- I hope all my colleagues join me in live ordnance, and you simply cannot ent on oil barons in the Middle East supporting the Domestic Energy Pro- have oil rigs down there on the surface and foreign dictators to get our energy. duction Act of 2008, even though we do of the water where you are doing all of There are a number of good provi- not get to vote on it tomorrow and we this in furtherance of the training and sions in this bill that will make a dif- don’t get to vote on it Monday. We are the testing in order to have the best ference. The bill allows for the develop- not going to get to vote on it until military in the world. ment of domestic energy sources that Tuesday. But we ought to be making Yet it is coming back. It is coming are currently off limits. A major rea- some difference by Tuesday. back again. Now this time it is a little son we are seeing high prices is the Like I say, we can revise it, we can easier for us because we etched it into lack of domestic energy supplies in the change it, we can throw parts out, but law as to that additional lease area for face of growing energy demands. It al- we have got to do something. America drilling in the Gulf, and you have got lows for responsible energy production is complaining about the price of gas. I to change the law. Until the last time, in the Outer Continental Shelf and for understand that. I look forward to see- it had always been under a Presidential limited, environmentally safe energy ing everyone next week to make a dif- moratorium. So it will be more dif- production in the Arctic National Wild- ference for America. ficult for them to have to change this. life Refuge. Allowing for this produc- I yield the floor. But I bring this up because the atti- tion will help us to lessen our imports The PRESIDING OFFICER. The Sen- tude is tunnel vision about drill, drill, of energy. What we produce in the ator from Florida is recognized. drill. United States we do not have to send OFFSHORE DRILLING That is not how we are going to solve money to other countries for. Mr. NELSON of Florida. Madam the problem. I mean, are we not going The bill addresses the need to build President, next Tuesday—not Monday to wake up with $120 per barrel oil new refineries. There is not enough re- but Tuesday—we are going to have a prices and, who knows, with the tight fining capacity in the United States to series of votes and ultimately get to world oil market, if it is not going to handle the demand that we have. Yet the final vote on the flood insurance keep going up? our policies are so onerous that there bill. And miraculously, out of the air And why is it at $120? We have had has not been a new refinery built in the comes a couple of energy packages side testimony here in the Senate from oil United States in more than 30 years. by side that we are going to be voting executives who say the typical supply- This needs to change, and the only way on. demand on the world market ought to

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3968 CONGRESSIONAL RECORD — SENATE May 8, 2008 have the price of oil at $55 per barrel. And, of course, if we had the political The PRESIDING OFFICER. Without If that testimony is accurate, why the will, we could not only do the miles per objection, it is so ordered. difference then between $55 and $120? gallon, we would put the money into f I think part of the answer to that the research and development to ulti- question is, you look at history. You mately get to cellulosic ethanol so we LAW OF THE SEA TREATY see these spikes whenever there is an would not be making ethanol from Ms. MURKOWSKI. Madam President, unsettling condition in the world. You what we need to eat, and instead we many of us have come to the floor, cer- saw that in the early 1970s in the oil would be making it from fiber, from tainly this past week—all this year— embargo. You saw that again in the that which we throw away. If we sum- talking about increasing energy prices. late 1970s with the Iranian capture of mon the political will, we would get se- There has been a lot of commentary the American Embassy people and rious about conservation measures and about whom to blame. What do we do, holding them hostage. You saw it again renewable fuels such as wind and solar, how do we reduce the price of oil, how at the beginning of the 1990s with the all the more than we are now. We do we address the predicament we are first gulf war, when Saddam Hussein would get serious about a major R&D in as a nation that is so very heavily had moved on Kuwait. You have seen it effort and pouring the money into it in dependent on energy for our economic again in this decade with the Iraq situ- order to start developing the engine of strength? I have certainly done my ation, and you see it now with the jit- the future that does not depend on any share of talking about the need to in- ters about what is happening in the kind of petrol, such as hydrogen, or crease domestic production of oil and Middle East. perfecting these batteries so we can gas, particularly in the State of Alas- You see it also in the unsettling rela- have an all-electric vehicle. That is ka. We believe we have great opportu- tionship we now have with the Presi- what we would be doing if we sum- nities up there and can be doing more dent of Venezuela, Hugo Chavez, who moned the political will. At the end of to address it. What we haven’t had an bombastically keeps threatening to cut the day, that is what we are going to opportunity to bring up in the debate off oil. Now, that is a hollow promise have to do. It is going to have to be the is the potential for a vast reservoir of because we have the refineries that new President who does it. energy that is available to the United have to process his grade of crude. But On this subject I will close by saying, States in the Arctic, in the far north, over time he could change. Neverthe- America has a historical tendency to and the fact that we could lose out to less, it unsettles the markets. drag its feet until we are abruptly other nations if we are not more By the way, we get 14 percent of our shoved up against the wall and we have proactive in asserting our claims to oil daily, our daily consumption of oil, to do something, and you see this these resources. from Venezuela. throughout our two centuries of his- I have been on the floor many times You see it also with regard to Nige- tory. talking about the Arctic Coastal Plain ria. Mark my word. Nigeria is an acci- There was at a time, for example, and the potential in ANWR. We believe dent waiting to happen with regard to during the Korean war, the Soviets had there is anywhere between 10 to 16 bil- the 12 percent of our daily consumption the high ground. Their MiGs could fly lion barrels of economically recover- of oil that comes from Nigeria. And al- higher than our jets. Again in 1958 they able oil, the largest remaining onshore ready the battery, the thievery, the had the high ground, because they put petroleum field in North America. But kidnappings, all of that being done by up the first satellite, Sputnik. Again in even further to the north, beyond criminal thugs, that is one threat. But 1961 they had the high ground, when ANWR, off the coast of Alaska and be- I recall for the Senate the fact that in they put up Yuri Gagarin, the first yond, this is where we believe an northern Nigeria, al-Qaida is ascend- human to orbit the Earth. unquantifiable amount of resource may We did not even have a vehicle that ing. So that is certainly one reason for lie. It is estimated that the Arctic may was powerful enough until 10 months the difference between what some peo- hold 25 percent of the entire world’s later when we put John Glenn in that ple have testified that the supply and undiscovered oil and gas resources. It flimsy Atlas that had a 20-percent demand would have oil at $55, and in- is enormous. That number is based on chance of failure, and finally got up. stead it is at $120. Again, they had the high ground a 2000 assessment by the U.S. Geologi- But there is another reason. That is when they rendezvoused, the first time cal Survey. In that survey, they only the speculation on oil futures and bid- in space, with two spacecraft. They looked at a few of the Arctic basins. ding the price up that gets us to this beat us to that. But then America sum- There is going to be a more detailed point. moned the political will when the survey that will be out. The survey is Now, I am giving all of this back- President said: We are going to the currently underway. The projection is ground to say, well, what do we do? Is Moon in 9 years and return. And we that the amount of 25 percent could be the answer the tunnel vision or myopic did. And we have the high ground now. lower—that, in fact, the amount of oil vision of drill, drill, drill, or do we do Now it is another complete subject— and gas in the Arctic region could go what we know we have to do? And the I will not get into it—about how we significantly higher. question is, where is most of our oil could be losing that high ground with What is the problem with this situa- consumed? It is in transportation. NASA, because NASA is not getting tion? The fact is, we believe the poten- Where in transportation is most of the enough resources for all of the things it tial in the Arctic under the ice may be oil consumed? It is in our personal ve- is trying to do and, therefore, it is not enormous, but we have no legal claim hicles. going to have a chance to achieve and as a nation to most of this oil or gas, So why do we not get serious, as we keep that high ground if we do not. But unless the United States becomes a had our first inkling that we are, by I will save that one for next week. party to the convention on the law of having more conservation with greater the sea. I can tell you, if we are not ISRAEL’S 60TH ANNIVERSARY miles per gallon? We passed in this I yield the floor. willing to claim it, if we do not step up Senate 35 miles per gallon phased in all The PRESIDING OFFICER. The Sen- to claim it, others certainly will. the way out until 2015. ator from Oregon is recognized. We had before the Foreign Relations In Japan today, they are running (The remarks of Mr. WYDEN are Committee the Convention on the Law around in their cars at 50 miles per gal- printed in today’s RECORD under of the Sea. It was before us. We have lon. In Europe today, they have got an ‘‘Morning Business.’’) had several hearings on it. It was re- average of 43 miles per gallon. Why Mr. WYDEN. I yield the floor and ported favorably out of the committee cannot America summon the political suggest the absence of a quorum. on October 31 of last year by a com- will to say we are going to do some- The PRESIDING OFFICER. The mittee vote of 17 to 4. thing different than what we have been clerk will call the roll. For those who are not familiar with doing in the past, and we are going to The assistant legislative clerk pro- the Law of the Sea Treaty, it allows, try to wean ourselves from dependence ceeded to call the roll. among other things, coastal states to on foreign oil which makes up 60 per- Ms. MURKOWSKI. I ask unanimous exert sovereign rights to all living and cent of our daily consumption. If we consent that the order for the quorum nonliving resources within its exclu- had the political will, we could do it. call be rescinded. sive economic zone out to 200 nautical

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3969 miles from its shores. Essentially, it is area the size of the State of California, Now, Australia’s claim, again, was the Outer Continental Shelf. But, in you would say that is hugely signifi- submitted in 2004. So the Commission addition, a nation can exert claim to cant to us as a nation in terms of our on the Limits of the Continental Shelf an extended Outer Continental Shelf if potential for additional resource. is actually moving on these submis- it can show that its continental shelf Now, I have shown you the lines on sions. The claim Australia made—and, extends beyond the 200-mile limit. this map. There are some who object to again, Australia is an island nation, so So last year, the Coast Guard Cutter ratification of the Law of the Sea Trea- they clearly have a great deal they can Healy went up north beyond Alaska, up ty and express concerns about sov- say lies off their continental shelf area, into the Arctic Ocean, to do a mapping ereignty. But for those who are con- but 2.5 million square kilometers of of the ocean floor there, to determine cerned about sovereignty, I would sug- continental shelf has now been added where the extent of that continental gest that if we are not party to the to their jurisdiction. This is an area shelf may extend. Convention on the Law of the Sea, approximately five times the State of Behind me I have a map or chart of there is a good chance Russia’s claim France. Now, for those of us who are the Arctic Ocean that was mapped by to the Arctic—which I have shown you, thinking a little bit closer to home, the Coast Guard Cutter Healy during following this yellow line, which is sub- that is three times the size of the State this last season of exploration. What stantial; it is about 45 percent of the of Texas. So, again, the jurisdiction the expedition showed us was that the Arctic Ocean—could be recognized cut- that has been extended to the nation of United States could potentially lay ting into what we believe to be our ex- Australia, because of their claim to ad- claim to an area about the size of the tended continental shelf. ditional Outer Continental Shelf areas, State of California as part of our ex- Now, let’s talk a little bit about the is significant. tended continental shelf. But we can- potential for the resources up there. It Martin Ferguson, who is Australia’s not do that without being a party to is estimated the area that Russia Minister for Resources and Energy, the Convention on the Law of the Sea. claims as its Arctic Ocean shelf—so noted that the Commission’s findings So to make it a little more real to this area in through here, as shown on ‘‘demonstrates that Australia’s effec- the situation—and I know it is difficult the map—could hold 580 billion barrels tive engagement in law of the sea mat- to see the map—but what you have of oil equivalent. And 90 billion of ters delivers results.’’ here is Alaska. It is upside down, but those barrels could be in the Chukchi Now, I mentioned nine submissions Alaska is at the top of the world, so we Sea and the East Siberian Sea, so close that have been submitted for extended felt it should be located at this angle. in to the State of Alaska. That is 90 continental shelf claims. All of these Here is the State of Alaska, the Cana- billion barrels of oil we have the poten- have been made since December of 2001, dian border, all of Canada, Greenland, tial to stake a claim to as well, but including Russia’s claim to half the Norway, and then Russia up through only, again, if we are party to the Con- Arctic and the resources it holds. We here. The red dotted line indicates the vention on the Law of the Sea. see that Australia’s claims have been limits of the permanent ice that you Now, some would take a look at this accepted. I believe it is only a matter have. So much of what you see in the map and say: Well, Russia is not going of time before other claims are accept- lighter area is continental shelf. to be able to get that. We all saw the ed as well. What you have with this line—that cover of Time magazine last year when I believe—I believe very strongly—it kind of follows in a very jagged way Russia took a little submarine down is in the best interests of the United Russia—this is Russia’s continental and basically planted a flag on the bot- States to be able to submit our claims. shelf claim. So they are essentially tom of the seabed, staking claim. It got We have the mapping. We can establish laying claim to this area from the people’s attention. I think folks looked the extension of the shelf, again, to a Chukchi Sea, the East Siberian Sea, at that and said: Well, they don’t have considerable area—the size of the State and down through here. any claim to that ocean seabed. On of California. I believe it is incumbent Norway has its extended continental what do they base that? So you look at upon us to assert our authority in this shelf claim. Here is Norway. They have this map and say: There is no reason area and to have a seat at the table in made a claim that their Outer Conti- Russia has any greater claim to 45 per- determining the validity of the claims nental Shelf should allow them access cent of the Arctic Ocean anymore than of the other nations. to the resources up to this green line. the United States or Canada, so it is If we think Russia should not be able Well, what we have here with the yel- not going to happen. to extend their jurisdiction out—as low line is the Russian extended conti- But for those who would doubt Rus- they have requested, with this pretty nental shelf area. So through their sia might have success with their impressive yellow line—to 45 percent of mapping, or their determination, they claim, I would ask you to look at what the Arctic Ocean, we want to be able to believe—the Russians believe—they has happened. Right now, you have a sit at the table and say why we believe could potentially lay claim to all of handful—probably, seven or eight—dif- they should not have the ability to this area in to the coast of Russia. ferent nations that have submitted to make that claim. Well, if we are not a Where it gets a little complicated is the Commission on the Limits of the party to the treaty, we are not sitting looking at the coastline of Alaska, rec- Continental Shelf their requests for ex- at the table, and we cannot contest the ognizing that we have claim to 200 tended continental shelf claim. validity of the claims of other nations. miles off the coast of Alaska, but with Russia submitted their claim back in We have the opportunity to stake a the mapping the Coast Guard Cutter 2001. Brazil is out there, and they sub- claim to an area of the seabed that we Healy has brought back, it dem- mitted their claim in 2004. Australia believe—we believe very strongly— onstrates we can potentially add an ad- submitted a claim in 2004, Ireland in likely contains billions of barrels of ditional 100 miles offshore from our ex- 2005, New Zealand in 2006. You also oil. We have the research to dem- isting 200 miles of exclusive economic have a joint submission by France, Ire- onstrate that the seabed is part of our zone, theoretically putting Alaska’s land, Spain, and the United Kingdom extended continental shelf. But we can- claim—and, therefore, the United that came about in 2006. Norway sub- not claim ownership of these resources States’s claim—to an area that would mitted their claim—that is going out without being a party to the Conven- be potentially on this side of the Cana- this far, as shown on the map—in 2006. tion on the Law of the Sea. dian border and coming down through France has submitted a claim last There are plenty of other reasons the Chukchi Sea, clearly overlapping year, as well as Mexico. why we should ratify this treaty— where the Russians have submitted On April 21 of this year, the Commis- whether it is to ensure that our Navy that they would have the potential for sion on the Limits of the Continental has the ability to freely navigate in a claim. Shelf confirmed that Australia’s claim international waters; or to provide our So you need to kind of appreciate the to an additional 2.5 million square kil- maritime industries with the legal cer- dynamics you have here. We have map- ometers of continental shelf beyond its tainty they need to carry out their ac- ping that indicates the U.S. conti- existing exclusive economic zone was tivities. nental shelf could extend out dramati- valid and has moved forward to allow I believe, again, very strongly, the cally. When you talk about a mass, an for that extended claim. ratification of the convention is a

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3970 CONGRESSIONAL RECORD — SENATE May 8, 2008 must. But I think we need to recognize ance. We know if we look at the poli- common sense. Individuals looking for that as we are kind of sitting back on cies, if we talk to those who offer the basic health insurance coverage can this at this point in time, other na- policies—the insurance companies—we opt for a policy with a few benefits tions are moving forward. They are know that mandates, government man- they need, and such a policy will be making their claims to greater areas of dates on those policies have a lot to do more affordable. the ocean and to its seabed. I do not with the high cost of insurance. On the other hand, consumers who think we should be left behind as a na- States have passed more than 1,900 have an interest in a particular benefit tion and lose out on significant poten- benefit mandates requiring insurance such as infertility treatments will be tial energy reserves at a time when we companies to cover everything from able to purchase a policy that includes all know that energy is at an incredible wigs to infertility treatments to that benefit. Equally important, it cre- premium. acupuncturists to massage therapists. ates incentives for insurance compa- I will make the same statement I These may all be legitimate needs, but nies to offer innovative and customized made in committee when we had the they are not legitimate mandates on insurance products, and it will reduce discussion on the Convention on the insurance policies. When people are the number of Americans who have Law of the Sea. I urge my colleagues to looking for a policy that meets their sought but have been unable to afford support ratification of the Convention needs that they can afford, we cannot insurance coverage. on the Law of the Sea and urge the continue as governments—both State I am thrilled that Senator JOHN Senate leadership to bring the treaty and Federal—to mandate that every MCCAIN has made this legislation one to the floor for a vote. With that, I policy cover every possible problem of the cornerstones of his health insur- yield the floor. when individuals do not need those ance platform because health insur- The PRESIDING OFFICER (Mr. mandates to buy the policies they ance coverage should not be dictated WHITEHOUSE). The Senator from South want. These mandates increase the by State or Federal legislators. Fami- Carolina is recognized. cost of health insurance. According to lies sitting around their kitchen tables f the Congressional Budget Office, for should decide what their health insur- every 1 percent increase in the cost of ance plan should cover. I believe Sen- HEALTH CARE OPTIONS health insurance, 300,000 people lose ator MCCAIN’s plan to address the gross Mr. DEMINT. Mr. President, we have their coverage. health care inequity in the Tax Code many important issues in front of us. A few States are getting the message and to harness the power of the mar- We have been talking a lot about en- that mandates make health insurance ketplace through the interstate com- ergy this week, including the high cost more expensive. There are at least 10 petition of insurance products, through of gasoline and problems with ethanol States that provide for mandate-lite that, Americans will be able to find af- mandates and potential problems with policies which allow individuals to pur- fordable health insurance that offers the cost of electricity. As we look at chase a policy with fewer mandates and more choice and better coverage. We ways to reduce pollution, certainly en- so are more tailored to their individual know this is true. ergy is important. We have also been needs and financial situation. There As we talk to insurance companies, if dealing with flood insurance. There is are now at least 30 States that require they were allowed to offer products for no shortage of issues. But we know as a mandate’s cost to be assessed before all 50 States under one set of regula- we talk to our constituents around the it is implemented. These States are tions, or under 50 if they choose, if they country that at the top of their list of getting the message. Mandates are are able to have a larger pool of mem- priorities is health insurance and pricing individuals out of the insurance bers, they can spread the risk and health care and the ability to afford market. lower the rates. the policies that are out there. I have introduced legislation that ad- The Health Care Choice Act is a com- We have differences of opinion in the dresses these growing problems. In De- monsense way to let freedom work for Senate as to how to deal with the unin- cember, Congressman JOHN SHADEGG of every American, to let the free enter- sured in our country today. There is Arizona joined me in introducing the prise system work in health insurance one philosophy that believes the gov- Health Care Choice Act. This legisla- as it does in almost every other area of ernment needs to be more involved; we tion is important because it will allow our lives. I encourage my colleagues to need to expand government control of consumers to shop for health insurance consider the Health Care Choice Act health care. There is another philos- the same way they do for other insur- and to move away from this idea that ophy of which I am a part which be- ance products. They can shop on line, more government control, more gov- lieves that our job in the Senate and in by mail, over the phone, or in consulta- ernment mandates is actually going to the Congress and in the Federal Gov- tion with an insurance agent in their help us get more Americans insured. ernment is to make freedom work for hometown. I thank the Chair, and I yield the everyone, and that includes people hav- Specifically, the bill would let insur- floor. ing the freedom to own their own ers licensed in one State sell to indi- The PRESIDING OFFICER. The Sen- health insurance. We believe when peo- viduals in the other 49 States. Most ator from Minnesota. ple do not work for a company that of- people are surprised that you can’t do (The remarks of Mr. COLEMAN are fers health insurance, they should have that now because in every other prod- printed in today’s RECORD under guaranteed access to affordable health uct category we can buy products not ‘‘Morning Business.’’) insurance policies that they can take only in every State but all over the Mr. COLEMAN. Mr. President, I yield from job to job. I am encouraged that world. But with health insurance, we the floor. Senator MCCAIN is on the side of free- have taken a different tact, a tact that (The remarks of Mr. BOND are printed dom of choice and individual ownership has made health insurance much more in today’s RECORD under ‘‘Morning of plans. expensive because we allow a few insur- Business.’’) We know if we are going to make in- ance companies to monopolize the mar- The PRESIDING OFFICER. The Sen- dividual plans work, we need to address ket in 50 individual States. ator from Missouri is recognized. the high cost of insurance. We know What we need is a national market Mr. BOND. Mr. President, I yield the that is the biggest impediment to get- for health insurance. Consumers will floor. ting coverage when that coverage is no longer be limited to picking only f not offered through an employer. In those policies that meet their State fact, nearly two-thirds of the uninsured regulations and mandated benefits. In- NOTICE OF PROPOSED are the working poor, and they cite the stead, they can examine the wide array RULEMAKING high cost of insurance as the primary of insurance policies qualified in one Mr. BYRD. Mr. President, I ask unan- barrier to accessing health coverage. State and offered for sale in multiple imous consent that the attached from We can talk about the uninsured, and States. This way, consumers can the Office of Compliance be printed in we can talk about the high cost of in- choose a policy that best suits their the RECORD today pursuant to section surance, but we need to address the needs and their budget without regard 304(b)(1) of the Congressional Account- real causes of the high cost of insur- to State boundaries. It makes a lot of ability Act of 1995 (2 U.S.C. 1384(b)(1)).

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3971 There being no objection, the mate- victims of natural disasters. Our gen- such regimes reveal their warped minds rial was ordered to be printed in the erous response to the 2004; tsunami is a to the world. This is such a time. It’s RECORD, as follows: tribute to generosity and compassion my hope the world will take notice. U.S. CONGRESS, of Americans, as was our response to Mr. SMITH. Mr. President, I rise OFFICE OF COMPLIANCE, the flooding of Bangladesh in the early today to address the terrible toll taken Washington, DC, April 16, 2008. 1990s. We responded generously to the by the recent cyclone in Burma. Hon. ROBERT C. BYRD 1990 earthquake in the Philippines, an It is unimaginable to me that the President Pro Tempore, U.S. Senate, Hart Office act of kindness that was met with deep people of Burma, already struggling Building, Washington, DC. under the weight of tyranny, could be DEAR SENATOR BYRD: Section 304(b)(l) of gratitude. The U.S. has helped this re- the Congressional Accountability Act of 1995 gion of the world again and again, and expected to bear further hardship. The (CAA), 2 U.S.C. 1384(b)(l), requires that, with now we stand willing to help the people daily trudge for existence faced by the regard to the initial proposal of substantive of Burma. Burmese is heart-wrenching; and yet regulations under the CAA, the Board ‘‘shall Precious time has been, and con- now their suffering has increased. On publish a general notice of proposed rule- tinues to be, wasted. Why? Because Saturday, May 3, their country was making’’ and ‘‘shall transmit such notice to rather than focusing on preparations struck by a horrible cyclone, an unfor- the Speaker of the House of Representatives for the storm, the political leaders in tunately common occurrence in South- and the President Pro Tempore of the Senate east Asia. U.S. diplomats estimate the for publication in the Congressional Record Burma were focused on a sham con- on the first day on which both Houses are in stitutional referendum scheduled for death toll from this storm could be as session following such transmittal.’’ this Saturday. While all of the energies high as 100,000, victims of a 120 mph The Board of Directors of the Office of of government were needed to prepare wind and a storm surge that has oblit- Compliance is transmitting herewith the en- for relief efforts, the regime was think- erated entire villages. The United Na- closed Notice of Proposed Rulemaking. The ing of solidifying its control over the tions estimates that hundreds of thou- Board requests that the accompanying No- country. Its only concession to the sands of people have been left without tice be published in both the House and Sen- basic necessities such as food, potable ate versions of the Congressional Record on critics—as the extent of the dead, the the first day on which both Houses are in missing, and the injured became water, and shelter. session following receipt of this transmittal. known—was an agreement to postpone The Burmese military regime has Any inquiries regarding the accompanying the referendum in certain parts of the compounded this crisis through polit- Notice should be addressed to Tamara E. country. ical repression, economic mismanage- Chrisler, Executive Director of the Office of This is not the first time the Bur- ment, and xenophobia. But the tragedy Compliance, 110 2nd Street, S.E., Room LA– mese regime has put the political risks of Burma’s government cannot and 200, Washington, D.C. 20540; 202–724–9250, TDD of letting in outsiders over urgent hu- should not blind us to the human suf- 202–426–1912, [email protected]. fering inflicted by this most recent dis- Sincerely, manitarian needs. In 2004, the same SUSAN S. ROBFOGEL, junta rejected foreign aid after the tsu- aster. The international community Chair, Board of Directors. nami. The only difference this time is must take immediate steps to alleviate (Editor’s note: The notice of Pro- that the devastation to Burma and the some of the worst deprivations of this posed Rulemaking is printed in the Burmese people is on a much larger humanitarian crisis. To this end, I am RECORD dated April 21, 2008, at page scale. proud and humbled that two of our own S3188) If Saturday’s referendum were legiti- Oregon institutions are leading the ef- mate, its timing would be merely irre- fort in bringing comfort to the af- f sponsible and crass. Yet everything flicted. Northwest Medical Teams and BURMA about this Saturday’s referendum is a Mercy Corps are closely engaged in col- Mr. MCCONNELL. Mr. President, in farce. The process leading up to it has lecting humanitarian donations and co- these last days our sympathies have been marked by oppressive measures operating with local partners to help been stirred by the shocking images of that, of course, are not typically asso- the survivors in Burma. I urge the gov- suffering and loss that have come from ciated with free and open political de- ernment in Burma to accept the for- Burma. Last week’s cyclone was one of bate. It’s a crime, for instance, to criti- eign assistance offered by these groups the most devastating in memory. The cize the document. and others around the world. damage to Burma’s infrastructure, to The substance of the constitution is I know I speak for all Oregonians— its cities and towns and villages, is also profoundly antidemocratic. It pro- and indeed all Americans—when I say staggering. hibits Aung San Suu Kyi, the leader of that our hearts go out to the survivors The human toll won’t be known for the party that won Burma’s last free of this storm. We stand ready to help, weeks. As many as 100,000 are thought and democratic election, from holding and I sincerely thank all those who are to be dead. Thousands more are unac- high office. Former political prisoners donating their time and resources to counted for and injured. And those who and activists could find themselves un- help those stricken by this terrible dis- survived face grave challenges. By all able to run for Parliament. And the aster. accounts, potable water and food are Burmese military would control key f scarce, increasing the threat of disease. ministries and hold a quarter of the HONORING OUR ARMED FORCES And shelter is hard to find. seats in the national legislature. This kind of suffering tests our pow- This is not a constitution. This is a SERGEANT GLEN E. MARTINEZ ers of comprehension. But the extent of fig leaf to place over the junta’s op- Mr. SALAZAR. Mr. President, I rise the damage, combined with the already pressive rule. today to honor the life of Marine Sgt primitive economic conditions imposed The people of Burma are already suf- Glen Martinez and to share my deep by the Burmese regime and the re- fering from the tragedy of a terrible sadness at the loss of one of our Na- gime’s sluggish response to the storm, natural disaster. Now they are being tion’s finest young men. Sergeant Mar- means this suffering will be far greater forced to participate in a farce. Last tinez was on his second tour in Iraq, than it otherwise might have been and week’s cyclone revealed more than na- working to restore peace and security will last far longer than it otherwise ture’s power and life’s fragility. It re- to Al Anbar province, when a roadside would. vealed, once again, the inhumanity of bomb tore through his vehicle, killing We have heard reports that little or Burmese junta—not only in its dis- him and three other marines. He was 31 no notice was given to the people about regard for the people suffering from the years old.7 the severity of the storm. And while storm, but also in its callous insistence Our thoughts and prayers are with the U.S. and other donors have ex- that, in the midst of so much suffering, Sergeant Martinez’s wife Melissa, his pressed a clear willingness to assist, a sham constitutional referendum vali- parents Ron and Carol, his sister Lori, the Burmese regime has continued to dating its authority go forward. and her children Alexis and Spencer, resist allowing outside donors, such as This is a time of great sadness in his grandparents Isaac and Viola Mar- the U.S., in. Burma. It is also a time of renewed tinez and Willard and Norma Martin, The U.S. has repeatedly dem- outrage at the oppressive regime that and all his friends and family. My onstrated its willingness to help the controls it. On occasion, the leaders of heart also goes out to the community

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3972 CONGRESSIONAL RECORD — SENATE May 8, 2008 of Monte Vista, CO, a small town in the son told the graduates, ‘‘the sense, not you ought to be, what you can be, what San Luis Valley not far from my fam- of private duty merely, but of public you will be.’’ ily’s ranch. The close-knit community, duty also. And then if you perform that These three words have been the where everyone is a neighbor, has lost duty, there is a reward awaiting you creed of generation after generation of a favorite son. which is superior to any other reward American soldiers. They help us under- There was nothing, it seemed, that in the world. That is the affectionate stand the courage and fortitude of men Glen Martinez couldn’t do. In high remembrance of your fellow men— like Ronald Tucker, who deployed school, he was a top student, a gifted their honor, their affection. No man thousands of miles from his family, musician, and a star athlete. He was could wish for more than that or find lived in constant peril, and shouldered the quarterback of the Monte Vista anything higher than that to strive the responsibility for keeping other football team, competed for the State for.... I wish you Godspeed, and re- soldiers safe while securing a brighter championship in wrestling, and led his mind you that yours is the honor of the future for Iraqi citizens. baseball team. With college scholarship United States.’’ Duty, honor, country. ‘‘The code offers to choose from in all three Sergeant Martinez answered the call which those words perpetuate,’’ said sports, Glen accepted an academic and of his country with the dignity and General MacArthur, ‘‘embraces the baseball scholarship at Ottawa Univer- honor President Woodrow Wilson highest moral law and will stand the sity in Ottawa, KS. He graduated with extolled. Loved and respected by those test of any ethics or philosophies ever a degree in mathematics in 2000, but with whom he served, his optimism and promulgated for the things that are continued his studies at Westwood Col- leadership could lift and inspire even in right and its restraints are from the lege and then at the University of Colo- the most difficult circumstances. He things that are wrong. The soldier, rado, in Boulder, where he took up a was an irrepressible spirit and an ex- above all other men, is required to master’s program in land surveying. traordinary professional. practice the greatest act of religious At each step, Glen earned honors, Sgt Glen Martinez’s achievements in training—sacrifice . . . However hard awards, and the admiration of those he life are matched only by the depth of the incidents of war may be, the soldier met. He is remembered for his con- his sacrifice—and the void he leaves be- who is called upon to offer and to give tagious smile, boundless energy, and a hind. To Glen’s family and friends, I his life for his country is the noblest heart committed to service. In 2004, know no words that can ease the pain development of mankind.’’ while living in Boulder, Glen deter- you feel. I hope that in time you will Specialist Ronald Tucker embodied mined he had an obligation to serve his find consolation in your pride in Glen’s this creed: He donned the soldier’s uni- country, and that he could contribute service and in the knowledge that his form at his first opportunity, he brave- most by enlisting in the Marines. By country and his community are eter- ly entered the battlefield, and he of- donning the uniform, he joined a proud nally grateful for all that he gave. He fered and gave his life in service to his family tradition of service and followed has honored the United States, and the country. His is a debt we cannot repay. in the footsteps of both his grand- United States will always honor him. To Ronald’s mother Susan, his step- fathers, who served in World War II, SPECIALIST RONALD J. TUCKER father David, and to all his family and and his father Ron, who was in the Air Mr. President, I also rise today to friends, I know no words that can ease Force during the Vietnam war. honor the life and service of Army Spe- the pain you are feeling. I hope that in In the Marines, Glen quickly became cialist Ronald J. Tucker, of Fountain, time, however, the joy Ronald brought a leader among those he served. He was CO. Specialist Tucker was killed in to all who knew him and your pride in a member of Combat Logistics Bat- Baghdad last week, at the age of 21, his service will provide comfort and talion-1, Combat Logistics Regiment-1, when a bomb exploded near his patrol. consolation. His country will always 1st Marine Logistics Group, out of He was assigned to 1st Battalion, 22nd honor his sacrifice. Camp Pendleton. He rose rapidly to the Infantry Regiment, 4th Infantry Divi- f rank of sergeant and, as with every- sion, out of Fort Hood, TX. THE MATTHEW SHEPARD ACT OF thing he did, earned recognition and Specialist Tucker grew up in the 2007 awards for the quality of his service. Pikes Peak region of Colorado and was He served with his wife Sgt Melissa a graduate of Fountain-Fort Carson Mr. SMITH. Mr. President, I rise Martinez, whom he met while training High School. He was a hard-working, today to speak about the need for hate at Camp Pendleton. When Glen was smart, good-humored young man with crimes legislation. Each Congress, Sen- killed, they were both in Al Anbar hopes of serving his country. In school, ator KENNEDY and I introduce hate province, as part of an effort to keep he devoted himself to his studies, but crimes legislation that would strength- the lid on the violence that once made shared laughs and jokes with friends en and add new categories to current the area among the most dangerous in and teachers. hate crimes law, sending a signal that Iraq. Ronald joined the Army just a few violence of any kind is unacceptable in It is hard to measure all that in- days after his 2005 graduation from our society. Likewise, each Congress I spired Sergeant Martinez’s service. He high school. He trained to be a have come to the floor to highlight a had a deep-rooted pride for his country mortarman and, in 2006, was assigned separate violent crime that has oc- and his community. He sensed an obli- to Fort Hood. He deployed earlier this curred in our country. gation to offer his talents to a cause year and was serving as an indirect fire On the night of April 4, 2008, a 17- greater than his own. And he was de- infantryman in a unit that was work- year-old Black man was traveling by termined to rise to every challenge ing to calm the violence that has esca- bus from Wilmington, DE, to New Cas- presented. lated in Baghdad over the last several tle, DE, when three White men engaged He shared what so many of our na- weeks. Specialist Tucker worked tire- him in a physical altercation. David tion’s great servicemembers and great lessly, courageously, and professionally and Lloyd Walker, 27 and 23 years old leaders share—the sense, as President to help bring calm to streets teeming respectively, were identified by wit- Woodrow Wilson described it, that ‘‘the with ethnic violence and to allow the nesses and arrested, but their accom- fortunes of a nation are confided to Iraqi people to hope again. plice, known only as ‘‘Ritchie,’’ is still us.’’ Specialist Tucker followed in the at large. According to police, the three As World War I raged in Europe, footsteps of so many American soldiers men began to argue with the young President Wilson told the 1916 class at who have honored their country with man when he complained that they Annapolis that meeting this ‘‘special their service, and who General Douglas were bumping into him. When the 17- obligation’’ is perilous and difficult, MacArthur regaled in a 1962 address to year-old man got off the bus, the three but it also carries the highest reward: West Point soldiers for their selfless men followed and attacked him, the honor and affection of their fellow sacrifices and for their unflinching de- yelling racial slurs and threatening to citizens. votion to the protection of our Nation. kill him. Police say David Walker ‘‘You are going to live your lives ‘‘Duty, honor, country,’’ MacArthur stabbed the teen five times in the back, under the most stimulating compulsion told the young soldiers, ‘‘Those three puncturing one of his lungs and inflict- that any man can feel,’’ President Wil- hallowed words reverently dictate what ing more stab wounds on his forearm.

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3973 The three men fled the scene imme- Congressman JAY INSLEE for their Margaret is the youngest of eight diately after the stabbing. Both David work in steering Wild Sky through children—a born negotiator, advocate, and Lloyd Walker were charged with their committees. And thank you to all and spirited woman who has dedicated first-degree assault, possession of a of the cosponsors from the Washington her professional career to excellence in deadly weapon during a felony, felony delegation. public service. She has served the peo- hate crime, and conspiracy. Above all, I want to thank all of the ple of Delaware and the U.S. Senate I believe that the Government’s first people in Washington State who with distinction. duty is to defend its citizens, to defend worked tirelessly to turn their vision She began her career in the Senate as them against the harms that come out into legislation and—finally into law. a press secretary on my staff at the of hate. Federal laws intended to pro- The following individuals have spent young age of 27. She came to us with tect individuals from heinous and vio- countless hours to make the Wild Sky impeccable credentials from the coun- lent crimes motivated by hate are woe- Wilderness Area a reality: Mike Town, ty executive’s team and the Depart- fully inadequate. This legislation Tom Uniack, Larry Romans, Mark ment of Education. Her work ethic and would better equip the Government to Lawler, Harry Romberg, Norm Winn, energy are surpassed only by her keen fulfill its most important obligation by Don Parks, Charlie Raines, Jon Owen, wit and disarming use of humor. providing the resources necessary to John Leary, Michael Carroll, Rick Margaret’s sense of justice is embed- adequately investigate and prosecute McGuire, Bill and Sue Cross, Bob Hub- ded in her character—a byproduct of violent crimes. I believe that by pass- bard, Conway Leovy, Mark Heckert, her strong faith and commitment to ing this legislation and changing cur- Kem Hunter, Aaron Reardon, Peter family. Her professional constituency rent law, we can change hearts and Jackson, Michelle Ackerman, Jennifer was well served by her 15 years in the minds as well. Ekstrom, Doug Scott, Bill Arthur, public domain. However, Margaret re- cently decided that there was one con- f Doug Walker, Nalani Askov, Dave Sommers, Jennifer Stephens, and Cyn- stituency that needed her most of all. WILD SKY WILDERNESS ACT thia Wilkerson; as well as Shannon In August, she and her husband Chris Mrs. MURRAY. Mr. President, I rise Harps and Karen Fant, whose memo- became the proud parents of Ronan to celebrate a tremendous and hard- ries will live on through Wild Sky. William Haggerty, and Margaret is now fought victory. Today, a week after And last but not least, I would like to a full-time mom. She understood the wisdom and the this Congress approved it overwhelm- thank the staff members who have also sentiment in Mark Twain’s words and ingly, President Bush signed the public put their hearts and souls into this lands bill that includes my Wild Sky so—she will not be disappointed in bill: John Engber, Karen Waters, Doug hindsight. Margaret, a wordsmith her- Wilderness Act. And I couldn’t be more Clapp, Jaime Shimek, Jeff Bjornstad, thrilled. self, also took George Bernard Shaw to Evan Schatz, Alex Glass, Pete heart: ‘‘Perhaps the greatest social The path to creating the first wilder- Weissman, Matt McAlvanah, Rick ness in Washington State in more than service that can be rendered by anyone Desimone, Rachelle Hein, Christy to this country and to mankind is to 20 years has been long and sometimes Gullion, Carrie Desmond, Jennifer rocky. But with the President’s signa- bring up a family.’’ Talhelm, Rita Beal, Shawn Bills, Jill And so I say to you Margaret—bring ture today, we have finally reached the McKinnie, Christian Gunter, Louis top. Let me tell you, Mr. President, it up that family—in the image and like- Lauter, Michael Dabbs, Kim Johnston, ness of the best hopes and expectations feels great! Brandon Hall, Amanda Mahnke, Charla This wilderness designation means for a better world. Thank you for your Neuman, Abby Levenshus, Tracy service, goodness, loyalty, honor, and that over 106,000 acres of rolling hills, Nagelbush, Amit Ronen, and Joel rushing rivers, and low-elevation forest courage. You are a force unto yourself, Merkel. and you are very appreciated.∑ in the Mt. Baker-Snoqualmie National Those of us who live in the Northwest f Forest will be preserved for genera- are truly blessed to live so close to tions to enjoy. The bill has been the re- such breathtaking natural beauty. The TRIBUTE TO VALORIA LOVELAND sult of years of hard work by literally people of Washington State have a ∑ Ms. CANTWELL. Mr. President, dozens of people in my home State of great respect for our amazing natural today I wish to recognize Valoria Washington who have been as pas- heritage and millions of people spend Loveland, who recently stepped down sionate and excited about this bill as I their weekends hiking, camping, hunt- from her position as the director of the have been. I could not be more proud of ing, fishing, and rock-climbing in our Washington State Department of Agri- their hard work and enthusiasm. Even many parks and wild lands. culture. Ms. Loveland has worked in when progress seemed impossible, they The Wild Sky area is already a pop- Washington State and local govern- never lost sight of their goal. They al- ular destination being enjoyed by hun- ments for the past 44 years, and she has ways believed that preserving this in- dreds of people from across western recently retired to some well-deserved credible land was possible. And this Washington. And today’s wilderness relaxation in her home of Pasco, WA. beautiful new wilderness is their re- designation means that their children Ms. Loveland’s career in government ward. and their grandchildren will be able to began at the Franklin County Court- When I spoke on the floor after the enjoy the land just as they do. house, where she worked before and Wild Sky bill passed this body, I prom- Today’s designation is a gift to while she was the county’s treasurer. ised to return once it was signed and young families, lifelong outdoor enthu- In 1992, she was elected to the State thank the many people who have siasts, and everyone in between. And I senate, where she swiftly rose to be- worked so hard with me over the years am so glad to see this proposal over the come the chair of the Ways and Means to make the Wild Sky Wilderness a re- finish line. Now I can’t wait to lace up Committee, and the most powerful ality. So I want to begin by thanking my tennis shoes and take those first woman in the Washington State Legis- Congressman RICK LARSEN. Nine years steps into the Wild Sky Wilderness! lature. After 8 years in the senate, and have passed since the first maps pro- a brief 2-year break from government, f posing this wilderness were unfurled at Valoria was appointed director of the a meeting in my Seattle office. I have ADDITIONAL STATEMENTS Washington State Department of Agri- been working with Congressman culture, where she served for the last 6 LARSEN in the House for more than 7 years. In her time as director, Wash- years on the legislation. And I couldn’t TRIBUTE TO MARGARET AITKEN ington’s agricultural exports have have asked for a better partner. ∑ Mr. BIDEN. Mr. President, Mark risen to record highs, in large part, I would like to thank Chairman Twain once said: ‘‘20 years from now thanks to her leadership. Her multiple BINGAMAN and his staff—especially you will be more disappointed by the trips to China, Japan, and Mexico have David Brooks and Bob Simon—for their things that you didn’t do, than by the extended numerous opportunities to help and unwavering support of Wild things you did do.’’ Well, Mr. Twain Washington State growers, and I thank Sky throughout the years. I would like had not met Margaret Aitken, the her for working towards opening those to thank Senator MARIA CANTWELL and woman I wish to acknowledge today. markets.

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3974 CONGRESSIONAL RECORD — SENATE May 8, 2008 Throughout her career, Valoria Nebraskan who recently became a H.R. 3522. An act to ratify a conveyance of Loveland has been known for her abil- member of the New York Jets, after a portion of the Jicarilla Apache Reservation ity to get things done and solve prob- completing a remarkable 4-year run to Rio Arriba County, State of New Mexico, lems. Never one to shy away from into the National Collegiate Athletic pursuant to the settlement of litigation be- tween the Jicarilla Apache Nation and Rio tough issues, her straightforward man- Association, NCAA, record books as Arriba County, State of New Mexico, to au- ner and tireless work ethic have earned the all-time leading rusher at any level thorize issuance of a patent for said lands, her the respect of many. of college football. and to change the exterior boundary of the Ms. Loveland’s leadership will be Danny Woodhead, a senior tailback Jicarilla Apache Reservation accordingly, sorely missed in Washington State, for Chadron State College in Nebraska, and for other purposes. which has benefitted greatly from her completed his college football career The enrolled bill was subsequently years of service. I wish her well, and with 7,962 yards rushing to top the pre- signed by the President pro tempore thank her for her dedication to the vious all-division record by more than (Mr. BYRD). State of Washington.∑ 600 yards. f f It is not the only NCAA record set by TRIBUTE TO CHIEF MASTER this native son from North Platte, NE. ENROLLED BILL SIGNED SERGEANT GLENN FREEMAN During the 2006 season, Danny set the The President pro tempore (Mr. ∑ single-season record for rushing for all BYRD) announced that on today, May 8, Mr. HAGEL. Mr. President, today I NCAA divisions as he rushed for 2,756 wish to praise CMSgt Glenn Freeman, 2008, he had signed the following en- yards on 344 carries. He became the U.S. Air Force, Retired, of Omaha, who rolled bill, which was previously signed first player in NCAA history to ever was honored on April 26 by the Na- by the Speaker of the House: rush for more than 2,700 yards in a sea- tional Guard Association of Nebraska H.R. 5919. An act to make technical correc- son. with the Distinguished Service Award. tions regarding the Newborn Screening Danny Woodhead also ranks second Chief Freeman has worked in my Saves Lives Act of 2007. in the Nation in career all-purpose Omaha office as senior aide for mili- yardage, with 9,479 yards. His 109 career At 12:55 p.m., a message from the tary and veterans affairs, assisting touchdowns tie the NCAA record, and House of Representatives, delivered by servicemembers and their families, for his 654 career points rank him second. Mrs. Cole, one of its reading clerks, an- the past 11 years. He is receiving the nounced that the House has passed the award in recognition of his dedicated For his outstanding football achieve- following bill, in which it requests the service to the Nebraska National ments, Danny Woodhead was awarded concurrence of the Senate: Guard. the Harlon Hill Trophy for the second Glenn has served the State of Ne- year in a row. Similar to the Heisman, H.R. 5937. An act to facilitate the preserva- braska and our country in a manner the Harlon Hill Trophy is given annu- tion of certain affordable housing dwelling units. that deserves high recognition and our ally to the college football player of deepest respect. He is a friend and has the year in NCAA Division II. The message also announced that been invaluable to my office. Over the The State of Nebraska has a storied pursuant to section 1853(a) of the Im- last 11 years, Glenn has helped thou- college football tradition; but no one plementing Recommendations of the sands of Nebraska’s military families has ever witnessed a running back 9/11 Commission Act of 2007 (Public with casework and veterans issues. compile the prodigious statistics that Law 110–53), and the order of the House Glenn is an American role model. Danny Woodhead, a math education of January 4,2007, the Speaker appoints Chief Freeman, originally from major, did during his career with the the following members on the part of Washington, DC, served in the Air Eagles. Although he played for a small the House of Representatives to the Force for 30 years, retiring in 1985. His college in a rural state, his abilities Commission on the Prevention of decorations include the Bronze Star caught the attention of the sporting Weapons of Mass Destruction Prolifera- Medal, three Meritorious Service Med- world. tion and Terrorism: Mr. Timothy J. als, four Air Force Commendation med- The people of Nebraska are proud of Roemer of Great Falls, Virginia, and als, and the Air Force Outstanding Danny Woodhead and his remarkable Ms. Wendy R. Sherman of Bethesda, Unit Award with Combat V, Valor—De- achievements, and we look forward to Maryland. vice. Chief Freeman served tours in watching him pursue his dreams in f Vietnam, Thailand, Guam, Newfound- football and beyond.∑ land, Korea, Japan, and the Republic of f MEASURES REFERRED the Philippines. MESSAGES FROM THE PRESIDENT The following bill was read the first Prior to joining my staff, Chief Free- and the second times by unanimous man was hospital service coordinator Messages from the President of the consent, and referred as indicated: for disabled American veterans. As a United States were communicated to H.R. 5937. An act to facilitate the preserva- senior aide to me, he continues to work the Senate by Mrs. Neiman, one of his tion of certain affordable housing dwelling closely with veterans service organiza- secretaries. units; to the Committee on Banking, Hous- tions while assisting veterans and mili- f ing, and Urban Affairs. tary families across Nebraska. f Chief Freeman has served as presi- EXECUTIVE MESSAGES REFERRED dent of the Omaha Chapter Freedoms As in executive session the Presiding MEASURES PLACED ON THE Foundation at Valley Forge, a non- Officer laid before the Senate messages CALENDAR profit organization which seeks to pre- from the President of the United The following bill was read the sec- serve American ideals and principles States submitting sundry nominations ond time, and placed on the calendar: by helping students become responsible which were referred to the appropriate S. 2991. A bill to provide energy price relief and active citizens. He has additionally committees. (The nominations received and hold oil companies and other entities ac- served on the Omaha Civil Rights Advi- today are printed at the end of the Sen- countable for their actions with regard to sory Committee and as chairman of the ate proceedings.) high energy prices, and for other purposes. Douglas County Republican Party and f f the Republican Forum. He delivers col- lege lectures across Nebraska as a rec- MESSAGES FROM THE HOUSE REPORTS OF COMMITTEES ognized scholar on the American polit- The following reports of committees ical process and the U.S. Constitution.∑ ENROLLED BILL SIGNED were submitted: f At 9:33 a.m., a message from the By Mr. ROCKEFELLER, from the Select Committee on Intelligence, without amend- IN RECOGNITION OF DANNY House of Representatives, delivered by WOODHEAD ment: Mrs. Cole, one of its reading clerks, an- S. 2996. An original bill to authorize appro- ∑ Mr. NELSON of Nebraska. Mr. Presi- nounced that the Speaker has signed priations for fiscal year 2009 for intelligence dent, today I pay tribute to a young the following enrolled bill: and intelligence-related activities of the

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3975 United States Government, the Community By Mr. ROCKEFELLER: ADDITIONAL COSPONSORS Management Account, and the Central Intel- S. 2996. An original bill to authorize appro- S. 394 ligence Agency Retirement and Disability priations for fiscal year 2009 for intelligence At the request of Mr. AKAKA, the System, and for other purposes (Rept. No. and intelligence-related activities of the 110–333). United States Government, the Community names of the Senator from Washington By Mr. INOUYE, from the Committee on Management Account, and the Central Intel- (Mrs. MURRAY) and the Senator from Commerce, Science, and Transportation, ligence Agency Retirement and Disability Washington (Ms. CANTWELL) were without amendment: System, and for other purposes; from the Se- added as cosponsors of S. 394, a bill to S.J. Res. 28. A joint resolution dis- lect Committee on Intelligence; placed on amend the Humane Methods of Live- approving the rule submitted by the Federal the calendar. stock Slaughter Act of 1958 to ensure Communications Commission with respect By Mr. LAUTENBERG (for himself, to broadcast media ownership (Rept. No. 110– the humane slaughter of non- Mr. STEVENS, and Mr. SMITH): ambulatory livestock, and for other 334). S. 2997. A bill to reauthorize the Maritime By Mr. LEAHY, from the Committee on purposes. Administration, and for other purposes; to the Judiciary, without amendment and with the Committee on Commerce, Science, and S. 573 a preamble: Transportation. At the request of Ms. STABENOW, the S. Res. 537. A resolution commemorating By Mr. NELSON of Florida (for him- name of the Senator from Massachu- and acknowledging the dedication and sac- self, Ms. SNOWE, Mr. KERRY, and Mr. rifice made by the men and women who have setts (Mr. KERRY) was added as a co- MARTINEZ): lost their lives while serving as law enforce- sponsor of S. 573, a bill to amend the ment officers. S. 2998. A bill to require accurate and rea- Federal Food, Drug, and Cosmetic Act sonable disclosure of the terms and condi- f and the Public Health Service Act to tions of prepaid telephone calling cards and improve the prevention, diagnosis, and EXECUTIVE REPORTS OF services, and for other purposes; to the Com- treatment of heart disease, stroke, and COMMITTEES mittee on Commerce, Science, and Transpor- tation. other cardiovascular diseases in The following executive reports of By Mr. BROWN (for himself, Mr. SPEC- women. nominations were submitted: TER, and Mr. WHITEHOUSE): S. 717 By Mr. LIEBERMAN for the Committee on S. 2999. A bill to amend the Public Health At the request of Mr. AKAKA, the Homeland Security and Governmental Af- Service Act, the Employee Retirement In- name of the Senator from Missouri fairs. come Security Act of 1974, and the Internal (Mrs. MCCASKILL) was added as a co- *Alejandro Modesto Sanchez, of Florida, to Revenue Code of 1986 to require group and in- sponsor of S. 717, a bill to repeal title be a Member of the Federal Retirement dividual health insurance coverage and II of the REAL ID Act of 2005, to re- Thrift Investment Board for a term expiring group health plans to provide coverage for October 11, 2010. individuals participating in approved cancer store section 7212 of the Intelligence *Gordon James Whiting, of New York, to clinical trials; to the Committee on Health, Reform and Terrorism Prevention Act be a Member of the Federal Retirement Education, Labor, and Pensions. of 2004, which provides States addi- Thrift Investment Board for a term expiring By Mr. AKAKA (for himself and Mr. tional regulatory flexibility and fund- September 25, 2010. INOUYE): ing authorization to more rapidly *Andrew Saul, of New York, to be a Mem- S. 3000. A bill to amend title 38, United produce tamper- and counterfeit-resist- ber of the Federal Retirement Thrift Invest- States Code, to include Federally recognized ment Board for a term expiring September ant driver’s licenses, and to protect tribal organizations in certain grant pro- privacy and civil liberties by providing 25, 2008. grams of the Department of Veterans Affairs *Andrew Saul, of New York, to be a Mem- interested stakeholders on a negotiated for the several States and territories, and for ber of the Federal Retirement Thrift Invest- other purposes; to the Committee on Vet- rulemaking with guidance to achieve ment Board for a term expiring September erans’ Affairs. improved 21st century licenses to im- 25, 2012. prove national security. *Nanci E. Langley, of Virginia, to be a S. 911 Commissioner of the Postal Regulatory f Commission for a term expiring November At the request of Mr. REED, the name of the Senator from Alabama (Mr. SES- 22, 2012. SUBMISSION OF CONCURRENT AND SIONS) was added as a cosponsor of S. *Nomination was reported with rec- SENATE RESOLUTIONS ommendation that it be confirmed subject to 911, a bill to amend the Public Health the nominee’s commitment to respond to re- The following concurrent resolutions Service Act to advance medical re- quests to appear and testify before any duly and Senate resolutions were read, and search and treatments into pediatric constituted committee of the Senate. referred (or acted upon), as indicated: cancers, ensure patients and families f By Mr. ENZI (for himself, Mr. NELSON have access to the current treatments INTRODUCTION OF BILLS AND of Florida, Mr. WICKER, and Mr. NEL- and information regarding pediatric JOINT RESOLUTIONS SON of Nebraska): cancers, establish a population-based S. Res. 555. A resolution recognizing the national childhood cancer database, The following bills and joint resolu- 100th anniversary of the founding of the Con- and promote public awareness of pedi- tions were introduced, read the first gressional Club; to the Committee on the Ju- atric cancers. and second times by unanimous con- diciary. S. 1067 sent, and referred as indicated: By Ms. LANDRIEU (for herself, Mr. AL- At the request of Mr. OBAMA, the By Ms. KLOBUCHAR (for herself, Mr. EXANDER, Mr. LIEBERMAN, Mr. BURR, Mr. VITTER, Mr. GREGG, Mr. SUNUNU, name of the Senator from Michigan ENZI, Mr. HARKIN, and Mr. DURBIN): (Mr. LEVIN) was added as a cosponsor of S. 2993. A bill to amend the Public Health Mr. ALLARD, Mr. ISAKSON, and Mr. Service Act to facilitate emergency medical CARPER): S. 1067, a bill to require Federal agen- services personnel training and certification S. Res. 556. A resolution congratulating cies to support health impact assess- curriculums for military veterans; to the charter schools and their students, parents, ments and take other actions to im- Committee on Health, Education, Labor, and teachers, and administrators across the prove health and the environmental Pensions. United States for their ongoing contribu- quality of communities, and for other By Mr. LEVIN (for himself, Mr. tions to education, and for other purposes; purposes. VOINOVICH, Ms. STABENOW, Mr. considered and agreed to. S. 1963 OBAMA, Mr. BROWN, Mrs. CLINTON, By Mr. LAUTENBERG (for himself, At the request of Mr. ROCKEFELLER, Mr. SCHUMER, and Ms. KLOBUCHAR): Mrs. HUTCHISON, Mr. BAUCUS, Mr. S. 2994. A bill to amend the Federal Water BIDEN, Mr. CARPER, Mrs. CLINTON, the name of the Senator from Montana Pollution Control Act to provide for the re- Mr. DORGAN, Mr. DURBIN, Mr. KERRY, (Mr. TESTER) was added as a cosponsor mediation of sediment contamination in Mr. MENENDEZ, Mr. SCHUMER, Mr. of S. 1963, a bill to amend the Internal areas of concern; to the Committee on Envi- WHITEHOUSE, Mr. WYDEN, Mr. DOMEN- Revenue Code of 1986 to allow bonds ronment and Public Works. ICI, Ms. SNOWE, Mr. CRAPO, Mr. COCH- guaranteed by the Federal home loan RAN, Mr. SPECTER, Mr. LIEBERMAN, By Mr. LEVIN (for himself and Mrs. banks to be treated as tax exempt FEINSTEIN): Mr. BAYH, and Mr. BROWN): S. 2995. A bill to amend the Commodity Ex- S. Res. 557. A resolution supporting the bonds. change Act to enhance oil trading trans- goals and ideals of National Train Day; to S. 2161 parency; to the Committee on Agriculture, the Committee on Commerce, Science, and At the request of Mr. ISAKSON, the Nutrition, and Forestry. Transportation. name of the Senator from Kansas (Mr.

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3976 CONGRESSIONAL RECORD — SENATE May 8, 2008 ROBERTS) was added as a cosponsor of S. 2523 CRAIG) was added as a cosponsor of S. S. 2161, a bill to ensure and foster con- At the request of Mr. KERRY, the 2938, a bill to amend titles 10 and 38, tinued patient safety and quality of name of the Senator from Pennsyl- United States Code, to improve edu- care by making the antitrust laws vania (Mr. CASEY) was added as a co- cational assistance for members of the apply to negotiations between groups sponsor of S. 2523, a bill to establish Armed Forces and veterans in order to of independent pharmacies and health the National Affordable Housing Trust enhance recruitment and retention for plans and health insurance issuers (in- Fund in the Treasury of the United the Armed Forces, and for other pur- cluding health plans under parts C and States to provide for the construction, poses. D of the Medicare Program) in the rehabilitation, and preservation of de- S. 2942 same manner as such laws apply to cent, safe, and affordable housing for At the request of Mr. CARDIN, the protected activities under the National low-income families. names of the Senator from Oregon (Mr. Labor Relations Act. S. 2544 SMITH), the Senator from Oregon (Mr. S. 2173 At the request of Mr. KENNEDY, the WYDEN) and the Senator from Min- At the request of Mr. HARKIN, the name of the Senator from Vermont nesota (Ms. KLOBUCHAR) were added as names of the Senator from Montana (Mr. SANDERS) was added as a cospon- cosponsors of S. 2942, a bill to authorize (Mr. TESTER), the Senator from sor of S. 2544, a bill to provide for a funding for the National Advocacy Cen- Vermont (Mr. SANDERS) and the Sen- program of temporary extended unem- ter. AYH ployment compensation. ator from Indiana (Mr. B ) were S. 2979 added as cosponsors of S. 2173, a bill to S. 2559 At the request of Mr. KERRY, the At the request of Mr. DODD, the name amend the Elementary and Secondary names of the Senator from Delaware Education Act of 1965 to improve of the Senator from Louisiana (Mr. (Mr. BIDEN) and the Senator from standards for physical education. VITTER) was added as a cosponsor of S. Michigan (Mr. LEVIN) were added as co- 2559, a bill to amend title II of the So- S. 2182 sponsors of S. 2979, a bill to exempt the cial Security Act to increase the level At the request of Mr. REED, the name African National Congress from treat- of earnings under which no individual of the Senator from Vermont (Mr. ment as a terrorist organization, and who is blind is determined to have SANDERS) was added as a cosponsor of for other purposes. S. 2182, a bill to amend the Public demonstrated an ability to engage in Health Service Act with respect to substantial gainful activity for pur- S. 2991 mental health services. poses of determining disability. At the request of Mr. KOHL, his name was added as a cosponsor of S. 2991, a S. 2227 S. 2565 bill to provide energy price relief and At the request of Mr. OBAMA, the At the request of Mr. BIDEN, the name of the Senator from Vermont name of the Senator from Alaska (Mr. hold oil companies and other entities accountable for their actions with re- (Mr. SANDERS) was added as a cospon- STEVENS) was added as a cosponsor of sor of S. 2227, a bill to provide grants to S. 2565, a bill to establish an awards gard to high energy prices, and for States to ensure that all students in mechanism to honor exceptional acts other purposes. the middle grades are taught an aca- of bravery in the line of duty by Fed- S. RES. 537 demically rigorous curriculum with ef- eral law enforcement officers. At the request of Mr. LEAHY, the fective supports so that students com- S. 2756 names of the Senator from California plete the middle grades prepared for At the request of Mr. BIDEN, the (Mrs. FEINSTEIN), the Senator from success in high school and postsec- name of the Senator from Minnesota New York (Mr. SCHUMER), the Senator ondary endeavors, to improve State (Mr. COLEMAN) was added as a cospon- from Utah (Mr. HATCH), the Senator and district policies and programs re- sor of S. 2756, a bill to amend the Na- from Delaware (Mr. BIDEN), the Sen- lating to the academic achievement of tional Child Protection Act of 1993 to ator from Maryland (Mr. CARDIN), the students in the middle grades, to de- establish a permanent background Senator from Rhode Island (Mr. velop and implement effective middle check system. WHITEHOUSE), the Senator from Mon- school models for struggling students, S. 2874 tana (Mr. BAUCUS) and the Senator and for other purposes. At the request of Mrs. FEINSTEIN, the from California (Mrs. BOXER) were S. 2433 name of the Senator from Alaska (Mr. added as cosponsors of S. Res. 537, a At the request of Mr. OBAMA, the STEVENS) was added as a cosponsor of resolution commemorating and ac- name of the Senator from Ohio (Mr. S. 2874, a bill to amend titles 5, 10, 37, knowledging the dedication and sac- BROWN) was added as a cosponsor of S. and 38, United States Code, to ensure rifice made by the men and women who 2433, a bill to require the President to the fair treatment of a member of the have lost their lives while serving as develop and implement a comprehen- Armed Forces who is discharged from law enforcement officers. sive strategy to further the United the Armed Forces, at the request of the AMENDMENT NO. 4718 States foreign policy objective of pro- member, pursuant to the Department At the request of Mrs. FEINSTEIN, the moting the reduction of global poverty, of Defense policy permitting the early name of the Senator from Louisiana the elimination of extreme global pov- discharge of a member who is the only (Ms. LANDRIEU) was added as a cospon- erty, and the achievement of the Mil- surviving child in a family in which the sor of amendment No. 4718 intended to lennium Development Goal of reducing father or mother, or one or more sib- be proposed to S. 2284, an original bill by one-half the proportion of people lings, served in the Armed Forces and, to amend the National Flood Insurance worldwide, between 1990 and 2015, who because of hazards incident to such Act of 1968, to restore the financial sol- live on less than $1 per day. service, was killed, died as a result of vency of the flood insurance fund, and S. 2479 wounds, accident, or disease, is in a for other purposes. At the request of Mr. BROWN, the captured or missing in action status, or f name of the Senator from North Caro- is permanently disabled, and for other lina (Mrs. DOLE) was added as a cospon- purposes. STATEMENTS ON INTRODUCED sor of S. 2479, a bill to catalyze change S. 2884 BILLS AND JOINT RESOLUTIONS in the care and treatment of diabetes At the request of Ms. COLLINS, the By Mr. NELSON of Florida (for in the United States. name of the Senator from Tennessee himself, Ms. SNOWE, Mr. KERRY, S. 2511 (Mr. ALEXANDER) was added as a co- and Mr. MARTINEZ:) At the request of Mr. LEAHY, the sponsor of S. 2884, a bill to amend the S. 2998. A bill to require accurate and name of the Senator from Maryland Internal Revenue Code of 1986 to pro- reasonable disclosure of the terms and (Mr. CARDIN) was added as a cosponsor vide incentives to improve America’s conditions of prepaid telephone calling of S. 2511, a bill to amend the grant research competitiveness, and for other cards and services, and for other pur- program for law enforcement armor purposes. poses; to the Committee on Commerce, vests to provide for a waiver of or re- S. 2938 Science, and Transportation. duction in the matching funds require- At the request of Mr. GRAHAM, the Mr. NELSON of Florida. Mr. Presi- ment in the case of fiscal hardship. name of the Senator from Idaho (Mr. dent, prepaid telephone calling cards

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3977 are used by many Americans to stay in iors, immigrants and other Americans (B) EXCLUSION.—The term ‘‘prepaid tele- touch with loved ones around the coun- using these prepaid telephone calling phone calling card distributor’’ does not in- try and throughout the world. Unfortu- cards are protected from bad actors in clude any retail merchants or sellers of pre- nately, some providers and distributors the marketplace. paid telephone calling cards exclusively en- Mr. President, I ask unanimous con- gaged in point-of-sale transactions with end- of these cards are scamming con- user customers. sent that the text of the bill be printed sumers—by imposing undisclosed junk (6) PREPAID TELEPHONE CALLING SERVICE.— fees, charging exorbitant rates, and in the RECORD. (A) IN GENERAL.—The terms ‘‘prepaid tele- selling cards that expire shortly after There being no objection, the text of phone calling service’’ and ‘‘service’’ mean consumers start using them. the bill was ordered to be printed in any telecommunications service, paid for in Over the past couple of years, a num- the RECORD, as follows: advance by a consumer, that allows a con- ber of State Attorneys General and the S. 2998 sumer to originate voice telephone calls Federal Trade Commission have opened Be it enacted by the Senate and House of Rep- through a local, long distance, or toll-free investigations and found that a number resentatives of the United States of America in access number and authorization code, whether manually or electronically dialed. of providers and distributors are engag- Congress assembled, SECTION 1. SHORT TITLE. (B) EXCLUSION.—The terms ‘‘prepaid tele- ing in unfair and deceptive business This Act may be cited as the ‘‘Prepaid phone calling service’’ and ‘‘service’’ do not practices. These practices include Calling Card Consumer Protection Act of include any service that provides access to a charging customers for calls where 2008’’. wireless telecommunications service account they receive busy signals, imposing SEC. 2. DEFINITIONS. wherein the purchaser has a preexisting rela- weekly ‘‘maintenance fees’’ that may In this Act: tionship with the wireless service provider or take away up to 20 percent of the (1) COMMISSION.—The term ‘‘Commission’’ establishes a carrier-customer relationship card’s overall value, and billing for means the Federal Trade Commission. via the purchase of a prepaid wireless tele- (2) FEES.— communications service handset package. calls in 3-minute increments. (7) PREPAID TELEPHONE CALLING SERVICE As a result of these investigations, (A) IN GENERAL.—The term ‘‘fees’’ means all charges, fees, taxes, or surcharges, in- PROVIDER.—The term ‘‘prepaid telephone some companies have been fined or cluding connection, hang-up, service, calling service provider’’ means any entity, have entered into consent decrees for- payphone, and maintenance charges, which corporation, company, association, firm, bidding them from engaging in some may be applicable to the use of a prepaid partnership, or person providing prepaid deceptive practices. In addition, some telephone calling card or a prepaid telephone telephone calling service to the public using states—including Florida—have im- calling service used by a consumer for calls its own, or a resold, telecommunications net- posed certain regulatory requirements originating within the United States. work or voice over Internet technology. (8) WIRELESS TELECOMMUNICATIONS SERV- on prepaid calling card providers and (B) EXCLUSION.—The term ‘‘fees’’ does not ICE.—The term ‘‘wireless telecommuni- distributors. To date, however, neither include the applicable per unit or per minute rate for the particular destination called by cations service’’ has the meaning given the the Federal Communications Commis- a consumer. term ‘‘commercial mobile service’’ in section sion nor the Federal Trade Commission (3) INTERNATIONAL PREFERRED DESTINA- 332(d) of the Communications Act of 1934 (47 has taken any action to impose up- TION.—The term ‘‘international preferred U.S.C. 332(d)). front nationwide consumer protection destination’’ means a specific international SEC. 3. REQUIRED DISCLOSURES OF PREPAID requirements on this industry. This destination named on a prepaid telephone TELEPHONE CALLING CARDS OR lack of Federal standards allows many calling card or on the packaging material ac- SERVICES. of these unscrupulous operators to companying a prepaid telephone calling (a) RULEMAKING.—Not later than 180 days move from State to State, and create card. after the date of the enactment of this Act, (4) PREPAID TELEPHONE CALLING CARD.— the Commission shall prescribe regulations new ‘‘shell companies’’ to escape con- (A) IN GENERAL.—The terms ‘‘prepaid tele- that require every prepaid telephone calling sumer protection regulations. This is phone calling card’’ and ‘‘card’’ mean any service provider and prepaid telephone call- wrong, and I think we need to fix this right of use purchased in advance for a sum ing card distributor to disclose, with respect situation. certain linked to an access number and au- to the terms and conditions of a prepaid tele- That is why I rise today to introduce thorization code that enables a consumer to phone calling card or service provided, sold, the Prepaid Calling Card Consumer use a prepaid telephone calling service. Such resold, issued, or distributed by such service Protection Act of 2008. rights of use may be embodied on a card or provider or distributor, as the case may be, The Prepaid Calling Card Consumer other physical object or may be purchased by the following: Protection Act of 2008 requires the Fed- an electronic or telephonic means through (1)(A) The number of calling units or min- eral Trade Commission to draft com- which the purchaser obtains access numbers utes of domestic interstate calls provided by and authorization codes that are not phys- such card or service at the time of purchase; prehensive rules requiring all prepaid ically located on a card or other physical ob- or telephone calling card providers and ject. (B) the dollar value of such card or service distributors to disclose the rates and (B) EXCLUSION.—The terms ‘‘prepaid tele- and the domestic interstate rate per minute fees associated with their calling cards phone calling card’’ and ‘‘card’’ do not in- provided by such card or service at the time upfront, at the point of sale. It also re- clude cards or other rights of use that pro- of purchase. quires providers who market their vide access to— (2) The applicable calling unit or per cards in languages other than English (i) a telecommunications service with re- minute rates for all international preferred to disclose rates and fees in that lan- spect to which the card or other rights of use destinations served by such card or service. and the telecommunications service are pro- (3) The applicable per minute rates for all guage as well. Furthermore, the legis- vided for free or at no additional charge as a individual international destinations served lation requires providers to honor the promotional item accompanying a product by such card or service. cards for at least a year after the time or service purchased by a consumer; or (4) That the rates described in paragraph the card is first used. (ii) a wireless telecommunications service (3) may be obtained through the prepaid tele- To enforce these disclosure require- account with a wireless service provider that phone calling card provider’s toll-free cus- ments, the bill gives the Federal Trade the purchaser has a preexisting relationship tomer service number or Internet website. Commission, State Attorneys General, with or establishes a carrier-customer rela- (5) All terms and conditions pertaining to and State consumer protection advo- tionship with via the purchase of a prepaid the use of such card or service, including the wireless telecommunications service handset following: cates the ability to sue the fraudsters package. (A) The maximum amount and frequency who violate these requirements in Fed- (5) PREPAID TELEPHONE CALLING CARD DIS- of all fees. eral court. In addition, the law ex- TRIBUTOR.— (B) Applicable policies relating to refund, pressly preserves additional state con- (A) IN GENERAL.—The term ‘‘prepaid tele- recharge, decrement, and expiration. sumer protection requirements—such phone calling card distributor’’ means any (C) Limitations, if any, on the use or pe- as state utility commission certifi- entity, corporation, company, association, riod of time for which the displayed, pro- cation or bonding requirements. firm, partnership, or person that purchases moted, or advertised minutes or rates will be I invite my colleagues to join with prepaid telephone calling cards or services available to the customer. from a prepaid telephone calling card dis- (6) The name and address of such service Senators SNOWE, KERRY, MARTINEZ and tributor or prepaid telephone calling service provider. myself in supporting the Prepaid Call- provider and sells, resells, issues, or distrib- (7) A toll-free telephone number to contact ing Card Consumer Protection Act of utes prepaid telephone calling cards for a fee the customer service department of such 2008. We should waste no time in ensur- to 1 or more distributors of such cards or to service provider and the hours of service of ing that military servicemembers, sen- 1 or more retail sellers of such cards. such customer service department.

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3978 CONGRESSIONAL RECORD — SENATE May 8, 2008

(b) CLEAR AND CONSPICUOUS DISCLOSURE OF paid telephone calling service provider to a minutes, or the per minute rate to a specific REQUIRED INFORMATION AND LANGUAGE RE- consumer at the time the consumer places a destination, are subject to fees or charges, or QUIREMENTS.—The regulations prescribed call to a dialed destination with a prepaid by utilizing other disclaimers or limitations. under subsection (a) shall include require- telephone calling card or service. SEC. 5. ENFORCEMENT BY THE FEDERAL TRADE ments as follows: (4) EXPIRATION.—Unless a different expira- COMMISSION. (1) CARDS.—In the case of a prepaid tele- tion date is clearly disclosed pursuant to the (a) UNFAIR AND DECEPTIVE ACT OR PRAC- phone calling card, the disclosures described disclosure requirements of regulations pre- TICE.—Notwithstanding any other provision in subsection (a) (other than paragraph (3) of scribed under section 3, to provide, sell, re- of law, a violation of a regulation prescribed such subsection) shall be printed in plain sell, issue, or distribute a prepaid telephone under section 3 or the commission of an un- English in a clear and conspicuous location calling card or service that expires— lawful act proscribed under section 4 shall be on each prepaid telephone calling card or the (A) before the date that is 1 year after the treated as a violation of a rule defining an packaging of such card so that such disclo- date on which such card or service is first unfair or deceptive act or practice prescribed sures are plainly visible to a consumer at the used; or under section 18(a)(1)(B) of the Federal Trade point of sale. (B) in the case of a prepaid telephone call- Commission Act (15 U.S.C. 57a(a)(1)(B)). (2) ONLINE SERVICES.—In the case of a pre- ing card or service that permits a consumer (b) AUTHORITY OF THE COMMISSION.—The paid telephone calling service that con- to purchase additional usage minutes or add Commission shall enforce this Act in the sumers access and purchase via the Internet, additional value to the card or service, be- same manner and by the same means as the disclosures described in subsection (a) fore the date that is 1 year after the date on though all applicable terms and provisions of (other than paragraph (4) of such subsection) which the consumer last purchased addi- the Federal Trade Commission Act were in- shall be displayed in plain English in a clear tional usage minutes or added additional corporated into and made a part of this Act. and conspicuous location on the Internet site value to the card or service. (c) RULEMAKING AUTHORITY.—The Commis- from which the consumer purchases such (5) CHARGES FOR UNCONNECTED CALLS.—To sion may prescribe regulations to carry out service. assess any fee or charge for any unconnected this Act. (3) ADVERTISING AND OTHER PROMOTIONAL telephone call. For purposes of this para- SEC. 6. STATE ENFORCEMENT. MATERIAL.—The disclosures described in sub- graph, a telephone call shall not be consid- section (a) (other than paragraph (3) of such ered connected if the person placing the call (a) IN GENERAL.— subsection) shall be printed on any adver- receives a busy signal or if the call is unan- (1) CIVIL ACTIONS.—In any case in which the tising for the prepaid telephone calling card swered. attorney general of a State, a State utility or service, including on any signs for display (b) PREPAID TELEPHONE CALLING CARD DIS- commission, or other authorized State con- by retail merchants, any promotional TRIBUTOR.—It shall be unlawful for any pre- sumer protection agency has reason to be- emails, any Internet site used to promote paid telephone calling card distributor to do lieve that an interest of the residents of that such card or service, and on any other pro- any of the following: State has been or is threatened or adversely motional material. (1) UNDISCLOSED FEES AND CHARGES.—To as- affected by the engagement of any person in (4) LANGUAGES OTHER THAN ENGLISH.—If a sess or deduct from the balance of a prepaid a practice that is prohibited under this Act, language other than English is predomi- telephone calling card any fee or other the State, as parens patriae, may bring a nantly used on a prepaid telephone calling amount for use of the prepaid telephone call- civil action on behalf of the residents of that card or its packaging, or in the point-of-sale ing service, except— State in a district court of the United States advertising, Internet advertising, or pro- (A) the per minute rate or value for each of appropriate jurisdiction, or any other motional material of a prepaid telephone particular destination called by the con- court of competent jurisdiction— calling card or prepaid telephone calling sumer; and (A) to enjoin that practice; service, than the disclosures required by the (B) fees that are disclosed as required by (B) to enforce compliance with this Act; regulations prescribed under subsection (a) regulations prescribed under section 3. (C) to obtain damage, restitution, or other shall be disclosed in that language on such (2) MINUTES AS PROMOTED AND ADVER- compensation on behalf of residents of the card, packaging, advertisement, or pro- TISED.—To sell, resell, issue, or distribute State; or motional material in the same manner as if any prepaid telephone calling card that the (D) to obtain such other relief as the court English were used. distributor knows provides fewer minutes may consider to be appropriate. (c) ADDITIONAL REGULATIONS.—The Com- than the number of minutes promoted or ad- (2) NOTICE TO FEDERAL TRADE COMMISSION.— mission may, in accordance with section 553 vertised, or a higher per minute rate to a (A) IN GENERAL.—Before filing an action of title 5, United States Code, prescribe such specific destination than the per minute rate under paragraph (1), the attorney general of other regulations as the Commission deter- to that specific destination promoted or ad- a State, a State utility commission, or an mines are necessary to protect consumers of vertised, on— authorized State consumer protection agen- prepaid telephone calling cards and services. (A) the prepaid telephone calling card; cy shall provide to the Commission— SEC. 4. UNLAWFUL CONDUCT RELATED TO PRE- (B) any point of sale material relating to (i) written notice of the action; and PAID TELEPHONE CALLING CARDS. the card; or (ii) a copy of the complaint for the action. (a) PREPAID TELEPHONE CALLING SERVICE (C) other advertising relating to the card (B) EXEMPTION.— PROVIDER.—It shall be unlawful for any pre- or service. (i) IN GENERAL.—Subparagraph (A) shall paid telephone calling service provider to do (3) MINUTES ANNOUNCED, PROMOTED, OR AD- not apply to the filing of an action under any of the following: VERTISED THROUGH VOICE PROMPTS.—To sell, paragraph (1) if the attorney general of a (1) UNDISCLOSED FEES AND CHARGES.—To as- resell, issue, or distribute a prepaid tele- State, a State utility commission, or an au- sess or deduct from the balance of a prepaid phone calling card that such distributor thorized State consumer protection agency telephone calling card any fee or other knows provides fewer minutes than the num- filing such action determines that it is not amount for use of the prepaid telephone call- ber of minutes announced, promoted, or ad- feasible to provide the notice described in ing service, except— vertised through any voice prompt given to a subparagraph (A) before the filing of the ac- (A) the per minute rate or value for each consumer at the time the consumer places a tion. particular destination called by the con- call to a dialed destination with the prepaid (ii) NOTIFICATION.—In an action described sumer; and telephone calling card or service. in clause (i), the attorney general of a State, (B) fees that are disclosed as required by (4) EXPIRATION.—Unless a different expira- a State utility commission, or an authorized regulations prescribed under section 3. tion date is clearly disclosed pursuant to the State consumer protection agency shall pro- (2) MINUTES AND RATES AS PROMOTED AND disclosure requirements of regulations pre- vide notice and a copy of the complaint to ADVERTISED.—With respect to a prepaid tele- scribed under section 3, to provide, sell, re- the Commission at the time the action is phone calling card for a service of the pre- sell, issue, or distribute a prepaid telephone filed. paid telephone calling service provider, to calling card that expires— (b) INTERVENTION BY FEDERAL TRADE COM- provide fewer minutes than the number of (A) before the date that is 1 year after the MISSION.— minutes promoted or advertised, or to charge date on which such card or service is first (1) IN GENERAL.—Upon receiving notice a higher per minute rate to a specific des- used; or under subsection (a)(2), the Commission may tination than the per minute rate to that (B) in the case of a prepaid telephone call- intervene in the action that is the subject of specific destination promoted or advertised, ing card or service that permits a consumer such notice. on— to purchase additional usage minutes or add (2) EFFECT OF INTERVENTION.—If the Com- (A) the prepaid telephone calling card; additional value to the card or service, be- mission intervenes in an action under sub- (B) any point-of-sale material relating to fore the date that is 1 year after the date on section (a), the Commission may— the card; or which the consumer last purchased addi- (A) be heard with respect to any matter (C) other advertising related to the card or tional usage minutes or added additional that arises in that action; and service. value to the card or service. (B) file a petition for appeal. (3) MINUTES ANNOUNCED, PROMOTED, AND AD- (c) LIABILITY.—A prepaid telephone calling (c) CONSTRUCTION.—Nothing in this Act VERTISED THROUGH VOICE PROMPTS.—To pro- service provider or a prepaid telephone call- may be construed to prevent an attorney vide fewer minutes than the number of min- ing card distributor may not avoid liability general of a State, a State utility commis- utes announced, promoted, or advertised under this section by stating that the dis- sion, or an authorized State consumer pro- through any voice prompt given by the pre- played, announced, promoted, or advertised tection agency from exercising the powers

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3979 conferred on the attorney general, a State was killed on patrol in Iraq while car- There being no objection, the text of utility commission, or an authorized State rying the battle flag his father held in the bill was ordered to be placed in the consumer protection agency by the laws of Vietnam, native veterans have served RECROD, as follows: that State— bravely and honorably. S. 3000 (1) to conduct investigations; Unfortunately, too often our Nation’s (2) to administer oaths or affirmations; Be it enacted by the Senate and House of Rep- (3) to compel the attendance of witnesses track record in serving native veterans resentatives of the United States of America in or the production of documentary and other does not match their service. Espe- Congress assembled, evidence; cially in the case of native veterans SECTION 1. SHORT TITLE. (4) to enforce any State consumer protec- who return to their ancestral home- This Act may be cited as the ‘‘Native tion laws of general applicability; or lands, reservation communities, or American Veterans Access Act of 2008’’. (5) to establish or utilize existing adminis- SEC. 2. INCLUSION OF FEDERALLY RECOGNIZED tribal villages, many native veterans TRIBAL ORGANIZATIONS IN CER- trative procedures to enforce the provisions are geographically and culturally dis- of the law of such State. TAIN GRANT PROGRAMS OF THE DE- connected from the services provided PARTMENT OF VETERANS AFFAIRS (d) VENUE; SERVICE OF PROCESS.— FOR THE STATES AND TERRITORIES. (1) VENUE.—Any action brought under sub- by State and Federal veterans’ pro- grams. (a) TREATMENT OF TRIBAL ORGANIZATION section (a) may be brought in the district HEALTH FACILITIES AS STATE HOMES.—Sec- court of the United States that meets appli- Part of the problem is that veterans’ tion 8138 of title 38, United States Code, is cable requirements relating to venue under programs are not always designed with amended— section 1391 of title 28, United States Code. native veterans in mind. For example, (1) by redesignating subsection (e) as sub- (2) SERVICE OF PROCESS.—In an action while the Department of Veterans Af- section (f); and brought under subsection (a), process may be fairs and Department of Labor operate (2) by inserting after subsection (d) the fol- served in any district in which the defend- several exemplary veterans’ grant pro- lowing new subsection (e): ant— ‘‘(e)(1) A health facility (or certain beds in (A) is an inhabitant; or grams for State governments, most of these programs are not open to tribal a health facility) of a tribal organization is (B) may be found. treatable as a State home under subsection SEC. 7. APPLICATION. governments. The bill I am introducing (a) in accordance with the provisions of that The regulations prescribed under section 3 today would address this issue, by giv- subsection. and the provisions of section 4 shall apply to ing tribal governments access to many ‘‘(2) Except as provided in paragraph (3), any prepaid telephone calling card issued or of these important programs. the provisions of this section shall apply to placed into the stream of commerce, and to First, my bill would provide access to a health facility (or certain beds in such fa- any advertisement, promotion, point-of-sale VA’s two nursing home grants, which cility) treated as a State home under sub- material or voice prompt regarding a prepaid help local governments construct vet- section (a) by reason of this subsection to telephone calling service that is created or erans’ nursing homes and pay for nurs- the same extent as health facilities (or beds) disseminated 90 days after the date on which treated as a State home under subsection (a). the regulations are prescribed under section ing home care, adult day care, domi- ‘‘(3) Subsection (f) shall not apply to the 3(a). ciliary care, and hospital care. It is im- treatment of health facilities (or certain SEC. 8. PREEMPTION. portant that tribal governments be in- beds in such facilities) of tribal organiza- Nothing in this Act shall affect the author- cluded in these grants, given the ex- tions as a State home under subsection (a). ity of any State to establish or continue in pected rise in the number of older na- ‘‘(4) In this subsection, the term ‘tribal or- effect a provision of the law of a State relat- tive veterans. The U.S. Census projects ganization’ has the meaning given such term ing to regulation of prepaid calling cards, in section 3764(4) of this title.’’. that while the overall number of older (b) STATE HOME FACILITIES FOR DOMI- prepaid calling card distributors, prepaid veterans will decrease by 10 percent by calling services, or prepaid calling service CILIARY, NURSING, AND OTHER CARE.— providers, except to the extent that such 2020, during that same period the num- (1) IN GENERAL.—Chapter 81 of such title is provision of law is inconsistent with the pro- ber of older native veterans will in- further amended— visions of this Act or a regulation prescribed crease by 60 percent. This expected (A) in section 8131, by adding at the end the under this Act, and then only to the extent boom in older native veterans makes it following new paragraph: of such inconsistency. A provision of the law important that we give tribal govern- ‘‘(5) The term ‘tribal organization’ has the of a State is not inconsistent with this Act meaning given such term in section 3764(4) of ments the same opportunities we al- this title.’’; or a regulation prescribed under this Act if ready provide State governments to such provision provides equal or greater pro- (B) in section 8132, by inserting ‘‘and tribal care for their elder veterans. organizations’’ after ‘‘the several States’’; tection to consumers than what is provided My bill would also give the Secretary under this Act or the regulations prescribed and under this Act. of Labor discretion to include tribal (C) by inserting after section 8133 the fol- governments in Veterans Employment lowing new section: By Mr. AKAKA (for himself and and Training programs and grants. ‘‘§ 8133A. Tribal organizations Mr. INOUYE): Veterans’ employment services are ‘‘(a) The Secretary may make grants to S. 3000. A bill to amend title 38, much needed among native veterans, tribal organizations under this subchapter in United States Code, to include Feder- and in Indian Country. Census data in- order to carry out the purposes of this sub- ally recognized tribal organizations in dicates that American Indian and Alas- chapter. ‘‘(b) Grants to tribal organizations under certain grant programs of the Depart- ka Native veterans are twice as likely this section shall be made in the same man- ment of Veterans Affairs for the sev- as other veterans to be unemployed. ner, and under the same conditions, as eral States and territories, and for For those veterans living on-reserva- grants made to the several States under the other purposes; to the Committee on tion, the labor market is shamefully provisions of this subchapter, subject to such Veterans’ Affairs. dismal: a recently published report exceptions as the Secretary shall prescribe Mr. AKAKA. Mr. President, today I from the Bureau of Indian Affairs for purposes of this subchapter to take into proudly introduce, along with my good found on-reservation unemployment to account the unique circumstances of tribal friend and colleague, the senior Sen- be 49 percent. That unemployment rate organizations.’’. (2) CLERICAL AMENDMENT.—The table of ator from Hawaii, Senator DANIEL is twice as high as national unemploy- sections at the beginning of chapter 81 of INOUYE, the Native American Veterans ment was during the worst year of the such title is amended by inserting after the Access Act. This measure would pro- Great Depression. Surely it is not too item relating to section 8133 the following vide equitable veterans’ services to Na- much to ask that tribal governments new item: tive Americans by allowing tribal gov- in these circumstances be considered ‘‘8133A. Tribal organizations.’’. ernments to apply for veterans’ pro- for the veterans’ employment programs (c) JOB COUNSELING, TRAINING AND PLACE- gram grants currently limited to States and U.S. Territories already MENT SERVICES FOR VETERANS.—Section 4101 States, and in some cases, even U.S. have access to. of such title is amended— Territories. I ask my colleagues to join me in (1) in paragraph (6), by inserting ‘‘tribal or- Native veterans have a long history supporting these measures, as we work ganizations,’’ after ‘‘to the extent deter- of honorable and extraordinary service towards parity in access and benefits mined necessary and feasible,’’; and in our national defense. From the (2) by adding at the end the following new for Native American veterans. paragraph: American Indians who served alongside Mr. President, I ask unanimous con- ‘‘(9) The term ‘tribal organization’ has the General George Washington, to Nainoa sent that the text of the bill be printed meaning given such term in section 3764(4) of Hoe, a Native Hawaiian soldier who in the the RECORD. this title.’’.

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3980 CONGRESSIONAL RECORD — SENATE May 8, 2008 SUBMITTED RESOLUTIONS Whereas the Congressional Club has hosted (4) encourages the people of the United the annual First Lady’s Luncheon every States— spring since 1912 and annually donates tens (A) to strive for greater friendship, civil- SENATE RESOLUTION 555—RECOG- of thousands of dollars to charities in the ity, and generosity in order to heighten pub- NIZING THE 100TH ANNIVERSARY name of the First Lady; lic service, elevate the culture, and enrich OF THE FOUNDING OF THE CON- Whereas, among its many charitable re- humanity; and (B) to seek opportunities to give finan- GRESSIONAL CLUB. cipients, the Congressional Club has chosen mentoring programs, United National Indian cially and to volunteer to assist charitable Mr. ENZI (for himself, Mr. NELSON of Tribal Youth, literacy programs, the White organizations in their own communities. Florida, Mr. WICKER, and Mr. NELSON House library, youth dance troupes, domes- f of Nebraska) submitted the following tic shelters, and child care centers; resolution; which was referred to the Whereas the Congressional Club members, SENATE RESOLUTION 556—CON- Committee on the Judiciary: upon the suggestion of Mrs. Eleanor Roo- GRATULATING CHARTER sevelt, have been encouraged to become dis- SCHOOLS AND THEIR STUDENTS, S. RES. 555 cussion leaders on national security in their PARENTS, TEACHERS, AND AD- Whereas the Congressional Club was orga- home States, from the trials of World War II MINISTRATORS ACROSS THE nized in 1908 by 25 women who were influen- to the threats of terrorism; tial in Washington’s official life and who UNITED STATES FOR THEIR ON- Whereas the Congressional Club extends GOING CONTRIBUTIONS TO EDU- wanted to establish a nonsectarian and non- the hand of friendship and goodwill globally political group that would promote friend- by hosting an annual diplomatic reception to CATION, AND FOR OTHER PUR- ship and cordiality in public life; entertain the spouses of ambassadors to the POSES. Whereas those women founded the Club to United States; bring the wives of Members of Congress to- Ms. LANDRIEU (for herself, Mr. AL- Whereas the Congressional Club is solely gether in a hospitable and compatible envi- EXANDER, Mr. LIEBERMAN, Mr. BURR, supported by membership dues and the sale ronment in the Nation’s Capital; Mr. VITTER, Mr. GREGG, Mr. SUNUNU, of cookbooks and has never received any Whereas the Congressional Club was offi- Mr. ALLARD, Mr. ISAKSON, and Mr. CAR- Federal funding; cially established in 1908 by a unanimous Whereas the 14 editions of the Congres- PER) submitted the following resolu- vote in both the Senate and the House of sional Club cookbook, first published in 1928, tion; which was considered and agreed Representatives and is the only club in the reflect the life and times of the United to: world to be founded by an Act of Congress; States with recipes and signatures of Mem- S. RES. 556 Whereas the Act entitled ‘‘An Act to incor- bers of Congress, First Ladies, Ambassadors, porate the Congressional Club’’ (35 Stat. 476, Whereas charter schools deliver high-qual- chapter 226) was signed by President Theo- and members of the Club; ity education and challenge all students to dore Roosevelt on May 30, 1908; Whereas the Congressional Club member- reach their potential; Whereas the Congressional Club’s founding ship has expanded to include spouses and Whereas charter schools provide thousands was secured by womanly wiles and feminine daughters of Representatives, Senators, Su- of families with diverse and innovative edu- determination in the enactment of that Act preme Court Justices, and Cabinet members; cational options for their children; unanimously on May 28, 1908, in order to Whereas 7 members of the Congressional Whereas charter schools are public schools overcome the opposition of Representative Club have become First Lady: Mrs. Florence authorized by a designated public entity that John Sharp Williams of Mississippi, who op- Harding, Mrs. Lou Hoover, Mrs. Bess Tru- are responding to the needs of our commu- posed all women’s organizations; man, Mrs. Jacqueline Kennedy, Mrs. Patricia nities, families, and students and promoting Whereas, when Representative Williams Nixon, Mrs. Betty Ford, and Mrs. Barbara the principles of quality, choice, and innova- was called out of the chamber by Mrs. Wil- Bush; tion; liams, the good-mannered representative Whereas several members of the Congres- Whereas, in exchange for the flexibility obliged and withdrew his opposition and re- sional Club have been elected to Congress, and autonomy given to charter schools, they quest for a recorded vote, saying, ‘‘upon this including Mrs. Jo Ann Emerson, Mrs. Lois are held accountable by their sponsors for particular bill there will not be a roll call, Capps, and Mrs. Mary Bono, and former improving student achievement and for their because it would cause a great deal of domes- presidents of the Congressional Club Mrs. financial and other operations; tic unhappiness in Washington if there Lindy Boggs and Mrs. Doris Matsui; Whereas 40 States and the District of Co- were’’; Whereas leading figures in politics, the lumbia have passed laws authorizing charter Whereas the first Congressional Clubhouse arts, and the media have visited the Club- schools; was at 1432 K Street Northwest in Wash- house throughout the past 100 years; Whereas more than 4,300 charter schools ington, District of Columbia, and opened on Whereas the Congressional Club is home to are now operating in 40 States and the Dis- December 11, 1908, with a reception for Presi- the First Lady’s gown display, a museum trict of Columbia, serving more than 1,200,000 dent-elect and Mrs. William Taft; with replica inaugural and ball gowns of the students; Whereas, after Mrs. John B. Henderson of First Ladies from Mrs. Mary Todd Lincoln to Whereas, over the last 14 years, Congress Missouri donated land on the corner of New Mrs. Laura Bush; has provided over $2,237,256,000 in support to Hampshire Avenue and U Street Northwest, Whereas the Congressional Club is charged the charter school movement through facili- the cornerstone of the current Clubhouse with receiving the Presidential couple, hon- ties financing assistance and grants for plan- was laid at that location on May 21, 1914; oring the Vice President and spouse, the ning, startup, implementation, and dissemi- Whereas that Clubhouse was built by Speaker of the House of Representatives and nation; George Totten in the Beaux Arts style and is spouse, and the Chief Justice and spouse, and Whereas many charter schools improve listed on the National Register of Historic providing the orientation for spouses of new their students’ achievement and stimulate Places; Members of Congress; and improvement in traditional public schools; Whereas the mortgage on the Clubhouse Whereas the Congressional Club will cele- Whereas charter schools must meet the was paid for by the sales of the Club’s cook- brate its 100th anniversary with festivities student achievement accountability require- book and the mortgage document was burned and ceremonies during 2008 that include the ments under the Elementary and Secondary by Mrs. Bess Truman in a silver bowl on the ringing of the official bells of the United Education Act of 1965 in the same manner as 40th anniversary of the Club’s founding; States Congress, a Founder’s Day program, a traditional public schools, and often set Whereas the Congressional Club has re- birthday cake at the First Lady’s Luncheon, higher and additional individual goals to en- mained a good neighbor on the U Street cor- an anniversary postage stamp and cancella- sure that they are of high quality and truly ridor for more than 90 years, encouraging the tion stamp, a 100-year pin and pendant de- accountable to the public; revitalization of the area during a time of so- signed by former president Lois Breaux, and Whereas charter schools give parents new cioeconomic challenges and leading the way invitations to President and Mrs. Bush, freedom to choose their public schools, rou- in upkeep and maintenance of historic prop- Speaker and Mr. Pelosi, and Chief Justice tinely measure parental satisfaction levels, erty; and Mrs. Roberts to visit and celebrate 100 and must prove their ongoing success to par- Whereas the Congressional Club honors years of public service, civility, and growth ents, policymakers, and their communities; and supports the people in its neighborhood at the Congressional Club: Now, therefore, be Whereas over 50 percent of charter schools by inviting the local police and fire depart- it report having a waiting list, and the total ments to the Clubhouse for lunch and deliv- Resolved, That the Senate— number of students on all such waiting lists ering trays of Member-made cookies and (1) recognizes the 100th anniversary of the is enough to fill over 1,100 average-sized candies to them during the holidays, by founding of the Congressional Club; charter schools; hosting an annual Senior Citizens Apprecia- (2) acknowledges the contributions of po- Whereas charter schools nationwide serve tion Day luncheon for residents of a neigh- litical spouses to public life in the United a higher percentage of low-income and mi- borhood nursing home, and by hosting an an- States and around the world through the nority students than the traditional public nual holiday brunch for neighborhood chil- Congressional Club for the past 100 years; school system; dren each December that includes a festive (3) honors the past and present member- Whereas charter schools have enjoyed meal, gifts, and a visit from Santa Claus; ship of the Congressional Club; and broad bipartisan support from the President,

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3981 Congress, State Governors and legislatures, AMENDMENTS SUBMITTED AND TEXT OF AMENDMENTS educators, and parents across the United PROPOSED States; and SA 4733. Mr. MENENDEZ (for him- Whereas the 9th annual National Charter SA 4733. Mr. MENENDEZ (for himself, Mr. self, Mr. LAUTENBERG, Mr. SCHUMER, Schools Week, to be held May 5 through May LAUTENBERG, Mr. SCHUMER, Mr. NELSON, of Mr. NELSON of Florida, and Mrs. CLIN- 9, 2008, is an event sponsored by charter Florida, and Mrs. CLINTON) submitted an TON) submitted an amendment in- schools and grassroots charter school organi- amendment intended to be proposed to tended to be proposed to amendment zations across the United States to recognize amendment SA 4707 proposed by Mr. DODD SA 4707 proposed by Mr. DODD (for him- the significant impacts, achievements, and (for himself and Mr. SHELBY) to the bill S. innovations of charter schools: Now, there- 2284, to amend the National Flood Insurance self and Mr. SHELBY) to the bill S. 2284, fore, be it Act of 1968, to restore the financial solvency to amend the National Flood Insurance Resolved, That the Senate— of the flood insurance fund, and for other Act of 1968, to restore the financial sol- (1) acknowledges and commends charter purposes. vency of the flood insurance fund, and schools and their students, parents, teachers, SA 4734. Mr. ENSIGN (for himself and Mr. for other purposes; as follows: and administrators across the United States REID) proposed an amendment to amendment for their ongoing contributions to education, SA 4707 proposed by Mr. DODD (for himself On page 34, between lines 14 and 15, insert especially their impressive results closing and Mr. SHELBY) to the bill S. 2284, supra. the following: America’s persistent achievement gap, and SA 4735. Mr. THUNE (for himself and Mr. (d) COMMUNICATION AND OUTREACH.— improving and strengthening our public JOHNSON) submitted an amendment intended (1) IN GENERAL.—The Director shall— school system. to be proposed to amendment SA 4707 pro- (A) work to enhance communication and (2) supports the ideas and goals of the 9th posed by Mr. DODD (for himself and Mr. outreach to States, local communities, and annual National Charter Schools Week; and SHELBY) to the bill S. 2284, supra. property owners about the effects of— (3) encourages the people of the United SA 4736. Mr. DODD (for himself and Mr. (i) any potential changes to National Flood States to conduct appropriate programs, SHELBY) submitted an amendment intended Insurance Program rate maps that may re- ceremonies, and activities to demonstrate to be proposed to amendment SA 4707 pro- sult from the mapping program required support for charter schools during this week posed by Mr. DODD (for himself and Mr. under this section; and long celebration in communities throughout SHELBY) to the bill S. 2284, supra. (ii) that any such changes may have on the United States. SA 4737. Mr. REID (for himself, Mr. DOR- flood insurance purchase requirements; and f GAN, Mr. BINGAMAN, Mrs. BOXER, Mr. LEVIN, (B) engage with local communities to en- hance communication and outreach to the SENATE RESOLUTION 557—SUP- Ms. STABENOW, Mr. LEAHY, Mr. SCHUMER, Mr. BROWN, Mr. SANDERS, Mr. DURBIN, Mr. residents of such communities on the mat- PORTING THE GOALS AND KERRY, Mr. MENENDEZ, Ms. LANDRIEU, Mr. ters described under subparagraph (A). IDEALS OF NATIONAL TRAIN CARPER, Mr. INOUYE, Mr. LAUTENBERG, Mr. (2) REQUIRED ACTIVITIES.—The communica- DAY SALAZAR, Mr. REED, and Mr. HARKIN) sub- tion and outreach activities required under Mr. LAUTENBERG (for himself, Mrs. mitted an amendment intended to be pro- paragraph (1) shall include— (A) notifying property owners when their HUTCHISON, Mr. BAUCUS, Mr. BIDEN, Mr. posed by him to the bill S. 2284, supra; which was ordered to lie on the table. properties become included in, or when they CARPER, Mrs. CLINTON, Mr. DORGAN, SA 4738. Ms. STABENOW (for herself and are excluded from, an area having special Mr. DURBIN, Mr. KERRY, Mr. MENENDEZ, Mr. LEVIN) submitted an amendment in- flood hazards and the effect of such inclusion Mr. SCHUMER, Mr. WHITEHOUSE, Mr. tended to be proposed to amendment SA 4707 or exclusion on the applicability of the man- WYDEN, Mr. DOMENICI, Ms. SNOWE, Mr. proposed by Mr. DODD (for himself and Mr. datory flood insurance purchase requirement CRAPO, Mr. COCHRAN, Mr. SPECTER, Mr. SHELBY) to the bill S. 2284, supra; which was under section 102 of the Flood Disaster Pro- LIEBERMAN, Mr. BAYH, and Mr. BROWN) ordered to lie on the table. tection Act of 1973 (42 U.S.C. 4012a) to such submitted the following resolution; SA 4739. Mr. BAUCUS submitted an amend- properties; which was referred to the Committee ment intended to be proposed by him to the (B) educating property owners regarding on Commerce, Science, and Transpor- bill S. 2284, supra; which was ordered to lie the flood risk and reduction of this risk in their community, including the continued tation: on the table. SA 4740. Mr. BAUCUS submitted an amend- flood risks to areas that are no longer sub- S. RES. 557 ment intended to be proposed by him to the ject to the flood insurance mandatory pur- Whereas, on May 10, 1869, the ‘‘golden bill S. 2284, supra; which was ordered to lie chase requirement; spike’’ was driven into the final tie at Prom- on the table. (C) educating property owners regarding ontory Summit, Utah, to join the Central SA 4741. Mr. BAUCUS submitted an amend- the benefits and costs of maintaining or ac- Pacific and the Union Pacific Railroads, ment intended to be proposed by him to the quiring flood insurance, including, where ap- ceremonially completing the first trans- bill S. 2284, supra; which was ordered to lie plicable, lower-cost preferred risk policies continental railroad and therefore con- on the table. under the National Flood Insurance Act of necting both coasts of the United States; SA 4742. Mr. BAUCUS submitted an amend- 1968 (42 U.S.C. 4011 et seq.) for such prop- Whereas, in highly populated regions, Am- ment intended to be proposed by him to the erties and the contents of such properties; trak trains and infrastructure carry com- bill S. 2284, supra; which was ordered to lie (D) educating property owners about flood muters to and from work in congested met- on the table. map revisions and the process available such ropolitan areas providing a reliable rail op- owners to appeal proposed changes in flood SA 4743. Mr. BAUCUS submitted an amend- tion, reducing congestion on roads and in the elevations through their community; and ment intended to be proposed by him to the skies; (E) encouraging property owners to main- bill S. 2284, supra; which was ordered to lie Whereas, for many rural Americans, Am- tain or acquire flood insurance coverage. trak represents the only major intercity on the table. SA 4744. Mr. BAUCUS submitted an amend- On page 34, line 15, strike ‘‘(d)’’ and insert transportation link to the rest of the coun- ‘‘(e)’’. try; ment intended to be proposed by him to the Whereas passenger rail provides a more en- bill S. 2284, supra; which was ordered to lie ergy-efficient form of transportation com- on the table. SA 4734. Mr. ENSIGN (for himself pared to autos or air travel; SA 4745. Mr. BAUCUS submitted an amend- and Mr. REID) proposed an amendment Whereas passenger railroads emit only 0.2 ment intended to be proposed by him to the to amendment SA 4707 proposed by Mr. bill S. 2284, supra; which was ordered to lie percent of the travel industry’s total green- DODD (for himself and Mr. SHELBY) to house gases; on the table. SA 4746. Mr. BAUCUS submitted an amend- the bill S. 2284, to amend the National Whereas Amtrak annually provides inter- Flood Insurance Act of 1968, to restore city passenger rail travel to over 25,000,000 ment intended to be proposed by him to the Americans residing in 46 States; bill S. 2284, supra; which was ordered to lie the financial solvency of the flood in- Whereas an increasing number of people on the table. surance fund, and for other purposes; are using trains for travel purposes beyond SA 4747. Mr. BAUCUS submitted an amend- as follows: ment intended to be proposed by him to the commuting to and from work; At the appropriate place, insert the fol- bill S. 2284, supra; which was ordered to lie Whereas our railroad stations are a source lowing: of civic pride, a gateway to our communities, on the table. and a tool for economic growth; and SA 4748. Mr. BAUCUS submitted an amend- SEC. ll. FERNLEY FLOOD COMPENSATION. Whereas Amtrak has designated May 10, ment intended to be proposed by him to the (a) DEFINITIONS.—In this section: 2008, as National Train Day to celebrate the bill S. 2284, supra; which was ordered to lie (1) COVERED PERSON.—The term ‘‘covered way trains connect people and places: Now, on the table. person’’ means a United States citizen, an therefore, be it SA 4749. Mr. BAUCUS submitted an amend- alien lawfully admitted for permanent resi- Resolved, That the Senate supports the ment intended to be proposed by him to the dence, the City of Fernley, Lyon County, a goals and ideals of National Train Day, as bill S. 2284, supra; which was ordered to lie person that is not an individual, or a school designated by Amtrak. on the table. district.

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3982 CONGRESSIONAL RECORD — SENATE May 8, 2008

(2) FERNLEY FLOOD.—The term ‘‘Fernley of residual risk accurately reflects the level On page 72, after line 19, insert the fol- flood’’ means the breach of the Truckee Irri- of flood protection provided by any levee, lowing: gation Canal on January 5, 2008, and subse- dam, or other the man-made structure in (e) STUDY ON GRAND RIVER FLOODWALL.— quent flooding of the City of Fernley, Ne- such area. (1) IN GENERAL.—The Director and the vada. On page 31, after line 14 add: Corps of Engineers, in conjunction with the (3) INJURED PARTY.—The term ‘‘injured ‘‘(v) The level of protection provided by City of Grand Rapids, shall conduct a study party’’ means a covered person that suffered man-made structures.’’ on the Grand River Floodwall in Grand Rap- damages resulting from the Fernley flood. On page 10, after line 16, insert: ids, Michigan, to determine if such (d)—upon decertification of any levee, (b) COMPENSATION AND SOURCE OF FUNDS.— Floodwall (which is built one foot above the dam, or man-made structure under the juris- (1) COMPENSATION.—Each injured party existing 100-year flood levels) is adequate to diction of the Army Corps of Engineers, the shall be eligible to receive from the United provide flood protection. Corps shall immediately provide notice to States compensation for damages suffered as (2) NO COST TO CITY.—The study required the Director of the National Flood Insurance a result of the Fernley flood. under paragraph (1) shall be conducted at no program. (2) SOURCE OF FUNDS.—The Director shall cost to the City of Grand Rapids. compensate each injured party for damages SA 4737. Mr. REID (for himself, Mr. (3) TERMS OF ANALYSIS.—In making the de- resulting from the Fernley flood from the termination required under paragraph (1), DORGAN, Mr. BINGAMAN, Mrs. BOXER, permanent judgment appropriation under the Director and the Corps of Engineers Mr. LEVIN, Ms. STABENOW, Mr. LEAHY, section 1304 of title 31, United States Code. shall— (c) INSURANCE AND OTHER BENEFITS.—The Mr. SCHUMER, Mr. BROWN, Mr. SAND- (A) use the best and most appropriate geo- Director shall reduce the amount to be paid ERS, Mr. DURBIN, Mr. KERRY, Mr. logic, hydrologic, climate data, and flood to an injured party relating to the Fernley MENENDEZ, Ms. LANDRIEU, Mr. CARPER, modeling available; flood by an amount that is equal to the total Mr. INOUYE, Mr. LAUTENBERG, Mr. (B) fully analyze and identify— of insurance benefits (excluding life insur- SALAZAR, Mr. REED, and Mr. HARKIN) (i) the overall risk of failure of the Grand ance benefits) or other payments or settle- submitted an amendment intended to River Floodwall to the City of Grand Rapids; ments of any nature relating to the Fernley be proposed by him to the bill S. 2284, (ii) the existing flood protection measures flood that were paid, or will be paid, to that to amend the National Flood Insurance provided by such Floodwall; and injured party. Act of 1968, to restore the financial sol- (iii) the risk remaining to the City of (d) ACCEPTANCE OF AWARD.—The accept- Grand Rapids after consideration of the ex- ance by a injured party of any payment vency of the flood insurance fund, and isting flood protection measures provided by under this section shall (excluding claims re- for other purposes; which was ordered such Floodwall; and lating to life insurance benefits)— to lie on the table; as follows: (C) assign a realistic cost to taking meas- (1) be final and conclusive as to any claim At the appropriate place, insert the fol- ures to insure against the remaining risk of that injured party relating to damages lowing: identified under subparagraph (B). suffered because of the Fernley flood; and SEC. ll. SUSPENSION OF PETROLEUM ACQUISI- (4) NO UPDATE OF FLOODMAPS UNTIL STUDY (2) constitute a complete and full release of TION FOR STRATEGIC PETROLEUM COMPLETED.—During the period beginning on all claims of that injured party relating to RESERVE. the date of the enactment of this Act and the Fernley flood against the United States, (a) IN GENERAL.—Except as provided in ending on the date on which the study re- the State of Nevada, Lyon County, Nevada, subsection (b) and notwithstanding any quired under paragraph (1) is completed, the the City of Fernley, Nevada, and the Truck- other provision of law, during the period be- Director may not issue any updated flood in- ee-Carson Irrigation District. ginning on the date of enactment of this Act surance rate maps for the City of Grand Rap- (e) REGULATIONS.—Not later than 90 days and ending on December 31, 2008— ids. after the date of enactment of this Act, the (1) the Secretary of the Interior shall sus- Director shall promulgate and publish in the pend acquisition of petroleum for the Stra- SA 4739. Mr. BAUCUS submitted an Federal Register interim final regulations to tegic Petroleum Reserve through the roy- amendment intended to be proposed by carry out this section. alty-in-kind program; and (2) the Secretary of Energy shall suspend him to the bill S. 2284, to amend the SA 4735. Mr. THUNE (for himself and acquisition of petroleum for the Strategic National Flood Insurance Act of 1968; Mr. JOHNSON) submitted an amendment Petroleum Reserve through any other acqui- to restore the financial solvency of the intended to be proposed to amendment sition method. flood insurance fund, and for other pur- (b) RESUMPTION.—Not earlier than 30 days SA 4707 proposed by Mr. DODD (for him- poses; which was ordered to lie on the after the date on which the President noti- table; as follows: self and Mr. SHELBY) to the bill S. 2284, fies Congress that the President has deter- At the appropriate place, insert the fol- to amend the National Flood Insurance mined that the weighted average price of pe- lowing: Act of 1968, to restore the financial sol- troleum in the United States for the most re- vency of the flood insurance fund, and cent 90-day period is $75 or less per barrel— SEC. ll. AIRLINE MERGERS. for other purposes; as follows: (1) the Secretary of the Interior may re- In reviewing the proposed merger of North- west Airlines and Delta Air Lines announced At the end, add the following: sume acquisition of petroleum for the Stra- tegic Petroleum Reserve through the roy- April 14, 2008, the Assistant Attorney Gen- TITLE III—MISCELLANEOUS alty-in-kind program; and eral in charge of the Antitrust Division of SEC. 301. BIG SIOUX RIVER AND SKUNK CREEK, (2) the Secretary of Energy may resume ac- the Department of Justice shall consider any SIOUX FALLS, SOUTH DAKOTA. quisition of petroleum for the Strategic Pe- potential adverse effects on competition in The project for flood control, Big Sioux troleum Reserve through any other acquisi- urban and rural areas with fewer than 200,000 River and Skunk Creek, Sioux Falls, South tion method. residents. Dakota, authorized by section 101(a)(28) of (c) EXISTING CONTRACTS.—In the case of the Water Resources Development Act of any oil scheduled to be delivered to the Stra- SA 4740. Mr. BAUCUS submitted an 1996 (110 Stat. 3666), is modified to authorize tegic Petroleum Reserve pursuant to a con- amendment intended to be proposed by the Secretary to reimburse the non-Federal tract entered into by the Secretary of En- him to the bill S. 2284, to amend the interest for funds advanced by the non-Fed- ergy prior to, and in effect on, the date of en- National Flood Insurance Act of 1968, eral interest for the Federal share of the actment of this Act, the Secretary shall, to to restore the financial solvency of the project, only if additional Federal funds are the maximum extent practicable, negotiate appropriated for that purpose. a deferral of the delivery of the oil for a pe- flood insurance fund, and for other pur- riod of not less than 1 year, in accordance poses; which was ordered to lie on the SA 4736. Mr. DODD (for himself and with procedures of the Department of Energy table; as follows: Mr. SHELBY) submitted an amendment in effect on the date of enactment of this Act At the appropriate place, insert the fol- intended to be proposed to amendment for deferrals of oil. lowing: SA 4707 proposed by Mr. DODD (for him- lll Ms. STABENOW (for himself SEC. . STUDY ON EXISTING CODE-SHARING self and Mr. SHELBY) to the bill S. 2284, SA 4738. AGREEMENTS AND PROPOSED to amend the National Flood Insurance and Mr. LEVIN) submitted an amend- MERGER BETWEEN DELTA AIR LINES AND NORTHWEST AIRLINES. Act of 1968, to restore the financial sol- ment intended to be proposed to amendment SA 4707 proposed by Mr. The Secretary of Transportation shall con- vency of the flood insurance fund, and duct a study on the proposed merger between for other purposes; as follows: DODD (for himself and Mr. SHELBY) to the bill S. 2284, to amend the National Delta Air Lines and Northwest Airlines to On page 10, between lines 16 and 17, insert assess whether, because of existing code- the following: Flood Insurance Act of 1968, to restore sharing agreements between Northwest Air- (3) ACCURATE PRICING.—In carrying out the the financial solvency of the flood in- lines, Air France, and KLM Royal Dutch Air- mandatory purchase requirement under surance fund, and for other purposes; lines— paragraph (1), the Director shall ensure that which was ordered to lie on the table; (1) such merger would provide greater ac- the price of flood insurance policies in areas as follows: cess to United States air transportation

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3983 markets by Air France and KLM Royal At the appropriate place, insert the fol- SA 4747. Mr. BAUCUS submitted an Dutch Airlines; and lowing: amendment intended to be proposed by (2) such increased access would be in the SEC. ll. AIRLINE MERGERS. him to the bill S. 2284, to amend the United States public interest. (a) IN GENERAL.—For any covered airline National Flood Insurance Act of 1968, merger, the waiting period described in sec- SA 4741. Mr. BAUCUS submitted an tion 7A(b)(1) of the Clayton Act (15 U.S.C. to restore the financial solvency of the amendment intended to be proposed by 18a(b)(1)) for that covered airline merger flood insurance fund, and for other pur- him to the bill S. 2284, to amend the shall expire on the latter of— poses; which was ordered to lie on the National Flood Insurance Act of 1968, (1) the date that is 1 year after the date of table; as follows: to restore the financial solvency of the enactment of this Act; or At the end of title VII, insert the fol- (2) the date that such waiting period other- lowing: flood insuance fund, and for other pur- wise expires under section 7A(b)(1) of the SEC. ll. STUDY OF THE IMPACT THAT AIRLINE poses; which was ordered to lie on the Clayton Act (15 U.S.C. 18a(b)(1)) (including table; as follows: MERGERS HAVE HAD ON RURAL such later date as may be set under sub- AREAS. At the appropriate place, insert the fol- section (e)(2) or (g)(2) of such section). (a) IN GENERAL.—The Attorney General lowing: (b) DEFINITION OF COVERED AIRLINE MERG- shall conduct a study on the impact that air- ER.—In this section, the term ‘‘covered air- SEC. ll. AIRLINE MERGERS. line mergers have had on rural areas since line merger’’ means any acquisition of vot- In reviewing the proposed merger of North- deregulation of the airline industry in 1978. ing securities or assets of a person in the air west Airlines and Delta Air Lines announced (b) REPORT.—Not later than 90 days after transport services industry— April 14, 2008, the Assistant Attorney Gen- the date of enactment of this Act, the Attor- (1) relating to which— eral in charge of the Antitrust Division of ney General shall submit the findings from (A) a notice is filed pursuant to the rules the Department of Justice shall consider the study required by subsection (a) to Con- under section 7A(d)(1) of the Clayton Act (15 whether Northwest Airlines or Delta Air gress. U.S.C. 18a(d)(1)) during the 1-year period be- Lines would be able to continue business op- (c) DEFINITION.—In this section, the term ginning on the date of enactment of this Act; erations if such proposed merger does not ‘‘rural areas’’ means areas having fewer than or occur. 50,000 residents. (B) the waiting period described in section Mr. BAUCUS submitted an 7A(b)(1) of the Clayton Act (15 U.S.C. SA 4742. SA 4748. Mr. BAUCUS submitted an amendment intended to be proposed by 18a(b)(1)) has not expired on the date of en- actment of this Act; and amendment intended to be proposed by him to the bill S. 2284, to amend the him to the bill S. 2284, to amend the National Flood Insurance Act of 1968, (2) that the Assistant Attorney General in charge of the Antitrust Division of the De- National Flood Insurance Act of 1968, to restore the financial solvency of the partment of Justice determines is likely to to restore the financial solvency of the flood insuance fund, and for other pur- result in layoffs in, or reductions in air flood insurance fund, and for other pur- poses; which was ordered to lie on the transport services to, rural areas. poses; which was ordered to lie on the table; as follows: table; as follows: At the end of title VII, insert the fol- SA 4745. Mr. BAUCUS submitted an At the end of title VII, insert the fol- lowing: amendment intended to be proposed by lowing: SEC. ll. STUDY OF THE IMPACT THAT AIRLINE him to the bill S. 2284, to amend the MERGERS HAVE HAD ON RURAL National Flood Insurance Act of 1968, SEC. ll. ACTION BY STATE ATTORNEYS GEN- AREAS. to restore the financial solvency of the ERAL AGAINST DELTA AND NORTH- (a) IN GENERAL.—The Attorney General WEST MERGER. flood insurance fund, and for other pur- Congress encourages the Attorney General shall conduct a study on the impact that air- poses; which was ordered to lie on the line mergers have had on rural areas since of any State adversely impacted by the pro- deregulation of the airline industry in 1978. table; as follows: posed Delta and Northwest merger to bring (b) REPORT.—Not later than 90 days after At the end of title VII, insert the fol- an action under the Clayton Act to enjoin the date of enactment of this Act, the Attor- lowing: the merger or recover any appropriate dam- ney General shall submit the findings from SEC. ll. STUDY OF THE IMPACT THAT AIRLINE ages. the study required by subsection (a) to Con- MERGERS HAVE HAD ON NEW COM- gress. MERCIAL AIRLINE ENTRIES INTO SA 4749. Mr. BAUCUS submitted an RURAL MARKETS. (c) DEFINITION.—In this section, the term amendment intended to be proposed by (a) IN GENERAL.—The Attorney General ‘‘rural areas’’ means areas having fewer than him to the bill S. 2284, to amend the 50,000 residents. shall conduct a study on the impact that air- line mergers have had on new commercial National Flood Insurance Act of 1968, SA 4743. Mr. BAUCUS submitted an airline entries into rural markets. to restore the financial solvency of the amendment intended to be proposed by (b) REPORT.—Not later than 90 days after flood insurance fund, and for other pur- the date of enactment of this Act, the Attor- him to the bill S. 2284, to amend the poses; which was ordered to lie on the ney General shall submit the findings from table; as follows: National Flood Insurance Act of 1968, the study required by subsection (a) to Con- to restore the financial solvency of the gress. At the appropriate place, insert the fol- flood insuance fund, and for other pur- lowing: poses; which was ordered to lie on the SA 4746. Mr. BAUCUS submitted an SEC. ll. AIRLINE MERGERS. table; as follows: amendment intended to be proposed by The Comptroller General of the United States shall conduct a study of, and submit At the appropriate place, insert the fol- him to the bill S. 2284, to amend the National Flood Insurance Act of 1968, a report regarding, whether the proposed lowing: merger of Northwest Airlines and Delta Air SEC. ll. AIRLINE MERGERS. to restore the financial solvency of the flood insurance fund, and for other pur- Lines announced April 14, 2008, will harm air The Comptroller General of the United transport services in rural areas. States shall conduct a study of, and submit poses; which was ordered to lie on the a report to Congress regarding, the effect of table; as follows: f the proposed merger of Northwest Airlines At the appropriate place, insert the fol- NOTICES OF HEARINGS and Delta Air Lines announced April 14, 2008, lowing: on— SEC. lll. STUDY ON IMPACT OF PROPOSED COMMITTEE ON ENERGY AND NATURAL (1) the compensation of executives of such MERGER BETWEEN DELTA AIR RESOURCES companies; and LINES AND NORTHWEST AIRLINES Mr. BINGAMAN. Mr. President, I (2) the liabilities of the employee pension ON AIR TRANSPORTATION MARKET would like to announce for the infor- IN EUROPE. benefit plans of such companies relating to mation of the Senate and the public employees that are not executive-level em- The Secretary of Transportation shall con- ployees. duct a study on the proposed merger between that an oversight hearing has been Delta Air Lines and Northwest Airlines— scheduled. The hearing will be held on SA 4744. Mr. BAUCUS submitted an (1) to estimate, if such merger were com- Thursday, June 5, 2008, at 9:30 a.m., in amendment intended to be proposed by pleted, what share of the air transportation room SD–366 of the Dirksen Senate Of- him to the bill S. 2284, to amend the market in Europe such merged entity would fice Building. National Flood Insurance Act of 1968, have, taking into consideration the Open The purpose of the hearing is to re- Skies Initiative; and to restore the financial solvency of the (2) to determine whether permitting such ceive testimony regarding off-highway flood insurance fund, and for other pur- merger would violate any trade agreement vehicle management on public lands. poses; which was ordered to lie on the with respect to which the United States is a Because of the limited time available table; as follows: party. for the hearing, witnesses may testify

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3984 CONGRESSIONAL RECORD — SENATE May 8, 2008 by invitation only. However, those The PRESIDING OFFICER. Without lost their lives while serving as law enforce- wishing to submit written testimony objection, it is so ordered. ment officers. for the hearing record should send it to COMMITTEE ON HOMELAND SECURITY AND There being no objection, the Senate the Committee on Energy and Natural GOVERNMENTAL AFFAIRS proceeded to consider the resolution. Resources, United States Senate, Mr. DODD. Mr. President, I ask unan- Mr. LEAHY. Mr. President, today the Washington, DC 20510–6150, or by e-mail imous consent that the Committee on Senate Judiciary Committee unani- to [email protected] Homeland Security and Governmental mously reported S. Res. 537 to the Sen- .gov. Affairs be authorized to meet during ate floor. In recognition of those offi- For further information, please con- the session of the Senate on Thursday, cers who lost their lives in 2007, the full tact Rachel Pasternack at (202) 224–0883 May 8, 2008, to conduct a hearing. Senate has now passed this resolution. or Scott Miller at 202–224–5488. The PRESIDING OFFICER. Without I thank Senators SPECTER, KENNEDY, COMMITTEE ON INDIAN AFFAIRS objection, it is so ordered. DURBIN, KOHL, FEINSTEIN, SCHUMER, HATCH, WHITEHOUSE, BIDEN, CARDIN, Mr. DORGAN. Mr. President, I would COMMITTEE ON THE JUDICIARY and BAUCUS for joining me in spon- like to announce that the Committee Mr. DODD. Mr. President, I ask unan- soring this resolution. And I thank the onIndian Affairs will meet on Tuesday, imous consent that the Senate Com- full Senate for showing its strong sup- May 13, at 2:30 p.m. in room 562 of the mittee on the Judiciary be authorized port and appreciation of America’s law Dirksen Senate Office Building to con- to meet during the session of the Sen- enforcement officers by unanimously duct an oversight hearing on ‘‘the suc- ate, to conduct an executive business passing this resolution. It is something cesses and shortfalls of Title IV of the meeting on Thursday, May 8, 2008, at 10 in which we can all take pride. Indian Self-Determination and Edu- a.m. in room SD–226 of the Dirksen Last year, in 2007, 181 law enforce- cation Assistance Act: Twenty Years of Senate Office Building. ment officers died while serving in the Self-Governance’’. The PRESIDING OFFICER. Without line of duty. That is a regrettable and Those wishing additional information objection, it is so ordered. may contact the Indian significant increase from just 1 year SELECT COMMITTEE ON INTELLIGENCE AffairsCommittee at 224–2251. earlier. Tragically, it is the most line- Mr. DODD. Mr. President, I ask unan- f of-duty deaths since 2001 and the losses imous consent that the Select Com- from September 11 of that year. The AUTHORITY FOR COMMITTEES TO mittee on Intelligence be authorized to magnitude of this loss should remove MEET meet during the session of the Senate any doubts in Congress that it is nec- COMMITTEE ON COMMERCE, SCIENCE, AND on May 8, 2008, at 2:30 p.m. to hold a essary to give these men and women TRANSPORTATION closed hearing on intelligence matters. everything they need to stay safe, and Mr. DODD. Mr. President, I ask unan- The PRESIDING OFFICER. Without to do their jobs as effectively as they imous consent that the Committee on objection, it is so ordered. can. Commerce, Science, and Transpor- SUBCOMMITTEE ON OVERSIGHT OF GOVERNMENT Currently, more than 900,000 men and tation be authorized to meet during MANAGEMENT, THE FEDERAL WORKFORCE AND women who guard our communities do the session of the Senate on Thursday, THE DISTRICT OF COLUMBIA so at great risk. Since the first re- May 8, 2008, at 2:30 p.m., in room 253 of Mr. DODD. Mr. President, I ask unan- corded police death in 1792, there have the Russell Senate Office Building. imous consent that the Committee on been more than 18,200 law enforcement The PRESIDING OFFICER. Without Homeland Security and Governmental officers who have made the ultimate objection, it is so ordered. Affairs Subcommittee on Oversight of sacrifice. There is lots of talk about COMMITTEE ON ENVIRONMENT AND PUBLIC Government Management, the Federal the war on crime. Our law enforcement WORKS Workforce, and the District of Colum- officers are all too often the casualties Mr. DODD. Mr. President, I ask unan- bia be authorized to meet during the in that effort, and the officers who lost imous consent that the Committee on session of the Senate on Thursday, their lives in 2007 are a stark reminder Environment and Public Works be au- May 8, 2008, at 10 a.m. to conduct a that we must not let up in our support thorized to meet during the session of hearing entitled, ‘‘From Candidates to of those who work day-in and day-out the Senate on Thursday, May 8, 2008 at Change Makers: Recruiting and Hiring in the service of their communities and 10 a.m. in room 406 of the Dirksen Sen- the Next Generation of Federal Em- fellow citizens. ate Office Building to hold a hearing ployees.’’ I also take this opportunity to recog- entitled, ‘‘Goods Movement on our Na- THE PRESIDING OFFICER. Without nize that the names of 358 fallen offi- tion’s Highways.’’ objection, it is so ordered. cers will be added to the National Law The PRESIDING OFFICER. Without f Enforcement Officers Memorial on May objection, it is so ordered. 13 during a candlelight vigil that will PRIVILEGES OF THE FLOOR COMMITTEE ON FINANCE be held in their honor. These are offi- Mr. DODD. Mr. President, I ask unan- Mr. CRAIG. Madam President, I ask cers from the past and present whose imous consent that the Committee on unanimous consent that Colin Jones, a memory will be preserved at the me- Finance be authorized to meet during congressional fellow in my office from morial, ensuring that their bravery and the session of the Senate on Thursday, the Idaho National Laboratory, have sacrifice will not be forgotten. May 8, 2008, at 10 a.m., in 215 Dirksen floor privileges during the duration of National Peace Officers Memorial Senate Office Building, to conduct a my comments. Day provides the people of the United hearing entitled ‘‘More Work, Less Re- The PRESIDING OFFICER. Without States, in their communities, in their sources: Social Security Field Offices objection, it is so ordered. State capitals, and in the Nation’s Cap- Struggle to Deliver Service to the Pub- f ital, with the opportunity to honor and lic’’. reflect on the extraordinary service The PRESIDING OFFICER. Without COMMEMORATING THE DEDICA- and sacrifice given year after year by objection, it is so ordered. TION AND SACRIFICE OF LAW those members of our police forces. COMMITTEE ON HEALTH, EDUCATION, LABOR, ENFORCEMENT OFFICERS More than 20,000 peace officers are ex- AND PENSIONS Ms. KLOBUCHAR. Mr. President, I pected to gather in Washington in the Mr. DODD. Mr. President, I ask unan- ask unanimous consent that the Sen- days leading up to May 15, to join with imous consent that the Committee on ate proceed to the immediate consider- the families of their fallen comrades. It Health, Education, Labor, and Pen- ation of Calendar No. 729, S. Res. 537. is right that the Senate show its re- sions be authorized to meet, during the The PRESIDING OFFICER. The spect on this occasion, and I thank all session of the Senate, to conduct a clerk will report. Senators for joining me in honoring hearing entitled ‘‘Cancer: Challenges The assistant legislative clerk read their service and their memory by ap- and Opportunities in the 21st Century’’ as follows: proving this bipartisan resolution. on Thursday, May 8, 2008. The hearing A resolution (S. Res. 537) commemorating Ms. KLOBUCHAR. Mr. President, I will commence at 9 a.m. in room 216 of and acknowledging the dedication and sac- ask unanimous consent that the reso- the Hart Senate Office Building. rifice made by the men and women who have lution be agreed to, the preamble be

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — SENATE S3985 agreed to, the motions to reconsider be ingly important as these institutions S. RES. 556 laid upon the table, with no inter- have become one of the fastest-growing Whereas charter schools deliver high-qual- vening action or debate, and that any innovative forces in education policy. ity education and challenge all students to statements relating to the resolution In the past 4 years, 1,600 new charter reach their potential; be printed in the RECORD. schools opened and 500,000 additional Whereas charter schools provide thousands The PRESIDING OFFICER. Without public school students chose to enroll of families with diverse and innovative edu- objection, it is so ordered. in charter schools. In the fall of 2007, cational options for their children; The resolution (S. Res. 537) was 350 new public charter schools opened Whereas charter schools are public schools agreed to. and an additional 115,000 public school authorized by a designated public entity that are responding to the needs of our commu- The preamble was agreed to. students enrolled in these schools. Na- nities, families, and students and promoting The resolution, with its preamble, tionwide in 40 States and Washington, the principles of quality, choice, and innova- reads as follows: DC, over 4,300 public charter schools tion; S. RES. 537 enroll more than 1.2 million public Whereas, in exchange for the flexibility Whereas the well-being of all citizens of school students. and autonomy given to charter schools, they the United States is preserved and enhanced As many of you know, I have been a are held accountable by their sponsors for as a direct result of the vigilance and dedica- longtime advocate of charter schools, improving student achievement and for their tion of law enforcement personnel; which not only help to better educate financial and other operations; Whereas more than 900,000 men and students, but can also help to build Whereas 40 States and the District of Co- women, at great risk to their personal safe- stronger, more prosperous cities. As in- lumbia have passed laws authorizing charter ty, presently serve their fellow citizens as cubators of innovation in education, schools; guardians of the peace; public charter schools are an indispen- Whereas more than 4,300 charter schools Whereas peace officers are on the front sable component of our Nation’s edu- are now operating in 40 States and the Dis- lines in protecting the schools and school- trict of Columbia, serving more than 1,200,000 children of the United States; cational landscape. Back home in New Orleans, in the students; Whereas 181 peace officers across the Whereas, over the last 14 years, Congress United States were killed in the line of duty aftermath of the catastrophic devasta- has provided over $2,237,256,000 in support to during 2007, tragically the highest yearly tion from Hurricanes Katrina and Rita the charter school movement through facili- total since 2001; came an opportunity to recreate a pub- ties financing assistance and grants for plan- Whereas Congress should strongly support lic school system through bold innova- initiatives to reduce violent crime and to in- ning, startup, implementation, and dissemi- tion and community involvement. The nation; crease the factors that contribute to the educational entrepreneurship of public safety of law enforcement officers, includ- Whereas many charter schools improve ing— charter schools has been integral to their students’ achievement and stimulate (1) better equipment and increased use the city’s recovery. They are inspiring improvement in traditional public schools; of bullet-resistant vests; positive changes throughout the sys- Whereas charter schools must meet the (2) improved training; and tem, as other schools work to cultivate student achievement accountability require- (3) advanced emergency medical care; the same benefits. Our hope is that all ments under the Elementary and Secondary Whereas, every 2 days on average, 1 out of public schools in New Orleans will Education Act of 1965 in the same manner as every 16 peace officers is assaulted, 1 out of enjoy the same entrepreneurship, inde- traditional public schools, and often set every 56 peace officers is injured, and 1 out of pendence, and community involvement higher and additional individual goals to en- every 5,500 peace officers is killed in the line that the public charter schools have sure that they are of high quality and truly of duty somewhere in the United States; and accountable to the public; Whereas, on May 15, 2008, more than 20,000 fostered. Public charter schools were the first Whereas charter schools give parents new peace officers are expected to gather in freedom to choose their public schools, rou- Washington, District of Columbia, to join schools to open after the storm and tinely measure parental satisfaction levels, with the families of their recently fallen they have since thrived. Today more and must prove their ongoing success to par- comrades to honor those comrades and all than 57 percent of the city’s public ents, policymakers, and their communities; others who went before them: Now, there- school students attend public charter Whereas over 50 percent of charter schools fore, be it schools, and more than half of our pub- report having a waiting list, and the total Resolved, That the Senate— lic schools are independently char- number of students on all such waiting lists (1) recognizes May 15, 2008, as ‘‘Peace Of- tered, the highest percentage in the is enough to fill over 1,100 average-sized ficers Memorial Day’’, in honor of the Fed- charter schools; eral, State, and local law enforcement offi- country. Moreover, public charter schools are Whereas charter schools nationwide serve cers that have been killed or disabled in the a higher percentage of low-income and mi- line of duty; and gaining momentum and support around nority students than the traditional public (2) calls on the people of the United the Nation. The recently released 2008 school system; States to observe that day with appropriate Public Charter School Dashboard in- Whereas charter schools have enjoyed ceremonies, appreciation, and respect. cluded a national opinion poll that broad bipartisan support from the President, f found that more than three out of four Congress, State Governors and legislatures, voters favor giving parents more op- CONGRATULATING CHARTER educators, and parents across the United tions when choosing a public school for SCHOOLS FOR THEIR ONGOING States; and their children. CONTRIBUTIONS TO EDUCATION Whereas the 9th annual National Charter As we celebrate National Charter Schools Week, to be held May 5 through May Ms. KLOBUCHAR. Mr. President, I Schools Week with this resolution, it is 9, 2008, is an event sponsored by charter ask unanimous consent that the Sen- my sincere hope that Congress will schools and grassroots charter school organi- ate proceed to the consideration of S. commit to supporting the growth of zations across the United States to recognize Res. 556, which was submitted earlier charter schools as critical tools for the significant impacts, achievements, and today by Senator LANDRIEU. closing the achievement gap. innovations of charter schools: Now, there- The PRESIDING OFFICER. The Ms. KLOBUCHAR. Mr. President, I fore, be it clerk will report. ask unanimous consent that the reso- Resolved, That the Senate— The assistant legislative clerk read lution be agreed to, the preamble be (1) acknowledges and commends charter as follows: agreed to, the motions to reconsider be schools and their students, parents, teachers, A resolution (S. Res. 556) congratulating laid upon the table, with no inter- and administrators across the United States charter schools and their students, parents, vening action or debate, and that any for their ongoing contributions to education, especially their impressive results closing teachers, and administrators across the statements relating to the resolution United States for their ongoing contribu- America’s persistent achievement gap, and be printed in the RECORD. tions to education, and for other purposes. improving and strengthening our public The PRESIDING OFFICER. Without school system. There being no objection, the Senate objection, it is so ordered. (2) supports the ideas and goals of the 9th proceeded to consider the resolution. The resolution (S. Res. 556) was annual National Charter Schools Week; and Ms. LANDRIEU. Mr. President, I am agreed to. (3) encourages the people of the United pleased today to rise in honor of Na- The preamble was agreed to. States to conduct appropriate programs, tional Charter School week. The role of The resolution, with its preamble, ceremonies, and activities to demonstrate charter schools has become increas- reads as follows: support for charter schools during this week

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE S3986 CONGRESSIONAL RECORD — SENATE May 8, 2008 long celebration in communities throughout Senate completes its business today, it THE JUDICIARY the United States. stand adjourned until 2 p.m. Monday, GLEN E. CONRAD, OF VIRGINIA, TO BE UNITED STATES May 12; that following the prayer and CIRCUIT JUDGE FOR THE FOURTH CIRCUIT, VICE H. f EMORY WIDENER, JR., RETIRED. the pledge, the Journal of proceedings EXECUTIVE SESSION ELECTION ASSISTANCE COMMISSION be approved to date, the morning hour DONETTA DAVIDSON, OF COLORADO, TO BE A MEMBER be deemed expired, the time for the two OF THE ELECTION ASSISTANCE COMMISSION FOR A NOMINATION DISCHARGED leaders be reserved for their use later TERM EXPIRING DECEMBER 12, 2011. (REAPPOINTMENT) in the day, and there then be a period ROSEMARY E. RODRIGUEZ, OF COLORADO, TO BE A Ms. KLOBUCHAR. Mr. President, I MEMBER OF THE ELECTION ASSISTANCE COMMISSION for the transaction of morning busi- FOR A TERM EXPIRING DECEMBER 12, 2011. (REAPPOINT- ask unanimous consent that the Sen- ness, with Senators permitted to speak MENT) ate proceed to executive session and for up to 10 minutes each. IN THE ARMY that the Foreign Relations Committee The PRESIDING OFFICER. Without THE FOLLOWING NAMED INDIVIDUALS FOR REGULAR then be discharged of the nomination APPOINTMENT TO THE GRADE INDICATED IN THE objection, it is so ordered. UNITED STATES ARMY MEDICAL CORPS UNDER TITLE 10, of William J. Burns to be an Under Sec- U.S.C., SECTIONS 531 AND 3064: retary of State and that the Senate f To be major then proceed to the nomination; that PROGRAM BRIAN M. BOLDT the nomination be confirmed; that the STEVEN H. CRAIG motion to reconsider be laid upon the Ms. KLOBUCHAR. Mr. President, as LYNDAL R. EMERSON MASSIMO D. FEDERICO table; that no further motions be in under a previous order, the time until JOSEPH S. JONES order; that the President be imme- 5:30 p.m. Monday will be equally di- LEAH K. KERNAN CAROLINE K. MANS diately notified of the Senate’s action; vided and controlled between the two JOSHUA D. MITCHELL and that the Senate then return to leg- leaders or their designees. As pre- BENJAMIN N. PALMER ERIN S. SEEFELDT islative session. viously announced, there will be no CHRISTOPHER L. TRACY The PRESIDING OFFICER. Without rollcall votes Monday. Senators should f objection, it is so ordered. expect a series of votes to begin as The nomination considered and con- early as 11 a.m. Tuesday. DISCHARGED NOMINATION firmed is as follows: f The Senate Committee on Foreign DEPARTMENT OF STATE Relations was discharged from further William J. Burns, of the District of Colum- ADJOURNMENT UNTIL MONDAY, consideration of the following nomina- bia, a Career Member of the Senior Foreign MAY 12, 2008, AT 2 P.M. tion and the nomination was con- Service, Class of Career Minister, to be an Ms. KLOBUCHAR. Mr. President, if firmed: Under Secretary of State (Political Affairs). there is no further business to come be- WILLIAM J. BURNS, OF THE DISTRICT OF COLUMBIA, A f fore the Senate, I ask unanimous con- CAREER MEMBER OF THE SENIOR FOREIGN SERVICE, CLASS OF CAREER MINISTER, TO BE AN UNDER SEC- LEGISLATIVE SESSION sent that it stand adjourned under the RETARY OF STATE (POLITICAL AFFAIRS). previous order. The PRESIDING OFFICER. Under f There being no objection, the Senate, the previous order, the Senate will now at 5:42 p.m., adjourned until Monday, CONFIRMATION return to legislative session. May 12, 2008, at 2 p.m. Executive nomination confirmed by f f the Senate Thursday, May 8, 2008: ORDERS FOR MONDAY, MAY 12, DEPARTMENT OF STATE 2008 NOMINATIONS WILLIAM J. BURNS, OF THE DISTRICT OF COLUMBIA, A Ms. KLOBUCHAR. Mr. President, I Executive nominations received by CAREER MEMBER OF THE SENIOR FOREIGN SERVICE, CLASS OF CAREER MINISTER, TO BE AN UNDER SEC- ask unanimous consent that when the the Senate: RETARY OF STATE (POLITICAL AFFAIRS).

VerDate Aug 31 2005 06:38 Sep 14, 2008 Jkt 059060 PO 00000 Frm 00052 Fmt 4624 Sfmt 9801 E:\RECORD08\RECFILES\S08MY8.REC S08MY8 mmaher on PROD1PC76 with CONG-REC-ONLINE May 8, 2008 CONGRESSIONAL RECORD — Extensions of Remarks E855 EXTENSIONS OF REMARKS

HONORING VIETNAM HUMAN flags flown over Federal Government buildings ference in our community, including maintain- RIGHTS DAY AND COMMENDING and on federal property should be made in the ing the beautiful War Memorial Statue located THE UNITED STATES COMMIS- United States. at Second Avenue and Fayette Street in SION ON INTERNATIONAL RELI- The U.S. Census bureau estimates that Conshohocken, PA. The VFW proudly notes GIOUS FREEDOM FOR AGAIN $5.3 million worth of American flags were im- that its members and its auxiliary contribute RECOMMENDING THAT VIETNAM ported from other countries in 2006, mostly more than 13 million hours of volunteerism in BE DESIGNATED A COUNTRY OF from China. Even though U.S. law requires our area each year. PARTICULAR CONCERN IN THEIR every flag be labeled with its ‘‘country of ori- Madam Speaker, I ask that my colleagues RECENT ANNUAL REPORT gin,’’ the figure of foreign-made American flags join me today in praising the honorable work, has steadily grown over the past few years. dedication and service of the men and women HON. ZOE LOFGREN This is an absolute shame! in VFW Post 1074. They continue to improve OF CALIFORNIA The American flag is much more than our our local communities through their volunteer national symbol. It embodies our courage, lib- efforts, and show why members of the United IN THE HOUSE OF REPRESENTATIVES erty, and justice. The flag reminds us each States armed services are not only the best Thursday, May 8, 2008 and every day of the blood that was shed so on the battlefield, but also when they return Ms. ZOE LOFGREN of California. Madam that we may enjoy our freedoms. So as we home. Speaker, I rise in honor of Vietnam Human proudly fly the Stars and Stripes, we must be f Rights Day and to commend the United States sure that they are homespun in the United Commission on International Religious Free- States! TRIBUTE TO CARL MONTANTE, dom for again recommending that Vietnam be So as we approach the few months where THE CANISIUS COLLEGE 2008 DIS- designated a Country of Particular Concern we celebrate Memorial Day, Flag Day, and TINGUISHED CITIZEN AWARD RE- (CPC) in their recent annual report. Independence Day, I invite my colleagues and CIPIENT The State Department removed this des- fellow patriots to join with me in honoring our ignation in November 2006, and since then, American flag every day! Please join me in HON. BRIAN HIGGINS human rights conditions in Vietnam have supporting H. Res. 1182 OF NEW YORK steadily deteriorated. According to the Com- f IN THE HOUSE OF REPRESENTATIVES mission, ‘‘removing the CPC designation sus- Thursday, May 8, 2008 pended the diplomatic framework that had led HONORING THE 75TH ANNIVER- to a productive bilateral engagement on reli- SARY OF VETERANS OF FOR- Mr. HIGGINS. Madam Speaker, I rise today gious freedom and other human rights con- EIGN WARS POST 1074 to congratulate Carl Montante on receiving the cerns and therefore removed the potential in- Canisius College 2008 Distinguished Citizen centives and leverage needed to urge the Vi- HON. JIM GERLACH Award. Carl will be honored at the Canisius etnamese government to continue to improve OF PENNSYLVANIA College Board of Regents Scholarship Ball on its human rights record.’’ IN THE HOUSE OF REPRESENTATIVES Saturday, May 10, 2008. Carl is a brilliant ex- ample of commitment and devotion to one’s Since the removal of CPC status and Viet- Thursday, May 8, 2008 nam’s subsequent accession to the World community and fellowman. Trade Organization, the Vietnamese Govern- Mr. GERLACH. Madam Speaker, I rise A devoted Western New York native, Carl ment has continued to detain and imprison today to pay tribute and offer congratulations and his four siblings were born and raised in those whose only crimes were speaking out to Veterans of Foreign Wars Post 1074, lo- Buffalo, NY where he continues to give back against the government or exercising their cated in Conshohocken, Pennsylvania for to his community. He attended Canisius Col- freedom of religion. In addition to violating Arti- celebrating their 75th anniversary this year. lege and, in 1967, he earned his law degree cle 69 of the Constitution of Vietnam, which They will be acknowledging this great mile- from the University of Buffalo Law School. guarantees the ‘‘freedom of opinion and stone on May 10, 2008 at a banquet to be After practicing law in Buffalo, Carl founded speech, freedom of the press, the right to be held at the Spring Mill Firehouse. The Post the Uniland Development Company in 1974. informed and the right to assemble, form as- has a proud tradition of public service and vol- As President and Managing Director of sociations and hold demonstrations in accord- unteerism and represents all the great works Uniland, he oversees the company’s oper- ance with the provisions of the law,’’ these de- that our Nation’s VFWs perform each year. ations and property developments in Buffalo- tentions are in violation of the Universal Dec- I am sure each of us in the House of Rep- Rochester corridor. laration of Human Rights and the International resentatives has had the privilege to meet with Carl is involved in several organizations in Covenant on Civil and Political Rights. constituents who are members of local VFWs, his community including the Holy Angels The Commission has recommended CPC or perhaps fortunate to visit a local Post. The Academy, The BISON Scholarship Fund, and status for Vietnam every year since 2001. It is VFW traces its roots back to 1899 when vet- the Foundation of the Diocese of Buffalo. He time for the State Department to heed this ad- erans of the Spanish-American and the Phil- is former Chairman of the Buffalo Phil- vice and redesignate Vietnam as a Country of ippine Insurrection founded local organizations harmonic Orchestra Annual Fund and National Particular Concern. to secure rights and benefits for their service. Multiple Sclerosis Society, and serves on the f Their work soon shifted to not only helping the Boards of the Buffalo Niagara Enterprise, the brave men and women who served their coun- Buffalo Niagara Partnership, and Catholic INTRODUCTION OF THE AMERICAN try, but local neighbors and communities who Health System. FLAGS SHOULD BE MADE IN THE also needed their help. Perhaps most notable is Carl’s service and USA RESOLUTION As their inspiring mission states: ‘‘Honor the contribution to his alma mater, Canisius Col- dead by helping the living.’’ VFWs support lege. Carl has served in numerous leadership HON. BOB FILNER countless activities, through veterans’ service, capacities including as chair of the Canisius OF CALIFORNIA community service, national security and a College Board of Trustees from 1997–2001. IN THE HOUSE OF REPRESENTATIVES strong national defense. Carl and his wife, Carol Ann, recently com- Today, the Veterans of Foreign Wars of the mitted $5.1 million to the college for the devel- Thursday, May 8, 2008 United States, with its Auxiliaries, includes 2.3 opment of an interdisciplinary science center. Mr. FILNER. Madam Speaker and col- million members in approximately 8,400 Posts The Montante family’s donation is the largest leagues, I rise today to speak about a resolu- worldwide. in the Canisius’ history. I applaud his desire to tion that I have just introduced that expresses Post 1074 is led by Post Commander An- give back to his community and believe his the sense of the Congress that all American drew Duncan, and continues to make a dif- contributions to education and science will

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

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00001 Fmt 0626 Sfmt 9920 E:\CR\FM\K08MY8.001 E08MYPT1 wwoods2 on PRODPC68 with REMARKS E856 CONGRESSIONAL RECORD — Extensions of Remarks May 8, 2008 have a great impact on the future of Western that his injury would have been treated in TRIBUTE TO THE DON BOSCO New York. time. WRESTLING TEAM Madam Speaker, I am proud to congratulate The quick thinking and calm demeanor dis- Carl J. Montante for this great honor and ap- played by these two athletic trainers serves as HON. BRUCE L. BRALEY plaud him for his service and dedication to the a wonderful example to all those who care for OF IOWA Western New York community. I wish Carl and IN THE HOUSE OF REPRESENTATIVES his family the best in the years to come. others. I commend Sue Wilson and Brian Jaquette for their outstanding professional Thursday, May 8, 2008 f work and dedication to the young athletes they Mr. BRALEY of Iowa. Madam Speaker, I RECOGNIZING THE MULTIPLE serve. I am honored to represent each of them rise today to recognize the outstanding results SCLEROSIS SOCIETY AND THEIR in the United States Congress, and I wish achieved by the Don Bosco wrestling team at NOBLE CAUSE them the best in their careers. the Iowa State Wrestling Tournament in Des Moines this past winter. HON. MICHAEL C. BURGESS f Don Bosco rolled to its third straight Class OF TEXAS 1A title with a stunning 81 point win over New IN THE HOUSE OF REPRESENTATIVES PAYING TRIBUTE TO ROBERT AND London/WMU. This win set a new class record JUDY ALVAREZ with 175.5 points. Also celebrating his third Thursday, May 8, 2008 straight win was Bart Reiter, a junior, who be- Mr. BURGESS. Madam Speaker, every came a three-time state champion and joins hour in the United States someone new is di- HON. JON C. PORTER only 13 other three-time winners this decade. agnosed with Multiple Sclerosis. It is a lasting I congratulate Don Bosco for winning the OF NEVADA disease which attacks the central nervous sys- Iowa Class 1A state championship. The last tem, and can be extremely disabling. This IN THE HOUSE OF REPRESENTATIVES team to win three in a row was Lisbon from week the National Multiple Sclerosis Society is 1988–1990. in town to promote awareness of people living Thursday, May 8, 2008 Madam Speaker, I am extremely proud of with MS—approximately 400,000 Americans Mr. PORTER. Madam Speaker, it is my dis- the accomplishments of the Don Bosco wres- tling team, both on and off the mat, and I am and 2.5 million people worldwide. tinct pleasure to rise today to honor Mr. and proud to serve them in Congress. Many Americans know a person living with Mrs. Robert and Judy Alvarez by entering their multiple sclerosis, a mother or father, a son or f names in the CONGRESSIONAL RECORD, the of- daughter, another family member or friend, or ficial record of the proceedings and debates of HONOR POLICE OFFICERS maybe even a colleague. For me, it was a member of my staff. This brave and strong the United States Congress since 1873. Today woman inspired me to get more involved in I honor Mr. and Mrs. Alvarez for being award- HON. LAMAR SMITH the battle to live in a world free of multiple ed with the Small Business Administration’s OF TEXAS sclerosis. (SBA) 2008 Home-Based Business of the IN THE HOUSE OF REPRESENTATIVES As a medical doctor prior to coming to Con- Year, sponsored by the SBA’s Nevada District Thursday, May 8, 2008 gress, I’m working to find sensible solutions Office. Mr. SMITH of Texas. In a few days, thou- for the health care challenges that Americans RJ Communications Concepts, LLC was es- sands of police officers from around the coun- face. As the co-chair of the newly formed Con- tablished by Bob and Judy Alvarez in 1995. try will travel to Washington, DC for National gressional Multiple Sclerosis Caucus, I intend The company began as a home based busi- Police Week. to bring the needs of those individuals into the ness and represents a culmination of the cou- This occasion provides Congress with the larger discussion of quality health care. ple’s combined 60-plus years of work within opportunity to honor those who have given Madam Speaker, we must work together to the telecommunications industry. Their experi- their lives to protect our families, constituents, improve access to quality health services, to ence, hard work, and dedication quickly re- and communities. break down barriers, and to make MS thera- sulted in the company expanding beyond the In my district, ‘‘The Memorial Wall’’ stands pies more affordable. I ask other Members of walls of the Alvarez’s home. in the San Antonio Police Academy’s court- the House to join me in this noble cause. We yard and lists the names of those forty-eight Today, the company covers a wide range of must always remember that behind every sta- officers who have sacrificed their lives while tistic is the face of a family member or friend. services. The distribution of electronic compo- fighting to keep San Antonio’s neighborhoods We have a shared responsibility to offer help nents and testing equipment comprises over safe and crime-free for our children. and hope. There is no better time than now to half of the company’s business. The company We can honor their legacies and the lives of begin offering it. also provides services for multiple fields, in- other police officers by bringing legislation to f cluding information technology supplies, con- the floor that will help Federal, State and local TRIBUTE TO BRIAN JAQUETTE sulting, training equipment and business provi- law enforcement officials combat crime. AND SUE WILSON sions. For example, the bill Congressman FORBES In addition to the professional accomplish- and I introduced, H.R. 3156, the ‘‘Violent HON. TOM LATHAM ments, Bob and Judy have been good com- Crime Control Act of 2007,’’ would do just that. munity partners to a variety of local non-profit Why is the Democratic leadership in Con- OF IOWA gress stalling crime legislation? IN THE HOUSE OF REPRESENTATIVES organizations in Southern Nevada. Through their company, Bob and Judy helped organiza- f Thursday, May 8, 2008 tions including the North Las Vegas Boys and KEEP STARRETT CITY Mr. LATHAM. Madam Speaker, I rise today Girls Club, the Nathan Adelson Hospice and AFFORDABLE to recognize high school athletic trainers Brian the Sunrise Children’s Foundation, among oth- Jaquette of Fort Dodge High School and Sue ers. According to Judy Alvarez, ‘‘We feel a HON. ANTHONY D. WEINER Wilson of Johnston High School, for their level of social responsibility . . . Even if you’re OF NEW YORK quick thinking in treating a football player who small you can still do something.’’ Additionally, IN THE HOUSE OF REPRESENTATIVES suffered serious internal injuries during a foot- as a former member of the U.S. Air Force, Thursday, May 8, 2008 ball game last fall. Bob and his wife, Judy has also provided as- The injured football player was tended to by sistance to Nellis Air Force Base. Mr. WEINER. Madam Speaker, I rise to dis- Jaquette and Johnston, who decided that his cuss the need for additional affordable hous- abdominal pain was serious enough to call for Madam Speaker, I am proud to honor Mr. ing across the nation. Financial planners sug- an ambulance. It turned out that the injured and Mrs. Robert and Judy Alvarez for their ac- gest that families devote 30 percent of their in- player was suffering from a ruptured gall blad- complishments as small business owners, come to paying for housing costs. But for der, which would have caused blood poisoning their contributions to the Southern Nevada many families across the country such a rule and possibly death if left untreated. Were it community, and for their recognition by the of thumb sounds more like a pipe dream. Ac- not for Jaquette and Johnson’s accurate initial SBA as the 2008 Home-Based Business of cording to the 2006 American Community Sur- examination and determination, it is unlikely the Year. vey, twenty-five percent of renters across the

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00002 Fmt 0626 Sfmt 9920 E:\CR\FM\K08MY8.021 E08MYPT1 wwoods2 on PRODPC68 with REMARKS May 8, 2008 CONGRESSIONAL RECORD — Extensions of Remarks E857 nation spend more than 50 percent of their in- Funding for our troops should be priority The alumni list of four-star chefs has the come on rent. Nationwide, there are 9 million number one. However, it is not the time nor length of a school celebrating its centennial. extremely low-income households but only 6 the place to add additional spending on top of Still for all that has been accomplished million units renting at affordable prices, leav- what our military has requested in an effort to through NCHS in a quarter century, the prom- ing a shortage of 3 million affordable housing push it through on the coattails of our bravest ise for the future is equally bright. The pro- units. and brightest. If the majority wishes to in- gram now builds on a proud tradition where In my hometown of New York City, 28 per- crease spending on other programs unrelated students and alumni never cease to exceed cent of renters are paying more than half of to the Global War on Terrorism, then they their income for rent. Keeping the Starrett City should bring those requests up under regular our highest expectations. development in Brooklyn affordable is critical. order—not hidden in an emergency troop I urge my colleagues to join me in com- Starrett City is the Nation’s largest govern- funding bill. mending Sullivan University’s National Center ment-subsidized rental housing complex. It As Chairman of the Joint Chiefs of Staff, for Hospitality Studies on the last twenty five was designed in the 1970s as a subsidized, Admiral Mike Mullen has made it clear, this years of distinction and to wish the center the middle-class co-operative under New York supplement spending bill is vital to our secu- best as it continues to satisfy our taste for ex- State’s Mitchell-Lama program. It is home to rity. Without passage of the supplemental, our cellence in the years to come. 12,000 residents in nearly 6,000 housing units. soldiers will stop getting their paychecks and Most of the residents of Starrett City live on our ability to equip our troops will be under- f annual gross incomes of about $20,000 to mined. $40,000 and the average subsidized rent is In conclusion, God bless our troops, and we CONGRATULATING NANCY $200–$400. will never forget September 11th. BRINKER, WHITE HOUSE CHIEF I, along with my colleague from New York, f OF PROTOCOL, ON HER BEING Representative EDOLPHUS TOWNS, requested that the House Financial Services Sub- IN HONOR OF 25TH ANNIVERSARY NAMED ONE OF THE 100 MOST committee on Housing and Community Oppor- OF SULLIVAN’S NATIONAL CEN- INFLUENTIAL PEOPLE IN THE tunity hold a field hearing in New York City fol- TER FOR HOSPITALITY STUDIES WORLD lowing an attempt to sell Starrett City that jeopardized the complex’s affordability. The HON. JOHN A. YARMUTH hearing was held in July 2007 and inves- OF KENTUCKY HON. RAY LaHOOD tigated the impact of affordable housing sales IN THE HOUSE OF REPRESENTATIVES OF ILLINOIS on housing costs in New York City. Thursday, May 8, 2008 Mr. TOWNS’ legislation before the House IN THE HOUSE OF REPRESENTATIVES Mr. YARMUTH. Madam Speaker, I rise in today will allow owners and the Department of Thursday, May 8, 2008 Housing and Urban Development to convert honor of the twenty-fifth anniversary of Sul- the current subsidy contracts that are in place livan University’s National Center for Hospi- Mr. LAHOOD. Madam Speaker, I rise today at Starrett City into a new, 20-year Section 8 tality Studies, in Louisville, Kentucky. to congratulate Nancy Brinker for the recogni- contract. This will ensure that a new owner Nearly four thousand students have grad- tion she has received from Time Magazine as uated from NCHS and gone on to impact the can secure the long-term financing necessary one of the 100 Most Influential People in the culinary, travel, and hospitality fields. The im- to keep Starrett City affordable and its tenants World. in their homes. pact of Sullivan’s exceptional program can be Without this legislation, Starrett City’s own- felt throughout the nation, from Las Vegas to Nancy grew up in my hometown of Peoria, ers would likely opt out of their Section 8 con- New Orleans and many lucky cities in be- Illinois, and all of us are extremely proud of tract and convert Starrett City to market-rate tween, but nowhere—I am pleased to say— her many accomplishments in diplomacy and housing, further contributing to the lack of af- has NCHS and its alumni had a greater influ- in the health care arena. fordable housing in New York City. ence than in my hometown of Louisville. As White House Chief of Protocol and pre- I thank my colleague, Mr. TOWNS and sup- On any given weekend night, there are over port his legislation. 600 Sullivan students working in our commu- viously as President Bush’s Ambassador to f nity’s hotels and restaurants. Alumni include the Republic of Hungary, Nancy has fostered many of our city’s finest chefs and res- meaningful, positive relationships for the PERSONAL EXPLANATION taurateurs, who have helped ensure that United States around the world and advanced Derby week, when our town becomes the na- a broad range of U.S. security and economic HON. RON KLEIN tion’s top tourist destination, visitors will leave interests. OF FLORIDA raving about more than just horse races. But Peorians know her best for her role as IN THE HOUSE OF REPRESENTATIVES But while I certainly recommend it, one does founder of the Susan G. Komen Race for the Thursday, May 8, 2008 not need to come to Louisville to recognize the excellence of the program. President and Cure after promising her sister, Susan, that Mr. KLEIN of Florida. Madam Speaker, I CEO A.R. Sullivan has assembled an award she would fight to end breast cancer forever. was unavoidably detained on Wednesday, winning faculty, including program director Named after Susan, who died from breast May 7, 2008. Chef Tom Hickey, a Culinary Olympics medal cancer in 1980, the foundation is now recog- Had I voted, I would have voted ‘‘yes’’ on winner who has overseen culinary operations rollcall No. 294. nized as the Nation’s leading catalyst in the for presidential inaugurations; catering depart- fight against breast cancer. It all began with a f ment chair chef Kimberly Jones, who has de- race in Dallas, followed by one in Peoria, and PASS A CLEAN AND HONEST veloped nationally renowned recipes and ca- now there are over 112 races with over a mil- SUPPLEMENTAL tered some of the world’s highest profile lion participants. Research is the key to finding events; chef John Castro, our local celebrity a cure for this disease, and with the financial HON. JOE WILSON chef who bested the competition on the TV Food Network’s Throw Down with Bobby Flay assistance of the Susan G. Komen Founda- OF SOUTH CAROLINA tion, much progress has been made. The suc- IN THE HOUSE OF REPRESENTATIVES and has been featured on the Travel Channel; and baking and pastry department chef, the cess of this foundation and its mission is Thursday, May 8, 2008 nationally ranked Derek Spendlove, who won known throughout the world. Mr. WILSON of South Carolina. Madam a gold medal in the 1988 Culinary Olympics. In the words of Cokie Roberts’ tribute in the Speaker, American men and women are on That faculty and leadership has helped Sulli- Times article, ‘‘When Nancy Brinker meets up the front lines of the Global War on Terrorism van’s Culinary Competition team win 291 med- with her sister, Susan G. Komen, on the other defeating our enemies abroad so we do not als, including Southeast Regional Pastry Chef side of the pearly gates, she will be able to have to face them here at home. Unfortu- of the Year in 2008 and Southeast Regional nately, at home, Democrats are threatening to Champions in 2001, 2004 and 2005. The say, ‘‘I did what you asked.’’ And, in the proc- push through an emergency war supplemental school was the first culinary school in America ess, she will have helped millions who suffer spending bill, without committee consideration, to be invited to cook at New York’s prestigious from this dreaded disease. that includes unrelated spending. James Beard House.

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00003 Fmt 0626 Sfmt 9920 E:\CR\FM\A08MY8.003 E08MYPT1 wwoods2 on PRODPC68 with REMARKS E858 CONGRESSIONAL RECORD — Extensions of Remarks May 8, 2008 PROVIDING FOR COMPENSATION ask why this is significant. Well, I will tell you in productive investment by companies as it TO STATES INCARCERATING UN- why. becomes easier for corporations to combine DOCUMENTED ALIENS The Blue Ribbon is the most prestigious their capital with lower priced labour over- education award in the state and it distin- seas.... Moreover businesses can use the SPEECH OF guishes schools for their excellence in leader- threat of relocating as a lever to extract con- HON. MARK UDALL ship, teaching, curriculum, student achieve- cessions.... Inevitably the cost of these concessions is borne by labour.’’ OF COLORADO ment, parent involvement and community sup- port. Madam Speaker, the economic explanation IN THE HOUSE OF REPRESENTATIVES Well, I am proud to inform you that 2 of given by Secretary Summers is not meant by Tuesday, May 6, 2008 these schools reside in the 10th Congres- him as an argument against trade, but rather Mr. UDALL of Colorado. Mr. Speaker, I am sional District. as an argument for accompanying continued a cosponsor of this important legislation, which Powell Middle School Bulldogs in Romeo expansion of trade with appropriate public poli- will help State and local governments in Colo- and Malow Junior High Mustangs in Shelby cies that deal with some of these effects, and rado by reimbursing them for the costs of Township rightfully earned this prestigious dis- recognize that while trade has overall bene- holding aliens charged with crimes. tinction. The Bulldogs and Mustangs under ficial effects for the economy, the distribution The State Criminal Alien Assistance Pro- went a rigorous examination process which of the costs and benefits are far from uniform. gram, or SCAAP, was originally created to even included on sitevisits from state edu- And the New York Times for Tuesday, May provide financial assistance to States and lo- cation officials. 6th, illustrates the economic reality that gives calities for costs they incur as a result of incar- Under the leadership of Principal Jeffrey rise to the political opposition to increased cerating criminal aliens. However, now they LaPerriere, Powell became the first school in trade and internationalization that Secretary are only reimbursed for a portion of these ex- the Rome Community School District to re- Summers notes—as the Times article of that penditures. ceive this honor. On the other hand, Malow date noted, ‘‘In inflation adjusted terms . . . H.R. 1512 amends the law to reflect the Principal Robert Hock continued Utica Com- weekly wages have slipped by 1.3 percent original intent of Congress, namely to provide munity School District’s strong Blue Ribbon since late 2006.’’ financial assistance to States and localities for tradition by becoming the 22nd school to get Madam Speaker, I strongly urge leaders in costs they incur as a result of incarcerating the award. the business community and others who aliens who are either charged with or con- I commend all the teachers, parents and would like to see further progress towards victed of a felony or two misdemeanors. students for their steadfast commitment and internationalization to read and understand The SCAAP program was created in 1994. dedication to achieve such a remarkable ac- Secretary Summers’ economic analysis, and It is administered by the Bureau of Justice As- complishment! This is a great day for all the very thoughtful public policy recommenda- sistance, BJA, part of the Justice Depart- Macomb County schools so congratulations on tions he includes that stem from this analysis. ment’s Office of Justice Programs OJP. The a job well done! And because I can think of no more important contribution to the debate about economic pol- Department of Homeland Security aids BJA in f administering the program by verifying the im- icy in America, I ask that Secretary Summers’ migration status (or lack of status) of those for LAWRENCE SUMMERS EXPLAINS very important essay be printed here. whom States seek reimbursement. WHY ‘‘A STRATEGY TO PROMOTE [From the Financial Times, May 5, 2008] Current law authorizes the appropriation of HEALTHY GLOBALISATION MUST A STRATEGY TO PROMOTE HEALTHY GLOBALISATION $950 million annually over the 2008–2011 pe- RELY ON STRENGTHING EF- riod for SCAAP. For fiscal year 2007, the au- FORTS TO REDUCE INEQUALITY (By Lawrence Summers) thorization level for the program was $850 mil- AND INSECURITY’’ Last week, in this column, I argued that making the case that trade agreements im- lion, and the Congress appropriated about prove economic welfare might no longer be $400 million. In 2007, however, States and lo- HON. BARNEY FRANK sufficient to maintain political support for calities applied to SCAAP for reimbursements OF MASSACHUSETTS economic internationalism in the U.S. and totaling over $950 million. IN THE HOUSE OF REPRESENTATIVES other countries. Instead, I suggested that op- In 2003, the Department of Justice reinter- Thursday, May 8, 2008 position to trade agreements, and economic preted the statute establishing SCAAP so that internationalism more generally, reflected a reimbursement is made only if: (1) the criminal Mr. FRANK of Massachusetts. Madam growing recognition by workers that what is alien is convicted of a felony or two mis- Speaker, it has been common for those who good for the global economy and its business champions was not necessarily good for demeanors; and (2) the arrest and conviction support increased trade without any accom- panying policies to address the impact on for- them, and that there were reasonable occurred in the same fiscal year. The result grounds for this belief. has been a drastic reduction in the amount of eign and domestic workers to dismiss argu- The most important reason for doubting reimbursements received by Colorado and ments for such policies as mere protectionism, that an increasingly successful, integrated other States. lacking any economic justification. global economy will benefit U.S. workers H.R. 1512 restores SCAAP as it was origi- In the Financial Times, Monday May 5th, (and those in other industrial countries) is nally intended by permitting States and local- one of the leading economists in the country, the weakening of the link between the suc- former Treasury Secretary Lawrence Sum- cess of a nation’s workers and the success of ities to be reimbursed for the costs of incarcer- both its trading partners and its companies. ating aliens who are either ‘‘charged with or mers, refutes this effort to dismiss our con- cerns. As former Secretary Summers says, This phenomenon was first emphasised years convicted’’ of a felony or two misdemeanors, ago by Robert Reich, the former U.S. labour regardless of the fiscal year of the incarcer- some of the ‘‘opposition to trade agreements secretary. The normal argument is that a ation and conviction. and economic internationalism more generally, more rapidly growing global economy bene- I have long supported making this overdue reflect a growing recognition by workers that fits workers and companies in an individual change, which will help many Colorado juris- what is good for the global economy and its country by expanding the market for ex- dictions, and I urge approval of this essential business champions was not necessarily good ports. This is a valid consideration. But it is measure. for them, and that there were reasonable also true that the success of other countries, and greater global integration, places more f grounds for this belief.’’ Lawrence Summers has been and is a competitive pressure on an individual econ- MACOMB COUNTY SCHOOLS EARN omy. Workers are likely disproportionately strong supporter of increased trade. But unlike to bear the brunt of this pressure. BLUE RIBBON STATUS many others who have stuck with a far less Part of the reason why U.S. workers (or sophisticated analysis, ignoring contemporary those in Europe and Japan) enjoy high wages HON. CANDICE S. MILLER reality, Secretary Summers explains why the is that they are more highly skilled than most workers in the developing world. Yet OF MICHIGAN current globalized economy means that trade they also earn higher wages because they IN THE HOUSE OF REPRESENTATIVES can have a negative impact on some workers in higher wage countries. As he notes, ‘‘in an can be more productive—their effort is com- Thursday, May 8, 2008 plemented by capital, broadly defined to in- open economy, where investments in innova- clude equipment, managerial expertise, cor- Mrs. MILLER of Michigan. Madam Speaker, tion, brands, a strong corporate culture or porate culture, infrastructure and the capac- this week the Michigan Board of Education even in certain kinds of equipment can be ity, for innovation. In a closed economy any- designated five schools across the entire State combined with labour from anywhere in the thing that promotes investment in produc- as Blue Ribbon Exemplary Schools. You might world, workers no longer have the same stake tive capital necessarily raises workers’

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00004 Fmt 0626 Sfmt 0634 E:\CR\FM\A08MY8.008 E08MYPT1 wwoods2 on PRODPC68 with REMARKS May 8, 2008 CONGRESSIONAL RECORD — Extensions of Remarks E859 wages. In a closed economy, corporations international economic policies and the in- The Internet has become the dominant have a huge stake in the quality of the na- terests of American workers is not. venue for the expression of ideas and public tional workforce and infrastructure. f The situation is very different in an open discourse. From social networking to get-out- economy where investments in innovation, EDWARD EARNEST FOSTER: the-vote drives, the Internet is now a leading brands, a strong corporate culture or even in FIERCE ADVOCATE FOR VET- tool for speech and action. Web sites like certain kinds of equipment can be combined ERANS Facebook, MySpace, LinkedIn, and Monster with labour from anywhere in the world. have changed the way people of all ages con- Workers no longer have the same stake in nect socially and professionally. Political can- productive investment by companies as it HON. JANE HARMAN didates raise more money online with each becomes easier for corporations to combine OF CALIFORNIA election cycle. Newspaper Web sites and their capital with lower priced labour over- IN THE HOUSE OF REPRESENTATIVES seas. Companies, in turn, come to have less independent blogs have revolutionized the of a stake in the quality of the workforce Thursday, May 8, 2008 ways in which news and media are dissemi- and infrastructure in their home country Ms. HARMAN. Madam Speaker, rep- nated and consumed. And the Internet has when they can produce anywhere. Moreover resenting the 36th district of California since opened up new performance venues to businesses can use the threat of relocating as 1992 has given me the opportunity to meet emerging artists and entertainers. In these and a lever to extract concessions regarding tax many veterans and learn their stories. One many other ways, the technological innovation policy, regulations and specific subsidies. In- in communication made possible by the Inter- evitably the cost of these concessions is special veteran and friend, Ed Foster, has an borne by labour. incredible story—one I would like to share with net has made it among the most powerful out- The public policy response of withdrawing my colleagues on the eve of his retirement lets for creativity and free speech. from the global economy, or reducing the from the Torrance Job Service Office. However, some of the Internet Service Pro- pace of integration, is ultimately untenable. Edward Earnest Foster enlisted in the Army viders, which control 96 percent of the resi- It would generate resentment abroad on a at age 19, and served as a medic in the Ko- dential market for high-speed Internet access, dangerous scale, hurt the economy as other rean war. As a medic, soldier and veteran, he and are either monopolies or duopolies in countries retaliated, and make us less com- petitive as companies in rival countries con- has touched the lives of countless individuals. most areas of the country, have proposed to tinue to integrate their production lines He has advanced the cause of veteran’s rights give favored treatment to some Internet con- with developing countries. As Bill Clinton throughout the South Bay, and I am not alone tent and disfavored treatment to other content. said in his first major international eco- in expressing enormous gratitude for all he Under these proposed business models, what nomic speech as president, ‘‘the United has done. treatment you get will be determined by how States must compete not retreat’’. Ed received nine medals on his tours of much you pay or, potentially, whether the The domestic component of a strategy to duty in Korea, including a Purple Heart and Internet service provider approves of the con- promote healthy globalisation must rely on tent or whether the provider has a financial in- strengthening efforts to reduce inequality the Bronze Star with a ‘‘V’’ for valor. With the and insecurity. The international component same strength of character that got him those terest at stake. Under these regimes, many of must focus on the interests of working peo- medals, he has fought on behalf of all vet- the innovations and ideas that we have en- ple in all countries, in addition to the cur- erans. joyed on the Internet may never have oc- rent emphasis on the priorities of global-cor- Locally, Ed’s contributions have been invalu- curred. We would never have had a Google porations. able. In his post at the State Employment De- search engine or YouTube videos if ‘‘pay to First, the U.S. should take the lead in pro- velopment Department’s Torrance office, he play’’ had been our national policy. To be moting global co-operation in the inter- has worked to make sure area veterans find sure, if we go in this direction, it will stifle both national tax arena. There has been a race to the bottom in the taxation of corporate in- the work and dignity they deserve. future technological innovation and free come as nations lower their rates to entice Perhaps his most notable and lasting initia- speech. business to issue more debt and invest in tive is the ‘‘Visit a Vet’’ program, which pro- Rather than attempt regulation of the indus- their jurisdictions. Closely related is the motes visits with veterans at VA hospitals to try, we believe an antitrust remedy is the most problem of tax havens that seek to lure let them know they are not forgotten and appropriate way to deal with the problem. The wealthy citizens with promises that they can thank them for their service. We should all antitrust laws exist to correct distortions of the avoid paying taxes altogether on large parts heed his call of ‘‘let us not just think of our of their fortunes. It might be inevitable that free market, where monopolies or cartels have veterans on holidays but do it all year long.’’ cornered the market, and competition is not globalisation leads to some increases in in- Ed Foster is a tireless advocate for veterans equality; it is not necessary that it also com- being allowed to work. The antitrust laws can promise the possibility of progressive tax- everywhere, and a wonderfully dedicated man. help maintain a free and open Internet. ation. He represents, to me, what it means to serve The ‘‘Internet Freedom and Nondiscrimina- Second, an increased focus of international one’s country for a lifetime. Ed retires this tion Act of 2008’’ amends the Clayton Act to economic diplomacy should be to prevent month at the young age of 76. On behalf of harmful regulatory competition. In many require that broadband service providers inter- the entire community, I say thank you, on be- connect with the facilities of other network pro- areas it is appropriate that regulations differ half of a grateful nation. between countries in response to local cir- viders on a reasonable and nondiscriminatory cumstances. But there is a reason why pro- f basis. It also requires them to operate their gressives in the early part of the 20th cen- INTRODUCTION OF THE ‘‘INTER- network in a reasonable and nondiscriminatory tury sought to have the federal government NET FREEDOM AND NON- manner so that all content, applications and take over many kinds of regulatory responsi- DISCRIMINATION ACT OF 2008’’ services are treated the same and have an bility. They were concerned that competi- equal opportunity to reach consumers. The bill tion for business across states, and their ease of being able to move, would lead to a race expressly preserves the ability of broadband HON. JOHN CONYERS, JR. service providers to manage their network, so to the bottom. Financial regulation is only OF MICHIGAN one example of where the mantra of needing long as it is done in a nondiscriminatory man- IN THE HOUSE OF REPRESENTATIVES to be ‘‘internationally competitive’’ has been ner, and the bill allows the operators to give invoked too often as a reason to cut back on Thursday, May 8, 2008 priority to emergency communications and regulation. There has not been enough seri- Mr. CONYERS. Madam Speaker, today I take reasonable and nondiscriminatory meas- ous consideration of the alternative—global am introducing the ‘‘Internet Freedom and ures to prevent violations of the law. co-operation to raise standards. While labour standards arguments have at times been in- Nondiscrimination Act of 2008,’’ legislation that Americans have come to expect the Internet voked as a cover for protectionism, and this establishes an antitrust remedy for anti- to be open to everyone and everything. The must be avoided, it is entirely appropriate competitive and discriminatory practices by Internet was designed without gatekeepers for that U.S. policymakers seek to ensure that broadband service providers. I am joined by new content and services and without central- greater global integration does not become Representative LOFGREN. ized control. If we allow companies with mo- an excuse for eroding labour rights. Over the last ten years, the Internet has nopoly or duopoly power to control how the To benefit the interests of U.S. citizens gone from its infancy through a period of ex- Internet operates, start-up companies might and command broadpolitical support, US international economic policy will need to ponential growth. Today, it is estimated that never be able to offer their products, network focus on the issues in which the largest num- over 1.3 billion people use the Internet—that is providers could have the power to choose ber of Americans have the greatest stake. A almost 20 percent of the world’s population. In what content is available, and the artists and decoupling of the interests of businesses and the last 7 years alone, the worldwide use of thinkers of our time could find their speech nations may be inevitable; a decoupling of the Internet has jumped 265 percent. censored.

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00005 Fmt 0626 Sfmt 9920 E:\CR\FM\A08MY8.011 E08MYPT1 wwoods2 on PRODPC68 with REMARKS E860 CONGRESSIONAL RECORD — Extensions of Remarks May 8, 2008 CONGRATULATING NURSE TONI goes above and beyond what is asked of us as it holds its fifth annual event in my district HADDOX as citizens of this country, and her willingness in Troy, Michigan, on May 10, 2008. to help a stranger in need illustrates the com- Homes for Our Troops is a nonprofit organi- HON. MICHAEL C. BURGESS passion of Iowans; willing to do whatever it zation that provides specially adapted homes OF TEXAS takes for the safety of our fellow citizens. For for our severely injured servicemembers. The IN THE HOUSE OF REPRESENTATIVES this I know my colleagues in the United States organization is able to provide assistance at no cost to the veterans that they serve Thursday, May 8, 2008 Congress join me in offering Tianna our con- gratulations and thanks. I am extremely hon- through a growing network of monetary con- Mr. BURGESS. Madam Speaker, I rise ored to represent Tianna in Congress, and I tributions, donations from building contractors, today to honor Toni Haddox, of Denton, wish her all the best in her future endeavors. suppliers, corporate supporters, and local vol- Texas. Ms. Haddox has been recognized as f unteers. one of the Great 100 Nurses of 2008 by the John Gonsalves started Homes for Our Dallas-Fort Worth Nurse Executives and Dis- PAYING TRIBUTE TO JACKIE Troops in 2004 after watching a news report tricts Three and Four of the Texas Nurses As- DELANEY of a severely injured servicemember who had sociation. returned from Iraq. He thought to himself, Ms. Haddox is a nurse at the Denton Re- HON. JON C. PORTER ‘‘What happens to our severely injured vet- gional Medical Center, which serves Denton, OF NEVADA erans once they return?’’ Mr. Gonsalves Wise, Cooke and Montague Counties. She is searched for an organization where he could IN THE HOUSE OF REPRESENTATIVES a perfect example of Denton Regional’s mis- donate his building expertise for a few weeks, sion in the community: she is a caring, com- Thursday, May 8, 2008 but when he found out that none existed, he passionate person who exhibits passion, Mr. PORTER. Madam Speaker, it is my dis- quit his contractor job and started Homes for knowledge, and commitment to her patients tinct pleasure to rise today to honor Jackie Our Troops. Since its founding, Homes for Our and colleagues on a daily basis. DeLaney by entering her name in the CON- Troops has provided 25 veterans and their Each year this recognition is bestowed on GRESSIONAL RECORD, the official record of the families with homes suited to meet the phys- nurses who embody excellence in the science proceedings and debates of the United States ical challenges they face after returning with and art of nursing. The chosen honorees be- Congress since 1873. Today I pay tribute to life-altering injuries. long to an array of professional organizations Jackie DeLaney, President and CEO of Sun The continued efforts of Homes for Our and work in a wide variety of clinical special- West Bank, for her small-business achieve- Troops has gained national recognition. In ties. This is the 18th consecutive year that the ments throughout the Las Vegas community. fact, the American Institute of Philanthropy has Texas Nurses Association, Districts Three and As the only female bank president and CEO named them as one of their Top-Rated Char- Four, and the Dallas-Fort Worth Nurse Execu- in Nevada, Jackie DeLaney is credited with ities of 2007. They have the honor of being tives have recognized area nurses for their establishing the Sun West Bank in 1998 with one of only five veterans charities included in compassion and dedication. The recipients will one of the largest capital investments of any the top-rated category. This honor not only be honored at a gala event on Monday, May bank in the state. She established a board of displays the breadth of their efforts, but also 12, 2008. directors and filed and received approval on the speed and efficiency of their delivery. Madam Speaker, I salute Homes for Our Madam Speaker, it is with great pride that I all necessary regulatory applications. Sun Troops for their tireless efforts on behalf of our stand here today to recognize Toni Haddox. It West Bank is the only local bank owned by courageous men and women in the armed is an outstanding honor to represent both Ms. Nevada business professionals. The full-serv- services. Theirs is a shining example of the al- Haddox and her fellow nurses in the 26th Dis- ice bank offers a full array of business prod- truism that embodies the American spirit. trict of Texas. Her constant vigilance and skill ucts and services including SBA and small has made North Texas a better place, and her business commercial loans as well as expan- f allegiance to her craft is nothing less than re- sion financing. Sun West also works with the HONORING THE LOUISIANA markable. I sincerely thank her for her service Nevada Small Business Development Center HONORAIR VETERANS to our community. and other agencies to help entrepreneurs and f prospective business owners examine how to HON. CHARLES W. BOUSTANY, JR. TRIBUTE TO TIANNA SULLIVAN assess their business models and understand OF LOUISIANA the market. IN THE HOUSE OF REPRESENTATIVES HON. TOM LATHAM Jackie’s role at Sun West has shown a Thursday, May 8, 2008 great level of devotion to the community and OF IOWA has been recognized by a number of commu- Mr. BOUSTANY. Madam Speaker, I rise IN THE HOUSE OF REPRESENTATIVES nity organizations for their charitable work. today to recognize and honor a very special Thursday, May 8, 2008 Sun West has also achieved national recogni- group from South Louisiana. Mr. LATHAM. Madam Speaker, I rise today tion for its dedication to America’s Promise, On May 10, 2008, a group of 97 veterans to recognize Osage High School senior Tianna which strives to improve the health and well and their guardians will fly to Washington with Sullivan for helping to save the life of an elder- being of America’s youth. The bank has also a very special program. Louisiana HonorAir is ly woman who had wandered away from a raised funds for organizations including the providing the opportunity for these veterans health care center. Boys & Girls Clubs of Las Vegas, Big Brothers from my home State of Louisiana to visit In the early morning of January 20, 2008, Big Sisters of Nevada, the Shade Tree Shel- Washington, DC, on a chartered flight free of Tianna was driving home in 14 degrees below ter, and Classroom on Wheels. charge. During their visit, they will visit Arling- zero weather and came upon 88-year-old Mar- Madam Speaker, I am proud to honor Jack- ton National Cemetery and the World War II guerite Miller. Marguerite was barefoot and ie DeLaney and would like to recognize her Memorial. For many, this will be their first and clothed only in a hospital gown. Although contributions to small businesses throughout only opportunity to see these sights dedicated Tianna was scared, she knew that Marguerite the Las Vegas community. I would also like to to the great service they have provided for our needed help immediately. Tianna attempted to congratulate her on receiving the Financial Nation. Today I ask my colleagues to join me in get Marguerite in her car, but she was so cold Services Champion of the Year for the 2008 honoring these great Americans and thanking and stiff that she could only clutch to Tianna Small Business Awards. them for their unselfish service. for warmth. Tianna dialed 911 and stayed with f Marguerite until Osage police officer Brian f RECOGNIZING HOMES FOR OUR Wright arrived. Marguerite’s body temperature MOURNING THE PASSING OF TROOPS had dropped to 90 degrees, and they had a RONALD D. BROWN difficult time getting her in the police car due to her stiffness from the cold. An ambulance HON. JOE KNOLLENBERG HON. JOHN LEWIS then came and took Marguerite to Mitchell OF MICHIGAN OF GEORGIA County Regional Hospital. Later, she was IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES taken to the Iowa City hospital burn center to Thursday, May 8, 2008 treat her frostbite injuries. Thursday, May 8, 2008 Tianna’s heroic actions and quick thinking Mr. KNOLLENBERG. Madam Speaker, I Mr. LEWIS of Georgia. Madam Speaker, on set an example for us all. Tianna’s courage rise today to recognize Home for Our Troops Monday, the city of Atlanta lost one of its most

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00006 Fmt 0626 Sfmt 9920 E:\CR\FM\K08MY8.004 E08MYPT1 wwoods2 on PRODPC68 with REMARKS May 8, 2008 CONGRESSIONAL RECORD — Extensions of Remarks E861 influential residents and a pillar of the commu- organizations, and government entities. have faced and continue to face today. Many nity, Ronald Brown. Through internships and apprenticeships, of the men and women who have worked Ron Brown was the head of Atlanta Life Fi- GCC has been successful in nurturing local there, and continue to work there, are patriots, nancial Group, a company that is a historic in- talent to contribute to our island’s economy. doing some of the Nation’s most important stitution. The 103-year-old company was GCC maintains membership in the pres- work while hidden from the spotlight. founded by a former slave by the name of tigious educational organizations of the Amer- Tragically, many of these workers, unbe- Alonzo Herndon and is the oldest and largest ican Association of Community and Junior knownst to them, were exposed to cancer- black-owned, privately held insurance com- Colleges, the Pacific Post-Secondary Edu- causing doses of radiation during their em- pany in the country. Ron was a major factor cational Council, the Western Association of ployment. It has been a long, hard struggle for in Atlanta Life’s success. Schools and Colleges, and the League of In- many of these employees to get compensation Ron Brown expanded the company’s scope novation for Community Colleges. Accredita- from the Federal Government, and many of from strictly an insurance business to diversi- tion has been awarded by the Accrediting them have passed away from the diseases fying into three divisions: Atlanta Life Insur- Commission for Community and Junior Col- they contracted in service to their country. ance Co., Atlanta Life Investment Advisors leges and by the Western Association of One of these heroes was New Mexico State and Jackson Securities. Atlanta Life Financial Schools and Colleges since 1979. Additionally, Representative Ray Ruiz. Representative Ruiz possesses $16 billion in policies and manages under the United States Vocational Education was a LANL employee diagnosed with cancer $1 billion in assets. While achieving great Act of 1946, 1963, and subsequent amend- as a result of his work for the lab. Tomorrow, business success, Ron advocated that compa- ments, GCC has served as the State Board of May 9, marks the 4 year anniversary of his nies have not only a responsibility to make a Control for vocational education for Guam. passing. From the time of his diagnosis to the profit but to also get involved within its com- GCC has been a consistent leader in the re- time of his passing, Representative Ruiz munity. Ron servw on corporate and civic gion for education. True to its mission to pro- worked tirelessly for a Special Exposure Co- boards. He was a big believer of providing op- vide students with training for life-long learn- hort (SEC) designation for LANL to ensure portunities to children, sharing business expe- ing, GCC offers opportunities for specialized that the workers diagnosed with cancer did not riences with them and meeting with student learning through programs such as English as have to face the same impossible burden of groups at the company headquarters. a Second Language, Adult Basic Education, proof as he did—to convince the government Ron Brown accomplished much in his life. General Education Development (GED) prepa- that their work was responsible for their ill- Through the many fruits of his labors from a ration and testing, and an Adult High School ness. life that was cut too short, Ron’s impact will Diploma. Following his passing, Representative Ruiz’s live on. With his passing, Atlanta has lost a During this 30th anniversary, I join the peo- wife, Harriet, not only was elected to fill her figure of good and of progress. ple of Guam in recognizing the foresight and husband’s seat in the State Legislature, but f vision of GCC’s past presidents: Dr. carried on the work to secure SEC designation Herominiano delos Santos, John T. Cruz. Jose for the workers at LANL. While there was an RECOGNIZING THE 30TH ANNIVER- Ramos, Peter Nelson, Dr. Stanley B. Malkin, initial, narrow SEC approved to cover a very SARY OF THE GUAM COMMUNITY and Dr. John C. Salas. We also recognize the small class of workers at the lab, the Ruiz’s COLLEGE current and past chairs of the Board of Trust- work, and the work of many others, came as ees: Gina Y. Ramos, Juan Tenorio, Charles close to realization as it had to date when on HON. MADELEINE Z. BORDALLO Spero, Dr. Antonio Yamashita, Dr. John C. July 22, 2007 a much broader SEC designa- OF GUAM Salas, Richard Tennessen, Jose Munoz, tion for LANL became effective. IN THE HOUSE OF REPRESENTATIVES Atanacio T. Diaz, Greg Perez, and Adolpho The SEC covers hundreds of workers and their survivors diagnosed with radiogenic can- Thursday, May 8, 2008 Sgambelluri. The vision of these individuals has culminated today into the leadership of cers who worked at the lab from March 15, Ms. BORDALLO. Madam Speaker, I rise president Mary Ann Y. Okada, vice president 1943 through December 31, 1975. While this today to recognize the achievements of the of academic affairs John R. Rider, Ed.D., and was an incredibly important development, and Guam Community College (GCC) and to con- vice president of administrative services John one that was long overdue, there are many gratulate the institution on the occasion of its C. Camacho. workers who should be included in this SEC, 30th anniversary. The Guam Community Col- With the commitment, dedication, and lead- but are not. lege, established in November 1977 by Guam ership of Guam Community College’s officers, I know one worker, Madam Speaker, who Public Law 14–77, became our premier institu- board of trustees, faculty, and students, GCC suffers from radiogenic cancer, but just falls a tion for vocational, skilled trade and technical has become a symbol of the possibilities that few months short of the recently enacted SEC education when it assumed the programs and exist within our island and our region. The col- because he does not meet the requirements missions of its predecessor, the Trade and lege blends the talent and expertise of our for number of days worked through 1975. Ex- Technical High School and the Vocational government agencies, businesses and indus- tend the SEC further, however, and he would High School of the Guam Department of Edu- tries, community groups, and technical training certainly qualify for compensation. cation. establishments on Guam. These valuable and This is particularly troubling considering GCC’s leadership at both secondary and strategic partnerships have increased trade NIOSH has already conceded that doses can- post-secondary levels is realized through its and technical capabilities in the community not be reconstructed for workers through offering of over 50 courses of study in voca- leading to greater opportunities and success 1975, but there are employees such as the tional programs, adult and continuing edu- for its students and our islands. one I just referred to who are denied com- cation, community education, and short-term On behalf of the people of Guam, I would pensation because of the cutoff date. NIOSH specialized training. Designed to target stu- like to recognize the 30 years of education can no more reconstruct doses for employees dent populations within the Asia-Pacific Rim and community service of the Guam Commu- of the lab in January 1976 than they can for and the Micronesia region, GCC courses pre- nity College. I commend and congratulate employees of the lab in December of 1975. pare students through job development and them on this milestone anniversary. Yet post-1975 claimants are forced to undergo training based on community needs and trade f dose reconstruction during a period for which demands. NIOSH concedes information is not available. The small communities within the region, INTRODUCTION OF THE RAY RUIZ That is why today I am introducing the Ray and the distance from mainland learning insti- SPECIAL EXPOSURE COHORT ACT Ruiz Special Exposure Cohort Act to both tutions, are contributing factors to the GCC’s honor the late Representative Ruiz, and to mission. With a diverse offering in curriculum HON. TOM UDALL also help fully realize his and his wife’s work and training programs, the college caters to OF NEW MEXICO to provide compensation to all employees who these communities by offering ease of access IN THE HOUSE OF REPRESENTATIVES contracted illnesses from radiation exposure at to higher education. The main college cam- LANL. This legislation would expand the cur- pus, located in Mangilao, Guam, accommo- Thursday, May 8, 2008 rent LANL SEC to cover claimants at the lab dates a population of 2,000 students. Off-cam- Mr. UDALL of New Mexico. Madam Speak- up to the present so that any worker diag- pus and satellite options allow for distance er, I have the honor of representing the Los nosed with the illnesses stipulated under the learning, and on-campus courses equip stu- Alamos National Laboratory, which, throughout current SEC and who meets a required 250 dents with expert and on-the-job training its history, has played a critical role in keeping aggregated work days at LANL are covered. through partnerships with Guam businesses, our Nation safe from the many threats we The important national security work being

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00007 Fmt 0626 Sfmt 9920 E:\CR\FM\A08MY8.016 E08MYPT1 wwoods2 on PRODPC68 with REMARKS E862 CONGRESSIONAL RECORD — Extensions of Remarks May 8, 2008 conducted at the lab did not stop on Decem- ing Development Corporation. Based in Ukiah, NATIONAL CHILDCARE PROVIDER ber 31, 1975, and sadly, neither did the harm- Mendocino County, RCHDC is Northern Cali- APPRECIATION DAY ful exposures to radiation that has caused fornia’s largest rural nonprofit housing devel- many of these cancers. Post-1975 claimants opment organization. HON. BARBARA CUBIN have done the same work and been diag- Duane Hill recognized the overwhelming OF WYOMING nosed with the same illnesses. These IN THE HOUSE OF REPRESENTATIVES radiogenic cancers are not constrained by cal- need for affordable housing in rural areas endar years, and nor should be the com- when cities were receiving substantial housing Thursday, May 8, 2008 pensation to employees and their families. subsidies and few resources were being dis- Mrs. CUBIN. Madam Speaker, I rise to rec- Madam Speaker, claimants and their fami- tributed in rural areas. He assembled a board ognize May 9th 2008 as National Childcare lies have made great strides in achieving of influential volunteers and embarked on a Provider Appreciation Day. Started in 1996 by some small measure of justice from the Fed- campaign of community awareness and public a group of volunteers, this is an occasion to eral Government. There are many, however, education that led to the incorporation of the recognize the tireless efforts of providers who who continue to fight the battle not only with Rural Communities Housing Development care for the children of working parents. their illnesses, but with the government simul- Corporation in 1975. Today, I join a chorus of state and local gov- taneously. The EEOICPA program was de- Under Duane Hill’s leadership, RCHDC ernment proclamations, business and commu- nity events and the personal acknowledgment signed to put the burden of proof on the gov- grew from its original $500 investment and ernment, not on the claimant. Unfortunately, of providers by the parents themselves. staff of two to its current $3.3 million operating that has not been the way the program is op- It takes a special kind of person to work in budget with assets worth more than $200 mil- erating. The SEC designation for LANL was the childcare field, which is so critical to qual- an important step towards rectifying this situa- lion. The agency has built 19 developments ity family life and the early childhood develop- tion, but the Ray Ruiz Special Exposure Co- from the ground up that together provide 528 ment of millions of Americans. Our Nation’s hort Act will help provide much deserved com- affordable rental apartments. By purchasing childcare providers are all too often unsung pensation to the many other cold war heroes nine large housing developments, RCHDC heroes, making the recognition of National who have tragically fallen through the cracks. also preserved 400 units of rental housing that Child Provider Appreciation by this body that I urge my colleagues to support this legisla- were in danger of conversion to market-rate. much more important. tion. The agency has provided first-time home- Childcare is also an important component of f buyers with more than 350 self-help homes in our Nation’s economy. The National Child 30 subdivisions scattered throughout rural Care Association has estimated that there are TRIBUTE TO WAPSIE VALLEY nearly 2.8 million childcare providers in the Northern California, and has 126 more in de- WARRIORS United States and that nearly 12 million under velopment. RCHDC now manages 1,000 af- age 5 are in their care. Moreover, healthy fam- HON. BRUCE L. BRALEY fordable housing units and serves between ilies contribute immeasurably to healthy work- 1500 and 2000 people annually. The agency OF IOWA places. also has $30 million worth of future projects in IN THE HOUSE OF REPRESENTATIVES Many regions in my home State of Wyoming the pipeline. In 2008, RCHDC will complete are experiencing population increases due to Thursday, May 8, 2008 rehabilitation of 144 new units in Del Norte growth in the energy sector of our economy. Mr. BRALEY of Iowa. Madam Speaker, I County, one of the most underserved areas of Like other aspects of Wyoming’s infrastruc- rise today to recognize the outstanding results the State, as well as an additional 50 units in ture, Wyoming’s childcare community is being achieved by the Wapsie Valley Warriors foot- Humboldt County. In Kelseyville, RCHDC’s challenged by this growth and the increased ball team at the State Football Tournament in new farm worker housing will not only provide demand for childcare services. I am proud to Cedar Falls this past fall. agricultural workers with a suitable place to recognize Wyoming’s childcare providers for Falling short in last year’s championship live, but will also help to ensure the viability of their valuable contribution to Wyoming’s com- game, the Warriors were determined to not let agriculture as an economic, employment and munities in this time of transition. history repeat itself once again. The top cultural resource for Lake County. With that, I commend our Nation’s childcare ranked Warriors (13–0) would not disappoint, providers and invite my colleagues to do the pushing to a 22–14 win over the Lawton- Duane’s steadfast resolve to see projects same on National Childcare Provider Appre- Bronson Eagles. For twelve Warrior seniors, it through to completion, coupled with his un- ciation Day. didn’t get much better than that. canny ability to build consensus and marshal f I congratulate the Warriors for winning the both human and financial resources has cre- Iowa class A state championship. This hard ated an inventory of affordable housing stock COMMENDING AMTRAK ON fought journey to the championship title gives that has served as both a home and a spring- NATIONAL TRAIN DAY Wapsie its fourth state title in history and its board to upward mobility for thousands of low- first since 1997. It is especially rewarding with income rural Californians. HON. JAMES L. OBERSTAR the added pressure of a number one ranking He is on the forefront of campaigns for OF MINNESOTA from the season’s outset. IN THE HOUSE OF REPRESENTATIVES Madam Speaker, I am extremely proud of housing bonds and community development Thursday, May 8, 2008 the accomplishments of the Warrior football funding. He built his own ‘‘self-help’’ home and team, both on and off the field, and I am started a program for RCHDC employees to Mr. OBERSTAR. Madam Speaker, I rise proud to serve them in Congress. do the same. Under Duane Hill’s leadership, today to highlight the importance of passenger f RCHDC has become nationally recognized as rail in the United States and express my sup- an innovator in rural housing development. port for Amtrak in conjunction with National COMMEMORATING DUANE The California Housing Consortium inducted Train Day on May 10th, 2008. MUNFORT HILL OF UKIAH, CALI- RCHDC into the Affordable Housing Hall of National Train Day marks the 139th anniver- FORNIA FOR HIS OUTSTANDING Fame. Just last month, Duane received the sary of the ‘‘golden spike’’ being driven into CONTRIBUTIONS TO AFFORD- prestigious National NeighborWorks Associa- the ground at Promontory Summit, Utah, in ABLE HOUSING tion’s 2008 Lifetime Achievement award 1869. The ‘‘golden spike’’ bound the last tie connecting the last rail that united the Central Madam Speaker, Duane Hill has earned the Pacific Railroad with the Union Pacific Rail- HON. MIKE THOMPSON respect of his colleagues and community. OF CALIFORNIA road, connecting the United States by rail from Through visionary leadership, technical exper- IN THE HOUSE OF REPRESENTATIVES coast to coast. tise and quiet persuasion, Duane Hill has in- The transcontinental railroad was born Thursday, May 8, 2008 vented, built and sustained the community de- thanks to the support of President Abraham Mr. THOMPSON of California. Madam velopment movement in rural Northern Cali- Lincoln. He, along with Civil War leaders, envi- Speaker, I rise today to honor Duane Hill, af- fornia. For these reasons and for the lasting sioned and planned the creation of the rail- fordable housing trailblazer and friend, upon impact RCHDC continues to have in rural road. Not only did the completion of the rail- his retirement after 33 years as founder and Northern California, it is appropriate that we road result in the ability to deliver goods and executive director of Rural Community Hous- honor Duane Munfort Hill. people across the country, it ultimately bound

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00008 Fmt 0626 Sfmt 9920 E:\CR\FM\A08MY8.018 E08MYPT1 wwoods2 on PRODPC68 with REMARKS May 8, 2008 CONGRESSIONAL RECORD — Extensions of Remarks E863 the east with the west, further unifying the colleagues to use this excellent opportunity to President George W. Bush’s Advisory Council country as the divide between the North and reflect on the benefits that Amtrak and intercity on Financial Literacy. the South was beginning to mend. passenger rail provide to our Nation. On January 22, 2008, President Bush es- The transcontinental railroad was the first of f tablished the new Advisory Council on Finan- its kind. It was an engineering marvel com- cial Literacy, chaired by Charles Schwab. Dr. pleted with great precision and speed. The PAYING TRIBUTE TO SHAUNDELL Hira is one of only 16 members appointed by railroad was an engineering wonder and it set NEWSOME President Bush. The Council’s purpose is to the example for how transcontinental railroads help keep America competitive and assist the would be built across Canada and Russia HON. JON C. PORTER American people in understanding and ad- some 20 to 25 years later. OF NEVADA dressing financial matters. The Council will Completion of the transcontinental railroad IN THE HOUSE OF REPRESENTATIVES work with the public and private sectors to created a new sense of wonder and enthu- help increase financial education in schools as Thursday, May 8, 2008 siasm for discovery and entrepreneurship well as for adults in the workplace. across the country. It set the stage for a great Mr. PORTER. Madam Speaker, it is my dis- Dr. Hira came to Iowa State University in migration of businessmen, created a new fron- tinct pleasure to rise today to honor Shaundell 1980. She is the executive assistant to the tier for those seeking a new way of life, en- Newsome by entering his name in the CON- university president and a professor of per- abled faster movement of people and goods, GRESSIONAL RECORD, the official record of the sonal finance and consumer economics. Dr. and provided the country with a great oppor- proceedings and debates of the United States Hira has been teaching and conducting re- tunity to expand the economy. Congress since 1873. Today I pay tribute to search in family financial management, con- Today, we are witnessing a rebirth of pas- Shaundell Newsome, President and CEO of sumer credit, gambling, and consumer bank- senger rail in America. In the same way that Newsome Marketing Enterprises, for his role ruptcy since 1976. She has published approxi- the transcontinental railroad was critical to our in promoting excellence in small business mately 100 articles and book chapters and Nation in the late 19th century, a strong na- throughout the Las Vegas community. given approximately 200 national and inter- tional passenger rail system is vital today. In At the age of 14, Shaundell began his love national presentations in her field. Dr. Hira has order to strengthen intercity passenger rail in for marketing while he was attending the High also received various awards for her work and this country, today I have introduced the ‘‘Pas- School of Graphic Communication Arts. While serves on several national committees and senger Rail Investment and Improvement Act he served 10 years in the United States Air boards. of 2008’’. Force, he greatly enhanced his communication Dr. Hira’s list of awards and accomplish- The National Railroad Passenger Corpora- skills by becoming the Morale Welfare and ments represents the valuable resource she tion, more commonly known as Amtrak, oper- Recreations Coordinator for his squadron. Fol- has provided to Iowa State University and fi- ates a nationwide rail network, serving more lowing his service in the military, Shaundell nancial education in America. She certainly than 500 destinations in 46 States over 21,000 joined Station Casinos’ Marketing Department, has earned her position on the President’s Ad- miles of routes, with nearly 19,000 employees. where he helped to successfully launch the visory Council, and I know she will excel in Amtrak recently marked the beginning of its company’s popular Boarding Pass Rewards her special advisory role. 38th year of operation. Our passenger rail Program. He then went on to serve as the I commend Dr. Tahira Hira for her long- service has come a long way since its begin- marketing director at Sante Fe Station. Look- standing dedication and diligence to her pro- nings in 1971, and has faced many challenges ing for a way to focus his attention on pro- fession and for her efforts to improve our Na- since, but continues to grow stronger with viding practical yet ‘‘outside the box’’ mar- tion’s financial literacy. I consider it an honor each passing year. Despite uneven Federal in- keting solutions for small businesses, to represent Dr. Hira in the U.S. Congress, vestment over the years, Amtrak has per- Shaundell founded Newsome Marketing Enter- and I wish her the best while serving on the severed, achieving many successes in im- prises in 2006. President’s Council and in her future work. proved operating efficiency, increased rider- While working to continue his newly estab- f ship, and higher revenue. lished marketing firm, Shaundell was often CONGRATULATING NURSE SUSAN In fact, in FY 2007, Amtrak set a new rider- recognized for his efforts to create profes- COBB ship record for the fifth year in a row, exceed- sional opportunities for others, particularly in ing 25.8 million passengers. At the same time, the minority-business community. As a board HON. MICHAEL C. BURGESS Amtrak increased ticket revenues by 11 per- member for the 100 Black Men of Las Vegas, OF TEXAS cent to more than $1.5 billion, a figure that in- he focused on creating new economic devel- IN THE HOUSE OF REPRESENTATIVES creased for the third straight year. These suc- opment opportunities for the non-profit organi- cesses are being enjoyed across Amtrak’s en- zation. He also worked with Valley Center Op- Thursday, May 8, 2008 tire network. In FY 2007, Amtrak held 56 per- portunity Zone (VCOZ) to assist small minority Mr. BURGESS. Madam Speaker, I rise cent of the air/rail market between New York businesses within the enterprise zone by pre- today to recognize Susan Cobb of Lewisville, and Washington and 41 percent of the market senting workshops, including his well-known Texas. Ms. Cobb has been named one of the share between New York and Boston. This ‘‘Marketers Anonymous—A 12 Step Plan’’. He Great 100 Nurses of 2008 by the Texas shows that where Amtrak is provided the re- often shares his expertise by giving personal Nurses Association, Districts Three and Four, sources to succeed, it provides a trip-time consultation to various organizations and busi- and the Dallas-Fort Worth Nurse Executives. competitive alternative to air and car. nesses. Shaundell also works closely with the She is a nurse at the Medical Center of America needs to look toward Amtrak as we Urban Chamber of Commerce and the North Lewisville. address our growing transportation needs. The Las Vegas Chamber of Commerce, playing a The Medical Center’s mission is to consist- Department of Transportation describes the vital role in advocating for small businesses. ently provide high quality health services, in- problem of congestion on our highways and in Madam Speaker, I am proud to honor formation and education in an environment the air as ‘‘chronic.’’ Amtrak removes almost Shaundell Newsome and would like to recog- that is compassionate, professional, and re- eight million cars from the road annually. Air- nize his small-business accomplishments with- sponsive to its patients, physicians, and asso- ports are experiencing significant delays too, in the Las Vegas community. I would also like ciates. Ms. Cobb is an excellent embodiment with more than 400,000 flights departing or ar- to congratulate him on receiving the Minority of this which her passion and commitment riving late in 2006. Amtrak eases air conges- Small Business Champion of the Year for the demonstrate. tion by eliminating the need for 50,000 fully 2008 Small Business Awards. Each year this recognition is bestowed on loaded airplanes each year. f nurses who embody excellence in the science Amtrak is also a substantially more environ- and art of nursing. The chosen honorees be- mentally friendly mode of transportation than TRIBUTE TO DR. TAHIRA HIRA long to an array of professional organizations automobiles or airplanes. According to the and work in a wide variety of clinical special- World Resources Institute, rail transportation HON. TOM LATHAM ties. This is the 18th consecutive year that the produces 57 percent less carbon emissions OF IOWA Texas Nurses Association, Districts Three and than airplanes, and 40 percent less carbon IN THE HOUSE OF REPRESENTATIVES Four, and the Dallas-Fort Worth Nurse Execu- emissions than cars. tives have recognized area nurses for their Madam Speaker, I lend my strong support Thursday, May 8, 2008 compassion and dedication. The recipients will to the commemoration of National Train Day Mr. LATHAM. Madam Speaker, I rise today be honored at a gala event on Monday, May on May 10, 2008, and encourage all of my to recognize Dr. Tahira Hira’s appointment to 12, 2008.

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00009 Fmt 0626 Sfmt 9920 E:\CR\FM\A08MY8.022 E08MYPT1 wwoods2 on PRODPC68 with REMARKS E864 CONGRESSIONAL RECORD — Extensions of Remarks May 8, 2008 Madam Speaker, I am honored to stand SUPPORTING SOLUTIONS TO THE of We the People: The Citizen and the Con- today and recognize Susan Cobb. She pro- HOUSING CRISIS stitution, the most extensive educational pro- vides an invaluable service to North Texas gram in the country developed to educate each and every day, and I join the community HON. FORTNEY PETE STARK young people about the U.S. Constitution and in thanking her for her devotion to saving OF CALIFORNIA Bill of Rights. Administered by the Center for lives. It is a privilege to represent Susan, and IN THE HOUSE OF REPRESENTATIVES Civic Education, the We the People program is funded by the U.S. Department of Education all our fine nurses, in the 26th District of Thursday, May 8, 2008 Texas. by act of Congress. Mr. STARK. Madam Speaker, I rise today to I am proud to announce that a group of out- f support two important pieces of legislation that standing students from St. Thomas Aquinas will both keep families in their homes, and in- High School in Overland Park, Kansas, CONGRATULATING HIGHLAND crease the supply of affordable housing. through their knowledge of the U.S. Constitu- COMMUNITY COLLEGE ON ITS After years of lax regulatory oversight driven tion, won the statewide competition, earning 150TH ANNIVERSARY by the discredited ideology of the Bush admin- the chance to come to our Nation’s capital and istration and a rubber-stamp Republican Con- compete at the national level. gress, our Nation is faced with a housing cri- While in Washington, the students partici- HON. NANCY E. BOYDA sis. Sub-prime loans, once the darlings of Wall pated in a three-day academic competition Street, are now adjusting upward and millions that simulates a congressional hearing in OF KANSAS of families have lost their homes or are facing which they ‘‘testify’’ before a panel of judges. IN THE HOUSE OF REPRESENTATIVES foreclosure. In just the first 3 months of 2008, Students demonstrate their knowledge and un- over 113,000 foreclosure notices have gone derstanding of constitutional principles as they Thursday, May 8, 2008 out to families in California. President Bush evaluate, take, and defend positions on rel- has responded by providing a $30 billion bail- evant historical and contemporary issues. It is Mrs. BOYDA of Kansas. Madam Speaker, I out to Bear-Stearns, a major cause of the important to note that independent studies of rise today to congratulate Highland Commu- mess in the first place. Today, the Democratic- the We the People program indicate that nity College on 150 years of educating the led Congress is proposing a real solution that alumni of this nationally-acclaimed program good people of the state of Kansas. Chartered will assist real families, and all the President display a greater political tolerance and com- in 1858, Highland Community College was the has offered is a veto threat. mitment to the principles and values of the first college in Kansas, and it has overcome I support both the Neighborhood Stabiliza- Constitution and Bill of Rights than do stu- many adversities to remain prosperous and re- tion Act (H.R. 5818) and the Foreclosure Pre- dents using traditional textbooks and ap- spected to this day. Highland Community Col- vention Act (H.R. 3221). Together, they offer a proaches. With various reports and surveys lege offers a wonderful and necessary service comprehensive approach that will protect fami- that reveal the lack of civic knowledge and en- to students who are trying to make more out lies, stabilize home prices, and expand afford- gagement, I am pleased to support such an of their lives. able housing options around the Nation. outstanding program that continues to produce Community colleges play an important and This legislation will allow homeowners enlightened and responsible citizens. distinctive role in the American education sys- trapped in untenable mortgages to refinance Madam Speaker, the names of these out- tem—they provide a world class education into FHA-backed mortgages. Lenders and bor- standing students from St. Thomas Aquinas rowers must each take responsibility by low- that is affordable and provides flexibility. High- High School are: ering the outstanding principal, and dem- Hillary Bourquin, Rosemarie Boyles, Annie land Community College facilitates programs onstrating an ability to repay, respectively. Re- Clark, Michelle Coombs, Alexander Davidson, for many non-traditional students all over the quiring borrowers to provide a portion of re- Blair Donahue, Maria Dudley, Jillian Falbre, state of Kansas through its outreach program. sale profits to the government further lessens Lauren Hannifan, Lisa Hartung, Sarah Her- It offers many night and weekend classes to taxpayer exposure. The legislation also pro- mes, Veronica Holton, Erin Jolley, Emily those students whose lives can not be built vides loans and grants to states to acquire Majerie, Arica Maurer, Kirsten Milliard, The- around the typical student’s schedule. A de- foreclosed properties and turn them into af- resa Nelson, Angela Nigro, Daniel Obermeier, gree from Highland Community College will fordable units for both sale and rent. Finally, Courtney Pigott, Rose Reynolds, Amanda take any student far in life, and for some, it this bill includes tax provisions aimed at as- Schnieders, Jonathan Shoulta, Emily Stone, will be the push they needed to pursue addi- sisting first-time homebuyers, easing the bur- David Sullivan, Bryan Thelen, Brittany tional degrees. den of property tax bills, and expanding fi- Wilderson, and Jerry Wohletz. In Kansas, we believe that college should nancing of low-income housing projects. I also wish to commend the teachers of the open doors, not close them, and that edu- Just as important is what this legislation class, Tim Lillis and Amy Person, who are re- cation should create opportunities, not debt. does not do. Unlike the bill passed by the sponsible for preparing these young constitu- Sadly, instead of graduating with hope for their Senate, these bills do not provide irrespon- tional experts for the statewide competition future, many of today’s college students grad- sible and unnecessary tax breaks to home- and national finals. Also worthy of special rec- uate with loan payments as far as the eye can builders, nor do they include a tax incentive to ognition is Lynn Stanley, the State coordinator, see. In an increasingly competitive society, purchase foreclosed properties that would like- and Ken Thomas, the district coordinator, who higher education is a necessity. Paying for ly increase the number of foreclosures. are among those responsible for implementing I urge all my colleagues to support both bills and completing a higher education degree the We the People program in my State. before us today, and vote for policies that will I congratulate these students on their ex- must be a realistic possibility for everyone. stem the tide of foreclosures and provide real ceptional achievements at the We the People The great community colleges in Kansas, in help to struggling families. If the Federal Gov- national finals. particular Highland Community College, make ernment can provide a handout to Wall Street, f that a reality for many students. we can certainly offer a hand up to families. TRIBUTE TO STATE SENATOR Highland Community College has made a f commitment to providing a low-cost, high- MARY LOU RATH value education. With their leadership, we’ll TRIBUTE TO PARTICIPANTS IN 2008 move closer to the day when every Kansas WE THE PEOPLE NATIONAL HON. THOMAS M. REYNOLDS FINALS student who wants to attend college can afford OF NEW YORK to do so and can receive a high quality edu- IN THE HOUSE OF REPRESENTATIVES cation that fits their needs as an individual. HON. DENNIS MOORE Thursday, May 8, 2008 OF KANSAS Highland Community College has served IN THE HOUSE OF REPRESENTATIVES Mr. REYNOLDS. Madam Speaker, it is with the State of Kansas and served it well. These great pride that I rise today to honor a re- words are a mere token of gratitude and can- Thursday, May 8, 2008 spected and dedicated legislator, a valued ed- not begin to repay the debt that we as Kan- Mr. MOORE of Kansas. Madam Speaker, ucator and community leader, and close con- sans owe members of the Highland commu- from May 3–5, 2008, more than 1,200 stu- fidante and dear friend who, for more than nity. Today, I congratulate Highland Commu- dents from across the country visited Wash- three decades, has dedicated her life and nity College on 150 years of success. ington, DC, to take part in the national finals service to her neighbors in Western New York.

VerDate Aug 31 2005 05:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00010 Fmt 0626 Sfmt 9920 E:\CR\FM\K08MY8.005 E08MYPT1 wwoods2 on PRODPC68 with REMARKS May 8, 2008 CONGRESSIONAL RECORD — Extensions of Remarks E865 State Senator Mary Lou Rath is one of the THE ENHANCEMENT OF RECRUIT- IN RECOGNITION OF LIEUTENANT most respected legislators in our area—proof MENT, RETENTION, AND READ- COLONEL GARRY W. MCCLENDON that elected service is a noble calling. Mary JUSTMENT THROUGH EDUCATION Lou has always been the voice of reason, and ACT OF 2008 HON. MIKE ROGERS proved time and time again that her only OF ALABAMA agenda was to serve and fight for the people HON. ADAM H. PUTNAM IN THE HOUSE OF REPRESENTATIVES of Western New York. OF FLORIDA Thursday, May 8, 2008 After spending 30 years in public service, IN THE HOUSE OF REPRESENTATIVES Mr. ROGERS of Alabama. Madam Speaker, I respectfully ask the attention of the House Mary Lou announced recently that she will re- Thursday, May 8, 2008 tire from the New York State Senate. She today to pay recognition to LTC Garry surely be missed, leaving behind a legacy of Mr. PUTNAM. Madam Speaker, we are for- McClendon. Lieutenant Colonel McClendon fighting for quality health care, serving as a ever indebted to the brave soldiers, sailors, has served our Nation in the Army for 25 airmen, and marines of our Armed Forces who years and as commanding officer for the An- champion for women across New York State, have fought and continue to fight for our free- niston Defense Munitions Center and Holston and taking on issues big and small that made dom. Though we can never truly repay the Army Ammunition Plant since June 2006. a real difference in the lives of those she rep- debt we owe them, we have a solemn duty to Mr. McClendon’s distinguished career began resented. honor their service with more than mere in 1983 as an Ammunition Stock Control and Mary Lou was first elected to public office in words. Accounting Specialist. Subsequent assign- 1977 as an Erie County Legislator and earned One important benefit for veterans is the ments with the Army included tours of duty in both the support of her constituents and the Montgomery G.I. Bill, which provides funding Southwest Asia, Fort Bragg, NC, Germany, trust of her colleagues, who elevated her to for education and training to veterans after Fort Lee, Virginia, and Camp Able Sentry in the post of Republican Leader. In 1994, she their service. Since its inception, the Mont- Macedonia. On behalf of us all, I would like to thank became the first woman ever to serve the 61 gomery G.I. Bill has helped millions of service members. But, Mr. Speaker, it’s long past the Lieutenant Colonel McClendon for his 25 st District in the New York State Senate. In time when we should modernize this important years of service to the United States, and wish the State Senate, Mary Lou earned a reputa- law. him all the best in his next endeavors. tion as a hard working and compassionate Today, with my colleagues, I introduced The f representative. Enhancement of Recruitment, Retention, and RISING ABOVE THE GATHERING Mary Lou also earned a statewide reputa- Readjustment Through Education Act of 2008. STORM: TWO YEARS LATER tion for her efforts to reform Medicaid and cur- This legislation enhances the existing G.I. Bill tail the sky-rocketing costs of health care. Ad- by improving education benefits for HON. FRANK R. WOLF ditionally, she worked hard to advance her servicemembers, veterans, and members of the Guard and Reserve. The legislation will OF VIRGINIA smart growth initiatives, end domestic violence IN THE HOUSE OF REPRESENTATIVES and ensure that all children have a quality help more military personnel attend college debt free, and allow them to transfer their edu- Thursday, May 8, 2008 education. cation benefits to their spouse or children. It Mr. WOLF. Madam Speaker, I rise today to In 1997, Mary Lou was inducted in the also bolsters recruitment and retention efforts, share a speech I gave to the National Acad- Western New York Women’s Hall of Fame, a encouraging servicemembers to continue their emies’ convocation on April 29, 2008 on the fitting tribute for a woman who has been such military careers in support ofthe all-volunteer second anniversary of the release of the a positive role model and inspiration to women force of today. Specifically this legislation ‘‘Gathering Storm.’’ I was honored to have had across New York. Not only did Mary Lou have would: the opportunity to address some of our na- a distinguished professional career, but along Provide an immediate increase in education tion’s top business, academic, and scientific with her husband, the late Supreme Court benefits for active duty personnel to $1500 a leaders at the convocation. Justice Edward A. Rath, Jr., raised a wonder- month, and to improve retention, those bene- As you may recall, the report painted a very ful family in whom she instilled the values of fits increase to $2000 a month after 12 or bleak picture of our Nation’s high-tech work- public service. more years of service. force, innovation, and global competitiveness. Significantly increase benefits for members It prompted swift congressional action to au- The name Rath not only invokes the best in of the National Guard and Reserves. thorize new funding and resources to bolster public service, it is, in a word, iconic in our Provide transferability, allowing service our science and high-tech workforce, culmi- community. The County Office building bears members to transfer their education benefits to nating with the enactment of the America the name of her father-in-law, Edward A. Rath, dependents. After 6 years of service, half of COMPETES Act last fall. Erie County’s first-ever chief executive. Her the benefit may be transferred and after 12 However, I am concerned that we still have son, Edward A. Rath III, is the third generation years of service 100 percent may be trans- much work to do to secure our economic fu- of family public servants, a member of the Erie ferred to a spouse or dependent children. ture in this global marketplace. And we will County Legislature, elected to a seat once Allow servicemembers to use up to $6,000 never be competitive if we cannot get the Fed- eral Government’s finances in order and begin held by his mother. per year of G.I. Bill education benefits to repay Federal student loans. to reduce our dependency on foreign debt. Despite all her achievements in public life, I Madam Speaker, my address as prepared Create a matching program to help more know from my long friendship with the Rath to the ‘‘Gathering Storm’’ convocation follows: veterans graduate debt-free. Up to an addi- family that Mary Lou’s greatest accomplish- Thank you for the opportunity to address tional $3,000 per year could be paid by the this gathering. As the fourth of five ‘‘con- ment is her loving family, her children Allison, Department of Veterans Affairs in return. Melinda, and Ed, and her eight grandchildren. gressional perspectives’’ on the program this Allow access to Montgomery G.I. Bill bene- morning, I’m reminded of the old Congress- She is very deserving of the honor she will fits for service academy graduates and Senior man Mo Udall quote: ‘‘Everything has been receive from the YWCA on May 10th, 2008 for Reserve Officers’ Training Corps officers who said but not everyone has said it.’’ her contributions to Batavia and Genesee continue serving. First, I want to thank you all for your ef- forts. I am pleased that so many of our na- County. Build on existing educational benefits pro- tion’s science, business, and government gram to ensure rapid implementation with Madam Speaker, in recognition of her tre- leaders have once again gathered to discuss minimal additional administrative costs. mendous service of more than 30 years, for this most pressing of issues challenging the On behalf of the over 30 million veterans in United States. her leadership, dedication and lasting legacy the United States who stand to benefit, I am Perhaps the greatest success of the ‘‘Gath- she leaves, I ask this Honorable Body to join very excited to introduce this legislation. While ering Storm’’ report thus far is the tremen- me in honoring my friend and colleague, New we can never fully repay the service and sac- dous awareness and urgency it has raised York State Senator Mary Lou Rath, in grateful among the American people. rifice so many brave Americans have made It was only a few years ago, in 2005, that appreciation for her distinguished career and and continue to make on behalf of our nation, Rep. Vernon Ehlers, Rep. Sherwood Boehlert, devoted service to the people of Western New we must ensure they receive access to the and I went to the White House to urge the York. kind of benefits they deserve. administration to make this a priority.

VerDate Aug 31 2005 05:17 May 09, 2008 Jkt 069060 PO 00000 Frm 00011 Fmt 0626 Sfmt 0634 E:\CR\FM\A08MY8.026 E08MYPT1 wwoods2 on PRODPC68 with REMARKS E866 CONGRESSIONAL RECORD — Extensions of Remarks May 8, 2008 With the support of the councils of Na- These two efforts go hand-in-hand. Clearly, this is a pressing economic issue, tional Academies of Science and Engineer- America is $9 trillion deep in federal debt, as the first baby boomer has just signed up ing, we announced a national summit on and the Government Accountability Office for promised Social Security benefits and science, technology, engineering, and manu- has estimated $54.3 trillion in unfunded our nation’s longterm IOUs are coming due. facturing at the Department of Commerce promised benefits if we don’t change our cur- Just recently, Moody’s Investment Service which helped lead to the creation of the rent course. That’s trillions, with a ‘‘T’’. indicated that the U.S. triple-A bond rating Committee on Prospering in the Global The Social Security and Medicare Trustees will be at risk by 2018. Standard and Poor’s Economy of the 21st Century. reports issued last month only reinforce the Investment Service indicated that it may be I want to thank Norm Augustine and the dire condition of our fiscal health. Both re- as early as 2012; and if present trends con- other members of the committee who helped ports make very clear that we must address tinue would plummet to junk-bond status by educate me to the critical importance of this these tremendous shortfalls very soon. 2025. as I served as Chairman of the Appropria- The U.S. dollar is dropping like a rock—it What will that mean to our economy? tions Subcommittee funding these programs. lost 15 percent against the Euro last year. Should the U.S. lose its AAA rating in a I appreciate President Bush for laying out Gasoline reached $120 per barrel this week. few years, the cost of borrowing for both the the American Competitiveness Agenda in his What will happen when the well runs dry Treasury and for U.S. private businesses 2006 State of the Union and his support for and we no longer have money for the vital would significantly increase. It would also more funding this year. technology programs that we’re discussing increase the likelihood of a devastating cap- Congress followed suit and adopted many today? ital flight. This is a very real risk to our eco- recommendations from the ‘‘Gathering How will we remain competitive when nomic growth and global competitiveness. Storm’’ report into the America COMPETES there is no money to fund science and math Again, this debt has very real implications. Act which was signed into law last year. education initiatives? Our children can’t More than $2.6 billion a day is needed to fund I appreciate the leadership of Science Com- compete in the global marketplace if we our budget shortfall, which has left nearly 40 mittee Chairman Bart Gordon and Ranking can’t provide U.S. students with a first-class percent of our domestic economy in foreign Member Ralph Hall in the House, as well as education. hands. Sen. Lamar Alexander in the Senate for see- How will we remain competitive when These IOU’s are held by foreign countries— ing this bill through. there is no money to fund medical research? with significant shares held by non-demo- It is rare in Washington that good ideas Without discretionary funding to develop move so far, so fast. And it is in many ways cratic countries like China and Saudi Ara- cutting-edge technology, advance research, bia. We should care that countries that do a testament to the people in this room who and perform clinical trials, we will not be tirelessly worked to educate Congress, the not share our democratic values have grow- able to make critical strides toward cures for ing leverage over the U.S. Administration, business community, and cancer, Alzheimer’s, autism, and other dev- the American people. Borrowing hundreds of billions of dollars astating diseases. on the Chinese and Saudi credit cards puts There is so much more work to be done. We How will we remain competitive when not only our future economy, but also our have been successful in raising public aware- there is no money to fund our infrastruc- national security at serious risk. ness of these issues, but we have barely ture? Ironically, the Chinese will be some of our begun to turn the page in meeting our work- How will we remain competitive when greatest economic and technology competi- force and innovation demands. there is no money to pay for the National tors in the twenty-first century. How well I worry that we still graduate half the Science Foundation and NASA? America will will we be able to compete when we depend number of physicists that we did in 1956—be- no longer be able to provide leadership and on their credit to fund our programs? They fore Sputnik spurred our last ‘‘great awak- inspiration to the rest of the world. have become our banker. ening’’ in science and engineering. These bleak scenarios only scratch the sur- I worry that one-third to half of those we face of how concerned we should be about This is also a moral issue. Last month, graduate with science and engineering de- America’s future. These are the realities we Pete Peterson penned an editorial that ran grees are foreign students; and most of them face. in Newsweek. He ends by quoting Dietrich will return to their home countries rather Sadly, much of this falls on deaf ears in Bonhoeffer, the German pastor who was in- than applying their skills in the U.S. Washington. So many bright people delude strumental in the resistance movement I worry that U.S. patents are down and our themselves into thinking that we have a against Nazism. Bonhoeffer said, ‘‘The ulti- companies are spending more on tort legisla- long-term plan to bring our finances into mate test of a moral society is the kind of tion than on research and development. order. world it leaves to its children.’’ I worry that tests still show that one-third The long-term has arrived. The next Presi- I can’t help but wonder what sort of future of U.S. students lack the competency to per- dent will have to address this. today’s partisan Washington is leaving to form the most basic mathematical computa- It reminds me of the refrain from song- our children and grandchildren. tions. Fortunately, we still have options—if we I worry that half of the money we made writer Paul Simon’s ‘‘The Boxer’’: ‘‘Man hears what he wants to hear and disregards act soon. available for grants for college students in I am truly impressed by the bipartisan and STEM fields is going unused. the rest.’’ That could describe Congress’s and Wall Street’s reaction, or lack thereof, to broad ranging coalition that the ‘‘Gathering I worry that our edge in aerospace research Storm’’ report has assembled in its cause. I is in danger. Our historic prominence in the financial crisis staring America square in the face. believe we can replicate this success in ad- automobiles and electronics manufacturing dressing entitlement reform, tax policy, and has long since eroded; we cannot afford to We can’t afford to put off reform anymore. With every year that Congress prolongs fiscal solvency. We need to replicate the lose our aerospace leadership. ‘‘Gathering Storm’’ effort to deal with the I worry about losing competitiveness with making the difficult decisions to deal with issue of our debt. China—they may even beat us back to the this runaway mandatory spending—the por- For the past year, Congressman Jim Coo- moon. tion of the federal budget available to fund I worry about the country my children and discretionary programs decreases. per, a Democrat from Tennessee, and I have grandchildren will live in if we fail to deal And just so we’re clear: nearly every been working closely together on the Cooper- with this. science, technology, research, manufac- Wolf SAFE Commission Act. It has since But you don’t need me to rattle off any turing, and competitiveness program we dis- garnered over 80 bipartisan cosponsors, in- more statistics. The real experts will help cuss here today is funded through discre- cluding Republican leadership in the House put these trends and developments in con- tionary dollars. as well as the chairs of the Democratic Blue text later today. In 1962, mandatory spending—Social Secu- Dog Coalition. Instead, I’d like to talk about a different, rity, Medicare, Medicaid, and debt interest The Heritage Foundation, Brookings Insti- yet inextricably linked, issue that is further payments—comprised less than one-third of tution, Concord Coalition, and former Comp- undermining our competitiveness. To turn the federal budget. Today it’s doubled to troller General David Walker helped us draft Udall’s phrase, I would like to talk about over two-thirds of the budget. this and it is supported by David Broder and something that hasn’t been said, in hopes The Office of Management and Budget David Brooks. that everyone will say it. projects that in less than 5 years, non-de- Modeled after the base-closing process, the While we are working hard to stave off the fense discretionary spending will fall to less bill would create a bipartisan 16-member ‘‘Gathering Storm,’’ we are losing sight of than 15 percent of the federal budget. And commission to review entitlement spending, the tsunami right off our coasts—a tsunami the competitiveness programs we’re working tax policy, debt, and all other federal spend- of debt. Former Comptroller General David so hard for are but a small fraction of that. ing. Walker calls this tsunami powerful enough Because mandatory programs get funded The Commission will look beyond the Belt- to ‘‘swamp our ship of state.’’ first, we will have to fight harder for fewer way for solutions, holding at least 12 town This is particularly relevant as we consider dollars to fund this important initiative. meetings—one in each of the nation’s Fed- the state of our nation’s competitiveness. If Without mandatory spending reform, we eral Reserve districts—over the span of 12 we can’t pay for our current obligations, how simply won’t be able to fund the necessary months in order to hear directly from the can we begin to afford the resources we will increases in competitiveness programs with- American people. need to compete globally in the twentyfirst out significant cuts in other discretionary Everything must be on the table—includ- century? programs. ing tax policy.

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00012 Fmt 0626 Sfmt 0634 E:\CR\FM\A08MY8.029 E08MYPT1 wwoods2 on PRODPC68 with REMARKS May 8, 2008 CONGRESSIONAL RECORD — Extensions of Remarks E867 If anyone has another viable plan to ad- In addition to her professional work, Steph- by 2016, the current crop of professionals dress our entitlement tsunami, we are anx- anie donates much of her time and talent to have shouldered, and will continue to shoul- ious to hear it. But it has to be able to pass. several professional and community organiza- der, the extra work and hours of properly car- Doing nothing is not acceptable. And just like the base-closing process, the tions. She is involved with the National Asso- ing for our elderly and infirmed. For this, and SAFE Commission Act would require and up- ciation of Business Journalists, the National so much more, nurses deserve a generous or-down vote on the Commission’s proposal— Association of Hispanic Journalists, and the helping of our gratitude and the highest of rev- ensuring that Congress finally considered a International Studies Association. Additionally, erence, not just this next week dubbed ‘‘Na- comprehensive solution to this great chal- she recently served on a panel of the 2007 tional Nurses Week,’’ but all year round. lenge. Women of Color Conference. On the local We can show them that we care by paying So far, Rep. Cooper and I have reached out level, Stephanie is a supporter of Adoption Ex- tribute to those nurses serving in Iraq and Af- to every Member of Congress, the President and his potential successors, Fortune 500 change, Henderson Libraries, and Henderson ghanistan—by bringing them and our heroic leaders, small business owners, think tanks, Parks and Recreation. troops home after a job well done. We can thought leaders, and the religious commu- Madam Speaker, I am proud to honor show them that we care by outfitting them with nity. Stephanie Tavares for her achievements in a health care system that is affordable, uni- And today I’m reaching out to you—our journalism for small businesses within the Las versal, and driven less by profits and more by science, technology, engineering, manufac- Vegas community. I would also like to con- compassion and humanitarianism. We can turing and workforce development leaders. gratulate her on receiving the Small Business show them that we care by investing in the re- I ask for your support in this endeavor so that it may put us back on track financially, Journalist of the Year at the 2008 Small Busi- search, techniques, and technologies that just as the ‘‘Gathering Storm’’ report ness Awards. promise to one day cure age-old, debilitating spurred us to fix our nation’s education and f diseases that plague millions—and not play competitiveness programs. politics when our citizens’ livelihoods are at William Wilberforce, who, in his first TRIBUTE TO AMANDA VEEN stake. speech in the British Parliament in 1789 de- The Harlem Hospital Center serves my dis- scribing the evils of the slave trade, con- HON. TOM LATHAM trict as a powerful force for social progress, cluded by telling his colleagues, ‘‘Having heard all this you may choose to OF IOWA catering to the community’s health needs and look the other way, but you can never again IN THE HOUSE OF REPRESENTATIVES training the next generation’s minority and fe- male physicians. The nurses there fight the say that you did not know.’’ Thursday, May 8, 2008 Not one of us can say we do not know good fight, day in and day out, not often about the nation’s long-term financial out- Mr. LATHAM. Madam Speaker, I rise today enough rewarded with the credit that they de- look. to recognize Cadet Lieutenant Amanda Veen serve. I am honored to praise their achieve- We know, and it’s on our watch to fix. of Perry, Iowa for being named Cadet of the ments—and those of their colleagues all This must also be a part of this year’s pres- Year by the Iowa Wing of the Civil Air Patrol. idential debate. We need to make the next across America—this week. president understand that entitlement re- Amanda, who is currently a sophomore at f form. Liberty Home School, also received the Billy And the media needs to do a better job cov- Mitchell Award and served as Color Guard VIETNAM HUMAN RIGHTS ACT 2007 ering it. We should insist on a presidential Commander in the North Central Region debate devoted to these issues. Cadet Competition last year for the Des HON. LORETTA SANCHEZ I am confident that, with your support, we Moines Metro Cadet Squadron. OF CALIFORNIA will succeed and it may well lead to a renais- The Cadet of the Year award honors sance in America—a renaissance in innova- IN THE HOUSE OF REPRESENTATIVES Amanda’s dedication and commitment during tion, education, and economic development. Thursday, May 8, 2008 her participation in the Civil Air Patrol’s Cadet f Programs. The Iowa Wing of the Civil Air Pa- Ms. LORETTA SANCHEZ of California. PAYING TRIBUTE TO STEPHANIE trol, which is the official auxiliary of the U.S. Madam Speaker, as you may know, I have the TAVARES Air Force, is a nonprofit organization with privilege of representing the Vietnamese com- more than 390 officers and cadets in Iowa. munity in Orange County—one of the largest HON. JON C. PORTER The Civil Air Patrol’s Cadet Programs provide outside of Vietnam. Human rights is an important issue to me OF NEVADA youth opportunities to reach their full potential and my Vietnamese constituents. Today, I IN THE HOUSE OF REPRESENTATIVES as they study four subject areas: aerospace education, physical training, leadership, and want to highlight the importance of continuing Thursday, May 8, 2008 moral and ethical values. to work for freedom and democracy in Viet- Mr. PORTER. Madam Speaker, it is my dis- I know that my colleagues in the U.S. Con- nam, and to commend the advocates that are tinct pleasure to rise today to honor Stephanie gress join me in commending Cadet Lieuten- committed to this cause. Tavares by entering her name in the CON- ant Amanda Veen for her leadership and dedi- This year marks the 14th anniversary of the GRESSIONAL RECORD, the official record of the cation to representing the Iowa Civil Air Patrol. House-Senate Joint Resolution designating proceedings and debates of the United States I consider it an honor to represent Amanda May 11th as Vietnam Human Rights Day. As Congress since 1873. Today I pay tribute to and her family in Congress, and I wish her the we prepare to observe Vietnam Human Rights Stephanie Tavares, reporter for In Business best in her future endeavors. Day, it is clear that the struggle is far from Las Vegas for her achievements in reporting f over. on various small business legal issues within Human rights violations in Vietnam have the Southern Nevada community. COMMENDING THE HARD WORK OF only gotten worse since Vietnam was granted Stephanie grew up in a small town that did OUR NATION’S NURSES ON THIS, Permanent Normal Trade Relations (PNTR) not have access to many big-city newspapers, NATIONAL NURSES WEEK status, removed from the State Department’s but while she was still in high school, she list of Countries of Particular Concern, added strongly identified with a local television news HON. CHARLES B. RANGEL to the World Trade Organization (WTO) and anchor inspiring her to pursue a career in jour- OF NEW YORK allowed to be a non-permanent member of the nalism. IN THE HOUSE OF REPRESENTATIVES United Nations Security Council. She worked as a news clerk for her college In my eyes, these policies, endorsed by the newspaper, which helped to launch her love Thursday, May 8, 2008 Bush Administration, have been rewards for a for writing, editing, and the news. For the past Mr. RANGEL. Madam Speaker, I rise today government that has made no real effort to im- three years, Stephanie has reported on small to applaud the incredible efforts our nurses prove its human rights record. business issues for In Business Las Vegas. pour into their grueling workdays, carrying out The Government of Vietnam claimed that it She is credited with not only covering busi- their duties to the great benefit of this coun- had improved its human rights record, and ness issues, but with being an advocate for try’s health and medical care system. To- that it would continue to make progress on the small business as well, learning different per- gether, nurses represent the largest share of issue of human rights. However, their record spectives, policies, and the needs of the small health care professionals in the field, boasting speaks for itself. business community. She also reports on utili- numbers eclipsing 2,500,000—but that’s be- The Government of Vietnam has harassed, ties and environmental issues for the maga- coming increasingly not enough. Facing a arrested and sentenced democracy advocates zine. shortage that demands a million new nurses many of whom were not afforded a trial. That

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00013 Fmt 0626 Sfmt 9920 E:\CR\FM\A08MY8.030 E08MYPT1 wwoods2 on PRODPC68 with REMARKS E868 CONGRESSIONAL RECORD — Extensions of Remarks May 8, 2008 list includes: Father Nguyen Van Ly, Nguyen went from room to room in the 100 year-old In September 1994, the ‘‘Contract of the Phong, Nguyen Binh Thanh, Nguyen Bac main building, ensuring that students, faculty Century’’ was signed between American and Truyen, and Nguyen Van Dai, lawyer—just to and staff were safely evacuated. Because of Western companies and Azerbaijan. The Con- name a few. But the list doesn’t stop there. their courageous efforts, not one life was lost tract was designed to allow Azerbaijan to de- Since 2006 the Government of Vietnam has and amazingly there were no serious injuries velop its energy resources in order to diversify detained six American citizens—all falsely ac- reported. While the fire was ripping through Western energy supplies. The two early oil cused and harassed. One of those cases in- the third and fourth floors, firefighters worked pipelines were from Azerbaijan through Russia cludes Dr. Nguyen Quoc Quan who has been quickly to save the University’s mainframe to the port of Novorossiysk on the Black Sea incarcerated in Vietnam since November for computer and important records so that these and from Azerbaijan through Georgia to promoting peace and non-violence. items were not damaged by the thousands of Supsa. But his real dream was the Baku- Since his detainment in Vietnam, I have gallons of water being used to fight the fire. Tbilisi-Ceyhan pipeline, which, despite strong called for his immediate release and authored More than 100 firefighters fought late into opposition, was supported by both the Clinton letters to both Secretary Rice and Vietnamese the night and were on hand to make sure that and Bush Administrations, and is now pump- Prime Minister Nguyen Tan Dung urging his the Our Lady of the Lake University commu- ing one million barrels of oil a day. safe return to the United States. I have met nity was safe. I ask my colleagues to join me President Heydar Aliyev always valued his with his wife Mai Huong and have seen the in commending the efforts of the San Antonio country’s relations with the United States. The anguish this injustice has caused their fam- Fire Department and offering support for the United States was one of the first countries to ily—a family that has not been able to commu- entire Our Lady of the Lake University com- recognize Azerbaijan’s independence. His goal nicate with their loved one since last year. munity as they recover from this devastating was to elevate relations to a strategic level, Dr. Nguyen Quan now awaits a trial sched- fire. and we can say that he has been successful. uled for May 13 along with fellow democracy f After we experienced the worst terrorist at- activists: Mr. Nguyen The Vu and Mr. Somsak tack on United States soil on September 11, Khunmi. I call on the Government of Vietnam RECOGNIZING NU HIGH SCHOOL President Heydar Aliyev was one of the first in to afford Dr. Quan and the other democracy BOYS BASKETBALL TEAM the world to offer the unconditional support of advocates a fair and just trial. It is my greatest his country in the fight against terrorism. Soon hope that his trial will be handled in a fair HON. BRUCE L. BRALEY after, Azerbaijan had troops in Afghanistan manner, unlike that of Father Ly, who was OF IOWA and was the first country with a predominantly gagged, unable to speak at his own defense, IN THE HOUSE OF REPRESENTATIVES Muslim population to send troops to Iraq. and sentenced to 8 years in prison. Thursday, May 8, 2008 President Aliyev was instrumental in shap- So today I join the Vietnamese community ing Azerbaijan’s Western-leaning policies and in commemorating Vietnam Human Rights Mr. BRALEY of Iowa. Madam Speaker, I relationship building practices. Azerbaijan Day and urging support for the continuing ad- rise today to recognize the outstanding results joined NATO’s Partnership for Peace Program vocacy efforts that are fighting for the most achieved by the NU High School Boys Basket- in 1994. It is also a 2001 charter member of basic freedoms that we in the U.S. enjoy— ball team at the Iowa State Boys Basketball the GUAM Organization for Democracy and freedom of speech, freedom of the press, free- tournament in Des Moines this past winter. Economic Development which works to pro- dom of assembly, freedom of religion. These The last quarter would see five lead mote democratic values, ensure stable devel- freedoms do not exist in Vietnam. changes with the last lead change coming with opment, enhance international and regional I will continue working with my colleagues in two minutes left in the game. Travis Ellerbroek security, and step up European integration. the Congressional Caucus on Vietnam and the hit an NBA range three-pointer to take the Azerbaijan has consistently integrated into the Congressional Human Rights Caucus to ad- lead for the final time and win the class 1A Euro-Atlantic security architecture, further vance human rights for the people of Vietnam. State boys basketball title. deepening U.S.-Azerbaijani military to military And as a cosponsor of H.R. 3096, the Viet- I congratulate the Panthers for winning the cooperation. nam Human Rights Act of 2007, I will continue Iowa Class 1A State championship. This excit- Following his passing in 2003, Azerbaijan to advocate for its passage with my col- ing victory is the first for Coach Paul Elser has continued its course first established by leagues in the Senate. I am pleased that Sen- who wrapped up his first season with the Pan- President Heydar Aliyev toward the greater ator BARBARA BOXER held a hearing on this thers. democratic and economic development. Due legislation last March. Madam Speaker, I am extremely proud of to his efforts and the will and character of the It is my hope that H.R. 3096 will be brought the accomplishments of the Panther boys bas- people of Azerbaijan, there is no doubt about to the Senate floor for a vote. This would be ketball team, both on and off court, and I am the viability of this nation or about its capability a clear message that Congress wants to see proud to serve them in Congress. as an effective leader in the region. the Government of Vietnam get serious about f The United States looks forward to fur- improving human rights conditions 85TH JUBILEE OF THE AZER- thering its partnership with Azerbaijan in the f BAIJANI PRESIDENT HEYDAR region and on global issues of mutual con- cern. CONGRESSIONAL TRIBUTE HON- ALIYEV f ORING THE SAN ANTONIO FIRE DEPARTMENT HON. VIRGINIA FOXX RECOGNIZING THE ACCOMPLISH- OF NORTH CAROLINA MENTS OF LT. EVAN SCAGGS HON. CHARLES A. GONZALEZ IN THE HOUSE OF REPRESENTATIVES OF TEXAS Thursday, May 8, 2008 HON. TOM COLE OF OKLAHOMA IN THE HOUSE OF REPRESENTATIVES Ms. FOXX. Madam Speaker, on May 10, we IN THE HOUSE OF REPRESENTATIVES Thursday, May 8, 2008 commemorate the 85th Jubilee of the late Az- Mr. GONZALEZ. Madam Speaker, I rise erbaijani President Heydar Aliyev. Heydar Thursday, May 8, 2008 today to commend Fire Chief Charles N. Hood Aliyev was a strong leader at a critical time. Mr. COLE of Oklahoma. Madam Speaker, it and the brave men and women of the San An- When political strife and economic uncertainty is my privilege today to rise in recognition of tonio Fire Department. On Tuesday, May 7th, engulfed the region, he emerged in 1993 as an outstanding young naval aviator from my a four-alarm fire swept through the historic President of the Republic of Azerbaijan. district, Lt. Evan Scaggs of Sulphur, Okla- Main Building at Our Lady of the Lake Univer- He steered his country through regional homa. As a dedicated member of the U.S. sity in San Antonio, Texas. power struggles and global changes. He nego- Navy, Lt. Scaggs was an integral part of one Our Lady of the Lake University was found- tiated a cease-fire in the war with Armenia. He of the highest elevation rescue missions ever ed in 1895 and was the first San Antonio insti- deepened Azerbaijan’s relationship with the to occur in Iraq. Honored by his hometown tution of higher education to receive regional United States, Turkey, Israel, as well as coun- newspaper, the Sulphur Times-Democrat, I felt accreditation. A beacon of hope and oppor- tries in Western Europe. He also cultivated the that his story was so compelling and his com- tunity, Our Lady of the Lake has provided nation’s relations with multilateral organiza- mitment so sincere, that telling his story before countless minority and underprivileged stu- tions such as the United Nations, NATO, the you today would be but one small way of hon- dents the means to a higher education. Council of Europe, and the OSCE. He oring such an outstanding young man. In their valiant efforts to fight this destructive oversaw economic reforms that opened the Madam Speaker, when a group of American fire, San Antonio Fire Department firefighters door for foreign investment. schoolteachers with Teachers Without Borders

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00014 Fmt 0626 Sfmt 9920 E:\CR\FM\A08MY8.032 E08MYPT1 wwoods2 on PRODPC68 with REMARKS May 8, 2008 CONGRESSIONAL RECORD — Extensions of Remarks E869 disappeared from a hiking trip, Lt. Scaggs, a so much to care for their communities. I urge For rollcall No. 261—Motion to adjourn—I 64th ERQS pilot, was called in as the flight my colleagues to join me in mourning the loss would have voted ‘‘yes’’; lead for the rescue. He and the rest of the of a great American and in expressing heart- For rollcall No. 262—Motion to adjourn—I crew prepared themselves in just 2 hours to felt gratitude and sincere appreciation for the would have voted ‘‘yes’’; go in search of the hikers. Traveling to the as- service of Terry DeVore. For rollcall No. 263—To suspend the rules sumed location of the hikers, approximately f and agree to H. Res. 1168—I would have 120 miles north of Balad Air Base, the rescue voted ‘‘yes’’; crew was able to locate the hikers on the side PERSONAL EXPLANATION For rollcall No. 264—To table the motion to of a mountain sitting at an 80 degree angle. reconsider H. Res. 1168—I would have voted The teachers were stranded at an altitude of HON. WALTER B. JONES ‘‘no’’; 4,700 feet where they were surrounded by OF NORTH CAROLINA For rollcall No. 265—To suspend the rules treacherous terrain. Using careful maneu- IN THE HOUSE OF REPRESENTATIVES and agree to H. Res. 1155—I would have vering, the helicopter was able to fly close Thursday, May 8, 2008 voted ‘‘yes’’; enough to allow the rescuers to retrieve the For rollcall No. 266—To table the motion to Mr. JONES of North Carolina. Madam hikers safely. Their health was immediately reconsider H. Res. 1155—I would have voted Speaker, I was in my district voting in the checked and they were found to be in good ‘‘no’’; North Carolina primary election and I missed condition despite being dehydrated and cold. If For rollcall No. 267—Motion to adjourn—I rollcall votes on May 5th, 6th and 7th. I ask it were not for the actions of Lt. Scaggs and would have voted ‘‘yes’’; the rest of the rescue team, the two lost that the RECORD show that had I been For rollcall No. 268—To approve the jour- teachers would not have likely survived an- present: nal—I would have voted ‘‘no.’’ For rollcall No. 240—To suspend the rules other night in the harsh conditions. f Lt. Scaggs and all members of America’s and agree to H. Res. 952—I would have voted Armed Forces deserve appreciation and re- ‘‘yes’’; ON THE BIRTH OF COOPER spect from those they defend. That’s why I am For rollcall No. 241—To table the motion to ADDISON TAYLOR proud to stand before you today to honor Lt. reconsider H. Res. 952—I would have voted Evan Scaggs from Sulphur, Oklahoma and ‘‘no’’; HON. JOE WILSON thank him for his bravery and his servIce. For rollcall No. 242—To suspend the rules and agree to H. Res. 1011, as amended—I OF SOUTH CAROLINA f would have voted ‘‘yes’’; IN THE HOUSE OF REPRESENTATIVES TRIBUTE TO TERRY DEVORE For rollcall No. 243—To table the motion to Thursday, May 8, 2008 reconsider H. Res. 1011—I would have voted Mr. WILSON of South Carolina. Madam HON. MARILYN N. MUSGRAVE ‘‘no’’; Speaker, I am happy to congratulate my long- OF COLORADO For rollcall No. 244—Motion to adjourn—I time friend and former law partner Heath Pres- IN THE HOUSE OF REPRESENTATIVES would have voted ‘‘no’’; ton Taylor and his wife Julie Hartley Taylor of For rollcall No. 245—Motion to adjourn—I Thursday, May 8, 2008 Sandy Run, South Carolina, on the birth of would have voted ‘‘yes’’; their new baby boy. Cooper Addison Taylor Mrs. MUSGRAVE. Madam Speaker, I rise For rollcall No. 246—Motion to adjourn—I was born on April 17, 2008, weighing 6 today to pay tribute to the heroism and self would have voted ‘‘no’’; sacrifice of Olney Springs Fire Chief Terry For rollcall No. 247—Motion to instruct con- pounds and 5 ounces. Addison is an old fam- DeVore, 31, who died in the line of duty on ferees on H. R. 2419—I would have voted ily name. Cooper joins an older brother, An- Tuesday, April 15, 2008, while driving to the ‘‘yes’’; drew Preston Taylor. He has been born into a scene of a brush fire threatening his commu- For rollcall No. 248—To table the motion to loving home where he will be raised by par- nity. reconsider the vote on the motion to instruct ents who are devoted to his well-being and When Terry heard the distress call Tuesday conferees on H.R. 2419—I would have voted bright future. afternoon from nearby Ordway, Colorado, he ‘‘no’’; I am so excited for this new addition to the jumped in his fire engine with fellow volunteer For rollcall No. 249—To suspend the rules Taylor family. I want to congratulate Cooper’s fireman John Schwartz to try to help. A mas- and pass H.R. 3658—I would have voted grandparents George Preston Taylor and Judy sive wild fire was burning across the prairie ‘‘yes’’; Wilkes Taylor of Sandy Run, South Carolina, and the smoke was so thick that Terry and For rollcall No. 250—To table the motion to and Forrest Andrew Hartley, III, and Barbara John could not see the bridge burned out in reconsider H.R. 3658—I would have voted Bickford Hartley of Atlanta, Georgia. Great front of them. Terry’s father Bruce, a fire de- ‘‘no’’; grandmother is Gladys Taylor of Sandy Run, partment volunteer for 36 years, was right be- For rollcall No. 251—To suspend the rules South Carolina. Among the happy aunts and hind them when he noticed their taillights dis- and agree to H. Con. Res. 317, as amend- uncles are my former law partner Henry H. appear. Bruce and the other firefighters ed—I would have voted ‘‘yes’’; Taylor and his wife Molly D. Taylor of West stopped and tried to fight the inferno in front For rollcall No. 252—To table the motion to Columbia, South Carolina. of them, but it was a hopeless fight. reconsider H. Con. Res. 317—I would have f Terry first started helping his father at the voted ‘‘no’’; RECOGNIZING CALIFORNIA ASSEM- fire department when he was 13. He loved his For rollcall No. 253—To suspend the rules BLY SPEAKER-ELECT KAREN town and he loved helping people. Although and agree to H. Res. 1109, as amended—I BASS he grew up in Olney Springs, he left for a time would have voted ‘‘yes’’; to work at Rocky Mountain Steel Mills in For rollcall No. 254—To table the motion to Pueblo, Colorado, before returning home to reconsider H. Res. 1109—I would have voted HON. ZOE LOFGREN work for the Crowley Correctional Facility. He ‘‘no’’; OF CALIFORNIA then moved to the Arkansas Valley Correc- For rollcall No. 255—Motion to adjourn—I IN THE HOUSE OF REPRESENTATIVES tional Facility where he became a sergeant. would have voted ‘‘yes’’; Thursday, May 8, 2008 Terry also volunteered at the Olney Springs For rollcall No. 256—To suspend the rules Fire Department that serves the town’s 350 and pass S. 2929, as amended—I would have Ms. ZOE LOFGREN of California. Madam residents and served as Fire Chief for the past voted ‘‘yes’’; Speaker, as chair of the California Democratic year. For rollcall No. 257—To table the motion to Congressional Delegation, I rise today to rec- Terry left behind wife Jennifer, four children reconsider S. 2929—I would have voted ‘‘no’’; ognize a historic milestone in California his- between the ages of 4 and 10, Ryan, Breann, For rollcall No. 258—Motion to instruct con- tory. Next week, on Tuesday, May 13, 2008, Katy, and Jeremiah, and his parents Bruce ferees on H.R. 2419—I would have voted the Honorable Karen Bass will be seated as and Deborah DeVore. ‘‘He was never afraid of ‘‘no’’; California’s first African American woman anything; there was no sense of fear,’’ his For rollcall No. 259—To table the motion to Speaker of the State Assembly. I would also mother Deborah told a newspaper. ‘‘He loved reconsider the vote on the motion to instruct point out, Madam Speaker, that this is the first helping people. He was always making jokes, conferees on H.R. 2419—I would have voted time that an African American woman has pulling pranks on people. He just loved life.’’ ‘‘no’’; held this post in any State. Madam Speaker, I am honored to represent For rollcall No. 260—Motion to adjourn—I Speaker-elect Bass was first elected to the Terry and other men and women who sacrifice would have voted ‘‘yes’’; State Assembly in 2004 to represent the 47th

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00015 Fmt 0626 Sfmt 9920 E:\CR\FM\A08MY8.036 E08MYPT1 wwoods2 on PRODPC68 with REMARKS E870 CONGRESSIONAL RECORD — Extensions of Remarks May 8, 2008 Assembly District which covers parts of Los poses of the garden as set forth in the 1964 dangered species, and cultural knowledge; Angeles. Assemblywoman Bass’s leadership charter was to: establish, develop, operate and addressing invasive species and restora- skills were recognized early on, as she was and maintain an education and scientific cen- tion ecology issues. Its scientists are involved selected in her first term to the influential posi- ter with libraries, herbaria, laboratories and in a number of international science programs tion of Assembly Majority Whip. In her second museums appropriate and necessary for en- focused primarily on the Pacific Islands. term, Assemblywoman Bass was elevated to couraging and conducting research in basic Some 90 percent of all biodiversity exists in the powerful post of Assembly Majority Lead- and applied tropical botany; foster and encour- the tropics. Hawaii, the only U.S. State in the er. During her first two terms in the State As- age fundamental research with respect to trop- tropics, is home to more endangered plants sembly, Speaker-elect Bass had 17 of her bills ical plant life and to encourage research and and animals than any other State. This is due signed into law by Governor Schwarzenegger study of the uses of tropical flora in agri- to the high percentage of unique, endemic on issues ranging from foster care reform to culture, forestry, horticulture, medicine and species that evolved because of Hawaii’s geo- children’s health insurance. other sciences; disseminate through publica- graphic isolation and their susceptibility to the Before entering elected office, Speaker-elect tions and other media the knowledge acquired impacts of aggressive nonnative species and Bass founded and ran the Community Coali- at the gardens relative to basic and applied diseases. However, over the past 30 years, tion, a community based nonprofit organization tropical botany; collect and cultivate tropical the National Tropical Botanical Garden has re- in South Los Angeles. As Executive Director, flora of every nature and origin and to pre- discovered some two dozen species that were she built the Community Coalition into an im- serve for the people of the United States spe- thought to be extinct and discovered 30 new portant social justice organization that empow- cies of tropical plant life threatened with ex- species previously unknown to science. Many ered residents and helped clean up neighbor- tinction; and provide a beneficial facility that of the species that the Garden is working to hoods ravaged by the crack cocaine epidemic. will contribute to the education, instruction, preserve and protect hold promise for the fu- Today, the organization is considered a model and recreation of the people of the United ture development of drugs to cure diseases. of community engagement throughout the States. The Garden’s research teams conduct country. Although its charter does not include author- ethnobotanical research to study and docu- Speaker-elect Bass grew up in the Venice/ ization of appropriations, the National Tropical ment how indigenous people used plants. Fairfax area of Los Angeles, California. She is Botanical Garden has endeavored, with nota- Ethnobotanical fieldwork is augmented by lab- the daughter of DeWitt and Wilhelmina Bass. ble success, to live up to the goals set forth oratory studies using state-of-the-art tech- Her father worked as a mail carrier and her in its charter. Its work has been almost exclu- nology to determine a plant’s molecular com- mother was a full-time stay-at-home mom who sively supported by private donations from in- position and medicinal properties. This re- raised four children. Speaker-elect Bass is a dividuals and foundations. Operating support search has yielded potential new anti-HIV graduate of Hamilton High School, received of nearly $100 million has been provided medication and provided clues to the genesis her Bachelor of Arts degree in Health through donations in the 43 years of the Gar- of ALS and Parkinson’s disease. Sciences from Cal State Dominguez Hills and den’s existence; assets valued at $50 million, While the National Tropical Botanical Gar- den has achieved much over the past four has a Physician Assistant Certificate from the including endowments, trusts, land, buildings, decades, there is so much work that is need- University of Southern California School of and rare books are owned by the Garden. ed. Although the primary support for the Gar- Medicine. During its 43 years, the Garden has received Within a matter of a few short years, Speak- less than $5 million in federal grants and con- den will always be private funding, it is fitting er-elect Bass went from being a community tracts. The National Tropical Botanical Garden that we have an opportunity to appropriate organizer to an elected official, and beginning files an audit report with the Senate each year funds to support this institution in achieving its next week, will be one of the most influential by an independent auditing firm in accordance Congressional Charter. Our bill authorizes an- legislative leaders in the largest State in the with the terms of its Congressional Charter. nual appropriations up to $500,000 for oper- country. Her rapid ascension is a testament to The National Tropical Botanical Garden ation and maintenance expenses. The 2008 not only her leadership skills, but also to her manages five tropical botanical gardens and budget for the Garden is $9 million, 95 percent dedication to the people that she serves. three preserves, which comprise 1,800 acres. of which will be provided from private sources. I invite all of my colleagues to come to Ha- On behalf of all 34 members of the Cali- Four of the gardens and the three preserves waii or Florida to visit the National Tropical fornia Democratic Congressional Delegation, I are in Hawaii’s second Congressional District, Botanical Garden and to observe firsthand the congratulate Speaker-elect Bass on her his- which I represent. One of the gardens is lo- important conservation and research activities toric election and look forward to working with cated in Congresswoman ROS-LEHTINEN’s dis- taking place. I urge my colleagues to join me the new Assembly Speaker as we move for- trict in Florida. More than a collection of beau- in supporting this bill. ward together to address the issues facing the tiful and rare plants, the National Tropical Bo- State of California. tanical Garden also has important research f f and educational facilities. These include the A TRIBUTE TO PHILMORE Loy McCandless Marks Botanical Library, the GRAHAM INTRODUCTING A BILL TO AU- largest and most important botanical/horti- THORIZE APPROPRIATIONS FOR cultural library collection in Hawaii, and a HON. GEORGE MILLER THE NATIONAL TROPICAL BO- major regional herbarium used by scientists TANICAL GARDEN OF CALIFORNIA throughout the world. IN THE HOUSE OF REPRESENTATIVES The Garden conducts world-class, state-of- HON. MAZIE K. HIRONO the-art tropical biodiversity research and con- Thursday, May 8, 2008 OF HAWAII servation, which distinguishes it from display- Mr. GEORGE MILLER of California. Madam IN THE HOUSE OF REPRESENTATIVES oriented gardens and parks in the United Speaker, I rise today and invite my colleagues States and abroad. The Garden has extensive to join me in honoring Philmore Graham, of Thursday, May 8, 2008 national and international alliances with botan- Vallejo, California, for his many years of serv- Ms. HIRONO. Madam Speaker, I rise today ical gardens, universities, and research cen- ice to our Nation and our community. Mr. to introduce a bill authorizing appropriations ters. It has a visiting scientist program and the Graham has provided remarkable leadership for the National Tropical Botanical Garden. library is used by a wide array of scientists, in- to our young people during his lifetime, espe- This is a companion to S. 2220, which was in- cluding federal researchers. However, these cially by founding and then expanding the troduced by Senator DANIEL K. AKAKA and co- facilities badly need to be updated. The Gar- Continentals of Omega Boys and Girls Club. sponsored by Senators DANIEL K. INOUYE, BILL den has a plan to construct a new Botanical Philmore Graham, the ninth of ten siblings, NELSON, and MEL MARTINEZ. S. 2220 was ap- Research Center. Such a Center would bring was born August 29, 1938, to now deceased proved by the Senate Energy and Natural Re- the Garden’s significant botanical, research, parents, John Archie and Louise Graham, in sources Committee on April 10, 2008. I am and rare book libraries and its unique and im- Laurinburg, North Carolina. He attended joined in introducing this bill by Congressman portant herbarium collections together under Laurinburg and Lincoln Heights High Schools NEIL ABERCROMBIE of Hawaii and Congress- one roof, along with research laboratories, of- and was a well-rounded student with a 3.9 woman ILEANA ROS-LEHTINEN of Florida. fices, and dedicated space for students and grade point average. He was president of his The Pacific Tropical Botanical Garden was visiting researchers. class from eighth grade through the comple- chartered by Congress in 1964; it was re- The Garden’s research focuses on field re- tion of high school, was captain of the football named the National Tropical Botanical Garden search, including discovering new species; team, played basketball and was principal for in 1988 through an Act of Congress. The pur- documenting and conserving ecosystems, en- a day.

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00016 Fmt 0626 Sfmt 9920 E:\CR\FM\A08MY8.040 E08MYPT1 wwoods2 on PRODPC68 with REMARKS May 8, 2008 CONGRESSIONAL RECORD — Extensions of Remarks E871 Philmore’s father died when he was age 4 ganization is considered one of the top boys Gerry has championed the lobster industry and his siblings and he missed the first 6 and girls clubs in the country. The club has both on the water and on the dock. He helped weeks of school to pick cotton and help their produced a number of doctors, lawyers, busi- to secure a $340,000 grant from the Land for mother buy food and clothing for school. His nessmen, educators, engineers, skilled work- Maine’s Future Fund to facilitate building and hatred of picking cotton inspired him to do well ers, and many other outstanding citizens. Aca- expanding a fishing pier in Port Clyde for in school because their mother would remind demics is the major focus of the club and lobstermen and groundfishermen as well as them that their choice was either go to school more than 70 percent of the membership two bait companies. The grant is part of a or continue to pick cotton. achieve school honor rolls each year. More larger initiative to protect working waterfront Philmore graduated from Tennessee State than 200 members have attended colleges spaces along Maine’s coast. Working water- University with bachelor of science degrees in and trade schools across the country and fronts are rapidly disappearing in the State of mechanical and metallurgical engineering in Philmore and members have received more Maine and these resources are crucial to pre- May of 1962. He has done graduate studies in than 63 awards for outstanding community serve both fisheries and communities. material science at UCLA and UC Berkeley. contributions during the club’s existence. I have had the privilege of meeting Gerry He was commissioned as an officer in the When he retired from Mare Island Naval Ship- and seeing first hand his dedication to ensur- United States Air Force through the Univer- yard, Philmore devoted himself completely to ing that future generations of Maine fishermen sity’s ROTC program. While in the Air Force, the club, growing it into the valuable asset it will have both lobsters to harvest, and a place he served as a project engineer for the Titan is today. to land their catch. I admire Gerry and the Intercontinental Ballistic Missile Program at Through the years Philmore was nominated men and women who work tirelessly to make Norton Air Force Base, San Bernardino, Cali- for a multitude of awards and is the proud re- certain that the fishing industry and the com- fornia, from 1962–1965. During his tour of cipient of the NAACP Outstanding Citizen of munities they support are preserved for future duty here, he worked in the Materials Engi- the Year, Good Neighbor Award, Salute to generations. I echo Gerry’s words that ‘‘what neering Department and developed a number America Lifetime Merit Award, Profile of Excel- we leave for the next generation is important.’’ of material specifications for missile compo- lence Award, Martin Luther King, Jr., Humani- Small fishing communities across the country nents. He received a Superior Accomplish- tarian Award, ‘‘Who’s Who’’ among Black are beginning to take a leading role in the ment Award for completing a record number of Americans, Outstanding Young Men of Amer- management of the fishery resources on projects updating the Titan and Atlas Missile ica and several selections as Omega Man of which they all depend, and Gerry Cushman is programs. the year and Citizen of the Year for the one of the leaders in this effort. I would like to Philmore also worked in the community Omega Psi Phi Fraternity, Inc. once again thank Gerry for his hard work and while at Norton Air Force Base. In 1964, he Philmore has always been active with I wish him the best in all his future endeavors. Friendship Baptist Church in Vallejo, where he spearheaded the project to establish a new f chapter of the Omega Psi Phi Fraternity, Inc., served 10 years as superintendent of Sunday Pi Rho Chapter, in San Bernardino, California. Church School and has taught Sunday School TRIBUTE TO THE CITY OF The chapter offered scholarships and social- for 37 years, including his years in high NORCO’S 85TH BIRTHDAY economic programs to the community under school. his leadership. He was selected as ‘‘Chapter He was married to the late Jamella Nelson HON. KEN CALVERT Graham and they have two children, daughter, and District Omega man of the Year.’’ OF CALIFORNIA Deidre LeNore Graham and son, Montoya Philmore received an honorable discharge IN THE HOUSE OF REPRESENTATIVES from the U.S. Air Force in August 1965 and Reed, both graduates of Tennessee State Uni- Thursday, May 8, 2008 accepted a position with Mare Island Naval versity. Deidre obtained degrees in English Shipyard in Vallejo, California, in October and criminal justice and Montoya’ earned a BS Mr. CALVERT. Mr. Speaker, I rise today to 1965, where he directed the Foam Salvage degree in biology and has done graduate honor and pay tribute to an exceptional town Vessels Research and Development Program. study at TSU in animal science. in my congressional district. The town of He received a Superior Accomplishment Madam Speaker, because of Mr. Graham’s Norco, California, was dedicated on May 13, Award for developing an economical method devotion to his family, his community, and his 1923. Founded by a dynamic entrepreneur, of testing the flotation material in the labora- country, I am delighted to have this oppor- Rex B. Clark, and funded by his wife Grace tory rather than the costly ocean testing. tunity to recognize his tireless efforts and ask Scripps Clark, daughter of powerful news- In 1972, Philmore was promoted to tech- all Members of the House to join me in wish- paper mogul James Scripps. This 15-square- nical support branch head of the Nuclear In- ing him well. mile community of Norco began as a Cali- spection Division of Mare Island Nuclear Sub- f fornia agricultural powerhouse and today is marine Overhaul Program. He received a third RECOGNIZING GERRY CUSHMAN known as ‘‘Horse Town U.S.A.’’ Clark’s origi- Superior Accomplishment Award for Out- nal concept was to develop a community of standing Supervision of Training, Technical ‘‘go-getters’’ whereby a man could live and Support and Records of Naval Nuclear Work. HON. THOMAS H. ALLEN feed his family off the land. With a town motto OF MAINE From 1979 to 1983, Graham worked as an in- of ‘‘Acres of Neighbors,’’ the dream was wildly IN THE HOUSE OF REPRESENTATIVES ternal auditor for the Nuclear Reactor Division successful as Norco brand tomatoes, grapes, of the Nuclear Engineering Department and Thursday, May 8, 2008 berries, lettuce, chickens, and other produce was assigned as the Director of Training for Mr. ALLEN. Madam Speaker, it is my dis- were sent all over the United States. the department and supervised the training of tinct pleasure to recognize the hard work and A chance discovery of hot mineral water in some 250 engineers and technicians. In 1986, achievements of Gerry Cushman, a fisherman 1926 led Rex Clark to yet another dream: The he was promoted to Supervisor, Nuclear Engi- from Maine who recently won the prestigious Norconian Resort Supreme—a 700-acre mas- neer and became the first and only African Golden V—Notch award from the Maine terpiece that opened to worldwide acclaim on American supervisor in the Nuclear Engineer- Lobstermen’s Association, an association of February 2, 1929, complete with 60-acre man- ing Department’s history of Mare Island Naval more than 1,200 lobstermen from Eastport to made lake, magnificent golf course, Lake Ca- Shipyard. During his administration, the De- Kittery. This award recognizes a fisherman sino, hotel, spa, separate chauffeurs’ quarters partment received the highest grades to date who has gone above and beyond the call of and the only Southern California AAU Quali- on written exams during an audit from Wash- duty to help preserve the lobster industry. fying outdoor pool until the 1932 Olympic ington, DC, and Philmore was awarded one of Gerry won this award not just for his effort to games. Hollywood flocked to the resort and the highest monetary awards in the history of protect and preserve the lobster industry but stars such as Clark Gable, Norma Shearer, the Nuclear Engineering Department’s incen- for his steadfast dedication to the entire Maine Buster Keaton and Joan Crawford were reg- tive awards program for outstanding perform- commercial fishing industry. ular visitors at what may well have been the ance in upgrading the training program. Gerry Cushman serves on the Board of Di- finest resort of its kind on the west coast. Philmore continued his work in the commu- rectors of the Maine Lobstermen’s Associa- MGM and Fox Studios held company picnics nity by establishing a new chapter of the tion, is a member of the Zone D Lobster on the site as did Disney Studios who held a Omega Psi Phi Fraternity in Vallejo. In 1966, Council, and sits on the State’s Lobster Advi- famous party in 1938 to commemorate the he started the Continentals of Omega Boys sory Council. He also works with the Port success of ‘‘Snow White and the Seven Club with six boys; it has grown to more than Clyde Fishermen’s Co-op and the Port Clyde Dwarfs’’. 500 members and is now called the Continen- Draggermen’s Co-op: a joint working group to On May 20, 1928, the lavish swimming and tals of Omega Boys & Girls Club, Inc. The or- preserve the fishing community of Port Clyde. diving pools opened to greet the 1928 USA

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00017 Fmt 0626 Sfmt 9920 E:\CR\FM\A08MY8.044 E08MYPT1 wwoods2 on PRODPC68 with REMARKS E872 CONGRESSIONAL RECORD — Extensions of Remarks May 8, 2008 Men and Women’s Olympic Swimming and in El Segundo, CA, in the center of my con- vide every opportunity to recruit and maintain Diving Team. Swimmer Cecily Cuhna high- gressional district, SMC has enjoyed 58 con- more nurses, particularly in rural areas like lighted the day with setting a world record. If secutive successful launches. Employing southern West Virginia. Nursing programs in a swimmer or diver participated in the 1928, 6,500 military and civilian personnel nationally, my district such as those at St. Mary’s Hos- 1932 or 1936 Olympics those athletes com- with a whopping $10 billion annual budget— pital, Marshall University, and Mountain State peted, trained or exhibited at the Norconian SMC is a major economic driver in southern University, along with countless others around Resort. California. the State, help to provide a vital service to Many more memorable events and activities The importance of SMC to our national se- their fellow citizens. occurred in the coming years and in the most curity cannot be overstated either. In my many I encourage the people of West Virginia, unlikely of places: the poultry town of Norco. terms in Congress, I’ve always worked closely and the entire Nation, to observe National On December 8, 1941, the depression-weary with the SMC commander, who is much more Nurses Week with appropriate recognition, resort became one of the preeminent naval than a mission manager. LTG Mike Hamel, ceremonies, activities, and programs to dem- hospitals in the Nation and at its peak in 1945 the present commander, retires in July, and I onstrate the importance of nurses to the ev- serviced 5,000 wounded, sick and battle- rise to honor his extraordinary service. eryday lives of patients. They make significant weary sailors and marines. The first patients Mike and I have often talked about Amer- contributions to the lives of so many every day were casualties of the infamous Pearl Harbor ica’s strategy for space. Framing a new, na- without once asking for the recognition they attack and recuperated in the exquisite hotel tionally integrated space policy—one bringing clearly deserve. rooms. The Naval Hospital quickly set the together the civil, military, and commercial f standard in a number of areas which included sectors—is a common goal of ours. I applaud the treatment of polio, use of penicillin to con- him for his visionary leadership on this issue— TRIBUTE TO WAVERLY-SHELL quer malaria and tuberculosis, and the devel- and look forward to more conversations about ROCK WRESTLING TEAM opment of prosthetics and occupational ther- getting it right. apy. Mike Hamel has served his country with dis- HON. BRUCE L. BRALEY Norco was also the birthplace of wheelchair tinction for 36 years, since receiving his com- OF IOWA basketball on the wheels of the fabulous ‘‘Roll- mission as second lieutenant from the U.S. Air IN THE HOUSE OF REPRESENTATIVES ing Devils.’’ The stars, who once were guests Force Academy in 1972. In the course of 16 Thursday, May 8, 2008 of the former Norconian Resort, turned out assignments, he rose to the rank of lieutenant ‘‘for the boys’’; Gary Cooper, Abbott and general, which he attained on June 1, 2005. Mr. BRALEY of Iowa. Madam Speaker, I Costello, The Three Stooges, Marlene The change of command ceremony occurs rise today to recognize the outstanding results Dietrich, Jack Benny, Bob Hope and dozens May 15, a date Congress is in session. achieved by the Waverly-Shell Rock wrestling of other stars entertained wounded heroes Though I will miss the transfer of command to team at the Iowa State Wrestling Tournament from battles in the Pacific. Eleanor Roosevelt the very able GEN John Sheridan, I look for- in Des Moines this past winter. was also a visitor, as was Helen Keller, and ward to partnering with him and to welcoming Waverly-Shell Rock took all the drama out ball club owner Bill Veeck, a wounded marine, a tanned and relaxed Mike Hamel to Wash- of the Class 3A team finals by winning the guided his Cleveland Indians to a World Se- ington after he and his wife, Linda, complete State title a day early. Needing just one win to ries Championship from a hospital bed in their drive across the country. wrap up the title, Waverly-Shell Rock’s 112- Norco. Thanks, Mike, on behalf of a grateful Nation. pound freshman, Cody Caldwell, pinned his Norco citizens rallied behind the war effort f opponent in 4 minutes and 45 seconds. The with record bond sales and patriotism on Go-Hawks went on to win three more. Wa- many occasions raising thousands of dollars NATIONAL NURSES WEEK verly-Shell Rock wrapped up the State Tour- nament by breaking the State record for team more than cities ten times larger in size and SPEECH OF population. After World War II and Korea, points in a State Tournament dating back to Norco once again became an agricultural pow- HON. NICK J. RAHALL II 2001 and became the first team to break the erhouse, but, with the closing of the Naval OF WEST VIRGINIA 200-point mark in a State meet. Hospital in 1957, the entire area went into an IN THE HOUSE OF REPRESENTATIVES I congratulate Waverly-Shell Rock for win- ning the Iowa Class 3A State championship. economic tailspin. However, in 1963 a long Tuesday, May 6, 2008 forgotten real estate agent scrawled the words Waverly-Shell Rock’s last title came in 2005. ‘‘Horse Property for Sale’’ on a piece of white Mr. RAHALL. Mr. Speaker, I rise today to Madam Speaker, I am extremely proud of butcher paper and very quickly Norco became speak on behalf of H. Res. 1086, a resolution the accomplishments of the Waverly-Shell the home to horse lovers. Incorporated in De- in recognition of National Nurses Week, which Rock wrestling team, both on and off the mat, cember of 1964 to protect its ‘‘rural lifestyle,’’ will be celebrated May 6 through May 12, and I am proud to serve them in Congress. Norco is home to a community fiercely de- 2008. As a proud member of the Congres- f voted to the equestrian lifestyle with large sional Nursing Caucus, I added my name as CONGRATULATING MEDGAR properties, extensive open space and a horse cosponsor to this worthy resolution. EVERS COLLEGE, CUNY trail on every street—120 miles of horse trails Nurses Week has been celebrated every to be exact. year since 2003 and coincides with the May Over the weekend of May 9, 10, and 11, 12th birthday of Florence Nightingale, the HON. CHARLES B. RANGEL 2008, Norconians will remember their past and founder of modern nursing. We recognize this OF NEW YORK celebrate a truly unique Southern California week, as we should all 52 weeks of the year, IN THE HOUSE OF REPRESENTATIVES the critical role nurses play in providing safe, Equestrian lifestyle. It is an honor to represent Thursday, May 8, 2008 the town of Norco in Congress and I congratu- high-quality, and preventative health care. late the town and residents on 85 years of Providing this type of adequate health care Mr. RANGEL. Madam Speaker, I rise today service to their country and community. is essential, not only across the Nation, but to congratulate Medgar Evers College of the especially in rural America. As a longtime City University of New York on its’ newly an- f friend of hard-working West Virginians, I be- nounced initiative to implement two new bach- LTG MICHAEL HAMEL: HONORING lieve all Americans deserve to have access to elor degree programs. A LIFETIME OF SERVICE quality, affordable health care. Throughout my Medgar Evers College has long possessed tenure, I have continued to support programs an unparalleled reputation in the field of adult HON. JANE HARMAN that will improve this access, and I believe that education. The college provides its students OF CALIFORNIA providing quality nurses is part of this goal. with a unique experience, which combines IN THE HOUSE OF REPRESENTATIVES This is why I support increased funding for academic excellence in nearly 100 areas of Nursing Workforce Development Programs so study with real-world experience. This unique Thursday, May 8, 2008 that those who answer the call to serve others combination has lead to the continued suc- Ms. HARMAN. Madam Speaker, the Space through nursing have the support and funding cess of its students. As a result, the State and Missile System Center, SMC, at L.A. Air they need to achieve that goal. Board of Regents and the City University of Force Base plays the critical role in the de- Nursing care is an essential and necessary New York accreditation committee approved sign, production, and launch of our country’s aspect of our health care infrastructure, and it the allocation of money to fund two new bach- most sophisticated military satellites. Located is therefore important that we continue to pro- elor degree programs: the Bachelor of Arts in

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00018 Fmt 0626 Sfmt 9920 E:\CR\FM\A08MY8.047 E08MYPT1 wwoods2 on PRODPC68 with REMARKS May 8, 2008 CONGRESSIONAL RECORD — Extensions of Remarks E873

Religion Studies and the Bachelor of Science Helen continues to respond to calls for serv- GRESSIONAL RECORD, the official record of the in Social Work. The new programs are ex- ice including my request that she serve on the proceedings and debates of the United States pected to attract a record number of new stu- military academy review panel for the appli- Congress since 1873. Today I pay tribute to dents to the college for the next academic cants in the 27th District. She remains an ac- Carolyn Stephens, Managing Partner for year and ensure a steady stream of students tive member of over 20 different organizations. Jerolyn Enterprises, for her achievements in for the foreseeable future. Medgar Evans Col- Helen is also a Eucharistic Minister at St. small business throughout the Las Vegas lege provides students with the flexibility to se- Mark’s Church. community. lect their course of study and schedule their Her two children, Patricia and Bill, and Carolyn Stephens moved to Las Vegas after classes around commitments such as a job, grandchildren, Tom, Michelle, Christine, Eric, receiving her Bachelor’s Degree from the Uni- thereby providing those adults who might not Adam, and Kevin, will join with the family of versity of Georgia. She used her experience to otherwise have the opportunity with the veterans and friends on May 9th at the Troop acquire a job as Director for the Health Care chance to return to school. Education is the I Hamlin House to celebrate Helen’s 90 years Division of Manpower Temporary Services. key to escaping the grasp of poverty that of life, love, and laughter. After this, Carolyn established a business of plagues so many Americans. Medgar Evers Helen is a friend to all and a fighter for vet- her own called Information Products, Inc., College is taking profound steps to ensure that erans. Madam Speaker, I rise to congratulate which supplied computer and copy paper to those in need have access to higher edu- Helen G. Jacob on the occasion of her 90th local businesses. Gerald (Jerry), Carolyn’s cation. birthday and to thank her for her service and husband and business partner, has supported It is my sincere hope that other Colleges continuing commitment to our country. her in her business endeavors. Together, the and Universities across the nation will join f Stephens opened Lazer Graphics in 1985, Medgar Evers College in providing opportunity putting their business on the cutting edge of for the working poor to enhance their edu- CONGRATULATING NURSE MARY digital technology as the first company in Las cation and qualify for better paid employment. ALICE WILLIAMS Vegas to turn computer graphics into high-res- f olution output film for businesses. She dem- HON. MICHAEL C. BURGESS onstrated her leadership for small business TRIBUTE TO HELEN G. JACOB ON OF TEXAS issues when she was appointed to serve as a HER 90TH BIRTHDAY IN THE HOUSE OF REPRESENTATIVES delegate to the 1995 White House Conference Thursday, May 8, 2008 on Small Business. HON. BRIAN HIGGINS Discovering the need to connect other local OF NEW YORK Mr. BURGESS. Madam Speaker, I rise woman business owners, Carolyn published IN THE HOUSE OF REPRESENTATIVES today to honor Mary Alice Williams, of North the Women’s Yellow Pages of Southern Ne- Richland Hills, Texas. The Texas Nurses As- Thursday, May 8, 2008 vada from 1993 to 1995. Carolyn has worked sociation, Districts Three and Four, and the tirelessly to champion the advancement of Mr. HIGGINS. Madam Speaker, I rise today Dallas-Fort Worth Nurse Executives have rec- women in business. For her work and dedica- to acknowledge the 90th birthday of Helen G. ognized Ms. Williams as one of the Great 100 tion, she has received numerous awards and Jacob, an inspirational woman who fought for Nurses of 2008. Ms. Williams works as a achievements including being the first recipient our country in WW II and who continues to nurse at the North Hills Hospital. of the Las Vegas Chamber of Commerce Cir- fight on behalf of her fellow veterans every Nurses are often the initial and most fre- cle of Excellence Award. She was also hon- day. Helen is a brilliant example of commit- quent individuals who come in contact with pa- ored with the American Red Cross Clara Bar- ment and devotion to one’s community and tients. They serve as greeters, encyclopedias ton Medal of Excellence, the American Heart fellow man. of patient histories, comforters, and above all Association Heart of Gold, and the Soroptimist The daughter of Frank and Ellen Cooley, healers. Mary Alice exhibits all these excellent International Women Helping Women Award. Helen was born on May 16, 1918 in Buffalo, qualities on a daily basis. Moreover, the Small Business Administration New York where she and her siblings resided Each year this recognition is bestowed on has recognized her with the SBA’s Women on Crescent Avenue. Helen attended St. nurses who embody excellence in the science Business Advocate Award. Mark’s School and Mount St. Joseph’s High and art of nursing. The chosen honorees be- Madam Speaker, I am proud to honor Caro- School. long to an array of professional organizations lyn Stephens and would like to recognize her Helen, against her mother’s wishes, joined and work in a wide variety of clinical special- accomplishments within the Las Vegas com- the army in 1942 and was assigned to the ties. This is the 18th consecutive year that the munity. I would also like to congratulate her on 29th Traffic Regiment Division. Landing in Texas Nurses Association, Districts Three and receiving recognition as the Women in Busi- Paris six days after the liberation, Helen per- Four, and the Dallas-Fort Worth Nurse Execu- ness Champion of the Year for the 2008 Small formed tasks critical to moving troops through- tives have recognized area nurses for their Business Awards. out Europe. compassion and dedication. The recipients will f Upon her return to Buffalo, Helen was de- be honored at a gala event on Monday, May nied membership in both the Veterans of For- 12, 2008. TRIBUTE TO JOAN SCHWADE eign Wars and the American Legion. In what Madam Speaker, it is a privilege to stand has become her trademark, Helen pioneered today and congratulate Mary Alice Williams. HON. TOM LATHAM and founded the Ereico Women’s Post #1586. She is a fine representative of the North OF IOWA In 1984, Helen began volunteering as the Texas nursing community. Her work is an ex- IN THE HOUSE OF REPRESENTATIVES Women’s Veteran Coordinator, amassing cellent contribution to the patients of North Thursday, May 8, 2008 more than 12,000 hours of dedicated service. Hills Hospital and I am proud to serve her in In 1996, the Helen G. Jacob Wellness Clinic the 26th District of Texas. Ms. Williams has Mr. LATHAM. Madam Speaker, I rise today opened in the VA Medical Center in Buffalo, exhibited great skill in the field of nursing, and to recognize Joan Schwade for reaching a New York in recognition of her tireless advo- truly deserves this great honor. I join the entire noteworthy milestone of 40 years’ service as a cacy for quality services within the VA West- North Texas community in thanking her for the meter reader in the community of Protivin, ern NY Healthcare System. By Helen’s exam- apparent commitment to her fellow citizens. Iowa. ple and lifelong work, we are also reminded of f As a meter reader in a small town, Joan the obligation to keep the promises made by gets a fascinating perspective of the commu- our government to our veterans. PAYING TRIBUTE TO CAROLYN nity and has a great opportunity to regularly Justifiably and deservedly, Helen has been STEPHENS meet with townspeople. When she started her honored over the years. These awards include job in 1968, all of the 177 meters in town were American Legion’s Legionnaire of the Year; HON. JON C. PORTER located on the inside of homes. Times The Found Women Award from Women Focus OF NEVADA changed and today meters are located outside of Western New York; Buffalo Ambassador IN THE HOUSE OF REPRESENTATIVES the homes, so readers like Joan are able to from the Greater Buffalo Convention and Visi- make it through their routes more efficiently. tors Bureau; Award of Excellence from Every Thursday, May 8, 2008 At the age of 76, Joan continues to enjoy the Women’s Opportunity Center; the United Way Mr. PORTER. Madam Speaker, it is my dis- exercise and opportunity to talk with local resi- and J.C. Penny’s Golden Rule Award; and the tinct pleasure to rise today to honor Carolyn dents. It is reported that she could do without Susan B. Anthony Award. Stephens by entering her name in the CON- the dogs and winter weather, but she plans to

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00019 Fmt 0626 Sfmt 9920 E:\CR\FM\A08MY8.051 E08MYPT1 wwoods2 on PRODPC68 with REMARKS E874 CONGRESSIONAL RECORD — Extensions of Remarks May 8, 2008 continue her work as long as she is able to Peterman, Iyonna Holloway, Jamesia Hollo- ored for his contributions to a variety of cam- perform it. way, and Gisselle Zayas. They are one of our paigns that have secured funding to help im- I know that my colleagues in the United area’s and our Nation’s greatest treasures and prove and expand the facilities and make States Congress join me in commending Joan I would ask you to join me in saying thank you changes in the care children receive there. In Schwade for her service and dedication to the to them for sharing their gift of love and music. addition to his dedication to the Children’s Re- Protivin community as a meter reader. I con- f ceiving Home of Sacramento, Mr. Ballard has sider it an honor to represent her in Congress, served on the Children’s Coalition’s board, the and I wish her all the best in her future en- HONORING HORACE FINCHER human services planning council, the family deavors. support collaborative executive committee and f HON. HENRY CUELLAR the child welfare redesign steering committee. OF TEXAS The hearts and hands award is being pre- LITTLE HOMETOWN SOLDIERS OF IN THE HOUSE OF REPRESENTATIVES sented to Anthony Pico for his work with our ST. PETERSBURG, FLORIDA foster care system. Mr. Pico was raised in fos- Thursday, May 8, 2008 BRING GREAT COMFORT ter homes and at 15 he began working with THROUGH MUSIC AND PRAYERS Mr. CUELLAR. Madam Speaker, I rise today other youth in the California Youth Connection to honor Mr. Horace Fincher, the mayor of the and the Y.O.U.T.H. Training Programs. He HON. C.W. BILL YOUNG city of Lytle, in recognition of his exemplary has worked with the American Bar Associa- OF FLORIDA leadership in the growth of the city during his tion, Casey Family Programs, Pitzer College, IN THE HOUSE OF REPRESENTATIVES tenure, which ends on May 12, 2008. the California Institute for Mental Health, the Horace Fincher served as Mayor of the City Thursday, May 8, 2008 John Burton Foundation for Children Without of Lytle for 14 years after having served on Homes, and has held positions with the San Mr. YOUNG of Florida. Madam Speaker, the Lytle City Council for 6 years. During his Francisco Youth Commission—Mayoral Ap- With their voices of angels, the Little Home- tenure, Mayor Fincher worked to increase the pointee Commission and the Blue Ribbon town Soldiers of St. Petersburg, Florida bring tax base for taxpayers in Lytle by bringing in Commission on Children in Foster Care. For the greatest of comfort and joy to the families businesses such as H–E–B, Sonic Drive-In, his dedication to improving our foster care of our men and women in uniform who have McDonald’s, Bill Miller Bar-B-Q, Camino Real system, Mr. Pico was the 2005, 2006, and deployed around the world to protect our free- Mental Health & Mental Retardation (MHMR) 2007 recipient of the Youth Leadership Award dom. Center, Hurley Funeral Home, and Tri-County from the City and County of San Francisco This unique group of children ranging in age Dialysis Center. He also has endeavored in and is now being honored by his Sacramento from 3 to 16, was founded in 2003 by Elaine bringing consecutive grant proposals to the partners. Hopkins to speak in a special way to the Alamo Area Council of Governments This year, the Board of Directors Award youngest family members of our deployed (AACOG), which is a voluntary association of goes to a coalition of health care providers servicemembers. Through patriotic songs, dra- local governments and organizations in twelve and agencies in Sacramento for launching matic plays, cards and letters, and personal counties that serves its members through California’s first Shaken Baby Syndrome Pre- appearances locally and nationally they pro- planning, information, and coordination activi- vention Program (SBS). The Sacramento vide immeasurable support to children and ties. County Departments of Health and Human adults alike. They visit Veterans Hospitals and Mayor Fincher truly led by example and it is Services, Child Protective Services, and Public Nursing Centers and sing at the funerals of to his credit that the city of Lytle has seen an Health Nursing in conjunction with Catholic fallen servicemembers. Having been with them improvement in its business capital, and a re- Healthcare West-Mercy, Sutter Medical Cen- on a number of these occasions, I can tell you newal of infrastructure projects. The city is a ter, Sacramento, the DC Davis Medical Center that their words and songs of hope and en- truly better place because of the dedication and the Child Abuse Prevention Center have couragement are most appreciated. that Mayor Fincher has shown in his public championed this important cause. This pro- The Little Hometown Soldiers have per- service. gram is modeled after a program in New York formed on national television, they have trav- Madam Speaker, I am honored to have this which has greatly reduced incidents of SBS by eled to Washington to perform at the Armed time to recognize Mayor Horace Fincher, and 50 percent in that State. With this program Forces Retirement Home, and they sang for I thank you for this time. hospitals will provide educational materials to our returning troops as part of Operation f new parents on the dangers of shaking their Home Front at MacDill Air Force Base in babies and the prevention techniques that par- IN RECOGNITION OF SAC- Tampa. ents can use to avoid this heartbreaking form RAMENTO’S CHILD SAFETY AD- Madam Speaker, Elaine Hopkins has done of child abuse. These organizations have VOCATES a remarkable job with these children who are come together to reduce the incidence of SBS this generation’s young patriots. Even at their and most importantly protect our children. early ages, they understand the shared sac- HON. DORIS O. MATSUI Madam Speaker, I am honored to recognize rifice of our troops and their families and they OF CALIFORNIA these individuals and businesses for their ex- understand the true cost of freedom having at- IN THE HOUSE OF REPRESENTATIVES traordinary work on behalf of children and tended the funerals of many of our heroes. Thursday, May 8, 2008 families in the Sacramento area, and I would On Memorial Day weekend, they will per- like to thank the Child Abuse Prevention Cen- form a special concert entitled ‘‘I Believe I Can Ms. MATSUI. Madam Speaker, I rise today ter for their dedication to our children’s safety. Fly’’ as a tribute to the children and families of to recognize many of Sacramento’s out- On behalf of the people of Sacramento and our fallen servicemembers. The event at 3 pm standing individuals and businesses as mem- the Fifth Congressional District of California, I on Sunday, May 25, 2008 at The Paladium bers of the Sacramento community gather at ask all my colleagues to join me in honoring Theatre in St. Petersburg, Florida is free and the Child Abuse Prevention Center’s annual their unwavering commitment to Sacramento’s open to the public. Inspirations luncheon. The men and women youth. Madam Speaker, I wish all my colleagues being honored this afternoon are dedicated to f could be with me that day to hear the words the prevention of child abuse and well-being of of support and encouragement these children Sacramento’s children and families. I ask all HONORING LOUISIANA HONORAIR bring to families who have suffered the great- my colleagues to join me in honoring these AND T.D. SMITH, LINDA est of loses. The Little Hometown Soldiers are fine Sacramentans. DAUTREUIL AND SALLIE comprised of Camry Moody, Jermaine Lewis, David Ballard and the Children’s Receiving VARRELMAN Sherice Johnson, RoShaun Dudley, RaShard Home of Sacramento are receiving the com- Dudley, Nehemiah Sonnylal, Johnathan munity service provider award. The Children’s HON. CHARLES W. BOUSTANY, JR. Rosario, Isabelle Rosario, Tamaira Char- Receiving Home of Sacramento is a shelter OF LOUISIANA lemagne, Griffin Ford, Sajon Ford, Nykko for abused and neglected children in Sac- IN THE HOUSE OF REPRESENTATIVES Ford, Phoenix Ford, Keanu Ford, Mariangela ramento County. The only shelter of its kind, Vasquez, Jissel Vasquez, Marcos Vasquez, the Children’s Receiving Home serves over Thursday, May 8, 2008 Amanda Puyot, Darquell Pierre, Andrea 1,800 children each year. I would like to com- Mr. BOUSTANY. Madam Speaker, I rise Young, Prentazia Crawford, Shandra Gordon, mend them on their ability to help these chil- today to pay honor to America’s World War II Erica McCallister, Destine Wilson, Sydney dren in their time of need. David is being hon- veterans. These veterans represent the best

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00020 Fmt 0626 Sfmt 9920 E:\CR\FM\K08MY8.019 E08MYPT1 wwoods2 on PRODPC68 with REMARKS May 8, 2008 CONGRESSIONAL RECORD — Extensions of Remarks E875 of our country, and I am grateful to work with sacrifice, is evident in her commitment to this THE PASSENGER RAIL INVEST- Louisiana HonorAir to salute them, the coura- project. And, Sallie, with a soft British accent, MENT AND IMPROVEMENT ACT geous men and women who stood to protect is repaying a 70-year debt to the brave Amer- OF 2008 AND THE RAIL INFRA- America. ican soldiers she remembers stationed around STRUCTURE DEVELOPMENT AND This weekend 97 veterans from Southwest her Boumemouth, England home as a 12- EXPANSION ACT FOR THE 21ST Louisiana will make the three hour flight to our year-old in 1939. CENTURY Nation’s capital. In Washington, D.C., the T.D., Linda and Sallie each exemplify patri- group will tour the WWII Memorial, Korean otism and service to our great nation as they HON. JAMES L. OBERSTAR Memorial and Vietnam Memorial and attend a honor those of the ‘‘greatest generation.’’ One OF MINNESOTA wreath-laying ceremony at the Tomb of the man, who accompanied his father-in-law on a IN THE HOUSE OF REPRESENTATIVES Unknown Soldier at Arlington National Ceme- Louisiana HonorAir flight last year, expressed tery. For many veterans in the group, it is their the profound affect this extraordinary expres- Thursday, May 8, 2008 first time to tour the WWII Memorial because sion of kindness has on those who served so Mr. OBERSTAR. Madam Speaker, together of its recent construction. Then, as quickly as heroically. with Ranking Member MICA, Subcommittee they came, the group will return to a hero’s He said, ‘‘one of the most memorable mo- Chairwoman BROWN, Subcommittee Ranking welcome in Lafayette, Louisiana where family ments was when we were waiting for our bus Member SHUSTER, and more than 30 other and friends will gather to show their apprecia- to pick us up at the WWII Memorial. As usual, Members of the Committee on Transportation tion one more time. and Infrastructure, I am pleased to introduce Having met many of these groups in Wash- T.D. was walking around, joking and talking to the ‘‘Passenger Rail Investment and Improve- ington, I continue to be awestruck by the reac- the Vets as he smoked a cigar. My father-in- ment Act of 2008’’ and the ‘‘Rail Infrastructure tions of these men and women who stood up law took a deep breath and commented on Development and Expansion Act for the 21 st to tyranny in Europe and Asia. Many rarely how well it smelled. It was then that T.D. un- Century’’, or RIDE–21. talk about their service, instead, looking to selfishly offered him a cigar and a light. Well, We are introducing these bills between two happier times. However, in the company of Mr. Trahan thought he had won the lottery. significant milestones in railroad history. One others who nobly served, they are able to T.D. gave him a cigar and light and stood week ago today, Amtrak marked the beginning frankly discuss their experiences, share tearful there talking to him, making him feel like the of its 38th year of operation on May 1. This stories and remember comrades missing or most important person in the world.’’ Saturday, May 10th is National Train Day, killed in action. Unfortunately, shortly after his flight, the Since 2007, more than 800 Louisiana vet- man’s father-in-law passed away. His story marking the 139th anniversary of the ‘‘golden erans participated in the HonorAir program. Its emphasizes the importance of honoring these spike’’ being driven into the ground at Prom- success is a testament to one man’s vision— veterans before it is too late. ontory Summit, Utah, in 1869. The ‘‘golden spike’’ bound the last tie connecting the last T.D. Smith. To demonstrate his appreciation to Today, I ask my colleagues to join me in re- rail that united the Central Pacific Railroad our veterans, T.D., a local radio host, started membering the brave men and women who with the Union Pacific Railroad, completing the the program in January 2007 after learning of defended America and in commending Lou- transcontinental railroad. a similar effort in North Carolina. Smith began isiana HonorAir, T.D. Smith, Linda Dautreuil, These two milestones represent two dif- gathering sponsors and raising money needed and Sallie Varrelman who convey our appre- ferent conceptions of passenger rail. The to pay for the flights, buses and tours. ciation in such a remarkable way. Corporal Earl Flatt, of Broussard, Louisiana, transcontinental railroad was born thanks to the support of President Abraham Lincoln. He, a combat veteran of Iwo Jima, said, ‘‘My faith f in America was increased once again by the along with Civil War leaders, envisioned and enthusiasm of the people of Acadiana, who TRIBUTE IN HONOR OF NATIONAL planned the creation of the railroad. Not only embraced this project and made it all pos- TEACHER APPRECIATION WEEK did the completion of the railroad result in the sible.’’ Corporal Flatt was on the first HonorAir ability to deliver goods and people across the flight, and he remembered being at the WWII country, it ultimately bound the east with the Memorial as one of the most rewarding days HON. MICHAEL K. SIMPSON west, further unifying the country as the divide of his life. Referring to T.D., he said, ‘‘Mere OF IDAHO between the North and the South was begin- ning to mend. At the time, the transcontinental words cannot express my appreciation for T.D. IN THE HOUSE OF REPRESENTATIVES Smith. His enthusiasm, work habits and patri- railroad brought a new sense of wonder and otism is never exhausted. He would have Thursday, May 8, 2008 enthusiasm for discovery and entrepreneur- ship across the country. been a hell of a Marine.’’ Mr. SIMPSON. Madam Speaker, in recogni- T.D.’s leadership and commitment to this In contrast, the formation of National Rail- tion of National Teacher Appreciation week, I project and our veterans is extraordinary. His road Passenger Corporation, more commonly rise today to pay tribute to teachers across the humble demeanor further highlights the con- known as Amtrak, occurred at a time of wan- country. It is always appropriate to thank those tributions of the veterans, many whom are ing support of intercity passenger rail. Amtrak who devote their lives to the education of our strangers before the flight, and belies the typ- was created after the freight railroads begged Nation’s children, but Teacher Appreciation ical boisterous on-air radio personality many Congress to let them get out of the passenger Week gives us a special opportunity to remind would expect. T.D. ensures the HonorAir pro- rail business because it was not profitable. educators that we support what they do and gram never fails to remember its mission of Indeed, Amtrak inherited decrepit stations want to partner with them in the important ‘‘celebrating Louisiana’s own—their courage, and terminals, passenger cars that offered work of preparing today’s children to be tomor- their valor, their sacrifice in WWII.’’ dated amenities, and equipment prone to fail- In addition to T.D.’s vision, the success row’s leaders. ure. ofthe program depends on a myriad of fund- Every day, educators inspire, teach, and Thirty-seven years after the launch of Am- raising and logistics. This program is truly a make a difference in our lives. Teaching is a trak, America is on the threshold of a ‘‘renais- broad community effort, and volunteers challenging and rewarding job, and those who sance’’ for intercity passenger rail that ap- throughout the Acadiana area who help raise choose to undertake it deserve our respect proaches the enthusiasm of the completion of funds, serve on the board of directors, and act and gratitude. It should be a priority for Con- the transcontinental railroad. Last year, Amtrak as guardians on each flight, should all be gress to ensure that teachers have the tools set a ridership record for the fifth year in a commended for their tireless efforts. However, they need to make a difference in the lives of row, exceeding 25.8 million passengers. Its Linda Dautreuil and her mother Sallie their students, and I am pleased that my col- ticket revenues rose 11 percent to more than Varrelman each stepped forward to pilot the leagues recently joined me in expressing their $1.5 billion, the third straight year of revenue efforts of others. Ensuring each veteran re- full support for America’s educators by unani- growth. This record of achievement is even ceived attention to their specific details, this mously passing resolutions in recognition of more impressive considering that for the past mother-daughter team serve each flight partici- National Teacher Appreciation week. eight years Amtrak has contended with an Ad- pant with care. They plan, organize, and im- I am grateful for the positive impact that my ministration committed to its bankruptcy. plement each flight guaranteeing the experi- teachers have had on my life, and I appreciate Indeed, these achievements are occurring ence of a lifetime for these worthy veterans. the work and dedication of our Nation’s edu- when there is a greater need than ever for al- Linda’s respect and admiration for these WWII cators in teaching the future business leaders, ternatives to our congested highways and heroes, and her wish to thank them for their farmers, and citizens of our country. skies. To alleviate this congestion and

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00021 Fmt 0626 Sfmt 9920 E:\CR\FM\A08MY8.055 E08MYPT1 wwoods2 on PRODPC68 with REMARKS E876 CONGRESSIONAL RECORD — Extensions of Remarks May 8, 2008 strengthen our energy security, we need to in- struction and equipment for 11 authorized formidable odds, and yet has prevailed to be- vest in intercity passenger rail. Amtrak re- high-speed rail corridors. The Federal share of come a beacon of hope and an example of moves almost eight million cars from the road the grants is up to 80 percent. The Secretary the prevailing strength of liberty and freedom. annually and eliminates the need for 50,000 of Transportation would also award these Israel was not simply established, it was fully loaded, passenger airplanes each year. grants on a competitive basis. built. It was built through the toil, strife and re- Other countries already make an annual Many of Amtrak’s service routes outside the solve of the Jewish people and upon the commitment to intercity passenger rail. In Northeast Corridor suffer from poor service re- premise of hope—hope that even in the wake 2003 alone, France invested $10.6 billion in its liability and on-time performance because of of the ashes of the holocaust, goodness can rail system; Germany invested $12.4 billion; freight traffic congestion. This congestion pre- prevail. And indeed, as we commemorate and the United Kingdom invested $7.8 billion. vents Amtrak from retaining and attracting new Israel’s 60th birthday, we can see that good- Outside of Europe, Japan invests about $2 bil- ridership, and increases Amtrak’s operating ness has prevailed. lion annually to its Shinkansen and China has costs. The Department of Transportation In- In many ways, the path of Israel has mim- launched a plan to spend a total of $162 bil- spector General recently reported that if Am- icked that of the United States. It is in no way lion from 2006 through 2010 to expand its rail- trak achieved an 85 percent on-time perform- perfect and makes its fair share of mistakes. way system. ance outside the Northeast Corridor in fiscal However, it is part of the same experiment of These investments have paid off: passenger year 2006, it would have saved Amtrak $136.6 democracy, and built upon the notion of a rail accounts for 32 percent of Japan’s trans- million, or almost one-third of its operating state becoming a light unto other nations. In portation market; the Eurostar, the high-speed budget. Amtrak is required by law to have pre- our century, the partnership between Israel passenger train operator between Britain and ferred access on freight corridors; however, and the United States has conjoined to thwart mainland Europe, recently reported a 21.3 freight railroads do not always comply with the existence of terrorism, advance the fron- percent rise in passengers to 2.17 million be- Amtrak’s access rights. The bill addresses this tiers of human knowledge, and make an indel- tween January and March 2008, compared problem by providing congestion grants to Am- ible contribution to the human condition. with the same period last year, with a 25 per- trak and the States for high-priority rail cor- Madam Speaker, I encourage my col- cent increase in ticket revenues. Indeed, you ridors in order to reduce congestion and facili- leagues to foster the United States’ alliance can hardly purchase a plane ticket from Lon- tate ridership growth. and friendship with this great nation to join me don to Brussels or London to Paris because Federal support of Amtrak was cut dras- in wishing Israel a very happy 60th anniver- rail service is faster and easier than air serv- tically in fiscal years 2000 and 2001, forcing sary. ice. Amtrak to assume a large amount of debt to f H.R. ——, the Passenger Rail Investment stay in operation. Amtrak has aggressively tar- and Improvement Act of 2008 authorizes more geted this debt, paying down $600 million from IN HONOR OF ISRAEL’S 60TH than $14.4 billion for Amtrak capital and oper- fiscal years 2002 through 2007. Our bill helps ANNIVERSARY ating grants, state intercity passenger grants, Amtrak to take further steps to reduce its debt, and high-speed rail over the next five years. authorizing $345 million each year for debt HON. ALLYSON Y. SCHWARTZ The bill authorizes $6.7 billion (an average of service through FY 2013. This funding will OF PENNSYLVANIA $1.34 billion per year) to Amtrak for capital allow Amtrak to focus its resources on improv- IN THE HOUSE OF REPRESENTATIVES grants and $3.0 billion (an average of $606 ing existing services and making additional Thursday, May 8, 2008 million per year) for operating grants. Past in- capital and operational improvements. consistent Federal support has hampered Am- Finally, no Federal guidelines currently exist Ms. SCHWARTZ. Madam Speaker, I rise trak’s ability to replace catenaries, passenger to mediate disputes between commuter rail today to recognize the 60th anniversary of cars, bridges, ties, and other equipment nec- providers and freight railroads over use of Yom Ha’atzmaut—Israel’s Independence Day, essary for Amtrak to provide service. These freight rail tracks or rights-of-way, nor is there to congratulate the Israeli people on their sig- capital grants will help Amtrak bring the North- a standard forum for negotiating commuter rail nificant accomplishment, and to celebrate the east Corridor to a State of Good Repair, pro- operating agreements. The bill establishes a strong U.S.-Israel relationship. cure new rolling stock, rehabilitate existing forum at the STB to help complete stalled As the daughter of a Holocaust survivor, I bridges, as well as make additional capital im- commuter rail negotiations, helping our rail very much appreciate the important role that provements and maintenance over its entire network operate as efficiently as possible. Israel plays in the world for the Jewish people. network. In addition, the operating grants au- The Committee is also introducing, On May 14, 1948, the State of Israel was cre- thorized under the bill will help Amtrak pay H.R.ll, the ‘‘Rail Infrastructure Development ated providing a new homeland and safe salaries, health costs, overtime pay, fuel costs, and Expansion Act for the 21st ‘‘Century’’, au- haven for those who most recently had sur- facilities, and train maintenance and oper- thorizing $12 billion of tax-credit bonds and vived the Holocaust and for Jews before and ations. These operating grants will also ensure $12 billion of tax-exempt bonds for high-speed since who had been scattered throughout the that Amtrak can meet its obligations under its rail corridors over the next 10 years. This leg- world after a millennia of conflict, discrimina- recently negotiated labor contract. islation will be referred to the Committee on tion, and persecution. In an effort to encourage the development Ways and Means and I look forward to work- I am proud that the United States was one of new and improved intercity passenger rail ing with Chairman RANGEL and Ranking Mem- of the first countries to recognize Israel. services, the bill creates a new State Capital ber MCCRERY on this important initiative. Today, the U.S.-Israel relationship continues Grant program for intercity passenger rail cap- Amtrak and high-speed rail are essential to to be strong. And I pledge to work with our ital projects, based on the New Starts transit create the world’s preeminent national trans- trusted ally to pursue a stable and peaceful capital program administered by the Federal portation network. Middle East, which assures safety and secu- Transit Administration. The bill provides $2.5 I look forward to working with Members of rity for the State of Israel. billion ($500 million per year) for grants to the Committee and the House to pass these In the quest for peace in the Middle East, States to pay for the capital costs of facilities important bills. the United States has no stronger partner than and equipment necessary to provide new or f Israel. As the Middle East’s only democratic improved intercity passenger rail. The Federal country, Israel is an important example for share of the grants is up to 80 percent. The SUPPORTING COMMEMORATION OF other countries in the region. It has free elec- Secretary of Transportation would award these ISRAEL’S 60TH ANNIVERSARY tions, a free press, and protection of minority grants on a competitive basis for projects rights. It is a strong and vibrant democracy based on economic performance, expected HON. JOHN J. HALL and a trusted friend. ridership, and other factors. OF NEW YORK Maintaining a democratic society has not The National Surface Transportation Policy IN THE HOUSE OF REPRESENTATIVES been easy. Israel has endured neighbors that and Revenue Study Commission, established have attempted to wipe it off of the map, and to develop a national transportation vision to Thursday, May 8, 2008 it continues to face threats from terrorist orga- address surface transportation needs for the Mr. HALL of New York. Madam Speaker, I nizations which oppose Israel’s existence and next 50 years, recommends that the United am pleased that I have the opportunity to rise seek to disrupt any possibility of a peaceful States establish a high-speed rail network that today in strong support and commemoration of coexistence for all people. spans the entire country. The bill authorizes the 60th anniversary of Israel. It is an honor to Even today as Israel seeks security within $1.75 billion ($350 million per year) for grants be able to speak on behalf of a country born its borders and peace with its neighbors, rad- to States and/or Amtrak to finance the con- in the aftermath of tragedy, erected against ical extremists attack its citizens with daily

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00022 Fmt 0626 Sfmt 9920 E:\CR\FM\A08MY8.058 E08MYPT1 wwoods2 on PRODPC68 with REMARKS May 8, 2008 CONGRESSIONAL RECORD — Extensions of Remarks E877 rocket barrages. It is crucially important that As a young child, Jerry had a passion for STEM CELL SCIENCE: THE FOUN- we stand by our friend and ally, now and in shoes. His passion led him to his studies at DATION OF FUTURE CURES the future. the Ars Sutoria Institute in Milan, Italy, where HEARING IN THE SUBCOMMITTEE It is important to note that support for Israel he graduated with a bachelor’s degree in shoe ON HEALTH, COMMITTEE ON EN- is an issue that Democrats and Republicans design. Armed with skills, determination, and ERGY AND COMMERCE here in Congress consistently work on in a bi- talent, Jerry came to the United States from partisan manner. Our willingness to work to- Switzerland and opened his first Shoe Lab in HON. MICHAEL N. CASTLE gether sends a strong message internationally Los Angeles, California in 1989. His success- that the United States is committed to our OF DELAWARE ful shoe repair business led him to franchising IN THE HOUSE OF REPRESENTATIVES friend and partner, Israel. his stores throughout Southern California. In Madam Speaker, it is truly an honor to 1995, his passion for the business eventually Thursday, May 8, 2008 stand by Israel and I know my colleagues join brought him to Las Vegas, Nevada. me in expressing Mazel Tov to all Israelis for Mr. CASTLE. Madam Speaker, I have been a remarkable 60 years and wish Israel and its Jerry’s business success centers around his deeply involved in working to expand the Fed- people a safe and secure future. philosophy of having the best craftsmanship eral policy on stem cell research over the last several years with my friend DIANA DEGETTE, f and customer service. Customers are often in- vited to watch Jerry’s well trained cobblers re- and I am encouraged to see the House En- IN HONOR OF MOTHER’S DAY pair their shoes, bag, or luggage through a ergy and Commerce Committee hold its first hearing on the subject of stem cell policy and Shoe Lab ‘viewing window’. HON. AL GREEN the foundation for future cures. I look forward Nominees for the Macro-Enterprise Award OF TEXAS to hearing from the expert witnesses testifying are judged by an independent panel of small IN THE HOUSE OF REPRESENTATIVES today, everyone from Dr. Elias Zerhouni, Di- business leaders on a variety of criteria includ- rector of the National Institutes of Health, lead- Thursday, May 8, 2008 ing staying power, employee growth, sales in- ing scientists, Dr. George Daley of Children’s Mr. AL GREEN of Texas. Madam Speaker, creases, innovations of service, and contribu- Hospital Boston, and Dr. John Gearhart of I wish to honor our Nation’s mothers this tions to community-oriented projects. Mr. Johns Hopkins University, and Weyman John- Mother’s Day because they embody the defini- Guederian and Shoe Lab excelled in every son, Jr. who chairs the National Multiple Scle- tion of strength, courage and compassion. category. rosis Society, about the ever important field of Mothers are the backbone of American values Madam Speaker, I am proud to honor Mr. regenerative medicine. There have been a and vitality and I ask that my colleagues honor couple of very exciting developments in the Jerry Guederian and his outstanding accom- the mothers of our Nation on Sunday, May 11, field recently, underscoring the critical role of plishments in the Southern Nevada business 2008. the United States’ scientific community and community and his recent achievement of The history of celebrating Mother’s Day the need for even more coordinated Federal being named Nevada’s 2008 Micro-enterprise began when Anna Jarvis of West Virginia de- research. Small Business Person of the Year. sired to honor the life of her deceased mother, Announcements from scientists about re- Anna Reeves Jarvis. In 1908, Jarvis’ church moving single cells from embryos to develop honored her mother as the first Mother’s Day f embryonic stem cell lines, and using human Celebration and then, in 1910, the governor of skin cells in ways that offer similar promise as HONORING THE ACHIEVEMENTS OF West Virginia, William Glasscock, wrote the embryonic stem cells, underscores the impor- CHARLIE SCOTT first Mother’s Day Proclamation, which encour- tance of pursuing all avenues of science that aged families to celebrate Mother’s Day. Anna could advance human health. Jarvis moved beyond her home State and HON. DAVID SCOTT The recent discoveries are significant, but urged the Federal Government to establish a we must remember that important scientific national day to celebrate Mother’s Day. Even- OF GEORGIA advances do not always translate to medical tually the Sixty-Third Congress passed H.J. IN THE HOUSE OF REPRESENTATIVES advances. It is for this reason that I believe, Res. 263. This resolution designated the sec- and scientists agree, it would be irresponsible ond Sunday in May as Mother’s Day. The next Thursday, May 8, 2008 to abandon embryonic stem cell research, day President Woodrow Wilson signed a Pres- which continues to show the most immediate idential Proclamation directing the Nation to Mr. SCOTT of Georgia. Madam Speaker, I promise. display flags on government buildings and rise to day to acknowledge racing pioneer My passion for advancing and expanding re- homes to show America’s love and dedication Charlie Scott, and to express support for his search on stem cells comes from years of for mothers. admission into the Georgia Automobile Racing meeting with those who are suffering from dia- Mother’s Day is a time for Americans na- Hall of Fame Association. betes, Alzheimer’s, cancer, heart disease, Par- tionwide to show affection and respect for the Born in Crawford, Georgia, Charlie Scott kinson’s and their loved ones—and from the everyday heroines we call mothers, aunts, many scientists I have had met over the years great aunts, grandmothers and great grand- was the first African-American to drive in an officially sanctioned National Association for who have hailed the promise of the mothers—women of courage and strength that pluripotency, that is the ability to become any carry our country by raising children and uplift- Stock Car Auto Racing (NASCAR) event, debuting at the Daytona Beach Grand Na- cell in the body, of embryonic stem cells, and ing our families. On May 11th, I urge my col- the breakthrough of induced pluripotent stem leagues and fellow citizens to celebrate Moth- tional in 1956. As reported by NASCAR.com earlier this year, ‘‘[Charlie] drove a Kiekhaefer cells, iPS, which are believed to have the er’s Day. same qualities. There is no greater promise f Chrysler. When the checkered flag waved, Scott found himself in 19th place, earning $75 for better treatments and potential cures than PAYING TRIBUTE TO JERRY for his efforts.’’ This outing—at Daytona, there is with a strong Federal investment in GUEDERIAN where NASCAR was born—was a ethical forms of medical research of all kinds. groundbreaking effort and no doubt inspired American scientists should be leading the world. HON. JON C. PORTER countless future NASCAR drivers and fans. iPS is a major scientific breakthrough, how- OF NEVADA His illustrious career included races all over ever many have said the viruses and genes IN THE HOUSE OF REPRESENTATIVES the country in motorcycles and other auto- used in the process to create the embryonic- mobiles. He loyally supported the sport Thursday, May 8, 2008 like state of the human skin cells can cause throughout his lifetime, and deserves recogni- Mr. PORTER. Madam Speaker, it is my dis- cancer. If the cancer factor cannot be elimi- tion for helping to break the color barrier in tinct pleasure to rise today to honor Mr. Jerry nated, and only further research will tell, iPS automobile racing. Guederian by entering his name in the CON- cells may be better suited for learning more GRESSIONAL RECORD, the official record of the In closing, Madam Speaker, I want to recog- about cancer, for example, or for improving proceedings and debates of the United States nize the achievements of Mr. Scott and ex- pharmaceutical drugs. So, if it is the case that Congress since 1873. Today I honor Mr. press my gratitude for his courageous efforts iPS cells might prove better for some uses Guederian, the 2008 Nevada Micro-Enterprise to make racing an inclusive sport from the and embryonic stem cells better for others, Small Business Person of the Year. very beginning. how could we abandon one for the other?

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00023 Fmt 0626 Sfmt 9920 E:\CR\FM\A08MY8.061 E08MYPT1 wwoods2 on PRODPC68 with REMARKS E878 CONGRESSIONAL RECORD — Extensions of Remarks May 8, 2008 It is apparent that with the availability of new Generation here in Washington to visit the Na- COVERING THE UNINSURED stem cell lines, the ability of medical research- tional World War II Memorial and the Tomb of ers to alleviate the suffering of millions will be the Unknowns at Arlington National Cemetery. HON. GENE GREEN bolstered. The United States should support Honor Air of Henderson and Buncombe OF TEXAS comprehensive stem cell research of all kinds, counties provides free trips for World War II IN THE HOUSE OF REPRESENTATIVES instead of tying the hands of researchers and Veterans to ensure that they have an oppor- asking patients with some of the most debili- tunity to see the memorial which honors their Thursday, May 8, 2008 tating diseases to wait even longer. Federal service to our nation, and to commemorate Mr. GENE GREEN of Texas. Madam policy must be updated to reflect science ad- their fallen comrades. I would like to offer my Speaker, I rise today to discuss the issue of vancements. sincere gratitude to the dedicated volunteers the uninsured in recognition of National Unin- Moving forward, I believe we need to look of Honor Air in all of its locations across the sured Week in our country. for ways to strengthen the ethical framework country for making these trips possible. In recent years the cost of health care has which guides all forms of regenerative medi- The National World War II Memorial was grown wildly. Those who can afford private or cine. Policies should be in place to allow sci- opened to the public in May of 2004, and has employer-based health insurance are fortu- entists to pursue fundamental science in- since been visited by millions of people from nate. Unfortunately, 47 million Americans lack quires. It will also be essential that Congress around the world. Built to honor the 16 million health insurance, including nine million chil- work with the National Institutes of Health to Soldiers, Sailors, Marines, Airmen, Coast dren—and in Texas one out of every four indi- ensure that any change in policy can be im- Guardsmen, and Merchant Mariners who viduals is without health insurance. plemented with ease. When Congress votes to served our Nation during World War II, the We need a national health care plan, but expand the Federal policy or when the next National World War II Memorial serves as a until we make it a national priority, Congress Administration changes the policy, which I am reminder of their sacrifice and service to the will continue to make incremental steps. confident will happen, we must have the ca- American people. I am thankful that we have That’s why Congress has worked so hard to pacity to move forward quickly to expand the finally found a permanent memorial here in the include more children under the State Chil- Stem Cell Registry to include the many lines Nation’s capital to honor their service. dren’s Health Insurance Program (SCHIP) and derived post August 9, 2001, and to supply On behalf of the residents of North Caro- I have introduced the Health Centers Renewal new Federal grants. lina’s 11th District and all Americans, I offer Act (H.R. 1343), the Community Mental Health We simply must pursue all avenues of our deepest appreciation to these visitors for Services Act (H.R. 5167) and the Ending the science that show promise for advancing their service, their sacrifice, and their presence Medicare Disability Waiting Period Act (H.R. human health—and the role of the Federal here today. These men and women represent 154). Government in carrying this out is paramount. the bravery and benevolence of America— Ten years ago Congress created the SCHIP For more than a century, the National Insti- past, present, and future. to help provide health insurance for children of tutes of Health has promoted cooperation Madam Speaker, I ask that my colleagues low-income workers. These are hard-working among the scientists who receive Federal re- join me in honoring and welcoming these dis- families whose jobs don’t offer employer-spon- search dollars, and has made knowledge tinguished veterans from Western North Caro- sored health insurance, or whose dependant sharing a priority. While state-funded stem cell lina to the Capital of our grateful Nation. coverage for children is unaffordable. initiatives are important, without the support of f Nationwide there are approximately 9 million Federal Government there remains a void. uninsured children. Alarmingly, more than 1.5 In just 10 short years since Dr. James HONORING SAMUEL H. HOWARD million of those children live in Texas. Our Thompson announced the first embryonic ON THE OCCASION OF HIS SIXTY- state had significant barriers against the en- stem cell line, we have made great strides. NINTH BIRTHDAY rollment of new children in SCHIP, and even Without the Federal funding restriction, who has policies that have kicked kids out of the knows where we would be today. Nearly HON. JIM COOPER program. three-quarters of Americans from all walks of OF TENNESSEE As a result, Texas SCHIP enrollment has life support embryonic stem cell research, as IN THE HOUSE OF REPRESENTATIVES dropped from about half a million in 2003 to 350,000 in 2007. While children are does the majority in Congress who support ex- Thursday, May 8, 2008 panding the Federal stem cell policy to allow unceremoniously removed from SCHIP, the for funding and oversight of embryonic stem Mr. COOPER. Madam Speaker, I rise today number of uninsured continues to grow in our cell research and who voted for the Stem Cell to honor the 69th birthday of Samuel H. How- state. Research Enhancement Act, which with great ard, a man who has made an indelible impact There are about 1.5 million Texas children disappointment was vetoed twice by President on the health of Americans and whose life is in households earning less than 200 percent Bush. an inspiration to us all. of the federal poverty level and 750,000 to I cannot stress enough the promise of stem During his more than 40-year career, Sam 850,000 of them are eligible for Medicaid or cell research of all kinds for alleviating the suf- has served as a White House fellow, been a SCHIP coverage. Three fourths are not en- fering of the 100 million American patients and leader at colleges and health care organiza- rolled in either program, meaning there are so many more around the globe who are living tions, and founded and led several corpora- 200,000 to 300,000 kids in Texas who are eli- with devastating diseases for which there are tions charting a course to improve health care gible but not enrolled in SCHIP. no good treatments and for which there is no for all Americans. Tragically, the state doesn’t even use the all cure. As Dr. Elias Zerhouni, Director of the A proud graduate of Oklahoma State Uni- the funds the federal government has provided National Institutes of Health, stated in Senate versity, Sam also holds a master’s degree for our children who are going without basic testimony in March 2007: ‘‘It is clear today that from the prestigious Stanford University. He care. Eventually the money—more than $850 American science will be better served and has received multiple awards for his business million in the last seven years—goes to other the nation would be better served if we let our acumen, including being inducted by his alma states or back to the Federal government. scientists have access to more cell lines.’’ We mater into the Oklahoma State University Bipartisan majorities in both houses of Con- must work to remove the barriers to Federal School of Business Hall of Fame. Sam was gress have supported an expansion of SCHIP funding for embryonic stem cell research. twice awarded the Federation of American that would help solve some of Texas’s prob- Hospitals President’s Achievement Award. f lems twice over the last year. Sadly, President In 1994, Sam received the Nashville Bush vetoed our efforts both times, but we will WELCOMING HONOR AIR NAACP Branch Image Award for Lifetime not give up until our children have the health Achievement. His life has shown how much care they need. HON. HEATH SHULER one can achieve when grounded by faith, fam- In the meantime, we have opened other OF NORTH CAROLINA ily, and fortitude. fronts in the battle to improve the quality of IN THE HOUSE OF REPRESENTATIVES Madam Speaker, in Tennessee we are for- health care in our country. The Health Centers tunate to have Sam Howard as a pillar of our Renewal Act was introduced last year and ap- Thursday, May 8, 2008 community, and I am privileged to call him my proved by the Subcommittee on Health on Mr. SHULER. Madam Speaker, I rise to wel- friend. Today, on his birthday, I rise to salute April 23, and will go to the full committee come World War II veterans from Western him, express my gratitude for his service to his soon. North Carolina to Washington, DC. I am hon- fellow man and wish him warm blessings for Health centers represent our Nation’s larg- ored to have these members of the Greatest many years to come. Happy Birthday, Sam. est primary health care system and serve as

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00024 Fmt 0626 Sfmt 9920 E:\CR\FM\A08MY8.064 E08MYPT1 wwoods2 on PRODPC68 with REMARKS May 8, 2008 CONGRESSIONAL RECORD — Extensions of Remarks E879 a medical home to more than 15 million Amer- no child, no disabled worker, and no unin- ber of Local 28 of the National Association of icans, most of whom are uninsured or have sured woman would suffer from a lack of ade- Letter Carriers, which represents over 1,000 low incomes. quate health care. As we work toward that members. By providing people who are medically un- goal, Congress should take every opportunity I want to thank Perry and all letter carriers derserved with primary and preventive health to put in place policies that provide as many for their dedication and urge my colleagues to care, the health centers reduce the need for people as possible with quality, affordable support this resolution. expensive specialty care in hospitals and health insurance. f emergency rooms. The Health Centers Re- f newal Act will allow health centers to nearly HONORING COUNCILMAN GENE double the number of individuals they can HONORING ELKS NATIONAL YOUTH BELMARES serve. WEEK The Community Mental Health Services Im- HON. HENRY CUELLAR provement Act, which was introduced in Janu- HON. LOIS CAPPS OF TEXAS ary, will improve medical care for often-ne- OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES glected mental health patients. Community IN THE HOUSE OF REPRESENTATIVES Thursday, May 8, 2008 mental health organizations serve more than Thursday, May 8, 2008 six million adults and children across the Mr. CUELLAR. Madam Speaker, I rise today country. Mrs. CAPPS. Madam Speaker, I rise today to honor Councilman Gene Belmares, who will Many of these people are Medicaid bene- on behalf of the Santa Maria Elks Club to be presented with the Liberty Bell Award by ficiaries, children in foster care, the destitute, honor the first week of May as Elks National the Laredo-Webb County Bar Association on homeless and uninsured. Unfortunately, com- Youth Week in tribute to our junior citizens May 9, 2008. munity mental health centers have been and to honor them for their achievement and Gene Belmares is the son of a decorated chronically underfunded for many years and contributions to their community, State and WorId War II veteran, Ignacio Belmares, and struggle to meet the basic health needs of the Nation. Elvira Belmares. He grew up in Laredo, people they serve. Youth Week is designed to guide, inspire Texas, and attended United High School and This bill will allow mental health care pro- and encourage our youth to serve their com- Laredo Junior College. Gene utilized his mar- viders to recruit medical primary care doctors munity and help prepare them for the duties keting skills to great effect in his work with to care for patients with serious mental illness. and opportunities of citizenship. Across the some of South Texas’s most prestigious com- Patients with mental illnesses die on average country, our Nation’s young people are be- panies such as Thomas Petroleum, 25 years earlier than the average American, coming active citizens and learning the impor- Arguindegui Oil, and WestWind Homes. Gene demonstrating the criticality of the need for tance of civic involvement. I firmly believe in is now enjoying his work with the marketing better health care. encouraging the sense of community dem- and sales team at the famous La Posada The Ending the Medicare Disability Waiting onstrated by these ambitious and engaged Hotel, one of the oldest hotels in South Texas Period Act was introduced last year would young people. that is leading the revitalization of downtown close a loophole that allows more than a mil- As a mother and a grandmother, I am Laredo. lion people with disabilities to go without med- amazed by the strength of character I see in Councilman Belmares was elected to the ical care for extended periods of time. junior citizens. I commend the goals and Laredo City Council in 2002, and is seated on When Medicare expanded in 1972 to in- ideals of the Santa Maria Elks Club and am the Metropolitan Planning Organization, Water clude individuals with significant disabilities, proud to honor America’s future leaders today. Issues, Sports Venue, and Legislative Com- Congress stipulated that they had to first re- f mittees. He is currently serving as Mayor Pro ceive Social Security Disability Insurance Tempore, and is responsible for the unprece- (SSDI) for two years before becoming eligible H. RES. 49, TO ESTABLISH NA- dented fiscal growth of the City of Laredo for for Medicare, resulting in a three step process. TIONAL LETTER CARRIERS AP- the last 6 years through his work on landmark First, the Social Security Administration has PRECIATION DAY ordinances and legacy projects. Councilman to determine SSDI approval. Second, an indi- Belmares also has admirably served the com- vidual has to wait five months before receiving HON. BETTY McCOLLUM munity of Laredo, Texas, through his civic SSDI benefits. Third, after receiving SSDI ben- OF MINNESOTA work with the March of Dimes, Muscular Dys- efits an individual has to wait two more years IN THE HOUSE OF REPRESENTATIVES trophy, and the American Cancer Society. He before they can receive Medicare coverage. Thursday, May 8, 2008 enjoys coaching the Gateway Girls Softball More than 26 percent of individuals with sig- League, and the Boys and Girls Club flag foot- nificant disabilities have no health insurance Ms. MCCOLLUM of Minnesota. Madam ball. during this two-year wait. Before becoming Speaker, I rise today in strong support of H. Councilman Belmares is a truly deserving disabled, most of these people worked full Res. 49, a resolution that establishes National recipient of the Liberty Bell Award, which is time and paid into Medicare like everyone Letter Carriers Appreciation Day. given out annually by the Laredo-Webb Coun- else. Letter carriers are vital to the United States ty Bar Association to those who have dem- Now, when they need help the most, they economy and help keep families and friends in onstrated exemplary community service, and are required to wait without coverage. This bill touch with one another. They provide mail contributed to good governance in the commu- would phase out the two-year wait over 10 service 6 days a week, in good and bad nity. years and completely eliminate the waiting pe- weather, to more than 144 million households. Madam Speaker, I am honored to have had riod for people with life-threatening conditions. The United States Postal Service employs this time to recognize the dedication of Coun- Finally, I strongly support restoring funding more than 705,000 letter carriers who deliver cilman Belmares to the City of Laredo, and I for the Healthy Community Access Program, more than 43 tons of mail each year. This thank you for this time. which in my community has helped enroll an averages to approximately 2,300 letters, f additional 250,000 individuals in Medicaid and cards, magazines, and circulars per carrier per CHIP, while also directing the uninsured away day. PAYING TRIBUTE TO HARVEY from the ERs and toward an appropriate In addition, I would like to specifically honor ALLEN health care home. Perry Bennet Schmitt, who has delivered mail To address this issue, I introduced the Com- to my District Office since I was first elected HON. JON C. PORTER munity Coalitions for Access and Quality Im- to Congress in 2000. My staff and I look for- OF NEVADA provement Act, H.R. 3561. This legislation ward to his daily visits where he brightens our IN THE HOUSE OF REPRESENTATIVES would provide grants to community health ac- day with jokes and stories. Perry has served cess coalitions to implement best practices the people of Saint Paul as a letter carrier for Thursday, May 8, 2008 proven to reduce health care costs, achieve 28 years and has delivered mail on his current Mr. PORTER. Madam Speaker, it is my dis- better health outcomes and improve access to route for over twenty. It takes him six hours to tinct pleasure to rise today to honor my friend health care for uninsured and low-income deliver mail each day to over 350 stops. Perry Harvey Allen by entering his name in the CON- Americans. is a designated letter carrier trainer and during GRESSIONAL RECORD, the official record of the Congress should enact legislation to provide his time with the Post Office has trained over proceedings and debates of the United States all Americans with health insurance. Ideally, a hundred carriers. He is also an active mem- Congress since 1873. Today I pay tribute to

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00025 Fmt 0626 Sfmt 9920 E:\CR\FM\A08MY8.069 E08MYPT1 wwoods2 on PRODPC68 with REMARKS E880 CONGRESSIONAL RECORD — Extensions of Remarks May 8, 2008 Harvey Allen for his service as an educator in TRIBUTE TO JOHN SCHWARTZ Madam Speaker, I am extremely proud of the Nevada higher education system for over the accomplishments of the Warrior volleyball thirty years. HON. MARILYN N. MUSGRAVE team, both on and off the court, and I am Harvey served as a full time professor of OF COLORADO proud to serve them in Congress. Broadcasting, English, Journalism, Speech, IN THE HOUSE OF REPRESENTATIVES f Acting, and Theater at the Community College Thursday, May 8, 2008 CONGRATULATING AMERICAN UNI- of Southern Nevada for 30 years before retir- Mrs. MUSGRAVE. Madam Speaker, I rise VERSITY OF ANTIGUA & BAR- ing at age 75. His dedication to higher edu- BUDA cation stretched beyond the classroom as he today to pay tribute to the heroism and self directed the first student produced play at sacrifice of firefighter John Schwartz, 38, who CCSN, served as faculty advisor for the col- died in the line of duty on Tuesday, April 15, HON. CHARLES B. RANGEL lege newspaper, served as a Faculty Senate 2008, while driving to the scene of a brush fire OF NEW YORK Member, and established an internship pro- threatening a nearby community. IN THE HOUSE OF REPRESENTATIVES When John heard the distress call Tuesday gram for Broadcasting and Journalism stu- Thursday, May 8, 2008 dents. During this time, Harvey also served as afternoon from nearby Ordway, Colorado, he Mr. RANGEL. Madam Speaker, I rise today a visiting professor at the University of Nevada jumped in his fire engine with Fire Chief Terry to congratulate American University of Antigua Las Vegas. Harvey’s own education includes DeVore to try to help. A massive wild fire was & Barbuda on its newly announced initiative earning four degrees from Modesto Jr. Col- burning across the prairie and the smoke was establishing a school that will address the lege, San Diego State University, and the Uni- so thick that John and Terry could not see the nursing shortage occurring in the United versity of Nevada, Las Vegas. bridge burned out in front of them. Terry’s fa- ther Bruce, a fire department volunteer, was States and abroad. In addition to his work in higher education, right behind them when he noticed their tail The American University of Antigua & Bar- Harvey has been influential within the broad- lights disappear. Bruce and the other fire- buda aims to create a nursing school that pro- casting community. In 2007, Harvey was in- fighters stopped and tried to fight the inferno vides Caribbean nationals with a place to pur- ducted into the Nevada Broadcasters Hall of in front of them, but it was a hopeless fight. sue higher education in the healthcare indus- Fame citing his many professional accomplish- John and Terry were good friends and try as well as an alternative location of study ments which included hosting numerous radio worked together at the Arkansas Valley Cor- for international students. Through its’ historic talk shows and writing for several Las Vegas rectional Facility and John had recently joined affiliation with CUNY’s Lehman College, AUA publications. Olney Springs’ volunteer fire department. hopes to improve the medical standards of Madam Speaker, I am proud to honor the John’s father told a newspaper that John care throughout the Caribbean. The program life of Harvey Allen. His dedication to enriching joined the department because he liked the allows AUA students who have completed lives through education and broadcasting has idea of doing something for the community. their Associates Degree in Nursing with the touched countless Nevadans. I applaud his ef- John attended Centennial High School in option to transition directly into the bacca- forts and wish him the best in his future en- Pueblo, Colorado, and served in the U.S. Air laureate program at the Lehman college for a deavors. Force for 4 years before returning to the mere 2 years. In a time when there is a 6 year Fowler area. John raised horses, cattle, and wait list to attend nursing college, the creation f goats on a small ranch and he loved to hunt of this program serves a model to produce and shoot with his sons, ages 4 to 15, John, more qualified nurses in an attempt to allevi- TROOPS NEED YOU Wyatt, Wesley, and Cody. ate the nursing shortage. AUA also hopes to John left behind his four boys, as well as his provide students with scholarships, in order to parents John and Toni Schwartz. allow those people from lower-income families HON. JOE WILSON Madam Speaker, I am honored to represent to pursue higher education. OF SOUTH CAROLINA John and other men and women who sacrifice It is my sincere hope that other Colleges so much to care for their communities. I urge and Universities around the world will join the IN THE HOUSE OF REPRESENTATIVES my colleagues to join me in mourning the loss American University of Antigua & Barbuda in Thursday, May 8, 2008 of a great American and in expressing heart- providing feasible alternatives to the nursing felt gratitude and sincere appreciation for the shortage, while simultaneously allowing mi- Mr. WILSON of South Carolina. Madam service of John Schwartz. norities and people from lower income families Speaker, throughout our history, Americans f to further their education. have risen up to help our troops win wars— f from merchants and storekeepers in the Revo- RECOGNIZING WAPSIE VALLEY lutionary War to Rosie the Riveter in World WARRIORS VOLLEYBALL TEAM TRIBUTE TO SHAWNEE MISSION War II. Today, that tradition continues, as av- SCHOOL DISTRICT SUPER- erage citizens directly support our troops in HON. BRUCE L. BRALEY INTENDENT Iraq and in Afghanistan. OF IOWA A non-profit charity called Troops Need You IN THE HOUSE OF REPRESENTATIVES HON. DENNIS MOORE delivers resources our troops need—from Thursday, May 8, 2008 OF KANSAS medical supplies and equipment to school IN THE HOUSE OF REPRESENTATIVES Mr. BRALEY of Iowa. Madam Speaker, I supplies and water purification systems, Thursday, May 8, 2008 Troops Need You was founded by a military rise today to recognize the outstanding results man himself, Major Eric Egland, an intel- achieved by the Wapsie Valley Warriors Mr. MOORE of Kansas. Madam Speaker, I ligence officer and former counter-terrorism volleyball team at the State volleyball tour- rise today to acknowledge Dr. Marjorie operative who has served around the world, nament in Cedar Rapids this past fall. Kaplan, Superintendent of the Shawnee Mis- including in Afghanistan and Iraq. He knows Wapsie Valley and Holy Trinity were tied at sion School District, who is retiring at the end what it takes to win. two games apiece going into the final match. of this school year, after 16 years of extraor- With the game tied at 12, Wapsie Valley got dinary leadership for her district, and for the Troops Need You has already mobilized a big hit from Carly Wehling and a tip by greater Kansas City area. over one thousand Americans, and is based Eryca Hingtgen to get a match point at 14–12. Dr. Kaplan came to Shawnee Mission in on innovations so effective that they earned Holy Trinity fought off the match point with a 1992 after a distinguished career in Arizona. not only a partnership with General David spike, but Wehling finished out the game with She is returning to the Phoenix area where Petraeus but even praise from the President her 13th and final kill of the match. she will be close to her children and grand- of the United States himself. The third ranked Wapsie Valley (39–1) won children. We are at a critical point in Iraq, defeating the first two games and withstood a Holy Trin- My congressional district is blessed with the terrorists to deny them a safe haven to at- ity comeback to earn a 27–25, 26–24, 22–25, some of the best schools in the country. I tack American families and our allies. Success 20–25, 15–13 victory and their second straight know many Members of Congress feel that requires more Americans to rise up and help Class 1A State volleyball championship. I con- way, but I know this is the case. Where I live, our troops succeed. A great way to do that is gratulate the Warriors on their hard fought vic- among many outstanding school districts, through Troops Need You. tory. Shawnee Mission schools remain the gold

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00026 Fmt 0626 Sfmt 9920 E:\CR\FM\K08MY8.013 E08MYPT1 wwoods2 on PRODPC68 with REMARKS May 8, 2008 CONGRESSIONAL RECORD — Extensions of Remarks E881 standard in our area. During her tenure, Dr. by act of Congress. It is important to note that This led the newspaper to conclude that Kaplan has reinforced this perception and con- results of independent studies of this nation- ‘‘The great number of warrants granted, com- tinually raised this standard. ally acclaimed program have shown that We pared to just three denied, indicates that the I have come to admire and respect Dr. the People students have gained a greater po- spy court is no great impediment to national Kaplan, who has never been shy about giving litical tolerance and attained an excellent un- security’’ and, with regard to the Bush admin- me very good advice on education issues and derstanding of the Constitution and Bill of istration’s proposals to rewrite FISA, ‘‘The sus- legislation. I know how much good schools Rights. With many reports and surveys indi- picion here is that the Bush administration mean to my constituents, so I have always cating the lack of civic knowledge and civic simply doesn’t want any checks on its eaves- heeded her expertise and guidance. participation, I am pleased to support such a dropping powers.’’ The Shawnee Mission district includes older superb program that is producing an enlight- I think that is a pretty accurate appraisal. suburban areas and is surrounded by newer, ened and engaged citizenry. For the information of our colleagues, here fast growing areas. Under Dr. Kaplan’s leader- I am proud to announce that the state of is the full text of the editorial: ship, and thanks to confidence in the district, Minnesota was represented by a class from [From the Rocky Mountain News, May 2, Shawnee Mission patrons have passed a se- Duluth Central High School at this prestigious 2008] ries of school bond issues which allowed the national event. These outstanding students, SPY COURT KEEPING UP WITH WIRETAP district to renew its building stock, while com- through their knowledge of the U.S. Constitu- REQUESTS bining some elementary school populations. tion, won their statewide competition and The Bush administration has been assert- During the past 16 years, Dr. Kaplan and earned the chance to come to our nation’s ing the right to wiretap without seeking a Shawnee Mission schools have: capital and compete at the national level. The warrant from a special court set up for that Brought rigorous International Baccalaureate names of these outstanding students from Du- purpose under the 30-year-old Foreign Intel- luth Central High School are: Leanna Albert- ligence Surveillance Act. programming to area high school students However, a Justice Department report on since 1996, and greatly increased advanced son, Sharlene Balik, Krista Benko, Gregory the court’s wiretap approvals suggests it is placement classes; Strengthened the district’s Bongey, John Brakke, Whitney Buck, Jessica not quite the hurdle the administration Center for International Studies and further de- Churchill, Kylie Dalager, Alissa EIke, Chad made it out to be. Last year, the court ap- veloped the languages offered through the Erlemeier, Zack Filipovich, Jordan Foschi, proved 2,370 warrants seeking wiretaps of program; Transformed career and technical Nicholas Foucault, Robert Gitar, Daniel people in this country believed to be in con- education courses and programs with award Gunderson, Matthew Harold, Elizabeth tact with international terrorist organiza- winning programs in culinary arts, commercial Hauschildt, Garth Heikkinen, Amy Hietala, tions. Grace Larsen, Joseph Makynen, Marina The court denied just three warrant appli- baking, graphic design, multimedia, and com- cations and partially denied another; 86 puter training; Brought in engineering tech- McCuskey, Jason Michalicek, Hannah Olson, times the court asked the government to nology, biotechnology, and biomedical health Liza Pierre, Jessica Primozich, Molly Prudden, amend its applications before granting ap- science programs; Introduced the Open Court Matthew Roberts, Eric Stokes, and Joseph proval. The year before, the court denied reading program; and Continually produced Von Rueden. only one application and that just partially. students who outperform their Kansas and US While in Washington, the students partici- This hardly sounds like an onerous approval peers on standardized tests, including the pated in a three-day academic competition process. Since the number of warrants being sought ACT and the SAT. For several years, Shaw- that simulates a congressional hearing in which they ‘‘testified’’ before a panel of judges. has more than doubled since 9/11, it also nee Mission produces about 20 percent of the sounds as if the court is having no problem Kansas National Merit finalists, despite having Students demonstrated their knowledge and keeping up with the workload. The suspicion only 6 percent of the state’s population. understanding of constitutional principles as here is that the Bush administration simply Although a talented administrator, Dr. they evaluated, took, and defended positions doesn’t want any checks on its eaves- Kaplan has made it a point to substitute teach on relevant historical and contemporary dropping powers. And in seeking a rewrite of in every building throughout the school year. issues. the surveillance law, the administration did Perhaps because of this, her teachers and ad- I also wish to commend the teacher of the in fact seek to greatly expand its powers to class, Ethan Fisher, who was responsible for wiretap without warrants. ministrators know how much she cares, and The great number of warrants granted, understands their difficulties and joys at the preparing these young constitutional experts for the National Finals. Also worthy of special compared to just three denied, indicates that classroom level. Educators today face new the spy court is no great impediment to na- challenges, with increasing numbers of chil- recognition is Jennifer Bloom, the state coordi- tional security. nator, who is responsible for implementing the dren who do not speak English at home and f with problems of school funding and federal We the People program in the great state of education programs. Despite it all, this district Minnesota. PAYING TRIBUTE TO JADE has continued to succeed. I applaud the exceptional achievements of ANDERSON Madam Speaker, thank you for allowing me these students. the time to pay tribute to an outstanding edu- f HON. JON C. PORTER cator who I am proud to call a friend, Dr. Mar- FISA COURT IS DOING ITS JOB OF NEVADA jorie Kaplan. IN THE HOUSE OF REPRESENTATIVES f HON. MARK UDALL Thursday, May 8, 2008 RECOGNIZING DULUTH CENTRAL OF COLORADO Mr. PORTER. Madam Speaker, it is my dis- HIGH SCHOOL FOR PARTICIPA- IN THE HOUSE OF REPRESENTATIVES tinct pleasure to rise today to honor Jade An- TION IN THE 2008 WE THE PEO- Thursday, May 8, 2008 derson by entering his name in the CONGRES- PLE NATIONAL FINALS Mr. UDALL of Colorado. Madam Speaker, SIONAL RECORD, the official record of the pro- as Congress has debated how to update the ceedings and debates of the United States HON. JAMES L. OBERSTAR Foreign Intelligence Surveillance Act, FISA, Congress since 1873. Today I pay tribute to OF MINNESOTA some have said that law is completely out- Jade Anderson, owner and CEO of Capstone IN THE HOUSE OF REPRESENTATIVES dated. Brokerage, Inc., for his small-business I support revisions to reflect changes in achievements throughout the Las Vegas com- Thursday, May 8, 2008 technology since FISA was enacted, but I munity. Mr. OBERSTAR. Madam Speaker, from think it is important to recognize that the basic Jade Anderson is a graduate from the Uni- May 3–5, 2008, more than 1200 students from law is sound and does not prevent the Gov- versity of Nevada, Las Vegas with a degree in across the country visited Washington, D.C. to ernment from acting to protect Americans. Business Administration. He began Capstone take part in the National Finals of We the Peo- That point was well put in a recent editorial Brokerage Inc. shortly after graduation, first as ple: The Citizen and the Constitution, one of in the Rocky Mountain News, noting that the a part-time venture for about five years. He the most extensive educational programs in Justice Department has reported that in 2007 shifted gears in 2002 deciding to put all of his the country developed to educate young peo- the special FISA court approved some 2,370 energy into growing his company. His com- ple about the U.S. Constitution and Bill of warrants authorizing surveillance of people in pany also serves as a connection to other Rights. Administered by the Center for Civic the United States believed to be in contact successful entrepreneurs and business minds Education, the We the People program is with international terrorist organizations while around the globe. In addition to running Cap- funded by the U.S. Department of Education denying only 3 requests for such warrants. stone, Jade is a member of the Las Vegas

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00027 Fmt 0626 Sfmt 9920 E:\CR\FM\A08MY8.078 E08MYPT1 wwoods2 on PRODPC68 with REMARKS E882 CONGRESSIONAL RECORD — Extensions of Remarks May 8, 2008 Chapter of the Entrepreneurs Organization cated public servant on May 13, 2008 when complishments as well. ‘‘My wife has given of (EO). Through this organization, he has been my friend Mrs. Lynn Fields retires after serving herself, unselfishly, for the students of our able to apply to the Massachusetts Institute of 14 years as a board member. area,’’ he said. ‘‘She has led in the areas of Technology’s (MIT) Entrepreneurs Masters I met Lynn when she was a reporter for the character, alcohol and drug education, and Program where he meets annually for one Baytown Sun back in the 1980s and I was a Spanish immersion for those students wishing week with other CEOs and entrepreneurs and Texas Judge. Since those days, Lynn Fields to become bilingual. She is an outstanding listens to business leaders and professors has served as the voice of a mother and com- woman, mother and wife. Our area and my speak on issues related to running their own munity volunteer on the Humble ISD school family are benefited by her years of service. businesses board who always looked out for the best in- She is the model for those who serve in their Today, Jade is also focused on making cer- terests of our children. She faithfully carried communities. I could not be more proud of tain that his company gives back to the com- the torch of public service passed to her from her. I am honored to be her husband. I love munity. He gives a large portion of time to her father-in-law, Jack Fields Sr., who pre- her very much.’’ Olive Crest, a nonprofit organization that sup- viously served the district as board member ports the prevention and treatment of child for 21 years. It is an honor today to recognize the great abuse. He also serves on the Board of Direc- Over the years, she worked hard at improv- contributions that Lynn Fields has made to tors of Olive Crest and assists with fundraising ing services for students in both educational Humble ISD and the community. Madam and volunteer efforts. and social areas. She initiated the district’s Speaker, we thank Lynn, for her years of serv- Madam Speaker, I am proud to honor Jade pursuit of a Spanish immersion program at ice, principled leadership and dedication to our Anderson and would like to recognize his two Humble elementary schools. She led the children. I wish her the best of luck in her fu- small-business accomplishments within the district with efforts to reduce alcohol and drug ture endeavors. Las Vegas community. I would also like to use among children with programs such as And that’s just the way it is. congratulate him on receiving the Small Busi- ‘‘Common Ground,’’ which resulted in in- ness Person of the Year at the 2008 Small creased awareness of the dangers of binge f Business Awards. drinking and the importance of students’ mak- f ing responsible decisions in social situations. PROVIDING FOR COMPENSATION Many of her friends and colleagues have TRIBUTE TO MIKE KEEFE TO STATES INCARCERATING UN- spoken kind words in describing her dedica- DOCUMENTED ALIENS tion to public service. ‘‘Lynn’s heart is as big HON. TOM LATHAM as the state of Texas,’’ said Dave Martin, OF IOWA President of the Humble ISD Board of Trust- SPEECH OF IN THE HOUSE OF REPRESENTATIVES ees. ‘‘We could always count on Lynn’s guid- Thursday, May 8, 2008 ance to lead us down the direction and path HON. SAM FARR that put the morality and ethical issues of our Mr. LATHAM. Madam Speaker, I rise to rec- OF CALIFORNIA students first.’’ ognize the retirement of Mike Keefe from the Lynn Fields and Humble ISD Super- IN THE HOUSE OF REPRESENTATIVES State of Iowa Fire Marshall’s Office, and to ex- intendent, Dr. Guy Sconzo, have hosted a Tuesday, May 6, 2008 press my appreciation for his dedication and monthly cable access show called ‘‘Your commitment for the past 32 years for the safe- Schools,’’ which spotlights people and pro- Mr. FARR. Mr. Speaker, I rise today in ty of Iowans. grams within the district. She received the After receiving a business administration de- strong support of H.R. 1512, legislation to School Bell Award for outstanding media cov- gree in 1975, Mike began volunteering for the compensate the States for incarcerating un- erage of educational news for the program by Decorah, Iowa fire department. While on the documented criminal aliens. the Texas Retired Teachers Association. job, the fire department was called to a fire at ‘‘Lynn is frankly just one of the kindest, most The State Criminal Alien Assistance Pro- the church he attended and where his mother caring servant leaders I have ever met,’’ said gram, commonly referred to as SCAAP, is a worked as a secretary. He rescued his mother Dr. Sconzo about working with Lynn. ‘‘Through very effective federal-local government part- by helping her out a window. The fire officials literally every very difficult budget development nership that deserves robust funding from the asked Mike to assist in their investigation, and crisis and challenging growth issues that face Bush Administration. afterwards Mike was encouraged to apply for our district, Lynn always kept the discussion a position with the Iowa Fire Marshall’s Office. Currently, SCAAP funding is about $175 focused on what’s best for children.’’ million less than what it was in fiscal year He was offered and accepted a job in 1976 Lynn Fields has also experienced many with the office as an investigator. Over the 1998, and falls far short of meeting the actual wonderful personal moments in her 14-year costs incurred by local jurisdictions. In my years Mike has investigated nearly 3,000 fires, tenure as school board member including the providing reliable and dedicated service to home state of California, we received about opportunity to hand two of her children their $110 million for this program in 2007. How- many Iowans. high school diplomas at their graduation. She I know that my colleagues in the United ever, the California Department of Corrections also watched with pride when the board of actually spent more than $912.5 million of its States Congress join me in commending Mike trustees named an elementary school after her Keefe for his service to the State Fire Mar- own money to arrest and hold these criminal late father-in-law Jack Fields Sr. shall’s Office and the people of Iowa. I con- aliens. Like many other states, California is In addition to her efforts in the school dis- cutting funding in education and other pro- sider it an honor to represent Mike in Con- trict, she is also an active community leader in grams in an effort to balance its budget; by gress and I wish him and his wife, Susan, a several organizations. Lynn is a member of underfunding SCAAP, the Bush Administration long, happy and healthy retirement. Humble Area First Baptist Church. She is a is forcing California to spend upwards of $800 f Light Keeper member of Mothers Against million of its own money, foisting a federal re- Drunk Driving and serves as MADD Southeast LYNN FIELDS—COMMUNITY sponsibility on our local governments. SERVANT FOR EDUCATION Texas Regional Council Chair. She has been a long-time advocate for women and children. H.R. 1512 restores the original partnership Lynn started the Bay Area Women’s Center in and allows our local law enforcement officials HON. TED POE to focus on protecting our communities. If we OF TEXAS Baytown in 1981. With the help of her hus- are truly serious about removing these dan- IN THE HOUSE OF REPRESENTATIVES band, former Congressman Jack Fields, they raised funds to help open ‘‘The Door,’’ a shel- gerous criminal aliens from our country, we Thursday, May 8, 2008 ter for battered women in the Humble area. must make sure that we provide state and Mr. POE. Madam Speaker, the Humble ISD Jack Fields has been a long-time friend of local law enforcement officers with all the tools board of trustees will say farewell to a dedi- mine, and he is extremely proud of Lynn’s ac- they need to succeed.

VerDate Aug 31 2005 04:55 May 09, 2008 Jkt 069060 PO 00000 Frm 00028 Fmt 0626 Sfmt 9920 E:\CR\FM\K08MY8.012 E08MYPT1 wwoods2 on PRODPC68 with REMARKS Thursday, May 8, 2008 Daily Digest

HIGHLIGHTS House Committee ordered reported the Intelligence Authorization Act for Fiscal Year 2009. Senate and taking action on the following amendments pro- Chamber Action posed thereto: Pages S3946–66 Routine Proceedings, pages S3935–S3986 Adopted: Measures Introduced: Eight bills and three resolu- Dodd (for Coburn) Amendment No. 4724 (to tions were introduced, as follows: S. 2993–3000, and Amendment No. 4707), to study alternative ap- S. Res. 555–557. Page S3975 proaches to ensure the future of the National Flood Insurance Program by requiring greater efficiency Measures Reported: and financial accountability. Page S3961 S. 2996, to authorize appropriations for fiscal year Dodd (for Coburn) Amendment No. 4725 (to 2009 for intelligence and intelligence-related activi- Amendment No. 4707), to deny premium subsidies ties of the United States Government, the Commu- to homeowners who refuse to accept an offer of Fed- nity Management Account, and the Central Intel- eral assistance to alter or relocate their property in ligence Agency Retirement and Disability System. an effort to minimize future flood damages and (S. Rept. No. 110–333) costs. Page S3961 S.J. Res. 28, disapproving the rule submitted by Dodd (for McCaskill) Amendment No. 4727 (to the Federal Communications Commission with re- Amendment No. 4707), to impose a civil penalty for spect to broadcast media ownership. (S. Rept. No. noncompliance with certain reporting requirements. 110–334) Page S3961 S. Res. 537, commemorating and acknowledging Dodd (for McCaskill) Modified Amendment No. the dedication and sacrifice made by the men and 4728 (to Amendment No. 4707), to require clear women who have lost their lives while serving as law and comprehensible disclosure of conditions, exclu- enforcement officers. Pages S3974–75 sions, and other limitations pertaining to flood in- Measures Passed: surance coverage. Page S3962 Dodd (for Dole) Amendment No. 4730 (to Law Enforcement Officers: Senate agreed to S. Amendment No. 4707), to provide two additional Res. 537, commemorating and acknowledging the members to the Technical Mapping Advisory Coun- dedication and sacrifice made by the men and cil. Page S3962 women who have lost their lives while serving as law Dodd (for Menendez) Modified Amendment No. enforcement officers. Pages S3984–85 4733 (to Amendment No. 4707), to require the Di- Congratulating Charter Schools: Senate agreed to rector of the Federal Emergency Management Agen- S. Res. 556, congratulating charter schools and their cy to enhance communication and outreach to States, students, parents, teachers, and administrators across communities, and property owners about the effects the United States for their ongoing contributions to of changes to flood risk maps and flood insurance education. Pages S3985–86 purchase requirements, and to engage with commu- Measures Considered: nities to enhance communication and outreach to their residents on such matters. Page S3962 Flood Insurance Reform and Modernization Act: Dodd (for Thune/Johnson) Amendment No. 4735 Senate continued consideration of S. 2284, to amend (to Amendment No. 4707), to modify the project for the National Flood Insurance Act of 1968, to restore flood control, Big Sioux River and Skunk Creek, the financial solvency of the flood insurance fund, Sioux Falls, South Dakota. Page S3962 D573

VerDate Aug 31 2005 05:18 May 09, 2008 Jkt 069060 PO 00000 Frm 00001 Fmt 0627 Sfmt 0627 E:\CR\FM\D08MY8.REC D08MYPT1 wwoods2 on PRODPC68 with DIGEST D574 CONGRESSIONAL RECORD — DAILY DIGEST May 8, 2008 Dodd/Shelby Amendment No. 4736 (to Amend- gressional Budget Resolution, with respect to Dodd/ ment No. 4707), to ensure that the purchase price Shelby Amendment No. 4707, in the nature of a of flood insurance policies required to be purchased substitute. The point of order that the amendment in areas of residual risk accurately reflects the level was in violation of section 201 of S. Con. Res. 21, of flood protection provided by any levee, dam, or FY08 Congressional Budget Resolution, was not sus- other man-made structure in such area. Page S3962 tained. Page S3950 DeMint Amendment No. 4711 (to Amendment A unanimous-consent agreement was reached pro- No. 4707), to require the Director to conduct a viding that no further amendments be in order, ex- study on the impact, effectiveness, and feasibility of cept as provided in a previous agreement with re- amending section 1361 of the National Flood Insur- spect to McConnell and Reid amendments; that the ance Act of 1968 to include widely used and nation- previous order with respect to roll call votes on ally recognized building codes as part of the flood- Monday, May 12, 2008, be modified to reflect that plain management criteria developed under such sec- the previously ordered votes occur on Tuesday, May tion. Page S3946 13, 2008, after Senate convenes and following the Landrieu/Nelson (FL) Further Modified Amend- opening sequence of events, that there be 60 minutes ment No. 4706 (to Amendment No. 4707), to im- of debate equally divided and controlled between the prove the Office of the Flood Insurance Advocate. Leaders, or their designees, prior to the commence- Pages S3946, S3962–64 ment of the votes ordered under a previous order; By 68 yeas to 24 nays (Vote No. 122), Durbin that prior to each vote there be two minutes of de- Modified Amendment No. 4715 (to Amendment bate equally divided and controlled in the usual No. 4707), to provide that no changes in flood in- form, and that after the first vote in the sequence, surance status for any areas located in the St. Louis each succeeding vote be limited to ten minutes in District of the Corps of Engineers can go into effect duration; that the other provisions of the previous until the remapping process is completed for that order remain in effect; provided further, that if clo- entire District. Pages S3951–52, S3964–65 ture is invoked on the motion to proceed to consid- Withdrawn: eration of H.R. 980, Public Safety Employer-Em- Coburn Amendment No. 4716 (to Amendment ployee Cooperation Act, that all post-cloture time be No. 4707), to require persons located in flood prone yielded back, and the motion to proceed be agreed areas to hold flood insurance as a condition for re- to. Page S3964 ceiving federal disaster assistance. Pages S3947–48 Senate will resume consideration of the bill on Nelson (FL) Amendment No. 4709 (to Amend- Tuesday, May 13, 2008. ment No. 4707), to establish a National Catastrophe Nomination Confirmed: Senate confirmed the fol- Risks Consortium and a National Homeowners’ In- lowing nomination: surance Stabilization Program. Page S3946 William J. Burns, of the District of Columbia, to DeMint Modified Amendment No. 4710 (to be an Under Secretary of State (Political Affairs). Amendment No. 4707), to end the premium subsidy (Prior to this action, Committee on Foreign Rela- for any property purchased after the date of enact- tions was discharged from further consideration.) ment of this Act. Pages S3946, S3958–59 Page S3986 Ensign/Reid Amendment No. 4734 (to Amend- ment No. 4707), to provide compensation to the Nominations Received: Senate received the fol- citizens of Fernley, Nevada damaged by the failure lowing nominations: of the Truckee Canal. Pages S3950–51, S3960 Glen E. Conrad, of Virginia, to be United States Pending: Circuit Judge for the Fourth Circuit. Dodd/Shelby Amendment No. 4707, in the nature Donetta Davidson, of Colorado, to be a Member of a substitute. Page S3946 of the Election Assistance Commission for a term ex- McConnell Amendment No. 4720 (to the text of piring December 12, 2011. the bill proposed to be stricken by Amendment No. Rosemary E. Rodriguez, of Colorado, to be a 4707), of a perfecting nature. Page S3946 Member of the Election Assistance Commission for Allard Amendment No. 4721 (to Amendment a term expiring December 12, 2011. No. 4720), of a perfecting nature. Page S3946 A routine list in the Army. Page S3986 During consideration of this measure today, the Messages from the House: Page S3974 Senate also took the following action: Measures Referred: Page S3974 By 70 yeas to 26 nays (Vote No. 121), three-fifths of those Senators duly chosen and sworn, having Measures Placed on the Calendar: voted in the affirmative, Senate agreed to the motion Pages S3935, S3974 to waive section 201 of S. Con. Res. 21, FY08 Con- Executive Reports of Committees: Page S3975

VerDate Aug 31 2005 04:45 May 09, 2008 Jkt 069060 PO 00000 Frm 00002 Fmt 0627 Sfmt 0627 E:\CR\FM\D08MY8.REC D08MYPT1 wwoods2 on PRODPC68 with DIGEST May 8, 2008 CONGRESSIONAL RECORD — DAILY DIGEST D575

Additional Cosponsors: Pages S3975–76 U.S. CLIMATE MODELING Statements on Introduced Bills/Resolutions: Committee on Commerce, Science, and Transportation: Pages S3976–83 Committee concluded a hearing on improving the capacity of United States climate modeling—using Additional Statements: Pages S3973–74 quantitative methods to simulate the interactions of Amendments Submitted: Pages S3981–83 the atmosphere, oceans, land surface, and ice to Notices of Hearings/Meetings: Pages S3983–84 project the future climate, after receiving testimony from Alexander MacDonald, Deputy Assistant Ad- Authorities for Committees to Meet: Page S3984 ministrator for Laboratories and Cooperative Insti- Privileges of the Floor: Page S3984 tutes, Office of Oceanic and Atmospheric Research, Record Votes: Two record votes were taken today. National Oceanic and Atmospheric Administration, (Total—122) Pages S3950, S3965 Department of Commerce; James J. Hack, Director, National Center for Computational Sciences, Oak Adjournment: Senate convened at 9:30 a.m. and Ridge National Laboratory; Bruce K. Carlisle, Massa- adjourned at 5:42 p.m., until 2 p.m. on Monday, chusetts Executive Office of Energy and Environ- May 12, 2008. (For Senate’s program, see the re- mental Affairs, Boston; Daniel A. Reed, Computing marks of the Acting Majority Leader in today’s Research Association (CRA), Redmond, Washington; Record on page S3986.) Edward Sarachik, University of Washington, Seattle; and John E. Walsh, University of Alaska, Fairbanks. Committee Meetings MOVEMENT OF GOODS

(Committees not listed did not meet) Committee on Environment and Public Works: Com- mittee concluded a hearing to examine the impor- tance to the economy of the United States of the ef- APPROPRIATIONS: ARMY AND AIR FORCE ficient movement of goods on the nation’s highways Committee on Appropriations: Subcommittee on Mili- and to explore ways to improve the efficiency, after tary Construction, Veterans’ Affairs, and Related receiving testimony from Michael Gallis, Michael Agencies concluded a hearing to examine proposed Gallis and Associates, Charlotte, North Carolina; budget estimates for fiscal year 2009 for the United Charles Potts, Heritage Construction and Materials, States Army and Air Force, after receiving testimony Indianapolis, Indiana, on behalf of the American from Keith E. Eastin, Assistant Secretary for Installa- Road and Transportation Builders Association; and tions and Environment, Lieutenant General Robert Mortimer Downey, Coalition for America’s Gateways Wilson, U.S. Army Assistant Chief of Staff, Installa- and Trade Corridors, Washington, D.C. tion Management, Major General Raymond W. Car- SOCIAL SECURITY FIELD OFFICES penter, Special Assistant to the Director, Army Na- tional Guard, and Brigadier General Julia Ann Committee on Finance: Committee concluded a hearing Kraus, Deputy Chief, Army Reserve, all of the De- to examine Social Security field offices, focusing on partment of the Army, and Kathleen I. Ferguson, the resources and workforce needed to deliver quality Deputy Assistant Secretary for Installations, Briga- service to the public, after receiving testimony from dier General James Rubeor, Deputy to the Chief of Barbara D. Bovbjerg, Director, Education, Work- the Air Force Reserve, and Brigadier General Stanley force, and Income Security, Government Account- Clarke III, Deputy Director, Air National Guard, all ability Office; Linda S. McMahon, Deputy Commis- of the Department of the Air Force, all of the De- sioner for Operations, Social Security Administration; partment of Defense. Richard E. Warsinskey, National Council of Social Security Management Associations, Inc., Wash- FUTUREGEN PROGRAM ington, D.C.; and Witold Skwierczynski, American Federation of Government Employees (AFGE), Balti- Committee on Appropriations: Subcommittee on Energy more, Maryland. and Water Development concluded a hearing to ex- amine the Department of Energy’s decision to re- NEXT GENERATION OF FEDERAL structure the FutureGen program and obtain infor- EMPLOYEES mation about the elements of the original and re- Committee on Homeland Security and Governmental Af- vised approaches to advance carbon capture and stor- fairs: Subcommittee on Oversight of Government age technologies, after receiving testimony from Management, the Federal Workforce, and the Dis- Samuel W. Bodman, Secretary of Energy; and Paul trict of Columbia concluded a hearing to examine re- Thompson, FutureGen Alliance, Washington, D.C. cruiting and hiring the next generation of federal

VerDate Aug 31 2005 04:45 May 09, 2008 Jkt 069060 PO 00000 Frm 00003 Fmt 0627 Sfmt 0627 E:\CR\FM\D08MY8.REC D08MYPT1 wwoods2 on PRODPC68 with DIGEST D576 CONGRESSIONAL RECORD — DAILY DIGEST May 8, 2008 employees, after receiving testimony from Robert N. cations, with an amendment in the nature of a sub- Goldenkoff, Director, Strategic Issues, Government stitute; Accountability Office; Angela Bailey, Deputy Asso- S. 2504, to amend title 36, United States Code, ciate Director for Talent and Capacity Policy, United to grant a Federal charter to the Military Officers States Office of Personnel Management; John Crum, Association of America; and Acting Director, Office of Policy and Evaluation, S. Res. 537, commemorating and acknowledging United States Merit Systems Protection Board; James the dedication and sacrifice made by the men and F. McDermott, Director, Office of Human Re- women who have lost their lives while serving as law sources, United States Nuclear Regulatory Commis- enforcement officers. sion; John Gage, American Federation of Govern- INTELLIGENCE ment Employees (AFGE), AFL–CIO, Colleen M. Kelley, National Treasury Employees Union, Max Select Committee on Intelligence: Committee held closed Stier, Partnership for Public Service, and Dan Sol- hearings on intelligence matters, receiving testimony omon, Virilion, Inc., all of Washington, D.C.; and from officials of the intelligence community. Donna Mathews, Hewitt Associates, LLC, Falls Committee recessed subject to the call. Church, Virginia. BUSINESS MEETING Joint Meetings Committee on Homeland Security and Governmental Af- RUSSIAN FEDERATION PRESIDENT fairs: Committee ordered favorably reported the Commission on Security and Cooperation in Europe: Com- nominations of Nanci E. Langley, of Virginia, to be mission concluded a hearing to examine the future a Commissioner of the Postal Regulatory Commis- administration of the President of the Russian Fed- sion, and Andrew Saul, of New York, Alejandro Mo- eration Dmitri Medvedev, focusing on the United desto Sanchez, of Florida, and Gordon James Whit- States and Russia’s relationship, after receiving testi- ing, of New York, each to be a Member of the Fed- mony from Daniel Fried, Assistant Secretary of State eral Retirement Thrift Investment Board. for European and Eurasian Affairs; Celeste A. Wallander, Georgetown University Center for Eur- FIGHTING CANCER asian, Russian and East European Studies, and Ste- Committee on Health, Education, Labor, and Pensions: phen Blank, United States Army War College Stra- Committee concluded a hearing to examine cancer tegic Studies Institute, both of Washington, D.C.; relating to challenges and opportunities in the 21st and David Foglesong, Rutgers University Depart- century, after receiving testimony from Elizabeth Ed- ment of History, New Brunswick, New Jersey. wards, Center for American Progress, Steve Case, f Revolution LLC, and Gregory C. Simon, FasterCures, all of Washington, D.C.; Lance Armstrong, Lance NEW PUBLIC LAWS Armstrong Foundation, Austin, Texas; Edward J. (For last listing of Public Laws, see DAILY DIGEST, p. D569) Benz, Jr., Dana-Farber Cancer Institute, Boston, S. 2457, to provide for extensions of leases of cer- Massachusetts; and Hala Moddelmog, Susan G. tain land by Mashantucket Pequot (Western) Tribe. Komen for the Cure, Dallas, Texas. Signed on May 8, 2008. (Public Law 110–228) S. 2739, to authorize certain programs and activi- BUSINESS MEETING ties in the Department of the Interior, the Forest Committee on the Judiciary: Committee ordered favor- Service, and the Department of Energy, to imple- ably reported the following: ment further the Act approving the Covenant to Es- S. 2840, to establish a liaison with the Federal tablish a Commonwealth of the Northern Mariana Bureau of Investigation in United States Citizenship Islands in Political Union with the United States of and Immigration Services to expedite naturalization America, to amend the Compact of Free Association applications filed by members of the Armed Forces Amendments Act of 2003. Signed on May 8, 2008. and to establish a deadline for processing such appli- (Public Law 110–229)

VerDate Aug 31 2005 04:45 May 09, 2008 Jkt 069060 PO 00000 Frm 00004 Fmt 0627 Sfmt 0627 E:\CR\FM\D08MY8.REC D08MYPT1 wwoods2 on PRODPC68 with DIGEST May 8, 2008 CONGRESSIONAL RECORD — DAILY DIGEST D577 House of Representatives Rejected: Chamber Action Hensarling amendment (No. 4 printed in H. Public Bills and Resolutions Introduced: 28 pub- Rept. 110–621) that was debated on Wednesday, lic bills, H.R. 5993–6020; and 10 resolutions, H.J. May 7th that sought to strike all references in the Res. 82–83; H. Con. Res. 346–347; and H. Res. bill to providing grants to states, but leave the un- 1181–1186, were introduced. Pages H3401–03 derlying loan program intact. Money from the grant Additional Cosponsors: Pages H3403–05 portion of the bill ($7.5 billion) would be re-di- Reports Filed: Reports were filed today as follows: rected to the loan portion (for a total of $15 billion H.R. 3021, to direct the Secretary of Education to in loans) (by a recorded vote of 190 ayes to 219 make grants and low-interest loans to local edu- noes, Roll No. 295). Pages H3191–92 cational agencies for the construction, modernization, Agreed that the Clerk be authorized to make or repair of public kindergarten, elementary, and sec- technical and conforming changes to reflect the ac- ondary educational facilities, with an amendment (H. tions of the House. Page H3311 Rept. 110–623); H. Res. 1174, the rule providing for consideration H.R. 5781, to provide that 8 of the 12 weeks of of the bill, was agreed to on Wednesday, May 7th. parental leave made available to a Federal employee Suspensions—Proceedings Resumed: The House shall be paid leave, with an amendment (H. Rept. agreed to suspend the rules and pass the following 110–624, Pt. 1); and measures which were debated on Tuesday, May 6th: H.R. 752, to direct Federal agencies to donate ex- cess and surplus Federal electronic equipment, in- Prioritizing Resources and Organization for In- cluding computers, computer components, printers, tellectual Property Act of 2008: H.R. 4279, amend- and fax machines, to qualifying small towns, coun- ed, to enhance remedies for violations of intellectual ties, schools, nonprofit organizations, and libraries, property laws, by a 2⁄3 recorded vote of 410 ayes to with an amendment (H. Rept. 110–625). Page H3401 11 noes, Roll No. 300; Pages H3202–03 Speaker: Read a letter from the Speaker wherein she Recognizing National Nurses Week on May 6 appointed Representative McNulty to act as Speaker through May 12, 2008: H. Res. 1086, to recognize Pro Tempore for today. Page H3189 National Nurses Week on May 6 through May 12, Neighborhood Stabilization Act of 2008: The 2008; Page H3203 House passed H.R. 5818, to authorize the Secretary Exempting the African National Congress from of Housing and Urban Development to make loans treatment as a terrorist organization for certain to States to acquire foreclosed housing and to make acts or events, provide relief for certain members of grants to States for related costs, by a recorded vote the African National Congress regarding admissi- of 239 ayes to 188 noes, Roll No. 299. Consider- bility: H.R. 5690, amended, to exempt the African ation of the measure began on Wednesday, May 7th. National Congress from treatment as a terrorist orga- Pages H3191–S3202 nization for certain acts or events and to provide re- Rejected the Shadegg motion to recommit the bill lief for certain members of the African National to the Committee on Financial Services with instruc- Congress regarding admissibility; Page H3203 tions to report the same back to the House promptly Agreed to amend the title so as to read: ‘‘To re- with amendments, by a recorded vote of 210 ayes to move the African National Congress from treatment 216 noes, Roll No. 298. Pages H3196–S3202 as a terrorist organization for certain acts or events, Agreed to sustain the ruling of the chair on a provide relief for certain members of the African Na- point of order raised by Representative Westmore- tional Congress regarding admissibility, and for land by a recorded vote of 235 ayes to 182 noes with 6 voting ‘‘present’’, Roll No. 296. other purposes.’’. Page H3203 Pages H3193–94 Amending the Immigration and Nationality Act Accepted: to provide for compensation to States incarcerating Altmire amendment (No. 7 printed in H. Rept. undocumented aliens charged with a felony or two 110–621) that was debated on Wednesday, May 7th or more misdemeanors: H.R. 1512, to amend the that clarifies that illegal immigrants shall be ineli- Immigration and Nationality Act to provide for gible for financial assistance under the bill (by a re- compensation to States incarcerating undocumented corded vote of 391 ayes to 33 noes, Roll No. 297). aliens charged with a felony or two or more mis- Page H3194 demeanors; and Page H3203

VerDate Aug 31 2005 04:45 May 09, 2008 Jkt 069060 PO 00000 Frm 00005 Fmt 0627 Sfmt 0627 E:\CR\FM\D08MY8.REC D08MYPT1 wwoods2 on PRODPC68 with DIGEST D578 CONGRESSIONAL RECORD — DAILY DIGEST May 8, 2008 Coin Modernization and Taxpayer Savings Act to 222 nays, Roll No. 305. Consideration of the mo- of 2008: H.R. 5512, amended, to authorize the Sec- tion began on Wednesday, May 7th. Page H3309 retary of the Treasury to prescribe the weights and Commission on the Prevention of Weapons of the compositions of circulating coins. Pages H3203–04 Mass Destruction Proliferation and Terrorism— Agreed to amend the title so as to read: ‘‘To re- Appointment: Read a letter from Representative duce the costs of producing 1-cent and 5-cent coins, Boehner, Minority Leader, in which he appointed provide authority to the Secretary of the Treasury to perform research and development on new metallic Mr. Henry Sokolski of Arlington, Virginia and Mr. content for circulating coins, and to require biennial Stephen Rademaker of McLean, Virginia to the reports to Congress on circulating coin production Commission on the Prevention of Weapons of Mass costs and possible alternative metallic content.’’ Destruction Proliferation and Terrorism. Page H3309 Page H3204 Meeting Hour: Agreed that when the House ad- Foreclosure Prevention Act of 2008: The House journs today, it adjourn to meet at 2 p.m. on Mon- agreed to the Senate amendment with amendments, day, May 12th, and further, that when the House made in order by the rule and printed in H. Rept. adjourns on that day, it adjourn to meet at 12:30 110–622, to H.R. 3221, moving the United States p.m. on Tuesday, May 13th for morning hour de- toward greater energy independence and security, de- bate. Page H3311 veloping innovative new technologies, reducing car- Food and Energy Security Act of 2007—Motion bon emissions, creating green jobs, protecting con- to Instruct Conferees: The House began consider- sumers, increasing clean renewable energy produc- ation of the Upton motion to instruct conferees on tion, and modernizing our energy infrastructure, and H.R. 2419, to provide for the continuation of agri- to amend the Internal Revenue Code of 1986 to pro- cultural programs through fiscal year 2012. Further vide tax incentives for the production of renewable proceedings were postponed. Pages H3311–12 energy and energy conservation. Pages H3204–H3308 On a division of the question, the House agreed Food and Energy Security Act of 2007—Motion to the Senate amendment with amendment No. 1 to Instruct Conferees: The House began consider- printed in H. Rept. 110–622 by a yea-and-nay vote ation of the Skimkus motion to instruct conferees on of 266 yeas to 154 nays, Roll No. 301. H.R. 2419, to provide for the continuation of agri- Pages H3306–07 cultural programs through fiscal year 2012. Further On a division of the question, the House agreed proceedings were postponed. Pages H3312–17 to the Senate amendment with amendment No. 2 Food and Energy Security Act of 2007—Motion printed in H. Rept. 110–622 by a recorded vote of to Instruct Conferees: The House considered the 322 ayes to 94 noes, Roll No. 302. Page H3307 Terry motion to instruct conferees on H.R. 2419, to On a division of the question, the House agreed provide for the continuation of agricultural programs to the Senate amendment with amendment No. 3 through fiscal year 2012. Agreed by unanimous con- printed in H. Rept. 110–622 by a recorded vote of sent that the motion be withdrawn. Pages H3317–19 256 ayes to 160 noes, Roll No. 303. Pages H3307–08 Agreed that the Clerk be authorized to make Senate Message: Message received from the Senate technical and conforming changes to reflect the ac- today appears on page H3189. tions of the House. Page H3311 Senate Referrals: S. Con. Res. 72 was referred to H. Res. 1175, the rule providing for consideration the Committee on Foreign Affairs and S. Con. Res. of the Senate amendments, was agreed to on 81 was held at the desk. Page H3189 Wednesday, May 7th. Quorum Calls—Votes:Three yea-and-nay votes and Food and Energy Security Act of 2007—Motion eight recorded votes developed during the pro- to Instruct Conferees: Rejected the Flake motion ceedings of today and appear on pages H3192, to instruct conferees on H.R. 2419, to provide for H3193–94, H3194, H3201–02, H3202, H3203, the continuation of agricultural programs through H3306–07, H3307, H3307–08, H3308–09 and fiscal year 2012, by a yea-and-nay vote of 128 yeas H3309. There were no quorum calls. to 274 nays, Roll No. 304. Consideration of the mo- tion began on Tuesday, May 6th. Pages H3308–09 Adjournment: The House met at 10 a.m. and ad- Food and Energy Security Act of 2007—Motion journed at 9:28 p.m. to Instruct Conferees: Rejected the Cantor motion to instruct conferees on H.R. 2419, to provide for the continuation of agricultural programs through fiscal year 2012, by a yea-and-nay vote of 169 yeas

VerDate Aug 31 2005 04:45 May 09, 2008 Jkt 069060 PO 00000 Frm 00006 Fmt 0627 Sfmt 0627 E:\CR\FM\D08MY8.REC D08MYPT1 wwoods2 on PRODPC68 with DIGEST May 8, 2008 CONGRESSIONAL RECORD — DAILY DIGEST D579 Committee Meetings DIRECT-TO-CONSUMER ADVERTISING Committee on Energy and Commerce: Subcommittee on NATIONAL DEFENSE AUTHORIZATION Oversight and Investigations held a hearing entitled ACT FOR FISCAL YEAR 2009 ‘‘Direct-to-Consumer Advertising: Marketing, Edu- Committee on Armed Services: Subcommittee on Readi- cation, or Deception.’’ Testimony was heard from ness approved for full Committee action, as amend- Marcia G. Crosse, Director, Health Care, GAO; and ed, H.R. 5658, National Defense Authorization Act public witnesses. for Fiscal Year 2009. FEDERAL GULF COAST HOUSING FUNDS NATIONAL DEFENSE AUTHORIZATION Committee on Financial Services: Subcommittee on ACT FOR FISCAL YEAR 2009 Housing and Community Opportunity held a hear- ing entitled ‘‘Emergency CDBG Funds in the Gulf Committee on Armed Services: Subcommittee on Coast: Uses, Challenges, and Lessons for the Future.’’ Seapower and Expeditionary Forces approved for full Testimony was heard from Stanley Gimont, Acting Committee action, as amended, H.R. 5658, National Director, Block Grant Programs, Department of Defense Authorization Act for Fiscal Year 2009. Housing and Urban Development; Bill Johnson, Di- NATIONAL DEFENSE AUTHORIZATION rector, Department of Economic and Community Af- ACT FOR FISCAL YEAR 2009 fairs, State of Alabama; Gail Stafford, Administrator, Community Development Block Grant Funds, De- Committee on Armed Services: Subcommittee on Ter- partment of Community Affairs, State of Florida, rorism, Unconventional Threats and Capabilities ap- David Bowman, Director, Research and Special proved for full Committee action H.R. 5658, Na- Projects, Recovery Authority, State of Louisiana; Jack tional Defense Authorization Act for Fiscal Year Norris, Director, Governor’s Office of Recovery and 2009. Renewal, State of Mississippi; William Dally, Dep- uty Executive Director, Department of Housing and FINANCING INFRASTRUCTURE Community Affairs, State of Texas; and public wit- INVESTMENTS nesses. Committee on the Budget: and the Committee on Transportation and Infrastructure held a joint hear- U.S. MIDDLE EAST AID ing on Financing Infrastructure Investments. Testi- Committee on Foreign Affairs: Subcommittee on Mid- mony was heard from Peter R. Orszag, Director, dle East and South Asia held a hearing on U.S. As- CBO; and Patricia A. Dalton, Managing Director, sistance to the Middle East: Old Tools for New Physical Infrastructure Team, GAO. Tasks? Testimony was heard from the following offi- cials of the Department of State: C. David Welch, NATIONAL ARTS AND HUMANITIES Assistant Secretary, Bureau of Near Eastern Affairs; PROGRAMS and George A. Laudato, Administrator’s Special As- Committee on Education and Labor: Subcommittee on sistant for the Middle East, The Middle East Bureau, Healthy Families and Communities held a hearing U.S. Agency for International Development. on The National Endowment for the Humanities and the National Endowment for the Arts: Overview CENTRAL AMERICA ORGANIZED CRIME of Programs and National Impact. Testimony was INITIATIVE heard from the following officials of the National Committee on Foreign Affairs: Subcommittee on West- Foundation on the Arts and the Humanities: Bruce ern Hemisphere held a hearing on Central America Cole, Chairman, National Endowment for the Hu- and the Merida Initiative. Testimony was heard from manities; and Dana Gioia, Chairman, National En- Thomas A. Shannon, Assistant Secretary, Bureau of dowment for the Arts; William F. Glacken, Mayor, Western Hemisphere Affairs; and public witnesses. Freeport, New York; and public witnesses. PERFORMANCE-BASED ACQUISITIONS STEM CELL SCIENCE Committee on Homeland Security: Held a hearing enti- Committee on Energy and Commerce: Subcommittee on tled ‘‘Performance Based Acquisitions: Creating So- Health held a hearing entitled ‘‘Stem Cell Science: lutions or Causing Problems?’’ Testimony was heard The Foundation for Future Cures.’’ Testimony was from John Hutton, Director, Acquisition and heard from Elias A. Zerhouni, M.D., Director, NIH, Sourcing Management, GAO; Thomas Essig, Chief Department of Health and Human Services; and Procurement Officer, Department of Homeland Se- public witnesses. curity; and public witnesses.

VerDate Aug 31 2005 04:45 May 09, 2008 Jkt 069060 PO 00000 Frm 00007 Fmt 0627 Sfmt 0627 E:\CR\FM\D08MY8.REC D08MYPT1 wwoods2 on PRODPC68 with DIGEST D580 CONGRESSIONAL RECORD — DAILY DIGEST May 8, 2008 MISCELLANEOUS MEASURES sor, Office of the Deputy Director for Science and Pro- Committee on the Judiciary: Subcommittee on Immi- grams, Department of Energy; and a public witness. gration, Citizenship, Refugees, Border Security and MEDICARE PHYSICIAN FEE CUTS SMALL International Law approved for full Committee ac- PRACTICE IMPACTS tion, as amended, H.R. 4080, To amend the Immi- Committee on Small Business: Held a hearing entitled gration and Nationality Act to establish a separate nonimmigrant classification for fashion models. ‘‘Medicare Physician Fee Cuts: Can Small Practices The Subcommittee also approved private relief Survive.’’ Testimony was heard from Herb B. Kuhn, bills. Deputy Administrator, Centers for Medicare and Medicaid Services, Department of Health and MISCELLANEOUS MEASURES Human Services; and public witnesses. Committee on Natural Resources: Subcommittee on FOSTER CHILDREN’s PSYCHOTROPIC Fisheries, Wildlife and Oceans held a hearing on the MEDICATION USE following bills: H.R. 3840, To prohibit commercial fishing of Atlantic menhaden for reduction purposes Committee on Ways and Means: Subcommittee on In- in inland, State, and Federal water along the Atlan- come Security and Family Support held a hearing on tic coast of the United States, and for other pur- the Utilization of Psychotropic Medication for Chil- poses; and H.R. 3841, To prohibit the commercial dren in Foster Care. Testimony was heard from Jeff- harvesting of Atlantic menhaden for reduction pur- ery Thompson, M.D., Department of Social and poses in the coastal waters and the exclusive eco- Health Services, State of Washington; Tricia Lea, Di- nomic zone. Testimony was heard from Peyton Rob- rector, Medical and Behavioral Services, Department ertson, Director, Chesapeake Bay Office, NOAA, De- of Children’s Services, State of Tennessee; and public partment of Commerce; and public witnesses. witnesses MISCELLANEOUS MEASURES INTELLIGENCE AUTHORIZATION FISCAL Committee on Natural Resources: Subcommittee on YEAR 2009 Water and Power held a hearing on the following Permanent Select Committee on Intelligence: Ordered re- bills: H.R. 155, Lower Brule and Crow Creek Tribal ported, as amended, H.R. 5959, Intelligence Au- Compensation Act; H.R. 5511, Leadville Mine thorization Act for fiscal Year 2009. Drainage Tunnel Remediation Act of 2008; and H.R. 5710, Eastern New Mexico Rural Water Sys- CLIMATE MEASURES—ROLE OF EFFICIENCY tem Authorization Act. Testimony was heard from POLICIES Robert Quint, Director of Operations, Bureau of Select Committee on Energy Independence and Global Reclamation, Department of the Interior; Martha Warming: Held a hearing entitled ‘‘Negawatts: The Rudolph, Director, Environmental Programs, De- Role of Efficiency Policies in Climate Legislation.’’ partment of Public Health and Environment, State Testimony was heard from Paul DeCotis, Deputy of Colorado; and public witnesses. Secretary of Energy, State of New York; Dian UNIVERSAL MAIL ECONOMICS Grueneich, Commissioner, Public Utilities Commis- sion, State of California; and public witnesses. Committee on Oversight and Government Reform: Sub- committee on Federal Workforce, Postal Service and f the District of Columbia held a hearing on The Eco- CONGRESSIONAL PROGRAM AHEAD nomics of Universal Mail Post PAEA. Testimony was heard from the following officials of the U.S. Week of May 12 through May 17, 2008 Postal Service: John E. Potter, Postmaster General, Senate Chamber and CEO; and David C. Williams, Inspector Gen- eral; Dan Blair, Chairman, Postal Regulatory Com- On Monday, Senate will be in a period of morning mission; and public witnesses. business. On Tuesday, Senate will resume consideration of S. WOMEN IN ACADEMIC SCIENCE/ 2284, Flood Insurance Reform and Modernization ENGINEERING Act, vote on certain amendments and on passage of Committee on Science and Technology: Subcommittee on Research and Science Education held a hearing on Ful- the bill; following which, Senate will vote on the filling the Potential of Women in Academic Science and motion to invoke cloture on the motion to proceed Engineering Act of 2008. Testimony was heard from to consideration of H.R. 980, Public Safety Em- Lynda T. Carlson, Director, Division of Science Resource ployer-Employee Cooperative Act. Statistics, Directorate for Social, Behavioral and Economic During the balance of the week, Senate may con- Sciences, NSF; Linda G. Blevins, Senior Technical Advi- sider any cleared legislative and executive business.

VerDate Aug 31 2005 04:45 May 09, 2008 Jkt 069060 PO 00000 Frm 00008 Fmt 0627 Sfmt 0627 E:\CR\FM\D08MY8.REC D08MYPT1 wwoods2 on PRODPC68 with DIGEST May 8, 2008 CONGRESSIONAL RECORD — DAILY DIGEST D581 Senate Committees May 15, Full Committee, to hold hearings to examine nuclear terrorism, focusing on providing medical care and (Committee meetings are open unless otherwise indicated) meeting basic needs in an aftermath, 10 a.m., SD–342. Committee on Appropriations: May 14, Subcommittee on May 15, Subcommittee on Oversight of Government Defense, to hold hearings to examine proposed budget es- Management, the Federal Workforce, and the District of timates for fiscal year 2009 for the United States Na- Columbia, to hold hearings to examine the organizational tional Guard and Reserve, 9:30 a.m., SD–192. structures of the State Department responsible for arms May 14, Subcommittee on Financial Services and Gen- control, counterproliferation, and nonproliferation, focus- eral Government, to hold hearings to examine proposed ing on the processes they have in place for optimizing na- budget estimates for fiscal year 2009 for the Federal tional efforts, and how responsive those structures and Trade Commission, 3 p.m., SD–192. processes are to the Executive Branch’s nonproliferation May 15, Full Committee, business meeting to mark up and counterproliferation polices, 2 p.m., SD–342. the Emergency Supplemental Appropriations Bill for fis- Committee on Indian Affairs: May 13, to hold an over- cal year 2008, 2 p.m., SD–106. sight hearing to examine the successes and shortfalls of Committee on Armed Services: May 15, business meeting Title IV of the Indian Self-Determination and Education to consider pending military nominations, 9:30 a.m., Assistance Act, focusing on 20 years of self-governance, SR–222. 2:30 p.m., SD–562. Committee on Banking, Housing, and Urban Affairs: May May 15, Full Committee, to hold hearings to examine 15, to hold hearings to examine the condition of our na- S. 1080, to develop a program to acquire interests in land tion’s infrastructure, focusing on perspectives from our from eligible individuals within the Crow Reservation in nation’s mayors, 10 a.m., SD–538. the State of Montana, H.R. 2120, to direct the Secretary Committee on Commerce, Science, and Transportation: May of the Interior to proclaim as reservation for the benefit 13, to hold an oversight hearing to examine the Presi- of the Sault Ste. Marie Tribe of Chippewa Indians a par- dent’s proposed budget request for fiscal year 2009 for cel of land now held in trust by the United States for the Transportation Security Administration (TSA), 10 that Indian tribe, S. 2494, to provide for equitable com- a.m., SR–253. pensation to the Spokane Tribe of Indians of the Spokane May 14, Subcommittee on Consumer Affairs, Insur- Reservation for the use of tribal land for the production ance, and Automotive Safety, to hold hearings to examine of hydropower by the Grand Coulee Dam, H.R. 2963, to plastic additives in consumer products, 10 a.m., SR–253. transfer certain land in Riverside County, California, and Committee on Energy and Natural Resources: May 13, to San Diego County, California, from the Bureau of Land hold hearings to examine the impacts of climate change Management to the United States to be held in trust for on the reliability, security, economics, and design of crit- the Pechanga Band of Luiseno Mission Indians, and S. ical energy infrastructure in coastal regions, 10 a.m., SD–366. 531, to repeal section 10(f) of Public Law 93–531, com- May 15, Full Committee, to hold hearings to examine monly known as the ‘‘Bennett Freeze’’, 9:30 a.m., development of oil shale resources, 2:30 p.m., SD–366. SD–562. Committee on Environment and Public Works: May 13, to Committee on the Judiciary: May 13, to hold hearings to hold hearings to examine proposed legislation on mer- examine the Bulletproof Vest Partnership program, focus- cury, 10 a.m., SD–406. ing on protecting our nation’s law enforcement officers, Committee on Finance: May 13, to hold hearings to ex- 10 a.m., SD–226. amine cracking the code, focusing on tax reform for indi- May 15, Full Committee, to hold hearings to examine viduals, 10 a.m., SD–215. S. 2913, to provide a limitation on judicial remedies in Committee on Foreign Relations: May 14, to hold hearings copyright infringement cases involving orphan works, S. to examine responding to the global food crisis, 9:30 2511, to amend the grant program for law enforcement a.m., SD–419. armor vests to provide for a waiver of or reduction in the May 15, Full Committee, to hold hearings to examine matching funds requirement in the case of fiscal hardship, United States-China relations in the era of globalization, S. 2565, to establish an awards mechanism to honor ex- 2 p.m., SD–419. ceptional acts of bravery in the line of duty by Federal Committee on Health, Education, Labor, and Pensions: May law enforcement officers, H.R. 4056, to establish an 14, Subcommittee on Children and Families, to hold awards mechanism to honor Federal law enforcement offi- hearings to examine addressing the challenge of children cers injured in the line of duty, S. 2774, to provide for with food allergies, 2:30 p.m., SD–430. the appointment of additional Federal circuit and district Committee on Homeland Security and Governmental Affairs: judges, S. 1738, to establish a Special Counsel for Child May 14, to hold hearings to examine the nomination of Exploitation Prevention and Interdiction within the Of- Paul A. Schneider, of Maryland, to be Deputy Secretary fice of the Deputy Attorney General, to improve the of Homeland Security, 10 a.m., SD–342. Internet Crimes Against Children Task Force, to increase May 14, Subcommittee on Federal Financial Manage- resources for regional computer forensic labs, and to make ment, Government Information, Federal Services, and other improvements to increase the ability of law enforce- International Security, to hold an oversight hearing to ex- ment agencies to investigate and prosecute predators, S. amine the National Archives, focusing on protecting our 2756, to amend the National Child Protection Act of nation’s history for future generations, 3 p.m., SD–342. 1993 to establish a permanent background check system,

VerDate Aug 31 2005 04:45 May 09, 2008 Jkt 069060 PO 00000 Frm 00009 Fmt 0627 Sfmt 0627 E:\CR\FM\D08MY8.REC D08MYPT1 wwoods2 on PRODPC68 with DIGEST D582 CONGRESSIONAL RECORD — DAILY DIGEST May 8, 2008

S. 1515, to establish a domestic violence volunteer attor- Committee on Homeland Security, May 14, Subcommittee ney network to represent domestic violence victims, S. on Emergency Communications, Preparedness, and Re- 2942, to authorize funding for the National Advocacy sponse, hearing entitled ‘‘Advancing Public Alert and Center, S. 2982, to amend the Runaway and Homeless Warning Systems to Build a More Resilient Nation, 10 Youth Act to authorize appropriations, and the nomina- a.m., 311 Cannon. tion of G. Steven Agee, of Virginia, to be United States May 14, Subcommittee on Transportation Security and Circuit Judge for the Fourth Circuit, 3:30 p.m., SD–226. Infrastructure Protection, hearing entitled ‘‘Partnering Select Committee on Intelligence: May 13, to hold closed with the Private Sector to Secure Critical Infrastructure: hearings to examine certain intelligence matters, 2:30 Has the Department of Homeland Security Abandoned p.m., SH–219. the Resilience-Based Approach?’’ 2 p.m., 311 Cannon. May 15, Full Committee, to hold closed hearings to Committee on House Administration, May 14, Sub- examine certain intelligence matters, 2:30 p.m., SH–219. committee on Elections, hearing on Election Contingency Special Committee on Aging: May 14, to hold hearings to Plans: What Have We Learned and Is America Prepared? examine the future of Alzheimer’s disease, focusing on 2 p.m., 1310 Longworth. current breakthroughs and challenges, 10:30 a.m., Committee on the Judiciary, May 14, Subcommittee on SD–106. Commercial and Administrative Laws and the Sub- committee on Crime, Terrorism, and Homeland Security, House Committees joint hearing on Allegations of Selective Prosecution Part II: The Erosion of Public Confidence in Our Federal Jus- Committee on Armed Services, May 14, to mark up H.R. tice System, 2 p.m., 2141 Rayburn. 5658, National Defense Authorization Act for Fiscal Year May 15, Task Force on Competition Policy and Anti- 2009, 10 a.m., 2118 Rayburn. trust Laws, hearing on H.R. 5546, Credit Card Fair Fee Committee on Education and Labor, May 14, hearing on Act of 2008, 11 a.m., 2141 Rayburn. the following bills: H.R. Airline Flight Crew Technical Committee on Natural Resources, May 14, to mark up the Corrections Act; and H.R. 5876, Stop Child Abuse in following bills: H.R. 554, Paleontological Resources Pres- Residential Programs for Teens Act of 2008, 10:15 a.m., ervation Act; H.R. 3022, Sequoia-Kings Canyon National 2175 Rayburn. Park Wilderness Act of 2007; H.R. 2632, Sabinoso Wil- Committee on Energy and Commerce, May 14, Sub- derness Act of 2007; H.R. 5680, To amend certain laws committee on Health, hearing entitled ‘‘Discussion Draft relating to Native Americans, and for other purposes; and of the ‘Food an Drug Administration Globalization Act’ H.R. 3682, California Desert and Mountain Heritage Legislation: Device and Cosmetic Safety Provisions,’’ 10 Act, 11 a.m., 1324 Longworth. a.m., 2123 Rayburn. May 15, Subcommittee on Fisheries, Wildlife and May 15, Subcommittee on Health, hearing on H.R. Oceans, oversight hearing on the management of West 5998, Protecting Children’s Health Coverage Act of Coast salmon fisheries, 10 a.m., 1324 Longworth. 2008, 10 a.m., 2322 Rayburn. Committee on Oversight and Government Reform, May 14, May 15, Subcommittee Oversight and Investigations, hearing on Should FDA Drug and Medical Device Regu- hearing entitled ‘‘In the Hands of Strangers: Are Nursing lation Bar State Liability Claims? 10 a.m., 2154 Rayburn. Home Safeguards Working?’’ 10 a.m., 2123 Rayburn. May 14, Subcommittee on Government Management, Committee on Financial Services, May 14, hearing entitled Organization, and Procurement, hearing on Management ‘‘Contributing Factors and International Responses to the of Civil Rights Programs at USDA, 2 p.m., 2154 Ray- Global Food Crisis,’’ 10 a.m., 2128 Rayburn. burn. Committee on Foreign Affairs, May 14, to mark up May 15, full Committee, hearing on Defense Base Act Merida Partnership to Combat Illicit Narcotics and Re- Insurance: Are Taxpayers Paying Too Much? 10 a.m., duce Violence Authorization Act of 2008, 11 a.m., 2172 2154 Rayburn. Rayburn. Committee on Science and Technology, May 14, hearing on May 14, Subcommittee on Europe, hearing on Improv- Water Supply Challenges for the 21st Century, 10 a.m., ing America’s Security, Strengthening Transatlantic Rela- 2318 Rayburn. tions: An Update on the Expansion of the Visa Waiver Committee on Small Business, May 14, Subcommittee on Program, 1 p.m., 2200 Rayburn. Regulations, Health Care and Trade, hearing on the Im- May 14, Subcommittee on Middle East and South pact of CMS Regulations and Programs on Small Health Asia, hearing on U.S. Assistance to South Asia: Is there Care Providers, 2 p.m., 1539 Longworth. a strategy to go with all that money? 2 p.m., 2172 Ray- May 15, full Committee, hearing entitled ‘‘Food Prices burn. and Small Businesses,’’ 10 a.m., 1539 Longworth. May 15, Subcommittee on Asia, the Pacific, and the Committee on Transportation and Infrastructure, May 14, Global Environment, hearing on Our Forgotten Responsi- Subcommittee on Aviation, hearing on Impact of Consoli- bility: What Can We Do To Help Victims of Agent Or- dation on the Aviation Industry, with a Focus on the ange? 10 a.m., 2172 Rayburn. Proposed Merger Between Delta Airlines and Northwest May 15, Subcommittee on International Organizations, Airlines, 2 p.m., 2167 Rayburn. Human Rights, and Oversight, hearing on UN Security May 14, Subcommittee on Railroads, Pipelines, and Resolution 1325: Recognizing Women’s Vital Roles in Hazardous Materials, hearing on Amtrak Reauthorization, Achieving Peace and Security, 2 p.m., 2172 Rayburn. 10 a.m., 2167 Rayburn.

VerDate Aug 31 2005 04:45 May 09, 2008 Jkt 069060 PO 00000 Frm 00010 Fmt 0627 Sfmt 0627 E:\CR\FM\D08MY8.REC D08MYPT1 wwoods2 on PRODPC68 with DIGEST May 8, 2008 CONGRESSIONAL RECORD — DAILY DIGEST D583

Committee on Ways and Means, May 14, Subcommittee Green: Construction Sustainable and Energy-Efficient on Health, hearing on Health Savings Accounts and Con- Buildings, 2 p.m., room to be announced. sumer Driven Health Care: Cost Containment or Cost- Select Committee to Investigate the Voting Irregularities of Shift? 10:30 a.m., 1100 Longworth. August 2, 2007, May 13 and 14, hearings regarding Roll Select Committee on Energy Independence and Global Warm- Call Vote 814, 10 a.m., 1539 Longworth. ing, May 14, hearing entitled ‘‘Building Green, Saving

VerDate Aug 31 2005 04:45 May 09, 2008 Jkt 069060 PO 00000 Frm 00011 Fmt 0627 Sfmt 0627 E:\CR\FM\D08MY8.REC D08MYPT1 wwoods2 on PRODPC68 with DIGEST D584 CONGRESSIONAL RECORD — DAILY DIGEST May 8, 2008

Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 2 p.m., Monday, May 12 2 p.m., Monday, May 12

Senate Chamber House Chamber Program for Monday: Senate will be in a period of Program for Monday: The House will meet in pro morning business. forma session at 2 p.m.

Extensions of Remarks, as inserted in this issue

HOUSE Green, Al, Tex., E877 Porter, Jon C., Nev., E856, E860, E863, E867, E873, Green, Gene, Tex., E878 E877, E879, E881 Allen, Thomas H., Me., E871 Hall, John J., N.Y., E876 Putnam, Adam H., Fla., E865 Bordallo, Madeleine Z., Guam, E861 Harman, Jane, Calif., E859, E872 Rahall, Nick J., II, W.Va., E872 Boustany, Charles W., Jr., La., E860, E874 Higgins, Brian, N.Y., E855, E873 Rangel, Charles B., N.Y., E867, E872, E880 Boyda, Nancy E., Kans., E864 Hirono, Mazie K., Hawaii, E870 Reynolds, Thomas M., N.Y., E864 Braley, Bruce L., Iowa, E856, E862, E868, E872, E880 Jones, Walter B., N.C., E869 Rogers, Mike, Ala., E865 Burgess, Michael C., Tex., E856, E860, E863, E873 Klein, Ron, Fla., E857 Sanchez, Loretta, Calif., E867 Calvert, Ken, Calif., E871 Schwartz, Allyson Y., Pa., E876 Knollenberg, Joe, Mich., E860 Capps, Lois, Calif., E879 Scott, David, Ga., E877 LaHood, Ray, Ill., E857 Castle, Michael N., Del., E877 Shuler, Heath, N.C., E878 Latham, Tom, Iowa, E856, E860, E863, E867, E873, E882 Cole, Tom, Okla., E868 Simpson, Michael K., Idaho, E875 Conyers, John, Jr., Mich., E859 Lewis, John, Ga., E860 Smith, Lamar, Tex., E856 Cooper, Jim, Tenn., E878 Lofgren, Zoe, Calif., E855, E869 Stark, Fortney Pete, Calif., E864 Cubin, Barbara, Wyo., E862 McCollum, Betty, Minn., E879 Thompson, Mike, Calif., E862 Cuellar, Henry, Tex., E874, E879 Matsui, Doris O., Calif., E874 Udall, Mark, Colo., E858, E881 Farr, Sam, Calif., E882 Miller, Candice S., Mich., E858 Udall, Tom, N.M., E861 Filner, Bob, Calif., E855 Miller, George, Calif., E870 Weiner, Anthony D., N.Y., E856 Fox, Virginia, N.C., E868 Moore, Dennis, Kans., E864, E880 Wilson, Joe, S.C., E857, E869, E880 Frank, Barney, Mass., E858 Musgrave, Marilyn N., Colo., E869, E880 Wolf, Frank R., Va., E865 Gerlach, Jim, Pa., E855 Oberstar, James L., Minn., E862, E875, E881 Yarmuth, John A., Ky., E857 Gonzalez, Charles A., Tex., E868 Poe, Ted, Tex., E882 Young, C.W. Bill, Fla., E874

E PL UR UM IB N U U S The Congressional Record (USPS 087–390). The Periodicals postage is paid at Washington, D.C. The public proceedings of each House Congressional Record of Congress, as reported by the Official Reporters thereof, are printed pursuant to directions of the Joint Committee on Printing as authorized by appropriate provisions of Title 44, United States Code, and published for each day that one or both Houses are in session, excepting very infrequent instances when two or more unusually small consecutive issues are printed one time. ¶ Public access to the Congressional Record is available online through GPO Access, a service of the Government Printing Office, free of charge to the user. The online database is updated each day the Congressional Record is published. The database includes both text and graphics from the beginning of the 103d Congress, 2d session (January 1994) forward. It is available through GPO Access at www.gpo.gov/gpoaccess. Customers can also access this information with WAIS client software, via telnet at swais.access.gpo.gov, or dial-in using communications software and a modem at 202–512–1661. Questions or comments regarding this database or GPO Access can be directed to the GPO Access User Support Team at: E-Mail: [email protected]; Phone 1–888–293–6498 (toll-free), 202–512–1530 (D.C. area); Fax: 202–512–1262. The Team’s hours of availability are Monday through Friday, 7:00 a.m. to 5:30 p.m., Eastern Standard Time, except Federal holidays. ¶ The Congressional Record paper and 24x microfiche edition will be furnished by mail to subscribers, free of postage, at the following prices: paper edition, $252.00 for six months, $503.00 per year, or purchased as follows: less than 200 pages, $10.50; between 200 and 400 pages, $21.00; greater than 400 pages, $31.50, payable in advance; microfiche edition, $146.00 per year, or purchased for $3.00 per issue payable in advance. The semimonthly Congressional Record Index may be purchased for the same per issue prices. To place an order for any of these products, visit the U.S. Government Online Bookstore at: bookstore.gpo.gov. Mail orders to: Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA 15250–7954, or phone orders to 866–512–1800 (toll free), 202–512–1800 (D.C. area), or fax to 202–512–2250. Remit check or money order, made payable to the Superintendent of Documents, or use VISA, MasterCard, Discover, American Express, or GPO Deposit Account. ¶ Following each session of Congress, the daily Congressional Record is revised, printed, permanently bound and sold by the Superintendent of Documents in individual parts or by sets. ¶ With the exception of copyrighted articles, there are no restrictions on the republication of material from the Congressional Record. POSTMASTER: Send address changes to the Superintendent of Documents, Congressional Record, U.S. Government Printing Office, Washington, D.C. 20402, along with the entire mailing label from the last issue received.

VerDate Aug 31 2005 05:56 May 09, 2008 Jkt 069060 PO 00000 Frm 00012 Fmt 0664 Sfmt 0664 E:\CR\FM\D08MY8.REC D08MYPT1 wwoods2 on PRODPC68 with DIGEST