Congressional Record United States Th of America PROCEEDINGS and DEBATES of the 106 CONGRESS, FIRST SESSION

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

Vol. 145 WASHINGTON, TUESDAY, MAY 4, 1999 No. 63 House of Representatives The House met at 12:30 p.m. tainted water supply cleaned up, the into effect, and they still will not f guilty must be found, and they must be admit, is that MTBE is a powerful and punished. persistent water pollutant and, from MORNING HOUR DEBATES Now this perhaps sounds like a Holly- leaks and spills, has made its way into The SPEAKER. Pursuant to the wood plot, a Hollywood movie, but it is groundwater of nearly every State in order of the House of January 19, 1999, not, and for many communities across this Nation; the problem, of course, the Chair will now recognize Members this Nation, they are facing this situa- being worse in California, the har- from lists submitted by the majority tion. The guilty party is none other binger of what will surely come to pass and minority leaders for morning hour than the supposed protector, the Envi- in much of the rest of this country. It debates. The Chair will alternate rec- ronmental Protection Agency. takes only a small amount of MTBE to ognition between the parties, with each Tom Randall, a managing editor of make water undrinkable. It spreads party limited to 30 minutes, and each the Environmental News, recently rapidly in both groundwater and res- Member, except the majority leader, brought some articles to my attention. ervoirs, and so far attempts to remove the minority leader, or the minority They detail a pollutant being forced MTBE from water have proven difficult whip, limited to 5 minutes. upon the American public by the EPA. and costly. The Chair recognizes the gentleman The pollutant is methyl tertiary-butyl Has the EPA done anything to ad- from Florida (Mr. STEARNS) for 5 min- ether, MTBE. Now this may not be a vance independent peer review research utes. common household word to many, but into this? Not at this point, Mr. Speak- f the EPA, oil companies which were er. They have appointed a, quote, blue mandated to produce it and many com- MTBE USAGE ribbon panel to study it, a panel communities across this country are all posed in most parts in part of rep- Mr. STEARNS. Mr. Speaker, this too familiar with this water polluting resentatives of MTBE producers and week in the Committee on Commerce gasoline additive. environmental lobbyists which in my we are going to have a hearing Thurs- The problem began in 1990 with a opinion have vested interest in pro- day, May 6, at 9:30, concerning amend- misguided amendment to the Clean Air tecting the use of this fuel additive. ment to the Clean Air Act. I am going Act which led the EPA to mandate the to paint a little bit what the problem use of oxygenates in gasoline sold in In the meantime, States, universities is, and it is centered at the EPA. In areas which are out of compliance with and the courts are scrambling to clean their efforts to really clean up the air clean air standards. Many in this body up the EPA’s mess. It is time, Mr. what has happened is they have pol- assumed the EPA had done their home- Speaker, we move to help them with luted the water, and it is a very inter- work. In California, they trusted the meaningful legislation to end the man- esting, but sad, commentary, and the EPA enough to become the first to use dates for oxygenates which, by the Governor of California is coming here MTBE statewide even in areas not way, many scientists contend do noth- to testify, and almost all the Members mandated by the EPA. In doing so, ing to reduce air pollution from the of Congress from California are on the they also became the first State to face majority of cars on the road today. bill of the gentleman from California a water pollution problem we may all Fortunately, Mr. Speaker, my friends (Mr. BILBRAY), which is H.R. 11, and we face in this country all because the and colleagues, the gentleman from are going to be holding a hearing on EPA did not do its homework and still California (Mr. BILBRAY) and the gen- this bill. And let me just give my col- has not to this day. tleman from New Jersey (Mr. FRANKS) leagues, Mr. Speaker, a little bit of These are the facts: There are basi- have introduced corrective legislation. background on this because this shows cally two types of oxygenates: alcohol- Mr. BILBRAY has introduced H.R. 11 the unintended consequences some- based and ether-based. Alcohols are which the Committee on Commerce times of what we do here in Wash- generally used in the Midwest where will be holding a hearing on this Thurs- ington and what the EPA extends fur- they are produced, but since they can- day. H.R. 11 allows for California to use ther to do. not be shipped through pipelines be- alternative methods other than only So, if my colleagues will bear with cause they pick up water ethers, pri- using the oxygenates in gasoline. I ap- me, imagine a city suddenly faced with marily MTBE, are the only economi- plaud their efforts and encourage State contaminated drinking water. The cally feasible choices for the rest of the engagement rather than federal man- elected officials desperately search for country. dates. The bill of the gentleman from the responsible parties, they want ret- What the EPA apparently did not New Jersey (Mr. FRANKS), H.R. 1367, ribution and justice, they want their know back when their mandate went would effectively end the use of MTBE.

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.

H2555

. H2556 CONGRESSIONAL RECORD — HOUSE May 4, 1999 Mr. Speaker, I strongly support both I think there will be fewer that will While the pressure was on as the of these bills, and I urge my colleagues have more of an impact than helping House debated the steel issue earlier to support them also. citizens sort out the right investments this year and overwhelmingly passed f and allowing them to be part of fram- H.R. 975, we saw steel imports begin to ing those solutions. come down in December 1998 and in TRANSPORTATION AND COMMU- The entire town meeting effort is an January and February of this year. But NITY SYSTEMS PRESERVATION illustration of what livable commu- as soon as the pressure let up with un- ACT nities are all about. It is not about certainty over the fate of this legisla- The SPEAKER pro tempore (Mr. Federal interference, but partnership. tion in the other body, steel imports RADANOVICH). Under the Speaker’s an- It is about giving people more choices shot up again in March. We saw a 25 nounced policy of January 19, 1999, the rather than fewer and that will end up percent increase in steel imports in gentleman from Oregon (Mr. costing people less money rather than March over the levels in February. BLUMENAUER) is recognized during more. The U.S. market continues to be the morning hour debates for 5 minutes. It is not the solutions for livable market of last resort for many export- Mr. BLUMENAUER. Mr. Speaker, as communities that are pushing people ers. As markets overseas continue to someone who came to Congress because to the edge financially. It is the con- face economic turmoil, exporters con- I believe that Federal Government sequences of throwing money at prob- tinue to ship unprecedented levels of should do more to be a constructive lems in an unplanned way, problems steel into the United States, the partner with our communities to help that were first created by not carefully world’s most open market. In order to promote livability, I could not be more planning and thinking about what we obtain hard currency, exporters have excited about developments that are are doing. sent the world’s oversupply of steel to taking place this week in Detroit. I A country that can put a man on the the U.S., often at prices that bear no just left the conference, the town meet- moon and bring him back safely over 20 relation to the actual production costs. ing, on sustainable development where years ago does not have to build a gen- In March we also saw some imports there were over 3100 people from eration of failed infrastructure source and product switching, which around the country and more still reg- projects. It should not be illegal in all of us had feared. We saw an increase istering. It was not so much a wrap-up most of America for a clerk working in in imports of blooms, billets and slabs of the President’s Council of Sustain- a drug store to live in an apartment and in hot rolled sheet from countries able Development, but rather a hand- above that drug store rather than hav- not subject to the current trade cases. off to citizen activists, students, busi- ing to have to commute every day. The The impacts of this steel import cri- ness, government, nongovernmental Federal Government should not pay sis cannot be overstated. Every single agencies to deal with specific activities people more to pave a creek than re- ton of dumped steel displaces a ton of that they could do to help promote liv- store a wetland, especially if that wet- domestic production. The United able communities. There were a vari- land restoration will actually solve the States industry is losing competitive- ety of workshops with people learning problem as well or even better, and we ness because of these unfairly traded from one another, and the administra- should guarantee that people in com- imports. Companies are finding that as tion has announced 70 specific commit- munities, large and small, across prices drop and imports continue to in- ments to help promote that more sus- America have a place at the table to crease, they cannot commit to future tainable future. discuss the impacts of infrastructure One of the programs that I am most investments rather than being shut out capital investments, they cannot com- pleased with was the Transportation by State bureaucracies. mit to needed modernizations, and and Community Systems Preservation Finally, the Federal Government they cannot commit to additional re- Act. This was a provision in our TEA– itself should do more to lead by exam- search and development. These effects, 21 legislation, the Surface Transpor- ple, whether it is finally requiring the if not reversed soon, could have a last- tation Act last year, that was born in Post Office to obey the same laws and ing implication on an important indus- the Oregon experience where a group of codes that the private sector or that try well into the 21st century. private citizens pushed the State and local government itself needs to follow Company by company the impact is Federal transportation agencies to con- or, for that matter, having the House also being felt in the short term. Four sider an alternative to simply con- of Representatives do as good a job in companies have filed for bankruptcy structing a traditional bypass to look our recycling efforts as a couple of am- protection. Mills are dramatically cut- at what would happen if we were more bitious Boy Scout troops do back ting production in capacity utilization. thoughtful about the ways that we put home. Foreign producers that dump their pieces together. The bottom line is that the American products are now realizing the benefits The results of their research was public wants our families to be safe, of American companies’ successful ef- stunning. It proved conclusively that economically secure and healthy. What forts to rebuild the market for steel by dealing with the integration of land is going on with the town meeting this products here in the United States, and use, transportation being more con- week in Detroit is an example of how most disturbing is the damage that is nected and giving people more choices to do that. I hope that my colleagues being done to many American families that we could, in fact, reduce conges- will look at ways that each of us in as steelworkers lose their jobs. As stat- tion more than simply having a pave- Congress can do our best to help make ed in the President’s steel report in ment-only solution. our communities more livable. January, 10,000 Americans have lost That found its way into TEA–21. I f their jobs because of this crisis. Many was happy to have supported it in our will never return to jobs that can pro- House Committee on Transportation THE CONTINUING STEEL IMPORT vide the level of pay and benefits that and Infrastructure. The driving force in CRISIS were provided by the steelworker jobs the Senate was my Senator, RON The SPEAKER pro tempore. Under that have been lost, and that does not WYDEN, a former colleague here in the the Speaker’s announced policy of Jan- take into account the impact on local House, and it has opened the flood- uary 19, 1999, the gentleman from Ohio community services where jobs are gates; over 500 applications from (Mr. REGULA) is recognized during lost, the impact of suppliers. So the job around the country totaling over $400 morning hour debates for 5 minutes. number could be much larger. million from people who understand Mr. REGULA. Mr. Speaker, the steel b 1245 the power of being able to plan their import crisis, which began in 1997, is community. Sadly we are only able to still continuing today. The numbers Some workers may not lose their award a small portion of those pro- tell the story. Total steel imports in jobs, but short work weeks, reduced grams, approximately 39, although 1998 were at the highest level ever, 41.5 shifts and lost hours can also have a there are opportunities in the horizon million net tons of steel mill products. devastating impact on their families. to increase those in future years. This was a 33 percent increase over im- Those laid off and those with reduced There may be some federal programs ports in 1997, which also was a record hours are struggling to pay rent and that obviously spend more money, but year. mortgages, to put food on the table and May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2557 to provide their children with the The President warned Japan Monday The administration may argue that things they need. to reduce its steel shipments to the the amount of steel imports for the As I have stated before, this crisis United States on a consistent basis or month of March represents a 30 percent does not just impact steelworkers and the government will act to block them. drop in imports since November of 1998; their families. The shortage or the im- The President also said during a news and, while that may be true, shipments ports affect outside contractors, sup- conference that the U.S. would act to from countries such as Brazil and pliers and everyone in the community keep Japanese steel out of U.S. mar- Japan showed a significant increase. that depends on these steel mills. I re- kets if those imports continued to ex- It is important to point out that just cently read a statistic that for every ceed the levels existing before the yesterday the President warned Japan one million tons of domestic steel lost, Asian economic crisis. that the United States will take action nearly 5,000 U.S. jobs are directly or in- How long does this crisis have to go if the steel imports are not returned to directly affected. on? Something must be done. We must their pre-crisis levels. I believe that is The highly competitive United take action now. an absolute positive step in the right States steel industry cannot compete Arkansas steelworkers have lost direction, and I applaud the President with massive foreign subsidies, closed faith in their government because we for this action. home markets and industrial cartels have failed them by failing to enforce We must continue, though, in our ac- that protect an enormous worldwide our own trade laws. tion to make sure that passage of the overcapacity. It is now time for Con- The administration continues to sit bill that the House sent over is ap- gress and our government to step in on this problem without offering a sub- proved in the Senate and signed by the and take the steps necessary to provide stantive and timely remedy. Steel- President of the United States. the U.S. industry a fair and level play- workers need solid, immediate plans to On behalf of the American steel- ing field in the global marketplace. end the flow of underpriced steel that workers and their families, I ask our I urge the other body to complete ac- is flooding our market. We cannot sim- administration and the Senate to act tion on H.R. 975. I further urge the ply solve the world’s financial crisis on to end this crisis. This is not about free House to take up other important the backs of the steelworkers of the trade. It is about fair trade. United States. The time for action is trade law bills, including H.R. 412, f which I introduced; H.R. 1120, which now, as I have already said, strong and was introduced by the gentleman from decisive action. For the sake of Amer- THE ITC SHOULD RULE DECI- ican steelworkers and their families, SIVELY IN FAVOR OF THE U.S. Michigan (Mr. LEVIN) and the gen- we must end this import crisis. STEEL INDUSTRY tleman from New York (Mr. HOUGH- f TON); and H.R. 1505, which was intro- The SPEAKER pro tempore. Under duced by the gentleman from Pennsyl- THE CONTINUING STEEL IMPORT the Speaker’s announced policy of Jan- vania (Mr. ENGLISH). CRISIS uary 19, 1999, the gentleman from West The current steel import crisis must The SPEAKER pro tempore. Under Virginia (Mr. WISE) is recognized dur- be stopped, and we must ensure that the Speaker’s announced policy of Jan- ing morning hour debates for 1 minute. such a crisis will not happen again in uary 19, 1999, the gentleman from New Mr. WISE. Mr. Speaker, today the International Trade Commission holds the future. York (Mr. QUINN) is recognized during I might add, I thought it was inter- morning hour debates for 2 minutes. a hearing into illegal steel dumping. esting that President Clinton even Mr. QUINN. Mr. Speaker, I would Well, let me report, I was in the north- took the time to take this subject up like associate myself with the remarks ern panhandle yesterday. The pain, with the Prime Minister of Japan be- of the gentleman from Ohio (Mr. REG- both economic and personal, continues cause of their dumping practices. ULA) and also the gentleman from Ar- from illegal dumping of steel in this f kansas (Mr. BERRY). country by foreign nations. Over 10,000 We rise today to discuss the steel cri- jobs have been lost nationwide. STEEL IMPORTS ONCE AGAIN ON Weirton Steel alone has lost over 750 THE RISE sis that continues to grip the steel industry and its workers. jobs. Net sales for Weirton Steel are The SPEAKER pro tempore (Mr. On March 17, this past year, 289 down $76 million this quarter over last RADANOVICH). Under the Speaker’s an- House Members passed the bipartisan year, and as of March of this year the nounced policy of January 19, 1999, the Steel Recovery Act. This bipartisan level of steel imports from Japan and gentleman from Arkansas (Mr. BERRY) legislation calls for quotas to be placed Brazil were up 22 and 25 percent. These is recognized during morning hour de- on foreign steel to get back to its pre- numbers show clearly this crisis, this bates for 3 minutes. crisis levels of July, 1997. steel crisis, is nowhere near over. Mr. BERRY. Mr. Speaker, I rise The bill would also set up a steel The decision from today’s Inter- today because the steelworkers in monitoring system that would track national Trade Commission hearing Northeast Arkansas and all over this the amount of steel imports into the will not be given until mid-June, but I country are frustrated, and they are United States by foreign countries. am urging the ITC to rule decisively in the most productive steelworkers in Mr. Speaker, I am not going to go favor of the U.S. steel industry and its the world. They have lost faith in their into detail this morning about the rea- $70 billion contribution to our economy government’s promise to uphold its sons why our steel industry and its and to Weirton Steel and to many oth- basic trade laws. workers find themselves in this serious ers. The steel import figures for March crisis. We have been through that in When we see a crime, we call 911. show that imports are once again on the months leading up to the vote on Well, this time West Virginia steel- the rise. Imports for March are 25 per- March 17. What I am here to say and to workers need some help from this cent higher than the imports in Feb- join the others in pointing out is that international assault. ruary. Imports from Japan rose 36 per- there still is a steel crisis in the United f cent; from Brazil, 54 percent; from States and that we need something TIME TO TAKE DECISIVE ACTION Korea, 11 percent; from Indonesia, 339 done immediately. percent. Compared to July of 1997, be- As many as four major steel compa- IN YUGOSLAVIA fore the crisis began, Japan’s imports nies are in bankruptcy right now, and The SPEAKER pro tempore. Under are up 22 percent; Brazil’s are up 25 per- we know that when those good-paying the Speaker’s announced policy of Jan- cent; Korea, 77 percent; Indonesia, 889 jobs disappear they disappear forever. uary 19, 1999, the gentleman from Ken- percent. The need for our steel bill was clear tucky (Mr. WHITFIELD) is recognized Clearly, the steel crisis is not over. on March 17, and today it is even more during morning hour debates for 5 min- Although they continue to assure us clear. 289 House Members believed that utes. that they are negotiating and con- something must be done to stop these Mr. WHITFIELD. Mr. Speaker, late sulting with these nations, we continue imports, as we continue to see higher last week this House took up a resolu- to see higher rates of steel entering rates of steel entering the country each tion to continue the administration’s this Nation. and every day. policy of bombing Yugoslavia, and by a H2558 CONGRESSIONAL RECORD — HOUSE May 4, 1999 vote of 213 to 213 the measure failed to simply for exercising what he consid- b 1300 endorse that policy. ered his right to speak out about op- Mr. Speaker, what we need to do be- Many of those of us who voted pression and speak out against the Chi- fore granting China World Trade Orga- against the policy made a deliberate, nese Government and its policies, this nization is not listen to what they say, considered vote of protest against in- dissident said that American corporate because they always make promise cessant bombings that have not accom- executives were in the vanguard of the after promise after promise saying that plished much of anything except to kill Chinese Communist Party revolution, they will behave, that they will play innocent civilians and destroy the in- arguing in this body for special trade fair, they will stop the human rights frastructure of Yugoslavia that in the advantages, so-called Most Favored Na- abuses, they will stop the forced abor- end the U.S. will likely be asked to tion status for China, arguing in this tions, they will stop the religious dis- spend billions of dollars to rebuild. body that China should be admitted to crimination, they will stop their war Forty-one days of intensive bombings the World Trade Organization. against the Tibetans, they will stop Let us step back for a moment, Mr. have not been successful in removing what they do against Taiwan, they will Speaker, and look at a little bit of the Milosevic’s forces from Kosova, nor has stop the child labor, their slave labor. it achieved the stated purpose of the history of China’s attempt to join this They promise that every year. Every bombing and that is to stop the ethnic world trade body and play by the rules year this country gives them Most-Fa- that the United States and other coun- cleansing of the Kosovars. Even our vored-Nation status. Every year they tries around the world play by. own NATO commanders have stated break those promises. Mao Zedong clearly that, except for weakening the For 5 years, the People’s Republic of China has courted the United States, Dong liked to quote his ideological air defense system in Yugoslavia, the communist mentor, Vladimir Lenin, air strikes have not been successful; trying to convince the United States that China, the Chinese Communist the Soviet leader. He said, promises are and Serb forces continue to commit like pie crust, they are made to be bro- atrocities; and hundreds of civilians, Government, should be admitted, ac- ceded into the World Trade Organiza- ken. That is what has happened with men, women and children, are being China as they have courted the United killed by these bombs. tion, but look what they have done in those 5 years as they in a sense have States to join the World Trade Organi- Contrary to the wishful thinking of zation. those who supported that resolution, been courting the United States: illegal sales of nuclear technology to Paki- Mr. Speaker, I ask the administra- the bombing has not stopped the mur- tion, I ask the President, I ask Repub- ders. It has not stopped the violence. stan; smuggling of AK–47s into the harbor at San Francisco; child labor; slave lican leadership in this body, I ask the Instead, the bombings have exacer- American business community, which bated both. labor; shooting missiles into the Straits of Taiwan when Taiwan was is so strongly supportive of World Thus, the question is, how long will Trade Organization entry for China im- the world support a war in which the holding its first free election, something that the People’s Republic of mediately, I ask them to step back and only victims are civilian men, women let us see if China can behave for one and children? China is very unfamiliar with. As China has been courting the year, if it can stop the human rights Now, Reverend Jessie Jackson re- United States, this is the way they abuses, stop the slave labor and the turned from Yugoslavia and was suc- have been acting. They have violated child labor, can stop shooting missiles cessful in obtaining the release of three every norm, every reasonable standard at Taiwan, can stop the nuclear sales servicemen, and he brought a letter that is accepted in the international to Pakistan, can stop the human rights from Mr. Milosevic to give to President community, standards that our coun- violations. Clinton asking that they meet and talk try lives by, standards that the great Let us see if China can stop for 1 year about this issue. So I would say, Mr. majority of countries around the world and join the community of nations in President, the time has come to take a live by. its behavior for 1 year. Then let us talk decisive action by stopping the bombs China, while she has been courting about World Trade Organization acces- and initiate a committed, comprehen- the United States, has acted this way, sion. Do not let them in based on their sive effort to find a diplomatic solution yet they want accession into the World promises, let them in based on their ac- to what is going on in Yugoslavia. Trade Organization. tions. f At the same time, China has exported f last year $75 billion worth of goods to CHINA WANTS ACCESSION INTO MARKING THE 25TH ANNIVERSARY the United States. We have sold to THE WORLD TRADE ORGANIZA- OF THE WIC PROGRAM China, exported to China, only about TION, BUT WITHOUT PLAYING BY The SPEAKER pro tempore (Mr. THE RULES $12 billion worth of goods. We sell to Belgium more than we do to China, be- RADANOVICH). Under the Speaker’s an- The SPEAKER pro tempore. Under cause China simply will not let most of nounced policy of January 19, 1999, the the Speaker’s announced policy of Jan- our goods and services in their coun- gentleman from Texas (Mr. STENHOLM) uary 19, 1999, the gentleman from Ohio try. is recognized during morning hour de- (Mr. BROWN) is recognized during morn- China takes that $60 billion trade def- bates for 2 minutes. ing hour debates for 5 minutes. icit, that surplus for them, in a sense Mr. STENHOLM. Mr. Speaker, it is a Mr. BROWN of Ohio. Mr. Speaker, I that gift of $60 billion, turns around pleasure today to rise to mark the 25th would like to associate myself also and buys more or less $60 billion worth anniversary of the WIC program, the with the remarks of the gentleman of goods from Western Europe; gen- women, infants and children. I am from Ohio (Mr. REGULA), the gentleman erally, our western European allies. proud to join my colleagues in support from West Virginia (Mr. WISE), the Then when we have a problem with of this very valuable and extremely gentleman from New York (Mr. QUINN) China, when there is a human rights successful program. and the gentleman from Arkansas (Mr. violation or some sort of theft of prop- Several years ago when I served on BERRY) in imploring the ITC to rule for erty rights or something that clearly the Committee on the Budget I had the the United States steel industry. China has acted not according to the opportunity to hear several CEOs of There is another trade issue that rules of international trade, those Eu- Fortune 500 companies testify in sup- soon will be in front of Congress. Cor- ropean countries never are on our side port of the WIC program. These execu- porate jets are starting to land at Na- in those trade disputes because they tives talked about the difficulties they tional Airport one after another after are such a big customer for China. had in finding a qualified work force another, filled with CEOs coming, de- Understand that China has a $60 bil- and the amount of money they had to scending on Capitol Hill to lobby on be- lion trade surplus with us. They make spend to educate and retrain their em- half of the Chinese Communist Govern- $60 billion in goods and services from ployees. ment’s accession to the World Trade us, turn around and spend that $60 bil- They told us that while improving Organization. lion in Western Europe; in a sense, buy- our educational system was an impor- One prominent Chinese dissident who ing allies in their quest around the tant part of the solution, our edu- had spent many years in a Chinese jail world in the trade arena. cational system can only do so much if May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2559 the child is not prepared to learn by in those of the warring parties, that we into this country at below-cost produc- the time they reach school age. do. What I do ask is for the two war- tion in many cases, below cost of U.S. These executives came to the conclu- ring nations, Ethiopia and Eritrea, to products, and are being, in the tech- sion that in order to find solutions to agree to a cease-fire and peace settle- nical terms, dumped in the U.S. mar- the problems they were facing and ment. The OAU proposal seems to be ketplace. other problems facing society, we had acceptable to both countries, but for The Department of Commerce is now to begin at the beginning and make unclear reasons has not been signed. proceeding in the second phase of this sure children start out their lives with A cease-fire and peace treaty must be unfair trade practice determining in- the nutrition they need to develop. agreed to. The war must end. New en- jury. The Clinton administration, That conclusion is what brought emies must again become old friends. through the Secretary of Commerce, these CEOs to the Committee on the f Secretary Daley, and Secretary Rubin Budget, and it is what brings me to the at Treasury, have moved smartly to floor today. We continue to learn more PROBLEMS AMERICA IS CON- impose counterveiling duties and put each day about the importance of the FRONTING IN THE STEEL INDUS- companies on notice in this country to first 3 years of life in the development TRY post bond or cash to cover the cost be- of the brain. Common sense tells us The SPEAKER pro tempore. Under tween the unfair price and the U.S. that ensuring that children have prop- the Speaker’s announced policy of Jan- market price. er nutrition at this critical period in uary 19, 1999, the gentleman from We are now in the injury phase of their lives will reap benefits for all of Maryland (Mr. CARDIN) is recognized this proceeding, an excruciating fair, us as these children grow into adult- during morning hour debates for 2 min- time-consuming process, the most fair hood. utes. process of any country in the world A child who has the proper nutrition Mr. CARDIN. Mr. Speaker, I join trade community for determining unat the beginning of his or her life in the with the other Members who have been fair trade. In fact, it is so fair that I womb through the first 3 years of its on the floor today to talk about the am afraid that American steel mills life is more likely to succeed in school, problems we are confronting in steel. and in Minnesota taconite plants will less likely to become involved in the I recently had a chance to visit Beth- be out of business before they come to criminal justice system, and more like- lehem Steel’s Sparrows Point division. the conclusion, the Department of ly to become a productive member of I had a chance to meet with many of Commerce, that there is injury, that society. the 4,000 dedicated workers at this fa- these counterveiling duties should be There have been numerous studies cility. I also had a chance to talk with imposed, and the level trading field re- showing the effectiveness of the WIC management, to go over the invest- established in steel. program in improving health of new- ment that management is making in We ought to act decisively now. The born children. From a fiscal stand- the most modern steel equipment, hun- Senate ought to pass the bipartisan point, studies have found that Medicaid dreds of millions of dollars. Steel Recovery Act, because imports costs for women and children partici- Mr. Speaker, at Sparrows Point our from Japan in March were up 36 per- pating in WIC were reduced by between workers can compete with any worker cent, Brazil up 54 percent, Korea up 11 $1.77 and $3.13 for every dollar spent on around the world. All they ask from us percent, and Indonesia tripled its ex- WIC. is a level playing field. They are not ports in March to the United States. But more important than any of asking us to protect the steel industry Korea has increased their exports to these statistics or studies about the ef- from competition, but they are asking the U.S. so much that they are up 77 fectiveness of the WIC program is this: us to protect the steel industry from il- percent over a year ago. The WIC program helps give all chil- legally dumped steel that is still com- The crisis in steel is not over. More dren a fair start in life. That is why I ing into this country. countries are finding that the most am proud to support the WIC program, Yes, what we need to do, we need to open, fair market in the world is the and encourage our colleagues to con- enact the legislation, that passed, that United States, and are dumping their tinue to support and expand upon this rolls back the level of steel imports to unemployment on our marketplace. It very valuable program. the pre-crisis level. We need to reform is not fair. f our antidumping and counterveiling f duty laws to protect from the surge of ETHIOPIA AND ERITREA illegal steel or any product coming AMERICAN STEEL COMPANIES The SPEAKER pro tempore. Under into this country, so we can act deci- AND STEEL FAMILIES REMAIN the Speaker’s announced policy of Jan- sively. The gentleman from Pennsyl- IN GRAVE DANGER FROM STEEL DUMPING uary 19, 1999, the gentleman from Ar- vania (Mr. ENGLISH) and I have filed kansas (Mr. SNYDER) is recognized dur- such legislation. We also need the ITC The SPEAKER pro tempore. Under ing morning hour debates for 11⁄2 min- to take decisive action in their meet- the Speaker’s announced policy of Jan- utes. ings today. uary 19, 1999, the gentleman from West Mr. SNYDER. Mr. Speaker, recently This is sort of like a Whack-a-Mole Virginia (Mr. MOLLOHAN) is recognized I met with representatives of the Ethi- game, where you hit one country on during morning hour debates for 2 min- opian and Eritrean embassies. The two the head that is dealing with illegal utes. countries are involved in a horrific bor- steel and another country pops up. But Mr. MOLLOHAN. Mr. Speaker, as my der war that since May, 1998, has re- for the 10,000 steel workers’ jobs that colleagues today are point out, the lat- sulted in tens of thousands of casual- we have lost, this is not a game. It is est trade figures are in and they con- ties. time for us to take decisive action. firm what we feared but also what we As family doctor who worked in a f expected. They confirm, Mr. Speaker, refugee camp near Kassala, Sudan, in that the steel dumping crisis is not 1985, and treated refugees from both THE CRISIS IN STEEL IS NOT over. In fact, just the opposite, they Tigre and Eritrea, it is heartbreaking OVER confirm that our American steel com- to see this war continue. Just a few The SPEAKER pro tempore. Under panies and our American steel families years ago, the Horn of Africa was one the Speaker’s announced policy of Jan- remain in grave danger. of the most promising development uary 19, 1999, the gentleman from Min- It turns out that the recent drop in storise on the continent. There was nesota (Mr. OBERSTAR) is recognized imports was not the start of a trend, it great hope for both Eritrea and Ethi- during morning hour debates for 2 min- was only our trading partners catching opia in 1991, two countries with a great utes. their breath and then pumping up their deal in common. Now, tragically, that Mr. OBERSTAR. Mr. Speaker, the March shipments by 25 percent. That promise is gone, swept away in war. crisis in steel is not over. The Inter- includes a 39 percent increase from Mr. Speaker, I do not rise to ask the national Trade Commission of the U.S. Japan and a 54 percent increase from United States to take sides militarily Department of Commerce has ruled Brazil, two of the main targets of com- in this war. It is not in our interests, or that foreign steel imports are coming plaints filed by our U.S. steelmakers. H2560 CONGRESSIONAL RECORD — HOUSE May 4, 1999 It is clear that these countries are PLEDGE OF ALLEGIANCE Mr. BALLENGER (during the read- not very impressed with America’s re- The SPEAKER pro tempore. Will the ing). Mr. Speaker, I ask unanimous solve to enforce our trade laws. What gentleman from Illinois (Mr. RUSH) consent that the committee amend- about our steelmakers? How are im- come forward and lead the House in the ment in the nature of a substitute be ports affecting them? Thanks to im- Pledge of Allegiance. considered as read and printed in the ports, LTV is reporting a first quarter Mr. RUSH led the Pledge of Alle- RECORD. loss of $29 million; Bethlehem a loss of giance as follows: The SPEAKER pro tempore. Is there $26 million, and in my district, Weirton I pledge allegiance to the Flag of the objection to the request of the gen- Steel is reporting a loss of almost $28 United States of America, and to the Repub- tleman from North Carolina? million, the worst in 6 years. Seven lic for which it stands, one nation under God, There was no objection. hundred Weirton Steel employees re- indivisible, with liberty and justice for all. The committee amendment in the main out of work, putting a terrible f nature of a substitute was agreed to. strain on communities all along the The bill was ordered to be engrossed PRIVATE CALENDAR upper Ohio Valley. and read a third time, was read the Mr. Speaker, our trading partners do The SPEAKER pro tempore. This is third time, and passed, and a motion to not care about our communities. They Private Calendar day. The Clerk will reconsider was laid on the table. do not care about our families. They do call the first individual bill on the Pri- f not even care about following our trade vate Calendar. laws. But this Congress and this ad- f JOHN R. AND MARGARET J. LOWE ministration must care, because when FRED STEFFENS The Clerk called the bill (H.R. 510) to the playing field is level, we can com- direct the Secretary of the Interior to pete with anyone on Earth. The Clerk called the bill (H.R. 509) to transfer to John R. and Margaret J. This Congress must come full circle direct the Secretary of the Interior to Lowe of Big Horn County, Wyoming, and pass tough trade legislation, and transfer to the personal representative certain land so as to correct an error in this administration must use every of the estate of Fred Steffens of Big the patent issued to their predecessors tool at its disposal to enforce basic, Horn County, Wyoming, certain land in interest. fair, trade laws. I repeat, Mr. Speaker, comprising the Steffens family prop- There being no objection, the Clerk the crisis is not over. We cannot afford erty. read the bill as follows: There being no objection, the Clerk to act like it is. H.R. 510 read the bill as follows: Be it enacted by the Senate and House of Rep- f H.R. 509 resentatives of the United States of America in RECESS Be it enacted by the Senate and House of Rep- Congress assembled, resentatives of the United States of America in The SPEAKER pro tempore. Pursu- SECTION 1. TRANSFER OF LOWE FAMILY PROP- Congress assembled, ERTY. ant to clause 12 of rule I, the Chair de- SECTION 1. TRANSFER OF STEFFENS FAMILY (a) CONVEYANCE.—Subject to valid existing clares the House in recess until 2 p.m. PROPERTY. rights, the Secretary of the Interior is di- Accordingly (at 1 o’clock and 11 min- (a) CONVEYANCE.—Subject to valid existing rected to issue, without consideration, a utes p.m.), the House stood in recess rights, the Secretary of the Interior is di- quitclaim deed to John R. and Margaret J. until 2 p.m. rected to issue, without consideration, a Lowe of Big Horn County, Wyoming, to the quitclaim deed to Marie Wambeke of Big f land described in subsection (b): Provided, Horn County, Wyoming, the personal rep- That all minerals underlying such land are resentative of the estate of Fred Steffens, to b 1400 hereby reserved to the United States. the land described in subsection (b): Pro- (b) LAND DESCRIPTION.—The land referred AFTER RECESS vided, That all minerals underlying such land to in subsection (a) is the approximately 40- are hereby reserved to the United States. acre parcel located in the SW1⁄4SE1⁄4 of Sec- The recess having expired, the House (b) LAND DESCRIPTION.—The land referred tion 11, Township 51 North, Range 96 West, was called to order by the Speaker pro to in subsection (a) is the approximately 80- 6th Principal Meridian, Wyoming. tempore (Mr. BURR of North Carolina) parcel known as ‘‘Farm Unit C’’ in the 1 1 Mrs. CUBIN. Mr. Speaker, H.R. 509 and at 2 p.m. E ⁄2NW ⁄4 of Section 27 in Township 57 North, Range 97 West, 6th Principal Meridian, Wyo- H.R. 510, as introduced in the House, mirror f ming. the bills introduced by Senators MIKE ENZI and (c) REVOCATION OF WITHDRAWAL.—The Bu- PRAYER CRAIG THOMAS that passed last year in the reau of Reclamation withdrawal for the Sho- Senate by unanimous consent. The Chaplain, Reverend James David shone Reclamation Project under Secretrial The first bill, H.R. 509, transfers eighty Order dated October 21, 1913, is hereby re- Ford, D.D., offered the following pray- acres of public land in Big Horn County, Wyo- er: voked with respect to the lands described in subsection (b). ming, to the estate of Mr. Fred Steffens. In this world where life contains With the following committee The property outlined in the bill has been a what seems to be so much turmoil and part of the Steffens' family working farm since tribulation we long for that tranquility amendment in the nature of a substitute: the land was purchased in 1928. Mr. Steffens that lives beside the still waters of was issued a warranty deed to the property by peace, and yet we know that grace ex- Strike out all after the enacting clause and insert: Mr. Frank McKinney, predecessor of interest. ists besides turbulence and healing ex- Unfortunately, Mr. McKinney knowingly had ists besides pain. O gracious God, the SECTION 1. TRANSFER OF STEFFENS FAMILY PROPERTY. neither title to the property nor an assignable creator of everyone, we laud and praise (a) CONVEYANCE.—Subject to valid existing right of entry. However, the fact that Mr. those who use their ability to bring rights, the Secretary of the Interior is directed to McKinney did not own the land did not stop peace and healing to our communities issue, without consideration, a quitclaim deed to him from selling the property or issuing the and to all the neighborhoods of our Marie Wambeke of Big Horn County, Wyoming, warranty deed. world. May Your spirit, O God, unite the personal representative of the estate of Fred In good faith, Mr. Steffens purchased the each person so we share our concerns Steffens, to the land described in subsection (b): Provided, That all minerals underlying such property and, according to the Big Horn Coun- and our hopes as one people with one ty Assessor's office, paid taxes since the date creator. In Your name we pray. Amen. land are hereby reserved to the United States. (b) LAND DESCRIPTION.—The land referred to of purchase in 1928. f in subsection (a) is the approximately 80-acre Upon Mr. Steffens' death, in an attempt to parcel known as ‘‘Farm Unit C’’ in the E1⁄2NW1⁄4 settle his estate, it was discovered that a pat- THE JOURNAL of Section 27 in Township 57 North, Range 97 ent had never been issued for these lands. The SPEAKER pro tempore. The West, 6th Principal Meridian, Wyoming. Mr. Steffens' sister and representative of the Chair has examined the Journal of the (c) REVOCATION OF WITHDRAWAL.—The Bu- reau of Reclamation withdrawal for the Sho- estate filed a Color of Title application with the last day’s proceedings and announces shone Reclamation Project under Secretarial BLM's Wyoming state office, but the title was to the House his approval thereof. Order dated October 21, 1913, is hereby revoked rejected. Pursuant to clause 1, rule I, the Jour- with respect to the lands described in subsection The reason given was that the lands at nal stands approved. (b). issue were, and continue to be, withdrawn by May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2561 the Bureau of Reclamation (BOR) for the Sho- House for 1 minute and to revise and Elaine Savukas, from Hempfield High shone Reclamation Project. Regulations spe- extend his remarks.) School. cifically preclude claims under the Color of Mr. LEWIS of California. Mr. Speak- Year after year, Ms. Savukas has Title Act when lands are withdrawn for Federal er, there are three American soldiers brought a winning team of civics stu- purposes. who are celebrating freedom today. dents to Washington to take part in The only option to remedy this situation is to These young men have now been re- the ‘‘We the People, The Citizen and pass H.R. 509. Both the BOR and the BLM united with their families and are re- the Constitution’’ 3-day academic com- support the transfer of title to the Steffens' es- ceiving needed medical care in Ger- petition on the Constitution and the tate. The bill preserves the rights of the fed- many. Bill of Rights, as is shown in this pic- eral government to own the mineral interests America is very proud of Steven ture of her class. and transfers the right, title and surface estate Gonzales, Andrew Ramirez, and Chris- Her students know the Constitution to the Steffens. topher Stone. Like so many others now probably better than many Members of Mr. Steffens' and his family occupied this in harm’s way, they served at consider- Congress know it. She has instilled in property in good faith. I believe it's time for the able risk to their own personal safety. her students a love of our history and issue to be resolved and ask my colleagues to They suffered physical harm at the brings civics alive. She stirs her stu- favorably report the bill to the House floor. hands of their captors, and they dents to excellence. H.R. 510 is another bill that the BLM sup- emerged from captivity with crisp sa- Mr. Speaker, there are excellent ports which transfers forty acres of public land lutes to their superior officers with teachers like Elaine Savukas all over in Big Horn County, Wyoming, to John and their heads held high. this country, and we are compelled to Margaret Lowe. As we celebrate their safety, let us honor them not only this week but Although there is a confusing history to this not overlook one fact: These soldiers throughout the year as they help shape particular parcel, there is abundant evidence were released through the efforts of the minds and motivation of our lead- that the Lowe's claim to the land is justified. Reverend Jesse Jackson. ers of the next millennium. I thank all The latest evidence comes at the hand of a While I will continue to support our our teachers. Big Horn County assessor who wrote that troops in their actions abroad, I ap- f based on other entries in the county records, plaud any potential avenue for peace. SUPPORT JOINT EFFORT OF CON- the legal description of the land being trans- Reverend Jackson is not our Secretary GRESSIONAL MEMBERS AND ferred by the original patent should have in- of State, but in recent days he has RUSSIAN DUMA COUNTERPARTS cluded the forty acres under consideration. achieved diplomatically what had not TO FIND SOLUTION TO BALKAN The Lowe family, since acquiring the land in before been possible. America, like CRISIS 1966, have paid taxes on the land since that these three young men, owes him our (Mr. GIBBONS asked and was given time. thanks. permission to address the House for 1 H.R. 510, although not the only alternative f minute and to revise and extend his re- the Lowe's have in acquiring the forty acres, marks.) is the only alternative that will bring minimal RESIDENTS IN NEW YORK BANNED FROM FLYING FLAG Mr. GIBBONS. Mr. Speaker, a win- additional expense to either the Lowe family or dow of opportunity to find a peaceful (Mr. TRAFICANT asked and was the BLM. solution to this conflict in Kosovo was given permission to address the House As I mentioned before, the BLM supports opened this weekend in Vienna, Aus- for 1 minute and to revise and extend the bill. tria. The bill was ordered to be engrossed his remarks.) For my congressional colleagues and and read a third time, was read the Mr. TRAFICANT. Mr. Speaker, resi- my Russian Duma counterparts who third time, and passed, and a motion to dents of Brookshire Condominiums in participated, those meetings represent reconsider was laid on the table. Washingtonville, New York, have been a real and attainable step toward a The SPEAKER pro tempore. This banned from flying the American flag. lasting peace. concludes the call of the Private Cal- Banned, ladies and gentlemen. In fact, Obviously, this conflict represents endar. they will be charged $25 for every day one of the most serious challenges to f that they fly the flag beyond the five international security since World War holidays allowed. Unbelievable. COMMUNICATION FROM THE II. Most Members realize the power The sad fact is in America today we CLERK OF THE HOUSE that many constructive Russian-Amer- can burn the flag, but we may not be ican efforts can offer in finding a solu- The Speaker pro tempore laid before allowed to fly the flag. Beam me up. Is tion. the House the following communica- it any wonder America is so screwed In that light, this bilateral con- tion from the Clerk of the House of up? ference agreed on a course of action Representatives: I yield back the lives of thousands of which would withdraw Serbian troops HOUSE OF REPRESENTATIVES, heroic Americans who gave their lives from Kosovo, cease all military activi- Washington, DC, April 30, 1999. in battle while carrying Old Glory into ties of the KLA, and end NATO bomb- Hon. J. DENNIS HASTERT, battle. The Speaker, House of Representatives, ing. f Washington, DC. Once these measures are complete, DEAR MR. SPEAKER: Pursuant to the per- HONORING AMERICA’S TEACHERS the repatriation of the refugees, admin- mission granted to Clause 2(h) of Rule II of istered by an international peace- the Rules of the U.S. House of Representa- (Mr. PITTS asked and was given per- keeping force and the international tives, the Clerk received the following mes- mission to address the House for 1 community, can begin the healing and sage from the Secretary of the Senate on minute and to revise and extend his re- rebuilding process. April 30, 1999 at 10:21 a.m. that the Senate marks.) Mr. Speaker, I rise today to ask my passed S. Res. 88. Mr. PITTS. Mr. Speaker, I rise today colleagues to support this joint effort Appointment: Advisory Commission on in honor of America’s teachers, those to find a diplomatic solution to the Electronic Commerce people who rise every day to open up With best wishes, I am Balkans crisis because, in my mind, Sincerely, the world of learning to our children. peace is an exit strategy everyone can JEFF TRANDAHL, As a former public high school math understand. Clerk. and science teacher myself, I can attest f f to the amount of time, energy, creativity, and patience that it takes to PASS EMERGENCY SUPPLE- AMERICANS AND THREE RE- take our students to the next step of MENTAL AND HELP DESPERATE, CENTLY RELEASED SOLDIERS discovery, be it in literature, calculus, DESERVING FARMERS OWE REVEREND JESSE JACKSON music theory or physics. (Mr. BERRY asked and was given THANKS Today, I would like to especially permission to address the House for 1 (Mr. LEWIS of California asked and honor one teacher from my district in minute and to revise and extend his re- was given permission to address the Lancaster County, Pennsylvania, marks.) H2562 CONGRESSIONAL RECORD — HOUSE May 4, 1999 Mr. BERRY. Mr. Speaker, how many ranchers because of the low prices and All that is needed is an 18-year-old ID times do we have to come to the floor bad weather. and no felony conviction. In contrast, asking for help on behalf of the Amer- The conferees have yet to resolve the you have to be 21 to get a handgun. ican farmer? How many more farmers differences in the emergency agri- Amazingly, there is no regulation of have to go bankrupt before we pass the culture supplemental so this des- secondhand assault weapons. emergency supplemental? When is the perately needed legislation can be Some of the weapons used at Col- Speaker going to stop holding Amer- brought to the floor of the House for umbine High School were bought at a ica’s farmers hostage and stop playing passage of the conference report. gun show. Let us fill this loophole and politics? My colleagues, we truly, truly have keep the weapons of war off our streets This could have been done months an emergency. We must act now. The and out of our schools. ago. The time to act is now. It is the situation is urgent. Let us pass the f right thing to do. America’s farmers emergency supplemental so our farm- WIC deserve to be treated better than this. ers of America can continue to provide Let us pass the emergency supple- the food and fiber we desperately need. (Mr. BALLENGER asked and was mental. f given permission to address the House f for 1 minute and to revise and extend PRESIDENT HAS CREATED his remarks.) H.R. 1503, CAPITAL GAINS NATIONAL SECURITY EMERGENCY Mr. BALLENGER. Mr. Speaker, I rise EXPANSION FOR FARMERS (Mr. STEARNS asked and was given in support of the Special Supplemental (Mr. BARRETT of Nebraska asked permission to address the House for 1 Nutrition Program for Women, Infants and was given permission to address minute and to revise and extend his re- and Children, better known as WIC, a the House for 1 minute and to revise marks.) program that has been providing short- and extend his remarks.) Mr. STEARNS. Mr. Speaker, I call term, low-cost preventive health serv- Mr. BARRETT of Nebraska. Mr. my colleagues’ attention to this graph ices to young families who are at risk Speaker, a week ago I introduced a bill I have here. It shows that the President due to low income or nutritionally-re- to correct a flaw in the Tax Code. H.R. has neglected the defense budget for lated health conditions for 25 years. 1503 would allow family farmers to the past 6 years, while stretching our Studies have shown that pregnant take advantage of the $500,000 capital troops around the world. There has women who participate in WIC have gains tax break that many other Amer- been laxity, inattention, and actual longer pregnancies leading to fewer icans can take when they sell their negligence in guarding our most valu- premature births, have fewer low-birth- homes. This bill expands the $500,000 able nuclear secrets. weight babies, experience few infant capital gains tax exclusion for prin- I believe the President has created a deaths, and seek prenatal care earlier cipal residences to cover the entire national security emergency. There in their pregnancy. farm. have been truly massive cuts in the de- And when I say it is cost effective, Most family farmers are unable to fense budget in the area of weapons let me point out some real numbers to take advantage of the capital gains tax procurement, all this while using my colleagues. It costs $22,000 a pound break because they do not spend extra American troops in the role of social to raise a low or very low-birth-weight money investing in their principal resi- workers on humanitarian missions baby to normal weight, costs that are dence, they spend it investing in their around the world. It is a recipe de- often covered by Medicaid. It costs whole farm. As a result, the capital signed to leave our proud military in a only $40 per pound to provide WIC pre- gains exclusion is of little help to state of emergency, unable to match natal benefits. These figures show that farmers selling their land. It simply resources with demands. WIC is making a real difference. makes sense. Farmers should enjoy the American servicemen deserve better. I want to thank those who have made same capital gains exclusion as other Those who serve our Nation should not the program a success and wish WIC a Americans. be put in harm’s way when our na- happy 25th birthday. Agriculture producers are faced with tional security interests are not at f many challenges these days, and we stake, and they should be provided TAX REFORM need to look at a variety of issues to with the resources necessary to carry improve the situation in rural Amer- out our mission in a dangerous world. (Mr. DEMINT asked and was given ica. I believe this bill begins to correct The war in Kosovo has exposed for all permission to address the House for 1 one that we can control, an inequity in the world to see our national security minute and to revise and extend his re- the Tax Code. emergency. marks.) I ask my colleagues to join me along f Mr. DEMINT. Mr. Speaker, I recently with the gentleman from North Dakota received a letter from Tori Smith, a (Mr. POMEROY) in supporting H.R. 1503. b 1415 senior at Dorman High School in f WEAPONS OF WAR ON OUR Spartanburg, South Carolina. She wrote: URGENT NEED FOR SUPPLE- STREETS AND IN OUR SCHOOLS MENTAL AGRICULTURE FUNDING (Ms. NORTON asked and was given I think you take out entirely too much money for tax. That is my dad’s money. He (Mrs. CLAYTON asked and was given permission to address the House for 1 worked for it, not you, he should keep it all permission to address the House for 1 minute and to revise and extend her re- for himself. Also, young teenagers who have minute and to revise and extend her remarks.) part-time jobs, trying to make a little spend- marks.) Ms. NORTON. Mr. Speaker, in the ing money pay taxes too. I do not think you Mrs. CLAYTON. Mr. Speaker, since wake of the Littleton, Colorado, trag- should take taxes from us until we are 18. the Congress began in January, all edy yesterday, the gentleman from That is my opinion, which should count. have acknowledged the need to enact California (Mr. HENRY WAXMAN) and I Well, Tori, your opinion does count. emergency legislation to assist our sat at a hearing on the GAO report on And Mr. Speaker, she is exactly right. small farmers and ranchers. the 50-caliber, state-of-the-art military That is their money and they deserve The emergency supplemental appro- rifle that is of Persian Gulf vintage. to keep a lot more of it. They should priation for farm loans was the result The problem is that this armor-pierc- not be punished for working hard for of unprecedented demand for agricul- ing sniper rifle, meant to bring down some extra money or saving for col- tural credit due to the persistent low tanks and jeeps, has now infiltrated lege. commodity prices across our Nation. the States. GAO investigators went un- On behalf of young women like Tori The Department of Agriculture’s dercover in the National Capital area and the students at Dorman High Farm Service Agency, FSA, needs an region and found dealers willing to sell School, I ask my colleagues to find the additional $152 million in fiscal year the rifle even when the agent said he courage to reduce taxes and get rid of 1999 to provide credit and to deliver was interested in taking down a heli- the oppressive Tax Code. Let us say, much-needed services to farmers and copter and in piercing a limousine. enough is enough. Let us replace it May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2563 with a national sales tax that rewards Disabilities Education Act, as amend- to assist States and localities to educate hard work and allows these young peo- ed. children with disabilities: Now, therefore, be ple to make their dreams come true. The Clerk read as follows: it Resolved by the House of Representatives (the H. CON. RES 84 Mr. Speaker, I thank Tori for writing Senate concurring), That— me. I believe we are on the way to giv- Whereas all children deserve a quality edu- (1) the Congress and the President— ing her a more secure future. cation, including children with disabilities; (A) should, working within the constraints Whereas Pennsylvania Association for Re- f of the balanced budget agreement, give pro- tarded Children v. Commonwealth of Penn- grams under the Individuals with Disabil- APPOINTMENT AS MEMBER TO sylvania, 334 F. Supp. 1247 (E. Dist. Pa. 1971), ities Education Act (20 U.S.C. 1400 et seq.) COMMISSION ON CIVIL RIGHTS and Mills v. Board of Education of the Dis- the highest priority among Federal elemen- trict of Columbia, 348 F. Supp. 866 (Dist. D. tary and secondary education programs by The SPEAKER pro tempore (Mr. C. 1972), found that children with disabilities meeting the commitment to fund the max- SHIMKUS). Without objection, and pur- are guaranteed an equal opportunity to an imum State grant allocation for educating suant to section 2(b) of Public Law 98– education under the 14th amendment to the children with disabilities under such Act 183, and upon the recommendation of Constitution; prior to authorizing or appropriating funds the minority leader, the Chair an- Whereas the Congress responded to these for any new education initiative; and court decisions by passing the Education for (B) should meet the commitment described nounces the Speaker’s appointment of All Handicapped Children Act of 1975 (en- the following member to the Commis- in subparagraph (A) while retaining the com- acted as Public Law 94–142), now known as mitment to fund existing Federal education sion on Civil Rights on the part of the the Individuals with Disabilities Education programs that increase student achievement; Act (20 U.S.C. 1400 et seq.), to ensure a free, House, effective May 4, 1999, to fill the and appropriate public education for children existing vacancy thereon: (2) if a local educational agency chooses to with disabilities; Mr. Christopher F. Edley, Jr., Cam- utilize the authority under section Whereas the Individuals with Disabilities bridge, Massachusetts. 613(a)(2)(C)(i) of the Individuals with Disabil- Education Act provides that the Federal, ities Education Act to treat as local funds up There was no objection. State, and local governments are to share in to 20 percent of the amount of funds the f the expense of educating children with dis- agency receives under part B of such Act abilities and commits the Federal Govern- that exceeds the amount it received under REAPPOINTMENT AS MEMBERS TO ment to pay up to 40 percent of the national NATIONAL SKILL STANDARDS average per pupil expenditure for children that part for the previous fiscal year, then BOARD with disabilities; the agency should use those local funds to Whereas the Federal Government has pro- provide additional funding for any Federal, The SPEAKER pro tempore. Without vided only 9, 11, and 12 percent of the max- State, or local education program. objection, and pursuant to section imum State grant allocation for educating The SPEAKER pro tempore. Pursu- 503(b)(3) of the National Skill Stand- children with disabilities under the Individ- ant to the rule, the gentleman from ards Act of 1994, (20 U.S.C. 5933) and uals with Disabilities Education Act in the Pennsylvania (Mr. GOODLING) and the upon the recommendation of the mi- last 3 years, respectively; gentleman from Michigan (Mr. KILDEE) nority leader, the Chair announces the Whereas the national average cost of edu- each will control 20 minutes. Speaker’s reappointment of the fol- cating a special education student ($13,323) is The Chair recognizes the gentleman more than twice the national average per lowing members to the National Skill from Pennsylvania (Mr. GOODLING). pupil cost ($6,140); Mr. GOODLING. Mr. Speaker, I yield Standards Board on the part of the Whereas research indicates that children House for a 4-year term: who are effectively taught, including effec- myself such time as I may consume. Ms. Carolyn Warner, Phoenix, Ari- tive instruction aimed at acquiring literacy (Mr. GOODLING asked and was given zona; and skills, and who receive positive early inter- permission to revise and extend his re- Mr. George Bliss, Washington, D.C. ventions demonstrate academic progress, marks.) There was no objection. and are significantly less likely to be re- Mr. GOODLING. Mr. Speaker, this is ferred to special education; an old topic for me, 25 years, speaking f Whereas the high cost of educating chil- on the same subject, trying to encour- ANNOUNCEMENT BY THE SPEAKER dren with disabilities and the Federal Gov- age the Congress to put their money ernment’s failure to fully meet its obligation PRO TEMPORE where their mouth was 24 years ago, under the Individuals with Disabilities Edu- when school districts were promised The SPEAKER pro tempore. Pursu- cation Act stretches limited State and local that if they participated in the Federal ant to the provisions of clause 8 of rule education funds, creating difficulty in providing a quality education to all students, Individuals With Disabilities Edu- XX, the Chair announces that he will cation Act they would receive 40 per- postpone further proceedings today on including children with disabilities; Whereas, if the appropriation for part B of cent of the excess cost in order to fund motions to suspend the rules on which the Individuals with Disabilities Education special education programs to educate a recorded vote or the yeas and nays Act (20 U.S.C. 1411 et seq.) exceeds a child with a disability, which may be are ordered, or on which the vote is ob- $4,924,672,200 for a fiscal year, the State fund- two, three, five, ten, twenty times jected to under clause 6 of rule XX. ing formula will shift from one based solely greater than to educate a non-disabled on the number of children with disabilities If a recorded vote is ordered on House student. Concurrent Resolution 84, relating to in the State to one based on 85 percent of the children ages 3 to 21 living in the State and Obviously, that was not done. We got the Disabilities Education Act; House up to 6 percent. In the last 3 years, for- Concurrent Resolution 88, relating to 15 percent based on children living in poverty in the State, enabling States to under- tunately, we have been able to get huge the Pell Grant Program; or House Res- take good practices for addressing the learn- increases, which gets us all the way up olution 157, relating to teacher appre- ing needs of more children in the regular to 12 percent. And, hopefully, by the ciation, those votes will be taken after education classroom and reduce over identi- end of this year, it will be 15 percent, debate has concluded on those motions. fication of children who may not need to be and we still have a long way to go. If a recorded vote is ordered on any referred to special education; What does it mean when we do not remaining motion, those votes will be Whereas the Individuals with Disabilities fund what we promised? It means that postponed until tomorrow. Education Act has been successful in achieving significant increases in the number of the local school districts must raise f children with disabilities who receive a free, millions of dollars in order to fund a mandate that came from the Federal URGING CONGRESS AND PRESI- appropriate public education; Whereas the current level of Federal fund- level, a mandate if they decided to par- DENT TO FULLY FUND INDIVID- ing to States and localities under the Indi- ticipate. UALS WITH DISABILITIES EDU- viduals with Disabilities Education Act is I realize that no matter how much CATION ACT contrary to the goal of ensuring that chil- money we put up, we can never fully Mr. GOODLING. Mr. Speaker, I move dren with disabilities receive a quality edu- fund even our 40 percent unless we deal to suspend the rules and agree to the cation; and with the number of people who are Whereas the Federal Government has concurrent resolution (H. Con. Res. 84) failed to appropriate 40 percent of the na- placed in special education programs, urging the Congress and the President tional average per pupil expenditure per many of which only have a reading to fully fund the Federal Government’s child with a disability as required under the problem and, therefore, really should obligation under the Individuals With Individuals with Disabilities Education Act not be there. H2564 CONGRESSIONAL RECORD — HOUSE May 4, 1999 I hope that some of the early child- teachers, reduce class size, build and ren- members of society is extremely im- hood programs that we have put into ovate classrooms, and invest in technology. portant, and there has been no greater effect on the Federal level will help Every student will benefit, regardless of champion than myself in this issue. eliminate those who get into special ed whether the student receives services under In fact, many years before the pas- simply because of those reading prob- Title I, limited English proficiency programs, or sage of 94–142, I, as one of its principal lems. IDEA. authors, helped enact Michigan’s spe- So, again, I am here today asking, as We must fully fund IDEA before Washington cial education law. My commitment I have asked every year for 25 years, creates new education programs. We do not and experience in this issue has for Congress and the President to put need to spend our limited education resources spanned three decades of my career in their money where their mouth was be- on new, unproven Federal programs. Let's first public service, and I understand and fore we talk about funding new pro- live up to the promises we made over 24 support the need to fully fund IDEA. grams. years ago and fund a program that we know However, in our desire to provide full Center cities particularly stand to works. funding for IDEA, we should not do so get all sorts of money to deal with House Concurrent Resolution 84 urges Con- at the expense of other Federal edu- pupil-teacher ratio, to deal with main- gress to fully fund IDEA while maintaining its cation programs or pit the needs of dis- tenance of their buildings. All we have commitment to existing Federal education pro- abled children against those of non- to do is get that 40 percent of excess grams. We do not want to take funds from the disabled children. The resolution which costs back to those local school dis- Federal education programs currently serving we are considering today tends to do tricts and then they can help all stu- students. However, year in and year out under that, accentuate the politics of division dents. That is what this is all about, both Democrat and Republican control, Con- rather than recognizing what has be- helping all students, not pitting one gress must set priorities and we believe that come a bipartisan goal, the full funding against another. funding the federal commitment to IDEA must of IDEA. Mr. Speaker, I am pleased to bring House come before funding new untested programs. The issue of IDEA funding is not a Concurrent Resolution 84 to the Floor. This We can both ensure that children with dis- Democratic or Republican concern. Concurrent Resolution urges full funding of the abilities receive a free and appropriate public There has been strong bipartisan sup- Individuals with Disabilities Education Act education and ensure that all children have port for substantial increases in fund- (IDEA) before creating and funding any new the best education possible if we just provide ing for IDEA in recent appropriations education initiatives. The co-sponsors and I fair Federal funding for special education. bills, and I strongly believe this will believe that the Federal government cannot I urge everyone to support this important continue. In the past 3 years we have provided continue to ignore the commitment it made concurrent Resolution. Congress must fulfill its sizable increases for both IDEA and over 24 years ago to children with disabilities. commitment to assist States and localities with other Federal education initiatives, At the time IDEA was first enacted, Con- educating children with disabilities. recognizing the need to build a total gress committed that the Federal government Mr. Speaker, I reserve the balance of Federal commitment to education. would provide States and local school districts my time. IDEA alone has received over $1.5 bil- with 40% of the average per pupil expenditure Mr. KILDEE. Mr. Speaker, I yield lion in additional funding since 1996. to assist with the excess costs of educating myself such time as I may consume. The growth and funding for all Federal students with disabilities. Where are we on Mr. Speaker, I want to say at the beginning of my remarks that I am going education programs that have a posi- that commitment? We are at 12% and it is this tive effect on student achievement to support this resolution. high only because Republicans have insisted should be the goal we set our sights on and fought for increased Federal funds for However, the resolution that is before the House today is not as simple regardless of party or parochial inter- IDEA. Since Republicans took over control of est. as it may seem. Unfortunately, this Congress in 1995, funding for IDEA has risen It is my hope that we commit our- resolution tends to place the needs of over 85%. selves to the spirit of cooperation on Failing to live up to our IDEA funding com- disabled children and nondisabled chil- the issue of educational funding. mitment fails our students, parents, schools, dren in conflict rather than to seek to Mr. Speaker, I reserve the balance of and communities. recognize our commitment to all chil- my time. Where do we stand on IDEA spending right dren. Mr. GOODLING. Mr. Speaker, I yield now? Here's what we know about the Presi- Full funding for the Individuals With 1 minute to the gentleman from Mon- dent's thoughts on IDEA funding. Under his Disabilities Education Act is a goal tana (Mr. HILL). budget request, President Clinton wants to cut which is vitally important to the edu- Mr. HILL of Montana. Mr. Speaker, I spending for students with disabilities from cation of the disabled children of our thank the chairman for yielding me $702 per child in FY 1999 to $688 per child Nation and one that I have been com- the time. in FY 2000. We also know Secretary of Edu- mitted to since I arrived in Congress 23 Mr. Speaker, I want to draw the at- cation Riley's top priorities. According to an ar- years ago. We need to provide 40 per- tention of my colleagues to this head- ticle in the Washington Post of April 20, 1999, cent of the excess cost of educating a line. It says they are going to cut 60 increasing funding for IDEA does not make child with a disability, and this should non-tenured positions in my home- the top three priorities of the Department. be done and this should be one of our town, in my hometown paper. The Committee on Education and the Work- top priorities for Federal education The reason for that is that we are force stated its funding priority quite clearly. In funding. going to have to increase classroom a bipartisan vote of 38±4, the Committee ap- In fact, as my chairman, the gen- size and reduce our gifted and talented proved this resolution to give IDEA programs tleman from Pennsylvania (Mr. GOOD- programs because we cannot access the highest priority among Federal elementary LING) knows, I have joined him and dollars from any of the other Federal and secondary education programs. many other of my colleagues in de- education programs. Specifically, we What will giving IDEA the highest priority in manding additional funding for special cannot access the dollars from the Federal funding for K±12 education programs education so we can meet this goal now President’s new initiative for new do for students and schools? It will allow rather than later. teachers and smaller classes. And that schools to increase and improve services for The gentleman from Pennsylvania is a problem with our existing school all students, including students with disabil- (Mr. GOODLING) has been a real and funding programs. ities. long time leader for full funding of So what we can do? What we can do Meeting the Federal IDEA funding commit- IDEA. I can recall several years ago, is fully fund special education, living ment benefits every student by allowing the when we both served on the Committee up to the commitment that Congress local school to fund the services needed by all on the Budget, the courage he took to has made. What happens if we do that? studentsÐeveryone wins. Once the Federal be the one Member over there who First of all, it is going to take the pres- government begins to pay its fair share under joined me in trying to secure more sure off of local taxpayers in my home IDEA, local schools will no longer be forced to funding for this program. State, property taxpayers. But, more redirect local funds to cover the unpaid Fed- Supporting the needs of disabled chil- important than that, it will provide eral share. Local funds will be freed up, allow- dren and providing them with a chance more funding for the general fund ing local schools to hire and train high-quality to become productive, participating budget for education. May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2565 By underfunding special education, children with disabilities before tax But I do have two concerns about we are forcing schools to go take cuts. Work with me. We can fully fund this resolution. One is that we do not money from their general education IDEA without taking funds from other pay for this resolution by taking account and put it into their special important education programs. money away from other good education education account. Mr. GOODLING. Mr. Speaker, I yield programs, that we need to fund Head Start, that we need to fund Pell grants, b 1430 1 minute to the gentleman from Mis- souri (Mr. BLUNT). that we need to make sure that we are By fully funding special education, Mr. BLUNT. Mr. Speaker, as I go not taking money away from edu- we will reverse that process. It will ad- around my district in southwest Mis- cation. And this should come from the dress the area of greatest uncertainty souri and ask school administrators or Republican 10 percent across-the-board and the area of greatest cost to most of teachers what is their biggest problem tax cut that everybody knows is not our school districts. I would urge my with the Federal Government, I always going to be out there, anyway. colleagues to support this resolution. get the same answer, IDEA. And so now And, secondly, I just end on the note Mr. KILDEE. Mr. Speaker, I yield 3 I ask what is their second biggest prob- of, there was a battle cry in 1988 of minutes to the gentlewoman from Cali- lem with the Federal Government, and ‘‘Where’s the Beef?’’ Where is the sub- fornia (Ms. WOOLSEY). I get a variety of answers, but there is stance? This is a resolution. This does (Ms. WOOLSEY asked and was given no question their biggest challenge is not mean anything yet. Let us get a permission to revise and extend her rein the way IDEA is funded, the way bill. Where is the bill? Let us go for- marks.) IDEA is administered, the way that the ward with a bill that funds IDEA for Ms. WOOLSEY. Mr. Speaker, like so rules and regulations are set up. our children and for our parents. many of all of my colleagues on both We cannot do anything today about Mr. GOODLING. Mr. Speaker, it is interesting sometimes that we do not sides of the aisle, I am hearing con- the administration and the rules and read the legislation since it says, stantly from parents and educators at regulations. That needs to be in an- ‘‘should meet the commitment de- home about the importance of meeting other, bigger debate later. It needs to scribed in subparagraph (A) while re- the Federal commitment to fund the happen. But we can do something Individuals with Disabilities Education taining the commitment to fund exist- about the funding. ing Federal education programs.’’ Act, IDEA. Parents of children with In 1974, when this program was con- special needs are absolutely frantic Mr. Speaker, I yield 1 minute to the ceptualized and put into law, Congress AS- about their children’s access to public gentleman from Delaware (Mr. C said they would pay 40 percent of the TLE), the chairman of the sub- education. They often feel like the cost. Twenty years later, we were pay- committee. schools are giving them the runaround, ing 6 percent of the cost. In the last 4 Mr. CASTLE. Mr. Speaker, I thank but schools are equally as worried years, we have been able to double the gentleman for yielding me this about having the resources to do the that, to 12 percent, so we are headed in time. I also rise in support of H. Con. job that they need to do. And the par- the right direction. But we need to Res. 84, the Individuals with Disabil- ents of students without special needs keep our word. ities Act. are more than fearful because they be- This is about the Federal Govern- Let me tell Members that the meat is lieve that special needs students are ment, not just conceptualizing some there now. The bottom line is that we taking precious resources away from new obligation but paying their share are obligated by statute to pay 40 per- their children. and keeping their commitment to cent of the education of those with dis- This cannot continue. Congress must make those programs work. abilities in this country. We have un- step up to our responsibility, and we Mr. KILDEE. Mr. Speaker, I yield 2 fortunately in this Congress over the should do it this year while the econ- minutes to the gentleman from Indiana years not gotten anywhere near that omy is good and we have a surplus. If (Mr. ROEMER) a member of the com- level. In fact, we are probably about 11 we cannot do it now, we never will. mittee. percent right now with about a $14 bil- But we should not be pitting one edu- (Mr. ROEMER asked and was given lion deficit that we have to make up. cation program against another as this permission to revise and extend his re- Some people have gotten up and they particular resolution does. When we do marks.) have said, and I can understand it and that, we pit students against students, Mr. ROEMER. Mr. Speaker, I thank I do not disagree with this, that we parents against schools, and we pit the gentleman from Michigan (Mr. KIL- cannot do this at the expense of other schools against each other. DEE) for yielding me this time. programs. I will tell my colleagues However, there is a way that we can I want to, first of all, preface my that we will not do it at the expense of in this Congress meet the Federal com- comments by indicating to the gen- other programs. I am talking about mitment to fund IDEA. We can do this tleman from Pennsylvania (Mr. GOOD- Federal programs. while continuing our support for other LING) that I intend to vote for this res- But if we paid that money into the important education programs. We can olution. I believe that there has been a local governments, into the local do this by using some of the funds that sufficient gap between what the Fed- school districts, then they would be have been set aside under the Repub- eral Government has promised with re- able to free up the money which they licans’ balanced budget agreement for spect to funding individuals with dis- presently have to build schools, to hire tax cuts to fund IDEA. abilities and what we have actually more teachers and to help with all of The balanced budget agreement sets paid for. the other programs, because they are aside $778 billion for a 10-year tax cut. When I am in town meetings in my funding the deficit which we created by We would only need $11 billion addi- home State of Indiana, IDEA problems mandating that they do this. We have an obligation to educate everybody in tional in funds to fully fund IDEA this come up over and over and over again. America if we possibly can. This legis- year. Concerned parents, very upset about lation would do it. We should pass it. When this resolution was marked up getting their children a sufficient and Mr. KILDEE. Mr. Speaker, I yield 3 in the committee, I offered an amend- fair education, getting their children minutes to the gentlewoman from ment that urged Congress to fund opportunities to learn in the classroom Michigan (Ms. RIVERS). IDEA before funding tax cuts. It lost and having the Federal Government (Ms. RIVERS asked and was given on a partisan vote. 100 percent of the come through with the funding. So I permission to revise and extend her re- Democrats voted for it; 100 percent of will support the Goodling resolution. marks.) the Republicans voted against it. There has also been a three-part se- Ms. RIVERS. Mr. Speaker, Clement While I realize that no amendment ries on the difficulties in special edu- Atlee once said, ‘‘Democracy means can be considered on the floor this cation done by the Washington Post government by discussion, but it is afternoon, I do want to point out that here in Washington, D.C. I would ask only effective if you can stop people we can fully fund IDEA and we can do at the appropriate time unanimous from talking.’’ I agree. it without taking away from other edu- consent for these articles to be entered Mr. Speaker, it is time to stop talk- cation programs. Once again, I urge my into the RECORD to show that we need ing about special education funding. It colleagues to put education for our to do more in special education. is time to do something. H2566 CONGRESSIONAL RECORD — HOUSE May 4, 1999 In 1972, the Federal Government did eral, State and local governments to Mr. KILDEE. Mr. Speaker, I yield 2 the right thing by enacting a national share the cost of educating children minutes to the gentleman from Massa- guarantee for education for special with disabilities. When enacted, the chusetts (Mr. TIERNEY), a member of needs children. Before this action, far Federal Government was to assume 40 the committee. too many handicapped children never percent of the national average per Mr. TIERNEY. Mr. Speaker, I thank saw the inside of a schoolhouse. pupil. It was never done. We need to the gentleman from Michigan for yield- As someone who served on a local fund this properly. We are only funding ing me this time. board of education for nearly a decade, it for 11 percent this year. It is time we I want to thank the gentleman from I know the positive impact of the Indi- acted. I urge my colleagues to support Pennsylvania (Mr. GOODLING), the gen- viduals with Disabilities Education this measure. tleman from Michigan (Mr. KILDEE) Act. But as someone who struggled to Mr. Speaker. I rise today in support of H. and other members of the committee pass local school district budgets, I Con. Res. 84 and I commend the gentleman for bringing forth legislation which also know that the Federal Govern- from Pennsylvania, the Chairman of the Edu- will in fact put more Federal funding ment has never come close to funding cation and Workforce Committee, Mr. GOOD- and more emphasis on education. The at the promised level of 40 percent. In LING and his efforts to obtain full funding for presentation of this resolution marks fact, it has been mentioned before, we the individuals With Disabilities Act (IDEA). an acknowledgment that all aspects of barely reached 12 percent. In fact, the In adopting IDEA in 1975, Congress re- government, Federal, State and local, National Association of State Boards quired the Federal, State and local govern- must step up to the plate and support of Education point out that under- ments to share the cost of educating children education. funding since the day the bill was with disabilities. When enacted, the Federal What is particularly notable is that passed totals $146 billion that was Government was to assume 40 percent of the the majority, which in the past has not promised to local public schools over national average per pupil expense for such been willing to do that, which has in the last 22 years that was never deliv- children. fact been stepping back and saying ered upon. While Congress has authorized this amount that the Federal Government should Schools need real help, not rhetorical since 1982, the appropriation has never come get out of education, now is stepping soothing, real help. This proposal, the close to the stated goal of 40 percent. Last forward and agreeing with us that, in one we have before us, will not do any- year, it reached the highest level ever at 12 fact, we all must participate. thing. It is a sense of Congress, an percent and now the President has requested The Constitution is what obligates opinion without the force of law. A that the program be cut to 11 percent for fiscal people to fund IDEA. There is not a sense of Congress will not pay teachers’ year 2000. Federal legislative mandate. The Con- salaries. It will not buy textbooks. It The result has been an enormous unfunded stitution told States that they have will not put school buses on the street. mandate on State and local school systems to the obligation to fund this program, In short, it will not address any of the absorb the cost of educating students with dis- and the Federal Government stepped very real financial pressures facing abilities. In doing so, local school districts forward and made an offer to assist, America’s schools every day. must divert funding away form other students and we said we would do it to the ex- This has been an issue for me from and education activities. This has had the un- tent that we could, hopefully up to 40 the beginning of my time in Congress. fortunate effect of draining school budgets, de- percent. I have introduced bills and amend- creasing the quality of education and unfairly We are moving toward that goal. ments to fully fund IDEA to the prom- burdening the taxpayers. Local school districts This resolution entitles us to move ised 40 percent. It is highly ironic to are spending as much as 20 percent of their even more so forward. But in no way me that those proposals have repeat- budgets to fund IDEA. should we be pitting one education pro- edly been voted down or tabled, in Since 1995, educational funding levels have gram against another. We still need some cases, by Members who are today jumped 85 percent and have demonstrated more teachers and smaller classrooms. promoting what is no more than a reaf- Congress' commitment to help States and We need more technology. And we need firmation of the 1972 promise. local school districts provide public education more teacher development. We need to Someone mentioned earlier, where is to children with disabilities. It is now time for make sure that we do this. the real bill? Here is the real bill. I will this Congress to make good on its promise to I thank the chairman for accepting soon be introducing this bill to fund fully fund IDEA at 40 percent. We can no the language into this bill that says IDEA at the promised 40 percent. I longer let the States try to make up the dif- that local communities that have funds would invite every Member who has ference between the funds they have been freed up by virtue of additional Federal taken to the floor today to talk about promised and the funds that they actually re- funding must keep that money in edu- the importance of meeting this obliga- ceive. cational programs so that in fact Fed- tion to actually act and become a co- In my district, the schools are definitely feel- eral, State and local governments all sponsor. I would invite all Members ing the negative effects of the lack of IDEA participate in smaller classrooms, who recognize the value of IDEA and funding. East Ramapo School District in Rock- more teachers, teacher development, the value of keeping promises to join land County should receive $2.04 million for technology and all the needs of edu- me in cosponsoring this bill. IDEA but according to 1995 figures, they only cation. This is real action, not soothing rhet- saw $398,000. That is a difference of $1.6 mil- b oric, real action. Mr. Speaker, it is lion. Similarly, the Middletown City School Dis- 1445 time to stop talking about special edu- trict in Orange County was expecting $1.6 mil- Mr. GOODLING. Mr. Speaker, I yield cation. lion but actually only saw $316,000. A dif- myself such time as I may consume. Mr. GOODLING. Mr. Speaker, I yield ference of $1.3 million. Mr. Speaker, I can only say it was 30 seconds to the gentleman from New Mr. Speaker, it is time for the Congress to awful lonely for 20 years in the minor- York (Mr. GILMAN). show that they are truly committed to our Na- ity trying to get some funding for (Mr. GILMAN asked and was given tion's children's education. By fully funding IDEA. permission to revise and extend his re- IDEA, Congress will simultaneously ease the Mr. Speaker, I yield 1 minute to the marks.) burden on local school budgets while ensuring gentleman from California (Mr. Mr. GILMAN. Mr. Speaker, I thank that students with disabilities receive the same MCKEON), another subcommittee chair. the gentleman for yielding me this quality of education as their nondisabled coun- Mr. MCKEON. Mr. Speaker I would time. terparts. like to join my colleagues in support of Mr. Speaker, I am pleased to rise in Once the Federal Government begins to H. Con. Res. 84 which calls on the support of this measure. I commend pay its fair share, local funds will be available President and Congress to fulfill our the gentleman from Pennsylvania, the for school districts to hire more teachers, re- obligation to our Nation’s neediest chairman of the Committee on Edu- duce class size, invest in technology and even children, those with disabilities. cation and the Workforce, in his efforts lower local property taxes for our constituents. In my home State of California, the to obtain full funding for individuals I proudly stand here today in support of H. cost of educating an estimated 600,000 with disabilities. Con. Res. 84 and I hope that this Congress children with disabilities is a stag- In adopting this measure back in will keep its word and fully fund the Individuals gering $3.4 billion, but the Federal Gov- 1975, IDEA, Congress required the Fed- With Disability Act. ernment contributes only $400 million, May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2567 which translates to only 11.7 percent of But the fact is that when we did, we uals, for families, for school boards, for the total cost. I believe before we look made that commitment, and, like a lot administrators. at creating new programs with new of people here, I have felt badly that we If my colleagues want to do some- Washington mandates we need to en- have never lived up to that commit- thing for education in 1999, support sure that the Federal Government lives ment. But we never lived up to the this resolution, and then move forward up to the promises it made to the stu- commitment of full funding Head Start and fully fund special education. dents, parents and schools over 2 dec- or full funding a lot of other programs Mr. KILDEE. Mr. Speaker, I yield 3 ades ago. that are doing equally responsible jobs. minutes to the gentleman from Maine Mr. Speaker, I am not the only one But remember this, that the respon- (Mr. BALDACCI). who thinks so. I recently met with all sibility for educating children lies at (Mr. BALDACCI asked and was given of the superintendents in my district. the local level. Our colleagues on the permission to revise and extend his re- Each and every one of them stated that other side constantly remind us of marks.) we must increase funding for IDEA be- that, that that responsibility lies there Mr. BALDACCI. Mr. Speaker, I want fore we create a new Federal program. so the decisions should be made there. to thank the ranking member and the If the President would first fund a spe- So how about the decisions to funding chairman for bringing this resolution cial education mandate, our States and the cost of educating these children? to the floor. I am a strong supporter of the Indi- local school districts would have the They did not want to make that deci- viduals with Disability Education Act funds to do the things the President sion, so we made it for them. We said proposes. or IDEA. I strongly agree that every that they will educate those children. child deserves the opportunity to ben- This Congress will continue to work Then I think magnanimously we of- efit from a public education. We must to provide fair Federal funding for spe- fered to fund 40 percent of it. Now all of do all that we can to ensure that every cial education so in the end we can im- a sudden that becomes a burden to us. child reaches his or her fullest poten- prove education for all our children, Not that I disagree with the fact that Mr. Speaker. tial, but we also must recognize the we ought to live up to that commit- tremendous cost of this endeavor. Mr. GOODLING. Mr. Speaker, I yield ment because we made it; because we 1 minute to the gentleman from North In fact, the cost of educating a dis- do not want to be people who go back abled student is on average more than Carolina (Mr. BALLENGER), another on promises as elected officials and subcommittee chair. twice the cost of educating a non- leaders of the communities. Mr. BALLENGER. Mr. Speaker, in disabled student. If our schools are So, Mr. Speaker, I agree with the our markup we heard from the Demo- truly to serve all students, the Federal idea, and I will vote for the resolution, crats that this bill, if enacted, would Government must increase its commit- but I am really disturbed by the con- rob Peter to pay Paul. A more accurate ment to IDEA funding. stant reference to the fact that some- way for the Democrats to look at this When it was first passed, Congress how or another this is the Federal gov- resolution is from the perspective of committed to spending 40 percent of paying what we promised Paul before ernment’s responsibility. It is a respon- the cost. However, the Federal Govern- we begin to give new money and make sibility the government has accepted ment has consistently fallen far short other promises to Peter. We simply for itself, but originally it was not. It of this goal. As a result, special edu- cannot neglect the fact that we prom- was local. cation costs continue to rise, and we ised to help pay for the education of Mr. GOODLING. Mr. Speaker, I yield fall further behind. Currently we fund these special-needs children and put myself such time as I may consume. less than 12 percent of the cost, leaving Correcting the facts, yes, the court scarce funds into other programs that State and local governments to pick up do not have the same mandate. said all will be educated. However the the rest. It is also important to note that if Federal Government said: Do it our Mr. Speaker, this resolution dem- the Federal Government had begun way and we will give you 40 percent of onstrates Congress’ commitment to funding IDEA appropriately, schools excess costs. stand behind our promise. It shows would have more State and local Mr. Speaker, I yield 1 minute to the that we recognize the impact that spe- money freed up to handle local school gentleman from New Hampshire (Mr. cial education costs are having on our demands like teacher/pupil ratios and BASS). State and local budgets and that we school construction. (Mr. BASS asked and was given per- are committed to providing leadership Mr. KILDEE. Mr. Speaker, I yield 2 mission to revise and extend his re- and resources for our schools and their minutes to the gentleman from Cali- marks.) students. fornia (Mr. MARTINEZ), a member of the Mr. BASS. Mr. Speaker, I rise in sup- Let me give my colleagues just one committee. port of the resolution before us today example of a city in Maine. Lewiston Mr. MARTINEZ. Mr. Speaker, as my which is essentially the same as one schools currently receive about $233,000 colleagues know, I was listening to the which I introduced last year which in special education funding. If we were debate, and I had not really planned to passed by voice vote, and I certainly meeting our 40 percent commitment speak on this, but I think we lose touch hope we have a recorded vote on this currently, Lewiston schools would be with reality here. resolution this time, and I would like receiving nearly $1.2 million, a dif- Now the reality is that the responsi- to say that I support it for four rea- ference of $1 million. Imagine the im- bility for educating these children is sons: pact that freeing up $1 million for really not the Federal Government’s; it Number one, it is plain good edu- other educational needs could have on is the local school district’s responsi- cation policy to provide full funding the education of all of Lewiston’s bility. for special education. young people, and then multiply that The reason that the Federal Govern- Secondly, it is meeting the worst un- across every school and every district ment got into it at all was because funded federal mandate that this gov- in the State of Maine, in every school there was a court case brought that ernment currently has, 10 percent of a district in the country. proved that the local people were not 40 percent obligation. Bearing in mind As I traveled throughout my district, educating those children with disabil- that it is up from 5 percent 4 years ago, this is probably the concern I hear ities because it was so much more ex- still 10 percent is not acceptable. most frequently: pensive to do so. Thirdly, it is an issue of local con- School budgets are rising and taking Now I understand that. So when the trol, local control of education, letting property tax rates with them. Federal Government got into it, they local school boards make decisions for I am often told that schools have to made a commitment that they would themselves whether they are going to cut art and music programs, eliminate fund 40 percent of that extra cost of have new teachers, build new class- field trips and cancel extracurricula. I educating these children with disabil- rooms or spend the money on other know that this situation is the same ities. I do not like to call it disabil- areas. The Federal Government should throughout the country ities; I think it is more challenges to make this a top priority. Mr. GOODLING. Mr. Speaker, I yield them. It is disabilities in our mind, Mr. Lastly, this is an issue that is ex- 1 minute to the gentleman from New Speaker. tremely important for disabled individ- Jersey (Mr. FRELINGHUYSEN). H2568 CONGRESSIONAL RECORD — HOUSE May 4, 1999 Mr. FRELINGHUYSEN. Mr. Speaker, that get well card, is the Blue Cross will do a resolution maybe on our I thank the gentleman for yielding this card to pay the bills, and that is why teachers, which I intend to vote for, time to me, and I thank him for his the Committee on the Budget and Com- but I would hope that the Republican leadership on IDEA and for his help to mittee on Appropriations could do a majority would come forward with a our States and the children that they much better job. Mr. Speaker, we will bill that we can debate that is fairly are trying to educate. solicit our colleagues’ support over paid for and not just a resolution that Mr. Speaker I have spoken with our there to get money for that Blue Cross does not have any money in it. Governor, Christie Todd Whitman, in card, send a get well card which is nice, Mr. GOODLING. Mr. Speaker, I yield New Jersey about what fully funding but it does not do enough. myself 30 seconds. IDEA would mean to my State. So I am going to vote for this be- Mr. Speaker, I will say where the In New Jersey alone there are over cause it is an encouraging, hopeful get beef is. The beef is where we put it the 210,000 students in special education well card. But upon receipt of that we last 3 years while we were in the ma- programs. According to our Governor, must do more, and I would hope that jority. $800 million one year, $600 mil- if the Federal Government paid its full each and every one of my colleagues lion the next year, another $500 million 40 percent share last year, the State over there would encourage the Com- the next year for a total of almost $2 would have received an additional $300 mittee on the Budget, encourage the billion over 3 years, not where it was million to pay for these children’s edu- Committee on Appropriations and infor 20 years prior to that when I sat in cation. deed encourage the Committee on the minority where we got zero, zero, Our States are paying too great of an Ways and Means to do its job. zero and the majority was over- amount of our government’s legal obli- Mr. NUSSLE. Mr. Speaker, will the whelming at that particular time. gentleman yield? So we are putting the beef there. We gation to IDEA with money that other- Mr. KILDEE. I yield to the gen- know where the beef is, and we are get- wise could be spent to hire additional tleman from Iowa. ting it there, and we are getting it out teachers, expand or maintain school fa- Mr. NUSSLE. Mr. Speaker, is the to the children who can eat that beef. cilities, pay for athletics or extra- gentleman from Michigan aware that Mr. Speaker, I yield 1 minute to the curricular activities. Mr. Speaker, the Committee on the Budget put an gentleman from New York (Mr. until we pay our existing mandates, we extra billion dollars in the House pro- FORBES). should not consider paying for any new posal for special education this year to (Mr. FORBES asked and was given and expensive programs, any new enti- fund IDEA? I do not know if the gen- permission to revise and extend his re- tlements. tleman voted for that, but that was an marks.) I support this resolution, and I urge important priority from the Com- Mr. FORBES. Mr. Speaker, I rise in all of my colleagues to do the same. mittee on the Budget. We did hear support of H. Con. Res. 84; and I would Mr. GOODLING. Mr. Speaker, I yield that. We were not trying to send just a reiterate what the chairman has just 1 minute to the gentleman from Iowa get well card. We wanted to try and said. Under the Democrats, we did not (Mr. NUSSLE). fully fund those programs, and we did get any increases in this program, a Mr. NUSSLE. Mr. Speaker, I thank not get a lot of support from the gen- valuable program that is working. It is the gentleman for yielding this time to tleman’s side. That concerns us. working in this country. And I appre- me, and I want to thank him and the Mr. KILDEE. Mr. Speaker, to the ciate the leadership of the chairman in committee for their support and for gentleman from Iowa: I served on the the last 25 years trying to raise the their work toward the fulfillment of a Committee on the Budget very well. I consciousness of this Congress to ade- commitment that has been made by know how the Committee on the Budg- quately fund this program. the Federal Government to fully fund et relates to the Committee on Appro- We are asking our States to come up special education made many years priations. I referred to three commit- with better standards for our students, ago. It was a beautiful civil rights law tees. The real legislative committees and they are doing that. In my own saying every child ought to have access here are the Committee on Appropria- State of New York, they have raised to education, and yet that beautiful tions and the Committee on Ways and the standards, which were already high law has been consistently underfunded Means, and they hold in their hands standards. ever since. really the hope for any of these pro- Where are they getting the money? Mr. Speaker, that puts pressure on grams. If the Committee on Ways and Where are they going to get the local taxes, that puts pressure on local Means cuts revenue, that makes it money? In New York State alone, we control of education. It puts pressure more difficult for us to fund these pro- are $581 million short of this Federal on local control, it puts pressure on grams. Unless the Committee on Ap- mandate. This Federal mandate is ask- other education programs, general edu- propriations acts, these funds will not ing my school districts to come up cation programs, talented and gifted be appropriated. with the extra money. And who pays? The property taxpayer. programs, and it puts cross pressure in So they are the ones who really control that Blue Cross card we are debat- This is a Federal mandate. It should a way that is totally unintended for be fully funded at the 40 percent that the very people that we are trying to ing. Mr. ROEMER. Mr. Speaker, will the Congress dictated over 25 years ago. In help. my own Longwood School District on For Iowa alone it would mean $80 gentleman yield? Mr. KILDEE. I yield to the gen- Long Island, New York, in Middle Is- million of additional funds for the kids, land they get $484,000 when they should for the programs that make sure that tleman from Indiana. Mr. ROEMER. Mr. Speaker, I think be getting $2.4 million; $1.9 million Iowa’s children are available and ready the gentleman from Michigan in trying short. I urge support. to learn, ready to meet the commit- to answer the inquiry from the gen- Mr. GOODLING. Mr. Speaker, I yield ments of a continuing and growing eco- tleman from Iowa is also saying that 30 seconds to the gentleman from Flor- nomic demands for those kids, Mr. we have a billion dollars in our budget ida (Mr. WELDON). Speaker. and we are really concerned about (Mr. WELDON of Florida asked and Let us not have new programs, Mr. these physically challenged kids and was given permission to revise and ex- Speaker. Let us fulfill our commitment their families, where is the bill? Where tend his remarks. to the existing programs first. is the beef? Where is the money? Mr. WELDON of Florida. Mr. Speak- Mr. KILDEE. Mr. Speaker, I yield Now we are going to vote on this side er, I rise today as an original cosponsor myself such time as I may consume. for this resolution, but where is the of H. Con. Res. 84 which would make Mr. Speaker, what we have before us bill, the statutory authority, to follow fully funding special education one of today is really a get well card, and it is through on what they said in their the highest priorities in the Federal el- a very nice get well card. budget to provide funds for these fami- ementary and secondary education If I have a friend who is ill, I will lies and these children? funding. It is imperative that we meet send my friend a get well card, and the objective of paying the 40 percent that is very important. It expresses my b 1500 of the average per pupil expenses asso- sentiment and my hope for him. But We are going to get a Pell grant reso- ciated with educating children with what my friend really needs, besides lution, which I intend to vote for. We disabilities. May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2569 I encourage all my colleagues on kinds of returns that our get-well cards portion of their income toward their child's both sides of the aisle to not only sup- have gotten us in the last several education. port this resolution but as well to vote years. The Family Education Freedom Act will for the funding when we do the appro- I want to make sure that everybody allow parents to develop an individualized priations bills. understands, yes, it was the Court who education plan that will meet the needs of Mr. GOODLING. Mr. Speaker, I yield determined all children deserved an their own child. Each child is a unique person 1 minute to the gentlewoman from Illi- equal and a quality education. It was and we must seriously consider whether dis- nois (Mrs. BIGGERT). the Federal Government then who abled children's special needs can be best Mrs. BIGGERT. Mr. Speaker, I rise in came along, as they generally do, and met by parents, working with local educators, support of the resolution of the gen- said, do it our way, do it our way, and free from interference from Washington or fed- tleman from Pennsylvania (Chairman we will give you 40 percent of that ex- eral educrats. After all, an increase in expendi- GOODLING). cess cost. tures cannot make a Washington bureaucrat In 1975, IDEA, which mandated every How attractive that is. Forty per- know or love a child as much as that child's child, regardless of disability, would be cent, that is better than trying to go it parent. given a free public education, Congress alone, but they should have known bet- It is time for Congress to restore control promised to fund up to 40 percent of ter. They should have known that that over education to the American people. The the cost. Mr. Speaker, Congress and 40 percent was just a gimmick. It was only way to accomplish this goal is to defund the President have not kept their part not anything else. education programs that allow federal bureau- of the bargain. Today we fund 12 per- Now, in the last 3 years we have crats to control America's schools. Therefore, cent of the cost to educate children. changed all of that, and we are going to I call on my colleagues to reject H. Con. Res. Twelve percent is not 40 percent. continue to change all of that because 84 and instead join my efforts to pass the Twelve percent is not enough. we are going to step up to the plate as Family Education Freedom Act. If Congress Mr. Speaker, there are those who we have the last 3 years and put our gets Washington off the backs and out of the would say that increased IDEA funding money where our mouth was and help pocketbooks of parents, American children will will come at the expense of other high- all children by helping local districts be better off. priority programs, but if we in Con- fund special education. Mrs. FOWLER. Mr. Speaker, I rise in strong gress fulfill our promise by picking up Mr. PAUL. Mr. Speaker, I appreciate the op- support of this resolution urging Congress, the slack, these other educational pri- portunity to express my opposition to H. Con. and the President, to fully fund the Federal orities will be funded on the local level, Res. 84, the resolution calling for full-funding Government's obligation under the Individuals where they belong. Illinois alone would of the Individuals with Disabilities Act (IDEA). with Disabilities Education Act. receive four times more than the $103 My opposition to this act should in no way be In 1975 the Federal Government committed million we received last year. interpreted as opposition to increased spend- to provide 40 percent funding aid for the man- I urge Members to support the reso- ing on education. However, the way to accom- date to educate those students with disabil- lution on behalf all of our Nation’s plish this worthy goal is to allow parents great- ities. As most of my colleagues know, federal children. er control over education resources by cutting funding for IDEA has never risen above 12 Mr. GOODLING. Mr. Speaker, I yield taxes, thus allowing parents to devote more of percent. myself such time as I may consume. their resources to educating their children in On average, local school districts currently The beauty of this resolution is, such a manner as they see fit. Massive tax spend 20 percent of their budgets on special there are several, as a matter of fact. cuts for the American family, not increased education services. Once the Federal govern- First of all, the resolution says that we spending on federal programs should be this ment begins to pay its fair share, local funds do not take money from existing pro- Congress' top priority. will be freed up, allowing local schools to hire grams to fund this program. We heard The drafters of this bill claim that increasing and train additional high-quality teachers, re- a lot about how we will take money federal spending on IDEA will allow local duce class size, build and renovate class- from existing programs to fund this. school districts to spend more money on other rooms and invest in technology. Well, if one reads the resolution, it educational priorities. However, because an In my district, the Duval County School Dis- does not do that. increase in federal funding will come from the trict receives about $7 million. If IDEA were Secondly, the resolution does not say same taxpayers who currently fund the IDEA fully funded, this school district would receive fund immediately. What it says is, con- mandate at the state and local level, increas- over $37 million, an increase of over $30 mil- tinue the drive that we have had the ing federal IDEA funding will not necessarily lion. last 3 years. Forget the 20 years prior result in a net increase of education funds It is time for us to send a clear message to that, where nothing was done, but available for other programs. In fact, the only that the Federal government must honor our continue the drive that we have had way to combine full federal funding of IDEA commitments to help our state and local going the last 3 years, getting two bil- with an increase in expenditures on other pro- school districts educate children with disabil- lion over the last 3 years. grams by state and localities is through mas- ities. Then the beauty also is we do not pit sive tax increases at the federal, state, and/or I urge my colleagues to support this impor- one child against another child. As a local level! tant resolution. matter of fact, by trying to get this This bill further assures that control over the Mrs. CAPPS. Mr. Speaker, I rise in support money for special ed, we make sure education dollar will remain centered in Wash- of the Individuals with Disabilities Education that we take away that battle that is ington by calling for Congress to ``meet the Act. going on out there at the present time commitment to fund existing Federal education When special education legislation was first because the local districts have to use programs.'' Thus, this bill not only calls on enacted in 1975, the federal government, rec- their money in order to fund special ed. Congress to increase funding for IDEA, it also ognizing the extraordinary costs of inclusion, They must take it away from other calls on Congress to not cut funds for any pro- pledged to provide state and local education students. So we are giving an oppor- gram favored by Congress. The practical ef- agencies with forty percent of the excess tunity to help all students. fect of this bill is to place yet another obstacle costs associated with educating students with Yes, we are sending a get-well card, in the road of fulfilling Congress' constitutional disabilities. the same get-well card we sent last mandate to put control of education back into Sadly, the federal government has not come year; and that get-well card got us a the hands of the people. close to meeting this obligation, with annual half a billion dollars. The same get- Rather than increasing federal spending, appropriations never exceeding twelve percent well card we sent the year before, that Congress should focus on returning control of excess costs. get-well card got us $600 million. I am over education to the American people by en- The chronic underpayment of this federal hoping that this get-well card, when acting the Family Education Freedom Act mandate has left state and local governments the appropriators read it, will also get (H.R. 935), which provides parents with a with a burden of more than $146 billion in lost us another billion. $3,000 per child tax credit to pay for K±12 funding over the past twenty-two yearsÐa I would say that is a pretty good in- education expenses. Passage of this act staggering shortfall that has forced education vestment in a get-well card. I wish I would especially benefit parents whose chil- agencies to shift resources our of lower-pri- could get some other get-well cards dren have learning disabilities as those par- ority, but important necessities such as build- going out there that could get those ents have the greatest need to devote a large ing maintenance and upkeep. H2570 CONGRESSIONAL RECORD — HOUSE May 4, 1999 Special education departments end up eat- IDEA, these institutions cannot fulfill their duty The SPEAKER pro tempore. Is there ing large portions of local and state school to the students and the community at large objection to the request of the gen- budgets, which creates a competitive relation- without adequate funding. tleman from Pennsylvania? ship between regular and special education, The funding of IDEA is critical along with the There was no objection. as they vie for the same scarce funds. This funding of all our education programs that aim f to serve every child that has the right to fair, situation is not the fault of school districts, but URGING CONGRESS AND PRESI- and equitable access to a quality education. a direct result of Congress's inadequate fund- DENT TO INCREASE FUNDING Ms. ESHOO. Mr. Speaker, I rise today to ing of IDEA. FOR PELL GRANTS Special education has received a billion dol- highlight one of the most important issues for lar increase over the past two years. Yet even our nation: educating our young people. Ev- Mr. MCKEON. Mr. Speaker, I move to with this substantial increase, funding is still eryone agrees that a good education is critical suspend the rules and agree to the con- substantially below Congress's 40 percent for the future success of our children, and yet current resolution (H. Con. Res. 88) promise. This means that states and districts are not providing the financial resources that urging the Congress and the President will continue to be unfairly burdened by these make this possible. This is especially true for to increase funding for the Pell Grant excess costs. the education of children with disabilities. Program and existing Campus-Based Congress is simply being unfair to our local School districts are struggling with how to Aid Programs. school districts by not living up to our end of provide the best education possible for all chil- The Clerk read as follows: this bargain and we are taking needed re- dren within often very tightly constrained budg- H. CON. RES. 88 sources away from regular education. ets. I applaud their efforts. In many cases, Whereas the Basic Educational Oppor- I hope the Congress will live up to its obliga- however, school districts can not reduce class tunity Grant Program, now known as the tion, and fully fund IDEA. If we do not, all stu- sizes, build needed schools, or hire new Pell Grant Program in honor of Senator dents across this country will suffer. teachers while still providing the services so Claiborne Pell of Rhode Island, was first authorized in the 1972 amendments to the High- Mr. CLAY. Mr. Speaker, H. Con. Res. 84 important to students with disabilities. In my er Education Act of 1965; calls for increased funding for IDEA at the ex- home state of California, over 600,000 stu- Whereas the Pell Grant Program has be- pense of initiatives like the Clinton/Clay Class dents receive special education and related come the largest need-based Federal higher Size Reduction Act. While I support increased services in public schools at a reported cost of education scholarship program and is consid- funding for IDEA, we should not be robbing $3.4 billion. Without federal assistance, local ered the foundation for all Federal student Peter to pay Paul. school districts are forced to use their general aid; Achieving the goal of 100,000 new teachers funds to the detriment of other programs. Whereas the purpose of the program is to will ensure that every child receives personal This is not to say that the IDEA hasn't been assist students from low income families who would not otherwise be financially able attention, gets a solid foundation for further successful. It has. By providing children with to attend a postsecondary institution by pro- learning, and is prepared to read by the end disabilities with the same educational opportu- viding grants to students to be used to pay of the third grade. nities as their abled peers, we now have a the costs of attending the postsecondary in- I am disappointed that the Republicans system supporting happier and more produc- stitution of their choice; have continued their attempt to torpedo this tive adults. According to the Department of Whereas in the late 1970’s, the Pell Grant critical program. On the Ed-Flex bill, Repub- Education, disabled young people are three covered seventy-five percent of the average licans tried to raid class size funds for other times more likely today to attend college than cost of attending a public four-year college; programs. We should never pit one program prior to 1975 and twice as many of today's by the late 1990’s, it only covered thirty-six against anotherÐwe should support overall in- percent of the cost of attending a public twenty-year olds with disabilities are working. four-year college; creases in education spending. But we must do more to make sure there are Whereas families across the country are I believe that reducing class sizes with well- more success stories than setbacks. concerned about the rising cost of a college qualified teachers is the single most significant I applaud my friends on the other side of the education, and for children from low income action we can take to enhance student aisle for bringing to the floor House Concur- families, the cost of college continues to be achievement. rent Resolution 84, which urges the Congress an overwhelming factor in their decision to We should increase funding for IDEA, but and the President to fully fund the federal forego a college education; not at the expense of class size reduction. Government's obligation under IDEA. This Whereas children from high income families are almost twice as likely to enroll in Mr. RODRIGUEZ. Mr. Speaker, I rise in must be more than just words in a Resolution support of this resolution to fully fund the Indi- college as children from low income families; though. I call upon this Congress, this year, to Whereas higher education promotes eco- viduals with Disabilities Education Act (IDEA). fulfill its pledge for full funding of IDEA. It is nomic opportunity for individuals and eco- IDEA ensures that all children with disabil- time that the federal government make good nomic competitiveness for our Nation; ities receive a free appropriate public edu- on its obligation to the school districts and our Whereas the Pell Grant and Campus-Based cation. Prior to IDEA, 2 million children were children across the country. Aid Programs target aid to low income stu- excluded from receiving their right to a public Mr. GOODLING. Mr. Speaker, I yield dents as effectively as any programs admin- education. Another 2.5 million children re- back the balance of my time. istered by the Federal government; and ceived an inadequate education. The SPEAKER pro tempore (Mr. Whereas student borrowing to finance a IDEA has served as a civil rights initiative postsecondary education has increased to an SHIMKUS). The question is on the mo- average indebtedness of $9,700, and therefore for our Nation's children for more than 22 tion offered by the gentleman from increased grant aid is more important than years. Pennsylvania (Mr. GOODLING) that the ever: Now, therefore, be it Fully funding this educational program is im- House suspend the rules and agree to Resolved by the House of Representatives (the portant to the millions of learning disabled stu- the concurrent resolution, H. Con. Res. Senate concurring), That the Congress and the dents in our districts across the country. It is 84, as amended. President, should, working within the con- important to our communities that benefit from The question was taken. straints of the balanced budget agreement, the achievement level of all these students. Mr. GOODLING. Mr. Speaker, on that make student scholarship aid the highest IDEA is another example of how govern- priority for higher education funding by in- I demand the yeas and nays. creasing the maximum Pell Grant awarded ment support of an educational program pro- The yeas and nays were ordered. to low income students by $400 and increas- vides the foundation for states and local edu- The SPEAKER pro tempore. Pursu- ing other existing campus-based aid pro- cational agencies to work together. Funding ant to clause 8 of rule XX and the grams that serve low-income students prior this initiative for the sake of our children is im- Chair’s prior announcement, further to authorizing or appropriating funds for any portant for the future success of our schools proceedings on this motion will be new education initiative. and communities. postponed. The SPEAKER pro tempore. Pursu- In addition to fully funding IDEA, Congress f ant to the rule, the gentleman from should also better fund other educational pro- California (Mr. MCKEON) and the gen- GENERAL LEAVE grams that are seriously underfunded. For ex- tleman from California (Mr. MARTINEZ) ample, consider Hispanic Serving Institutions Mr. GOODLING. Mr. Speaker, I ask each will control 20 minutes. (HSI's). unanimous consent that all Members The Chair recognizes the gentleman We have charged these institutions with en- may have 5 legislative days within from California (Mr. MCKEON). suring the academic success of the Hispanic which to revise and extend their re- Mr. MCKEON. Mr. Speaker, I yield students that are at their institutions. Similar to marks on H. Con. Res. 84. myself such time as I may consume. May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2571 Mr. Speaker, today we are consid- and $2,400. However, after years of stag- these programs last year, and we sup- ering H. Con. Res. 88, which sets forth nant funding levels, the Committee on port their continued funding. specific priorities for higher education Appropriations has shown over- Mr. Speaker, I want to thank the fol- funding and proposes that we refrain whelming support for the program dur- lowing associations and organizations from creating new education programs ing the past 3 years by increasing fund- that have given their support for this until we adequately fund these prior- ing for the Pell Grant Program by resolution, including the American As- ities. more than $2.7 billion. Had the admin- sociation of Community Colleges, the The top funding priority for higher istration not cut $250 million from last American Association of State Colleges education is the Pell Grant Program, year’s appropriation level for the Pell and Universities, the United States and the goal is to increase the max- Grant Program in order to fund its Student Association, the Career Col- imum award to students from low-in- other priorities, we would be well on lege Association, the American Council come families to $3,525. This amount our way to our goal of a maximum on Education, the National Association represents an increase of $400 to the award of $3,525. of Independent Colleges and Univer- maximum Pell grant award and would In addition to the Pell Grant Pro- sities, the U.S. Public Interest Re- be the largest increase since the incep- gram, this resolution supports in- search Group, the National Association tion of the program in 1972. creased funding for the campus- based of Student Financial Aid Administra- The resolution also recognizes the student aid programs. While Pell tors, the Coalition of Higher Education importance of providing increased grants open the door to postsecondary Organizations, the Association of funding for the existing campus-based education for many students from low- American Universities, the National student aid programs. These need- income families, it is the campus-based Association of State Universities and based programs provide financial aid programs that provide these same stu- Land-Grant Colleges, and finally, the administrators at colleges across the dents some degree of choice in select- Association of Jesuit Colleges and Uni- country with considerable flexibility in ing a postsecondary institution. versities. the packaging of financial aid awards After years of double-digit increases that best meet the needs of their stu- Mr. Speaker, I urge all my colleagues in the cost of a college education, the to support this resolution and the high- dents. maximum Pell grant no longer covers a The Pell Grant Program is one of the er education funding priorities it estab- large percentage of the cost of attend- largest voucher programs in the coun- lishes for the Congress and the Presi- ance at most public 4-year institutions try, and it is considered the foundation dent. in the country. However, a Pell grant, program for all Federal student aid. Mr. Speaker, I reserve the balance of coupled with awards from the campus- Students eligible for a Pell grant can my time. based program, goes a long way in re- use that money to attend one of almost Mr. MARTINEZ. Mr. Speaker, I yield ducing the amount a student needs to 6,000 postsecondary institutions in the myself such time as I may consume. borrow in student loans in order to pay country. Mr. Speaker, I rise reluctantly today The Pell Grant Program was created the bills for tuition and room and in opposition to House Concurrent Res- in 1972, and the goal of the program board. olution 88. In closing, I want to address some of was simple. Congress wanted to assist I want to be very clear that I do sup- the objections I have heard with re- students from low-income families who port the priority for Pell Grant and spect to this resolution. We all know would not otherwise be financially able campus-based student aid programs. the budget caps are tight, and the Com- to attend a postsecondary institution. However, specifically, I oppose the last mittee on Appropriations will have a In the first year of the program, 12 words of this resolution, which I be- difficult time in making funding deci- 176,000 students received Pell grant lieve are not only unnecessary to the sions, but that simply supports getting awards. Funding Pell grants at the intent of the resolution, but have the our priorities on record. level set forth in the resolution would potential to tie the hands of Congress I have copies of testimony submitted make more than 4 million students eli- in our ability to help the children of to the subcommittee of the gentleman gible for Pell grants next year, includ- this country. ing an additional 21,000 students in my from Illinois (Mr. PORTER) from various higher education organizations, Were we not considering this resolu- home State of California. tion under a suspension of the rules, I Ninety percent of the students who and each one identifies certain funding would have offered an amendment to will receive a Pell grant come from priorities important to the particular strike those 12 words, as I did during families with incomes under $30,000, organization. However, there are two the committee markup, which would and 54 percent of those students come consistent messages. The first is strong allow, if we did strike those 12 words, it from families with incomes under support for a $400 increase to the max- would allow myself and I daresay all of $10,000. This is a program that simply imum Pell grant. The second is strong my colleagues on this side of the aisle continues to serve the vital purpose for support for funding proven education to lend wholehearted support to this which it was originally created. programs, rather than creating new This is not the first time that we ones that take money away from the resolution. Members may get support have stated our support for making the existing programs. from some of the Members on our side Pell Grant Program the top funding Finally, do not misread this resolu- because those Members would not want priority for higher education. On June tion. It does not say only fund Pell in to be on record as seeming to vote 26, 1997, the gentleman from Pennsyl- the campus-based programs. It does not against Pell Grants, but they would not get their unconditional support. vania (Mr. GOODLING), the gentleman say that we should cut the class size from Missouri (Mr. CLAY), the ranking teacher program. Unlike the Presi- I would stress that my colleagues and member, the gentleman from Michigan dent’s budget that cuts several existing I are not opposed to establishing the (Mr. KILDEE) and I sent a letter to the programs, including the Pell appropria- Pell Grant and campus-based student gentleman from Illinois (Mr. PORTER) tion, impact aid, the Title VI block aid programs as a funding priority. On and the gentleman from Wisconsin (Mr. grant and others, this resolution does the contrary, over the past years we OBEY) that began by saying, we greatly not propose cuts to existing programs. have always supported Pell Grants and appreciate support for increased fund- the increase in Pell Grants and cam- b 1515 ing for the Pell Grant Program, and we pus-based student aid programs. believe it should be the top funding pri- This resolution simply establishes As a matter of fact, on the other side ority of all higher education programs. funding priorities for higher education. of the aisle, until recently they did I continue to believe that the Pell We have many higher education pro- not. But we, as a matter of fact, are de- Grant Program should be the top high- grams that have been in existence a lighted to see that our colleagues on er education funding priority. I also long time and serve students well, such that side are taking so much of an in- think a $400 increase to the maximum as the TRIO programs, Graduate As- terest in these programs that have pro- award is a very reasonable request. sistance in Areas of National Need, In- vided millions of low-income students For more than 7 years, the Pell grant stitutional Aid programs under Title with an opportunity to pursue higher maximum fluctuated between $2,300 III, and many others. We reauthorized education. H2572 CONGRESSIONAL RECORD — HOUSE May 4, 1999 On this side of the aisle, we have al- make them a funding priority. How- ered about 72 percent of the average ways believed that providing an oppor- ever, the Senate resolution refrains costs. Now we are in the position of tunity to less fortunate people of our from bolstering students’ aid at the covering about 34 percent of that. country is a paramount responsibility possible expense of other programs. As a result of that, many young stu- of the government. The Pell Grant pro- Senate Concurrent Resolution 828 is dents from low-income families who gram has provided millions of low-in- identical to this resolution except that have worked very hard in high school come students with the opportunity to it does not contain those last 12 words. to get the grades in order to do the pursue their higher education dreams The language in the Senate resolu- work required and to be accepted to and goals. tion would have allowed us to recog- college find out that economics now Moreover, I firmly believe that my nize Pell and campus-based aid as edu- stand in the way of them achieving good friend, the gentleman from Cali- cational priorities without denying the that education. fornia (Mr. MCKEON), the sponsor of importance of existing programs or the We should not allow that to happen, this resolution, is sincere in his desire potential importance of programs that because we obviously have an economy to expand opportunity to millions of may come out of the reauthorization of that needs the contributions of all of other struggling students. I sincerely ESEA. these young people to our economic regret that I cannot join him in sup- I regret that I did not have the op- system. For that reason, I join the bi- porting this resolution. portunity to offer that amendment partisan support for the increase in the As I stated, my concern surrounding here today. I regret that, as a result of Pell Grant. the resolution are the last 12 words, that, I will not be able to support this I am concerned, as the gentleman which call for the funding of Pell resolution. from California (Mr. MARTINEZ) pointed Grants and campus-based aid pro- Mr. Speaker, I reserve the balance of out, exactly the meaning of those grams, and I quote, ‘‘prior to author- my time. words at the end of the legislation, be- izing or appropriating funds for any Mr. MCKEON. Mr. Speaker, I yield 1 cause we know that there is a great new education initiative.’’ minute to the gentleman from New deal of concern that this would take Earlier, my colleague said that it York (Mr. GILMAN). precedence over the class size reduc- does not cut other programs, but it Mr. GILMAN. Mr. Speaker, I thank tion money, since that in fact is not an does prevent other programs from the gentleman for yielding me the authorized program and needs author- being funded. Although I understand time. ization. And if it were to take place and agree with my colleague and his Mr. Speaker, I am pleased to rise to after the passage of this resolution, desire to fund existing programs that express strong support for the House would that knock it out of the box? work before we create and fund new Concurrent Resolution 88 urging both We know that class size reduction, as programs, I am concerned that the lan- the President and Congress to increase we just found out last week with the guage in this resolution is ambiguous Pell Grants for low-income students, Tennessee study, is starting to have and may tie our hands and our ability and I commend the gentleman from some important positive impacts on to help the children of our country. California (Mr. MCKEON), the sponsor young people, when coupled with quali- The problem, as I see it, is that of this measure, for bringing it to the fied teachers. So I think the concern is House Concurrent Resolution 88 fails to floor at this time. quite proper that the gentleman from define the term ‘‘new education initia- Because the Pell Grant is basis for all California (Mr. MARTINEZ) has raised tive,’’ and leaves open the question of Federal student aid, and the amount of about that. But since I think we will how it might affect the future work of aid needed to cover the ever-rising cost get a second shot at that in our author- this Congress. of higher education is increasing, it is izations, I am prepared to support the For instance, is the class size reduc- imperative we make students’ scholar- full funding. tion initiative, which, although cur- ship aid a high priority. On the question of the IDEA funding, rently authorized for only 1 year, is in In the ever-increasing global market, I am deeply concerned about the sug- full swing in many of the States, is our Nation must make sure that it gestion that to be for full funding of that a new program? Is the Reading maintains its leading role. Therefore, education for individuals with disabil- Excellence Act which was just passed now more than ever we must guarantee ities, that therefore somehow we have last year a new program? that our students are well-prepared to to cut other worthy programs in the Also created last year was Gear Up, a compete against their counterparts education field, because we know that program that, like Pell and the cam- from all over the world. Education is it sets up a false choice between pro- pus-based aid programs, would allow the only way that we can ensure a grams like Head Start or America millions of low-income students to at- strong future for America’s children, Reads, all of which work to help kids tend college. Will it be considered a and increasing Pell Grant awards is become school-ready, to help them be- new program? one way we can begin to achieve that come ready to read and to participate If in the course of reauthorizing goal. in schools. ESEA we decide to consolidate several Accordingly, I urge our colleagues to While fully supporting the idea of existing professional development pro- fully support this measure. full funding for IDEA, I wish that the grams into a larger, more effective pro- Mr. MARTINEZ. Mr. Speaker, I yield Republicans had not tried to set it up fessional development initiative, will it such time as he may consume to the so they could chase away Democratic be considered a new program and there- gentleman from California (Mr. sponsors of this legislation by sug- fore go unfunded? GEORGE MILLER). gesting that it has to be done by cut- If we develop a program to address Mr. GEORGE MILLER of California. ting these other programs. school violence like that which took Mr. Speaker, I thank the gentleman for When we look at the Republican place in Littleton, Colorado, will it be yielding time to me. budget that cuts about $1.2 billion considered a new program and be de- Mr. Speaker, I rise in support of both below a freeze compared to 1999 in the nied funding? of these resolutions. Unfortunately, I education field, if we were to fully fund To avoid these pitfalls, during com- was detained and was not able to come this, we would be talking about a 40 mittee mark-up I mentioned that the over and speak on behalf of the full percent cut below the President’s edu- Senate is currently considering a simi- funding for IDEA. cation request to fully fund IDEA. lar resolution which has bipartisan But first let me say, on the Pell It is interesting to note that the support, and I offered that as a sub- Grants, I strongly support increasing Committee on the Budget, when full stitute to this resolution. the Pell Grant program. As outlined by funding of IDEA was offered, they Like House Concurrent Resolution a couple of the speakers already, clear- voted in lockstep against it, and again 88, the resolution currently being con- ly as the cost of college continues to in the Committee on Rules would not sidered by the Senate acknowledges accelerate, we find that we are cov- allow that amendment to be put into the importance of Pell and campus- ering a much smaller percentage of consideration, where we could have based student aid programs, and urges that with the existing Pell Grants than provided offsets or what have you with- the Congress and the President to we had previously. Previously we cov- in the budget resolution. May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2573 So I am not sure that this resolution at almost twice the rate of children all these programs in order to make them is exactly as it should be, but the fact from low-income families. more effective. More importantly, the formula is we should support the continued in- For many of the students from low- under which funds are distributed was modi- crease in appropriations of IDEA funds. income families, the cost of college is fied. Under the new formula, any new money Finally, let me say that time and the overwhelming factor in their deci- provided for the campus-based programs goes again it is suggested that somehow the sion to forego a college education. In to institutions of higher education that serve Federal Government is shirking its re- 1997 we supported the enactment of tax large populations of students from low-income sponsibility when it does not provide credits related to post-secondary edu- families who are most in need of financial as- all of the funding for IDEA. When we cation for middle- and upper-income sistance. passed that legislation, Republicans families. At the same time, we voiced These are fundamentally sound programs and Democrats said that the goal was strong concern about the need to con- that have served our nation's college students to provide some 40 percent of the ex- tinue making substantial commit- will for the past three decades and we should cess costs of providing education for in- ments to the Pell Grant program in consider them a higher education funding pri- dividuals with disabilities. order to assist those students from ority. It continues to remain a goal. It is a low-income families who would not re- This resolution does not propose cutting any goal that we have made great advance- ceive any benefits from the new tax programs. It does not say that we should not ments on in the last couple of years. credit. fund other education programs that work. It We ought to continue to go after it. I mention that because I want to does not pit one program against another. It But it is not a question of an unfunded mention now the most unbelievable simply says that our highest priorities for high- Federal mandate. The fact is that this thing that I think I have heard in my er education funding should be the Pell Grant is there because of the United States entire time in the Congress. Prior to Program and the campus-based aid programs, Constitution. our mark-up of this resolution in com- which have a proven record of success. If we were to repeal IDEA, every mittee last week, a Department of Edu- I urge my colleagues to support this resolu- State and local education authority cation official told the Subcommittee tion. Mr. MARTINEZ. Mr. Speaker, I yield would still have the obligation under on Labor, Health and Human Services 2 minutes to the gentleman from Indi- the Constitution of the United States of the Committee on Appropriations ana (Mr. ROEMER), a really strong ad- to educate these children in a free and that a $400 increase to the Pell max- vocate of education. appropriate education. They could end imum would not help low-income stu- Mr. ROEMER. Mr. Speaker, I thank up picking up 100 percent of the cost. dents all that much, since they would the gentleman from California (Mr. The Federal Government is trying to lose their tuition tax breaks. MARTINEZ) for yield me this time. I rise do the best it can to help districts with I want to repeat that, because I know to support the intent of the legislation, the cost of these educations, but the everybody listening will be smart not particularly the accomplishment of belief somehow is that this is our duty enough, I will not even have to explain the legislation. alone, and in fact the legislation passed how ridiculous it is. Certainly, the ‘‘whereas’’ clauses in last year would allow, unfortunately, b 1530 this Pell Grant concurrent resolution schools to withdraw support for IDEA are very, very strong and language But what he said was that a $400 in- if we hit a Federal threshold, so the that I agree with, particularly the fact crease to the Pell maximum would not same schools who are saying they do that in the language we talk about help low-income students all that not have enough money find out they being concerned that the impact and much since they would lose their tui- can in fact withdraw support for this the help of the Pell Grant has been tion tax breaks. effort. sliced in half from the 1970s. I think the intent of these resolu- I can only assume that the adminis- We have gone from providing through tions is good and is proper, and both of tration has forgotten the debate over a Pell Grant about 76 percent of the these programs need increases in fund- tax credits and the testimony of col- cost of education; in the 1990s now, the ing. The Pell Grant needs an increase lege officials and students who all impact of the Pell grant is about 36 in the maximum grant. But I am con- agree that up-front cash assistance percent of the cost of a 4-year public cerned about some of the nuances that such as the Pell Grant program is the college. That is slashing in half the im- are suggested in these resolutions. most effective form of aid for increas- pact and the help of the Pell Grant, Mr. McKEON. Mr. Speaker, I yield ing access to college. and we need to do something about myself such time as I may consume. Now, I would also remind that gen- that. Mr. Speaker, I thank the gentleman tleman, and he should not need to be I sat on an airline just this past week from California for his support of the reminded, retroactive tax credits are with a young gentleman from Indiana resolution. For the record, the Presi- great for those who have enough who was trying to select between Cor- dent’s budget for the year 2000 for edu- money to enroll in college in the first nell in New York and DePaul in Indi- cation is $65.28 billion. Our budget for place. But I am sure if he would just ana. The entire rationale for his deci- the year is $66.35 billion, $1.1 billion look at his statistics, he would dis- sion was going to be resting on one more than the President’s. cover that 54 percent of the families re- part of the economics of a decision be- Mr. Speaker, I yield such time as he ceiving Pell Grants have incomes under tween Cornell and DePaul, and that may consume to the gentleman from $10,000. What tax credits are they wait- was the financial aid: what Pell Grant, Pennsylvania (Mr. GOODLING), chairing for? What tax credits are they ex- Stafford loan, work study programs man of the full committee. pected to get? Of course, they do not could be put together. (Mr. GOODLING asked and was given get any. How silly the man could ever So families and students are very permission to revise and extend his re- make a statement of that nature. concerned about education. But what marks.) The resolution also expresses support we need to do, Mr. Speaker, as we show Mr. GOODLING. Mr. Speaker, I for campus-based student aid pro- our concern about the declining impact thank the gentleman for yielding me grams. and help of the Pell Grant, is to come the time. These need-based programs help students up with a piece of legislation, a bill There was a time when Pell Grants pay the bills that are not covered by a $3,000 that funds it. covered 75 percent of a college edu- Pell Grant. This is a concurrent resolution. It is cation. We are now down to about 36 The campus-based student aid programs re- not signed by the President. It is not percent. The good news is, however, we quire institutions to provide matching funds in an appropriation bill that takes a did get a $2.7 billion increase in the order to receive funds from the Federal gov- penny out of the Treasury. It simply last 3 years, so we have billions of dol- ernment. The $1.5 billion devoted to the cam- conveys the intent of Congress that we lars available in student aid from the pus-based programs last year leveraged al- would like to see some more money put Federal Government to State govern- most $400 million in additional aid to college toward Pell Grant. I think everybody ments and institutions of higher edu- students across the country. on our side would like to do that. I am cation, and children from high-income The Higher Education Amendments of 1998 sure everybody on the Republican side families continue to enroll in college enacted last fall, streamlined the operation of would like to do that. H2574 CONGRESSIONAL RECORD — HOUSE May 4, 1999 But what we need are not unfunded increased, and we should aim toward Mr. Speaker, I rise today in support of in- mandates, not unfunded resolutions, that goal before jumping into new un- creasing funding for Pell Grants. but bipartisan solutions to this prob- tested education initiatives. There is nothing better we can do for this lem. This resolution does not say that we nation than to improve education, and ensure Mr. McKEON. Mr. Speaker, I thank should not fund other higher education that all children in all communities across this the gentleman from Indiana (Mr. ROE- programs, and it does not pit one group nation have access to higher education. MER) for his support of our intent. of students against another. It simply Pell Grants were created to provided this I yield 3 minutes to the gentleman says that the Pell Grant program has access for low-income families. The Pell Grant from Nebraska (Mr. BARRETT), a mem- worked well, and that by making Pell Program was created in 1972 to assist stu- ber of the committee. Grants a priority, we are indeed mak- dents from low-income families in obtaining a Mr. BARRETT of Nebraska. Mr. ing education a priority and strength- postsecondary education by meeting at least Speaker, I thank the gentleman from ening our commitment to helping low- 75% of a student's cost of attendance. Unfor- California for yielding me this time. income students achieve their poten- tunately, Congress is not living up to its prom- Mr. Speaker, I rise in support of H. tial. ise. Con. Res. 88. This resolution proposes I urge my colleagues to supports H. In real dollars, the appropriated maximum our funding priority should first in- Con. Res. 88. individual grant, adjusted for inflation, has de- clude programs that work, and Pell Mr. MARTINEZ. Mr. Speaker, I yield creased 4.7% between 1980 and 1998. Con- Grants do work. We are talking about 2 minutes to the gentlewoman from the sidering the exorbitant increases in college a program of more than a 25-year track beautiful State of Hawaii (Mrs. MINK). costs, the Pell Grant has covered less and record of success. Pell Grants have of- (Mrs. MINK of Hawaii asked and was less of a student's cost of attendance. In just fered millions of students the oppor- given permission to revise and extend the last 10 years, total costs at public colleges tunity to pursue a higher education. her remarks.) have increased by 23% and at private col- While opening that door, they help nar- Mrs. MINK of Hawaii. Mr. Speaker, leges by 36%. According to the General Ac- row the gap between the rich and the we have heard previous to this debate a counting Office, this means that over the last poor and help alleviate the debt burden long dissertation about the Federal ob- 15 years, tuition at a public 4-year college or ligation to fund IDEA. While there is from young people just starting out in university has nearly doubled as a percentage disagreement in terms of how that re- their careers. of median household income. All students suf- Students awarded Pell Grants are sponsibility has fallen upon the Fed- fer as a result of these increases; however among the neediest, and probably eral Government, most of us agree that students from low-income families suffer the funding for IDEA should be increased. would not have attended college with- most. Now we are discussing another con- out this financial assistance. For ex- The resolution before us calls for an in- current resolution which has to do ample, in the 1995–1996 school year, 54 crease of $400 in the maximum Pell Grant with Pell Grants. This I believe is a awarded to students from low-income families. percent of Pell Grant recipients came time when the majority must listen to from families with incomes of less than Although it is important to raise the max- what they were saying when they de- imum Pell Grant awarded, it does not go far $10,000. bated IDEA. We all know that students from mid- enough. We need to guarantee that eligible The authorization language which students are entitled to the maximum amount dle and high-income families are more comes from this august committee likely to attend college, and one reason under the Pell Grant Program. Today, I have calls for a basic funding of Pell Grants. introduced legislation that does just that. is that those parents can at least help That ought to be interpreted as an ob- My bill will create a contractual obligation on finance the costs. Students from low- ligation which this Congress and this the United States to reimburse institutions that income families do not have that safe- Federal Government is according based award Pell Grants to its eligible students in the ty net, and Pell Grants help fill that upon very severe eligibility standards. full amount they are entitled to. Simply put, my void. At the current level, a Pell Grant Much as we do Medicare, we have eligi- bill guarantees that an eligible student will re- on average only covers 36 percent of bility standards and then we decide ceive the maximum award amount she is enti- the cost of college, compared to 77 per- how much funding that individual tled to. By guaranteeing that eligible students cent in the 1970s. should get for Medicare, for hos- will receive the maximum amount, this bill will The Federal Government also helps pitalization, for doctor’s care, and so make it easier for students from low-income students with loans, and thousands of forth. families to get a higher education. both low and middle-income students It seems to me that if we are really I urge my colleagues to do more than sup- finish college each year with loans to true to what we are saying on this floor port this resolution, which merely requests a pay off. In fact, the average student with regard to the importance of fund- $400 increase in the maximum award allowed. graduates with more than $9,000 in ing low-income students, giving them I urge my colleagues to support my legislation debt. But low-income students, who the best opportunity to have a higher which guarantees that eligible students are en- have had to finance nearly everything, education, this Congress ought to fund titled to the maximum amount authorized can face particularly steep debt. the complete amount that we authorize under the Pell Grant Program. This problem is amplified when con- for Pell Grants. That is the only way Mr. MCKEON. Mr. Speaker, I yield 2 sidering that often these students we are going to meet our fundamental minutes to the gentleman from Ohio choose lower paying but very impor- responsibility. Let us not talk about (Mr. BOEHNER), subcommittee chair of tant jobs like teaching or social work. just $400 beyond what was authorized the Committee on Education and the In these situations, students may be or appropriated last year. We ought to Workforce. faced with years and years of debt pay- go for the entire amount. Mr. BOEHNER. Mr. Speaker, Amer- ments. We can lower that hurdle to Mr. Speaker, I am introducing a bill ican students I think are confused higher education by not only con- today which I ask all of my colleges on about the President’s student aid prior- tinuing our strong support for the Pell both sides of the aisle to cosponsor ities. Grant program, but by also increasing with me, and that is to make the Pell On Election Day in 1996 they heard the minimum Pell Grant level. Grant program an entitlement. Young the President proclaim, and I will The current maximum for Pell people ought to know with great assur- quote, ‘‘I am proud that we have got Grants is $3,125. This resolution sug- ance that if they meet the criteria for the biggest increase in Pell Grants in gests a modest $400 increase. The reso- a Pell Grant to go on to higher edu- 20 years, but we must do more. I want lution also proposes increasing, within cation, that this Congress is willing to to open the doors of college to all the context of our balanced budget fund it. Americans; and if you give me 4 more agreement, other aid programs that So I have created a program which years, that is exactly what I intend to serve low-income students. Those pro- makes it a responsibility for this Con- do.’’ grams include work study, Supple- gress, for this Federal Government, to That was in Lexington, Kentucky. He mental Education Opportunity Grants, treat this program as an entitlement. said the same thing in Cleveland, and Perkins Loans. Pell Grants, these Every young person ought to have that Santa Barbara, Green Bay, New Orle- programs work, and they could be put right to continue on to higher edu- ans, St. Louis, and the Democratic to much broader use if the funding is cation Convention in Chicago. May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2575 Many students also heard this ad, run In fact, I searched for the one bill do that today, even if they worked 40 by the President’s campaign, and I will that has been filed that would, in fact, hours a week. The costs have gone up quote, ‘‘As a Latino and a student, I raise the authorization for Pell Grants too much. I paid $188 a semester for know the value of education.’’ The ad to make them worth what they used to tuition. Today, it is many, many times read in Spanish. ‘‘Under President be worth when this program was origi- that. Clinton, Pell Grants and scholarships nally adopted, and that is H.R. 959. I am very intimately aware of the were increased. President Clinton There were 62 sponsors and cosponsors concerns and the problems that stu- wants us to have more opportunities to on that bill, not one Member of the ma- dents have, and I have a special ac- improve our quality of life. That is jority party. quaintance with these problems be- why, on November 5, I am going to vote So here we are today talking about a cause after going to college I went to for President Clinton.’’ resolution. It is Teacher Appreciation graduate school, got a doctorate, and I Well, Mr. Speaker, on November 5, Week. All things education are appar- taught at the University of California that is exactly what a lot of students ently on schedule for all of us. But for some time and at Calvin College. So did. But now the President is singing a when the dollar has to stop and the I have had experience in both the pub- different tune. The President is pro- buck has to stop here, Mr. Speaker, let lic and the private sector. posing cutting Pell Grant funding by 3 us see how many people on the other Higher education is expensive, and I percent; he proposes cutting Perkins side are willing to actually come for- am very thankful that the Federal Loans by eliminating an adjustment ward with the money by raising the ap- Government has established student for inflation; and he proposes cutting propriation level and by raising the au- loan programs and Pell grants which student loans by $2 billion in favor of a thorization level to make Pell Grants allows every student today to achieve a program that makes the Department of really what they should be worth. college education. We have fallen be- Education the country’s largest bank, Again, I think we are faced here with hind in the amount of money available, a loan program that is 30 percent more a potential in this language for pitting particularly for lower income students. expensive than the private sector pro- program against program. The other I strongly support this resolution, and I ask this House to support it so gram, and that is the program that side says that is not the case, and we that our students, no matter what the most universities say that they do not hope it is so. And we are probably all income level of the family, are able to want. going to vote for this because we want go to colleges and universities, achieve Mr. Speaker, students are confused the strong message to continue as we a higher education and thereby im- about the President’s student aid prior- have continuously put it forward, that prove their earning potential through- ities, so let us be crystal clear about we need to pay for Pell Grants because out their lives, as well as their appre- ours. This resolution sends a clear mes- that is the best way to fund higher edu- ciation of life and all that comes with sage that we are serious about funding cation. We need to raise funds for work education. programs that have been proven to study programs. We need to make the Mr. MARTINEZ. Mr. Speaker, I yield work. interest rates as low as possible for 2 minutes to the gentleman from Ten- I went to college myself on a pro- anybody that does have to take a loan. nessee (Mr. FORD), a member of the gram that is now known as the Perkins But, Mr. Speaker, we have to stop committee. Loan, and I can tell my colleagues making resolutions and feel-good Mr. FORD. Mr. Speaker, I thank the firsthand that these programs do work. pieces of legislation, move on to bills gentleman from California for yielding But if my colleagues no longer believe and acts that actually put our money me this time, and I rise in support of that these programs should be our where our mouth is, and make things both resolutions we are considering highest priority, then vote ‘‘no’’ on happen. We stand ready to do that. today, both which urge this Congress this resolution. But do not blame stu- Mr. MCKEON. Mr. Speaker, I yield 2 and the President to fully fund IDEA dents for being confused about where minutes to the gentleman from Michi- and the Pell grant Programs before we stand on these student aid prior- gan (Mr. EHLERS), a member of the funding any new program. ities. committee. As a supporter of both these pro- Mr. MARTINEZ. Mr. Speaker, I yield (Mr. EHLERS asked and was given grams, I understand that IDEA pro- 2 minutes to the gentleman from Mas- permission to revise and extend his re- vides an education for many American sachusetts (Mr. TIERNEY). marks.) children who would otherwise be denied Mr. TIERNEY. Mr. Speaker, I am Mr. EHLERS. Mr. Speaker, I thank an education, and the Pell grant has shocked, but pleasantly shocked, pleas- the gentleman from California for enabled millions of Americans, includ- antly shocked to hear the other side of yielding me this time. ing my good friend and colleague, the the aisle finally stepping up to the I have a personal interest in this. The gentleman from Michigan (Mr. plate and saying that rather than shut previous speaker wondered why Repub- EHLERS), to attend college. However, down the Department of Education, licans are supporting this bill, and I Mr. Speaker, these nonbinding resolu- they understand that there is a Federal can certainly tell him why this Repub- tions will not make a dent, really, even commitment to do something to raise lican is. with all the flowery and wonderful the level and to raise the bar. b 1545 rhetoric we have heard from both sides I was listening to the gentlewoman today. For we are merely expressing from Hawaii (Mrs. MINK) speak about When I wanted to go to college, my our wishes, merely talking about the making Pell Grants an entitlement, parents, who were low-income, regret- problem, but not acting. and I thought maybe we would need fully told me that they simply did not I can assure my colleagues that if some armed guards over here to stop have the money to support me. They Democrats were in control of this all of our friends and colleagues from would do what they could, but it was Chamber, not only would we be talking the other side rushing over and signing not much, and I would have to earn my today, we would be preparing to act. In onto that legislation as cosponsors. own way. fact, if we were serious about edu- But I trust that really will not be a I was not sure I would go to college cation, we would probably think about problem. but, fortunately, I was able to get sum- funding the class size reduction pro- In fact, I asked some members of the mer employment in high school and gram of the President and the gen- Committee on Education and the save up enough money for the first tleman from Missouri (Mr. CLAY). Workforce who have been there for year, and so I went off to college. I As the chairman of the full com- quite some time to search back in their worked my way through, every cent, mittee and the gentleman from Cali- historical perspective to see if there every inch of the way. I worked over 25 fornia (Mr. MARTINEZ) both know, in ever was an occasion when the current hours a week during the school year. I Tennessee, where I am from, a study majority proposed more money for Pell worked over 60 hours a week during the was just completed to show that small Grants, to raise the authorization for summers in order to put myself classes in grades K through 3 continue Pell Grants, that the Democrats were through college. to outperform students in larger class- not first in line to be there and do that. I am not saying this to brag, but I es right through high school gradua- They could remember none. simply point out that students cannot tion. H2576 CONGRESSIONAL RECORD — HOUSE May 4, 1999 I know my dear friend, the gen- grams. This resolution does not pro- So I will continue to not support this tleman from Nebraska (Mr. BARRETT), pose cutting any other program. Un- resolution. As I say, I will not vote knows and strongly believes, as I do, like the President’s budget, we do not against it, but I will not vote for it. I that we should support programs that propose to cut the Pell grant Program will reserve my right to be in strong work. This program works. appropriation, Impact Aid, Title VI support of Pell grants through other In addition, our schools are in dire block grants, or the other programs methods. And I will especially wait for need of modernization. It has been that are clearly not priorities of the the authorizing bill, in which I will shown that this Federal Government President. vote, if that authorizing bill increases can contribute money to build new It does not say we should not fund Pell grants. prisons and build new roads and build other education programs that do This is not an authorizing bill, and it new highways. We have to find the ca- work. It does not aim to pit one group does not carry any weight in law. pacity and the courage to build new against another. It simply says our Mr. MCKEON. Mr. Speaker, I yield 30 schools. highest priority for higher education seconds to the gentleman from Wash- Let us stop being the suspension bill funding should be the Pell Grant and ington (Mr. METCALF). and resolution Congress. I say to the Campus-Based Aid Programs, which Mr. METCALF. Mr. Speaker, I rise other side, let us go to work and do the have a proven success record. today to honor our Nation’s teachers. I job the American people pay us $136,500 If my colleagues do not believe that would like to thank them for their a year to do. Resolutions, expressing the Pell grant and Campus-Based Aid dedication and inspiration. our wishes will not do it. It is time to Programs work and should be our high- I was a public school teacher for 30 act. This Congress has failed that test, est priority, then I urge them to vote years, so I understand the importance and we are failing American children in ‘‘no’’ on this resolution. But I would of a good education and the foundation the process. urge my colleagues to support this pro- it builds for our youth. American stu- Mr. MCKEON. Mr. Speaker, I yield 2 gram. It supports those low-income dents, parents and teachers must main- minutes to the gentleman from Cali- students who mostly need our help. tain the highest level of quality in edu- fornia (Mr. GARY MILLER), one of our I urge my colleagues to: support existing cation. great Members. programs before rushing to fund a new fad; Mr. MCKEON. Mr. Speaker, I yield (Mr. GARY MILLER of California support those lower income students who ben- myself the balance of my time. asked and was given permission to re- efit from the Pell Grant Program, and support A lot of the debate today, Mr. Speak- vise and extend his remarks.) community colleges and colleges in your com- er, has focused on Pell grants, but I Mr. GARY MILLER of California. Mr. munities. also want to point out this does cover Speaker, let me tell my colleagues who I urge my colleagues to support this com- the Campus-Based Aid Programs which is most impacted by the shrinking mon sense resolution. provide institutions with Federal sup- power of Pell grants: community col- Mr. MARTINEZ. Mr. Speaker, might port for grants, loans, and work-study leges, junior colleges and the students I inquire how much time we have re- programs. These require matching they serve. maining? funds from the schools. It gives the In California, our community college The SPEAKER pro tempore (Mr. schools greater flexibility to keep system has 106 campuses, 71 districts SHIMKUS). The gentleman from Cali- those in school that have the greatest and serves 1.5 million students. That is fornia (Mr. MARTINEZ) has 11⁄2 minutes need. And with requiring the matching the largest system in the country, remaining, and the gentleman from funds, it is a multiplier and brings dedicated to serving students with in- California (Mr. MCKEON) has 1 minute more money to the table to help those comes below those students who attend remaining. students that need it the most. our large University of California and Mr. MARTINEZ. Mr. Speaker, I yield There has also been some talk about California State University systems. myself the balance of my time. the fact that this is a resolution and They are the ones on the margin who Mr. Speaker, in closing, I just want does not really carry the weight of law. are most impacted by any fee increase to say we are not worried about pitting It does state and it does show how we or any loss in buying power from the Pell grants and Campus-Based Student have performed the last 5 years. Since Pell grant. Aid against other programs that have we have had the majority, we have in- The Pell grant was created to serve long been in existence and have long creased Pell grants every year. It indi- as the foundation of need-based student proven themselves to be worthy of cates our high priority for the Pell aid, and it is the single most important funding. That is not the question. The grants and campus-based programs and program for low-income students question is, are we going to tie our the fact that we continue to want them served by community colleges. hands so that if there is an innovative to be the highest priority of higher More and more students are bene- new program, in order to deal with education. fiting from Pell grants. In 1973, 176,000 school violence, such as the school vio- Mr. RODRIGUEZ. Mr. Speaker, I rise today students received Pell grants. Under lence that happened in Littleton, Colo- in support of significant increased funding for this resolution, almost 4 million stu- rado, are we then going to tie our Pell Grants and Campus-Based Aid programs. dents will receive a Pell grant next hands and say we cannot fund a pro- Coming from south Texas, I know the dire year. gram, no matter how great it may look need for Pell Grants. By providing resources Unfortunately, its purchase power or how much good we feel it can do be- for our students, we create real opportunity for has declined by 25 percent over the past cause we have tied ourselves to this them to attain higher education. 20 years. The President’s last budget resolution? The Pell Grant program is the largest need- actually cut current appropriation lev- Now, I say that, but I am not really based Federal grant program for students pur- els by $250 million in order to fund his that concerned about it, because this is suing higher education. I know that in San An- new education programs. The most dis- a resolution that carries no impact in tonio, this program is the foundation for stu- turbing part is that if the President did law. In fact, I think I will vote for S.28, dent aid. Pell Grants help our students from not propose cutting the actual appro- if it will ever get over here, but it will families of modest income who could not oth- priations, we would already be funding not get over here. erwise afford a college education. a $3,325 grant. I will support Pell grants. My deci- I support the resolution but would like to ex- Maybe it is the nature of politics to sion to not vote for this bill does not press my strong reservations about the word- loudly speak in favor of a program mean I do not support Pell grants. ing. This resolution is another example of how when it is new but then take money What it does mean is that I do not be- Republicans are purporting to be education from it when it is not so new anymore lieve in the idea of cutting ourselves friendly when they are not. Just like a wolf in to get credit for creating a new pro- from any program that might have a sheep's clothing there is a face behind this gram. tremendous impact on some aspect of resolution. All this resolution does is say that education just because we say that we The language in this resolution essentially we will appropriately fund the pro- are feeling that Pell grants should be says that any new programs we come up with grams that work, instead of taking of the highest priority. We can say that would have to take a backseat to Pell Grant money from them to create new pro- without doing this. increases. May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2577 To make demands on what programs During the committee markup my col- save for their children's education. Although should take precedence at this time, is unreal- leagues and I offered amendments to H. Con. the various plans I have supported differ in de- istic and removed from the approach we Res. 88 designed to increase Pell Grants with- tail, they all share one crucial element. Each should be taking on the funding of our edu- out jeopardizing other worthy programs. The allows individuals the freedom to spend their cation programs. For example, what if a new language we offered was the same language own money on higher education rather than program is introduced later on this year that adopted in the Senate on a bipartisan basis. forcing taxpayers to rely on Washington to re- will seriously address the needs of our youth The Senate resolution calls for increased Pell turn to them some percentage of their own tax and the issue of violence? Does this program Grants, without pitting one education program dollars to spend as bureaucrats see fit. automatically get a back seat simply because against another. Unfortunately, we are not In conclusion, Mr. Speaker, I call upon my it is a ``new'' program under this resolution? successful in these efforts. colleagues to reject H. Con. Res. 88 and any Yes, we should fund Pell Grants but we We should go on record for increasing our other attempt to increase spending on federal should also look at the bigger picture and real- overall investment in education, instead of rob- programs. Instead, my colleagues should join ize that there may be other ``new'' programs bing Peter to pay Paul. me in working to put the American people in that have been introduced that will be equally Mr. PAUL. Mr. Speaker, I appreciate the op- control of higher education by cutting taxes as important and help with the early develop- portunity to explain why I oppose H. Con. Res. and thus allowing them to use more of their ment of our students in the K±12 grades. 88, which expresses the sense of the Con- resources for higher education. Higher education is a priority and what bet- gress that funding for the Pell Grant Program Mr. CUMMINGS. Mr. Speaker, today, I ter way than through increases in Pell Grants. should be increased by $400 per grant and come before the House to ask, ``have the Re- However, we should also make sure that we calls on Congress ton increase funding for publicans done a U-turn?'' are doing what we can to strength the founda- other existing education programs prior to au- Their education record includes: opposing tion of our elementary and secondary edu- thorizing or appropriating funds for new pro- education funding increases; passing a year cation system. grams. While I certainly do oppose creating 2000 budget $2.9 billion short of the Presi- If our Republican colleagues are serious any new federal education programs, I also dent's education proposal; and advocating for about the Pell Grant program I encourage oppose increasing funds for any programs, re- the abolishment of the Department of Edu- them to support H.R. 959, the Affordable Edu- gardless of whether or not the spending is cation. cation through Pell Grants Act. The legislation within the constraints of the so-called bal- Again, I ask, `ìs this resolution a Republican will raise the maximum Pell Grant award level anced budget agreement. Mr. Speaker, in- U-turn?'' to $6,500 for the academic year 2000 to 2001, stead of increasing unconstitutional federal I submit, Mr. Speaker, that there has been bringing it to funding where the Pell Grant is spending, Congress should empower the no U-turn. The Republican course is straight meant to be. American people to devote more of their own and does not lead to a true endorsement of If Republicans want to put their money resources to higher education by cutting their education. where their mouth is, I would ask that they taxes. Cutting taxes, not increasing federal I support Pell Grant increases. However, also support H.R. 959. spending, should be Congress' highest pri- without language to state otherwise, I am left Education is our number one priority. The ority. to surmise that this resolution may endanger future of our economy, and our communities By taxing all Americans in order to provide initiatives to reduce class size, hire more rests our ability to increase access to higher limited aid to a few, federal higher education teachers, and modernize schools. education but to also ensure our students can programs provide the federal government with Let's set a better course and invest at every get from point A to point B. considerable power to allocate access to high- level of our children's educationÐpreschool Mr. CLAY. Mr. Speaker, it's a great revela- er education. Government aid also destroys through postsecondary. tion to see that our colleagues on your side of any incentives for recipients of the aid to con- Let's stand up for all worthwhile education the aisle have come to realize the importance sider price when choosing a college. The re- inititives! of increased support for student aid programs sult is a destruction of the price control mech- The SPEAKER pro tempore. The which assist low income students. I am espe- anism inherent in the market, leading to ever- question is on the motion offered by cially pleased that, after numerous efforts to rising tuition. This makes higher education the gentleman from California (Mr. slash funding for education programs, Repub- less affordable for millions of middle-class MCKEON) that the House suspend the licans now see the light. My hope is that they Americans who are ineligible for Pell Grants! rules and agree to the concurrent reso- will continue moving in that direction and real- Federal funding of higher education also lution, House Concurrent Resolution ize that increased funding for education across leads to federal control of many aspects of 88. the board is essential to increase educational higher education. Federal control inevitably ac- The question was taken. opportunities. companies federal funding because politicians Mr. McKEON. Mr. Speaker, on that I Mr. Speaker, I support a substantial in- cannot resist imposing their preferred solutions demand the yeas and nays. crease for Pell funding. In fact, in the last Con- for perceived ``problems'' on institutions be- The yeas and nays were ordered. gress I introduced legislation to make Pell holden to taxpayer dollars. The prophetic The SPEAKER pro tempore. Pursu- Grant funding mandatory spending, just like soundness of those who spoke out against the ant to clause 8 of rule XX and the the loan programs. creation of federal higher education programs Chair’s prior announcement, further However, I am concerned that the way H. in the 1960s because they would lead to fed- proceedings on this motion will be Con. Res. 88 is written, could be interpreted to eral control of higher education is dem- postponed. pit one group of education programs against onstrated by examining today's higher edu- f another. If adopted and adhered to by the ap- cational system. College and universities are propriators, it would rob Peter to pay Paul. so fearful of losing federal aid they allow their GENERAL LEAVE The record of House Democrats' support for policies on everything from composition of the Mr. McKEON. Mr. Speaker, I ask increased aid to needy college students is student body to campus crime to be dictated unanimous consent that all Members clear. House Democrats have been in the by the Federal Government. Clearly, federal may have 5 legislative days within forefront in advocating increased funding for funding is being abused as an excuse to tight- which to revise and extend their re- student aid programs without short-changing en the federal noose around both higher and marks on House Concurrent Resolution or reducing spending for other programs. elementary education. 88. Since 1996, Democrats, in conjunction with Instead of increasing federal expenditures, The SPEAKER pro tempore. Is there the President, have been responsible for add- Mr. Speaker, this Congress should respond to objection to the request of the gen- ing nearly $8 billion more for education than the American people's demand for increased tleman from California? was in bills supported by House Republicans. support of higher education by working to There was no objection. With respect to Pell Grants, since 1996 the pass bills giving Americans tax relief. For ex- f President requested, and House Democrats ample, Congress should pass H.R. 1188, a bill supported, an increase of $3.4 billion, while I am cosponsoring which provides a tax de- EXPRESSING SENSE OF HOUSE IN House Republicans advocated 62% less. duction of up to $20,000 for the payment of SUPPORT OF AMERICA’S TEACH- Today, we are being asked to vote for a college tuition. I am also cosponsoring several ERS resolution that would aid freshmen at the ex- pieces of legislation to enhance the tax benefit Mr. ISAKSON. Mr. Speaker, I move pense of first graders. We believe that is an for education savings accounts and pre-paid to suspend the rules and agree to the unwise, inappropriate choice. tuition plans to make it easier for parents to resolution (H. Res. 157) expressing the H2578 CONGRESSIONAL RECORD — HOUSE May 4, 1999 sense of the House of Representatives Georgia, a teacher who made a student I remember one particular teacher in support of America’s teachers. of me. She was a disciplinarian, a de- that really turned me around in the The Clerk read as follows: manding lady, a lover of literature. For sixth grade. And I was busy doing H. RES. 157 me, before having Ms. Gibson, learning things I should not have been doing, Whereas the foundation of American free- was work and books belonged on drawing pictures instead of doing the dom and democracy is a strong, effective sys- shelves. After attending her class, class lesson. And she snuck up behind tem of education in which every child can barely making it the first time and ex- me and caught my attention with the learn in a safe and nurturing environment; celling the second, everything that is ruler that she carried, which was about Whereas a first-rate education system de- open to me today is because of the win- 18 inches long and about 11⁄2 inches pends on a partnership between parents, dows of the world that she opened in wide, and it came down across my principals, teachers, and children; teaching that appreciation. hands with a real sting. And I jumped Whereas much of the success of our Nation In my home district in Cobb County, during the American Century is the result of up and raised back my hand, and she the hard work and dedication of teachers there is a teacher by the name of Linda immediately struck me in the face across the land; Morrison, a social studies teacher in with the ruler, not hard, just enough to Whereas, in addition to their families, North Cobb High School in Cobb Coun- make a sting and get my attention. knowledgeable and skillful teachers can have ty, who year in and year out her teams And she got my attention. And then a profound impact on a child’s early develop- win Model U.N. and win debates. Every she instructed me to sit down and wait ment and future success; year political candidates come to her until the bell rang and I would stay Whereas, while many people spend their class and they are overwhelmed by the after school, and I did. lives building careers, teachers spend their inspiration and motivation that Linda careers building lives; But that was the most prosperous Whereas our Nation’s teachers serve our Morrison places in all those children. couple hours I had ever spent in school children beyond the call of duty as coaches, I did that trip 3 months ago, shortly in my life, because in that 2 hours she mentors, and advisors without regard to before my special election. Linda taught me everything there was to fame or fortune; and turned the classroom over to me; and I learn about the lesson I was supposed Whereas across this land nearly 3 million was once again impressed by the re- to be learning. And I noticed some- men and women experience the joys of teach- spect, the courtesy, and the insight of thing about it. When I started realizing ing young minds the virtues of reading, writ- those kids. When I left the class, once that I could do the work and I was get- ing, and arithmetic: Now, therefore, be it again awed, the principal put his arm Resolved, That the House of ting the answers right, I looked up and around me and told me that Ms. Morri- I saw her smiling at me from ear to Representatives— son had just finished her first chemo (1) honors and recognizes the unique and ear. No one in the class had ever seen important achievements of America’s teach- treatment but had come to class to see her smile before. And I thought, this is ers; and to it that her students were fulfilled really a very nice teacher. (2) urges all Americans to take a moment and her class went on. But more important was what she to thank and pay tribute to our Nation’s b 1600 taught me that day. Well, from that teachers. That is the kind of dedication, that is day on I never had a problem with The SPEAKER pro tempore. Pursu- those lessons again and I decided that ant to the rule, the gentleman from the kind of commitment we see not just in one but in many of our teachers I can learn. But I think that was what Georgia (Mr. ISAKSON) and the gen- all over America. she was saying to us. tleman from California (Mr. MARTINEZ ) And lastly, it is only fitting that I I remember one time Terrel Bell, the each will control 20 minutes. recognize Andy Baumgartner, this year Secretary of Education under Reagan, The Chair recognizes the gentleman the United States of America’s Teacher when he said to us one time at a hear- from Georgia (Mr. ISAKSON). of the Year, as honored just 2 weeks ing, there is nothing so rewarding to a Mr. ISAKSON. Mr. Speaker, I yield ago in Washington D.C.; a kindergarten teacher as when they look into that myself such time as I may consume. teacher outside of Augusta, Georgia young person’s eyes and see that light Mr. Speaker, it is only appropriate who dedicates his life to putting ex- go on, that they learned that they can that today on the floor of this House citement into education for every learn. Well, Mrs. Cassons saw that the Congress of the United States of child. He recognizes that, at the age of light go on in my eyes and she made America recognize and acknowledge five, he has one opportunity to help the me realize that a good teacher can the teachers of our country. Today, life of an individual in the most forma- make the difference between success over 3 million American men and tive year of their education. and failure for a student. women are teaching our children, our Mr. Speaker, it is only appropriate Recent studies show that teacher next generation, our Nation’s greatest that this House today commend our quality is the most single important resource. teachers all over this country, recog- factor in student achievement. In re- Were I to stand anywhere in this nize them for the contribution they cent hearings that we have held in the Chamber and pose one question to make, and appreciate the fact that committee of the gentleman from Cali- every Member, I would get exactly the today in every American classroom fornia (Mr. MCKEON) we have had testi- same response. Were I to ask any Mem- they are under the watchful eye of a mony, and when they were asked what ber, think for a second and tell me if teacher, an individual who is willing to was the most important thing in the there was ever a teacher that made a share with them. education of young people, each of difference in their life, instantly, with- And, Mr. Speaker, I think all of us them answered the quality teacher. out question, every individual would remember or might ask, had it not However, if we look at today’s teach- think of a teacher or teachers and been for teachers or a teacher, where ers, they face greater challenges than would respond further with a story might any of us have been today? ever before, greater challenges than my about how that person had impacted Mr. Speaker, I reserve the balance of teacher, Mrs. Cassons, ever saw. Class- their life. my time. es are larger and they are more unman- So, too, is it true with almost every Mr. MARTINEZ. Mr. Speaker, I yield ageable. Classroom spaces are now in- adult in America today. Save only our myself such time as I may consume. adequate and they are in poor condi- parents, teachers are the most impor- Mr. Speaker, I rise in support of H. tion and often pose a safety hazard. tant people in the lives of our children. Res. 157, which recognizes the unique Discipline problems and school vio- While we are doing the right thing to and important achievements of Amer- lence are at an all-time high, as we re- pause today and pay tribute to Amer- ica’s teachers and urges all Americans cently saw in Colorado. On top of all ica’s teachers, we must remember to pay tribute to our Nation’s teachers. this, teacher candidates often do not every week and every day to give As the gentleman from Georgia (Mr. receive adequate training, new teach- thanks and give support for the con- ISAKSON) just said, most of us can point ers are not supported by their school tribution that they make. to a teacher in our lives that has made system, and experienced teachers are Were I to be asked if a teacher had a difference. Were it not for the benefit not provided with meaningful profes- made a difference in my life, I would of several outstanding teachers, I sional development they need to re- think back to Alice Gibson in Atlanta, might not be where I am today. main effective. May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2579 Under these circumstances, even Mrs. ticular subject, and oftentimes they teachers are stepping forward on, it is Cassons would have had problems. are not given quality in-service pro- not only to ensure that our schools get Therefore, I think it is high time we grams. better but that our schools are safe. provide our Nation’s teachers with So we, as Congress, working along And in Jonesboro, Arkansas and in some greatly needed assistance. with States, schools and parents, must Littleton, Colorado we have school Although most decisions regarding continue to address the problems that safety issues where teachers not only teacher recruitment, training, and pro- face our Nation’s teachers. gave their intelligence, their talents, fessional development are made at the Specifically, we must continue to and their integrity; they gave their State and local level, as they should take a close lock at existing Federal lives. They put their lives on the line be, Congress has before it the wonder- education programs to determine if, in and they lost them on school safety ful opportunity to provide our Nation’s fact, they are meeting the needs of our issues to protect other children. teachers with the tools and support teachers as well as the students they So this resolution I think is timely, they need to educate the next genera- are intended to serve. If not, working Mr. Speaker, in that not only should tion of American citizens. together with State and local schools we thank our teachers, not only should I feel very lucky to be the ranking and parents, we must develop new ways we engage our education system and member on the subcommittee which to ensure these funds are being used ef- participate as community leaders and has jurisdiction over such a wonderful fectively. as parents, but we should also recog- opportunity. And I am pleased to say Mr. Speaker, in closing, I simply nize the unlimited contributions that that the gentleman from California want to say to our teachers one great these teachers make to our children in (Mr. MCKEON) and I are currently big ‘‘thank you.’’ terms of their intelligence, in terms of working on legislation which provides Mr. MARTINEZ. Mr. Speaker, I yield their safety, and in terms of their long- such time as he may consume to the incentives to States and districts to standing contributions in society. gentleman from Indiana (Mr. ROEMER). get high-quality individuals into the Mr. ISAKSON. Mr. Speaker, I yield 1 (Mr. ROEMER asked and was given minute to the distinguished gentleman classroom and keep them there. permission to revise and extend his re- I know that the chairman, the gen- from New York (Mr. GILMAN). marks.) (Mr. GILMAN asked and was given tleman from California (Mr. MCKEON), Mr. ROEMER. Mr. Speaker, I thank permission to revise and extend his re- and many of my colleagues share my my good friend from California for desire to help those special individuals marks.) yielding me the time. Mr. GILMAN. Mr. Speaker, I thank who dedicate their lives to bettering Mr. Speaker, I would start off by the gentleman for yielding me the the lives of others. I look forward to pointing out that the purpose of this time. working with everyone in Congress to resolution, Mr. Speaker, is twofold; and Mr. Speaker, I rise in strong support ensure that every child has a Mrs. I would start with the second one, for Teacher Appreciation Week; and I Cassons. which urges all Americans to take a urge Americans everywhere to take a Mr. Speaker, I reserve the balance of moment to thank and pay tribute to moment to pay tribute to our Nation’s my time. our Nation’s teachers. teachers. Mr. ISAKSON. Mr. Speaker, I am As a former teacher, Mr. Speaker, A sound democracy rests on a first- pleased to yield 2 minutes to the gen- and as a product of both Catholic pri- rate education system, one where par- tleman from Pennsylvania (Mr. GOOD- vate education and public education, I ents and teachers work together. A LING), distinguished chairman of the rise to thank the many teachers that solid education in any of our Nation’s Committee on Education and the contributed to my education, that con- schools comes from the teachers who Workforce. tribute to the children’s education strive to give the gift of knowledge to Mr. GOODLING. Mr. Speaker, I throughout Indiana, and contribute to the minds of our future generations. thank the gentleman for yielding me all our Nation’s children throughout Dedicated teachers work day after the time. all the schools in the United States of day to ensure that all of our students I rise in support of the resolution to America. will have a bright and successful life. honor and recognize the unique and im- There is not a single more important Teachers wear many hats: as coun- portant achievements of America’s profession or calling on the face of the selor, friend, and, most importantly, teachers. As one who spent many years Earth than to get into a school class- role model. Today learning not only of his professional life in schools, and room with 30, 25, or 30 or 35 children consists of the three R’s but skills that also as a Member whose wife continues and to take on the challenges of teach- parents no longer have time to teach. to teach, I know firsthand the dedica- ing those children every day in our Na- Accordingly, I urge all of our col- tion and commitment teachers put tion’s classrooms. leagues to support this resolution hon- forth every single day despite the ever- And I agree that we all, as parents, oring American teachers. I thank our growing challenges that they face, must participate in what this resolu- colleagues, the gentlewoman from which are almost insurmountable. tion calls for, and that is all of us get- Texas (Ms. GRANGER) the gentleman As the gentleman from Georgia men- ting out there on a daily basis, not just from Pennsylvania (Mr. PITTS), and the tioned, we can all remember a teacher on a yearly basis, and having contact gentleman from Georgia (Mr. ISAKSON) or teachers. And, of course, I go back with the school and thanking the for sponsoring this legislation. to my first 4 years in a one-room teacher and participating in reading It is my hope that Congressional sup- school where Ms. Yost was the teacher. programs with our classrooms and en- port for teachers will serve as an exam- She had 40 students, 4 different grades gaging that school. ple to all Americans that the service represented. She had no special teach- I saw a figure last week that said that teachers render is irreplaceable. ers. She did it all. She stoked the about 30 percent of our parents have This week is the 14th Annual Teacher Ap- stove. She carried out the ashes. She contact with the school, yet every sin- preciation Week which was created by the Na- did everything. And she was a magnifi- gle one of us has contact with the grad- tional Parent Teacher Association (PTA). The cent teacher. uates of that school system. So we PTA is an organization that encourages parent It does not matter how many they need to engage our schools and do even and public involvement in all of the Nation's have in the classroom if they do not more than thank our teachers but par- public schools. By strengthening the tie behave a quality teacher in that class- ticipate in our children’s education. tween both parents and the nearly 3 million room. The first part of this resolution hon- American school teachers we can only further One of the problems that teachers are ors and recognizes the unique and im- ensure that American education continues to often faced with today is the fact that portant achievements of America’s be second to none. Teachers have an im- many times they do not receive the teachers. And certainly we recognize measurable impact on the growth and devel- kind of preparation and training that their integrity, we recognize their in- opment of students and are responsible, in they should from the teacher training telligence, we recognize their contribu- part, to the shaping of a future generation. Be- institutions. Sometimes they get as- tions every day to our children. cause of this, teachers are indispensable. signed subject areas that they have And more so, as I conclude, Mr. The face on the American family is vastly very little knowledge about that par- Speaker, on a note that more and more different from the way it was only decades H2580 CONGRESSIONAL RECORD — HOUSE May 4, 1999 ago. My wife is a former teacher and when parents to become more involved in our addressing the needs of experienced teachers she was in school the sole job of a teacher schools, we are making our jobs harder as well as new teachers. was to impart knowledge. However, today for our teachers. Mentoring programs help all teachersÐthey teachers fill the void that hard working parents Look at some of the schools that do benefit new teachers by easing the transition and single parents cannot. so well. It is not that the kids are into teaching, increasing retention rates and Mr. MARTINEZ. Mr. Speaker, I yield brighter. It is because their parents are improving the quality of teaching. Mentoring such time as she may consume to the so involved in those particular schools. also helps experienced teachers by exposing gentlewoman from New York (Mrs. They are giving the encouragement for them to new ideas and current trends in MCCARTHY). the teachers to go that extra yard. We teaching. Mrs. McCARTHY of New York. Mr. have to make all our schools like that. The key to improving the quality of edu- Speaker, I thank the gentleman for That is how we are going to turn cation is our teachers. Reducing class size is yielding me the time. around education in this country. not going to be effective unless you have a Mr. Speaker, today I rise in support Our children are bright, our teachers qualified teacher in that class. We must do ev- of the House resolution paying tribute are good, but we have to work together erything we can to make sure our teachers to our Nation’s teachers. to make sure that we are the best, bet- are well-trained before they enter the class- Since I have come to this House 21⁄2 ter than anywhere else in this country. room. And that they continue to improve their years ago, I spend so much time in my I think we are on the right track. skills once they are in the classroom. schools and have gotten to know my We still have some work to do, but I will be working hard to pass my mentoring teachers, gotten to know how much certainly the love of teaching, someone bill which will give teachers the tools they they care about our students and how that I had in sixth grade, Mrs. need to be the best possible educators they hard they are trying to make our stu- Englman, she taught me the love of can. Our children, and our teachers, are worth dents better prepared to go into the history. I think if she ever saw me here itÐand deserve it. world, that makes this a better coun- today, she would be so proud of me be- Mr. ISAKSON. Mr. Speaker, I yield 3 try. cause she talked about the Constitu- minutes to the gentleman from Cali- Education is our number one priority tion, she talked about our government, fornia (Mr. MCKEON), distinguished for this country, and it should be. But and here I am being very proud of being member of the Committee on Edu- we are seeing a teacher shortage and it a graduate of her class but also living cation and the Workforce. is making our teachers’ jobs harder. We what she taught me. Mr. MCKEON. Mr. Speaker, I rise in are seeing that we are bringing young Mr. Speaker, today I rise in support of the strong support of this important reso- people out of college to become teach- House Resolution paying tribute to our na- lution and in recognition of the hard ers; that they are failing mainly be- tion's teachers. This resolution expresses a work of our Nation’s teachers. cause they do not feel that they are sense of the House, thanking and paying trib- As a former member of the local well-prepared. I think that is some- ute to our nation's teachers. Education is my school board and President of that thing that we can work on, especially number one priority. Providing our children school district for 9 years, as a father in the special education that we are with a good education and a bright future is of six and grandfather of 16, I under- going to be doing in the next several one of our most effective tools for ending gun stand the crucial role that teachers months. violence, drug abuse, and poverty in our coun- play in the lives of our children and in Our teachers have to be well-prepared try. our communities. We have for too long so they can do a great job in our class- I spend every Monday and Friday in my taken their role for granted and have es, especially in early education. And I schools on Long Island, talking with students, come to expect our teachers to perform think that it is something that our teachers, principals, superintendents, and par- heroic acts of teaching despite ever-ris- teachers want, because they want to be ents about how we can make the education ing challenges. the best they can. system work better. I believe that as a Nation we must no We have to do everything in the In visiting these schools, I see teachers and longer take for granted the ability for world to prepare our young people to students who are committed to education. And teachers to somehow magically prepare become teachers so that we again will I have learned that our teachers are the cor- our students. We must join together at have the amount of teachers that we nerstone of our education system. Brand new the national, State and, most impor- are going to need. We are seeing too classrooms, reduced class size and improved tantly, at the local level in working to- many of our teachers drop out, and access to technology are empty promises gether to address these challenges fac- that is not good for any of us, mainly without a dedicated, well-qualified teacher in ing our teachers, our schools and our because they felt that they were not front of the class. students. prepared. Unfortunatley, we are facing a shortage of At the national level, we must ensure We dealt with it last year on the teachers. Our nation will need to hire 2 million that Federal education programs are Higher Education Act on having teach- new teachers in the next decade to handle a flexible enough to allow local schools ers better prepared, and I think it is growing student population and to replace re- to make decisions which meet their something that we can do on early edu- tiring teachers. However, fewer young people specific needs. At the same time, we cation. I plan on introducing a bill to are going into teaching, and when they do, must ensure that these funds are used have a mentoring program on early many do not receive the learning they need to effectively and that they are used for education, and I hope I will have the succeed in the classroom. Many children are activities that demonstrate increased support of my committee. warehoused in bigger classes, often with un- academic achievement for all students. When we talk about the teachers in prepared instructors, because there simply are I am pleased to say that as chair of the classroom today versus the teach- not enough teachers to go around. the Subcommittee on Postsecondary ers that certainly taught us years ago, Last year, Congress passed my teacher Education, Training and Life-Long it was an easier time back then. We training bill as part of the Higher Education Learning, I am working with Members had so much more cooperation between Act. My legislation will better prepare teachers to craft a bipartisan bill which will ad- the parents and the teachers, and we for teaching our children. I worked with local dress some of these important issues. I have to encourage that more and more. school administrators and educators to draft a am especially pleased to be working Our teachers are supposed to be bill that will (1) recruit new teachers; (2) pre- with the ranking member of the sub- there, to be teaching. They need the pare future teachers for the rigors of the class- committee, the gentleman from Cali- support of the parents, and I think that room; and (3) mentor new teachers in their fornia (Mr. MARTINEZ), who has deep is important. We are seeing our teach- first year on the job. insight into this important area. ers today taking in our young people Today, I am proud to introduce legislation I would like to take just a moment, and trying to be parents to them when that will expand Teacher Mentoring programs along with this resolution, to thank they can. That is not their job. in the Elementary and Secondary Education teachers who have had an impact on Act. This legislation will complement the men- me personally. I have four younger b 1615 toring programs I sponsored in the Higher brothers. We went to school in the Los Their job is there to teach our chil- Education Act, ensuring that mentoring be- Angeles unified school system. All five dren. But if we do not encourage our comes a continuous, comprehensive program, of us had Mrs. Peters for kindergarten. May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2581 I can think back to teachers at all In the light of the events that have Mr. Speaker, I rise today to praise levels, high school, junior high, ele- happened over the past couple of years, the guardians of America’s future, and mentary school, university, that have when teachers have been highlighted those are our teachers. The issue of had an impact on my life. I do not and spotlighted, unfortunately not for education generally and teachers spe- know that I ever took the time to good but for the tragedy of maybe cifically is as important as it is timely. thank them, I know I did not thank being injured, what comes to mind is I approach this issue from a simple them adequately, for the job that they certainly the heroic teacher in the philosophy. Education is a Federal con- have done. There is probably not a day Littleton, Colorado, tragedy, the sto- cern, a State responsibility and a local that goes by that I do not think of ries that came out from the young peo- function. Education is a team sport, some lesson that I learned from some ple who said he put their lives ahead of and it requires all of us to do our part. teacher. Probably outside of my par- his. As a Member of Congress, I believe ents, teachers have had more impact How many times we know that that one of the most important steps we can on my life than anyone else. occurs. And maybe not necessarily to take to support the schools of our Na- I go visit schools whenever I am that degree, where a teacher has lost tion is to encourage the teachers of our home in the district. I like to go in a his or her life, but we realize that schools. I have always believed that classroom, probably for a selfish rea- teachers who believe in what they do teachers are a very special breed. While son, because I always feel good when I most often put the needs of their stu- most people spend their lives building leave, after seeing an enthusiastic, mo- dents in front of their personal needs. careers, most teachers spend their ca- tivated teacher that is devoting and They extend their days, they take reers building lives. That is why it is so dedicating their life to helping our them on field trips, they guide and important that we take the time to young people to make this a better counsel them, they help them get into honor our teachers as indeed they world. college, they help them get scholar- should be honored. Our district at home, each year the ships, they help them get into summer Moreover, we need to be encouraging members of the community have a programs. So often the teachers who the very best and brightest to join the night where they honor teachers. I was have taught my children have come to teaching profession. We can all agree not able to be there this week, but I me and said, I think this program that teachers do not earn the kind of would like to thank them for taking would be good for your child or that money they should, but the rewards of the time to honor our teachers, be- program, something a parent is not teaching cannot be measured in dollars cause I do think that that is very im- aware of. and cents. Teachers see the fruits of portant. I tell teachers when I visit At the same time in the public school their labor in lives that have changed. that you can count the number of seeds setting, I know that teachers extend So today we want to express the in an apple, but you cannot count the themselves. They are also the hall sense of the United States Congress number of apples in a seed. One little monitors, the people who participate that our teachers are an essential part seed can grow into a giant apple tree on retreats or the ones who are the of America’s greatness. I know every that grows apples for many, many guiders of extracurricular activities, at one of us can point to a teacher in our the basketball games or football years and has great impact. That is past who helped to shape us, make us games. what our teachers mean to us. who we are. Though years ago we may And so, Mr. Speaker, I am delighted Mr. MARTINEZ. Mr. Speaker, I yield have left their classes, their classes to be able to stand today to pay special such time as she may consume to the have never left us. From the teachers tribute and applaud this resolution as gentlewoman from Texas (Ms. JACK- of the past we learned the traits we use an appropriate statement that this SON-LEE). today, how to type and how to cal- Congress should make and certainly Ms. JACKSON-LEE of Texas. Mr. culate but how to read and how to the United States should make, that Speaker, I thank the ranking member write and how to think. These are les- teachers are a vital part of our history, for his leadership and for yielding me sons that have served us all well, and a vital part of our society. this time. I know, for one, that I am a product we will all do well to thank those who What a special time to come on the of the teachers who educated and taught them to us. floor of the House to honor those helped educate me. I know that parents That is exactly what this resolution champions, those heroes who really are and home and church have a viable does. As we end this century, let us the basis of making our country great. part in a child’s education, but I can begin a renewed commitment. In the This is a salute to teachers, and it assure my colleagues that there are debate over the future of education, means all teachers in all capacities but many teachers who I took in con- there are a few things we can all agree particularly those who educate our fidence and who helped me along the on. Let us commit ourselves to having children. way, who made me feel better, and also schools that are safe and curriculum I come personally and as the parent that I had the ability to achieve albeit that is sound. Let us commit ourselves of two children recognizing the impor- through some rocky times. to having our children learn to read tance that teachers have in the lives of Can I just say to each and every one today so they can read to learn children. I also work and chair the of them who may be sitting at home or throughout their lives. And let us com- Congressional Children’s Caucus. Mem- in fact have another day’s work tomor- mit ourselves to having teachers who bers who have joined that Caucus have row, in preparing a lesson plan or deal- know the subject they are teaching and committed themselves to promoting ing with a student, that we do appre- the name of the child they are teaching children as a national agenda. Where ciate you, we salute and honor you. it to. would we be without that strong and You are American heroes. We hope that Mr. Speaker, too often in Washington abiding force of those who believe in this Congress will continue to stand be- we talk in terms of politics, but this education, particularly those who treat hind you as you educate and provide issue is different. Education is not a young children with the kind of respect and secure our children’s lives. matter of right versus left. It is a mat- and the kind of belief in themselves Mr. ISAKSON. Mr. Speaker, I am ter of right versus wrong. It is always that many of our teachers have and do pleased to yield 21⁄2 minutes to distin- the right time to do the right thing. with respect to our children? guished gentlewoman from Texas (Ms. Let us pass this teacher appreciation I spend a lot of time in my schools, in GRANGER), the original sponsor of this resolution. Let us begin to renew our particular our public schools, our ele- resolution. schools by recognizing our teachers. mentary, our middle school and our Ms. GRANGER. Mr. Speaker, as a After all, they literally hold our future secondary. I work a lot with our pri- former teacher myself and as the in their hands. vate schools. I know that each and daughter of two teachers it is my great Mr. MARTINEZ. Mr. Speaker, I yield every time I come upon a teacher it is privilege to cosponsor this important such time as she may consume to the someone who has expressed a love and resolution, and it is my great pleasure gentlewoman from Ohio (Mrs. JONES). affection for children, someone who to speak out on its behalf. Someone Mrs. JONES of Ohio. Mr. Speaker, I cares for children, someone who wants has said that teaching is not a lost art, rise in support of our Nation’s teach- to see children thriving and growing. but regard for it is a lost tradition. ers. H2582 CONGRESSIONAL RECORD — HOUSE May 4, 1999 I am a graduate of the Cleveland kids, sometimes in one-on-one cir- ing the foundation for good citizenship, Public School System of Cleveland, cumstances, other times in larger and they fill many roles as listeners, Ohio. I can remember all the wonderful classroom circumstances. These are in- explorers, role models, motivators and teachers that were my teachers. dividuals who are committed to their mentors. Long after our school days From kindergarten, I can remember task at hand. are only memories, teachers continue Ms. Chapman’s name, all the way up to I am sure it is just as true in every to influence us. teachers that I had in junior high and other State in the Nation as it is in the I know that at elementary school high school. In fact, several of my ele- State of Delaware. When you choose Miss Halcomb did exactly that. In mid- mentary teachers that taught me teaching, you choose a profession dle school Audrey Geoff did that for French were my French teachers in which is of profound importance to me. In high school math, E.R. high school. So every chance I have an every young person in this country and Broughton; in high school government, opportunity to talk about how great to our society as a whole. Lucille Parrish; in high school English, teachers are, I am glad to be able to b 1630 Eddie McNail. From my youth I recall say that. I need to put their names in a proverb that has stayed with me the RECORD, Ms. Gilliam and Ms. We have done, I think, remarkably throughout the years: Better than a DiPadova. I speak French as a result of well in the people that we have been thousand days of diligent study is one the great work of those wonderful able to attract to the teaching profes- day with a great teacher. women. sion and retain in the teaching profes- Today and all throughout the year As we pause today to celebrate teach- sion. They truly care about our chil- celebrate teaching. Take the time to ers across our country, I wish that dren. They truly make the effort to recognize the lasting contributions every child in these United States teach as well as they possibly can. that educators make to our community could have as memorable a moment in Like others here, I, too, have memo- and thank those special teachers who their lifetime as me with the teachers ries. Maybe I was not as good a student have truly made a difference in each of that I had in the public school system. as some of the others here because not our lives. I can even name some of my college all my memories are as good as I would Mr. ISAKSON. Mr. Speaker, I yield 2 and law school teachers that I remem- like them to be, but it is actually some minutes to the gentleman from Colo- ber very well. of those more difficult classes where rado (Mr. TANCREDO). Like the prior speaker, I would en- teachers are more demanding that I Mr. TANCREDO. Mr. Speaker, I was courage all of us to assure our children have the greatest memories now of impressed that my colleagues, the gen- that are in school today, be they black what they did for me and what they tleman from Texas (Mr. HINOJOSA) and or white, urban or suburban or rural, meant to all of us. the gentlewoman from Ohio (Mrs. that they have teachers who have the A quality education, it is the best JONES), could remember so many of opportunity to teach. gift we can possibly give our children, their teachers, and I was just sitting Many teachers in our school systems and the teachers are there every step of here thinking if I could remember any today have to be mother, they have to the way encouraging them, helping of my elementary and secondary teach- be father, they have to be uncle, grand- them, making sure they are on the ers, and I do remember the first names mother, grandfather, psychologist, dis- road to success. of all of them, but I cannot remember ciplinarian, nurse, doctor; and they I am sure that the teaching profes- much more. The first name was: Sister. should not have to be all of those sion may seem like a thankless job at I rise in support of the House Resolu- things. They should be able to teach in times. We have all heard that ex- tion, pay tribute to the hard work of an environment that is safe. They pressed, and we have to worry when we our Nation’s teachers. As a former pub- should be able to teach in a classroom see what happened in Littleton, Colo- lic school teacher, I take great pride in where there are 15 students or less. rado. That affects all teachers. But as my former colleagues and believe that They should be able to have all of the teachers, the teachers of this country teachers are a national treasure. Those accoutrements that go with teaching, really are shaping the future of the are teachers in public schools, private the books they need at the time they country. schools and, of course, parents who need them, the room should be clean. I am fond of saying to a whole room take on that huge responsibility of Mr. Speaker, as we rise in support of of elected officials and corporate heads home schooling, and who have provided teachers today, I just want to add my and everything else, that teachers are such wonderful models for their chil- kudos to all the teachers that I had. I the most important people in our dren and have done such a wonderful praise the teachers who teach today. State, and sometimes people come job in teaching their children. May God continue to bless them. back and, ‘‘What about my father? He’s But I would especially like to take Mr. ISAKSON. Mr. Speaker, I yield 2 a teacher.’’ But teachers are extraor- this moment to pay tribute to an edu- minutes to the gentleman from Dela- dinarily important, and we should cator who through his heroism 2 weeks ware (Mr. CASTLE), distinguished mem- thank them not only today but at all ago inspired us all. His name is David ber of the committee. times. Sanders, and he gave his life to save Mr. CASTLE. Mr. Speaker, I thank Mr. MARTINEZ. Mr. Speaker, I yield the lives of several students at Col- the gentleman for yielding me this the balance of the time to the gen- umbine High School, Littleton, Colo- time. tleman from Texas (Mr. HINOJOSA). rado, my district. Dave Sanders was a For years now we have been looking The SPEAKER pro tempore (Mr. business teacher and the coach of the to how to restore civility to the House. COBLE). The gentleman from Texas is girls’ basketball and softball teams at Now I know all we have to do is intro- recognized for 31⁄2 minutes. Columbine, but he was also a friend to duce a resolution supporting our teach- Mr. HINOJOSA. Mr. Speaker, today the hundreds of students at the school ers and we find the thing that all of us it is my honor to join in saluting who looked at him for guidance and agree upon. teachers in communities all across support. I in Delaware have had the privilege America as students, parents, school Two weeks ago, during the rampage of being in every single public school in administrators and the public celebrate at Columbine, David Sanders saved a my State—do not try that if you are in the teaching profession. Few other pro- number of students from ricocheting a big State—and almost all the private fessionals touch so many people in bullets and then went upstairs in the schools as well. When you spend 1 to 3 such a lasting way as teachers do. school to aid other students. While hours there, you obviously are going to Mr. Speaker, I think each and every leading two dozen students down a touch in a lot of classrooms and watch one of us can recall that one special hallway to safety, Mr. Speaker, he was a lot of teachers teaching. teacher who inspired us, who guided us shot twice in the chest, and 31⁄2 hours There may not be good teachers in and who helped make us the person we later David Sanders passed away, how- our classrooms in Delaware, I cannot are today, and I know I can. Teachers ever, not before asking nearby students say for sure there is, but I have not open children’s minds to the magic of to tell his family that he loved them. seen one. I have seen devoted men and ideas, knowledge and dreams. They Later Rick Bath, Columbine softball women who are trying to care for their keep American democracy alive by lay- coach, said about his friend: ‘‘There May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2583 were just so many good qualities about helped to shape their lives. I am thank- Constitution probably better than him, you always knew that he would ful for the teachers, so many good many Members of Congress. She stirs just be there for you. All he ever want- ones, that when I was not such a good her students to excellence. Excellent ed to do was teach since he was 21. He student did so much for me, particu- teachers like Miss Suvukas are all over would not have known what else to larly Mrs. Humphries in the 9th grade, this country using the resources that do.’’ when she handed me back one paper they have been given to the best of Mr. Speaker, today the community of with red marks all over it and I ex- their ability for the betterment of our Littleton, Colorado joins me in thank- pected to hear how bad it was, when students, and we need to get more re- ing David Sanders for the sacrifice that she said: sources directly to our teachers, dol- he made for his students and his fellow ‘‘Jim, you’re a good writer. You’ve lars into the classroom, and then we teachers during last Tuesday’s mas- got a lot of good ideas.’’ can truly honor their work. sacre and for making a difference in Mr. Speaker, I ignored the red marks, Mr. Speaker, that is one very clear the lives of children at Columbine and, and I took it to heart that I was a good way that we can say thanks to our pub- as a matter of fact, all over America. writer, and that is what I made as my lic school teachers across the country. Mr. MARTINEZ. Mr. Speaker, I yield profession, and I thank Mrs. Hum- After all, these are the people who are myself such time as I may consume. phries. influencing our children and teaching Mr. Speaker, I do not have any other Today is a good day to honor all of young minds the value of reading, writ- speakers, and I am ready to yield back teachers. We need to treat them as the ing and arithmetic. the balance of my time. I would just professionals that they are. We have Except for parents at home, no adult make a concluding statement in regard given them almost an impossible job to is closer to the learning process of our to the Columbine High School incident. do. We have given them so much of the kids. Teachers are the ones who have I read the other day in a paper where blame that they are not responsible the power to affect the learning and there were many instances of teachers’ for, and I am thankful today that we help them so that they can compete. heroism. There was one teacher who are giving them a little bit of the cred- Let us arm them with the tools they herded a group of children into a room, it that they so richly deserve. need. and then closed the door and set her GENERAL LEAVE So, as we honor our teachers this body in front of the door so that if any Mr. ISAKSON. Mr. Speaker, before week, let us continue the process shots came through, they would hit introducing our final speaker, I ask throughout the year. Our children and her, not the students. I do not think unanimous consent that all Members our children’s children are the most that we can ever make any commenda- have 5 legislative days in which to re- precious resources that we have, and tion high enough to reward someone vise and extend their remarks on House that is why we must recognize their in- with that kind of heroism. Resolution 157. valuable contributions of spending Mr. Speaker, I think that teachers The SPEAKER pro tempore. Is there their entire days with them, shaping across this country by and large are objection to the request of the gen- their lives. the same kind of quality as teachers tleman from Georgia? To our teachers: I thank them. Their who are dedicated to their children. As There was no objection. work is greatly needed, appreciated many people have said today in hon- Mr. ISAKSON. Mr. Speaker, I yield 2 and admired. oring the teachers they can remember, minutes to the distinguished gen- Mr. PACKARD. Mr. Speaker, I would like to I, like the gentleman from Colorado tleman from Pennsylvania (Mr. PITTS). extend my sincere gratitude to our nation's (Mr. TANCREDO) cannot remember a lot Mr. PITTS. Mr. Speaker, this week teachers. Their dedicated service should be of last names, but I can remember a lot we honor those who assist parents and acknowledged every day, not just during Na- of first names, and I realize that my take our children to the next levels of tional Teacher Appreciation Week. success in life was attributable to what learning, America’s teachers. Teachers As a father, grandfather and former school they taught me. have motivated our children. Teachers board member, I have a great deal of personal So again, I honor the teachers of the have helped our children to mature. respect for those who educate our youth. I be- United States of America. Here is a teacher through the eyes of lieve these individuals know our children better Mr. Speaker, I yield back the balance a second grader, Kacie Hershey in my than some Washington bureaucrat. We should of my time. district, and I quote: strive to give them programs that return edu- Mr. ISAKSON. Mr. Speaker, I yield 2 I like Mr. Durante because he is cational decisions to those most qualified to minutes to the distinguished gen- funny and because he teaches us math. make them, the parents, teachers, and local tleman from South Carolina (Mr. Now he is teaching us about Japan and school boards. DEMINT). how to count to 10 in Japanese. Currently, only 65 percent of federal edu- Mr. DEMINT. Mr. Speaker, I rise in When teachers like Mr. Durante cation funds actually make it to classrooms. strong support today of this resolution make learning fun for their students, Too many needed funds are spent on unnec- honoring the nearly 3 million teachers whole new worlds are opened. essary and inefficient bureaucracies, rather across America that work every day to Mr. Speaker, I do not think it can be than on local schools. We must make a com- secure the future of our children. said any better than the way it is stat- mitment to send more education dollars to Yesterday I had the opportunity to ed in this resolution, and I quote again: schools, libraries, teachers, and students. Our visit two of Mrs. Becham’s classes at Many people spend their lives build- children are this nation's most precious re- East Side High School in Greenville, ing careers. Our teachers spend their source. The future of a child's education is es- South Carolina. These were two hour- careers building lives. sential to the future of our nation. and-a-half-long government classes, What could be more true? America’s Mr. Speaker, again I would like to extend and these students wore me out with teachers rise every day out of their my gratitude to those who make teaching our questions, and it reminded me of the commitment to mold and shape young children more than simply a daily job. I will incredible energy it takes every day, lives. As a former public school math continue to support those whom we entrust day in and day out, for these teachers and science teacher myself, I can attest with our children's future. to open the minds and to fill these to the amount of time, and energy, and Mr. RODRIGUEZ. Mr. Speaker, I rise today minds with the knowledge that will creativity and patience that it takes to to pay tribute to our nation's teachers. It is help these students be successful in lead our students to the next step of with great appreciation that I recognize teach- life. I thank Mrs. Becham, and I thank discovery, be it in literature, math, ers across America who are shaping a bright- her that she wanted her students not music theory or physics. er future for our children. only to hear about Congress, but she Earlier today I honored Elaine Today teachers face many challenges in the persisted until she got the Congress- Suvukas of Hempfield High School for classroom, challenges that often force them to man right there in her room. leading an excellent group of students give more of their time and energy on matters I am thankful myself for teachers be- in the ‘‘We the People, the Citizen, the other than teaching. Increased classroom cause my wife and I have four children Constitution’’ academic competition sizes, crumbling infrastructure, and new social from junior high through college. I am on the Constitution and the Bill of challenges in the lives of children require our thankful for all the teachers that Rights. Her students know America’s teachers to wear many different hats. They H2584 CONGRESSIONAL RECORD — HOUSE May 4, 1999 play a vital role in not only setting a solid aca- Through experience, skill and dedication, The question was taken. demic foundation for all students, but also teachers like Sam are creating an environment Mr. ISAKSON. Mr. Speaker, on that I teaching our students basic life skills to suc- in which every child in his or her class feels demand the yeas and nays. ceed in the future. To say the least they are important and challenged. The yeas and nays were ordered. extraordinarily influential in shaping the lives of The students of today will soon take active The SPEAKER pro tempore. Pursu- our students. roles in business, education, government, and ant to clause 8 of rule XX and the I would like to thank teachers everywhere other important positions in society. Today's Chair’s prior announcement, further for their time and commitment. As a former teachers, in coordination with parents and proceedings on this motion will be school board member and the husband of an families, are doing a wonderful job of equip- postponed. elementary school teacher I know that teach- ping those students for the tasks they will face f ers do not stop working when the school bell after graduation. rings. A teacher's job never stops. Each day I want to take this opportunity to not only ANNOUNCEMENT BY THE SPEAKER brings new challenges and new opportunities. recognize teachers like Sam, but to thank all PRO TEMPORE of them for their contributions to future genera- Many evenings are spent reviewing papers The SPEAKER pro tempore. Debate tions. and preparing for the next day's class, and has concluded on the first three mo- teachers often devote their time to extra- Mr. SCHAFFER. Mr. Speaker, today Ameri- cans celebrate National Teacher Day, a day tions to suspend the rules. curricular activities on evenings and week- Pursuant to clause 8 of rule XX, the ends. They have one of the most important set aside to honor dedicated individuals. I would like to take a moment to recognize edu- Chair will now put the question on jobs in the country and should be praised for each motion to suspend the rules on their diligence in the classroom. cators of excellence across the Fourth Con- gressional District for their contribution to our which further proceedings were post- As we mark National Teachers Day this poned earlier today in the order in week, we cannot fail to mention one teacher state. Teachers are a diverse group. Some teach which those motions were entertained. in Littleton, Colorado, William Sanders, who children, some adults. Some give instruction in Votes will be taken in the following gave his life defending and protecting his stu- vocations, others liberal arts. Some educate order: dents. Teachers across the nation share his children with special needs. Others teach H. Con. Res. 84, as amended, by the love of students and devotion to their well- English to students from other countries. yeas and nays; being. Unfortunately, he paid the ultimate price Some coach basketball. Some are parents H. Con. Res. 88, by the yeas and nays; and we should honor and remember his sac- schooling their own children. Although different and rifice. in many ways, good teachers have this in House Resolution 157, by the yeas and We must provide our teachers with the common: They are individuals devoted to ex- nays. means to do their job well. If they don't, our cellence, possessing talent, patience, fortitude, The Chair will reduce to 5 minutes children lose. Without an education, our chil- and a personal love of learning. the time for the third electronic vote dren will not be prepared to compete in the Mr. Speaker, as you know, excellence in in this series. global economy, they will not be empowered education has been the focus of my efforts f to escape poverty, they will not have the tools since my days in the Colorado State Senate. to succeed. But worst of all, they will never As the son of two retired school teachers and URGING CONGRESS AND THE know the joy of challenging and expanding the father of three children who attend public PRESIDENT TO FULLY FUND IN- their minds. It is most appropriate to honor our schools (and one on her way), no issue is DIVIDUALS WITH DISABILITIES teachers who daily engage our children in the closer to my heart and home. Exceptional EDUCATION ACT art of learning. school teachers deserve our admiration, not Mr. RYAN of Wisconsin. Mr. Speaker, I rise The SPEAKER pro tempore. The only for their hard work but for the shear pending business is the question of sus- today in support of the resolution, and to ex- weight of their accomplishmentsÐthe cultiva- press my profound appreciation for the teach- pending the rules and agreeing to the tion of an educated citizenry. These inspira- concurrent resolution, H. Con. Res. 84, ers that played such an important role in my tional individuals give me a glimpse into what life. as amended. the future can hold if we let it. If we continue The Clerk read the title of the con- From my days as a student at Roosevelt, to improve our system by recognizing and St. Mary's, Marshall and finally graduation current resolution. building on the achievements of great edu- The SPEAKER pro tempore. The from Craig Sr. High, my teachers had a posi- cators, the sky is the limit for American edu- tive impact on my early learning habits as well question is on the motion offered by cation. the gentleman from Pennsylvania (Mr. as my future successes. Empowering good teachers is essential to GOODLING) that the House suspend the I'd like to single out for recognition, how- education reform. We can do this by ensuring ever, one teacher in particular, Mr. Sam rules and agree to the concurrent reso- more education funds reach the classroom, for lution, H. Con. Res. 84, as amended, on Loizzo. Sam was my high school United example, by passing the Dollars to the Class- which the yeas and nays are ordered. States Government teacher. What distin- room Act. This act would require 95 percent of The vote was taken by electronic de- guishes Sam is his ability to involve students federal education money be spent in class- vice, and there were—yeas 413, nays 2, in all aspects of learning activities. Students rooms. Currently, as little as 39 cents of every answered ‘‘present’’ 1, not voting 17, as become active participants in the educational dollar reaches the classroom. This Act would follows: process, not casual observers, and they're increase education spending in Colorado by trained to apply the lessons learned in his as much as $11 million simply through effi- [Roll No. 105] classroom. Sam's students don't simply learn ciency savings in Washington. More impor- YEAS—413 about our government, but they gain an appre- tantly, this money would go to support teach- Abercrombie Bentsen Brady (TX) ciation for the structure and framework by ers, not bureaucrats, and special interests. Ackerman Bereuter Brown (FL) which this great country was founded. Aderholt Berkley Brown (OH) After all, studies have shown the single Allen Berry Bryant Sam taught the value of civic responsibility. most important factor in a quality education is Andrews Biggert Burr He encouraged me to research the role of the a good teacher. Caring and talented teachers Archer Bilbray Burton founding fathers and the Constitution. In fact, are of immeasurable worth to our society. Armey Bilirakis Buyer Bachus Bishop Callahan Sam was here on Capitol Hill with students They are the pride of our community and es- Baird Blagojevich Calvert from Craig Sr. High just last week impressing sential to our quality of life. In the words of Baker Bliley Camp upon them the very same values he had Historian Henry Brooks Adams, `À teacher af- Baldacci Blumenauer Campbell shared with me. Baldwin Blunt Canady fects eternity; he can never tell where his influ- Ballenger Boehlert Cannon For over 20 years, Sam has been building ence stops.'' Let us honor them today. Barcia Boehner Capps friendships with his students, one on one rela- The SPEAKER pro tempore. All time Barr Bonilla Capuano tionships like ours that exist still today. He is has expired. Barrett (NE) Bonior Cardin The question is on the motion offered Barrett (WI) Bono Castle a role model and a friend. Bartlett Borski Chabot Sam has a remarkable influence upon the by the gentleman from Georgia (Mr. Barton Boswell Chambliss lives of all the students that have an oppor- ISAKSON) that the House suspend the Bass Boucher Chenoweth tunity to sit in his class. Sam is indeed a credit rules and agree to the resolution, Bateman Boyd Clay to his profession. House Resolution 157. Becerra Brady (PA) Clayton May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2585 Clement Hilleary Mollohan Stenholm Thune Waxman Ballenger Evans Lazio Clyburn Hilliard Moore Strickland Thurman Weiner Barcia Everett Leach Coble Hinchey Moran (KS) Stump Tierney Weldon (FL) Barr Ewing Lee Coburn Hinojosa Moran (VA) Stupak Toomey Weldon (PA) Barrett (NE) Farr Levin Collins Hobson Morella Sununu Towns Weller Barrett (WI) Filner Lewis (CA) Combest Hoeffel Murtha Sweeney Traficant Wexler Bartlett Fletcher Lewis (GA) Condit Hoekstra Myrick Talent Turner Weygand Barton Foley Lewis (KY) Conyers Holden Nadler Tancredo Udall (CO) Whitfield Bass Forbes Linder Cook Holt Napolitano Tanner Udall (NM) Wicker Bateman Ford Lipinski Cooksey Hooley Neal Tauscher Upton Wilson Bentsen Fossella LoBiondo Costello Horn Nethercutt Tauzin Velazquez Wise Bereuter Fowler Lofgren Cox Hostettler Ney Taylor (MS) Vento Wolf Berkley Frank (MA) Lowey Coyne Hoyer Northup Taylor (NC) Visclosky Woolsey Berry Franks (NJ) Lucas (KY) Cramer Hulshof Norwood Terry Walden Wu Biggert Frelinghuysen Luther Crane Hunter Nussle Thomas Walsh Young (AK) Bilbray Frost Maloney (CT) Crowley Hutchinson Oberstar Thompson (CA) Wamp Young (FL) Bilirakis Gallegly Maloney (NY) Cubin Hyde Olver Thompson (MS) Waters Bishop Ganske Manzullo Cummings Inslee Ortiz Thornberry Watt (NC) Blagojevich Gejdenson Markey Bliley Gekas Mascara Cunningham Isakson Ose NAYS—2 Danner Jackson (IL) Oxley Blumenauer Gephardt Matsui Davis (FL) Jackson-Lee Packard Obey Paul Blunt Gibbons McCarthy (MO) Davis (IL) (TX) Pallone Boehlert Gilchrest McCarthy (NY) ANSWERED ‘‘PRESENT’’—1 Davis (VA) Jefferson Pascrell Boehner Gillmor McCollum Deal Jenkins Pastor Owens Bonilla Gilman McDermott DeFazio John Payne Bonior Gonzalez McGovern DeGette Johnson, E. B. Pease NOT VOTING—17 Bono Goode McHugh Delahunt Johnson, Sam Pelosi Berman Johnson (CT) Slaughter Borski Goodlatte McInnis DeLauro Jones (NC) Peterson (MN) Brown (CA) Largent Tiahrt Boswell Goodling McIntosh DeLay Jones (OH) Peterson (PA) Carson Lucas (OK) Watkins Boucher Gordon McIntyre DeMint Kanjorski Petri Dingell McCrery Watts (OK) Boyd Goss McKeon Deutsch Kaptur Phelps Houghton Shuster Wynn Brady (PA) Graham McKinney Brady (TX) Granger McNulty Diaz-Balart Kasich Pickering Istook Simpson Brown (FL) Green (TX) Meehan Dickey Kelly Pickett Brown (OH) Green (WI) Meek (FL) Dicks Kennedy Pitts b 1703 Bryant Greenwood Meeks (NY) Dixon Kildee Pombo Burr Gutierrez Menendez Doggett Kilpatrick Pomeroy Mr. CLAY changed his vote from Burton Gutknecht Metcalf Dooley Kind (WI) Porter ‘‘nay’’ to ‘‘yea.’’ Buyer Hall (OH) Mica Doolittle King (NY) Portman Mr. OWENS changed his vote from Callahan Hall (TX) Millender- Doyle Kingston Price (NC) Calvert Hansen McDonald Dreier Kleczka Pryce (OH) ‘‘yea’’ to ‘‘present.’’ Camp Hastings (FL) Miller (FL) Duncan Klink Quinn So (two-thirds having voted in favor Campbell Hastings (WA) Miller, Gary Knollenberg Dunn Radanovich thereof) the rules were suspended and Canady Hayes Miller, George Edwards Kolbe Rahall the concurrent resolution, as amended, Cannon Hayworth Minge Ehlers Kucinich Ramstad was agreed to. Capps Hefley Mink Ehrlich Kuykendall Rangel Capuano Herger Moakley Emerson LaFalce Regula The result of the vote was announced Cardin Hill (IN) Mollohan Engel LaHood Reyes as above recorded. Castle Hill (MT) Moore English Lampson Reynolds Chabot Hilleary Moran (KS) Eshoo Lantos Riley A motion to reconsider was laid on the table. Chambliss Hinchey Moran (VA) Etheridge Larson Rivers Chenoweth Hinojosa Morella Evans Latham Rodriguez f Clement Hobson Murtha Everett LaTourette Roemer Coble Hoeffel Myrick Ewing Lazio Rogan Coburn Hoekstra Napolitano Farr Leach Rogers URGING CONGRESS AND THE Collins Holden Neal Fattah Lee Rohrabacher PRESIDENT TO INCREASE FUND- Combest Holt Nethercutt Filner Levin Ros-Lehtinen ING FOR PELL GRANTS Condit Hooley Ney Fletcher Lewis (CA) Rothman Cook Horn Northup Foley Lewis (GA) Roukema The SPEAKER pro tempore (Mr. Cooksey Hostettler Norwood Forbes Lewis (KY) Roybal-Allard COBLE). The pending business is the Costello Hoyer Nussle Ford Linder Royce Cox Hulshof Oberstar Fossella Lipinski Rush question of suspending the rules and Coyne Hunter Olver Fowler LoBiondo Ryan (WI) agreeing to the concurrent resolution, Cramer Hutchinson Ortiz Frank (MA) Lofgren Ryun (KS) H. Con. Res. 88. Crane Hyde Ose Franks (NJ) Lowey Sabo The Clerk read the title of the con- Crowley Inslee Oxley Frelinghuysen Lucas (KY) Salmon Cubin Isakson Packard Frost Luther Sanchez current resolution. Cummings Jackson (IL) Pallone Gallegly Maloney (CT) Sanders The SPEAKER pro tempore. The Cunningham Jackson-Lee Pascrell Ganske Maloney (NY) Sandlin question is on the motion offered by Danner (TX) Pastor Gejdenson Manzullo Sanford Davis (FL) Jefferson Pease Gekas Markey Sawyer the gentleman from California (Mr. Davis (IL) Jenkins Pelosi Gephardt Martinez Saxton MCKEON) that the House suspend the Davis (VA) John Peterson (MN) Gibbons Mascara Scarborough rules and agree to the concurrent reso- Deal Johnson, E.B. Peterson (PA) Gilchrest Matsui Schaffer lution, H. Con. Res. 88, on which the DeFazio Johnson, Sam Petri Gillmor McCarthy (MO) Schakowsky DeGette Jones (NC) Phelps Gilman McCarthy (NY) Scott yeas and nays are ordered. Delahunt Jones (OH) Pickering Gonzalez McCollum Sensenbrenner The SPEAKER pro tempore. Pursu- DeLauro Kanjorski Pickett Goode McDermott Serrano ant to clause 8 of rule XX, the Chair DeLay Kaptur Pitts Goodlatte McGovern Sessions DeMint Kasich Pombo Goodling McHugh Shadegg announces that he will reduce to a Deutsch Kelly Pomeroy Gordon McInnis Shaw minimum of 5 minutes the period of Diaz-Balart Kennedy Porter Goss McIntosh Shays time within which a vote by electronic Dickey Kildee Portman Graham McIntyre Sherman device may be taken on the next mo- Dicks Kilpatrick Price (NC) Granger McKeon Sherwood Dixon Kind (WI) Pryce (OH) Green (TX) McKinney Shimkus tion to suspend the rules on which the Doggett King (NY) Quinn Green (WI) McNulty Shows Chair has postponed further pro- Dooley Kingston Radanovich Greenwood Meehan Sisisky ceedings. Doolittle Kleczka Rahall Gutierrez Meek (FL) Skeen Doyle Klink Ramstad Gutknecht Meeks (NY) Skelton The vote was taken by electronic de- Dreier Knollenberg Rangel Hall (OH) Menendez Smith (MI) vice, and there were—yeas 397, nays 13, Duncan Kolbe Regula Hall (TX) Metcalf Smith (NJ) answered ‘‘present’’ 4, not voting 19, as Dunn Kucinich Reyes Hansen Mica Smith (TX) follows: Edwards Kuykendall Reynolds Hastings (FL) Millender- Smith (WA) Ehlers LaFalce Riley Hastings (WA) McDonald Snyder [Roll No. 106] Ehrlich LaHood Rivers Hayes Miller (FL) Souder YEAS—397 Emerson Lampson Rodriguez Hayworth Miller, Gary Spence Engel Lantos Roemer Hefley Miller, George Spratt Abercrombie Andrews Baird English Larson Rogan Herger Minge Stabenow Ackerman Archer Baker Eshoo Latham Rogers Hill (IN) Mink Stark Aderholt Armey Baldacci Etheridge LaTourette Rohrabacher Hill (MT) Moakley Stearns Allen Bachus Baldwin H2586 CONGRESSIONAL RECORD — HOUSE May 4, 1999 Ros-Lehtinen Smith (MI) Tierney Baker Ehrlich LaHood Regula Sherman Thune Rothman Smith (NJ) Toomey Baldacci Emerson Lampson Reyes Sherwood Thurman Roybal-Allard Smith (TX) Traficant Baldwin Engel Lantos Reynolds Shimkus Tierney Royce Smith (WA) Turner Ballenger English Larson Riley Shows Toomey Rush Snyder Udall (CO) Barcia Eshoo Latham Rivers Sisisky Towns Ryan (WI) Souder Udall (NM) Barr Etheridge LaTourette Rodriguez Skeen Traficant Ryun (KS) Spence Upton Barrett (NE) Evans Lazio Roemer Skelton Turner Sabo Spratt Velazquez Barrett (WI) Everett Leach Rogan Smith (MI) Udall (CO) Salmon Stabenow Vento Bartlett Ewing Lee Rogers Smith (NJ) Udall (NM) Sanchez Stark Visclosky Barton Farr Levin Rohrabacher Smith (TX) Upton Sanders Stearns Walden Bass Filner Lewis (CA) Ros-Lehtinen Smith (WA) Velazquez Sandlin Stenholm Walsh Bateman Fletcher Lewis (GA) Rothman Souder Vento Sawyer Strickland Wamp Becerra Foley Lewis (KY) Roukema Spence Visclosky Saxton Stump Watt (NC) Bentsen Forbes Linder Roybal-Allard Spratt Walden Scarborough Stupak Waxman Bereuter Ford Lipinski Royce Stabenow Walsh Schaffer Sununu Weiner Berkley Fossella LoBiondo Rush Stark Wamp Schakowsky Sweeney Weldon (FL) Berry Fowler Lofgren Ryan (WI) Stearns Waters Sensenbrenner Talent Weldon (PA) Biggert Frank (MA) Lowey Ryun (KS) Stenholm Watt (NC) Serrano Tancredo Weller Bilbray Franks (NJ) Lucas (KY) Sabo Strickland Waxman Sessions Tanner Wexler Bilirakis Frelinghuysen Luther Sanchez Stump Weiner Shadegg Tauscher Weygand Bishop Frost Maloney (CT) Sanders Stupak Weldon (FL) Shaw Tauzin Whitfield Blagojevich Gallegly Maloney (NY) Sandlin Sununu Weldon (PA) Shays Taylor (MS) Wicker Bliley Ganske Manzullo Sanford Sweeney Weller Sherman Taylor (NC) Wilson Blumenauer Gejdenson Markey Sawyer Talent Wexler Sherwood Terry Wise Blunt Gekas Martinez Saxton Tancredo Weygand Shimkus Thomas Wolf Boehlert Gephardt Mascara Scarborough Tanner Whitfield Shows Thompson (CA) Woolsey Boehner Gibbons Matsui Schaffer Tauscher Wicker Sisisky Thornberry Wu Bonilla Gilchrest McCarthy (MO) Schakowsky Tauzin Wilson Skeen Thune Young (AK) Bonior Gillmor McCarthy (NY) Scott Taylor (MS) Wise Skelton Thurman Young (FL) Bono Gilman McCollum Sensenbrenner Taylor (NC) Wolf Borski Gonzalez McDermott Serrano Terry Woolsey NAYS—13 Sessions Thomas Wu Boswell Goode McGovern Shadegg Thompson (CA) Young (AK) Clay Obey Thompson (MS) Boucher Goodlatte McHugh Shaw Thompson (MS) Young (FL) Clyburn Paul Towns Boyd Goodling McInnis Shays Thornberry Conyers Payne Waters Brady (PA) Gordon McIntosh Hilliard Sanford Brady (TX) Goss McIntyre NAYS—1 Nadler Scott Brown (FL) Graham McKeon Salmon ANSWERED ‘‘PRESENT’’—4 Brown (OH) Granger McKinney Bryant Green (TX) McNulty NOT VOTING—24 Becerra Martinez Burr Green (WI) Meehan Clayton Owens Burton Greenwood Meek (FL) Berman Istook Shuster Brown (CA) Jenkins Simpson NOT VOTING—19 Buyer Gutierrez Meeks (NY) Callahan Gutknecht Menendez Carson Johnson (CT) Slaughter Cox Largent Snyder Berman Johnson (CT) Slaughter Calvert Hall (OH) Metcalf Diaz-Balart Lucas (OK) Tiahrt Brown (CA) Largent Tiahrt Camp Hall (TX) Millender- Dingell McCrery Watkins Carson Lucas (OK) Watkins Campbell Hansen McDonald Fattah Mica Watts (OK) Dingell McCrery Watts (OK) Canady Hastings (FL) Miller (FL) Houghton Myrick Wynn Fattah Roukema Wynn Cannon Hastings (WA) Miller, Gary Houghton Shuster Capps Hayes Miller, George b 1730 Istook Simpson Capuano Hayworth Minge f Cardin Hefley Mink So (two-thirds having voted in favor Castle Herger Moakley thereof) the rules were suspended and b 1720 Chabot Hill (IN) Mollohan the resolution was agreed to. Chambliss Hill (MT) Moore So (two-thirds having voted in favor Chenoweth Hilleary Moran (KS) The result of the vote was announced thereof) the rules were suspended and Clay Hilliard Moran (VA) as above recorded. Clayton Hinchey Morella the concurrent resolution was agreed A motion to reconsider was laid on Clement Hinojosa Murtha the table. to. Clyburn Hobson Nadler Stated for: The result of the vote was announced Coble Hoeffel Napolitano Coburn Hoekstra Neal Mr. JENKINS. Mr. Speaker, on rollcall No. as above recorded. Collins Holden Nethercutt A motion to reconsider was laid on 107, I was unavoidably detained. Had I been Combest Holt Ney present, I would have voted ``yea.'' the table. Condit Hooley Northup Conyers Horn Norwood Mr. SALMON. Mr. Speaker, I'm recorded as f Cook Hostettler Nussle having voted ``nay'' on House rollcall vote No. Cooksey Hoyer Oberstar 107. I intended to vote ``yea.'' EXPRESSING THE SENSE OF THE Costello Hulshof Obey HOUSE IN SUPPORT OF AMER- Coyne Hunter Olver f ICA’S TEACHERS Cramer Hutchinson Ortiz Crane Hyde Ose PERSONAL EXPLANATION The SPEAKER pro tempore. The Crowley Inslee Owens Ms. SLAUGHTER. Mr. Speaker, I was un- pending business is the question of sus- Cubin Isakson Oxley Cummings Jackson (IL) Packard able to be present for rollcall votes 105, 106, pending the rules and agreeing to the Cunningham Jackson-Lee Pallone and 107. Had I been present, I would have resolution, House Resolution 157. Danner (TX) Pascrell voted ``yes'' or `àye'' on rollcall votes 105, The Clerk read the title of the resolu- Davis (FL) Jefferson Pastor 106, and 107. Davis (IL) John Paul tion. Davis (VA) Johnson, E. B. Payne f The SPEAKER pro tempore. The Deal Johnson, Sam Pease question is on the motion offered by DeFazio Jones (NC) Pelosi REPORT ON H.R. 1664, EMERGENCY the gentleman from Georgia (Mr. DeGette Jones (OH) Peterson (MN) SUPPLEMENTAL APPROPRIA- Delahunt Kanjorski Peterson (PA) TIONS RELATING TO THE CON- ISAKSON) that the House suspend the DeLauro Kaptur Petri FLICT IN KOSOVO rules and agree to the resolution, H. DeLay Kasich Phelps Res. 157, on which the yeas and nays DeMint Kelly Pickering Mr. YOUNG of Florida, from the Deutsch Kennedy Pickett Committee on Appropriations, sub- are ordered. Dickey Kildee Pitts This will be a 5-minute vote. Dicks Kilpatrick Pombo mitted a privileged report (Rept. No. The vote was taken by electronic de- Dixon Kind (WI) Pomeroy 106–125) on the bill (H.R. 1664) making vice, and there were—yeas 408, nays 1, Doggett King (NY) Porter emergency supplemental appropria- Dooley Kingston Portman not voting 24, as follows: Doolittle Kleczka Price (NC) tions for military operations, refugee [Roll No. 107] Doyle Klink Pryce (OH) relief, and humanitarian assistance re- Dreier Knollenberg Quinn YEAS—408 lating to the conflict in Kosovo, and Duncan Kolbe Radanovich for military operations in Southwest Abercrombie Allen Armey Dunn Kucinich Rahall Ackerman Andrews Bachus Edwards Kuykendall Ramstad Asia for the fiscal year ending Sep- Aderholt Archer Baird Ehlers LaFalce Rangel tember 30, 1999, and for other purposes, May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2587 which was referred to the Union Cal- The Chair recognizes the gentleman He has worked closely with the gen- endar and ordered to be printed. from Texas (Mr. BARTON). tleman from New Jersey (Mr. FRANK The SPEAKER pro tempore (Mr. GENERAL LEAVE PALLONE), who is an active member of COBLE). Pursuant to clause 1 of rule Mr. BARTON of Texas. Mr. Speaker, our subcommittee, as well as the origi- XXI all points of order against provi- I ask unanimous consent that all Mem- nal cosponsor of this legislation. These sions of the bill are reserved. bers may have 5 legislative days within two men together have done such an f which to revise and extend their re- excellent job of building bipartisan marks and to insert extraneous mate- support that, as the gentleman from REMOVAL OF NAME OF MEMBER rial on the bill, H.R. 459. Texas (Mr. BARTON) has pointed out, it AS COSPONSOR OF H.R. 1598 The SPEAKER pro tempore. Is there was reported out unanimously by both Mrs. EMERSON. Mr. Speaker, I ask objection to the request of the gen- the Subcommittee on Energy and unanimous consent to withdraw my tleman from Texas? Power and the full Committee on Com- name as a cosponsor of H.R. 1598. There was no objection. merce. The SPEAKER pro tempore. Is there Mr. BARTON of Texas. Mr. Speaker, I know of no objection to this objection to the request of the gentle- I yield myself 5 minutes. project; and I am, therefore, pleased to woman from Missouri? (Mr. BARTON of Texas asked and add our support to the legislation that There was no objection. was given permission to revise and ex- would authorize FERC to extend the li- tend his remarks.) f cense for the Mt. Hope hydroelectric Mr. BARTON of Texas. Mr. Speaker, project for an additional 2 years. REMOVAL OF NAME OF MEMBER H.R. 459 extends the construction pe- Mr. Speaker, I have no further re- AS COSPONSOR OF H.R. 732 riod for a hydroelectric project in the quests for time; and I yield back the State of New Jersey. Under section 13 Ms. BROWN of Florida. Mr. Speaker, balance of my time. of the Federal Power Act, project con- I ask unanimous consent to have my Mr. BARTON of Texas. Mr. Speaker, struction must begin within 4 years of name removed as a cosponsor of H.R. I yield such time as he may consume to issuance of the license. If construction 732. the gentleman from New Jersey (Mr. is not begun by that time, the Federal The SPEAKER pro tempore. Is there FRELINGHUYSEN), one of the original co- Energy Regulatory Commission cannot objection to the request of the gentle- sponsors whose district the project is extend the deadline and must termi- woman from Florida? located in. nate the license. There was no objection. (Mr. FRELINGHUYSEN asked and H.R. 459 grants the project developer f was given permission to revise and ex- until August 3, 2002, to commence contend his remarks.) ANNOUNCEMENT BY THE SPEAKER struction if it pursues the commence- Mr. FRELINGHUYSEN. Mr. Speaker, PRO TEMPORE ment of construction in good faith and I thank the gentleman for yielding me with due diligence. this time; and I rise in strong support Pursuant to clause 8 of rule XX, the These types of bills have not been of H.R. 459, legislation I introduced Chair announces that he will postpone controversial in the past. The bill does earlier this year to extend the FERC li- further proceedings today on the re- not change the license requirement in cense for the Mt. Hope hydroelectric maining motions to suspend the rules any way. It does not change environ- project by a period of 3 years. on which a recorded vote or the yeas mental standards but merely extends First, let me thank the gentleman and nays are ordered, or on which the the construction deadline. from Texas (Mr. BARTON), the chairman vote is objected to under clause 6 of There is a need to act, Mr. Speaker, of the Subcommittee on Energy and rule XX. since the construction deadline for the Power, and the gentleman from Vir- Such rollcall votes, if postponed, will Mt. Hope Pumped Storage Project ex- ginia (Mr. BLILEY), chairman of the full be taken tomorrow. pires in August of this year. If Con- Committee on Commerce, as well as f gress does not act, the Federal Energy the ranking member of the sub- Regulatory Commission will terminate committee, the gentleman from Texas EXTENDING DEADLINE UNDER the license, the project sponsor will (Mr. HALL), and my colleague, the gen- FEDERAL POWER ACT FOR MT. lose $28 million that they have already tleman from New Jersey (Mr. FRANK HOPE WATERPOWER PROJECT invested in the project, and the local PALLONE), for moving so expeditiously Mr. BARTON of Texas. Mr. Speaker, community will lose the prospect of on this bill. I move to suspend the rules and pass significant job creation and added reve- the bill (H.R. 459) to extend the dead- nues. Construction of the Mt. Hope Mt. Hope received its original FERC line under the Federal Power Act for project will create 1,300 jobs during license in August of 1992. The license FERC Project No. 9401, the Mt. Hope construction and generate $254 million has been extended for 2 years by FERC Waterpower Project. for the local economy. If the Congress and once by Congress in 1995. H.R. 459 The Clerk read as follows: does not act, the local community will would simply ensure that there is additional time for Mt. Hope to secure the H.R. 459 lose these jobs and these revenues. These extension bills have not proved energy supply contracts to begin the Be it enacted by the Senate and House of Rep- construction of the proposed facility. resentatives of the United States of America in controversial in the past. H.R. 459 was Congress assembled, approved by the Subcommittee on En- This project is an advanced pumped- storage hydroelectric plant located in SECTION 1. EXTENSION OF TIME FOR FERC ergy and Power of the Committee on PROJECT. Commerce by unanimous voice vote. my district, Morris County, New Jer- Notwithstanding the time limitations The bill was introduced jointly by the sey. Far from a conventional hydro specified in section 13 of the Federal Power gentleman from New Jersey (Mr. plant, this facility will be a closed Act (16 U.S.C. 806), the Federal Energy Regu- FRELINGHUYSEN) and the gentleman cycle system in which water will be latory Commission, upon the request of the from New Jersey (Mr. PALLONE). continuously circulated between two licensee for FERC Project No. 9401 (and after man-made reservoirs. reasonable notice), is authorized, in accord- I support H.R. 459, Mr. Speaker. ance with the good faith, due diligence, and Mr. Speaker, I reserve the balance of The project has the strong support of public interest requirements of such section my time. local government officials and organi- 13 and the Commission’s procedures under Mr. HALL of Texas. Mr. Speaker, I zations where the project will be built, such section, to extend the time required for yield myself such time as I may con- namely the New Jersey Business and commencement of construction of such sume. Industry Association and the Sierra project until August 3, 2002. I will be brief, Mr. Speaker. I thank Club of New Jersey. This $2 billion The SPEAKER pro tempore. Pursu- the chairman of the committee; and I project will be financed entirely by the ant to the rule, the gentleman from want to congratulate my colleague, the private sector with no taxpayers’ dol- Texas (Mr. BARTON) and the gentleman gentleman from New Jersey (Mr. lars used for its construction. from Texas (Mr. HALL) each will con- FRELINGHUYSEN), for his very hard and As the chairman has mentioned, the trol 20 minutes. successful bipartisan work on this bill. project will bring approximately 1,300 H2588 CONGRESSIONAL RECORD — HOUSE May 4, 1999 jobs to New Jersey and boost our Na- and pass the bill (H.R. 1121) to des- Throughout his distinguished legal tion’s economy by adding approxi- ignate the Federal building and United career, Judge Morgan has served the mately $6 billion to the gross national States courthouse located at 18 Green- citizens of Georgia with humility, product during construction. ville Street in Newnan, Georgia, as the scholarship, compassion and dignity. In a nutshell, this project can serve ‘‘Lewis R. Morgan Federal Building Judge Morgan, a native Georgian, reas our region’s, northern New Jersey, and United States Courthouse’’. ceived his education in the public New York and that area, as an energy The Clerk read as follows: schools in Georgia and received his law insurance policy by enhancing the se- H.R. 1121 degree from the University of Georgia. curity of the electrical supply system Be it enacted by the Senate and House of Rep- He served in the Georgia General As- for our region. resentatives of the United States of America in sembly and is a veteran of World War Mr. Speaker, the project has many Congress assembled, II. environmental, energy and economic SECTION 1. DESIGNATION. In August of 1961, he was appointed benefits to the State of New Jersey and The Federal building and United States as a United States District Judge for the mid-Atlantic region. The project courthouse located at 18 Greenville Street in the Northern District of Georgia. Dur- has strong support of local and State Newnan, Georgia, shall be known and des- ing his career, he served on the Court officials; and it will help us meet, most ignated as the ‘‘Lewis R. Morgan Federal of Appeals for both the Fifth and the importantly, the goals of the Clean Air Building and United States Courthouse’’. Eleventh Circuit. Act. I urge my colleagues to support SEC. 2. REFERENCES. the passage of H.R. 459 so we can begin Any reference in a law, map, regulation, b 1745 to realize these benefits. document, paper, or other record of the This designation in honor of Judge United States to the Federal building and Mr. PALLONE. Mr. Speaker, I am pleased Morgan is widely supported by various to speak today in support of H.R. 459, to ex- United States courthouse referred to in section 1 shall be deemed to be a reference to groups, including the Mayor and City tend the deadline for the Mt. Hope hydropower the ‘‘Lewis R. Morgan Federal Building and Council of Newnan, the Newnan- project. United States Courthouse’’. Coweta Bar Association, and the Mayor The Federal Power Act allows a licensee and City Council of LaGrange, Georgia. two years to begin construction of a hydro- The SPEAKER pro tempore. Pursu- ant to the rule, the gentleman from It is most fitting and proper to honor electric project once a license is issued. The the long, distinguished career of Judge Federal Energy Regulatory Commission New Jersey (Mr. FRANKS) and the gen- Morgan with this designation. I sup- (FERC) may extend that deadline, but it may tleman from Mississippi (Mr. SHOWS) port H.R. 1121 and I urge its passage. only do so once and only for two years. If each will control 20 minutes. Mr. Speaker, I reserve the balance of project construction has not commenced by The Chair recognizes the gentleman my time. this deadline, the commission is required to from New Jersey (Mr. FRANKS). Mr. FRANKS of New Jersey. Mr. terminate the license. Mr. FRANKS of New Jersey. Mr. However, there are many obstacles that Speaker, I yield myself such time as I Speaker, I yield as much time as he often make it difficult for a project to com- may consume. may consume to the gentleman from mence construction during either the initial li- Mr. Speaker, H.R. 1121 designates the Georgia (Mr. COLLINS). cense time frame or the extension period. Per- Federal Building and United States Mr. COLLINS. Mr. Speaker, I thank haps the most frequent reason for delay is the courthouse in Newnan, Georgia, as the the gentleman from New Jersey for lack of a power purchase agreement, for with- ‘‘Lewis R. Morgan Federal Building yielding me the time. out such an agreement, it is unlikely that a and United States Courthouse’’. Mr. Speaker, I rise today to recognize project could get financed. This is the case Lewis Morgan was born and raised in a man whose record of community with the Mt. Hope hydropower project to be lo- Georgia and went on to earn his law de- service to the State of Georgia is par- cated in Rockaway Township, Morris County, gree from the University of Georgia. alleled only by that of his contribu- in my home state of New Jersey. Prior to his appointment to the Fed- tions to the American judicial system. Because of the limitations set in the Federal eral bench, Judge Morgan was in pri- Judge Lewis Render Morgan was a Power Act, the House has had a long, bipar- vate practice and served in the Georgia judge for the United States Board of tisan tradition of moving non-controversial li- General Assembly to represent Troup Appeals for the Eleventh Circuit until cense extensions. I am pleased that Rep- County. He also served as the adminis- his retirement in 1996. During his illus- resentative FRELINGHUYSEN and I could intro- trative assistant to Congressman Sid- trious career, he maintained his office duce this bill in a bi-partisan manner. The ney Camp, and during World War II and chambers in the Federal Building Commerce Committee unanimously passed served in the Signal Corps of the and Courthouse located in Newnan, this bill. In addition, the chairman of FERC United States Army. Following the Georgia. Largely because of his efforts, wrote a letter to the House Commerce Energy war, Judge Morgan was a city attorney this facility was constructed in 1968 and Power Subcommittee just a few months for LaGrange and county attorney for and stands as a symbol of his integrity ago indicating his approval for extending the Troup County. and commitment to American law. deadline for this project. Judge Morgan was appointed as a Therefore, it is very appropriate that Mr. Speaker, I know of no objection to this United States District Judge for the the building be named for him. bill, and I urge my colleagues to support the Northern District of Georgia in 1961. He Mr. Speaker, I will repeat many of legislation. served as chief judge prior to being ap- the fine compliments that have already Mr. BARTON of Texas. Mr. Speaker, pointed to the United States Court of been made by my colleagues in my re- I have no further requests for time; and Appeals for the Fifth Judicial Circuit. marks, but I think this man well de- I yield back the balance of my time. serves a repetition of those remarks. The SPEAKER pro tempore. The In 1981, Judge Morgan was appointed Judge Morgan was born in LaGrange, question is on the motion offered by to the Eleventh Circuit Court of Ap- peals. He maintained an active case Georgia, July 14, 1913. He received his the gentleman from Texas (Mr. BAR- load until illness forced him to retire primary education in the LaGrange TON) that the House suspend the rules and pass the bill, H.R. 459. in 1996. public school system before heading off The question was taken; and (two- This is a fitting tribute to a dedi- to the hills of Ann Arbor to begin a thirds having voted in favor thereof) cated public servant. I support this bill pre-law program at the University of the rules were suspended and the bill and encourage my colleagues to sup- Michigan. Those studies culminated was passed. port it as well. with a law degree from the University A motion to reconsider was laid on Mr. Speaker, I reserve the balance of of Georgia in 1935. the table. my time. Following his graduation, Judge Mor- f Mr. SHOWS. Mr. Speaker, I yield my- gan began a distinguished career of self such time as I may consume. public contribution to the State of LEWIS R. MORGAN FEDERAL Mr. Speaker, H.R. 1121 is a bill to des- Georgia, which included service as a BUILDING AND UNITED STATES ignate the Federal Building in Newnan, member of the Georgia General Assem- COURTHOUSE Georgia, as the ‘‘Lewis R. Morgan Fed- bly, representing Troup County, Geor- Mr. FRANKS of New Jersey. Mr. eral Building and United States Court- gia; administrative assistant to the Speaker, I move to suspend the rules house’’. Honorable A. Sidney Camp, Member of May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2589

Congress; member of the Signal Corps tleman from Pennsylvania (Mr. SHU- That it Be Further Resolved that we as an of the United States Army, World War STER), chairman of the Committee on Association request the aid and support of II; city attorney for the City of La- Transportation, for this legislation, the Honorable Mac Collins, United States Grange, Georgia; and county attorney and to the ranking member for his as- Representative in Congress, for the purpose of introducing and sponsoring the necessary for Troup County, Georgia. sistance. legislation to effectuate this Resolution in The people of Coweta County were Mr. Speaker, I include for the naming the United States Courthouse and very fortunate when Judge Morgan was RECORD the following resolutions from Federal Building for Judge Lewis R. Morgan. appointed as a United States District the different cities and organizations It is so resolved this 10th day of March 1999. Court Judge for the Northern District praising the accomplishments of Judge of Georgia on August 10, 1961. That ap- Morgan: THE CITY OF NEWNAN, GEORGIA—OFFICE OF pointment served as the beginning of a NEWNAN-COWETA BAR ASSOCIATION THE CITY COUNCIL long and productive relationship be- Upon motion and second at a regularly The members of the City Council of the tween Judge Morgan and the Coweta scheduled and noticed meeting of the City of Newnan, in regular meeting assem- County residents. Newnan-Coweta Bar Association, the mem- bled, unanimously adopted the following Four years later, he served as Chief bers of the Newnan-Coweta Bar Association Resolution concerning the naming of the Judge of the Northern District, a posi- unanimously voted to adopt the following United States Courthouse and Federal Build- ing located at 18 Greenville Street, Newnan, tion which he held until 1968, when he resolution honoring United States Eleventh Circuit Court of Appeals Judge Lewis Render Georgia, in honor of retired United States was appointed as a judge of the United Morgan, requesting that the United States Circuit Judge Lewis Render Morgan: States Court of Appeals for the Fifth Courthouse and Federal Building located at RESOLUTION Circuit. And on October 1, 1981, Judge 18 Greenville Street, Newnan, Georgia be Whereas, Judge Lewis R. Morgan served as Morgan was appointed to the Eleventh named in his honor by the United States a United States Judge since 1961 until his re- Congress. Circuit Court of Appeals. tirement from active service in 1996, having During that tenure, Judge Morgan RESOLUTION first served as a United States District Judge served the Federal judiciary in many Whereas, Judge Lewis R. Morgan is held in and later as a United States Circuit Judge; ways, including being a member of the great esteem by all of the members of the and Judicial Conference of the United Newnan-Coweta Bar Association and has Whereas, Judge Morgan has served the States’ Committee on the Budget from long been a friend of this bar; and Federal Judiciary well in many ways during 1969 to 1979, serving as a judge of the Whereas, five current and active members his prestigious and respected career on the of the Newnan-Coweta Bar Association are Bench, including being a member of the Ju- Temporary Emergency Court of Ap- fortunate enough to have served as law peals from 1979 to 1987, and as a mem- dicial Conference of the United States’ Com- clerks for the Judge; and mittee on the Budget from 1969 to 1979, serv- ber of the Special Division of the Dis- Whereas, many lawyers and former lawyers ing as a Judge of the Temporary Emergency trict of Columbia’s Court of Appeals for were friends and contemporaries of Judge Court of Appeals from 1979 to 1987, and also Appointing an Independent Counsel Morgan throughout his legal career, includ- serving as a member of the Special Division from 1978 to 1988. ing Walter D. Sanders, formerly City Attor- of the District of Columbia’s Court of Ap- Judge Morgan is married to the ney for the City of Newnan and county attor- peals for Appointing Independent Counsel ney for the county of Coweta; J. Littleton former Sue Lorraine Phillips; and they from 1978 to 1988; and Glover, attorney for Newnan Utilities; Byron Whereas, Judge Morgan enjoyed a most have two children, Parks Healy and M. Matthews, former State Court Judge of Sue Ann Morgan Everett. He is a mem- successful and thriving law practice all over Coweta County; Jack T. Camp, United States the West Georgia area prior to his appoint- ber of the American Bar Association, District Judge for the Northern District of ment to the Federal Bench, during which the American Law Institute, the Amer- Georgia; William F. Lee, Jr., Chief Superior time he developed his reputation as a fair, ican Judicature Society, the Georgia Court Judge for the Coweta County Circuit; upstanding, and admired attorney; and Bar Association, the Troup County Bar and W. Homer Drake, Jr., United States Whereas, Judge Morgan has continually es- Association, and the Coweta Judicial Bankruptcy Judge for the Northern District tablished his office and chambers in the City of Georgia; and of Newnan since his appointment to the Fed- Circuit Bar Association. Whereas, Judge Morgan established his of- eral Bench in 1961 through his retirement 35 Throughout his distinguished and fice and chambers in the City of Newnan years later in 1996; and celebrated career, Judge Morgan has since his original appointment to the Fed- Whereas, the Federal Court facility in served the City of Newnan, the State of eral Bench in 1961 through his retirement 35 Newnan was constructed in 1968, principally years later in 1996; and Georgia, and the United States with because of the efforts of Judge Morgan; and honor and commitment. In recognition Whereas, the Federal Court Building was constructed at its current location in 1968, Whereas, this Federal facility was consid- of this service, and for the high esteem ered, in essence, his building, his idea, and with which he is held by the members largely due to the undertaking of Judge Mor- gan to locate the facility in the City of his dream, and of his community, it is very fitting, Newnan for the benefit of not only the citi- Whereas, in the opinion of the members of Mr. Speaker, that the site of his office zens of Coweta County but also to benefit the City Council of the City of Newnan, it and chambers bears his name. citizens throughout the entire Newnan Divi- would be a fitting climax to his career for I am very honored to have worked sion, Northern District of Georgia; and this building, that presently has no name, to with many individuals in this legisla- Whereas, Judge Morgan has had a pres- be named in honor of Judge Morgan. Therefore, Be it Resolved that the members tive process, including the gentleman tigious and respected tenure on the judiciary as well as serving as a member of the Judi- of the City Council of the City of Newnan of- from Georgia (Mr. BARR) who has sup- ficially acknowledge and recognize Judge ported this endeavor from the start; cial Conference of the United States’ Com- mittee on the Budget from 1969 to 1979, serv- Morgan’s long and distinguished service as a Howard ‘‘Bo’’ Callaway, former Con- ing as Judge of the Temporary Emergency member of the Federal Judiciary, recognize gressman and Secretary of the Army; Court of Appeals from 1979 to 1987, and as a the high esteem in which he is held by the L. Keith Brady, Mayor of Newnan and member of the Special Division of the Dis- citizens of this community, and publicly ex- counsel of Newnan, Georgia; Walter trict of Columbia’s Court of Appeals for Ap- tend our grateful appreciation to Judge Mor- Jeff Lukken, Mayor of LaGrange, Geor- pointing Independent Counsel from 1978 to gan for what he has meant, and continues to 1988; and mean, to the City of Newnan; and gia; the Newnan-Coweta Bar Associa- Therefore, Be it Further Resolved, that it is tion; the Coweta County Board of Com- Whereas, Judge Morgan had a successful and thriving private practice wherein he de- our desire that the United States Courthouse missioners; United States District veloped his reputation as a fair, upstanding, and Federal Building in Newnan be hence- Court Judges Jack T. Camp and W. and admired attorney prior to his appoint- forth known as the ‘‘Lewis R. Morgan United Homer Drake, Jr.; United States Dis- ment to the bench; and States Courthouse and Federal Building’’; trict Court Chief Judge G. Ernest Tid- Whereas, in the opinion of the members of and well; and many others. the Newnan-Coweta Bar Association it would Therefore, Be it Further Resolved, that we Generations to come will now have a be appropriate for the Federal Building in respectfully solicit the assistance and sup- lasting reminder of what Judge Morgan Newnan to be named in honor of Judge Lewis port of the Honorable Mac Collins, United Render Morgan. States Congress, in introducing and spon- has meant and continues to mean to Therefore, Be it Resolved that it is our de- soring legislation in Congress to name this the City of Newnan, Georgia. sire that the United States Courthouse and building for Judge Morgan. My thanks to the gentleman from Federal Building in Newnan be named as the Be it so Resolved and Ordered in regular ses- New Jersey (Mr. FRANKS), sub- ‘‘Lewis R. Morgan United States Courthouse sion assembled, this the 9th day of March, committee chairman, and the gen- and Federal Building’’; and 1999. H2590 CONGRESSIONAL RECORD — HOUSE May 4, 1999

TROUP COUNTY BAR ASSOCIATION ty from 1961 to 1968, at which time he was ap- licly extend our grateful appreciation to Upon motion and second at a called and pointed as a judge on the United States Judge Morgan for what he has meant, and noticed meeting of the Troup County Bar As- Court of Appeals for the Fifth Judicial Cir- continues to mean, to Coweta County; and sociation, the members of the Troup County cuit. On October 1, 1981, he was appointed as Therefore, be it Further Resolved that it is Bar Association unanimously voted to adopt a judge to the United States Eleventh Cir- our desire that the United States Courthouse the following resolution honoring United cuit Court of Appeals where he served until and Federal Building in Newman, Coweta States Eleventh Circuit Court of Appeals his retirement; and County, Georgia be henceforth known as the Judge Lewis Render Morgan, requesting that Whereas, as a result of his appointment to ‘‘Lewis R. Morgan United States Courthouse the United States Courthouse and Federal the federal bench, Judge Morgan relocated and Federal Building’’; and Therefore, be it Further Resolved that we re- Building located at 18 Greenville Street, his office from LaGrange to Newnan, Geor- spectfully solicit the assistance and support Newnan, Georgia be named in his honor by gia, the site of the United States District of the Honorable Mac Collins, United States the United States Congress. Courthouse; and Whereas, the construction of said building Congress, in introducing and sponsoring leg- RESOLUTION was carried our under the direction of Judge islation in Congress to name this building Whereas, Judge Lewis R. Morgan is held in Morgan thereby making it easier for the citi- for Judge Morgan. great esteem by all members of the Troup zens of Troup County to conduct any nec- Be it so Resolved and Ordered in Regular County Bar Association and has long been a essary business with the federal courts in a Session lawfully assembled, this the 16th day of March, 1999. friend of this bar organization; and more convenient location in Newnan; and Whereas, many lawyers and former lawyers Whereas, it appears to this Board that a OFFICE OF THE MAYOR—LAGRANGE, GA of this bar were friends and contemporaries lifetime of service to citizens of this county of Judge Morgan throughout his legal career; should be recognized. PROCLAMATION and Now, Therefore, it is Hereby Resolved that a Whereas, Lewis Render Morgan served as a Whereas, many lawyers in this bar have copy of this Resolution be mailed to Con- United States District Judge for the North- had the honor to practice before Judge Mor- gressman Bob Barr, representing this county ern District of Georgia from 1951 to 1968 and gan; and, in the United States Congress, with a re- was Chief Judge of that Court from 1965 to Whereas, the Federal Court Building was quest that Congressman Barr introduce leg- 1968; and constructed at its current location in 1968, islation to name the building housing the Whereas, Judge Morgan was appointed to largely due to the undertaking of Judge Mor- United States District Court in Newnan in the United States Court of Appeals for the gan to locate a facility in the City of honor of Judge Lewis R. Morgan; Fifth Circuit in 1968 and took Senior Judge Newnan for the benefit of not only the citi- It is Hereby Further Resolved that a copy of status in 1978 and was appointed to the newly zens of Coweta County but also to benefit this Resolution be spread upon the minutes created Eleventh Circuit in 1981; and citizens in Troup County and throughout the Whereas, Judge Morgan has served the of this body as a testament of a lifetime of entire Newnan Division, Northern District of State of Georgia as a member of the General service rendered our citizens by Judge Mor- Georgia; and, Assembly from 1937 to 1939, Attorney for the gan. Whereas, Judge Morgan has had a pres- City of LaGrange from 1943 to 1946, Attorney Resolved this 6th day of April, 1999 tigious and respected tenure on the judiciary for Troup County from 1957 to 1961, a member TROUP COUNTY BOARD OF COMMISSIONERS. as well as serving as a member of the Judi- of the Judicial Conference Committee on the cial Conference of the United States’ Com- Budget from 1969 to 1979, has served on the RESOLUTION mittee on the Budget from 1969 to 1979, serv- Special Division of the U.S. Court of Appeals ing as Judge of the Temporary Emergency Whereas, Judge Lewis R. Morgan served as for the District of Columbia Circuit since Court of Appeals from 1979 to 1987, and as a a United States Judge since 1961 until his re- 1978 and in 1979 was appointed to serve on the member of the Special Division of the Dis- tirement from active service in 1996, having temporary Emergency Court of Appeals; and trict of Columbia’s Court of Appeals for Ap- first served as a United States District Judge Whereas, Judge Morgan made his home and pointing Independent Counsel from 1978 to and later as a United States Circuit Judge; raised his family in LaGrange, Georgia and 1988; and and was married to Sue Lorene Phillips, has two Whereas, Judge Morgan had a successful Whereas, Judge Morgan has served the children, Parks Healey Morgan and Sue Ann and thriving private practice wherein he de- Federal Judiciary well in many ways during Morgan Rogers, and three grandchildren; and veloped the reputation as a fair, upstanding, his prestigious and respected career on the Whereas, Judge Morgan is a member of the and admired attorney prior to his appoint- Bench, included being a member of the Judi- American Bar Association, the American ment to the bench; and, cial Conference of the United States’ Com- Law Institute, the American Judicature So- Whereas, in the opinion of the members of mittee on the Budget from 1969 to 1979, serv- ciety, the Georgia Bar Association, the the Troup County Bar Association it would ing as a Judge of the Temporary Emergency Troup County Bar Association, and the be appropriate and fitting that the Federal Court of Appeals from 1979 to 1987, and also Coweta Judicial Circuit Bar Association; and Building in Newnan be named in honor of serving as a member of the Special Division Whereas, Judge Morgan enjoyed a success- Judge Lewis Render Morgan. of the District of Columbia’s Court of Ap- ful and thriving law practice throughout Therefore, Be it Resolved that it is our de- peals for Appointing Independent Counsel West Georgia prior to his appointment to the sire that the United States Courthouse and from 1978 to 1988; and Federal Bench and developed a reputation as Federal Building in Newnan be named as the Whereas, Judge Morgan enjoyed a most a fair, outstanding and admired attorney ‘‘Lewis R. Morgan United States Courthouse successful and thriving law practice all over and, through his efforts, the Federal Court and Federal Building’’; and the Coweta Judicial Circuit and the West Facility in Newnan, Georgia was constructed That it Be Further Resolved that we as an Georgia area prior to his appointment to the in 1968. Association request the aid and support of Federal Bench, during which time he devel- Now, Therefore Be It Resolved, That the the Honorable Mac Collins, United States oped his reputation as a fair, upstanding, and Mayor and Council of the City of LaGrange, Representative to Congress, for the purpose admired attorney; and Georgia desires that the United States of introducing and sponsoring the necessary Whereas, Judge Morgan has continually es- Courthouse and Federal Building in Newnan, legislation to effectuate this Resolution in tablished his office and chambers in the City Georgia be henceforth known as the ‘‘Lewis naming the United States Courthouse and of Newman since his appointment to the R. Morgan United States Courthouse and Federal Building for Judge Lewis R. Morgan. Federal Bench in 1961 through his retirement Federal Building’’; and It is so Resolved, this 24th day of March, 35 years later in 1996; and Be It Further Resolved, That the City of La- 1999. Whereas, the Federal Court facility in Grange respectfully solicits the assistance Newnan, Coweta County, was constructed in and support of the Honorable Mac Collins, RESOLUTION 1968, principally because of the efforts of United States Congress, in introducing and Whereas, Lewis R. (Pete) Morgan, a native Judge Morgan; and sponsoring legislation in Congress to so son of Troup County, who after completing Whereas, this Federal facility was consid- name this facility for Judge Lewis Render his primary education in the LaGrange pub- ered, in essence, his building, his idea, and Morgan. lic schools and receiving his law degree from his dream; and Mr. BARR of Georgia. Mr. Speaker, I rise the University of Georgia, returned to La- Whereas, in the opinion of the members of today in support of H.R. 1121, a bill to des- Grange and practiced law from 1935 to 1961, the Coweta County Commission, it would be ignate the Federal building and United States several of such years being served as Troup a fitting climax to his career for this build- courthouse locates in Newman, GA, as the County attorney as well as attorney for the ing, that presently has no name, to be named ``Lewis R. Morgan Federal Building and United City of LaGrange; and in honor of Judge Morgan. States Courthouse.'' Whereas, the service to this county contin- Therefore, be it Resolved, that the members Judge Lewis R. Morgan served as a United of the Coweta County Board of Commis- ued when he was appointed to the United States Judge since 1961 until his retirement States District Court for the Northern Dis- sioners officially acknowledge and recognize trict of Georgia; and Judge Morgan’s long and distinguished serv- from active service in 1996, having first served Whereas, Judge Morgan served at the ice as a member of the Federal Judiciary, as a United States District Judge and later as Newnan Division of said court hearing cases recognize the high esteem in which he is held a United States Eleventh Circuit Court Judge. arising from this area including Troup Coun- by the citizens of this community, and pub- Judge Morgan sat on the bench for 35 years May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2591 developing a reputation as a fair, upstanding, tucky, and Rockport, Indiana, shall be 231 over the Ohio River between Maceo, and admired judge. known and designated as the ‘‘William H. Kentucky, and Rockport, Indiana, as Lewis R. Morgan, a native son of Troup Natcher Bridge’’. the ‘‘William H. Natcher Bridge.’’ This County, who after completing his primary edu- SEC. 2. REFERENCES. legislation acknowledges the efforts of cation in the LaGrange, Georgia public school Any reference in a law, map, regulation, Mr. Natcher to construct this bridge. received his law degree from the University of document, paper, or other record of the United States to the bridge referred to in Mr. Speaker, similar legislation Georgia, returned to LaGrange and practiced section 1 shall be deemed to be a reference to passed the House in both the 103rd and law from 1935 to 1961. During that time, he the ‘‘William H. Natcher Bridge’’. 104th Congress but failed to be enacted. served the state of Georgia as a Member of The SPEAKER pro tempore. Pursu- I urge a unanimous vote in approving the General Assembly from 1937 to 1939, At- ant to the rule, the gentleman from this bill. torney for the City of LaGrange from 1943 to New Jersey (Mr. FRANKS) and the gen- Mr. Speaker, I reserve the balance of 1946, Attorney for Troup County from 1957 to tleman from Mississippi (Mr. SHOWS) my time. 1961. Mr. FRANKS of New Jersey. Mr. Judge Morgan was appointed as a judge on each will control 20 minutes. The Chair recognizes the gentleman Speaker, I yield as much time as he the United States Court of Appeals for the may consume to my colleague, the gen- Fifth Judicial Circuit. On October 1, 1981, he from New Jersey (Mr. FRANKS). Mr. FRANKS of New Jersey. Mr. tleman from Kentucky (Mr. LEWIS). was appointed as a judge to the United States Speaker, I yield myself such time as I Mr. LEWIS of Kentucky. Mr. Speak- Eleventh Circuit Court of Appeals. may consume. er, I rise today to express my support In addition, as a member of the bench he for H.R. 1162, which designates a new served on the Judicial Conference of the Mr. Speaker, H.R. 1162 designates the bridge on U.S. Route 231 over the Ohio bridge under construction in United States' Committee on the Budget from Owensboro, Kentucky, the ‘‘William H. 1969 to 1979, serving as Judge of the Tem- River near Owensboro, Kentucky, as the ‘‘William H. Natcher Bridge’’ in Natcher Bridge.’’ The House passed porary Emergency Court of Appeals from 1979 similar legislation in both the 103rd to 1987, and as a member of the Special Divi- honor of our late and former colleague William Natcher. and 104th Congresses. Unfortunately, sion of the District of Columbia's Court of Ap- the other body never acted on these peals for Appointing Independent Counsel Identical legislation was passed unanimously by this House on June 18, bills. from 1978 to 1988. During consideration of those bills, The idea of naming this building after Judge 1996, and on September 22, 1994, but was however, many Members from both Morgan has been endorsed by the Coweta never enacted. sides of the aisle shared their experi- County and Troup County Board of Commis- Representative Natcher was born in ences about working with Mr. Natcher. sioners, the City Council of Newnan, the Bowling Green, Kentucky, in 1909 and They talked about the dedication and Newnan-Coweta Bar Association, the Troup was educated at Western Kentucky hard work of my predecessor. County Bar Association, the Office of the College and the Ohio State University I encourage my colleagues to take a Mayor of LaGrange and the City Council, Law School. His life was dedicated to moment to look at some of those com- Georgia. public service, serving in the U.S. Navy Judge Morgan has established his office during World War II and holding a se- ments. As most Members who served and chamber in the City of Newnan since his ries of local and State offices before with Mr. Natcher can attest, he was a original appointment to the Federal Bench in being elected to Congress. He moved up statesman and a true gentleman. While 1961 through his retirement. The federal court the ranks of the Committee on Appro- he will always be remembered on Cap- facility in Newnan, Georgia was constructed in priations, eventually assuming chair- itol Hill for never missing a vote dur- 1968, principally because of the efforts of manship of the full Committee in 1993. ing his many years in service, he will Judge Morgan. This facility was considered, in I am proud to have had the privilege be known in the Second District for his essence, his building, his idea, and his dream. of serving in the House with Congress- hard work on behalf of his constitu- Today we take a step in making the dream man Natcher. Although well-known for ents. after the dreamer, Judge Lewis R. Morgan. having cast 18,401 consecutive votes Mr. Natcher was dedicated to making Mr. SHOWS. Mr. Speaker, we have no during his 40 years here, Congressman this bridge a reality due to the benefits other requests for speakers, and I yield Natcher’s accomplishments are much it would bring to the Second District. back the balance of my time. more than his extraordinary voting He guided this project through Con- Mr. FRANKS. Mr. Speaker, I yield record. He put an extremely high value gress and laid the groundwork to as- back the balance of my time. on public service and set a very high sure its completion. The SPEAKER pro tempore. The standard for himself. The Commonwealth of Kentucky has question is on the motion offered by Bill Natcher was always an inspira- already designated this bridge in honor the gentleman from New Jersey (Mr. tion to me and I know to many other of Mr. Natcher. Now it is our responsi- FRANKS) that the House suspend the Members, as well. He was a gentleman, bility in Washington to do the same. rules and pass the bill, H.R. 1121. a statesman, and a man of unques- This bill gives us the chance to recog- The question was taken; and (two- tioned integrity who served this House nize his efforts at the Federal level and thirds having voted in favor thereof) and his constituents in Kentucky from provide a visible reminder of this true the rules were suspended and the bill 1954 until his death in 1994 with quiet, friend to Kentucky. was passed. unfailing dedication. I hope my colleagues will join me and A motion to reconsider was laid on The naming of this bridge for Bill the members of the Kentucky House the table. Natcher is a fitting and lasting memo- delegation in supporting this legisla- f rial to our friend and former colleague. tion. WILLIAM H. NATCHER BRIDGE I support this bill and urge my col- Mr. SHOWS. Mr. Speaker, I yield back the balance of my time. Mr. FRANKS of New Jersey. Mr. leagues to support it, as well. Mr. Speaker, I reserve the balance of Mr. FRANKS of New Jersey. Mr. Speaker, I move to suspend the rules my time. Speaker, I yield as much time as he and pass the bill (H.R. 1162) to des- Mr. SHOWS. Mr. Speaker, I yield my- may consume to my colleague, the gen- ignate the bridge on United States self such time as I may consume. tleman from Kentucky (Mr. ROGERS). Route 231 that crosses the Ohio River Mr. Speaker, I would simply like to Mr. ROGERS. Mr. Speaker, I thank between Maceo, Kentucky, and Rock- associate my remarks with many of the gentleman from New Jersey for port, Indiana, as the ‘‘William H. those of my colleagues who have had yielding me the time. Natcher Bridge.’’ Mr. Speaker, I rise in support of this The Clerk read as follows: the honor to have known and served with Mr. Natcher. The distinguished resolution. I want to commend our col- H.R. 1162 gentleman from Kentucky represented league, the gentleman from the Second Be it enacted by the Senate and House of Rep- District of Kentucky (Mr. RON LEWIS) resentatives of the United States of America in the people of Kentucky in Congress for Congress assembled, over 40 years. for offering this legislation. His prede- SECTION 1. DESIGNATION. This bill, H.R. 1162, has the full sup- cessor in the Second District, Bill The bridge on United States Route 231 that port of the Kentucky delegation. It Natcher, most all of us served with crosses the Ohio River between Maceo, Ken- would designate a bridge on U.S. Route here in this great body, and knew him H2592 CONGRESSIONAL RECORD — HOUSE May 4, 1999 and knew him to be the epitome of rec- I want to commend the gentleman in the hospital in Bowling Green. He titude and the very model of what a from Kentucky (Mr. LEWIS), Bill flew for like 2 straight weeks each U.S. Congressman ought to be. Natcher’s very worthy successor, for night after the House would get out of Bill Natcher was a combined Lou continuing Bill Natcher’s legacy and session. He would fly home to Nash- Gehrig and Cal Ripken. He was the Lou diligently working for the people of ville, drive I think 60 miles or so to Gehrig and Cal Ripken of Congress. that great district and especially to Bowling Green or 70 miles, spend the Forty-one years of service in this body. finish the construction on this bridge, night with her, fly back the next morn- As has been mentioned, he holds the and now to name that bridge the Wil- ing, and then do the same thing over record for consecutive votes cast, 18,401 liam H. Natcher Bridge, something again the next day and did that for 2 over that 41 years of service, never hav- that all of us will be proud of until the weeks. The lengths that he went to to ing missed a single vote, a record that day we die and our kids will continue keep up this record. I am going to say never will be believing is worthy of that name for He was a great American. I do not matched. It is technically possible but many, many decades to come. It will be think that we really could pay enough not very likely. a daily reminder to Bill Natcher’s honor and tribute to William Natcher, But Bill Natcher, as we all know, was former beloved constituents of his tre- who was the epitome of what a United more than a consecutive voting streak; mendous service to our Nation. States Congressman should be. I he was a patriot and a statesman. He This is a fitting tribute to Ken- strongly support this legislation. was a man of the highest character. He tucky’s former dean, and I am honored Mr. PETRI. Mr. Speaker, I rise in strong prided himself in dutifully serving his to urge support unanimously of this support of this bill. I think it only appropriate to district, his great Kentucky, and the measure. honor our late friend and colleague by desig- Nation. Mr. FRANKS of New Jersey. Mr. nating in his name this bridge, for which he As has been mentioned, he was a very Speaker, I yield such time as he may fought so hard during his legendary tenure in long time member of the Committee on consume to the gentleman from Ten- this Chamber. Appropriations. He served for 18 years nessee (Mr. DUNCAN). Bill Natcher will always be remembered for as the chairman of the District of Co- Mr. DUNCAN. Mr. Speaker, I thank his determination and longevity, but it was his lumbia Subcommittee, 18 years, and the gentleman from New Jersey for commitment to the people of the second dis- during that time became known as the yielding me this time. I wanted to take trict of Kentucky and his love and respect for mayor of Washington. In those days, just a minute to express my apprecia- this body that inspired us all. the chairman of that subcommittee tion to him and to the Speaker and to Today we have the opportunity to create a held great sway in the running of this others who have brought this bill to lasting memorial honoring Bill Natcher's name. city. the floor of the House here tonight. I strongly urge that we pass H.R. 1162 and And then, of course, we know he I had the great privilege of knowing do just that. served as chairman of the Sub- Congressman Natcher personally and Mr. FRANKS of New Jersey. Mr. committee on Labor, Health and working closely with him for several Speaker, I yield back the balance of Human Services and Education, and years. my time. that is where he really made his mark. What is interesting to me is just this The SPEAKER pro tempore (Mr. His tenure was marked by a strong morning I had a group from the First COBLE). The question is on the motion commitment to programs that bene- Baptist Church of Athens, Tennessee, offered by the gentleman from New fitted the general welfare of our popu- on the floor of the House, showing Jersey (Mr. FRANKS) that the House lation. He was a man of commitment. them around the Capitol. I showed suspend the rules and pass the bill, I am going to quote him here. He them the voting card that we each H.R. 1162. said, ‘‘I have always believed that if have and told them how we voted in The question was taken; and (two- you take care of the health of your the names, how they light up on the thirds having voted in favor thereof) people and educate your children, you wall and so forth. One of the women in the rules were suspended and the bill continue living in the strongest coun- that group asked me about the man was passed. try in the world.’’ who broke the record, having the most A motion to reconsider was laid on In 1992, at the age of 83, he ascended consecutive votes, and so I told them the table. to become chairman of the full Com- about Congressman Bill Natcher, and f mittee on Appropriations. He liked to that is who they were talking about. laughingly say that he had sat next to Because I know, as has already been ROBERT K. RODIBAUGH UNITED the chairman waiting to assume the mentioned, he did not miss a rollcall STATES BANKRUPTCY COURT- seat for some, I think, 25 years, Jamie vote for more than 40 years. He had a HOUSE Whitten. And finally, in 1992, he as- record that will never be broken. It Mr. FRANKS of New Jersey. Mr. sumed that chair. He continued his rep- will never be surpassed. He was so dedi- Speaker, I move to suspend the rules utation as a fair and responsible law- cated to this institution and so dedi- and pass the Senate bill (S. 460) to des- maker. cated to this country. ignate the United States courthouse lo- He did many, many wonderful things b 1800 cated at 401 South Michigan Street in for the District of Columbia during his South Bend, Indiana, as the ‘‘Robert K. Bill Natcher’s contributions to this time that he chaired the D.C. Appro- Rodibaugh United States Bankruptcy country, to Kentucky, and to this body priations Subcommittee. In fact, I Courthouse’’. were so many, we never may fully ap- think for a while he was called or fre- The Clerk read as follows: preciate all that he did and meant to quently referred to as the Mayor of the S. 460 all of us. District of Columbia for many years. But one contribution that will cer- Be it enacted by the Senate and House of Rep- But he did many, many other things, resentatives of the United States of America in tainly be appreciated by the residents also, in his work for the Committee on Congress assembled, of the Second District of Kentucky is Appropriations. In this time of such big SECTION 1. DESIGNATION OF ROBERT K. that bridge extending over the Ohio spending on campaigns, I remember RODIBAUGH UNITED STATES BANK- River into Indiana. Methodically Bill that he used to pride himself in the RUPTCY COURTHOUSE. Natcher labored to erect that bridge fact that he spent I think only about The United States courthouse located at for his constituents and for the better- $10 or $15 or something on some of his 401 South Michigan Street in South Bend, In- ment of the State, and it was unable to campaigns. He would spend a little gas diana, shall be known and designated as the be finished, of course, during his life- ‘‘Robert K. Rodibaugh United States Bank- money driving around the district. ruptcy Courthouse’’. time, unfortunately. But the gen- It was phenomenal what he did in his SEC. 2. REFERENCES. tleman from Kentucky (Mr. LEWIS) has campaigns and in his voting record, Any reference in a law, map, regulation, taken up the task, and he has persist- never missing a vote. I remember one document, paper, or other record of the ently fought to get the money and the time hearing that his wife was sick at United States to the United States court- authorization and the wherewithal to home. Maybe somebody has already house referred to in section 1 shall be deemed finish what bill Natcher had begun. mentioned this. But his wife was sick to be a reference to the ‘‘Robert K. May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2593 Rodibaugh United States Bankruptcy Court- with four employees to four different States Army. He was discharged in 1946 as a house’’. courtrooms in the cities of South Bend, Captain after serving in the infantry and ar- The SPEAKER pro tempore (Mr. Fort Wayne, Gary and Lafayette. mored forces during World War II. DUNCAN). Pursuant to the rule, the gen- Judge Rodibaugh is an active mem- Following his release, Judge Rodibaugh en- tleman from New Jersey (Mr. FRANKS) ber of the Board of Governors of the St. tered private practice in 1946. He also served and the gentleman from Mississippi Joseph County Bar Association, the as the Deputy Prosecuting Attorney of the (Mr. SHOWS) each will control 20 min- Boy Scouts of America, the Red Cross 60th Judicial Circuit, in St. Joseph County, In- utes. and the National Conference of Bank- diana, from 1948 to 1950, and again from The Chair recognizes the gentleman ruptcy Judges. 1953 to 1957. In addition, Judge Rodibaugh from New Jersey (Mr. FRANKS). Judge Rodibaugh is noted for his fair- served as Attorney for the St. Joseph County Mr. FRANKS of New Jersey. Mr. ness, dedication and legal scholarship. Board of Zoning Appeals between 1958 and Speaker, I yield myself such time as I He has set an example for his judicial 1960. may consume. clerks with his high standards and ju- Mr. Speaker, Judge Rodibaugh received the Mr. Speaker, S. 460 designates the dicial excellence. It is fitting and prop- 33 Years of Distinguished Service to Bench United States courthouse in South er to honor Judge Rodibaugh with this and Bar Award from the Bankruptcy Judges of Bend, Indiana, as the ‘‘Robert K. designation. the Seventh Circuit in 1993, the 50 Year Gold- Rodibaugh United States Bankruptcy Mr. ROEMER. Mr. Speaker, I rise today in en Career Award from the Indiana State Bar Courthouse.’’ Judge Rodibaugh served support of S. 460 which recognizes the out- Association in 1991, and the Notre Dame Law the northern district of Indiana in the standing public service record of Judge Robert School's Distinguished Alumnus Award in area of bankruptcy law since his ap- Kurtz Rodibaugh, a loyal and dedicated friend, 1991. Some of the significant cases that pointment as a bankruptcy judge in and the senior bankruptcy judge for the South Judge Rodibaugh has decided include 1960. During his tenure he oversaw the Bend Division of the Northern District of Indi- Papelow v. Foley and In the Matter of John growth of the bankruptcy court from ana. Kelly Jeffers. Judge Rodibaugh has always one small courtroom with a part-time It is truly a great honor for me to recognize enjoyed the challenge of bankruptcy law and referee and a clerk’s office of four em- Judge Rodibaugh, who has consistently dem- has a special talent for working with corporate ployees in South Bend to four separate onstrated generosity and selfless dedication to reorganizations. courtrooms located throughout north- the citizens and legal community of Northern Recently, Judge Rodibaugh said: `Ì still ern Indiana. In 1985, Judge Rodibaugh Indiana. think bankruptcy law is one of the most fas- was appointed Chief Bankruptcy Judge Mr. Speaker, as you may recall, I introduced cinating areas of the law. When a reorganiza- and assumed senior status in 1986. identical legislation which was passed by the tion is successful, it is a satisfying feeling.'' Judge Rodibaugh has fulfilled his du- House of Representatives during the last Con- Mr. Speaker, throughout his tenure, Judge ties as a referee and a judge in bank- gress. I was honored to sponsor this legisla- Rodibaugh has presided over the growth of ruptcy proceedings with patience, fair- tion and pleased that the entire Indiana Con- the bankruptcy court in Northern Indiana from ness, dedication and legal scholarship, gressional delegation cosponsored my bill. one small courtroom with a part-time referee which is most worthy of recognition. It Unfortunately, the measure was not consid- and a clerk's office of two employees in South is a fitting tribute to honor him and ered by the U.S. Senate before the 105th Bend, Indiana, to four different courtrooms in his accomplishments in this manner Congress adjourned. However, this legislation the cities of South Bend, Fort Wayne, Gary, today. was reintroduced by the senior Senator of In- and Lafayette, Indiana, with four full-time This marks the third time the House diana, RICHARD LUGAR, and passed by the full judges and a clerk's office of over forty em- has passed legislation honoring Judge Senate last month. This Senate-passed bill, S. ployees. According to his colleague, Judge Rodibaugh. I am pleased to note that 460, now under consideration, designates the Harry Dees, also a bankruptcy judge for the this bill passed the other body earlier recently dedicated courthouse on the corner of Northern District of Indiana: ``Judge Rodibaugh this year, and we can safely say that Western and South Michigan Streets in South never complained about all the weekly trav- the third time is the charm. Bend, Indiana in honor of Judge Rodibaugh eling, he just did it.'' I support this act and urge my col- and his numerous contributions to the legal Moreover, Judge Rodibaugh has fulfilled his leagues to support it as well. community. duties as a bankruptcy judge with patience, Mr. Speaker, I reserve the balance of Last year, I also had the privilege to attend fairness, dedication and legal scholarship my time. the dedication ceremony for the ``Robert K. which is most worthy of recognition. His high Mr. SHOWS. Mr. Speaker, I yield my- Rodibaugh United States Bankruptcy Court- standards have benefitted the many law clerks self such time as I may consume. house.'' While this courthouse has already and judicial personnel who have served under Mr. Speaker, I join in supporting S. been dedicated, I believe that S. 460 is an ap- his tutelage, the lawyers who have practiced 460, a bill to designate the Federal propriate way to express our gratitude for before the bankruptcy court, as well as the bankruptcy court in South Bend, Indi- Judge Rodibaugh's life-long dedication to pub- citizens residing in the Northern District of In- ana, as the ‘‘Robert K. Rodibaugh lic service. diana. United States Bankruptcy Court- Judge Rodibaugh is recognized by his com- In 1985, Judge Rodibaugh was appointed house.’’ munity and his peers as an honorable man Chief Judge of the U.S. Bankruptcy Court for As my colleagues all know, the gen- worthy of such a tribute. He is highly regarded the Northern District of Indiana. He served in tleman from Indiana (Mr. ROEMER) in- throughout the entire country and has been a that position until he assumed full-time recall troduced an identical bill in the 104th pillar of the community. Moreover, he is great- status as a senior judge one year later. Today, and 105th Congress. Unfortunately, the ly respected by other judges and the bank- Judge Rodibaugh continues in this position, Senate did not consider these measures ruptcy bar in Northern Indiana. Since his initial carrying a full case load, and he has no plans before it adjourned. appointment as a referee in bankruptcy in No- to cut back on his work with the court. Cur- Judge Rodibaugh has served the citi- vember 1960 and throughout his legal career rently, Judge Rodibaugh and his wife, Eunice, zens of Indiana with honor and distinc- as a bankruptcy judge, Judge Rodibaugh has live in South Bend, Indiana. tion since 1960 and at the age of 80 served the citizens and legal community of the Mr. Speaker, it is important for me to indi- years is one of the Nation’s most senior Northern District of Indiana wisely, efficiently, cate that the firm of Panzica Development judges. and honorably. Company with Western Avenue Properties, Judge Rodibaugh is a native of Elk- A native of Elkhart County, Indiana, Judge LLC, graciously agreed to name the new pri- hart County, Indiana, and received his Rodibaugh graduated from the University of vately-owned courthouse building in Judge education in the public schools. He Notre Dame with a Bachelor of Science de- Rodibaugh's honor, owing to his unblemished graduated from Notre Dame and re- gree in 1940 and attended the University of character and numerous professional achieve- ceived his law degree from Notre Dame Notre Dame Law School, where he served as ments in the bankruptcy field. in 1941. the Associate Editor of the Notre Dame Law I am confident that the ``Robert K. During his judicial career, he has Review between 1940 and 1941. Rodibaugh United States Bankruptcy Court- seen the rapid growth of the bank- Judge Rodibaugh received his Juris Doctor house'' is an appropriate title for the new ruptcy courts. He has seen the courts degree in 1941. After gaining his admittance bankruptcy court facility. Judge Radibaugh is a grow from one small courtroom with a to practice law in 1941, Judge Rodibaugh en- shining example of the importance of public part-time referee and a clerk’s office tered active duty as a private in the United service, whose tireless contributions provide H2594 CONGRESSIONAL RECORD — HOUSE May 4, 1999 an invaluable service to our community. I am longitude of various key aids to navi- J.J. ‘‘JAKE’’ PICKLE FEDERAL confident that Judge Rodibaugh will continue gation that were misidentified on offi- BUILDING to play a constructive and important role in our cial charts at that time. Mr. FRANKS of New Jersey. Mr. community, and will continue to serve as a Following the war, Mr. Saunders re- Speaker, I move to suspend the rules powerful inspiration to all of those who come turned to a civil engineering position and pass the bill (H.R. 118) to designate into contact with him. with the Federal Government. In this the Federal building located at 300 East Mr. SHOWS. Mr. Speaker, I have no position, he supervised several public 8th Street in Austin, Texas, as the further requests for time, and I yield works projects, completing the projects ‘‘J.J. ‘Jake’ Pickle Federal Building’’. back the balance of my time. on schedule and within budget. The Clerk read as follows: Mr. FRANKS of New Jersey. Mr. In 1966, prior to his retirement, Mr. H.R. 118 Speaker, I yield back the balance of Saunders successfully completed his Be it enacted by the Senate and House of Rep- my time. final Federal construction project, the The SPEAKER pro tempore. The resentatives of the United States of America in Juneau Federal Building, Post Office Congress assembled, question is on the motion offered by and United States Courthouse, which is SECTION 1. DESIGNATION. the gentleman from New Jersey (Mr. the building we designate in his honor The Federal building located at 300 East FRANKS) that the House suspend the today. 8th Street in Austin, Texas, shall be known rules and pass the Senate bill, S. 460. This is a fitting tribute to a dedi- and designated as the ‘‘J.J. ‘Jake’ Pickle The question was taken; and (two- cated public servant. I support this act. Federal Building’’. thirds having voted in favor thereof) I urge my colleagues to support it as SEC. 2. REFERENCES. the rules were suspended and the Sen- well. Any reference in a law, map, regulation, ate bill was passed. document, paper, or other record of the A motion to reconsider was laid on Mr. Speaker, I reserve the balance of United States to the Federal building re- the table. my time. ferred to in section 1 shall be deemed to be f Mr. SHOWS. Mr. Speaker, I yield my- a reference to the ‘‘J.J. ‘Jake’ Pickle Federal self such time as I may consume. Building’’. HURFF A. SAUNDERS FEDERAL Mr. Speaker, Senate bill 453 is a bill The SPEAKER pro tempore. Pursu- BUILDING to designate the Federal building in ant to the rule, the gentleman from Mr. FRANKS of New Jersey. Mr. Juneau, Alaska in honor of Hurff A. New Jersey (Mr. FRANKS) and the gen- Speaker, I move to suspend the rules Saunders. Mr. Saunders was a lifelong tleman from Mississippi (Mr. SHOWS) and pass the Senate bill (S. 453) to des- Alaskan who helped write chapters of each will control 20 minutes. ignate the Federal building located at Alaska’s history. The Chair recognizes the gentleman 709 West 9th Street in Juneau, Alaska, He was a civil engineer for the United from New Jersey (Mr. FRANKS). as the ‘‘Hurff A. Saunders Federal States Coast Guard in charge of con- Mr. FRANKS of New Jersey. Mr. Building’’. structing the Juneau Federal Building Speaker, I yield myself such time as I The Clerk read as follows: which was completed on budget and on may consume. S. 453 schedule. Mr. Saunders later supervised Mr. Speaker, H.R. 118 designates the Be it enacted by the Senate and House of Rep- many public works projects for the ter- Federal building in Austin, Texas, as resentatives of the United States of America in ritory and later the State of Alaska. the ‘‘J.J. ‘Jake’ Pickle Federal Build- Congress assembled, His work on correcting the naviga- ing.’’ SECTION 1. DESIGNATION OF HURFF A. SAUN- tional charts for the waters in south- Congressman Pickle began his long DERS FEDERAL BUILDING. 1 east Alaska aided the Navy and the career in public service by serving 3 ⁄2 The Federal building located at 709 West Coast Guard during World War II. years with the United States Navy in 9th Street in Juneau, Alaska, shall be known the Pacific during World War II. Fol- and designated as the ‘‘Hurff A. Saunders Mr. Saunders was widely respected Federal Building’’. and viewed as a dedicated public serv- lowing the war, Congressman Pickle returned to Austin, Texas, and held po- SEC. 2. REFERENCES. ant, a devoted father, and beloved hus- Any reference in a law, map, regulation, band who lived a full life and died sitions in the private and public sec- document, paper, or other record of the peacefully at the age of 94. tors. He served his party ably as execu- United States to the Federal building re- Mr. Speaker, the City of Juneau and tive director of the Texas State Demo- ferred to in section 1 shall be deemed to be the Juneau Rotary Club both passed cratic Party. a reference to the ‘‘Hurff A. Saunders Fed- unanimous resolutions supporting this In 1963, he was elected to the United eral Building’’. designation. Also, the American Soci- States House of Representatives in a The SPEAKER pro tempore. Pursu- ety of Civil Engineers and the Society special election to fill a vacant seat ant to the rule, the gentleman from of Professional Engineers adopted reso- created by Congressman Thornberry’s New Jersey (Mr. FRANKS) and the gen- lutions urging this distinction be be- resignation. He was then reelected to tleman from Mississippi (Mr. Shows) stowed upon Mr. Saunders. the next 15 succeeding Congresses, each will control 20 minutes. It is fitting and in recognition of his until his retirement on January 3, 1995. The Chair recognizes the gentleman outstanding contributions to Alaskan b 1815 from New Jersey (Mr. FRANKS). life that the Federal building in Ju- Mr. FRANKS of New Jersey. Mr. During his tenure in Congress, Con- neau, Alaska, be designated the Hurff Speaker, I yield myself such time as I gressman Pickle provided a strong A. Saunders Federal Building. may consume. voice on civil rights issues. He vigor- Mr. Speaker, S. 453 designates the Mr. SHOWS. Mr. Speaker, I yield ously advocated and supported such Federal building in Juneau, Alaska as back the balance of my time. historic legislation as the Civil Rights the ‘‘Hurff A. Saunders Federal Build- Mr. FRANKS of New Jersey. Mr. Act of 1964 and the Voting Rights Act. ing.’’ Speaker, I have no further requests for For over 30 years Congressman Pickle Hurff A. Saunders was a resident of time, and I yield back the balance of continuously worked on behalf of civil Alaska who played an instrumental my time. rights issues and equal opportunities role in the State’s history both as a The SPEAKER pro tempore. The for women and minorities. territory and as a State. Prior to World question is on the motion offered by In addition, as chair of the Com- War II, he emigrated from South Da- the gentleman from New Jersey (Mr. mittee on Ways and Means’ Sub- kota to Ketchikan, Alaska, where he FRANKS) that the House suspend the committee on Oversight and the Sub- accepted a civilian engineering posi- rules and pass the Senate bill, S. 453. committee on Social Security, he tion with the United States Coast The question was taken; and (two- worked to shape the system of Medi- Guard. During the war he played a crit- thirds having voted in favor thereof) care to assure that it fulfilled its in- ical role in the ability of the United the rules were suspended and the Sen- tended purpose of providing basic States Navy and Coast Guard to navi- ate bill was passed. health care for those in need, and tire- gate the North Pacific waters by cor- A motion to reconsider was laid on lessly fought for the future of Social rectly determining the latitude and the table. Security. May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2595 Congressman Pickle was a dedicated from New Jersey and our colleague b 1845 public servant who remained close to from West Virginia for their prompt So it is now that ‘‘onward through his Texas constituents. Thus it is fit- approval in the committee. the fog’’ in central Texas is more than ting legislation that honors him here Mr. Speaker, basically we had two a bumper sticker at Oat Willie’s. It is today. choices. We could either try to paint the center, the indication, that the Mr. Speaker, I support this bill and that Federal building pickle green, or Pickle runway along with the LBJ run- encourage my colleagues to support it we could simply put a plaque up dedi- way at that new airport are available as well. cating it as the J.J. ‘‘Jake’’ Pickle to serve our community, whatever the Mr. Speaker, I reserve the balance of Federal Building, and so the House conditions. my time. chose the more practical approach of I have to say that I will feel just a Mr. SHOWS. Mr. Speaker, I yield my- putting his name on the building. This little better going home, and perhaps self such time as I may consume. is actually legislation that this House some of my Democratic colleagues will Mr. Speaker, H.R. 118 is a bill to des- approved in the last session of Congress want to join me, knowing that when ignate a building located at 300 East last year. Unfortunately, the Senate, one lands there in Austin they either 8th Street in Austin, Texas, as the which moves a little slower sometimes, get the LBJ runway or the J.J. Jake ‘‘J.J. ‘Jake’ Pickle Federal Building.’’ they usually get an hour to speak when Pickle runway, and when they pull up It is a pleasure and an honor to support we get a minute, did not get this piece to the terminal they come into the this bill intended to honor the signifi- of legislation passed last session, and Barbara Jordan terminal. So that is a cant contributions of our dear friend, we are hoping that they will react to it pretty good place for those of us on Jake Pickle. as speedily as the House has considered this side of the aisle or either side of As we all know, Jake was a native it this afternoon. the aisle to call home, to come in and Texan and very proud of his heritage. see the capital city of the great State Let me just say a few words, and He was educated in public schools and of Texas. was graduated from the University of there are several of my colleagues from Congressman Pickle was a distin- Texas in 1938. Jake is a World War II the Texas delegation and beyond north guished veteran, distinguished former veteran, serving his country in the Pa- Texas, I believe New York State, that Student Body President of the Univer- cific arena. may want to offer comments in support sity of Texas at Austin. I do not know Jake entered politics after a special of this legislation. what it is in the water up at Big election to fill the seat of Homer Jake Pickle served central Texas for Spring, but he is well into his eighties Thornberry. Officially he began his some 31 years. I first came to know now, and he and I know a number of his service in the House in December of him as a high school senior at Austin classmates gathered there in Austin 1963. Jake immediately showed his High School where I was in class with awhile back. They seemed to have mettle and joined five other southern his daughter, Peggy, and he was elect- something good going on up there be- Members who voted in favor of Presi- ed the year that I was a senior at Aus- cause he remains a very vigorous force dent Johnson’s Civil Rights Act of 1964. tin High School. He has really been the in our community. He further demonstrated his support only Congressman who has ever served Here in the Congress, he is remem- for equal rights by voting for the Vot- our district during the time that I was bered as one of the few Members from ing Rights Act. growing up and living there in central the south who had the courage to vote Jake was a close friend of President Texas, and he along with his great wife for the Civil Rights Act of 1964, for the Johnson, and his friendship and with Beryl have served our community with Voting Rights Act; and he still is Mrs. Johnson continues strong even the greatest distinction. proud, and justly so, of the call that he today. Due to his closeness with the This is certainly not the first and received from President Johnson at 2:00 Johnson family and President John- probably not the last monument to his a.m. in the morning after that vote to son’s administration, Jake often served service. The Pickle Research Campus commend him for his courage. as a personal historian for one of the at the University of Texas is where There are many tall tales that he has greatest American Presidents. about the work on the Great Society Jake himself is best known for his much of the development that produced the success that we have had in there in the Federal building that we devotion and dedication to his con- are naming in his honor with President stituents and his extensive community central Texas with high technology had its origin through public-private Johnson, where the President had an involvement. It is with great pleasure apartment and an office that remains that I join the gentleman from Texas partnerships beginning right there at the University of Texas. During his in generally the condition that it was (Mr. DOGGETT) and others in supporting in when he left the presidency. I am this very worthwhile bill. tenure here in Congress that was a real priority of Congressman Pickle, and it confident that at least a few of those Mr. Speaker, I yield such time as he tales are true, because there was much may consume to the gentleman from is most appropriate that it should bear his name. good accomplished by these two good Texas (Mr. DOGGETT). friends and partners working together Mr. DOGGETT. Mr. Speaker, I thank And most recently, just within the not only for central Texas but for our the gentleman from Mississippi (Mr. past month, I have been participating entire country. SHOWS) for yielding this time to me, in the many dedication ceremonies at Of course, Congressman Pickle’s and of course I join in support of this the new Austin-Bergstrom Inter- service on the Committee on Ways and measure that is before the House now. national Airport. We have managed to Means, where he played a major role in But we find ourselves in the curious dedicate just about everything in that addressing both Social Security and situation this afternoon that this is airport except for some of the luggage preserving and continuing it, and Medi- one of the rare occasions, perhaps the carousels and the storage closets, but care addressed issues that we face once first since I have been a Member of this in particular and first in our dedica- again in Congress, but we are able to body, that the House has moved faster tions, we dedicated one of the new run- deal with them now because of the than we have been told on the schedule ways to Congressman Pickle because good work that he contributed over the instead of slower, and so we have actu- even after his service here in the years. ally this afternoon proceeded with the House, he continued to work on our Jake Pickle never turned down the approval of a piece of legislation in Airport Advisory Committee to ensure chance to help a neighbor, and that is which I am most interested that will that this airport was completed and perhaps his greatest legacy, not just rename our Federal Building in Austin, that it had an all-weather runway that what he accomplished in this room but Texas, for Congressman J.J. ‘‘Jake’’ would meet the needs of our commu- his accessibility and his willingness to Pickle, my predecessor. And so I come nity not only for hauling passengers be available when people had problems with shortened remarks, hoping not to around the world, but hauling the in our community with various aspects say anything that would cause us to re- cargo that is so very important to our of the Federal bureaucracy. consider this legislation which I am technology industries there in central So naming our Federal building in most appreciative to my colleague Texas. Austin after Congressman Pickle is the H2596 CONGRESSIONAL RECORD — HOUSE May 4, 1999 most appropriate symbol of our admi- Mr. Speaker, I am pleased to once of H.R. 118 designating the J.J. Jake ration, our respect and our apprecia- again voice support for this measure Pickle Federal Building in Austin, tion for his true public service, and I honoring Jake Pickle. Jake was a Texas. This is a fitting tribute to a am hopeful that the Senate will move friend of most of us here in the Con- unique Texan and former Member of quickly on this legislation this year gress, I virtually would say all of us in Congress. I hope Jake and his wife are and speedily approve it. the Congress, when he served over 30 watching tonight in Austin, Texas. Mr. SHOWS. Mr. Speaker, I yield 2 years in great public service to our Na- Jake Pickle is a legend to me, and minutes to the gentleman from Texas tion. even by Texas standards he is a legend. (Mr. HALL). I knew Jake as an expert on Social He put himself through college during Mr. HALL of Texas. Mr. Speaker, I Security. I knew Jake as a traveler the Depression, worked for President am honored to get to say a word or so when we went overseas together and Roosevelt’s National Youth Adminis- about Jake Pickle. his good wife Beryl traveled with us. tration, served in the Pacific in World The gentleman from Texas (Mr. Jake is someone we have long missed War II and started a radio station in DOGGETT) and others have talked about in the Congress. He had a good word for central Texas, and he represented the all of his attainments, his acquisitions all of us, and I think it is highly appro- Tenth District from 1963 to 1995. and his honors. I guess I just want to priate that this building be named for He had a long, distinguished career talk about Jake Pickle, the good guy a deserving public servant. that my other colleagues have talked that I knew. about, chairman of the Subcommittee I have probably known him longer Mr. SHOWS. Mr. Speaker, I yield 2 minutes to the gentleman from Texas on Social Security of the Committee than any Member of this Congress. I on Ways and Means. At one time even have known Jake since I was about 20 (Mr. GONZALEZ). Mr. GONZALEZ. Mr. Speaker, it is with the famous Claude Pepper, Jake years old. I am 75 years old, and Jake Pickle won out on the Social Security would say that he is much younger my own honor to rise and offer these remarks in support of the measure that reform bill with Claude Pepper. than I am. Mr. Speaker, Jake has a book just People are proud of him all the way would name the Federal building in Austin, Texas, after former Represent- simply called ‘‘Jake,’’ and a couple of from Roscoe, Texas, where he was born years ago on Father’s Day my daughter out in far west Texas, Big Spring, Aus- ative Jake Pickle. As many that are gathered here to- was a student at the University of tin. He knows everybody. Everybody Texas and she went over and had Jake knows Jake. There was no better Mem- night know that my father served in this Congress for 37 years and, of sign his book for me. And Jake talked ber of Congress, no one more persua- to my daughter, and she has now grad- sive, no one that could get something course, shared every one of those years, at least 31 of those years, with Jake uated, and Jake was talking about done because everybody liked Jake and some of his stories. His book is great everybody wanted to help Jake, and Pickle as his esteemed colleague. on stories about Congress. I am just Jake knew everybody in the world. We will hear stories often expressed going to tell one of them because it is Allan Shivers, John Connally, of by Jake Pickle and my father regard- course, LBJ, Joe Kilgore, all the moving the many rides they would take a great story. Jake is known for his storytelling ers and shakers. Jake was a close per- back to their district on Air Force One abilities, and anybody who wants to sonal friend of theirs, and they felt a when LBJ was the President. They will read some great stories needs to look brotherly feeling, and people in this always talk about the Civil Rights Act up that book at the Library of Con- Congress felt like Jake was a brother and the great vote of 1964 and the 2:00 gress and ask for ‘‘Jake.’’ It would to them because he loved them and a.m. phone call that President Johnson probably make him happy if we even they loved him. made to Jake Pickle, which is an inter- I just know of no public servant that bought it. esting story in and of itself. The real Jake served so many years, and in has been any better than Jake. I first story, though, lies in the phone calls knew him when he was in a PR firm one of the chapters in his book, chapter that both my father and Jake Pickle 35, there is a great story that, in 1957 or there in Austin, a young man, hand- received from LBJ before the vote. some, of course, and part of the Lyndon 1958, Governor Price Daniel and Jake Jake Pickle is an extraordinary man, were in El Paso attending the State Johnson team from the word go. They and I have had the great privilege of have had great Members of Congress to Democratic Executive Committee. At knowing him since I was a teenager. the time, the State of Chihuahua and serve Travis County and the area When I went to college in Austin and around: LBJ, Homer Thornberry, Jake Texas were instigating a program to Jake Pickle was back in the district, eradicate the yellow boll weevil. So the Pickle, the gentleman from Texas (Mr. he would come to the State capital DOGGETT) doing a superb job of rep- Governor was in El Paso to officially where many of the students would give credence to the boll weevil eradi- resenting that area today. work. And he would come in there and Jake was always the same. That is cation program as well. he would mentor us and he would coun- what I liked about him. He was always Their party stayed in El Paso, but sel us. the same. He was always cordial. He they went across the border to Juarez. He is a great man in many, many re- was always smiling. He always knew In Juarez, there was a good band and a spects, not just a great representative everyone, and he was always persua- floor show. So the manager looked but everything that we should aspire to sive. around and he had heard the governor He could have a bill that he had in- as public officials. He is the kind of in- of Texas was in the party but he wished troduced, moving something out of dividual that will take the time, from no publicity. The governor did not someone else’s district that they liked the busiest of schedules, and do it the want it known, this was in the 1950s, into Travis County and he was so per- old way and that is to sit with the per- that he was in a bar in Mexico, particu- suasive he could make them think it son, to meet with them, to listen, to larly since most of Texas was dry then, helped them more than it did him. understand them and then give good, particularly the part Governor Daniel That was the Jake Pickle I knew and sage counsel and advice. was from in east Texas. loved. I wish him the best, I wish Beryl To Jake Pickle, I think it would be When their group arrived at the bar, the best because they are the best. God the greatest honor but truly it would they were seated at a long table near bless this couple and God bless this oc- be something that would remind us the band. Governor Daniel was a Bap- casion for Jake Pickle. every day of what public service is all tist and a teetotaler, and he never Mr. FRANKS of New Jersey. Mr. about. drank, but he liked Cokes. And every Speaker, I yield 2 minutes to the gen- Mr. SHOWS. Mr. Speaker, I yield 3 once in awhile he would say well, Jake, tleman from New York (Mr. GILMAN). minutes to the gentleman from Texas I will take a Coke. (Mr. GILMAN asked and was given (Mr. GREEN). Jake said he would go up to the bar- permission to revise and extend his re- (Mr. GREEN of Texas asked and was tender and ask the bartender to go marks.) given permission to revise and extend ahead and put a shot of bourbon in it. Mr. GILMAN. Mr. Speaker, I thank his remarks.) He always asked for Cokes. the gentleman from New Jersey (Mr. Mr. GREEN of Texas. Mr. Speaker, I Anyway, the funny part of the story FRANKS) for yielding me this time. am honored tonight to stand in support is that everything went fine for a few May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2597 minutes and the band having played Most everyone knows Jake Pickle as a polit- could be better named if it were named some lively tunes from Mexico sud- ical protege of President Lyndon B. Johnson. the J.J. Jake and Beryl Pickle Build- denly stopped and they had a drum Congressman Pickle was a campaign man- ing, because so many times those of us roll. The governor looked around and ager and a Congressional aide to Johnson be- recognize our spouses do not nearly get looked at Jake and the band leader fore World War II and an advisor in Johnson's the credit that they deserve when we then announced on the mike, we are 1948 Senate campaign. Jake always speak get honored in ways in which we honor proud to have with us tonight the gov- reverently about President Johnson and his Jake today. ernor of the State of Texas, and an- commitment and dedication is a testament to I think of the story that the gen- other drum roll, the Honorable Price their friendship. tleman from Texas (Mr. GENE GREEN) Daniel. Amid the fanfare, the light Mr. Speaker, I am proud to have served was telling, and there was no better swept the bar and came to rest on their with Congressman Jake Pickle and will be for- storyteller to ever occupy a seat in this table, and nobody moved. ever grateful for his friendship and his leader- House. He was great at it. Obviously, the governor did not want ship. This designation is only a small token of But all of the times that Beryl lis- to stand up and be recognized in that our appreciation to a dedicated public servant. tened to those stories, which were re- bar in Mexico. Again, the announcer Mr. FRANKS of New Jersey. Mr. peated not one, ten, one hundred, but announced, damas y caballeros, an- Speaker, I yield 1 minute to the gen- for the thousandth time, and still other drum roll and still no movement tleman from Texas (Mr. EDWARDS). laugh when her husband told that joke, from Governor Daniel. Mr. EDWARDS. Mr. Speaker, I want I think Beryl ought to be somewhere in With the spotlight still on us the to thank the gentleman from New Jer- the name of this building. I know she third time, the announcer said, please, sey (Mr. FRANKS) for graciously giving will be in spirit by those of us who will the governor of Texas stand and be me this moment to speak. knew and loved her as well as Jake recognized. Finally, the governor’s Mr. Speaker, I love Jake Pickle. He Pickle. wife, Jean, leaned over and whispered, is a man of courage, a man of compas- Jake was born in my district. There- Jake, for goodness’ sakes, will you do sion, and someone who loves life, every fore, I have always had to take some- it? day of it. what responsibility for the actions that The governor said, Jake, I bet you al- He was a man of compassion as a Jake has taken, and I have done it ways wanted to be governor. Now here freshman Member of this House when, proudly. is your chance. in 1965, as a young southern representa- Mr. SHOWS. Mr. Speaker, I yield 1 So Jake Pickle stood up in that bar tive he voted in favor of the Civil minute to the gentlewoman from Texas in Juarez and was recognized as the Rights Act, an act that made major (Ms. JACKSON-LEE). governor of Texas, and the band struck changes in allowing equal opportunity Mr. FRANKS of New Jersey. Mr. up ‘‘The Eyes of Texas.’’ for American citizens of all colors. Speaker, I am happy to yield 1 minute That is just one of Jake’s stories. Ob- He was a man of compassion in ev- to the gentlewoman from Texas (Ms. viously, we miss him from Texas and erything he did, especially in his lead- JACKSON-LEE). all over Congress. He was a great Mem- ership and saving the Social Security The SPEAKER pro tempore (Mr. ber. system back in the 1980s. We could all DUNCAN). The gentlewoman from Texas Mr. Speaker, I rise in strong support of H.R. talk about the many accomplishments (Ms. JACKSON-LEE) is recognized for 2 118, designating the J.J. ``Jake'' Pickle Fed- of Jake Pickle but, frankly, the reason minutes. eral Building in Austin, Texas. This is a fitting I love Jake Pickle, in addition to re- Ms. JACKSON-LEE of Texas. Mr. tribute to a unique Texan and former Member specting him for his legislative accom- Speaker, I thank the gentleman from of Congress. plishments, is because he personifies Mississippi (Mr. SHOWS) and the gen- Congressman Pickle is a legend even by the biblical passage of, this is the day tleman from New Jersey (Mr. FRANKS) Texas standards. He put himself through col- the Lord hath made. Let us rejoice and for yielding time to me, and for guiding lege during the Depression, worked for Presi- be glad in it. us through a very welcomed event this dent Roosevelt's National Youth Administra- Jake Pickle brought light into any evening, and that is to properly give tion, served in the Pacific during World War II, room, into anyplace where he came. He recognition to J.J. Jake Pickle, and of started a radio station in Central Texas, and loves life and we love him. We miss Mr. course, his wife, Beryl. They are Texas represented Texas' Tenth Congressional Dis- Pickle of Texas, our dear friend. heroes, both of them, and today I hope trict from 1963 to 1995. During his long and Mr. FRANKS of New Jersey. Mr. with the naming of this Federal Build- distinguished career in the Congress, Jake Speaker, I am pleased to yield 2 mining that it will be forever grounded in Pickle prided himself as a protector of small utes to our colleague, the gentleman our memories that they are American businesses and a specialist in the Social Se- from Texas (Mr. STENHOLM). heroes as well, both. curity system. Mr. STENHOLM. Mr. Speaker, I I have great pleasure in acknowl- Over the years, Congressman Pickle man- thank the gentleman for yielding time edging the leadership of Jake Pickle. I aged to involve himself in every major issue to me. I appreciate my colleague bring- was talking to my colleague, the gen- that confronted the Ways and Means Com- ing this up and naming the Federal tleman from Texas (Mr. CHARLIE STEN- mittee, from Social Security to trade to the Building after J.J. Jake Pickle, a very HOLM), and I was trying to claim the complete revision of the Tax Code. appropriate honor for a man serving on fact that I had served with Jake Pick- During the 98th Congress, Jake Pickle the Committee on Ways and Means, le, I guess because I viewed him as such chaired the Ways and Means Social Security and I think that all of his colleagues on an historic but as well such an institu- Subcommittee. As chairman of that sub- both sides of the aisle would agree with tional person with such great leader- committee, he was convinced that the way to me when I say that there have been ship. save the Social Security system from a long- very few Members that have ever taken I was trying to claim having been term collapse was to raise the retirement age. their job more diligently, more seri- here with him, but he retired in 1994 Democratic leaders, including Thomas P. ously, in looking at the questions from and I came to this Congress in 1995. But O'Neill and Claude Pepper, wanted to solve social security reform to any tax bill we can be assured that Jake Pickle’s long-term financing problems with eventual in- that has ever come before us. legacy, his smile, his genuineness, his creases in the payroll tax. Few expected Pick- He also was a man of responsibility. gentlemanliness was here on the prem- le would prevail on the floor, but he did. One thing that I noted, and we try to ises. In fact, I think the reason why I Through months of argument over what to emulate but cannot come close to thought I served with him is because do about Social Security, Pickle and Pepper Jake, when he says he is going to be at right after he retired from this Con- were the spokesmen for two diametrically op- a dinner party for the Texas delegation gress, he spent a lot of time with us. I posite points of view. During floor consider- or any other place, he is always there. enjoyed lunching with him and, again, ation, the House chose Jake Pickle's ap- Very seldom did he ever miss. When he hearing some of the stories. proach, which later became law. This victory said he was coming, he came. But Jake Pickle, the man, is some- represents the culmination of a long personal I think one appropriate remark that one that I admire, in particular be- struggle for Jake Pickle to put the Social Se- I have not heard, maybe it has been cause he served 31 years and he served curity system on a sound personal footing. mentioned, but to me, this building with a commitment to this country. He H2598 CONGRESSIONAL RECORD — HOUSE May 4, 1999 was someone, as the chair of the power- Ms. EDDIE BERNICE JOHNSON of Texas. waste and fraud, constantly laboring on behalf ful Subcommittee on Oversight of the Mr. Speaker, I rise in support of H.R. 118, leg- of those who rely on the Medicare system for Committee on Ways and Means, that islation that would name the federal building in their basic health care. cared about a good Medicare system, a Austin, Texas in honor of former Representa- In addition, former Congressman Pickle good health care system, and worked tive Jake Pickle. served as Chairman of the Social Security hard to guarantee all Americans re- The building is located at 300 East 8th Subcommittee in the 98th Congress and is ceive basic health care. As chairman of Street in Austin. It houses district offices for widely credited with shepherding through Con- the Subcommittee on Social Security, Congressman Pickle's successor, Representa- gress a legislative package that has extended his work is credited with extending the tive LLOYD DOGGETT, and Senator KAY BAILEY the life of the Social Security system by dec- life of the social security system. HUTCHISON, as well as local offices for the ades. His work on behalf of the poor and the I remember him telling me of his IRS, FBI and other federal agencies. elderly complements perfectly his long-time friendship with the Honorable Barbara It is all together appropriate that these of- commitment to civil rights. Jordan, one of the predecessors of this fices be named for Representative Pickle Based on his long service to Texas and the particular congressional district, the since they are where he worked for 28 of his nation, I believe H.R. 118 is a fitting tribute to Eighteenth Congressional District. I 31 years in Congress. Representative Pickle's legacy. I urge all guess I remember him most by looking For those of us fortunate enough to know Members to support its passage. at a picture of the signing of the 1964 him, former Representative Pickle is a very Mr. DUNCAN. Mr. Speaker, it was an honor Civil Rights Act, and saw a number of skilled storyteller and a man steeped in Texas to preside over the House during the consider- Texans who were Congresspersons at and U.S. history. One can not speak with him ation of a bill naming a Federal building in that time gather in the room with for any amount time without departing having Austin, TX, after Congressman J.J. (Jake) President Lyndon Baines Johnson to heard one of his ``yarns'' about the legislative Pickle. Congressman Pickle served in the House sign that historic act. process or his work with President Johnson. But I am most mindful of the time James Jarrell ``Jake'' Pickle was born in for more than 31 years. For 30 of those years that that occurred and the courage 1913 in Big Spring, a small town in the north- he served with either my father or me. In their service on the Ways and Means that was taken. I heard my colleague west part of Texas represented today by Con- Committee, he and my father became the from Texas make a statement about gressman CHARLIE STENHOLM. He is a product his father, Henry Gonzalez. But I am closest of friends. of the Big Spring public schools and the Uni- I remember being told that on the plane re- reminded about the courage of Jake versity of Texas at Austin, where he received Pickle to sign the Civil Rights Act of turning from my father's funeral in Louisville, his BA in 1938. Congressman Pickle led the plane's pas- 1964, and to give opportunities to those After working as Area Director for President who did not have them. He was coura- sengers in singing some old-time hymns. Roosevelt's National Youth Administration, In fact Congressman Pickle was famous geous in that, he was courageous in his 1 Jake served 3 ¤2 years in the navy in the Pa- service. Mr. Speaker, he is truly a within the Congress for the stories he used to cific during World War II. Upon returning to tell about the hymns sung at the Thursday great Texan and truly a great Amer- Austin, he entered the radio and public rela- ican. This building will truly be a very morning House prayer breakfasts. Some peo- tions business, later serving as director of the ple wondered if the stories were totally accu- historic building by being named after Texas State Democratic Executive Committee J.J. Jake Pickle, H.R. 118. I ask my rate or were, at least in part, made up by Con- and as an appointee to the Texas Employ- gressman Pickle as he went along. colleagues for support. ment Commission. He resigned from the TEC Mr. Speaker, I rise in strong support of H.R. At any rate, Congressman Jake Pickle was to run for Congress in a special election called a great and dedicated Member of the House. 118. This bill designates a federal building in after the resignation of Homer Thornberry. He Austin, Texas as the ``J.J. Jake Pickle Federal His love for others and for this institution began his Congressional career in December, Building.'' It is fitting, Mr. Speaker, that the shown through in everything he did. 1963. I join my colleagues in supporting this bill, a building in which he worked for 28 of his 31 Congressman Pickle wasted little time in very fitting tribute to a very kind man and years in Congress, bear his name. demonstrating what sort of Member of Con- It is an appropriate memorial to a man who great American, Congressman Jake Pickle. gress he intended to be. Despite well-founded Mr. SHOWS. Mr. Speaker, I have no dedicated himself to his community and to his fears that his actions might end his fledgling other speakers, and I yield back the constituents. The residents of Austin remem- balance of my time. ber Representative Pickle for his tireless dedi- political career, Representative Pickle joined only five other Southern members who voted Mr. FRANKS of New Jersey. Mr. cation to the community he loved. When Speaker, I yield back the balance of asked to describe his career as a Member of in favor of Lyndon Johnson's Civil Rights Act in 1964. Looking back on it, Representative my time. Congress, all sight his effective and efficient The SPEAKER pro tempore (Mr. constituent service. I know that Representative Pickle says that is the one vote of which he is most proud and recalls with great fondness DUNCAN). The question is on the mo- Pickle gave selflessly of his time and energy. tion offered by the gentleman from His 31-year career stands as a memorial to a personal phone call at 2:00 a.m. after the vote from President Johnson to thank him. New Jersey (Mr. FRANKS) that the current and future Members, on how to con- House suspend the rules and pass the duct constituent relations. Jake followed this vote a few months later with a vote in support of the Voting Rights Act and bill, H.R. 118. During his 31-year tenure Congressmen The question was taken; and (two- then spent the next 30 years working on be- Pickle took on several legislative challenges. thirds having voted in favor thereof) half of civil rights and equal opportunity for mi- In spite of the political risk he voted in favor the rules were suspended and the bill norities and women. of the Civil Rights Act of 1964. This vote was was passed. This was not the first or last time Represent- to be the first in the line of a career dedicated A motion to reconsider was laid on ative Pickle faced the challenge of being the to ensuring civil rights and equal opportunity the table. President's Congressman. He was a close for both minorities and women. f As chair of the powerful Ways and Means friend and ally of both President Johnson and Oversight Subcommittee, Congressmen Pickle Lady Bird Johnson. His friendship with the JOSE V. TOLEDO UNITED STATES recognized the value of the Medicare system. former First Lady remains strong to this day. POST OFFICE AND COURTHOUSE He worked to guarantee that all Americans Naming this federal building in Jake's honor Mr. FRANKS of New Jersey. Mr. would receive basic health care. As Chairman is particularly appropriate because it houses Speaker, I move to suspend the rules of the Social Security Subcommittee his work his friend LBJ's apartment and office suite, and pass the bill (H.R. 560) to designate is credited with extending the life of the Social preserved in all its early 1970's splendor. the Federal building located at 300 Security system. Jake's stories of working with Johnson on the Recinto Sur Street in Old San Juan, Mr. Speaker, it is clear from his 31-year ca- Great Society, often in these rooms, are the Puerto Rico, as the ‘‘Jose V. Toledo reer in congress, his selfless dedication to his stuff of Texas political legend. Jake stands as United States Post Office and Court- country and to the State of Texas, that the one of the few remaining personal historians house,’’ as amended. federal building in Austin should bear his of one of the greatest American Presidents. The Clerk read as follows: name. J.J. ``Jake'' Pickle has set a proper ex- Representative Pickle also distinguished H.R. 560 ample for this body to emulate and as testi- himself as Chairman of the Ways and Means Be it enacted by the Senate and House of Rep- mony to that example I urge my colleagues to Oversight Subcommittee. From that post, Jake resentatives of the United States of America in support this bill. worked tirelessly to rid the Medicare system of Congress assembled, May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2599 SECTION 1. DESIGNATION. and colleagues to describe him. Judge Assistant United States Attorney. He The Federal building and United States Toledo was born in Puerto Rico in 1931. was a partner in several law firms, one courthouse located at the intersection of He received his Bachelor’s Degree from of which he and I and another fellow Comercio and San Justo Streets, in San the University of Florida and his law started, and an attorney within the Juan, Puerto Rico, shall be known and designated as the ‘‘Jose´ V. Toledo Federal degree from the University of Puerto local government of Puerto Rico. He Building and United States Courthouse’’. Rico Law School. also served in the U.S. Army as a mem- SEC. 2. REFERENCES. In addition to private practice, Judge ber of the Judge Advocate General Any reference in a law, map, regulation, Toledo served as an Assistant United Corps. Judge Toledo was also a distin- document, paper, or other record of the States Attorney and in the local gov- guished leader of the Exchange Clubs of United States to the Federal building and ernment of Puerto Rico. Judge Toledo Puerto Rico. He demonstrated his United States courthouse referred to in sec- also served in the U.S. Army as a mem- value to the organization through his tion 1 shall be deemed to be a reference to ber of the Judge Advocate Corps. involvement and commitment at both the ‘‘Jose´ V. Toledo Federal Building and The building in old San Juan to bear the local and the national levels. United States Courthouse’’. Judge Toledo’s name is an imposing As expressed by the Chief Judge of The SPEAKER pro tempore. Pursu- structure, signifying solidarity and the U.S. District Court in Puerto Rico, ant to the rule, the gentleman from safety, and has guarded the entrance to the Honorable Carmen Consuelo New Jersey (Mr. FRANKS) and the gen- Old San Juan for more than 300 years. Cerezo, on behalf of the judges of the It is fitting and proper this building tleman from Mississippi (Mr. SHOWS) Federal Court of Puerto Rico, Judge then bear the name of Judge Jose V. each will control 20 minutes. Jose V. Toledo earned the respect of Toledo, and I am proud and pleased to The Chair recognizes the gentleman the public, the bar and the bench for support this legislation. from New Jersey (Mr. FRANKS). his patience, impartiality, fairness and Mr. FRANKS of New Jersey. Mr. Mr. FRANKS of New Jersey. Mr. decorum in the adjudication of the con- Speaker, I yield myself such time as I Speaker, I reserve the balance of my troversies brought before him. Judge may consume. time. Toledo set high standards for himself, Mr. Speaker, H.R. 560, as amended, Mr. SHOWS. Mr. Speaker, I yield yet he had a refreshing humility and designates the Federal Building and such time as he may consume to the capacity to understand the problems of United States Courthouse in Old San gentleman from Puerto Rico (Mr. RO- others. His hallmarks were learning Juan, Puerto Rico, as the ‘‘Jose V. To- MERO-BARCELO´ ), the sponsor of H.R. 560. ´ and wisdom, tempered by a tremendous ledo Federal Building and United Mr. ROMERO-BARCELO. Mr. Speak- feeling for people. States Courthouse.’’ er, I would like to thank the gentleman Jose Toledo was born in Arecibo, from New Jersey (Mr. FRANKS), and the The U.S. Post Office and Courthouse Puerto Rico. He received a Bachelor of ranking member, the gentleman from in Old San Juan, built in 1914, stands Arts degree from the University of West Virginia (Mr. WISE), as well as the above the foundations of the ancient Florida and a Juris Doctor in law from gentleman from Pennsylvania (Mr. city wall that has guarded the harbor the University of Puerto Rico Law SHUSTER) and the ranking member, the entrance to the city for more than 300 School. Judge Toledo served on the gentleman from Minnesota (Mr. OBER- years. As a matter of fact, San Juan is Federal bench in the United States Dis- STAR) for pushing this bill through the the oldest city under the American trict Court, District of Puerto Rico, committee and getting it on the floor flag. for consideration today, and I would from December 1, 1970 until February Built only 15 years after Puerto Rico like to commend the clerk for his ex- 1980, when he died in office at the age became a U.S. territory, it is listed in cellent Spanish accent. Very few peo- of 49. At the time of his death, Judge the National Register with the U.S. De- ple here pronounce those words the Toledo was the chief judge for the partment of Interior’s National Park same. Service. The site represents the eclec- Puerto Rico District. Mr. Speaker, in recognition of the Prior to his appointment to the Fed- ticism of American architecture of the outstanding service of the late Judge late 19th and early 20th century as it eral bench, Judge Toledo served as an Jose V. Toledo, today I am asking all Assistant United States Attorney, as a integrates American-Spanish Revival of my colleagues to support this bill to architecture, Sullivanesque and Beaux lawyer in local government in Puerto designate the United States Post Office Rico, as a partner in private law prac- Arts Neoclassical Revival styles. It has and the Courthouse in Old San Juan, a 6-story annex which was built in 1940. tice, and served in the United States Puerto Rico, as the ‘‘Jose V. Toledo Army as a member of the Judge Advo- It also demonstrates influences from United States Post Office and Court- the Vienna School and the Avant cate Corps. This legislation is a fitting house.’’ Judge Toledo served on the tribute to honor the career and judicial Garde movement. The Correo, as it has United States District Court for the been known to generations of Puerto contributions of the late Judge Jose V. District of Puerto Rico from December Toledo. Ricans, is an imposing and beautiful of 1970 to February 1980, when he died structure which has stood magnifi- Mr. Speaker, I support this bill, and at the early age of 49. He rose to the I encourage my colleagues to support it cently within the old city walls as a position of Chief Judge of the U.S. Dis- symbol of greatness in times past with as well. trict Court, and he served with great Mr. Speaker I reserve the balance of the importance of the U.S. Postal Serv- distinction in that capacity until the ice in Puerto Rico. my time. moment of his untimely death. Mr. SHOWS. Mr. Speaker, I yield my- Pepe Toledo, as he was known to his It is fitting that this structure so self such time as I may consume. family and friends, was regarded as a dear to us should carry the name of Mr. Speaker, H.R. 560 is a bill to man of paramount integrity and a Judge Jose V. Toledo. The judges of the name the Federal facility in Old San loyal public servant. He was born on United States District Court, District Juan as the ‘‘Jose V. Toledo United August 14, 1931, in Arecibo, Puerto of Puerto Rico, voted unanimously to States Post Office and Courthouse.’’ Rico, and he received his Bachelor of recommend the naming of the Federal The gentleman from Puerto Rico (Mr. Arts degree from the University of Courthouse in Old San Juan, Puerto ROMERO-BARCELO´ ) introduced this bill Florida in 1952. In 1956, he received his Rico, in honor of Jose V. Toledo, rein February of 1999 and is to be com- Juris Doctor from the University of ferred to the late judge as a learned ju- mended for his diligence in ensuring its Puerto Rico Law School, where I had rist, outstanding citizen and an excel- passage. the good fortune and the privilege of lent human being. Judge Toledo served the District of studying and graduating with him. Mr. Speaker, I am immensely proud Puerto Rico with great distinction During our law school years we became to honor his memory and with this bill from 1970 to February 1980, when he very close friends and studied together to designate the U.S. Post Office and died an untimely death at the age of 49 for our bar exams, and that close Courthouse in Old San Juan, Puerto years. friendship lasted until his premature Rico, as the ‘‘Jose V. Toledo United Integrity, loyalty, patience, fairness, death. States Post Office and Courthouse.’’ keen intellect and perseverance are Prior to his appointment to the Fed- Mr. SHOWS. Mr. Speaker, I yield words used by Judge Toledo’s friends eral bench, Judge Toledo served as the back the balance of my time. H2600 CONGRESSIONAL RECORD — HOUSE May 4, 1999 Mr. FRANKS of New Jersey. Mr. pointed by President Carter to the His record of public service includes Speaker, I yield back the balance of United States Court of Appeals for the work with the Rotary Club, the Latin my time. Fifth Circuit. In April of 1997 Chief Jus- American Relations Committee of The SPEAKER pro tempore. The tice William H. Rehnquist appointed Brownsville, trustees at his law school, question is on the motion offered by him Chief Judge of the Temporary the Advisory Council for the Boy the gentleman from New Jersey (Mr. Emergency Court of Appeals of the Scouts, and he was elected as City FRANKS) that the House suspend the United States. Commissioner of the city of Browns- rules and pass the bill, H.R. 560, as Judge Vela, whose career in public ville. amended. service is equally distinguished, served It is fitting and proper to honor The question was taken; and (two- in the United States Army, was the Judge Garza’s outstanding, rich life, thirds having voted in favor thereof), Commissioner for the city of Browns- his commitment to excellence, and his the rules were suspended and the bill, ville, and Judge on the 107th Judicial numerous public contributions. as amended, was passed. District, Cameron-Willacy County, Judge Filemon Vela is also a native The title was amended so as to read: Texas. of Texas and a veteran of the United ‘‘A bill to designate the Federal build- Judge Vela was a member of the Ju- States Army. He attended Texas ing and United States courthouse lo- dicial Conference Committee on the Southmost College and the University cated at the intersection of Comercio Administration of the Magistrate of Texas. His law degree is from St. and San Justo Streets, in San Juan, Judges System until 1991, a member of Mary’s School of Law in San Antonio. Puerto Rico, as the ‘Jose´ V. Toledo the Judges Advisory Committee to the Judge Vela served as Commissioner Federal Building and United States United States Sentencing Commission, of the city of Brownsville. He was an Courthouse’.’’. and active in a number of local and active member of the Judges’ Advisory A motion to reconsider was laid on State associations associated with Committee to the U.S. Sentencing the table. civic and community activities. Commission. Judge Vela is a former f This is a fitting way to honor two law instructor and an attorney for the great judges who have dedicated their Cameron County Child Welfare Depart- GARZA-VELA UNITED STATES lives to serving their community and ment. COURTHOUSE their country. I encourage my col- His civic activities include being the Mr. FRANKS of New Jersey. Mr. leagues to support the bill. charter president for the Esperanza Speaker, I move to suspend the rules Mr. Speaker, I reserve the balance of Home for Boys and cosponsor of the and pass the bill (H.R. 686) to designate my time. Spanish radio program Enrich Your a United States courthouse in Browns- Mr. SHOWS. Mr. Speaker, I yield my- Life, Complete Your Studies. ville, Texas, as the ‘‘Garza-Vela United self such time as I may consume. Judge Vela’s other civic activities in- States Courthouse’’. Mr. Speaker, I join with the gen- clude membership on the Independent The Clerk read as follows: tleman from Brownsville, Texas (Mr. School District Task Force and mem- H.R. 686 ORTIZ) in supporting H.R. 686, a bill to bership in the General Assembly of the Be it enacted by the Senate and House of Rep- name the courthouse in Brownsville, Texas Catholic Conference. He is also resentatives of the United States of America in Texas, as the Garza-Vela United States an active member of the Lions Club. Congress assembled, Courthouse. Judge Vela was nominated by Presi- SECTION 1. DESIGNATION. Mr. Speaker, this bill honors the life dent Carter for the Federal bench, and The United States courthouse located at and works of two extraordinary Mexi- was confirmed by the United States the corner of Seventh Street and East Jack- can-Americans. Judge Reynaldo Garza Senate in 1980. son Street in Brownsville, Texas, shall be was born in Brownsville in 1915. He Judge Vela’s career is filled with suc- designated and known as the ‘‘Garza-Vela graduated from Brownsville Elemen- cesses, commitment to his family, de- United States Courthouse’’. tary School as well as Brownsville votion to his religion and his church, SEC. 2. REFERENCES. High School. After graduating from Any reference in a law, map, regulation, love for his work, and respect for his document, paper, or other record of the Brownsville Junior College, he at- colleagues. It is most fitting to honor United States to the United States court- tended the University of Texas, where Judge Vela with this designation. I join house referred to in section 1 shall be deemed he received a combined degree of Bach- the gentleman from Texas (Mr. ORTIZ) to be a reference to the ‘‘Garza-Vela United elor of Arts and Bachelor of Law. in supporting H.R. 686. States Courthouse’’. Judge Garza served his country dur- Mr. ORTIZ. Mr. Speaker, Texas is known for The SPEAKER pro tempore. Pursu- ing World War II in the Air Force. many thingsÐamong them is an embarrass- ant to the rule, the gentleman from After the war he returned to Browns- ment of riches in the Southern Judicial District New Jersey (Mr. FRANKS) and the gen- ville to practice law. In 1961 President of Texas. tleman from Mississippi (Mr. SHOWS) Kennedy appointed Judge Garza to the In South Texas, we have two judicial giants each will control 20 minutes. District Court for the Southern Dis- in the Rio Grande Valley for whom citizens The Chair recognizes the gentleman trict of Texas. President Carter ap- throughout the area have asked that the new from New Jersey (Mr. FRANKS). pointed him to the United States Court federal courthouse in Brownsville be named. Mr. FRANKS of New Jersey. Mr. of Appeals for the Fifth Circuit in 1979. Judge Reynaldo Garza was appointed to Speaker, I yield myself such time as I In addition to his judicial duties, the federal bench by President John F. Ken- may consume. Judge Garza has long been interested nedy in 1961 and Judge Filemon Vela was ap- Mr. Speaker, H.R. 686 designates the in educational issues. He served former pointed to the federal bench by President United States Courthouse in Browns- Governors John Connelly and Governor Jimmy Carter in 1980. ville, Texas, as the Garza-Vela United Mark White on commissions to im- Both of these men have become legends in States Courthouse. prove the quality of education in the South Texas area by virtue of their com- Reynaldo Garza and Filemon Vela Texas. Judge Garza recognized the im- mitment to education and community. are two distinguished judges who sit on portance of education in judicial pro- Each have shown their respective dedica- the Federal bench in Brownsville, ceedings and his concern for the tion to the betterment of the next generation of Texas. uneducated man at the mercy of the South Texans by working actively with schools Judge Garza began his distinguished unscrupulous people. and young people. career in public service with the Air Judge Garza is very active in his Judge Vela has focused on the young peo- Force during World War II. Upon his church, and has served the Knights of ple who have made mistakes or erred, by return from the war, Judge Garza re- Columbus in the Brownsville area for working with the Esperanza Home for Boys, turned to private practice until 1961, many years. Pope Pious XII twice deco- heading activities to keep young people in when President Kennedy appointed him rated Judge Garza for his work on be- school called `Ènrich Your Life, Complete to the United States District Court for half of Catholic Charities. In 1989, Your Studies,'' being part of the Texas Busi- the Southern District of Texas. Judge Garza was honored by the Uni- ness and Education Coalition, and working In 1974 he became the Chief Judge for versity of Texas with the Distinguished with the Texas Young Lawyers Association the Southern District, until he was ap- Alumnus Award. Dropout Prevention and Literacy Committee. May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2601 Judge Garza has served on the Brownsville Reverend Jesse L. Jackson, Sr., on se- Florida (Mrs. MEEK) which accords Independent School Board, and turned his at- curing the release of Specialist Ste- proper credit to the recent efforts of tention to the cause of higher education by phen Gonzalez of Huntsville Texas, Reverend Jesse Jackson and his accom- serving on the Texas Education Standards Staff Sergeant Andrew Ramirez of Los panying delegation of clergymen in Committee, the Coordinating Board of Col- Angeles, California, and Staff Sergeant successfully securing the release of our leges and Universities, and the Select Com- Christopher Stone of Smiths Creek, three POWs held in the Federal Repub- mittee on Higher Education. Michigan, from captivity in Belgrade, lic of Yugoslavia. He is revered for a story he relates about Yugoslavia, as amended. b 1900 his father, while dying, who told the Judge and The Clerk read as follows: The Reverend Jackson has a distin- his siblings that while he did not leave them H. RES. 156 with wealth, he left them with the gift of edu- guished record of utilizing his consider- Whereas, on March 31, 1999, Specialist Ste- able powers of persuasion in the service cation, one which no one can ever take away. ven Gonzales, Staff Sergeant Andrew Rami- Both these legends have schools named in rez, and Staff Sergeant Christopher Stone of humanitarian objectives. When their honor. were captured while patrolling the American citizens and others find When construction began on the federal Kumanovo area; themselves held in captivity in a hos- courthouse, all across the Valley, people won- Whereas the Reverend Jesse L. Jackson, tile country as a result of cir- dered whose name would grace the court- Sr., on April 29, 1999, led a delegation of reli- cumstances beyond their control, Rev- gious and civic leaders from the United erend Jackson has proven on several house upon completion. States in a faith-based effort to secure the I was moved at the number of letters that occasions against the odds that he can release of Specialist Steven Gonzales, Staff secure their release. came to my office relating personal stories Sergeant Andrew Ramirez, and Staff Ser- about one or the other and advocating naming geant Christopher Stone; Our Nation should be grateful to the the courthouse after either Judge Vela or Whereas against great odds and in the face good Reverend for his special skills in Judge Garza. of grave personal risks, the Reverend Jesse that regard. We are also grateful that After reading all the heart-felt expressions L. Jackson Sr. and his party successfully se- our three young service people who on behalf of both judges, and listening to peo- cured the release of Specialist Steven were unjustly held by the government Gonzales, Staff Sergeant Andrew Ramirez, of the Federal Republic of Yugoslavia ple who sought me out while I was in the Dis- and Staff Sergeant Christopher Stone; trict, I realized how rich we were in judicial tal- have finally been returned to their Whereas the Reverend Jesse L. Jackson, families, to their friends and fellow ent and thought that the only way to satisfy Sr. is recognized around the world as a hu- the concerns of all South Texans was to name manitarian, an advocate for civil and human countrymen. We salute their dedicated this courthouse after both judges. rights, and an ambassador of freedom; and service to our Nation. This name is a reflection of the will of those Whereas, as a highly respected world lead- Accordingly, I urge my colleagues in people whose interests will be served in the er, the Reverend Jesse L. Jackson, Sr. has the House to support H. Res. 156 com- new courthouse, and of those people for acted many times as an international dip- mending the Reverend Jesse L. Jack- lomat in sensitive situations and in October son and his fellow clergymen for ac- whom justice will be dispensed there. 1997, he was appointed by President Clinton Mr. SHOWS. Mr. Speaker, I have no quiring release of Specialist Steven and Secretary of State Albright as Special Gonzales, Staff Sergeant Andrew Rami- further requests for time, and I yield Envoy of the President and Secretary of back the balance of my time. State for the Promotion of Democracy in Af- rez, and Staff Sergeant Christopher Mr. FRANKS of New Jersey. Mr. rica: Now, therefore, be it Stone. Speaker, I have no further requests for Resolved, That the House of Mr. Speaker, I reserve the balance of time, and I yield back the balance of Representatives— my time. my time. (1) commends the Reverend Jesse L. Jack- (Mr. FALEOMAVAEGA asked and The SPEAKER pro tempore. The son, Sr. for securing the release of Specialist was given permission to revise and ex- Steven Gonzales, Staff Sergeant Andrew Ra- tend his remarks, and include extra- question is on the motion offered by mirez, and Staff Sergeant Christopher Stone the gentleman from New Jersey (Mr. neous material.) from captivity in the Federal Republic of Mr. FALEOMAVAEGA. Mr. Speaker, FRANKS) that the House suspend the Yugoslavia; and rules and pass the bill, H.R. 686. (2) joins with the people of the United I yield myself such time as I may con- The question was taken; and (two- States in celebrating the return to freedom sume. thirds having voted in favor thereof), of Specialist Steven Gonzales, Staff Sergeant Mr. Speaker, I rise in strong support the rules were suspended and the bill Andrew Ramirez, and Staff Sergeant Chris- of House Resolution 156 offered by the was passed. topher Stone. gentlewoman from Florida (Mrs. A motion to reconsider was laid on The SPEAKER pro tempore. Pursu- MEEK). Mr. Speaker, House Resolution the table. ant to the rule, the gentleman from 156 provides for a special commenda- f New York (Mr. GILMAN) and the gen- tion and tribute to Reverend Jesse tleman from American Samoa (Mr. Jackson, Sr., for his services and lead- GENERAL LEAVE FALEOMAVAEGA) each will control 20 ership, whereby he led a special delega- Mr. FRANKS of New Jersey. Mr. minutes. tion of religious leaders and even one Speaker, I ask unanimous consent that The Chair recognizes the gentleman of our fellow Members, the gentleman all Members may have 5 legislative from New York (Mr. GILMAN). from Illinois (Mr. BLAGOJEVICH) to days within which to revise and extend f travel to Belgrade, Yugoslavia to meet their remarks and include extraneous with President Slobodan Milosevic GENERAL LEAVE material on H.R. 1121, S. 453, S. 460, with the hope of trying to break the H.R. 118, H.R. 560, as amended, H.R. 686 Mr. GILMAN. Mr. Speaker, I ask stalemate and crisis in Kosovo through and H.R. 1162, the measure just consid- unanimous consent that all Members a negotiated peace settlement or agree- ered by the House. may have 5 legislative days within ment, and with the hope that the three The SPEAKER pro tempore. Is there which to revise and extend their re- men, soldiers who had been held cap- objection to the request of the gen- marks on this measure. tive, could also be released from pris- tleman from New Jersey? The SPEAKER pro tempore. Is there on. There was no objection. objection to the request of the gen- Mr. Speaker, I would like to offer my f tleman from New York? commendation also to the gentleman There was no objection. from New York (Mr. GILMAN), the COMMENDING THE REVEREND Mr. GILMAN. Mr. Speaker, I yield chairman of the House Committee on JESSE L. JACKSON, SR., ON SE- myself such time as I may consume. International Relations, for his en- CURING THE RELEASE OF U.S. (Mr. GILMAN asked and was given dorsement and support of this resolu- SERVICEMEN FROM CAPTIVITY permission to revise and extend his re- tion; also, the ranking Democrat of the IN BELGRADE, YUGOSLAVIA marks.) Committee on International Relations, Mr. GILMAN. Mr. Speaker, I move to Mr. GILMAN. Mr. Speaker, I am the gentleman from Connecticut (Mr. suspend the rules and agree to the reso- pleased to support this resolution in- GEJDENSON), both gentlemen, for sup- lution (H. Res. 156) commending the troduced by the gentlewoman from porting and endorsing this resolution. H2602 CONGRESSIONAL RECORD — HOUSE May 4, 1999 Needless to say, Mr. Speaker, Rev- Needless to say, Mr. Speaker, Reverend has rebuffed Jackson’s call for direct talks erend Jackson has done it again. Fol- Jackson has done it again. Following an in- between Clinton and Milosevic, and we agree lowing an intensive 3-hour-long meet- tense three-hour long meeting with President that such a meeting is at best premature. The air bombing campaign in Yugoslavia is a ing with President Milosevic with a Milosevic, with a good amount of praying and good amount of praying and heart-to- NATO operation. Beyond that, Milosevic heart-to-heart discussion, President Milosevic first would have to lay the groundwork nec- heart discussions, President Milosevic decided to release our three soldiers. essary for success. In short, that means the decided to release our three soldiers. Mr. Speaker, I am quite certain that our na- end of Milosevic’s pogrom in Kosovo, the safe Mr. Speaker, I am certain that our Na- tion, the families and friends of our three sol- return of the refugees and some form of au- tion, the families and friends of our diers, we all owe a debt of gratitude and ap- tonomy for the Kosovars that is diplomati- three soldiers, we all owe a debt of preciation for Reverend Jackson's commitment cally secured. gratitude and appreciation for Rev- to peace, but more especially his ability to Today we celebrate the release of U.S. soldiers from captivity. The diplomatic avenues erend Jackson’s commitment and devo- properly negotiate and persuade parties with tion to the cause of peace. And, more toward peace appear to be opening up, varying views to come to the table and seek through the increased interest of the Rus- especially, his ability to properly nego- solutions to the problems, is most commend- sians and others. Americans must not forget, tiate and persuade parties with varying able. however, that diplomacy was tried and failed views to come to the table and seek so- Mr. Speaker, Reverend Jackson deserves for many months in the absence of a mili- lutions to the problems certainly is our gratitude for his successful efforts to se- tary campaign. In the presence of a military most commendable. cure the release of our soldiers, Steve campaign, the diplomatic approach might fi- Mr. Speaker, Reverend Jackson de- Gonzales, Andrew Ramirez, and Christopher nally have been given the incentive it needed. serves our gratitude for his successful Stone. I might add, Mr. Speaker, these sol- efforts to secure the release of our soldiers showed tremendous courage and loyalty diers, Steve Gonzales, Andrew Ramirez [From the Los Angeles Times, May 3, 1999] to our nation. and Christopher Stone. I might add, JACKSON TRIP IS LATEST IN SERIES OF Mr. Speaker, I need not remind my col- SUCCESSFUL, RISKY ONE-MAN MISSIONS Mr. Speaker, those soldiers showed tre- leagues that the crisis in Kosovo is far from mendous courage and loyalty to our WASHINGTON.—The White House asked him over. The debates in this Chamber last not to go and said it couldn’t guarantee his Nation. weekÐI submit, Mr. SpeakerÐis indicative of safety in a city under attack by NATO bomb- I need not remind my colleagues, Mr. ing. Speaker, that the crisis in Kosovo is the seriousness of the issues and with so many varying opinions and claims of ``facts,'' But the diplomatic coup by the Rev. Jesse far from over. The debate in this Cham- Jackson, winning the release of three U.S. ber last week, I submit, Mr. Speaker, is or ``the truth''Ðthe crisis in the Balkans defi- soldiers held captive in Belgrade, highlights indicative of the seriousness of the nitely has proven one basic fact: our leaders the kind of risky, personal diplomacy that issues and with so very many varying and the American people simply do not know sometimes works where White House action opinions and claims of facts of the enough about the history and legacy of the cannot. Balkans; almost like a repeat of the ritual that Jackson, who has acted as Clinton’s special truth and the crisis in the Balkans, envoy in the past, went to Yugoslavia as a definitely in my humble opinion, Mr. America went through when we were confronted with the crisis in Vietnam. private citizen to negotiate with Slobodan Speaker, has proven one basic fact: Our Milosevic. It’s a role he’s played before in leaders and the American people sim- Mr. Speaker, we don't need and we don't Syria, Cuba and Iraq dating to the mid-1980s. ply do not know enough about the his- want another Vietnam in the Balkans. The administration had ruled out official tory and legacy of the Balkans. Almost DAYS OF JOY, PAIN AND HOPE negotiations for the soldier’s release since like a repeat of a ritual that America (Los Angeles Times Editorials.—May 3, 1999) their capture near the Yugoslavia-Macedonia went through when we were confronted Finally, in a period of missteps and acci- border on March 31, and vowed to press forward with the air war aimed at stopping hos- with a crisis in Vietnam. dental NATO attacks in Yugoslavia and confusion on Capitol Hill over whether the tilities in Kosovo. Mr. Speaker, we do not need and we While the White House has cautiously wel- House supports or opposes the air war, there do not want another Vietnam in the comed Jackson’s success, the administration is good news: the release Sunday of the three Balkans. We must remember that may still worry his mission may further American prisoners of war. The sight of the President Milosevic is continuing to Milosevic’s efforts to soften his image, said smiling faces of Army Staff Sgt. Andrew Ra- Barnett Rubin, the director of the Center for wage a brutal campaign against the mirez, 24, of East Los Angeles, Spc. Steven Preventive Action at the Council on Foreign Kosovar Albanians. Thousands of Gonzales, 21 of Huntsville, Texas, and Staff Kosovar Albanian refugees continue to Relations. Sgt. Christopher J. Stone, 25, of Smith’s ‘‘The danger is that a free-lancer like that, stream into the neighboring countries. Creek, Mich, provided a temporary respite unauthorized, dilutes your message,’’ Rubin Many of these refugees have terrible from the hard decisions that lie ahead and said. ‘‘They portray Milosevic as a war tales to tell of rape, of beatings, of that, we hope, will set the stage for further criminal, but this could show him he has al- atrocities and murder at the hands of diplomatic progress. ternatives.’’ Serbian forces. The NATO campaign is Full credit in securing the release of the Rep. Floyd Spence (R–S.C.), chairman of designed to deny Milosevic the ability three soldiers should go unbegrudgingly to the House Armed Service committee, said the Rev. Jesse Jackson and a private delega- to wage his brutal repression against the Jackson maneuver gave a ‘‘diplomatic tion of religious leaders, including Los Ange- victory’’ because ‘‘the world is going to look the Kosovar Albanians. les’ Rabbi Steven Bennett Jacobs and Dr. Mr. Speaker, we must remain stead- upon him in a different way, to some extent, Nazir Uddin Khaja of the American Muslim by releasing the prisoners this way.’’ fast in our resolve to see our mission Council. Spence said on CNN’s ‘‘Evans, Novak, Hunt through. Again, I want to commend the The religious leaders had been publicly & Shields’’ that a temporary bombing halt gentleman from New York (Mr. GIL- urged not to go to Belgrade by the Clinton ‘‘would be appropriate.’’ He added that ‘‘I MAN) for his support of this resolution. administration and had been warned that the don’t think we should be there in the first Mr. Speaker, I rise in strong support of mission was dangerous and ill-timed. No one place,’’ noting that he was among the 213 House Resolution 156 offered by the can know the cynical reasoning that might House members voting last week against a well have motivated President Slobodan gentlelady from Florida, Mrs. MEEK. resolution backing the bombing. Jackson has Milosevic to release the soldiers. But the a history of private intervention in inter- Mr. Speaker, House Resolution 156 pro- point is that Jackson delivered, winning the vides for a special commendation and tribute national crises. release of the prisoners without apparent He went to Syria in 1984 to arrange the re- to the Reverend Jesse Jackson, Sr., for his conditions. lease of a Navy pilot whose bomber was shot services and leadershipÐwhereby he led a For the families of the soldiers, seized on down by Syrian antiaircraft guns in Leb- special delegation of religious leaders and one the Macedonian border March 31, the night- anon. Several months later, he worked out of our fellow Members, the gentleman from Illi- mare is over. Relatives of Ramirez, Gonzales arrangements with Cuba for the release of 48 nois, Mr. BLAGOJEVICH, to travel to Belgrade, and Stone are on their way to Germany to be American and Cuban political prisoners. And YugoslaviaÐto meet with President Slobodan reunited with their sons, husbands and he played a similar role helping foreign MilosevicÐwith the hope of trying to break the brothers. women and children in Iraq in 1990. For the Kosovars, however, the future does stalemate in the current crisis in Kosovo Sometimes this type of citizen diplomacy not look so bright. ‘‘This gesture on his works, and sometimes it doesn’t. through a negotiated peace settlement or [Milosevic’s] part cannot overcome the Former President Carter helped diffuse a agreement, and with the hope also that the stench of evil and death on the killing fields crisis over North Korean efforts to develop three American soldiers who have been held of Kosovo,’’ Defense Secretary William S. nuclear weapons in 1994 by personally inter- captive could also be released from prison. Cohen said Sunday. The White House already vening with that country’s late leader, Kim May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2603 Il-Sung. When Carter said he want to go, gation of religious and civic leaders he is even more proud of his father Clinton reportedly told him to go ahead, as from the United States, including our than we are. I am very proud to offer long as Carter understood he was acting as a colleague, the gentleman from Illinois this resolution honoring this great private citizen and not an official emissary. But a similar Carter visit with Bosnian (Mr. BLAGOJEVICH), to Yugoslavia in a American, an outstanding leader, and I Serb leader Radovan Karadzic in 1995 failed faith-based effort to secure the release urge all of my colleagues to give it to produce a lasting cease-fire, and Carter of Specialist Gonzales, Staff Sergeant their enthusiastic support. was later criticized for meeting with an in- Ramirez, and Staff Sergeant Stone. Mr. GILMAN. Mr. Speaker, I reserve dicted war criminal. Against great odds and in the face of the balance of our time. Clinton has often favored using high-pro- grave personal risk, Reverend Jackson Mr. FALEOMAVAEGA. Mr. Speaker, file, one-man diplomatic missions to resolve and his party entered the war zone and I yield 2 minutes and 40 seconds to the international crises, counting on the reputa- on Saturday May 1, Reverend Jackson, distinguished gentleman from Illinois tion and clout of his messenger. He employed Bill Richardson—a congress- with the help of God, secured the re- (Mr. JACKSON), my friend and col- man from New Mexico and later U.S. ambas- lease of these brave American soldiers. league. sador to the United Nations—as a diplomatic Mr. Speaker, I and millions of Ameri- Mr. JACKSON of Illinois. Mr. Speak- firefighter, trying to extinguish problems in cans and others around the world, we er, let me begin by thanking the distin- Iraq, central Africa and North Korea. watched with pride, we watched with guished gentleman from New York He asked a former rival, Republican Bob joy and amazement as Reverend Jack- (Chairman GILMAN) and the gentleman Dole, to travel to Kosovo to convince the son and his delegation emerged with from American Samoa (Mr. Kosovar Albanians to sign a settlement FALEOMAVAEGA) for this opportunity, Molosevic eventually rejected. our three brave soldiers. It was at that And he teamed Carter with former Sen. point that I decided to introduce this and I certainly want to begin by com- Sam Nunn and retired Gen. Colin Powell in resolution. mending and thanking the gentle- 1994 to persuade Haiti’s military rulers to On this floor today we celebrate Rev- woman from Florida (Mrs. MEEK) for back down and allow a peaceful U.S.-led erend Jackson’s achievement and our sponsoring today’s resolution. military intervention that restored ousted soldiers’ return to freedom. We want Mr. Speaker, I am overwhelmed that President Jean-Bertrand Aristide. the world to know, Mr. Speaker, that the gentlewoman would be so kind as One of Clinton’s most frequent emissaries to think of Reverend Jackson and all of is Richard Holbrooke, the former State De- we are extremely proud of the Rev- partment official, ambassador, and architect erend Jesse Louis Jackson. the members of this delegation who of the 1995 Dayton accord that ended the war This is not the first time that Rev- sought to bring about an opportunity in Bosnia. Holbrooke, now the nominee to erend Jackson has successfully secured for peace in this crisis. I am only trou- succeed Richardson as ambassador to the the release of prisoners in other coun- bled in that the present signals that we United Nations, negotiated with Milosevic tries. In 1984 he secured the release of are getting are not ones that indicate seeking a peaceful solution to Kosovo right United States Navy Flyer, Lieutenant that we are going to take advantage of up until the NATO bombing began. Robert O. Goodman, Jr., from Syria. the opportunity that Reverend Jackson But Rubin said Jackson’s mission differs has created. greatly from that of official envoys. Again in June of 1984 he secured the re- ‘‘Holbrooke was representing the United lease of 22 Americans and 26 Cubans I could talk about Reverend Jackson, States and NATO, saying, ‘If you don’t agree, from Cuba; and in 1990 he secured the my father, for hours. Maybe for a life- we’re going to bomb you.’ That’s the same release of 700 women and children who time. But I want to take the few min- message whether you’re alone in the room or were being detained in Iraq. utes that I have, that has been given if you’re with 10 other people,’’ Rubin said. Jesse Louis Jackson is certainly a me, just to mention the names of those Mr. Speaker, I am privileged to yield man of peace. Mr. Speaker, he is recog- ministers who participated in this 5 minutes to the distinguished gentle- nized around the world as a humani- event. woman from Florida (Mrs. MEEK), chief tarian, an advocate for civil and human The Reverend Jesse Jackson, Sr., sponsor of this resolution rights, and an ambassador of freedom. founder and president of the Rainbow/ Mrs. MEEK of Florida. Mr. Speaker, I Time and again he has been willing and PUSH Coalition. The Reverend Dr. thank the gentleman from American able to enter into difficult situations Joan Brown Campbell, general sec- Samoa (Mr. FALEOMAVAEGA), my col- and to go into harm’s way that very retary, National Council of Churches. league, for giving me this opportunity few of us would go into. His diplomacy Mr. Nazir U. Khaja, medical doctor, to express my feelings about the Rev- has been effective when conventional chairman of the board of the American erend Jesse Louis Jackson. diplomacy has not been effective. He Muslim Council, head of the Islamic In- When the history of the world is has achieved success due to his deter- formation Service. written, Mr. Speaker, the name of mination and the strength of his be- Father Leonid Kishkovsky, Orthodox Jesse Louis Jackson will head the liefs. Church of America. The Reverend name of those who loved peace. I am Reverend Jackson is a soldier for James Meeks, Salem Baptist Church, pleased that the House is today consid- peace and freedom with deep roots in Chicago, Illinois. The Reverend Father ering a resolution introduced yesterday the nonviolence movement. For over a Irinej Dobrijevic, Serbian Orthodox commending the Reverend Jesse L. generation he has acted in the highest priest, International Orthodox Chris- Jackson, Jr., for his extraordinary ef- tradition of Gandhi and Martin Luther tian Charities. Landrum Bolling, Sen- forts in securing the release of our King. ior Advisor, Conflict Management three brave American soldiers from Reverend Jackson has proven time Group, Director-at-Large, Mercy Corps captivity in the Federal Republic of and time again that he will go any- International. Yugoslavia. Reverend Jesse Louis where and to any lengths to help those John Wyma, chief of staff to Con- Jackson gives us something for all of in need, especially those who are un- gressman ROD BLAGOJEVICH. Father us to be proud of: leadership, bravery, able to help themselves. It is a great Raymond G. Helmick from Boston Col- courage. honor and privilege to know him and to lege in Boston, Massachusetts. Amy I particularly want to thank Speaker have him as a friend, and to know that Toensing, photographer. Walter Rogers HASTERT; the gentleman from Missouri this House does itself proud by hon- from CNN. Yuri Tadesse, the director (Mr. GEPHARDT) our minority leader; oring someone who has done so much of International Affairs at Rainbow/ the gentleman from New York (Chair- to help so many. PUSH Coalition. man GILMAN); the gentleman from Con- Mr. Speaker, the Bible said: ‘‘Blessed David Steele, Center for Strategic necticut (Mr. GEJDENSON) ranking are the peacemakers.’’ The Reverend and International Studies of Wash- Member; and the gentleman from Jesse Jackson, Sr., is indeed blessed. ington, D.C. James George Couchell, American Samoa (Mr. FALEOMAVAEGA) God has given him great gifts and he His Grace Bishop Dimitrios of Xanthos, of the Committee on International Re- has used them fully to help his fellow Greek Orthodox Archdiocese of Amer- lations, who worked together in a bi- men and women. He deserves our ica. His Grace Right Reverend Bishop partisan effort to bring this resolution thanks and our praise. We are so proud. Mitrophan, Serbian Orthodox Bishop of to the floor. Mr. Speaker, we all serve with his Eastern America. Bishop Marshall Mr. Speaker, as we all know, last son, the gentleman from Illinois (Mr. ‘‘Jack’’ Meadors of the United Meth- Thursday Reverend Jackson led a dele- JESSE L. JACKSON, Jr.), and I know that odist Church. H2604 CONGRESSIONAL RECORD — HOUSE May 4, 1999 Rabbi Steven Bennett Jacobs, Tem- with courage, left the shores of this 1984 campaign won 3.5 million votes, reg- ple KOL Tikva from Los Angeles, Cali- land and went forth to deliver them. istered over one million new voters, and fornia. Mr. Zoran S. Hodjera, president As I traveled in Albania and Mac- helped the Democratic Party regain control edonia this weekend, it was clear that of the Senate in 1986. His 1988 candidacy won of the Saint Luke Serbian Orthodox seven million votes and registered two mil- Church in Washington, D.C. Our col- all eyes were on Reverend Jackson and lion new voters and helped to sweep hun- league, Congressman ROD BLAGOJEVICH his delegation. First, we were offering dreds of elected officials into office. Addi- from the Fifth Congressional District up prayers, Mr. Speaker; and then, of tionally, this civil rights leader won a his- in Illinois. Obrad Kesic, Director of course, we were hoping for the very toric victory, coming in first or second in 46 Governmental Affairs, IGN Pharma- best. out of 54 contests. His clear progressive ceuticals. Reverend Roy Thomas We know that President Milosevic agenda and his ability to build an unprece- Lloyd, Broadcast News Director of the has brutally murdered many of the eth- dented coalition inspired millions to join the nic Albanians. We know that women political process. National Council of Churches. As a highly respected world leader, Rev- Jonathan Alpert from HBO. Susan and children have been displaced, along erend Jackson has acted many times as an Sachs from the New York Times. with their husbands and men. We know international diplomat in sensitive situa- Bryan Puchaty, CNN. Marie Nelson, that the men have been murdered and tions. In 1984, for example, Reverend Jackson the director for Africa Policy, Rain- taken off to war. We know the refugee secured the release of captured Navy Lieu- bow/PUSH Coalition. camps are in terrible condition in tenant Robert Goodman from Syria, as well Mr. Speaker, this interfaith delega- terms of the living conditions, and we as the release of 48 Cuban and Cuban-Amer- tion made it possible to bring our pris- know we must prevail to stop ethnic ican prisoners in 1984. He was the first Amer- cleansing. But Reverend Jackson rose ican to bring hostages out of Kuwait and oners of war home. Iraq in 1990. Mr. GILMAN. Mr. Speaker, I want to above those issues to proceed to de- In 1990, in an impressive victory, Reverend commend the gentleman from Illinois clare peace and to receive these indi- Jackson was elected to the post of U.S. Sen- (Mr. JACKSON) for listing all the clergy- viduals back. ator from Washington, D.C., a position also men. I had not seen that list published Mr. Speaker, I would simply take my known as ‘‘Statehood Senator.’’ The office any place and it was certainly a won- hat off, if I had one, to salute Reverend was created to advocate for statehood for the derful delegation. And I commend him Jesse L. Jackson, Sr., for being a cou- District of Columbia, which has a population higher than five states yet has no voting rep- for giving them the proper attributes rageous man of peace. Mr. Speaker, I submit for the RECORD resentation in Congress. for their work. A hallmark of Reverend Jackson’s work Mr. Speaker, I yield 2 minutes to the Reverend Jackson’s entire resume and has been his commitment to youth. He has gentlewoman from Texas (Ms. JACK- bio. visited thousands of high schools, colleges, SON-LEE). REVEREND JESSE L. JACKSON, SR., PRESIDENT universities, and correctional facilities en- Ms. JACKSON-LEE of Texas. Mr. AND CHIEF EXECUTIVE OFFICER, RAINBOW/ couraging excellence, inspiring hope and Speaker, I thank the gentleman from PUSH COALITION, INC. challenging young people to award them- The Reverend Jesse Louis Jackson, Presi- selves with academic excellence and to stay New York (Mr. GILMAN), the chairman dent and founder of the Rainbow/PUSH Coa- drug-free. He has also been a major force in of the Committee on International Re- lition, is one of America’s foremost political the American labor movement—working lations, for his generosity and for his figures. Over the past thirty years he has with unions to organize workers and mediate constant advocacy for peace. And I played a pivotal role in virtually every labor disputes. It is noted, Reverend Jackson thank the gentleman from American movement for empowerment, peace, civil has probably walked more picket lines and Samoa (Mr. FALEOMAVAEGA), the rank- rights, gender equality, and economic and spoken at more labor rallies than any other ing member, for his leadership. I also social justice. national leader. thank the gentlewoman from Florida Reverend Jackson has been called the A renowned orator, Reverend Jackson has ‘‘conscience of the nation’’ and ‘‘the great received numerous honors for his work in (Mrs. MEEK) for bringing this to a point unifier,’’ challenging America to establish human and civil rights and for nonviolent so- when we could acknowledge a great just and humane priorities. He is known for cial change. In 1991, the U.S. Post Office put man of peace. bringing people together in common ground his likeness on a pictorial postal cancella- Mr. Speaker, ringing throughout the across lines of race, class, gender, and belief. tion, only the second living person to receive halls of many places over the weekend, Born on October 8, 1941 in Greenville, such an honor. He has been on the Gallup and particularly in our houses of wor- South Carolina, Jesse Jackson attended the List of Ten Most Respected Americans for ship, were the words, ‘‘glory, glory, University of Illinois on a football scholar- the past ten years. He has also received the hallelujah,’’ for it was that which ship and later transferred to North Carolina prestigious NAACP Spingarn Award, in addi- A&T State University. He attended Chicago tion to honors from hundreds of grassroots caused the efforts of Reverend Jesse Theological Seminary until he joined the and community organizations from coast to Louis Jackson to be put at the pin- Civil Rights Movement full time in 1965. coast. Reverend Jackson has been awarded nacle of our eyesight in terms of what Reverend Jackson began his activism as a more than 40 honorary doctorate degrees, he accomplished. We had always known student leader in the sit-in movement and and frequently lectures at Howard, Yale, him as a man of peace who was coura- continued as a young organizer for the Princeton, Morehouse, Harvard, Columbia, geous, but as he brought forth the Southern Christian Leadership Conference as Stanford, and Hampton Universities, among three young men and presented them an assistant to Dr. Martin Luther King, Jr. others. He went onto direct Operation Breadbasket to us this past Sunday there was a Since 1992, Reverend Jackson has hosted and subsequently founded People United to ‘‘Both Sides With Jesse Jackson’’ on Cable ringing of celebration, one long over- Save Humanity (PUSH) in Chicago in 1971. News Network. He is the author of two due. PUSH’s goals were economic empowerment books: Keep Hope Alive (South End Press, I rise to support this resolution and and expanding educational and employment 1989) and Straight From the Heart (Fortress support Reverend Jesse L. Jackson, opportunities for the disadvantaged and Press, 1987). In 1996, Reverend Jackson co-au- Sr., and as noted by the gentleman communities of color. In 1984, Reverend thored the book Legal Lynching: Racism, In- from Illinois (Mr. JACKSON), all of the Jackson founded the National Rainbow Coa- justice, and the Death Penalty (Marlowe & others, part of the delegation, the reli- lition, a national social justice organization Company) with his son, U.S. Representative devoted to political empowerment, education Jesse L. Jackson, Jr. gious and civic leaders, including our and changing public policy. In September In October 1997, Reverend Jackson was ap- colleague from Illinois (Mr. 1996, the Rainbow Coalition and Operation pointed by President Bill Clinton and Sec- BLAGOJEVICH). PUSH merged into the Rainbow/PUSH Coali- retary of State Madeleine Albright as ‘‘Spe- It is important to acknowledge the tion to continue both philosophies and maxi- cial Envoy of the President and Secretary of fact that there can be peace. mize its resources. State for the Promotion of Democracy in Af- b Long before national health care, a war on rica.’’ In his official position as Special 1915 drugs, dialogue with the Soviet Union and Envoy, Reverend Jackson traveled to Kenya I am grateful that specialist Steven negotiations with the Middle East were pop- and Zambia in November 1997. Reverend Gonzales, Staff Sergeant Andrew Rami- ular positions, Reverend Jackson advocated Jackson met with His Excellency Daniel T. rez, and Staff Sergeant Christopher them. By virtue of Reverend Jackson’s advo- Arap Moi of Kenya and President Frederick Stone, who were captured on patrol cacy, South African apartheid and the fight J.T. Chiluba of Zambia during his trip. for democracy in Haiti came to the forefront Reverend Jackson married college sweet- along the border of Kosovo and Mac- of the national conscience. heart Jacqueline Lavinia Brown in 1963. edonia, are now free. I am delighted Reverend Jackson’s two presidential cam- They have five children: Santita Jackson, that Reverend Jackson, in prayer and paigns broke new ground in U.S. politics. His Cong. Jesse Louis Jackson, Jr., Jonathan May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2605 Jackson, Yusef DuBois Jackson, Esq., and Mr. FALEOMAVAEGA. Mr. Speaker, their units and held captive in a hostile Jacqueline Lavinia Jackson, Jr. The Jack- I yield 1 minute to the gentlewoman land. Members of their families, people sons reside in Chicago. from Ohio (Mrs. JONES). in their home communities and con- Mr. FALEOMAVAEGA. Mr. Speaker, (Mrs. JONES of Ohio asked and was cerned citizens around the world I yield 1 minute to the gentleman from given permission to revise and extend prayed for their safe return. We were Illinois (Mr. DAVIS). her remarks.) disappointed by the unsuccessful diplo- (Mr. DAVIS of Illinois asked and was Mrs. JONES of Ohio. Mr. Speaker, I matic efforts to secure their release. given permission to revise and extend rise in support of H.R. 156, to commend, In answer to the call of conscience, his remarks.) thank and congratulate the Reverend who will go to seek the release of these Mr. DAVIS of Illinois. Mr. Speaker, I Jesse Jackson and his delegation and young men, Reverend Jesse Jackson join with my colleagues in support of the gentleman from Illinois (Mr. ROD boldly and courageously answered, I H. Res. 156, a resolution to honor not BLAGOJEVICH) for securing the release will. Despite the risk of failure, despite only the work of the Honorable Rev- of the three American soldiers. the risk of danger to his personal secu- erend Jesse Jackson but also the work There has been great discussion criti- rity, despite the risk of criticism from of the entire delegation who traveled cizing independent diplomatic efforts those who would say he had no business with him against insurmountable odds as dangerous, out of line and inappro- whatsoever, Reverend Jesse Jackson and came back victorious. priate. I stand to commend the efforts and his faith-based mission answered Especially would I like to single out of this faith-based delegation made up the call. the work of our colleague, the gen- of more than 20 religious leaders as the And, indeed, we want to commend tleman from Illinois (Mr. ROD right move at the right time and in the our colleague, the gentleman from Illi- BLAGOJEVICH), and the Reverend James best interests of the soldiers and this nois (Mr. BLAGOJEVICH), to go to this Meeks, whom I happen to know and Nation. foreign country and to urge the coun- I am the mother of a 16-year-old have a tremendous amount of respect try of that Nation to let our soldiers go man-child named Mervyn Jones, the for. home. love of my life. I place myself in the I think, once again, Reverend Jack- He succeeded and we are glad. Perhaps shoes of the mothers of these three son has demonstrated his astuteness, this humanitarian gesture by the Yugoslavian American soldiers, experiencing the his ability, his agility. Some of us President, to set free our soldiers, will be fol- anxiety, loneliness, regret, love, long- thought maybe Reverend Jackson was lowed by more substantial concessions on his ing and desperation of not being able to getting a little bit older, and somebody part to hasten an end to the destruction of that remove my son from the arms of else said, no, Jesse is not getting older, region and the suffering he has caused in so he is just getting better. And so he has Milosevic. Thanks to the efforts of Reverend Jackson and his delegation, I many lives there. However, today, we should gotten better, he is better, and we com- take time, on behalf of a nation that is grateful mend and congratulate him once again stand in the shoes of these same mothers exuberant, relieved, happy, proud, and very relieved by the safe return of our sol- on a tremendous piece of humanitarian diers, to say thank you to Rev. Jesse Jackson work for all of the world to see. grateful and blessed that God allowed the Reverend Jackson to speak for me for answering the call of conscience and for a Mr. FALEOMAVAEGA. Mr. Speaker, job well done. I yield 1 minute to the gentlewoman and my son. In the midst of apprehension, discourage- Rev. Jesse Jackson, by his bold actions, from California (Mrs. NAPOLITANO). ment, criticism and mistrust, this faith-based displayed the wisdom implicit in the old maxim Mrs. NAPOLITANO. Mr. Speaker, I that we should live, learn, love and leave a thank my colleagues on both sides of delegation had the courage and most of all the faith, hope and belief that they could accom- legacy. By his actions, Rev. Jackson displayed the fence for bringing this today to courage to go into a dangerous situation to this floor. plish that which others had been unable to ac- complishÐthe release of three young Amer- accomplish his mission, to seek the release of I especially want to thank my col- our soldiers. He did it and we say thank you. league, the gentlewoman from Florida ican soldiers. There comes a time when all criticism Mr. FALEOMAVAEGA. Mr. Speaker, (Mrs. CARRIE MEEK), for authoring should cease and all voices should now be may I ask how much more time do I House Resolution 156, which commends heard in unison, thanking these great Ameri- have on this side? the Reverend Jesse Jackson for his cans for their efforts, thanking these great The SPEAKER pro tempore (Mr. wonderful and great work in securing Americans for their belief, thanking them for DUNCAN). The gentleman from Amer- the release of our brave servicemen, their audacity to believe that they could, thank- ican Samoa (Mr. FALEOMAVAEGA) has Staff Sergeant Andrew Ramirez, Staff 3 ing them for their service. 4 ⁄4 minutes remaining. Sergeant Christopher Stone, and Spe- Reverend Jackson, Representative Mr. FALEOMAVAEGA. Mr. Speaker, cialist Steven Gonzales. BLAGOJEVICH and other members of the dele- I yield 1 minute to the gentlewoman I am proud to be a cosponsor of this gation, I join with the United States Congress from California (Ms. WATERS). resolution and honored to have the op- and the American people to laud, commend, (Ms. WATERS asked and was given portunity to address the Nation about congratulate and praise your good work. permission to revise and extend her re- it today. Mr. FALEOMAVAEGA. Mr. Speaker, marks.) Reverend Jesse Jackson has once I yield 1 minute to the gentlewoman Ms. WATERS. Mr. Speaker, I thank again proven himself a man of great from North Carolina (Mrs. CLAYTON). the gentleman for yielding me this ability, of great compassion and of (Mrs. CLAYTON asked and was given time; and though 1 minute is not great faith. His mission to Yugoslavia permission to revise and extend her re- enough, I will try. brought relief and joy to the families of marks.) I simply want to, first, thank the these three servicemen and to all Mrs. CLAYTON. Mr. Speaker, I want gentleman from New York (Mr. GIL- Americans who prayed for their free- to thank the chairman and the ranking MAN), the chairman, and our ranking dom. member for having this, and I want to member, as well as the gentlewoman Our Nation owes Jesse Jackson a thank the leadership of the gentle- from Florida (Mrs. CARRIE MEEK) for great debt of gratitude. His skillful di- woman from Florida (Mrs. MEEK) for stopping and focusing us and getting us plomacy in this case, as well as his offering this resolution. together to give our thanks to Rev- other successful missions to free hos- I rise in support of H.R. 156, a resolu- erend Jesse Jackson. tages and prisoners throughout the tion to commend Reverend Jesse Jack- Reverend Jesse Jackson is truly a re- years, serves to remind us of Reverend son, Sr., for securing the release from markable man. He is a man who truly Jackson’s steadfast dedication to peace captivity of three United States sol- believes in the power of prayer and the and freedom. diers: Specialist Steven Gonzales of ability to argue the moral and humane With regard to Staff Sergeant Steven Huntsville, Texas; Staff Sergeant An- position, no matter how difficult it Ramirez, I am especially thankful to drew Ramirez of Los Angeles; and Staff looks, no matter how difficult it seems. Reverend Jackson for his courageous Sergeant Christopher Stone of Smiths He was criticized. They said, do not mission and am proud to join the Na- Creek, Michigan. go, Jesse; do not mess up our diplo- tion in honoring this exemplary Amer- For 5 weeks these soldiers reportedly matic relations, even though we had ican today. were held isolated from each other and none. But Jesse went in spite of that, H2606 CONGRESSIONAL RECORD — HOUSE May 4, 1999 with a faith-based coalition and our Leading a delegation of Christian, I just want to the add my voice of own Congressman, to say to Mr. Muslims and Jewish representatives, congratulations to Jesse Jackson, who Milosevic, let them go. Reverend Jackson made a way where in many ways is like a father figure to And despite the fact that we all be- there seemed to be none. It is my hope me. I have known the family for so lieve that Mr. Milosevic is without a that we may use the relationships long. I am not surprised what Jesse moral center, that this is a man who which he has developed to find a way to Jackson was able to accomplish. And I has been involved in ethnic cleansing, end this war but, more importantly, say to my dear friend who came with that this is a man who had lost his that we find a way to end the oppres- me in the same class in 1996, that great moral compass a long time ago, Jesse sion which caused it. It must always be Congressman from Chicago, he was one convinced him. our goal to establish a peace not based heck of a wing man and the Reverend He did not stop on the first try. They on oppression and to rebuild an arc of could not have done it without him. told him it was not on the agenda. the covenant between all people. Rev- Congratulations, Reverend Jackson. Jesse Jackson went to bed; and he said, erend Jackson has done his part. Let us And to the Ramirez, Stone and it is on my agenda. And he got up the now do ours. Gonzales families, I thank them for next morning, and he continued with Mr. Speaker, I commend Reverend producing three great men like they the mission, and he made it happen. Jackson for his efforts. have. We are pleased. The mothers of these Mr. FALEOMAVAEGA. Mr. Speaker, God bless America. young men are pleased. We are so glad I yield 1 minute to the gentlewoman The SPEAKER pro tempore. The gen- we have a Jesse Jackson. The world from Michigan (Ms. KILPATRICK). tleman from American Samoa (Mr. should thank Jesse Jackson. Ms. KILPATRICK. Mr. Speaker, I FALEOMAVAEGA) has 25 seconds remain- Mr. FALEOMAVAEGA. Mr. Speaker, want to thank our ranking member ing. I yield 1 minute to the gentleman from and the gentleman from New York (Mr. Mr. GILMAN. Mr. Speaker, I am Illinois (Mr. RUSH). GILMAN) and my very dear friend, the pleased to yield 1 additional minute to Mr. RUSH. Mr. Speaker, I want to gentlewoman from Florida (Mrs. the gentleman from American Samoa also thank the sponsor of this out- CARRIE MEEK), for bringing this resolu- (Mr. FALEOMAVAEGA). standing resolution, H.R. 156. I also tion forward. Mr. FALEOMAVAEGA. Mr. Speaker, want to thank the chairman of the sub- People can say what they want about I yield myself the balance of the time. committee and also the ranking mem- this country. This is the greatest coun- I certainly want to commend and ber of the subcommittee for this occa- try in the world. Men like Reverend thank my colleagues for the state- sion. Jesse Jackson, as well as my colleague, ments that have been presented to pay Today, I would like to commend Rev- the gentleman from Illinois (Mr. ROD this very special tribute and this reso- erend Jesse Jackson and the entire BLAGOJEVICH), who have the courage to lution to Reverend Jesse Jackson for Jackson peace delegation, which in- risk their lives, and the other delega- the performance and for the contribu- cluded the gentleman from Illinois (Mr. tion, and to go on foreign soil to free tions that he has made, especially in ROD BLAGOJEVICH) and the Reverend three heroes are to be commended. bringing home these three soldiers who James Meeks, both who reside in the I want to add my voice to all those had been imprisoned for the past 31 City of Chicago, for their heroic efforts who have spoken before me in thanking days. in bringing our soldiers back home. Reverend Jackson and our colleague In saying that, I certainly thank my It took people of monumental and their delegation. This world will be good friend the gentlewoman from strength and enormous moral courage a better place. We hope we can end this Florida for her sponsorship of this leg- to accomplish such a noble feat. I know war and bring peace to our Nation. islation. that all of America, including the par- Mr. GILMAN. Mr. Speaker, I yield 1 Mr. Speaker, I yield the balance of ents of our soldiers, thanked God when minute to the gentleman from Illinois the time to the gentlewoman from on Sunday it was announced that our (Mr. BLAGOJEVICH), the gentleman who Florida (Ms. BROWN). soldiers were released. accompanied Reverend Jackson and The SPEAKER pro tempore. The gen- One word about Reverend Jackson. made it possible for Reverend Jackson tleman from American Samoa has 1 Reverend Jackson is, indeed, a remark- to visit in Yugoslavia. minute remaining. That 1 minute is able man, a man of enormous courage Mr. BLAGOJEVICH. Mr. Speaker, I yielded to the gentlewoman from Flor- and enormous talent and abilities. Rev- thank the gentleman for yielding me ida (Ms. BROWN). erend Jackson’s moral plea to this time. Ms. BROWN of Florida. Mr. Speaker, Milosevic for the release of our soldiers Sergeant Ramirez and Sergeant I rise today in support of House Resolu- was not an easy task. However, once Stone and Specialist Gonzales are soon tion 156. again, Reverend Jackson has dem- to be home with their families due to I want to thank the Reverend Jesse onstrated to us the power of diplomatic the hard work and effort of Reverend Lewis Jackson for the wonderful job he negotiations. Jesse Jackson. He worked very hard. has done getting the three American Reverend Jackson certainly deserves He was constant in his pursuit of nego- prisoners released. Our Nation and the every word, every symbol, every indi- tiations to achieve this mission. There families of the three soldiers who were cation that we have giving him thanks. were peaks, and there were valleys. I held for a month are very grateful to Mr. FALEOMAVAEGA. Mr. Speaker, know, because I was there with him. Reverend Jackson’s work. I yield 1 minute to the gentleman from b 1930 Reverend Jackson has only recently Alabama (Mr. HILLIARD). Reverend Jackson did it in Iraq and been named as a diplomat, but he has Mr. HILLIARD. Mr. Speaker, I com- Kuwait. He did it before in Cuba with been doing this work for a very long mend the Reverend Jesse Jackson. For hostages. He did it before and was suc- time. I am very hopeful that Reverend many years, the Reverend Jesse Jack- cessful in Syria with Robert Goodman. Jackson’s success will encourage the son has served the cause of peace and And he did it again in Yugoslavia. Rev- two sides to find a peaceful end to the human dignity. Once again, Reverend erend Jesse Jackson is four for four, crisis. Jackson has traveled to the battle- and Jesse Jackson is the man. On that note, I want to say that I fields of a world at war to return cap- Mr. FALEOMAVAEGA. Mr. Speaker, joined several of my colleagues this tive servicemen. Once again, he has how much time do I have remaining? weekend in Vienna, where we had brought a message of peace and human The SPEAKER pro tempore (Mr. meetings with the Russian Parliament. unity to a situation many thought was DUNCAN). The gentleman from Amer- We tried to set a framework for peace beyond hope. Once again, Reverend ican Samoa (Mr. FALEOMAVAEGA) has 1 negotiations between the two sides, Jackson has put his faith to the test, minute remaining. and I am very pleased with our results. opened his heart in love and brought Mr. FALEOMAVAEGA. Mr. Speaker, We cannot underestimate the power of hope to the hopeless. Once again, Rev- I yield 35 seconds to the gentleman negotiators like the Reverend Jackson, erend Jackson has made himself an ex- from Tennessee (Mr. FORD). and I am very encouraged that his ef- ample of a committed American and an Mr. FORD. Mr. Speaker, I thank the forts, along with the discussions with international peacekeeper. gentleman for yielding me the time. the Russian officials, will lay the May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2607 groundwork for peace and end this con- ter 5, our Savior, Jesus Christ tells us which managed to free the three soldiers, and it was flict. values will be looked upon favorably in the clear that he had done it with great care and God bless America. And, of course, kingdom of Heaven. Some of the ones he skill without undermining U.S. foreign policy we all love the Reverend Jesse Lewis mentions who will be blessed are: concerns and military aims. Reverend Jackson Jackson. ``The poor in spirit, for theirs is the kingdom carried the NATO four conditions and urged I would like to congratulate the Reverend of heaven.'' them on Milosevic at the same time that he Jesse Jackson in his successful efforts in The Rev. Jackson has dedicated his life to urged our country to look for diplomatic open- bringing home the three United States service- representing the most marginalized, ings. Through the efforts of the former Rus- men, Staff Sergeant Christopher J. Stone, disenfranchised members of American society. sian Prime Minister Viktor Chernomyrdin, who Staff Sergeant Andrew A. Ramirez and Spe- ``Those who hunger and thirst for righteous- coincidently arrived at Andrews shortly after cialist Steven M. Gonzales, who were ab- ness, for they will be filled.'' the Jackson delegation, these openings are ducted in Macedonia near the Yugoslav bor- The Rev. Jackson has made filing the souls beginning to appear now. Rev. Jackson's work der where they were on patrol while partici- of Americans as important as filing the bellies has not hurt our goals, and may have helped pating in a NATO force that was to move into of the hungry. in ways we cannot yet know. What we do Kosovo as peacekeepers in case of a settle- ``The merciful, for they will be shown know is what Jesse Jackson, through an act ment. Mr. Jackson's trip to Yugoslavia as a mercy.'' of will and skill, has produced the three young negotiator on behalf of the soldiers was in- The Rev. Jackson has stepped into the men before the war's end. Jesse Jackson de- deed courageous, and his diplomatic talents chasm of propaganda and demonization to serves credit not only for what he did but for are more than commendable. meet with the leaders of our nation's `èn- the way he did it. Today's special order is a Indeed, in obtaining the release of the cap- emies'' and bring America's sons and daugh- well deserved tribute. ters back from captivity in foreign countries. tured soldiers, Reverend Jesse Jackson suc- Ms. LEE. Mr. Speaker, I rise tonight to rec- ``The pure in heart, for they will see God.'' ceeded where no one else could through his ognize my good friend and colleague, Rev- immeasurable perseverance, faith, and per- The Rev. Jackson's approach to solving problems clearly illustrates the innocence and erend Jesse Jackson, for his diplomacy in sistent negotiating with the Serb leader. It is Yugoslavia and his work to bring an end to the interesting to note that this was not the Rev- humility of his altruistic intentions, his love of all people, and his dedication to making the crisis in Kosovo. Thanks to the work of Rev- erend's first success as an international medi- erend Jackson and his delegation, three serv- ator. In 1984, he won the freedom from Syria world a better place for everyone. ``The peacemakers, for they will be called icemen who had been held in Yugoslavia have of a U.S. Navy flyer, Lt. Robert O. Goodman, been freed and allowed to return home safely. Jr., who had been shot down in a raid on anti- sons of God.'' The Rev. Jackson has been a strong, out- We must continue to take every measure pos- aircraft positions in Lebanon. I also recall that sible to ensure the safe and expeditious return in June of that same year he persuaded Fidel spoken advocate of diplomacy and nonviolent conflict resolution. home of all the men and women of the United Castro to release 22 Americans and 26 Cu- States Armed Forces who have been dis- bans from Cuban prisons. Additionally, Jesse ``Those who are persecuted because of righteousness, for their is the kingdom of patched to Yugoslavia. Jackson has participated in numerous domes- In the same spirit, I hope that we can seize tic ``missions,'' and has mediated in several heaven.'' The Rev. Jackson has stood on the front upon this moment to further these diplomatic disputes on behalf of African Americans, labor lines of our nation's struggle to recognize the efforts to bring about an immediate end to and the poor. One example of his efforts was civil rights of all its citizens. Slobodan Milosevic's campaign of terror. At his success in prodding the aircraft maker Rev. Jackson, we appreciate you and the this juncture, I am convinced that our best Boeing into a $15 million settlement of two work you are doing to walk the path. We com- hope for peace and stability in the region is class action lawsuits that accused the firm of mend you for your tireless efforts to bring the negotiation of an immediate cease fire and discriminating against its African American home American soldiers who have become the dispatch of an international peace keeping workers. I wholeheartedly admire the Rev- prisoners of war. However, your selflessness force. It is my strong belief that the United erend for his tactics in dispute resolution, for does not stop there. On a number of occa- States and NATO must reach out to the his siding with the underdogs, the poor, mi- sions, your intervention has freed citizens United Nations, Russia, China, and others to norities, and the oppressed. work together toward a new internationally ne- Mr. GILMAN. Mr. Speaker, I yield being held as human shields by Saddam Hus- gotiated peace agreement and to secure Serb myself the balance of the time. sein and political prisoners from Cuban jails. Again, I want to commend the gen- Hold your head up Brother Jackson. You are compliance with any and all of its terms. tlewoman from Florida (Mrs. MEEK) for somebody! Keep the faith! When you are feel- As a person who strongly believes in the bringing this resolution to the floor. I ing a little unappreciated, just remember. teachings and work of Dr. Martin Luther King, want to thank our senior member of Blessed are you when people insult you, Jr., I profoundly subscribe to the principles of our committee, the gentleman from persecute you and falsely say all kinds of nonviolence and implore us to consider the evil against you because of me. Rejoice and American Samoa (Mr. FALEOMAVAEGA) teachings of Dr. King as we address the crisis be glad, because great is your reward in in Kosovo. In speaking about the Vietnam war for his participation, and thank all of heaven, for in the same way they persecuted those who participated in this tribute the prophets who were before you. You are in his speech A Christmas Sermon on Peace to Reverend Jesse Jackson, and to his the salt of the earth. But if the salt loses its found in his last book, The Trumpet of Con- fellow clergymen who participated saltiness, how can it be made salty again? It science, Dr. King wrote: ``But one day we with him in this admirable under- is no longer good for anything, except to be must come to see that peace is not merely a taking in releasing our prisoners. thrown out and trampled by men. You are distant goal we seek, but that it is a means by Mr. THOMPSON of Mississippi. Mr. Speak- the light of the world. A city on a hill cannot which we arrive at that goal. We must pursue be hidden. Neither do people light a lamp and er, the Rev. Jesse Jackson is truly one of peaceful ends through peaceful means. All of put it under a bowl. Instead they put it on this is saying that, in the final analysis, means America's unsung heroes, and today I stand its stand, and it gives light to everyone in before you to sing his praises. the house. In the same way, let your light and ends must cohere because the end is For many years, conservatives have held shine before men, that they may see your pre-existent in the means and ultimately de- Jesse Jackson up as the poster child for lib- good deeds and praise your Father in heaven. structive means cannot bring about construc- eral causes. Ms. NORTON. Mr. Speaker, I thought that I tive ends.'' They have chastised him and demonized should go to Andrews Airport Air Force Base Based upon these principles of non-vio- him. yesterday to welcome Jesse Jackson home. lence, it is with enthusiasm and pride that I They have cursed him and mocked him. Reverend Jackson had helped raise the con- applaud Reverend Jackson and his delegation And at the same time they wear their sciousness of the nation to freedom concerns for opening important, new diplomatic chan- version of Christian values on their lapels, in the District of Columbia when he was state- nels. While I have not seen Milosevic's letter they look down on everyone that does not hood senator and lived here a few years ago. to President Clinton, I am very hopeful that conform to their narrowly interpreted set of I thought that I should be there to greet him our President will view the letter as a possible rules. for bringing a freedom message to President opportunity to renew dialog to seek a political However, if ever there was a person who Slobodan Milosevic, who heard Jesse Jackson settlement to this horrific crisis. I pray that this exemplified the morals and the values es- and freed the three American servicemen. will set in motion a process that ends the poused by Christ, that person is the Rev. I listened intently to Rev. Jackson's com- bloodshed in Yugoslavia and leads to sustain- Jesse Jackson. In the Book of Matthew, Chap- ments at the airport. He detailed how he had able and long-term peace in the Balkans. H2608 CONGRESSIONAL RECORD — HOUSE May 4, 1999 Mr. Speaker, I have no further re- ‘‘This is an unpleasant task,’’ said Bill uary 6, 1999, and under a previous order quests for time, and I yield back the Rasor, personnel program manager for the of the House, the following Members balance of my time. district. will be recognized for 5 minutes each. Many of the trustees lamented the nec- The SPEAKER pro tempore. The essary move—by contract the district must f question is on the motion offered by give teachers notice—but it was not unex- The SPEAKER pro tempore. Under a the gentleman from New York (Mr. pected. previous order of the House, the gen- GILMAN) that the House suspend the Tuesday’s meeting included more proposed considerations for reductions as part of the tleman from Illinois (Mr. LIPINSKI) is rules and agree to the resolution, recognized for 5 minutes. House Resolution 156, as amended. ongoing budgeting process that has been consuming the district and the trustees for at (Mr. LIPINSKI addressed the House. The question was taken; and (two- least a month. His remarks will appear hereafter in thirds having voted in favor thereof) A new consideration presented to the board the Extensions of Remarks.) the rules were suspended and the reso- Tuesday included eliminating a $15,000 con- lution, as amended, was agreed to. tract for high school students with the Mon- f The title was amended so as to read: tana Science Institute, based at Canyon ORDER OF BUSINESS ‘‘Resolution commending the Reverend Ferry Lake. Also discussed were a few revised pro- Mr. THUNE. Mr. Speaker, I ask Jesse L. Jackson, Sr. on securing the posals, including that of the gifted and tal- unanimous consent that time allocated release of Specialist Steven Gonzales of ented program. The program would not be to the gentleman from Indiana (Mr. Huntsville, Texas, Staff Sergeant An- completely eliminated as was suggested ear- BURTON) and the time allocated to me drew Ramirez of Los Angeles, Cali- lier this month. be reversed on the schedule. fornia, and Staff Sergeant Christopher Under a new model, the district would re- The SPEAKER pro tempore. Is there Stone of Smiths Creek, Michigan, from tain two gifted and talented staff members to coordinate services and consult with objection to the request of the gen- captivity in the Federal Republic of classroom teachers. tleman from South Dakota? Yugoslavia.’’. ‘‘We’re regrouping . . . maybe we’re not There was no objection. A motion to reconsider was laid on quite ready to hand it off entirely.’’ Super- the table. intendent Bruce Messinger noted. f Also revised was the issue of increasing f class size, which of district hoped to boost to IDEA FUNDING ‘‘WE, THE PEOPLE, CITIZEN AND save money. Under a new proposal, class The SPEAKER pro tempore. Under a CONSTITUTION PROGRAM’’ sizes in the early primary grades (kinder- previous order of the House, the gen- garten through second grade) (kindergarten tleman from South Dakota (Mr. (Mr. HILL of Montana asked and was through second grade) would stay small. However, class sizes would be raised to 26 THUNE) is recognized for 5 minutes. given permission to address the House Mr. THUNE. Mr. Speaker, today the for 1 minute and to revise and extend students in third grade, 28 in fourth grade and 30 in fifth grade. The changes in staffing, House passed House Concurrent Reso- his remarks.) coupled with savings in physical education lution 84, which I think is important Mr. HILL of Montana. Mr. Speaker, and the music program, could save $116,000, for a number of reasons. There is no earlier this week more than 1,200 stu- according to district projections. higher priority, I believe, than our dents from across the United States Trustees also mulled a revision in the ‘‘significant writing’’ program to cut four full- children’s education. were here in Washington to compete in I have a third grader and a fifth grad- the national finals of the ‘‘We, the Peo- time positions at a savings of $116,000. This year’s budget crunch is not an anom- er who attend Oscar Howell Elemen- ple, Citizen and Constitution Pro- aly. Messinger presented a glimpse of a budg- tary, the public school system in Sioux gram.’’ et picture for the next four years that points Falls, South Dakota, in the Sioux Falls I am proud to announce that a high to a further decline in enrollment. Enroll- School District. The school board elec- school class from Polson High School ment in Montana is directly linked to the tion is coming up in June. There are no in Polson, Montana, represented the amount of funding a district receives. ‘‘It’s not going to get any prettier,’’ said fewer than 12 people running for one State of Montana in this national position on the school board, and we event. These young scholars have trustee Brenda Nordlund. Many trustees also had strong words for will have the opportunity to choose a worked diligently to reach the national the Legislature, which they accused of not very qualified member of the school finals and, through this experience, paying attention to the plight of many of the board. I am delighted to have that have gained a deep respect and a great- state’s larger districts that are unable to le- many people who are interested in er knowledge and a greater under- gally raise additional funds. ‘‘We’re pushing hard against the ceiling seeking and holding that very impor- standing of the fundamental principles tant position. and the values of our constitutional and it’s coming down on us,’’ Messinger noted. The concurrent resolution that we Republic. The district’s difficulties—along with the passed today in the House was a non- ‘‘We, the People’’ is the most exten- hours spent poring over numbers and fi- binding resolution. But, nevertheless, I sive education program in the country nances—brought at least one trustee to near think is important, for several reasons. tears at the board meeting. that was developed to educate young It compels the will of this House that people about the Constitution and the ‘‘I find this a tremendously humbling experience,’’ said trustee Julie Mitchell. special education be funded before any Bill of Rights. This program has pro- She added that she realizes the district other new education initiatives are vided classroom materials at elemen- must pare its expenses, but the task is unfunded. That makes basic sense. The tary and middle and high school levels pleasant and unavoidable. special education mandate, IDEA fund- for more than 261⁄2 million students ‘‘In the end we have to decide and someone’s going to be mad,’’ she said. ing, is a Federal mandate and, there- across the country. fore, should be federally funded. I am proud of the students from But she admonished both the public and trustees to remember that the district deliv- Twenty years ago the Congress com- Polson, Montana, and I commend them ers a quality education and will continue to mitted to fund special ed at 40 percent for their dedication to a better under- do so, in spite of the financial crunch. of the total funding level. We are not standing of their Government. ‘‘There are some incredibly cool things even close to that today, not even going on . . . we give our kids a fantastic Mr. Speaker, I include the following close. I am pleased that the Republican newspaper article for the RECORD: education.’’ Trustees also reminded the public that Congress in the last years has begun NONTENURED TEACHERS CUT: BOARD VOTES TO none of the proposed reductions have been moving in that direction. In fact, we SLICE 60 POSITIONS TO HELP SAVE $1M decided and urged continued public input. have backed up our rhetoric with our (By Leslie McCartney) ‘‘This is not set in concrete,’’ Trustee Rich action. The teaching contracts of more than 60 Moy said. If we look at where the President’s nontenured teachers will not be renewed, A public hearing on the budget is set for March 16. budget has been in the last several Helena School District trustees reluctantly budget years, in fiscal year 1997 the Re- voted Tuesday night. f publican Congress upped the Presi- The district is facing serious financial SPECIAL ORDERS problems. The district is seeking ways to dent’s request for IDEA funding for slice $1 million expenses from its 1999–2000 The SPEAKER pro tempore. Under special ed by 19 percent. In 1998 we in- school year budget. the Speaker’s announced policy of Jan- creased the funding level for special ed May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2609 by 17 percent over the President’s re- my view, is where we ought to put the 102 counties have benefited from this quest. And in 1999 the Congress in- point of control. most intimate form of government. creased the level of spending over the And so the resolution that we acted Today, Oak Park is a thriving com- President’s request by 13 percent. upon today, I think, speaks loud and munity of more than 53,000 people, There is a pattern and a history and clear that this Congress will continue known for its architectural heritage. a commitment on the part of this Con- to move in the direction of seeing that Within its 4.5 square miles lives a di- gress to see that the Federal Govern- the Federal mandate special education, verse mix of people with different cul- ment honors the commitment that it which we have a responsibility for 40 tures, races and ethnicities, profes- has made to local school district across percent of, that we continue to move in sions, lifestyles, religions, ages and in- this country. So it is very important, I the direction, as we have here in the comes. think, that this resolution expresses past few years in this Congress, to see Primarily a residential community the will of the House that we will fully that we honor that commitment to all bordering the city of Chicago, Oak fund special ed and move in that direc- of our students across this country and Park is the birthplace and childhood tion. particularly to those who have disabil- home of novelist Ernest Hemingway. The other thing I think is important ities. An annual festival has traditionally with respect to this resolution is that I look forward to working toward been held to celebrate his July birth whenever the Federal Government im- that end and as we go through the ap- date. poses mandates on local school dis- propriations process within the con- Architect Frank Lloyd Wright lived tricts and school boards, we take away fines of a balanced budget agreement in Oak Park from 1889 to 1909, and 25 and deprive them of critical decision- to see that that gets done. buildings in the village were designed making authority. f by him, including his first public build- I just mentioned that we have 12 peo- ing, Unity Temple, a Unitarian Univer- ple seeking the school board position REPORT ON RESOLUTION PRO- salist church. His restored home and for one position in the Sioux Falls VIDING FOR CONSIDERATION OF studio is open for daily hours, and School District. Using the resources H.R. 833, BANKRUPTCY REFORM there are many architecturally signifi- that they have to fund the special ed ACT OF 1999 cant homes ranging from Victorian to mandate deprives them of using re- Mr. SESSIONS, from the Committee prairie style in the village’s two his- sources that could be allocated for on Rules, submitted a privileged report toric districts. other important things like building (Rept. No. 106–126) on the resolution (H. Other famous Oak Parkers include new schools, hiring new teachers, re- Res. 158) providing for consideration of Edgar Rice Burroughs, the creator of ducing class sizes, or buying more com- the bill (H.R. 833) to amend title 11 of Tarzan; Dr. Percy B. Julian, an out- puters. the United States Code, and for other standing African American chemist I will use my State of South Dakota purposes, which was referred to the whose research led to the development as an example. If we were fully funding House Calendar and ordered to be of cortisone; Joseph Kerwin, an astro- the mandate on special education printed. naut on the first NASA Skylab team; today, we would be looking at an addi- f Ray Kroc, the founder of McDonald’s; tional $18 million coming into South and Marjorie Judith Vincent, the 1991 Dakota. And if each State would look The SPEAKER pro tempore. Under a Miss America. at their own statistics, I think they previous order of the House, the gen- Oak Park is also home to former would find similar types of relation- tleman from Washington (Mr. BAIRD) is president of the Illinois Senate and re- ships between the current funding lev- recognized for 5 minutes. cently appointed chairman of the Illi- els and where it should be if the Fed- (Mr. BAIRD addressed the House. His nois Board of Higher Education, the eral Government was living up to the remarks will appear hereafter in the honorable Phillip Rock. mandate. Extensions of Remarks.) The Oak Park River Forest High As I said earlier, there is no higher f School is recognized as one of the best priority than providing quality edu- The SPEAKER pro tempore. Under a public high schools in the Nation, cation to children with disabilities and previous order of the House, the gen- Fenwick is an outstanding Catholic at the same time freeing up resources tleman from Wisconsin (Mr. RYAN) is school, and the city is currently in- that local decision-makers can use to recognized for 5 minutes. volved in the redevelopment of down- improve the quality of education for (Mr. RYAN of Wisconsin addressed town Oak Park with new retail anchors all of our students across this country. the House. His remarks will appear and an intermodal transportation facil- And so I believe that the vote that hereafter in the Extensions of Re- ity. we made today in the House is impor- marks.) In 1968, the village board approved tant, as we move down that direction f one of the Nation’s first local fair hous- and look at what we can do to further ing ordinances outlawing discrimina- increase the funding level, to honor the COMMENDING OAK PARK, ILLI- tion. In 1973, the board approved its commitment that the Federal Govern- NOIS, ON 150 YEARS OF TOWN- first Oak Park diversity statement; ment has made to the local school SHIP GOVERNMENT and, in 1976, Oak Park was designated boards across this country, to see that The SPEAKER pro tempore. Under a an all-American city. those Federal mandates that we impose previous order of the House, the gen- One thing that has not changed in upon local school boards are fully fund- tleman from Illinois (Mr. DAVIS) is rec- Oak Park during the past 150 years is ed so that our school districts and ognized for 5 minutes. the person-to-person service provided those decision-makers at the local Mr. DAVIS of Illinois. Mr. Speaker, by township officials and township gov- level have an opportunity to do what 150 years ago in 1849, Oak Park, Illinois ernment in Illinois. When Illinois vot- they do best, and that is try and give was just 10 years old, with a total popu- ers chose township government, they our children the very best education lation of less than 500 people. chose the oldest form of government on possible. There were no streets lined with the North American continent. The And I again would simply say that, as Frank Lloyd Wright architecture. Pilgrims brought the concept of town- a matter of principle, I believe that There was no elevated train system for ship government with them when they this Republican Congress is committed rapid transit to the City of Chicago. landed on the eastern seaboard in 1636. to seeing that more of that decision- There was no light bulb, no telephone More than a century before the Revolu- making authority is retained at the or automobile. No one had heard of the tionary War, townships were giving local level and that our parents, our computer, Internet, or e-mail. communities a local and independent teachers, our administrators and our voice in matters of government and b school boards are those who are in the 1945 order. best position to make decisions about In 1849, township as a local form of Today, as we prepare to move into the quality and the funding of our chil- government was established in Illinois, the 21st century, government in Illi- dren’s education. And that frankly, in and since then, voters in 85 of Illinois’ nois still thrives. More than 8 million H2610 CONGRESSIONAL RECORD — HOUSE May 4, 1999 Illinoisans are served by the 1,433 town- thing in an efficient or economical The Air Force should publicly apolo- ships in the State. This year, on April way. gize for dropping this $3 billion down 3rd, townships held their annual meet- But this Titan IV program really this Titan IV rat hole. The Congress ings, which is unique to this form of takes the cake. Three failures at a cost should be assured that nothing like government, where any citizen can step of $3 billion; $3 billion down the drain. this will ever happen again. up to the plate and voice any concern What really adds insult to injury, Mr. It is really sad, Mr. Speaker, to take that they have about the government. Speaker, is that, because this is the $3 billion from the families and chil- In this regard, townships are truly the Federal Government, no one will really dren of this country, many of whom government closest to the people they be held accountable for this. In the pri- are barely getting by, to give to highly govern as they continue to provide vate sector if a company had three paid bureaucrats and Air Force officers functions and services which are vi- major failures like this, heads would to just blow in this way. What would be tally important. roll in a big way. Of course, in the pri- even sadder would be if the Air Force I take this moment after 150 years to vate sector, no company could afford $3 and everyone associated with these commend and congratulate the people billion in failures unless possibly it was failures is not deeply embarrassed and of Oak Park, Illinois, for dem- a big-time Federal contractor sub- ashamed. onstrating that democracy can be sidized by the taxpayer. f The Appropriation Committees of the made real and that township govern- The SPEAKER pro tempore. Under a House and Senate should demand ac- ment can in fact and does in fact work. previous order of the House, the gentle- countability here. They should not f woman from the District of Columbia stand for $3 billion from three failed The SPEAKER pro tempore (Mr. (Ms. NORTON) is recognized for 5 min- launches. THUNE). Under a previous order of the But the easiest thing in the world, utes. House, the gentleman from Missouri Mr. Speaker, is to spend other people’s (Ms. NORTON addressed the House. (Mr. HULSHOF) is recognized for 5 min- money. So what are we going to do? Her remarks will appear hereafter in utes. Thursday we are going to give big in- the Extensions of Remarks.) (Mr. HULSHOF addressed the House. creases in pay and pensions and fund- f His remarks will appear hereafter in ing for the same Air Force that has sat CRISIS IN KOSOVO the Extensions of Remarks.) around and allowed this $3 billion in f failures to occur. The SPEAKER pro tempore. Under a previous order of the House, the gen- EXCHANGE OF SPECIAL ORDER Federal employees are great at rationalizing or justifying even ridicu- tleman from Indiana (Mr. SOUDER) is Mr. DUNCAN. Mr. Speaker, I ask lous losses. I am sure that the Air recognized for 5 minutes. unanimous consent that I be given the Force will have some great excuses, Mr. SOUDER. Mr. Speaker, last week time of the gentleman from Missouri and everyone connected with this will we had a historic symbolic vote on the (Mr. HULSHOF) and that he be given my be able to explain why it was not their war. This House voted against ground time on the list so that I can resume fault. Well, somebody is at fault and troops. We also voted against, in a tie my place in the chair following the 5- probably several people, and they vote, a resolution to support the air minute special order. should lose their jobs over this. war. This week we have the real vote. The SPEAKER pro tempore. Is there Even though we talk about a billion Are we going to fund the war? Are we objection to the request of the gen- dollars up here like it was very little, just talk or are we going to actually tleman from Tennessee? $3 billion is still an awful lot of money. cut off the funds for the war? There was no objection. This satellite, as I said earlier, cost There are three goals that have con- f $800 million. Last Friday’s mission sistently been stated by NATO and by alone cost $1.23 billion. Just think how our government. One is to degradate AIR FORCE BOONDOGGLES COST much good could have been done with the military forces or sufficiently de- TAXPAYERS BILLIONS the total $3 billion in losses in this grade the military forces of the Yugo- The SPEAKER pro tempore. Under a Titan IV Air Force program. slav government so that we can move previous order of the House, the gen- Now, I favor a strong military and I hundreds of thousands of refugees tleman from Tennessee (Mr. DUNCAN) is believe we should have a strong Air back, and then manage it with a peace- recognized for 5 minutes. Force, but I do not believe we should keeping force. I would put forth that Mr. DUNCAN. Mr. Speaker, last week just sit back and allow any part of the anybody who has listened to any of the it was reported by the Associated Press military to throw away $3 billion. We military briefings we have had, who that an Air Force communications sat- should not just cavalierly accept this. have listened to the public reports, un- ellite worth $800 million had ended up Several years ago, Edward Rendell, derstand fundamentally that this is an in the wrong orbit. This was the third the Democratic Mayor of Philadelphia, unachievable goal. Milosevic under- failure in a row for the Air Force Titan said at a congressional hearing, ‘‘Gov- stands that. When are the American IV program, at a total loss to the tax- ernment does not work because it was people going to be told the truth, that payers of over $3 billion. This latest not designed to. There is no incentive our fundamental goals are satellite not only ended up in the for people to work hard so many do unachievable? wrong orbit, it ended up in a lopsided not. There is no incentive for people to First off, the military has been say- orbit thousands of miles below its in- save money so much of it is squan- ing all the way along, this cannot be tended orbit. dered.’’ accomplished just by an air war. They I have taken the floor many times How true this statement was and is. are hopeful that they can bring him to over the years to point out examples of This is why it has been proven over and the table, but what do they mean when wasteful or exorbitant Federal spend- over and over again all over this world they say this cannot be accomplished ing. John Martin has for several years that the more money that can be left just by an air war? had a segment called It’s Your Money in the private sector, the better off ev- He has dug in, he is fighting in moun- on the ABC national television news, eryone is; the lower prices are, the tainous terrain, he has supplies that pointing out almost every week some more jobs that are created, the better are going to last him an extended pe- example of horrible Federal waste. He the economy is. riod of time, and we read just last week has performed a great service to this Competitive pressures force the pri- that our military says that after 30 Nation in bringing this series to the at- vate sector to spend money wisely, to days of bombing, we have a net deg- tention of the American people. spend it in economical, efficient, con- radation of his military forces of zero. The examples, unfortunately, are far servative, productive ways. Private That does not mean that we have not too easy to find. Examples of ridicu- companies do not have the luxury the impacted his long-term ability to wage lously wasteful Federal spending are government has of being able to waste war, we have blown up a lot of factories everywhere. It has made me wonder if billions with almost no meaningful reso he cannot reproduce, we have re- the Federal Government can do any- percussions. duced some of the supply of gasoline May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2611 into the country but he only needs 10 war. It was an ill-conceived war. We the House, the gentleman from New percent and they are saying currently bluffed something that we cannot de- Jersey (Mr. PALLONE) is recognized for that 75 percent of their oil supplies are liver. We saw this in Vietnam. We saw 5 minutes. still there, we have only degraded 25. it with the Russians in Afghanistan. (Mr. PALLONE addressed the House. Three weeks ago they told us we had We cannot win this on the ground or in His remarks will appear hereafter in degraded 35, 2 weeks ago 30, now it is the air alone without multiple years the Extensions of Remarks.) 25. We are headed the wrong direction. and destruction beyond imagination, f They say, well, that is because of bad and then we are still just bogged down. weather. The Balkans, when you read The bottom line is this. If we give The SPEAKER pro tempore. Under a history books, always has bad weather. him $12.9 billion, this current Presi- previous order of the House, the gen- Furthermore, mountains in this time dent, then he could potentially, with- tleman from Pennsylvania (Mr. of year always have bad weather. This out a lot of protection for this bill, di- TOOMEY) is recognized for 5 minutes. was no surprise. The Apache heli- vert it to the ground war without ever (Mr. TOOMEY addressed the House. copters were not designed to go in to coming to Congress. This is not just His remarks will appear hereafter in take out tanks. They were designed to the $3.3 billion to continue the war. the Extensions of Remarks.) go in with American forces on the While our intent is to rebuild a mili- f ground as support. We are going to lose tary that he has devastated, our good The SPEAKER pro tempore. Under a a lot of pilots and not accomplish our intent could be used to fund a war, an previous order of the House, the gen- goal if we are not careful with how we expanded war where thousands of lives tleman from Oregon (Mr. BLUMENAUER) use Apache helicopters. are lost, where the negotiated settle- is recognized for 5 minutes. The American people need to under- ment in the end is just like the nego- (Mr. BLUMENAUER addressed the stand the air war cannot solve the tiated settlement we would have House. His remarks will appear here- problem of getting the refugees back. roughly had in the beginning. after in the Extensions of Remarks.) The ground war cannot, either. A fun- If we get blamed this week because damental map, and you cannot see a we stopped the funding and the Presi- f lot of the details with this map but dent of the United States says the Re- The SPEAKER pro tempore. Under a fundamentally you can tell one thing publicans stopped the war, which would previous order of the House, the gen- right away, there is lot of brown and be untrue because it was an ill-con- tleman from Kansas (Mr. MORAN) is yellow down here. This is Albania, this ceived war in the first place, so what? recognized for 5 minutes. is Macedonia, and here is Kosovo. If we saved American lives, that is (Mr. MORAN of Kansas addressed the Now, to force your way in there, you what we are here to do, not to play pol- House. His remarks will appear here- have to go through mountains of 8,000 itics. after in the Extensions of Remarks.) feet. That is why the Ottoman Empire At this point it is the job of this Con- stopped when it came in here. That is gress to stand up and say, we know, f why Hitler could not make it through both from the public statements and The SPEAKER pro tempore. Under a this part. There is no way we can put our private briefings that this cannot previous order of the House, the gen- ground troops in through Albania or be accomplished. It is time to get to tleman from Washington (Mr. SMITH) is Macedonia or come in through the table, because at most what we are recognized for 5 minutes. Thessaloniki because, A, they do not arguing about is how to divide Kosovo (Mr. SMITH of Washington addressed want us to go through there but, B, at this point. It is not even clear in the the House. His remarks will appear even if they wanted to and even if we end that we are going to have a better hereafter in the Extensions of Re- rebuilt airports and even if we built arrangement than we had in the begin- marks.) more roads through the mountains, we ning because now after all this bomb- f are not going to dislodge him through ing, after the Kosovars are legiti- the mountains. It does not work. mately upset about the slit throats, The SPEAKER pro tempore. Under a Our military understands. Any gen- the massacres and so on, they want to previous order of the House, the general who has ever looked at this under- be independent. tleman from South Carolina (Mr. stands that if you have a ground war, What are we going to tell the Pal- DEMINT) is recognized for 5 minutes. you are coming through the top where estinians when they want to be inde- (Mr. DEMINT addressed the House. all this green area is. That is where in- pendent? And what are we going to tell His remarks will appear hereafter in vasions of the Balkans have always oc- the Kurds when they want to be inde- the Extensions of Remarks.) curred. But now we are not just talking pendent? And what about the sub- f a few thousand troops, we are talking sections of India? And what about the The SPEAKER pro tempore. Under a potentially 400,000 troops, potentially Chechnya area of Russia? previous order of the House, the gentle- all or mostly American troops, a min- b 2000 woman from Oregon (Ms. HOOLEY) is imum, according to estimates, of 20,000 recognized for 5 minutes. dead up to 50,000 dead, and having to Are we going to intervene all over (Ms. HOOLEY of Oregon addressed fight our way through Belgrade and and, all of a sudden, have a new inter- the House. Her remarks will appear Yugoslavia. national policy because we got in a bad hereafter in the Extensions of Re- The people need to understand this is war with an ill-conceived strategy? marks.) not just a magic little war where we And if we continue this, and we con- are going to drop a few bombs and he is tinue to fight this and we continue to f going to surrender. The truth needs to put the money in, we only dig our- The SPEAKER pro tempore. Under a be told. Those who advocate a ground selves deeper in more graves. previous order of the House, the gen- It is time for this Congress to stand war and those who advocate an air war tleman from Virginia (Mr. BATEMAN) is up and say: need to explain, it is not going to de- recognized for 5 minutes. ‘‘Get to the table now. We’re not liver. The only hope is to get him to (Mr. BATEMAN addressed the House. going to fund this war. It’s unwinnable. the table. We have to have the courage. His remarks will appear hereafter in The settlement you are going to get Before we pass a bill this week, if we the Extensions of Remarks.) do, we should first try to take the now is probably as good a settlement funds out. I will have a series of as we’re going to get later, only with f amendments and other Members will, fewer Americans’ lives lost, with fewer The SPEAKER pro tempore. Under a too, to take the funds out to continue dollars spent and with less inter- previous order of the House, the gentle- this war. national problems than if we settle it woman from California (Ms. WOOLSEY) I know some people are concerned right now.’’ is recognized for 5 minutes. that the President is then going to f (Ms. WOOLSEY addressed the House. blame Congress for having lost the war. The SPEAKER pro tempore (Mr. Her remarks will appear hereafter in I tried to explain, we did not lose the SWEENEY). Under a previous order of the Extensions of Remarks.) H2612 CONGRESSIONAL RECORD — HOUSE May 4, 1999 WE ARE SPREADING OUR we said that in Fiscal Year 1999, the are going to pass a budget for the first MILITARY TOO THIN year that we are in right now, we said time in American history or for the The SPEAKER pro tempore. Under a that we would spend $267 billion on de- first time in recent history that actu- previous order of the House, the gen- fense. That is what we said we would ally balances the budget, and for the tleman from Minnesota (Mr. GUT- spend this year. Well, according to the first time saying that every penny of KNECHT) is recognized for 5 minutes. Congressional Budget Office, we actu- Social Security taxes will go only for Mr. GUTKNECHT. Mr. Speaker, later ally will spend this year $273 billion. Social Security. That was just a few this week we are going to be asked to So, in other words, we are already weeks ago. Well, I meant it when I said take a very, very difficult vote, and it spending $6 billion more on defense it then, and I think most of my col- will involve how much should the Con- than we said we were going to be leagues meant it, and I think we ought gress authorize to spend for this war in spending. to make the tough choice when we the Balkans, and as a previous speaker, Now despite that we are being asked have to vote on this emergency supple- my colleague from Indiana, just said, this week to fund an additional $13 bil- mental where we will already be spend- there are many of us, not only here in lion. Now I go back to my analogy of ing more money than we said we were Congress but around the country, that the peanut butter and jelly. It is not going spend just a few years ago in de- have serious concerns about this war. that we are not giving the military fense. I am willing to give defense the What my colleague from Indiana did enough money or enough peanut butter extra money the President has re- not mention is history, and there is an and jelly, the problem is that we are quested, but I think it ought to come old expression, and I think it is from spreading it far too thin. We currently out of other parts of the budget. Montezuma, who said that those who have troops in 135 different countries. The SPEAKER pro tempore. Under a refuse to learn from history are We are prepared to fight a war in previous order of the House, the gen- doomed to repeat it. Korea, we are prepared to fight a war tleman from Maine (Mr. ALLEN) is rec- Mr. Speaker, let me give the Mem- in the desert, and now we are appar- ognized for 5 minutes. bers a very important history lesson ently going to have to fight a war in (Mr. ALLEN addressed the House. His that the Germans learned in the 1940s, Kosovo. The problem is, Mr. Speaker, remarks will appear hereafter in the in World War II. In World War II the we are spreading ourselves too thin, Extension of Remarks.) Germans sent 400,000 troops into the and at some point we in the Congress f have to say the problem is not that we Balkans, they suffered 70,000 casual- The SPEAKER pro tempore. Under a do not give enough money to the Pen- ties, and at the end of the war they previous order of the House, the gen- controlled less ground than the day tagon, the problem is that the adminis- tleman from Texas (Mr. BRADY) is rec- tration wants to spread that money too that they marched in. ognized for 5 minutes. Mr. Speaker, this is a war that I thinly. (Mr. BRADY of Texas addressed the think we need to think long and hard I simply want to ask my colleagues House. His remarks will appear here- before we get even more deeply in- and the Members of the House a couple after in the Extension of Remarks.) volved, but we had the debate last of very simple and straightforward week on that, and we had our votes, we questions, and frankly as it relates to f had a chance to vote. This week, defense policy, as it relates to foreign CENSUS 2000 though, we are going to get a chance to policy and ultimately as it relates to vote on whether or not we should fund budget policy. We ought to get clear The SPEAKER pro tempore. Under a the war; and then secondly, if the Re- and simple answers to tough questions, previous order of the House, the gentle- publican leadership is successful in the and I would like to propose two ques- woman from New York (Mrs. MALONEY) Committee on Rules, whether or not tions to my colleagues in the House: is recognized for 5 minutes. we should vote for even more funding First of all, should we borrow from Ms. MALONEY of New York. Mr. than the President requested. Social Security to pay for a war in Speaker, once again I rise to point out I want to talk a little bit about his- Kosovo? My answer is no. that the experts support the use of sci- tory as well because we are continually The second question is: Should de- entific methods to correct the census told that we have spread our military fense spending get preferential treat- for undercounts and overcounts. Yes- too thin, and I agree with that. The ment in the appropriations process, or terday the National Academy of truth of the matter is we have spread should we give them a special appro- Sciences released the first report from our military too thin, but I think the priation now? And again my answer is the fourth panel to review the Census best analogy is an analogy of peanut no, and I think the numbers speak for Bureau’s plans for the 2000 census. Yet butter and jelly. We have spread our themselves. again, the experts convened by the peanut butter and jelly entirely too Ultimately, Mr. Speaker, we are Academy endorsed the Census Bureau’s thin, but it is not because we are not going to be asked, Republicans and plan to use science to evaluate and cor- giving our military enough money. Democrats alike: Is this such an impor- rect the census counts. I want to talk a little bit about what tant policy, is this such an important At the end of 1998 the Census Bureau is happening. We have been told, for ex- war, that we are going to take money asked the National Academy of ample, in the last several weeks that out of the Social Security Trust Fund? Sciences to convene a fourth panel to we are about 14,000 sailors short in I hope we will say no. evaluate the Census Bureau’s design terms of our Navy, but do my col- Now my proposal will be that we give for Census 2000. This independent leagues know what? We are not short a the President exactly what he asked panel, like the three that preceded it, single admiral, we are not short any for. He is asking for $6.05 billion in has unequivocally stated that statis- generals. In fact, as this chart indi- emergency supplemental appropria- tical methods work. The Academy cates, in 1945 when we had 12.1 million tions, but I believe we ought to offset panel stated yesterday that the design Americans in uniform, we had 31 gen- that with spending cuts in other parts of the quality control survey rep- erals above the rank of four star. of the government, and that can be resents, and I quote from the panel, Today we have 1.3 million Americans done. In fact, if we do that, it means ‘‘good, current practice.’’ In fact, the in uniform, and we have 33 generals. that every other department will have panel explained, and I quote: So, we may be short on Army per- to cut its appropriations in the next ‘‘Because it is not possible to count sonnel, we may be short on people in several months by about 1 percent. everyone in a census, a post-enumera- the Navy, but we are certainly not Now that is a big cut, but we are tion survey’’ using modern scientific short on generals. talking about a $6 billion cut out of a methods ‘‘is an important element of Let me point out another chart, and $1,700 billion budget. I think we can census planning.’’ this is really for the benefit of my Re- tighten those belts, and that will mean Currently the Census Bureau intends publican colleagues. that we will not be stealing money to use a post-enumeration survey enti- As my colleagues know, just 4 years from Social Security. tled the Accuracy and Coverage Eval- ago we passed a 7-year balanced budget It was only a couple of weeks ago uation or A.C.E. The A.C.E. Survey was plan, and in that balanced budget plan that we here on the House floor said we designed in light of the Supreme Court May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2613 decision regarding the use of statistical NATIONAL RESEARCH COUNCIL, COM- The Census Bureau is considering three methods for the purpose of apportion- MISSION ON BEHAVIORAL AND SO- strategies for selection of the 300,000 ACE ment. Mr. Speaker, we are beginning to CIAL SCIENCES AND EDUCATION, subsample from the 750,000 sample: (1) reduc- Washington, DC, May 3, 1999. ing the sample proportionately in terms of hear criticism of the A.C.E. This Acad- Dr. KENNETH PREWITT, state and other block characteristics from emy report should finally put that crit- Director, U.S. Bureau of the Census, 750,000 to 300,000; (2) reducing the sample by icism to rest. Washington, DC. using varying proportions by state; or (3) dif- ferentially reducing the sample by retaining Yes, the A.C.E. is a different program DEAR DR. PREWITT: As part of its charge, the new Panel to Review the 2000 Census of- a higher proportion of blocks in areas with in its design and size than the survey fers this letter report on the Census Bureau’s higher percentages of minorities (based on that had been planned for Census 2000 plans for the design of the Accuracy and Cov- the 1990 census).4 These options for selection prior to the court case. Those who are erage Evaluation (ACE) survey, a new post- of the 300,000 ACE housing units from the critical of these differences are not re- enumeration survey. This survey is needed in 750,000 units first selected will be carefully evaluated. The plans include three evalua- viewing the details of A.C.E. As the light of the recent U.S. Supreme Court ruling regarding the use of the census for re- tion criteria for assessing the options: (a) to Academy reports, changes in sample apportionment. reduce the estimated coefficients of vari- size as a result of the Supreme Court In general, the panel concludes that the ation for 51 post-stratum groups (related to decision, quote, should not affect the ACE design work to date is well considered. the 357-cell post-stratification design dis- quality, end quote, of the results. In It represents good, current practice in both cussed below); (b) to reduce the differences in sample design and post-stratification design, coefficients of variation for race/ethnicity fact, the panel comments that since and tenure groups; and (c) to reduce the coef- the Bureau will no longer be using sta- as well as in the interrelationships between the two. In this letter the panel offers obser- ficients of variation for estimated state to- tistical methods for apportionment, vations and suggestions for the Census Bu- tals. (Option (3) above is motivated by cri- there is no need for the larger survey reau’s consideration as the work proceeds to terion (b)). Without going into detail, it is envisioned prior to the court decision. complete the ACE design. also useful to mention that the Census Bu- In addition, the Academy notes that it reau has instituted a number of design BACKGROUND changes from the 1990 post-enumeration sur- is appropriate to combine information Because it is not possible to count every- vey for the ACE that will reduce the vari- across States. one in a census, a post-enumeration survey ation in sampling weights for blocks, which Mr. Speaker, yesterday’s report dem- is an important element of census planning. will reduce the sensitivity of the final esti- The survey results are combined with census onstrates the professional community’s mates to results for individual blocks. This data to yield an alternative set of estimated represents a key improvement in comparison continued strong support for the Cen- counts that are used to evaluate the basic with the 1990 design. sus Bureau’s plan for the year 2000 cen- census enumeration and that can be used for The current plan to produce post-strata in- sus. In 1994 the Academy issued its first other purposes. For 2000, an Integrated Cov- volves modification of the 357-cell post-strat- report which laid the foundation for erage Measurement (ICM) survey had been ification design suggested for use in 1990- the current plans. In 1995 a second planned for evaluation and to produce ad- based intercensal estimation. Current modi- justed counts for all uses of the census.1 The fication under consideration by the Census panel reviewing Census Bureau plans at recent U.S. Supreme Court ruling against Bureau include expansion of the geographic the request of Congress in a bipartisan the use of sampling for reapportionment stratification for non-Hispanic whites from way reported that spending more among the states eliminates the need for a four regions to nine census divisions, adding money on traditional methods would post-enumeration survey that supports di- a race/ethnicity group, changing the defini- not improve the accuracy of the counts rect state estimates, as was originally tion of the urbanicity variable, and adding new post-stratification factors, such as mail or the census. Earlier this year a third planned for the ICM survey. (The state allocations of the ICM sample design deviated return rate at the block level. Logistic re- panel of experts convened by the Na- markedly from a proportional-to-size alloca- gression, modeling inclusion in the 1990 cen- tional Academy of Sciences said that it tion in order to support direct state esti- sus, is being used to help identify new vari- strongly supports the use of a quality mation. Specifically, the ICM design re- ables that might be useful, as well as to pro- control survey to correct for errors in quired a minimum of 300 block clusters in vide a hierarchy of the current post-strati- the census. each state.) Alternative approaches are now fication factors that will be used to guide possible for both sample and post-stratifica- collapsing of cells if that is needed. (In com- I support counting everyone. The Na- tion designs for the 2000 ACE survey. As a re- parison, the analysis that generated the 357- tional Academy of Sciences has stated sult, the planned ACE post-enumeration sur- cell post-stratification was based on indirect for the fourth time that the best way vey will differ in several important respects measures of census undercoverage, such as from the previously planned ICM survey. the census substitution rate.) to count the population is to use mod- The Census Bureau plan demonstrates ern scientific methods. I am going to PLANS FOR ACE SAMPLE AND POST- awareness of the interaction of its modifica- rely on the opinion of these inde- STRATIFICATION DESIGN tion of the 750,000 housing unit sample design pendent, impartial scientists at the Na- Our understanding of the current plans for with its modification of the 357 post-strata tional Academy of Sciences. These ex- the ACE survey is based on information from design. (On the most basic level, the sample Census Bureau staff.2 Building on its work perts say the plan devised by the pro- size allocated to each post-stratum deter- for the previously planned ICM, the Census mines the variance of its estimate.) The plan fessionals at the Census Bureau will Bureau will first identify a sample of block also makes clear that even though much of give us the most accurate count. That clusters containing approximately 2 million the information used to support this modi- is the plan that I support. housing units and then will independently fication process must be based on the 1990 develop a new list of addresses for those census, it is important that the ultimate de- If my colleagues agree with me, that blocks.3 In a second stage, a sample of block sign for the ACE survey (and any associated we should count everyone, then they clusters will be drawn from the initial sam- estimation) allows for plausible departures should join me in getting out of the ple to obtain approximately 750,000 housing from the 1990 findings. For example, signifi- way of the professionals at the Census units, which was the number originally cant differences between the 1990 and 2000 Bureau. Let us let the professionals do planned for the ICM. (Larger block clusters censuses could stem from the change in the what they are hired to do, count peo- will not be drawn in their entirety; they will surrounding block search for matches, the first be subsampled to obtain sampling units planned change in the treatment of ACE ple, and let us let them do it in the of 30–50 housing units. Because the costs of movers, or changes in patterns and overall best way they can. We should be en- interviewing are so much greater than the levels of household response. couraging the use of modern scientific costs of listing addresses, this subsampling OBSERVATIONS AND COMMENTS methods in Census 2000, not preventing approach allows the interviewed housing Sample design to select the 300,000 housing units them. units to be allocated in a more effective Because of the need to keep the ACE on manner.) Finally, in a third stage, a sample Mr. Speaker, I would like to put into schedule by initiating resource allocations of block clusters will be drawn from the sec- that support the independent listing of the 2 the RECORD the report from the Na- ond-stage sample to obtain the approxi- million addresses relatively soon, as well as tional Academy of Sciences, the fourth mately 300,000 housing units required for the the need to avoid development and testing of report that has come out in support of ACE sample. The target of 300,000 housing new computer software, the Census Bureau the use of modern scientific methods units for the ACE, which may be modified has decided to subsample the 300,000 ACE somewhat, will be based on a new set of cri- housing units from the 750,000 housing units for the most accurate count in count- teria that are not yet final. ing all Americans. of the previously planned ICM design. The panel agrees that operational considerations The report referred to as is follows: 1Footnotes at end of attachment to the letter. support this decision. H2614 CONGRESSIONAL RECORD — HOUSE May 4, 1999 The cost of the constraint of selecting the mates not only for validation, but also in es- ysis of substate areas appears in both sample 300,000 ACE housing units from the 750,000 timation—in case of a failure of the assump- design and post-stratification design is an in- ICM housing units, in comparison with an tion that there will be no important state ef- dication of the important interaction be- unconstrained selection of 300,000 housing fects on undercoverage factors. Specifically, tween these two design elements and justi- units, is modest. While the constrained se- the Census Bureau should examine the feasi- fies the need for studies of them to be carried lection will likely result in estimates with bility of combining the currently planned out simultaneously. The panel encourages somewhat higher variances, the panel be- ACE estimates at the state level with the di- the Census Bureau to work on them at the lieves that careful selection of the subsample rect state estimates, using estimated mean- same time. can limit the increase in variance to that it squared error to evaluate the performance of The panel notes that the decision to use a will not be consequential. (By careful selec- such a combined estimate in comparison modification of the 357-strata system from tion, the panel means use of the suggested with the currently planned estimates. We 1990 for the ACE post-stratification design approaches of the Census Bureau, or new or understand that the necessity of will probably not permit many checks hybrid techniques, to identify a method that prespecification of census procedure requires against estimates from demographic anal- best satisfies the criteria listed above.) This that the Census Bureau formulate an esti- ysis that use direct estimates from ACE. judgment by the panel, although not based mation strategy prior to the census, which This limitation may increase the difficulty on a specific analysis by itself or the Census adds urgency to this issue. of identifying the precise source of large dis- Bureau, takes into account the fact that a Finally, the panel has two suggestions crepancies in these comparisons. However, large fraction of the 750,000 housing units of with respect to the criteria used for assess- the panel does not view this is a reason not the ICM design are selected according to cri- ing the ACE sample design. First, there proceed, since the precision of direct esti- teria very similar to those proposed for the should be an assessment of the quality of the mates at the finest level of detail of post- ACE design. estimates for geographical areas at some stratification (using 1,392 strata in this con- In addition, the panel notes that the re- level of aggregation below that of states, as text) could make such comparisons more dif- moval of the requirement for direct state es- deemed appropriate by the Census Bureau. ficult to interpret, and the estimates from timates permits a substantial reduction in (This criterion is also important for evalu- demographic analysis are not extremely use- sample size from the 750,000 ICM design in ating the ACE post-stratification design, dis- ful for this purpose (except for blacks, and sparsely populated states, for which ACE es- cussed below.) Second, the importance of then only nationally). timates can now pool information across equalizing the coefficients of variation for As work on both the sample design and states. As a result the ACE design could re- different post-strata depends on how esti- post-stratification design progresses, the sult in estimates with comparable reliability mates for specific post-strata with higher co- Census Bureau should not rely entirely on to that of the previously planned, much larg- efficients of variation for post-strata that do information from the 1990 census: substan- er ICM design. not have much effect have less need to be tial differences might occur between the 1990 Given the freedom to use estimates that controlled, assuming that the estimates for and the 2000 censuses that would lead to ei- borrow strength across states, the final ACE these post-strata do not have other uses. ther a sample design or a post-stratification sample should reduce the amount of sam- Post-stratification plans design that was optimized for 1990 but that pling within less populous states from that might not perform as well in 2000. Instead, The 1999 census adjusted counts used 1,392 for the preliminary sample of 750,000 housing the Census Bureau should use a sample de- post-strata, but post-production analysis for units. However, there is a statistical basis ei- sign that moves toward a more equal prob- calculating adjusted counts for intercensal ther for retaining a minimum ACE sample in ability design than 1990 information would purposes resulted in the use of 357 post-stra- each state, or what is nearly equivalent, for suggest. Similarly, the Census Bureau, using ta. The panel believes that the use of these retaining a sample to support an ACE esti- whatever information is available since 1990 357 post-strata (and the hierachy for col- mate with a minimum coefficient of vari- on factors related to census undercoverage, lapsing post-stratification cells) was a rea- ation. The estimation now planned for the should develop a post-stratification design sonable design for 1990, and that, in turn, the ACE survey assumes that there will be no that will perform well for modest departures 1990 design is a good starting point in deter- important state effects on post-stratum from 1990. undercoverage factors. In evaluating the mining the post-strata to be used in the 2000 Finally, when considering criteria for both quality of ACE estimates, it will be impor- ACE. The Census Bureau is considering four sample design and post-strata, it is important to validate this assumption, which can types of modifications to the 357 post-strata tant to keep in mind that the goal of the only be done for each state if the direct state design, although it has not yet set the cri- census is to provide estimated counts for ge- estimates are of sufficient quality to support teria for evaluating various post-stratifica- ographic areas as well as for demographic the comparison, acknowledging that for tion designs. Logistic regression will be used groups. Since the use of equal coefficients of some of these analyses one might pool data to identify new variables and interactions of variation for post-strata will not adequately for similar, neighboring states. (Identifica- existing variables that might be added to the balance these competing demands, the Cen- tion of significant state effects would not post-stratification. Finer post-strata have sus Bureau will need to give further atten- necessarily invalidate use of the ACE esti- the advantage of greater within-cell homo- tion to this difficult issue. The balancing of mates for various purposes but would be used geneity, potentially producing better esti- competing goals is not only a post-stratifica- as part of an overall assessment of their mates when carried down to lower levels of tion issue, but also a sample design issue. quality.) geographic aggregation. Some gains with re- For example, if block clusters that contain This validation could take many forms, spect to the important problem to lower lev- large proportions of a specific demographic and it is, therefore, difficult to specify the els of geographic aggregation. Some gains group are substantially underrepresented in precise sample size or coefficient of variation with respect to the important problem of the ACE sample, the performance of the esti- needed. We offer one approach the Census correlation bias might also occur. However, mates for some areas could be affected. Bureau should examine for assessing the ade- stratifying on factors that are not related to Documentation quacy of either type of standard. Using the the undercount will generally decrease the criteria for evaluating alternative subsample precision of undercount adjustments. The Given the importance of key decisions and designs (i.e., the estimated coefficients of tradeoff between within-cell homogeneity input values for the ACE design, it is impor- variation for 51 post-stratum groups, the dif- and precision needs to be assessed to under- tant that they be documented. In particular, ferences in coefficients of variation for race/ mine whether certain calls should be col- the Census Bureau should produce an acces- ethnicity and tenure groups, and the coeffi- lapsed and whether additional variables sible document in print or in electronic form cients of variation for state totals), the Cen- should be used. that (1) gives the planning values for state- sus Bureau should try out various state It is also important to examine the effects level, substate level, and post-stratum level minima sample sizes to determine their ef- of various attempts at post-stratification on variances resulting from the decisions for fects on the outputs. It is possible that a the quality of substate estimates, especially the sample and post-stratification designs moderately sized state minimum sample can since certain demographic groups are more and (2) provides the sampling weights used in be obtained without affecting the above coef- subject to undercoverage, and so substate the ACE selection of block clusters. ficients of variation to any important ex- areas with a high percentage of these groups SUMMARY tent. There are a variety of ways in which will have estimates with higher variances. From its review of the Census Bureau’s the assumption of the lack of residual state (This argument is based on the fact that, as current plans for design of the ACE survey, effects after accounting for post-stratum dif- in the binomial situation, the mean and the the panel offers three general comments; ferences could be assessed, including regres- variance of estimated undercounts are typi- The panel concludes that the general na- sion methods. We encourage the Census Bu- cally positively related.) We believe it is ex- ture of the Census Bureau’s work on the ACE reau to consider this important analytic tremely important that analysis at substate design represents good, current practice in issue early and provide plans for addressing levels of aggregation be conducted to inform sample design and post-stratification design it before the survey design is final. both the sample design and the post-strati- and their interactions. The panel makes one additional point on fication scheme. Furthermore, this issue The panel recognizes that operational con- state minima. The state minima will support needs to be studied simultaneously with that straints make it necessary for the Census direct state estimates that will be fairly reli- of the effect of the design and post-strati- Bureau to subsample the ACE from the pre- able for many states. The Census Bureau fication on the post-stratification on the viously planned ICM sample. The subsam- should consider using the direct state esti- post-stratum estimates. The fact that anal- pling, if done properly, should not affect the May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2615 quality of the resulting design if compared 3 The use of the term block cluster refers to the ad- national security, and they share our with one that sampled 300,000 housing units joining of one or more very small blocks to an adja- desire for a diplomatic solution rather that were not a subset of the 750,000 housing cent block for the purpose of the ACE sample design. Large blocks often form their own block clusters. than military escalation. Failure to units previously planned for the ICM. 4 The Census Bureau is aware that mixtures of The panel believes that removal of the con- find such a solution not only will un- strategies (2) and (3) are also possible, although such dermine Russian-American relations straint to produce direct state estimates jus- mixtures are not currently being considered. but will further exacerbate the human tifies the substantial reduction in the ACE f sample size from the ICM sample size. The suffering caused by the terrorism, the planned ACE could result in estimates with The SPEAKER pro tempore. Under a ethnic cleansing and massive refugee comparable reliability to that of the larger previous order of the House, the gen- problems in the region. ICM design. tleman from Pennsylvania (Mr. The end product of our sessions with The panel offers three suggestions for the WELDON) is recognized for 5 minutes. Census Bureau as it works to finalize the the Duma provides a realistic frame- (Mr. WELDON of Pennsylvania ad- work for the administration to nego- ACE design, some of which the Census Bu- dressed the House. His remarks will ap- reau is already considering: (1) a method for tiate an end to the Balkan crisis. We examining how large a state minimum sam- pear hereafter in the Extensions of Re- call for practical measures to achieve ple to retain; (2) some modifications in the marks.) three equally important tasks: with- criteria used to evaluate the ACE sample de- f drawal of Serbian armed forces from sign and post-stratification, namely, lower The SPEAKER pro tempore. Under a Kosovo, an end to the NATO bombing priority for coefficents of variation for ex- previous order of the House, the gen- of Yugoslavia and a cessation of the cessively detailed post-strata and more at- tleman from Texas (Ms. JACKSON-LEE) tention to coefficents of variation for sub- military activities of the KLA. All state areas; and (3) a possible change in the is recognized for 5 minutes. three of these goals must be accom- ACE estimation procedure, involving use of (Ms. JACKSON-LEE of Texas ad- plished to recognize a lasting peace. direct state estimates in combination with dressed the House. Her remarks will We can accomplish these tasks by al- the currently planned estimates. In addition, appear hereafter in the Extensions of lowing a voluntary return of all refu- the Census Bureau should fully document Remarks.) gees and the unhindered access to them key decisions for the ACE design. f by humanitarian aid organizations. The panel looks forward to continuing to review the ACE design and estimation as the END THE HOSTILITIES BEFORE NATO would be responsible for policing Census Bureau’s plans are further developed. OUR MILITARY RESOURCES ARE Yugoslavia’s borders to ensure that The panel is especially interested in the FURTHER DEPLETED weapons do not reenter Yugoslavia evolving plans for post-stratification design, with the returning refugees. An armed including the use of logistic regression to The SPEAKER pro tempore. Under a international force, not composed of identify additional post-stratification fac- previous order of the House, the gen- the major combatants, would admin- tors; plans for the treatment of movers in tleman from Pennsylvania (Mr. SHER- ister the peace in Kosovo, and the Rus- ACE; and the treatment of nonresponse as it WOOD) is recognized for 5 minutes. sians are very willing to participate in relates to unresolved matches in ACE esti- Mr. SHERWOOD. Mr. Speaker, I am that armed international force. mation. In addition, after data have been grateful for this special order today so collected, the panel is interested in the as- A sense of the Congress resolution is that we may share with the American sessment of the effect of nonsampling error being finalized which would put Con- on ACE estimation and the overal evaluation people and all the Members of Congress gress on record in support of our frame- criteria used to assess the quality of ACE es- the results of our peace mission this work for peace. It is our hope that such timates. past weekend to Vienna which was led a resolution will be voted on later this We conclude by commending you and your by my friend and colleague, the gen- week and that the administration will staff for the openness you have shown and tleman from Pennsylvania (Mr. your willingness to discuss the ACE survey also pursue the diplomatic route to WELDON). As a member of the House peace, including further discussions and other aspects of the planning for the 2000 Committee on Armed Services, I felt a census. with the Russians. special responsibility to our service Sincerely, I urge my colleagues to support this men and women to find a way to end JANET L. NORWOOD, Chair, resolution when it comes to the House the hostilities before their lives are Panel to Review the 2000 Census. Floor for a vote. Neither our congres- further endangered and before our mili- Attachment: Panel Roster. sional delegation nor the members of tary resources are further depleted. PANEL TO REVIEW THE 2000 CENSUS the Russian Duma were negotiating on Janet L. Norwood (Chair), Urban Institute, b 2015 behalf of our respective governments, Washington, DC but we are confident that the frame- Robert M. Bell, RAND, Santa Monica, CA As a Member of Congress, I felt that Norman M. Bradburn, National Opinion the people of my congressional district work we jointly developed clears the Research Center, Chicago, IL wanted me to pursue a peaceful and path for a solution to the crisis that Lawrence D. Brown, Department of Statis- diplomatic end to a conflict that could will both end the ethnic cleansing and tics, University of Pennsylvania escalate into wider hostilities. stop the bombing. William F. Eddy, Department of Statistics, I am proud to have been a part of this Carnegie Mellon University I believe that the eleven Members of Robert M. Hauser, Department of Soci- the House delegation significantly in- bipartisan peace mission. The eleven ology, University of Wisconsin creased the opportunity for a diplo- Members of Congress who sat at the Roderick J.A. Little, School of Public matic settlement to the current hos- same table for 19 hours with members Health, University of Michigan tilities in Kosovo without further loss of the Russian Duma are committed to Ingram Olkin, Department of Statistics, of life. We did so in a way that will finding a diplomatic avenue acceptable Stanford University to all parties that will bring peace to D. Bruce Petrie, Statistics Canada, Ot- help accomplish the U.S. and NATO tawa, Ontario goals of ending ethnic cleansing and the region. I am convinced that the Andrew A. White, Study Director providing for the return of the refugees framework we established will pave the Constance F. Citro, Senior Program Officer to an autonomous Kosovo. way for a lasting peace. Michael L. Cohen, Senior Program Officer We met extensively with our counter- Unlike some of my colleagues, I am FOOTNOTES parts this weekend in the Russian very confident in the ability of our 1 See National Research Council (1999), Measuring a Duma who are also committed to Armed Forces to win this war. But I be- Changing Nation: Modern Methods for the 2000 Census. bringing a peaceful resolution to this lieve that we must continue to prepare Michael L. Cohen, Andrew A. White, and Keith F. Rust, eds., Panel to Evaluate Alternative Census conflict. Russia is a key player in find- for all-out war, and we must fund our Methodologies, Committee on National Statistics, ing a diplomatic resolution, and we Armed Forces, but we must also search National Research Council. Washington, D.C.: Na- must keep in mind that our continued for peaceful solutions. tional Academy Press. 2 See Kostanich, Donna, Richard Griffin, and Debo- involvement in the bombing campaign The time is ripe. The Russians will rah Fenstermaker (1999), Accuracy and Coverage threatens future relations between the help, and the Serbs are ready to avoid Evaluation Survey: Plans for Census 2000. Unpub- United States and Russia. a wider war that will totally destroy lished paper prepared for the March 19, 1999, meeting The members of the Russian Duma their country and also sacrifice the of the Panel to Review the 2000 Census. U.S. Bureau of the Census, Department of Commerce, Wash- we met with agree that the Balkan cri- lives of our brave young men and ington, D.C. sis poses a tremendous threat to inter- women of the U.S. Armed Forces. H2616 CONGRESSIONAL RECORD — HOUSE May 4, 1999 GIVE PEACE A CHANCE IN THE elements that we can all consider as a campaign and that a diplomatic solu- BALKANS WAR solution for this crisis, elements which tion is much more desirable than mili- The SPEAKER pro tempore. Under a will allow us to resolve this. tary escalation. A spread of the vio- previous order of the House, the gen- May I say that later this week my lence will only bring about increasing tleman from Nevada (Mr. GIBBONS) is colleagues on both sides of the aisle division, hatred and resentment and vi- recognized for 5 minutes. will have an opportunity to deal with olence, but a diplomatic solution could Mr. GIBBONS. Mr. Speaker, this the concurrent resolution that is the lead to the increase of communication evening I join my colleagues down here result of the recommendations of this and understanding between the two in the well of the House on the floor to meeting in Vienna, Austria, a historic sides and save countless lives. join myself with their remarks. My col- meeting, and now this resolution will As a Member of Congress, I feel that leagues, the gentleman from Pennsyl- simply state a sense of Congress as to it is my responsibility to do everything vania (Mr. SHERWOOD) and the gentle- the meaning that diplomacy is always I can within my capacity to help end woman from Florida (Ms. BROWN), I am better than warfare. this war. sure are going to speak eloquently on I hope my colleagues on both sides of I would like to point out that the this very subject that we are talking the aisle will give peace a chance as we congressional delegation’s discussions about this evening and that is that our debate this issue and vote on it later with the Duma were not meant as a hope as we stand here this evening is this week. slight to the administration nor an unan opportunity to give peace a chance May I also say that it has been a dermining of NATO’s authority. Rath- in the Balkans war. great pleasure to work with my friends er, members of our group traveled to No war, no conflict and certainly no on both sides of the aisle when we have Austria to increase communication be- humanitarian crisis has ever been re- a common goal, a common goal of tween the warring sides and act as a solved by bombing a country into ob- peace, not only in the Balkans but conduit to the present talks taking livion. May I say that, as a veteran of peace in the world. place between President Clinton, for- two wars myself, that diplomacy is al- So, Mr. Speaker, it is an honor for eign policy experts and members of the ways preferable to war. And I am sure me to have stood down here to asso- Russian Government. that we all recognize that this Balkan ciate myself with my colleagues’ re- The main point of contention which I crisis, the war over there in Yugo- marks as we go forward in this process brought to the talks with the Russian slavia, the ethnic cleansing, the ter- of seeking an alternative to an esca- Duma was that ethnic cleansing is, in rorism, the human tragedies, are an lated war in Yugoslavia. I would like to essence, the root cause of the conflict. enormous crisis that this world faces; thank them for the bipartisanship and As the only mother in the room during and military escalation by itself will the friendship and the collegiality that the talks, I felt that it was necessary to recognize the tragedies of the ref- not end, nor will it solve, this crisis. In was demonstrated throughout this ugee families. fact, it may even precipitate an in- meeting. It is indeed a great honor for The Russian delegation originally re- crease with the threat of proliferation me to stand here, arm in arm, shoulder of weapons of mass destruction. fused to acknowledge that it was the to shoulder, in this effort to bring Perhaps I can explain that in just a ethnic cleansing that began this con- peace to this world. few words. Whenever a small country is flict and not the NATO bombing, but opposed by an organization of 19 other f before they walked away from our dis- nations, the propensity of that country VIENNA PEACE TALKS cussion they acknowledged that it was to defend itself may reach extremes. To The SPEAKER pro tempore. Under a the ethnic cleansing that began this conflict. that end, it may reach for those arse- previous order of the House, the gentle- nals that it could acquire from some Our discussion resulted in a frame- woman from Florida (Ms. BROWN) is other country of a weapon of mass de- work for peace negotiations. One of the recognized for 5 minutes. guidelines I would like to see during struction, whether it is chemical, Ms. BROWN of Florida. Mr. Speaker, the peace negotiations is a cease-fire, a whether it is biological or even wheth- as a member of the Duma-U.S. Con- er it is nuclear, in order to defend itself time-out from the fighting, so that gressional Study Group, I want to take from the onslaught of an attack. both parties can refrain from fighting a moment to thank the gentleman I urge this administration and I urge in order to negotiate with one another my colleagues here this evening to se- from Pennsylvania (Mr. WELDON) for in a diplomatic fashion. riously consider the efforts and the rec- his leadership in this area. In order to smooth out the road to di- ommendations of the U.S. Congress and I traveled with my colleagues to Vi- plomacy, the Congressional-Duma the Russian Duma meeting that was enna, Austria, last weekend to help Study Group suggests a threefold ap- held in Vienna, Austria, this last week- bring cooperation between members of proach to resolving the conflict. This end. I urge them to consider the rec- the Russian parliament and the United includes a temporary end to the NATO ommendations in order to bring about States Congress. bombing, along with the withdrawal of a fair, an equitable and a peaceful set- The United States-Russian Duma the Serbian Armed Forces from Kosovo tlement between the warring factions Study Group was created 5 years ago, and the KLA military activities. in Yugoslavia. and I have been an active participant We demand a recognition of the basic This meeting that was held with the in the organization for the last 3 years. principles of the territorial integrity of leaders of the Russian factions in their As a group, our members meet to dis- Yugoslavia, including greater auton- Duma, which is our equivalent of the cuss national security, military affairs, omy for Kosovo and just treatment of House of Representatives here in Con- housing, economic development and so- all Yugoslavian people. cial welfare policies. gress, reached consensus, reached an b 2030 agreement, on areas that we thought The importance of the working group would form a framework for the resolu- cannot be overstated, since personal re- We also support efforts to provide tion, the peaceful resolution, I might lationships by members of each of the international assistance to rebuild the add, of the Yugoslavia crisis. respective governments are created, destroyed homes of the refugees, as Those include, first, ending the eth- thus permitting for greater openness well as other humanitarian assistance. nic crisis, the ethnic cleansing and ter- and increasing trust between the two This was a productive meeting, and I rorism; an end of the NATO bombing; governing bodies of each country. am hopeful that it will not be our last. an absolute removal of the Serbian Because Russia and Serbia have close We are all in agreement that we want military forces; an emplacement of an ethnic and historical ties, I believe a quick and peaceful end to the crisis, international peacekeeping force that that members of the Russian Duma can while keeping positive relationships will ensure the peaceful repatriation of play an important role in convincing between Russia and the United States. the refugees back into Kosovo, and the Serbian government to put a halt f wide autonomy is the final goal for to the ethnic cleansing and help stop The SPEAKER pro tempore. Under a Kosovo. the refugee crisis. previous order of the House, the gen- I think all of us here in this room I believe that the humanitarian crisis tleman from New Jersey (Mr. SAXTON) this evening can agree that these are cannot be solved by just a bombing is recognized for 5 minutes. May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2617 (Mr. SAXTON addressed the House. words, to do it in a simultaneous man- AGREEMENT REACHED IN VIENNA His remarks will appear hereafter in ner. That is, ‘‘the stopping of the PROVIDES A FRAMEWORK FOR the Extensions of Remarks.) NATO bombing of the Federal Republic RESTORING PEACE IN YUGO- f of Yugoslavia; the withdrawal of Ser- SLAVIA AND KOSOVO bian Armed Forces from Kosovo, and A FRAMEWORK FOR SETTLING The SPEAKER pro tempore. Under a the cessation of the military activities THE KOSOVO CRISIS previous order of the House, the gen- of the KLA.’’ tleman from Ohio (Mr. KUCINICH) is rec- The SPEAKER pro tempore (Mr. What we have said is that these steps ognized for 5 minutes. SWEENEY). Under a previous order of should be accomplished through a se- the House, the gentleman from Mr. KUCINICH. Mr. Speaker, I thank ries of confidence-building measures, the gentlewomen for giving me the op- Vermont (Mr. SANDERS) is recognized which include but should not be lim- for 5 minutes. portunity to go forward. Mr. SANDERS. Mr. Speaker, some of ited to the following: Mr. Speaker, I, too, had the oppor- us have recognized for a long time that A, the release of all prisoners of war. tunity to join my colleagues in the trip it was terribly important that Russia When we stated that, our three POWs to Vienna to meet with leaders of the become increasingly involved in the were, of course, still being held by Russian Duma. crisis in Yugoslavia. Yugoslavia, and a few hours after this Mr. Speaker, in this audience tonight Russia is, I think as everybody agreement was reached Milosevic, as it we have some young people who are knows, Yugoslavia’s major ally and turns out, released our three POWs. visiting our Nation’s Capitol, and as I major supporter. If Russia could be was looking up there getting ready to My own view is that, consistent with speak, I was reminded of the time when brought into the process supporting this agreement, in an act of good faith the humanitarian goals of the stopping I was in school at that age, and we had on our part, we should release the two in this country a different type of rela- of ethnic cleansing, it would be a major Serbian POWs that we are holding. But step forward in solving what is increas- tionship with Russia. our agreement called for the release of It was the height of the Cold War, ingly becoming a very, very horrible all prisoners of war. situation in the Balkans. and at school they used to do drills. Within that light, I was very de- Second of all, what we said is the vol- Some people will remember the drills. lighted to learn about a trip to Vienna, untary repatriation of all refugees in They were called duck and cover drills. Austria, that was being organized by the Federal Republic of Yugoslavia and We would have to, anticipating there the gentleman from Pennsylvania (Mr. unhindered access to them by humani- would be a nuclear attack, we would CURT WELDON), who has done an excel- tarian aid organizations. In other actually have to get down under our lent job in trying to improve relations words, what we were agreeing to is that desks, cover our heads, and close our between the United States Congress the people who have been driven out of eyes so we would not see the flash that and the Russian Duma. He was orga- their homes whose villages were burned was supposed to be a nuclear attack. nizing a trip which would involve 11 by Yugoslavia should be allowed to re- Mr. Speaker, that was an era of ter- Members of the United States Congress turn to their homes and be allowed all ror. It was an era when the United to meet with the leaders of the Russian of the humanitarian help they can re- States and Russia were at odds over Duma. ceive. the great global consequences of On that trip, in addition to the gen- Thirdly, and on a very important whether capitalism or communism tleman from Pennsylvania (Mr. point, there was agreement on the would rule the earth. WELDON), were the gentleman from composition of the armed international Have we come a long way from those New York (Mr. MAURICE HINCHEY), the forces which would administer Kosovo days? Yes. We worked throughout the gentleman from Hawaii (Mr. NEIL after the Serbian withdrawal. seventies to build down nuclear arms, ABERCROMBIE), the gentleman from we worked throughout the eighties to The composition of the group should Ohio (Mr. DENNIS KUCINICH), the gentle- reestablish a relationship with Russia, be decided by a consensus agreement of woman from Florida (Ms. CORINNE and in the nineties we have in the the five permanent members of the BROWN), the gentleman from Pennsyl- United States been responsible for U.N. Security Council, in consultation vania (Mr. DON SHERWOOD), the gen- helping Russia rebuild itself economi- with Macedonia, Albania, the Federal tleman from Maryland (Mr. ROSCOE cally, and assisted in so many ways as Republic of Yugoslavia, and the recog- BARTLETT), the gentleman from New partners in peace. nized leadership of Kosovo. Jersey (Mr. SAXTON), the gentleman But yet, Mr. Speaker, that very from Nevada (Mr. JIM GIBBONS), and This is a very important step for- peace and that partnership has been the gentleman from Pennsylvania (Mr. ward, because what this means is the threatened by the Balkan conflict, be- JOSEPH PITTS). There were six Repub- Russians are saying very clearly that cause Russia has seen this conflict in licans, four Democrats, and myself, there should be armed international other terms, and only a week ago the who is an Independent. forces, something that many of us un- leader of the Yablako faction in Rus- Mr. Speaker, in arriving in Vienna derstand is absolutely necessary if the sia, Vladimir Luhkin, was quoted in and meeting with the Russians, I think people of Kosovo are to return safely worldwide news reports as saying a we were all delighted that the Russians and with protection to their homes. blockade of the port in Montenegro shared our strong concerns about I think increasingly, within our own would be a direct path to nuclear esca- bringing peace to Yugoslavia. We were administration and all over the world, lation, setting aside years and years of able, after a lot of discussion, to come there is an understanding that that progress that we made and launching up with an agreement. armed international force need not us right back into the Cold War. As others have said, we were not strictly be NATO. That is what we are How important it was to have Mem- there to negotiate the fine points of a saying here, and that is what the Rus- bers of this Congress go to Vienna, treaty. That was not our job. But we sians have agreed to. Austria, to sit down with that very were there to see if we could come to- same leader and other leaders of the gether on the broad outlines of what a Then we said that the above group Duma, the leader of Mr. peace process would mean for the Bal- would be supplemented by the mone- Chernomyrdin’s party, one of the lead- kan area, and I think we did that. tary activities of the Organization for ers of the Communist party, to sit Mr. Speaker, let me just touch on Security and Cooperation in Europe. down with those individuals face-to- some of the important points that the In conclusion, Mr. Speaker, I think face, sharing our common human inter- Russians and our delegation agreed that this trip was a significant step est in protecting the life of this planet upon. forward in bringing the Russians into and sharing our interest in relieving ‘‘We call on all of the interested par- the peace process. I was very proud and the suffering of the Kosovar Albanians ties to find practical measures for a delighted to be there with my fellow and of the people who are being bombed parallel solution to three tasks, with- representatives from the United States throughout the Federal Republic of out regard to sequence;’’ in other Congress. Yugoslavia. H2618 CONGRESSIONAL RECORD — HOUSE May 4, 1999 So we came together as brothers and order to successfully move ahead the process BIPARTISAN DELEGATION TRAV- sisters in search of peace. We came to- of resolving the situation in Yugoslavia on ELS TO BRUSSELS TO SEEK gether hoping to create a framework the basis of stopping the violence and atroc- PEACE IN THE FORMER YUGO- for peace which we could bring back to ities. SLAVIA 2. We recognize the basic principles of the our Nation and give our nations an op- territorial integrity of the Federal Republic The SPEAKER pro tempore. Under a portunity to reconstruct, in this fragile of Yugoslavia, which include: previous order of the House, the gen- and even grim climate, an opportunity a. wide autonomy for Kosovo tleman from Hawaii (Mr. ABERCROMBIE) to set the world on the path of light in- b. a multi-ethnic population is recognized for 5 minutes. stead of the path of might, on the path c. treatment of all Yugoslavia peoples in to negotiation instead of the path of accordance with international norms Mr. ABERCROMBIE. Mr. Speaker, I annihilation; to create for the world a 3. We support efforts to provide inter- want to thank the other Members who national assistance to rebuild destroyed are here this evening. I will not take new opportunity towards peace. homes of refugees and other humanitarian We came in peace, and we departed as the full time, but I will merely read a assistance, as appropriate, to victims in brief excerpt as an addendum to the re- brothers and sisters in search of peace, Kosovo. with a framework which I am pleased 4. We, as members of the Duma and Con- marks that have been made at this to have a copy of here. gress, commit to active participation as fol- point. Mr. Speaker, I include this frame- lows: We are very grateful to our col- work for the RECORD. Issue a Joint U.S. Congress-Russian Duma leagues who are here on another mat- The material referred to is as follows: report of our meetings in Vienna. Concrete ter tonight who have graciously con- suggestions for future action will be issued REPORT OF THE MEETINGS OF THE U.S. sented to allow this interruption be- as soon as possible. CONGRESS AND RUSSIAN DUMA Delegations will agree on timelines for ac- cause of the serious nature of the busi- VIENNA, AUSTRIA complishment of above tasks. ness that was conducted this past 30 April—1 May 1999 Delegations will brief their respective leg- weekend. All sessions centered on the Balkan crisis. islatures and governments on outcome of the Mr. Speaker, I would like to read just Agreement was found on the following points Vienna meetings and agreed upon proposals. some excerpts from a letter addressed I. The Balkan crisis, including ethnic Delegations will prepare a joint resolution, to the ranking member of the Com- cleansing and terrorism, is one of the most based on their report, to be considered simul- mittee on Armed Services, the gen- serious challenges to international security taneously in the Congress and Duma. tleman from Missouri (Mr. IKE SKEL- since World War II. Delegations agree to continue a working II. Both sides agree that this crisis creates group dialogue between Congress and the TON), a letter sent to him today in con- serious threats to global and regional secu- Duma in agreed upon places. junction with the report that the gen- rity and may undermine efforts against non- Delegations agree that Duma deputies will tleman from Ohio (Mr. KUCINICH) just proliferation. visit refugee camps and Members of Congress cited and the activities that we en- III. This crisis increases the threat of fur- will visit the Federal Republic of Yugo- gaged in in Vienna this past weekend. ther human and ecological catastrophes, as slavia. evidenced by the growing refugee problem, The letter was a cover letter also Mr. Speaker, this agreement begins containing the resolution that we ex- and creates obstacles to further development with stopping the bombing, a with- of constructive Russian-American relations. pect to bring forward to all of our col- IV. The humanitarian crisis will not be drawal of the Armed Forces from leagues here on the floor shortly that solved by bombing. A diplomatic solution to Kosovo, a cessation of military activi- we hope will provide a path towards the problem is preferable to the alternative ties of the KLA, releasing all prisoners, reconciliation and resolution of the of military escalation. returning all refugees, providing for crisis in Kosovo. Taking the above into account, the sides their safekeeping with an international Mr. Speaker, I will just read briefly consider it necessary to implement the fol- peacekeeping force, rebuilding their from the letter: lowing emergency measures as soon as pos- shattered homes, and helping to re- sible, preferably within the next week. Im- Dear Ike, as you are aware, I recently re- plementation of these emergency measures build their shattered lives. This is such a great country with turned from a trip to Vienna as the senior will create the climate necessary to settle Democrat on a congressional delegation that the political questions. such a great heart, because we care met with the leadership of the Russian 1. We call on the interested parties to find about people all over this world. We Duma. My earlier trip to the region prompt- practical measures for a parallel solution to want to bring peace to those who are ed me to lead a group comprised of Corinne three tasks, without regard to sequence: the suffering. Brown, Maurice Hinchey, and Dennis stopping of NATO bombing of the Federal Our delegation, Mr. Speaker, gave us Kucinich. Since you are the ranking member Republic of Yugoslavia, withdrawal of Ser- a chance, at a moment when it looked on the Committee on Armed Services, I bian armed forces from Kosovo, and the ces- like escalation was the only recourse, wanted you to have a copy of the report of sation of the military activities of the KLA. the meetings to review. This should be accomplished through a series with the leadership of the gentleman Not only did we arrive at a viable frame- of confidence building measures, which from Pennsylvania (Mr. CURT WELDON), work around which the Congress and the should include but should not be limited to: with the participation of our leader, Duma can facilitate an end to the violence in a. The release of all prisoners of war. the gentleman from Hawaii (Mr. NEIL b. The voluntary repatriation of all refu- the Balkans, we learned much from our Rus- ABERCROMBIE), we finally had the op- sian colleagues. Our Duma counterparts rep- gees in the Federal Republic of Yugoslavia portunity to begin anew to look at and unhindered access to them by humani- resented the full spectrum of ideology and tarian aid organizations. NATO would be re- each other as brothers and sisters in Russian politics. Together we reached agree- sponsible for policing the Federal Republic search of peace, to come up with a ment on three important components of of Yugoslavia’s borders with Albania and framework which we would all hope peace and a possible road to implementation. Macedonia to ensure that weapons do not re- would be the start of a new opportunity More than ever, I am convinced that the enter the Federal Republic of Yugoslavia to look forward to perhaps a cease-fire, road to peace is through Moscow. Without with the returning refugees or at a later to a cessation of bombing, to restoring movement towards peace, I see escalating costs, increasingly convoluted options, and time. the refugees and rebuilding the war- c. Agreement on the composition of the unacceptable casualties just over the hori- armed international forces which would ad- ravaged area. zon. minister Kosovo after the Serbian withdraw. Let us continue to pray for peace, Undermining the Administration’s objec- The composition of the group should be de- and let us continue to act in con- tives was certainly not our desire, and I wish cided by a consensus agreement of the five sonance with our prayers. to reiterate that the delegation was not on a permanent members of the U.N. Security f mission to negotiate peace. Instead, we were Council in consultation with Macedonia, Al- on a mission to reach out to our Russian bania, the Federal Republic of Yugoslavia, ANNOUNCEMENT BY THE SPEAKER counterparts. Because of her unique historic and the recognized leadership of Kosovo. PRO TEMPORE and cultural ties to Serbia, Russia has the d. The above group would be supplemented The SPEAKER pro tempore. The credentials to act as an intermediary in by the monitoring activities of the Organiza- achieving a negotiated peace in the Balkans. Chair must remind all Members that it tion for Security and Cooperation in Europe Mr. Speaker, I submit this letter for (OSCE). is not permissible to introduce or bring e. The Russian Duma and U.S. Congress to the attention of the House any occu- the RECORD. will use all possibilities at their disposal in pant of the gallery. The letter referred to is as follows: May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2619 NEIL ABERCROMBIE, MOTHER’S DAY: A TIME TO RE- Mr. Speaker, our government has a HOUSE OF REPRESENTATIVES, FLECT ON THE IMPACT OF SO- Social Security system. It is affecting Washington, DC, May 4, 1999. CIAL SECURITY AND MEDICARE women and it affects them in terms of Hon. IKE SKELTON, ON AMERICAN WOMEN their security and their retirement. Rayburn House Office Building, But the truth is Social Security pro- Washington, DC. The SPEAKER pro tempore (Mr. SWEENEY). Under the Speaker’s an- vides benefits on a gender-neutral DEAR REPRESENTATIVE SKELTON: As you nounced policy of January 6, 1999, the basis. Benefits are based on an individ- are aware, I recently returned from a trip to ual’s earning record, employment his- Vienna as the senior Democrat on a Congres- gentlewoman from California (Ms. MILLENDER-MCDONALD) is recognized tory, and family composition. sional delegation that met with leadership of Mr. Speaker, I am an older woman so the Russian Duma. My earlier trip to the re- for 60 minutes as the designee of the I do know the benefits of Social Secu- gion prompted me to lead a group comprised minority leader. of Corrine Brown, Maurice Hinchey, and Ms. MILLENDER-MCDONALD. Mr. rity and the benefits of retirement. I Dennis Kucinich. Since you are the ranking Speaker, as we embark upon Mother’s am not so sure the younger women who Member of the Committee on Armed Serv- Day this coming Sunday, distinguished are in here tonight will be able to ben- ices, I wanted you to have a copy of the re- women of the House thought it was efit from the Social Security system as port of the meetings to review. really fitting to come and talk again I have. Hopefully, they shall. If it is up Not only did we arrive at a viable frame- on women and Social Security and to this Women’s Caucus, the women work around which the Congress and the Medicare and how these two critical will get a chance to benefit. Duma can facilitate an end to the violence in issues will impact women leading into Thus, while women tend to collect the Balkans, we learned much from our Rus- the 21st century. I have gathered with benefits over a longer period than men sian colleagues. Our Duma counterparts rep- me tonight a distinguished core of do because we live longer, our life ex- resented the full spectrum of ideology and women of the House to speak on these pectancy is longer, women on an aver- Russian politics. Together we reached agree- critical issues. age have lower monthly Social Secu- ment on three important components of As the Co-Vice Chair of the Women’s rity benefits since they have lower peace and a possible road to implementation. Caucus, I think it is vitally important earnings, more frequent breaks in em- More than ever, I am convinced that the that we ensure retirement security for ployment because of our childbearing road to peace is through Moscow. Without women as we work to strengthen So- years, and we are more likely to be movement toward peace, I see escalating cial Security and Medicare. widowed or unmarried in retirement. costs, increasingly convoluted options, and Mr. Speaker, I would be remiss if I This occurs despite Social Security’s unacceptable casualties just over the hori- did not acknowledge the two women inclusion of certain safety net provi- zon. who have been in the forefront on these sions that generally narrow the gap in Undermining the administration’s objec- issues, the gentlewoman from Con- benefits between men and women. tives was certainly not our desire, and I wish necticut (Ms. DELAURO) and the gentle- Some of the Social Security reform op- to reiterate that the delegation was not on a woman from Florida (Ms. THURMAN). tions currently being contemplated mission to negotiate peace. Instead, we were Each will speak to these issues as we will change or eliminate the social ade- on a mission to reach out to our Russian quacy components of the program, thus counterparts. Because of her unique historic progress tonight. and cultural ties with Serbia, Russia has the Social Security has played a very disproportionately affecting women credentials to act as an intermediary in vital role in ensuring financial security relative to men. achieving a negotiated peace in the Balkans. for most elderly women; however, there It is important to note that women are still far too many elderly women are generally paid less than men and The bipartisan delegation prepared a reso- living in poverty. In our work here in women are more likely than men to lution expressing the sense of Congress in leave the workforce. Our government supporting the recommendations of the Vi- the House to establish a better and enna meeting to bring about a fair, equitable more secure retirement system, we must do everything possible to pre- and peaceful settlement in Yugoslavia. That must not exacerbate this situation but serve Social Security. That is why the draft resolution is attached. Additionally, I rather do all we can to resolve the dis- Women’s Caucus is focusing on this. have attached a letter I sent to minority crepancy now and for all future genera- And it is very fitting. It is near Moth- Leader Gephardt. I ask that you also support tions. er’s Day. It is our day coming up. a bipartisan caucus so that the delegation Mr. Speaker, tonight is the night for We know that Social Security is per- can brief all members of Congress. Absent a women to speak to the two issues and haps the most important and the most bipartisan caucus, I ask your support for the to voice their concerns from their con- successful antipoverty program ever delegation to brief the Armed Services Com- stituents in their respective states. So adopted. Without Social Security, over mittee. I will call on them tonight as they 50 percent of the elderly would be in This meeting with members of the Duma come to speak to this issue as we em- poverty. Social Security is a major represents a singularly important step to- bark upon Mother’s Day this coming source of income for 65 percent of bene- ward a negotiated solution. I seek your coun- Sunday. ficiaries over age 65. sel and recommendations on how to best pro- I have tonight the great gentle- Mr. Speaker, it is sort of important ceed. woman from the State of Florida (Mrs. that we stress the many good benefits Sincerely, MEEK), who will speak to this issue as of Social Security. We are not saying NEIL ABERCROMBIE, she relates to it in the State of Florida. that the Social Security system is the Member of Congress. Mrs. MEEK of Florida. Mr. Speaker, I best in the world and it is the only Mr. Speaker, I wish to conclude my thank very much the gentlewoman thing and it cannot be improved on. remarks by merely saying that the from California (Ms. MILLENDER- The Women’s Caucus is not saying road to the resolution of this crisis is MCDONALD) my colleague, friend, and that. They are saying to take a look at not in Belgrade and is not in Brussels, sister who is the Co-Vice Chairman of it to be sure that it does what it pur- but is in fact in Moscow. the Women’s Caucus for yielding me ports to do and it continues to keep this time, and acknowledge my associ- women out of poverty. The problem many times in Social b ates in the Women’s Caucus. 2045 Mr. Speaker, I am very pleased to be Security is worse for minority women The 11 of us, the bipartisan delega- a member of the Women’s Caucus. It because of our earnings over the years, tion which went to Vienna, had as its gives me a special chance to come be- and we are much poorer than white sole purpose the reaching out to the fore this body and talk about not only women, particularly white women age the contributions of women, but the 65 years of age or older. As a Member of Members of the Russian Duma in an at- issues and concerns of all women. the Women’s Caucus, particularly one tempt to bring resolution to this crisis Therefore, being a Member of Congress over the years that has stressed older and bring it to a resolution at the ear- gives us a special platform where we women, I ask my dear colleagues to liest possible moment. can say to the Nation that as women consider the unique issues of women: Mr. Speaker, thank you for the time we do have special concerns and special Lower earnings, longer life spans, and I thank my colleagues for their problems that this Congress should ad- shorter work histories, greater depend- generosity in providing it. dress. ency on spouses, divorce, and outliving H2620 CONGRESSIONAL RECORD — HOUSE May 4, 1999 their spouse. The current Social Secu- A recent report by the General Ac- farm woman who had virtually no income. She rity system contains provisions that counting Office showed that 80 percent now depends solely on Social SecurityÐ$650 mitigate but do not eliminate these of women living in poverty were not a month. At age 71, she moved in with her concerns. poor before their husbands died. The daughter, Marilyn, because she could no Mr. Speaker, I want to thank the ‘‘feminization’’ of poverty is another longer work outside the home to supplement women in the caucus and I want to reason why Social Security must be her Social Security income. thank our cochair, the gentlewoman there for our senior citizens, particu- As a waitress and a bartender, Thomas and from California (Ms. MILLENDER- larly women in their elderly years. her husband barely made enough money to MCDONALD) for putting together this The financial outlook for elderly pay for their daily living expenses. Mrs. Thom- special order so they we could come to- women is pretty grim. The poverty as does not have a pension, nor does she night near Mother’s Day in this fitting rate among elderly woman would be have income-generating savings. Her current time and say that we want to help much higher if they did not have Social income consists of about $8,000 a year from America understand that the unique Security benefits. In 1997, the poverty Social Security. She is one of the nation's el- issues of women should be carefully rate among elderly women was 13.1 per- derly poor. Of that amount, $1,600 is used for studied because women are extremely cent. Without Social Security benefits, secondary health coverage. Last year she important to this country. it would have been 52.3 percent. For el- paid an additional $1,000 in medical costs and Ms. MILLENDER-MCDONALD. Mr. derly men, the poverty rate is much another $1,400 for a hearing aid. In the fall, a Speaker, I thank the gentlewoman lower at 7 percent. If men did not have bout with stomach ulcers forced her to pay from Florida (Mrs. MEEK) for her com- Social Security benefits, the poverty over $200 for prescription drugs. Her daughter ments. Now we will hear from the gen- level among them would increase to purchased most of her clothing and paid for tlewoman from New York (Mrs. 40.7 percent. her room and board for the past 12 years. So- MALONEY) and our cochair. Social Security’s family protection cial Security is a real factor in her ability to Mrs. MALONEY of New York. Mr. provisions help women the most. Social survive with some dignity in her old age. Speaker, I thank my dear friend and Security provides guaranteed inflation Mrs. Thomas' story is not unique. Many colleague, the gentlewoman from Cali- protected lifetime benefits for widows, women come to rely heavily on the Social Se- fornia, for organizing this special order divorced women, and the wives of re- curity System when they retire, for a number and calling attention to the plight of tired workers. Sixty-three percent of of reasons. older women as we approach Mother’s female Social Security beneficiaries Ms. MILLENDER-MCDONALD. Mr. Day this weekend. I also thank the aged 65 and over receive benefits based Speaker, I would like to thank the gen- gentlewoman from Connecticut (Ms. on their husband’s earning records, tlewoman from New York (Mrs. DELAURO) for working on putting this while only 1.2 percent of male bene- MALONEY) the distinguished cochair of special order together. ficiaries receive benefits based on their the Women’s Caucus, for her comments Social Security is tremendously im- wives’ earning records. These benefits tonight. portant to all Americans, but particu- offset the wage disparity between men Mr. Speaker, indeed America’s older larly to women. Many women come to and women. women do depend upon Social Security rely heavily on the Social Security sys- As we move forward with reform of and Medicare for their security and tem when they retire for a number of our Nation’s Social Security system, their well-being. We have now another reasons. First of all, women earn less we must remember that women face distinguished Member of the House than men. For every dollar men earn, special challenges. It is my hope that who we will hear from as she voices her women earn 74 cents, which translates many of the contributing economic concerns for the women of North Caro- into lower Social Security benefits. I factors, particularly pay inequity, will lina, the gentlewoman from North remember when I began working, it soon be eliminated. In the meantime, Carolina (Mrs. CLAYTON). was 52 cents to the dollar. We got a Congress must take the economic well- Mrs. CLAYTON. Mr. Speaker, I rise raise. We are now at 74 cents to the being and security of women into ac- to commend my colleagues, the gentle- dollar, but it is still terribly unfair and count when discussing reform. Women woman from California (Ms. our Social Security benefits in our el- clearly are at a disadvantage when fac- MILLENDER-MCDONALD) and the gentle- derly years reflect this unfairness. ing retirement and poor elderly women woman from Connecticut (Ms. In fact, women earn an average of have the most at stake in the Social DELAURO) for having this special order, $250,000 less per lifetime than men. Security debate. Any reform that is en- and the leadership of the gentlewoman Considerably less to save or invest for acted must keep the safety net intact. from New York (Mrs. MALONEY) as the retirement. Therefore, they rely more Our mothers, our daughters and our President of the Women’s Caucus. In- on Social Security. granddaughters are counting on us. deed they will bring the awareness to Women are half as likely than men to Mr. Speaker, I would like to put into an issue that should be given and be a receive a pension. Twenty percent of the RECORD a story, a story about the major concern to all women, because it women versus 47 percent of men over life of one of my constituents. Her is of economic value to us. age 65 receive pensions. Further, the many years of work, the many things Mr. Speaker, Social Security pro- average pension income for older that she did in her life, and how much vides an important base for the eco- women is $2,682 annually compared to she now depends on Social Security for nomic security of American women. $5,731 for men. a safety net in her own life. Women represent 60 percent of all So- Women do not spend as much time in Mr. Speaker, I join my colleagues in cial Security recipients. Today, the the workforce as men. In 1996, 74 per- calling upon Congress on both sides of Committee on the Budget in their task cent of men between the ages of 25 and the aisle to be very cautious in the re- force hearing shared with us that 44 were fully employed full-time com- forms in Social Security to make sure women actually receive 53 percent of pared to 49 percent of women in that that this safety net for men and women all the benefits because, in fact, we live same age group. Women spend more continues. longer and how the Social Security time out of the paid workforce than do I am glad to be here tonight to remind my progressivity is structured so that men in order to raise their families and colleagues that it is critical that we take the women who earn lower wages actually to take care of their aging parents. different circumstances of women into account get a greater benefit because it is de- Women live longer than men by an as the 106th Congress considers proposals to signed to be that kind of bridge. average of 7 years. Social Security ben- reform the current Social Security system. b efits are the only source of income for Lucy Thomas' story illustrates many of the 2100 many elderly women. Twenty-five per- key issues. However, because women live longer cent of unmarried women, widowed, di- Mrs. Thomas is 83 years old. She worked on average than men, they represent 70 vorced separated or never married rely for 35 years as a waitress, earning less than percent of Social Security recipients on Social Security benefits as their minimum wage. At the same time, she reared after the age of 85. Unmarried women, only source of income. Not only will two daughters, and cared for both her father including widows aged 65 and older, re- these women find themselves widowed, as he became increasingly disabled with rheu- ceive just about half of their total in- they are likely to be poor. matoid arthritis, and for her grandmother, a come from Social Security. So, indeed, May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2621 Social Security is very, very impor- like to now yield to the gentlewoman in this Congress to encourage more tant, but it is also the survivor’s safety from the District of Columbia (Ms. EL- saving: 401(k)s, IRAs, IRAs for home- net for a large number of women who EANOR HOLMES NORTON). makers. There is ever so much more we are on Social Security. Ms. NORTON. Mr. Speaker, I thank must do to encourage savings. And, in- Women also have a different work the gentlewoman from California for deed, savings in the United States is pattern. Many of them work part-time. her leadership; and I commend her and going down, and that is itself very seri- Some of them, indeed, do not work at the gentlewoman from Connecticut for ous. But the focus on earnings now is all for a period of time. Nearly three- their work in organizing this special how we figure what workers will have fourths of 4 million older poor persons order to draw attention to the various tomorrow. in this Nation are women, and older special needs of women in Social Secu- Let us look at women. Women today women are twice as likely as older men rity. earn $24,000, the average woman, year- to be poor. We are told that there may well be round worker, $24,973. For a man, it is In 1996, older Caucasian women had a no Social Security reform this year. I almost $10,000 more, $33,674. What does median personal income of $9,990, while would regret that, though I want to go a woman who earns less than $25,000 older black women’s median income on record to say that it is certainly not have to put into a personal savings ac- was $7,110, and older Hispanic women’s true that Social Security is going count? Something, I hope, but I guar- median income was $6,372. One-fifth of bankrupt. We really do have more than antee it is too little. Social Security, older black women received less than a quarter of a century before that. Nev- as we know it, needs to be there for $5,000, and nearly three-fourths had an ertheless, it certainly would be better that woman. She cannot afford to put annual personal income under $10,000 in if we could get a bipartisan consensus all of her eggs in a personal savings ac- that same year. this session. count basket. Women are also more likely to work Let me say that I would rather see No matter how we look at earnings, part time and take out time from the nothing, however, than see a new we draw the same conclusion. The pro- work force. Therefore, they do not model based on some of the ideas that gressive Social Security model now in build up as much investment in Social have come from the majority on Social place must be there especially for Security. In fact, women are more like- Security. We do not need a new model women. ly to be out of the work force an aver- for Social Security. We need a revital- First, for the large number of women age of 11.5 years to raise their children ized model. with no earnings, what are they sup- or to attend to ailing relatives. The reason we do not need a new posed to do with a personal savings ac- Social Security has been a tremen- model is because the present model is a count? Look at who they are. There are dous success in reducing the number of feminized model. It is literally orga- only 7 percent of men who spend time women in poverty since 1940. Now, this nized around the needs of women, out of the work force; 21 percent of is not to say Social Security does not around longer lives, around those with women spend time out of the work have problems, but it is to recognize lesser earnings, and, if I may say so, force. Look at part time. Seventy-four that Social Security has been a safety around housewives. In particular, the percent of men work full time; only 49 net for women. And as we reform So- notions for personal savings accounts percent of women work full time. What cial Security, we certainly need to do not take into account this feminized are they going to put in personal sav- make sure that the structure that aids model. ings accounts? What will their Social in securing women, and particularly Most of the time when we talk about Security look like, for that matter? those women who are disadvantaged by Social Security reform, we have ref- That is why it has to be progressive, receiving less money and disadvan- erence to the elderly. I want to talk for because they will have too little earn- taged by not being in the work force, my few minutes not about the elderly ings in even to get out enough of Social are, indeed, protected. but about women whose Social Secu- Security unless we have the present Again, as I referred to the hearing in rity is most endangered, because we system which benefits low earners. the Committee on the Budget today, are talking about Social Security in Look at the labor force participation: there are several proposals out there, 2030, not Social Security in the year 73 percent of men in the labor force, 63 some looking to the private sector, 2000. percent of women. This translates into some providing some transitional Older women have been grand- no pensions or pensions that are too costs, talking about consumer taxes, fathered in. Neither the Republican small, and it certainly leaves very lit- and we need to make sure that those majority or anybody else in his right tle for personal savings accounts. transitional costs are taken into ac- mind would dare touch Social Security Personal savings accounts are not count both for women with disabilities today. They would not dare recommend progressive. They go with the market, as well as those who are indeed at the personal savings accounts for Social not with need. I am with the market. I end of the lower economic ladder. Security today, not when 53 percent of am in the market. I want more women Again, as we have this special order those receiving Social Security would to be in the market. But I would not we want to bring to everyone’s atten- be at the poverty line without it; not want my future, if I earned under tion the value Social Security has been when it is a major source for two- $25,000 a year, to lie with the market. to women; and as we reform Social Se- thirds of today’s beneficiaries. By all means, go into mutual sav- curity we want to urge those individ- I want to focus on the baby boomers ings. But women cannot afford to leave uals looking at the various options to and the younger women whose earnings Social Security as we know it today certainly understand that we should today translate into pensions or Social behind. not have any less protection for women Security tomorrow. Those are the The Republican majority would at- who have depended on this safety net women who are not secure. tribute the difference in wages between being there. And, indeed, Social Secu- The last time women Members came men and women to the fact that rity has been the one program that has to the floor to talk about Social Secu- women are out of the work force more worked for all Americans but particu- rity, I spoke from my past work as than men, and they tell us that all the larly for women. chair of the Equal Employment Oppor- time when we complain about women’s I want to commend, Mr. Speaker, tunity Commission, because it is from wages. That is true, but not entirely. again the Women’s Caucus for bringing that work that I learned to focus on And there is a debate between us as to this issue and allowing us to bring to women’s earnings. It is by focusing on what accounts for that gap. the Nation’s attention how important women’s earnings today that we have But let us assume for the moment Social Security is to the economic vi- any idea of their pensions or their So- that they are indeed correct, for pur- tality of all women in this country. cial Security tomorrow. Only by look- poses of argument, that the difference Ms. MILLENDER-McDONALD. Mr. ing at younger women in particular is because women spend more time out Speaker, I thank the gentlewoman. can we evaluate the notion of personal of the work force; and may I ask them A woman who has kept the focus on savings accounts. to please carry that thinking over to women as it relates to Social Security I want to be clear that we should all the needs of women into old age. If is a former co-chair herself. I would be saving, and we should be doing more they spend less time in the work force, H2622 CONGRESSIONAL RECORD — HOUSE May 4, 1999 they should be subject to less risk Ms. DELAURO. Mr. Speaker, I truly story. More than half of the elderly when it comes time for old age. am honored to stand here tonight with population would live in poverty today What will housewives contribute to my colleague from California (Ms. JUA- in this country were it not for Social personal savings accounts? What will NITA MILLENDER-MCDONALD), who has Security. part-time workers contribute to per- taken a leadership role in our Women’s Now, I have an 85-year-old mother sonal savings accounts? What will Caucus, along with the Congresswoman and she said to me, ‘‘Rosa, these are mothers who go into the work force from New York (Mrs. MALONEY), who supposed to be the golden years, but in later, who took time out, contribute to spoke as well this evening, in trying to many instances they turn out to be the personal savings accounts? Where are forge a unified coalition on two of the lead years.’’ And what she is doing is the family values when it comes to se- most important issues that face this expressing the frustration, she gives a curity for today’s young mothers? Nation, and that is Medicare and So- voice to that frustration that so many I am not talking about my mother. cial Security. elderly women feel that in their older Her Social Security is intact, and I b 2115 years. They face all kinds of obstacles think mine will be. But what about my to stability and to security, and with- daughters? That is who we must con- Quite frankly, we cannot talk about out Social Security these obstacles centrate on now. What about the young one without the other because of their would be even greater. mothers who are staying at home? And importance in terms of what they have My colleagues have focused tonight there are more of them because of the done in lifting older Americans out of on talking about the plight of women absence of a child care system, and poverty in this country, what they and how, in fact, Social Security does many more are going back home rather have done to change the face of health work for women today. And it is be- than go where they would like to go, to care for older Americans. They have cause they live longer, they are in and work. come to be two programs that working out of the work force, they make less Retirement becomes and is a burden families rely on in retirement security. money, they are often dependents, they in the thoughts of these women, and we They have become, if you will, the twin rely on a cost-of-living increase, they must make it less of a burden by en- pillars of retirement security. rely on a month-to-month lump sum of couraging them to save but also by as- As my other colleagues who have money which they receive. suring them that Social Security will joined on the floor tonight, they too Much of that goes away if we follow be there in the progressive way that understand the effect that the Social a program which people are talking their mothers and grandmothers have Security system and Medicare have about today, and that is to get us to known it. had on all Americans, and most par- privatize the Social Security system. Young women are most at risk. They ticularly for tonight’s discussion, for Those pieces of cost-of-living increases, are most in doubt. We cannot restore the stability and the financial well- benefits if you are a spouse, getting a confidence in the Social Security Sys- being of women in their later years. month-to-month lump sum, consider- tem by dismembering it. We must look They also understand the need to ation of less money earned by women, far more closely at the President’s protect these programs, to strengthen consideration of their being in and out plan, where 62 percent of the surplus these programs, to view them as suc- of the work force, all of that is taken goes to Social Security and 15 percent cessful programs upon which we need to Medicare. Then, of course, we have a into consideration in the Social Secu- to build, and to expand so that not only rity program today. That all goes away balanced notion of means tested per- people today who are eligible and sonal savings accounts. We encourage if we privatize Social Security. women today who are eligible for these I will speak for just a moment on my savings and help people to save and en- programs, but those in my generation State of Connecticut. Social Security courage them to save. and the generation of my children and If my colleagues do not like the has lowered the poverty rate among el- their children can utilize for their re- President’s plan, they should draw derly women from 46 percent to 8 per- tirement security. That is what is at their own plan, but plan it around cent. That means over 100,000 women stake. women who are the Americans who will are lifted out of poverty by Social Se- I might just say, with regard to most need the security our country has curity in my State of Connecticut. Medicare, that what we need to con- guaranteed for their mothers, for their I want to mention one proposal that tinue in that effort is to make sure grandmothers and for their great is on the table now that has been of- that, in fact, there are defined benefits grandmothers. fered by the majority party, by the Re- Mr. Speaker, I thank the gentle- that people know they can avail them- publican leadership, and that is the Ar- woman from California and the gentle- selves of in Medicare and that pri- cher-Shaw plan which was promoted woman from Connecticut for their im- marily we can build on the Medicare last week. I just want to say a few portant work in drawing these issues to system so that, in fact, we can offer words about this plan, and I want to our continuing attention. some opportunity for some relief on caution people to look at it very, very Ms. MILLENDER-MCDONALD. Mr. prescription drugs. carefully. Speaker, I thank the gentlewoman I think all of us today who are talk- This plan may be cloaked in the rhet- from the District of Columbia. ing with seniors with regard to Medi- oric of reform, but if we take a closer Mr. Speaker, Medicare and Social Se- care and their health benefits would look at it, it is a risky scheme that curity, as we know, will be two very tell us that the single biggest difficulty will end Social Security and put mil- important issues here in 1999. I cannot that they have and where they put lions of elderly women and men in think of a more deserving person to their health and their safety at risk is jeopardy. We cannot let this happen. come before us now to talk about these because they cannot afford prescription This is a delayed execution of the So- issues as discussion intensifies about drugs today, and if we are going to cial Security plan. the ways to strengthen Social Security strengthen and protect Medicare, that Let me just say that that is the goal. and Medicare for the future for women. we must not turn it into a voucher pro- But even if the true goal of my col- She has been in the forefront on these gram where people are told, ‘‘Here is a leagues or some of my colleagues on issues. sum of money, you go out and find it the other side of the aisle was to im- Certainly we recognize now that on your own, ferret out a program, you prove retirement security, this plan Medicare is required to cover are on your own, my friend,’’ when does not get it done. It is flawed from screenings for osteoporosis and breast what we ought to be doing is making a policy perspective. It claims to use cancer. She has been in the forefront to sure that this program allows for the the budget surplus to create individual make sure that this took place. We benefits to be there that they need and retirement accounts. These accounts have with us now one of the leaders of for them to be able to purchase and get are personal in name only. the House, the gentlewoman from Con- some kind of relief for the costs of pre- The CATO Institute, which is a very necticut (Ms. ROSA DELAURO), who will scription drugs. conservative organization, has talked come and speak to us on these two very Let me turn, if I can for a moment, about this proposal, and Michael Tan- critical issues as we broach Mother’s to Social Security. Because, as I have ner of the Institute told the Wash- Day. said, it is really our country’s success ington Post last week, and I quote, May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2623 that ‘‘The individual accounts are provided for us in this House to ensure one who worked there and I said, ‘‘How phoney accounts. They are made up of that we have Medicare and Social Se- much do you pay?’’ And they said, a tax credit equal to 2 percent of each curity as the top issues for women in ‘‘Minimum wage.’’ And I said, ‘‘What person’s Social Security taxable wages. 1999 and leading into the millennium. are my health benefits?’’ They said, It would flip Social Security on its I would like to echo what she said, ‘‘You would not get any of those or re- head by allocating, if you will, more because public education is important. tirement. Only management gets money and resources to the wealthiest We must make sure those who are to- that.’’ I said, ‘‘I guess I would not want in our society.’’ day’s citizens in this country, more of to work here.’’ It hurts women particularly. The them are women and the elderly, do But often one of the young women I claim is that the plan would extend So- not get hooked and locked on this pri- was talking to did not know the an- cial Security further than the Presi- vatization of Social Security and Medi- swers to those questions. She had to go dent’s plan to protect the program. care, especially Social Security. We back and ask the manager back behind They hold up a Social Security actuary must ensure their well-being, their the swinging doors. So many women report that estimates that their plan safety, their security by not having who are working do not ask the impor- would keep Social Security solvent for privatizing and not privatizing with tant question, ‘‘What are my pension 75 years. these private accounts that is being benefits?’’ But, my friends, the devil is in the discussed as we move into the discus- We know that most women who have details. They do not talk about the spe- sion of Social Security and Medicare. lost their jobs as a result of ill-fated cifics of the program. They hide the Mr. Speaker, I would like to now trade agreements, like NAFTA, lose fact that ultimately this plan elimi- yield to a person who has been on their pensions as a result and, in fact, nates all the surpluses, it forces the point, who is one of the senior Mem- most of those who have lost their jobs Federal Government to have to in- bers of the House, and she has just done under trade agreements like this, be- crease taxes, cut spending in necessary a yeoman’s job in talking about the cause they are minimum wage jobs and programs, such as domestic programs unique effects that this proposal, So- entry level jobs, are mainly minority that benefit women elsewhere in the cial Security and Medicare, will have women across this country. budget. They evade the fact that if the on women. The distinguished gentle- We also know that most women do rate of return on these individual ac- woman from the State of Ohio (Ms. not begin saving for their retirement counts drops by just one percentage KAPTUR) will now speak to us on Social and they think it will not matter to point, that the whole plan goes up in Security and Medicare. create a savings account that would be smoke and Social Security will fall Ms. KAPTUR. Mr. Speaker, I want to a supplementary account to Social Se- short by about 10 percent. thank the gentlewoman from Cali- curity. And if they do have a little sav- The long and the short of it, one fornia (Ms. JUANITA MILLENDER- ings account or an investment account, needs to look at it very carefully and MCDONALD) for championing this effort they do not hold it long enough so that very closely. What it attempts to do is this evening and so many of the other it would grow in a little bit of a larger deal with, as I talked about earlier, initiatives that she has taken as a nest egg. I want to say something privatizing Social Security in the long sparkling Member of this House, cer- about that this evening. run, which in fact is a detriment to the tainly the cause of women in this case, b 2130 Social Security program, in my view, in her role as co-Vice Chair of the in general and in particular with re- Democratic Women’s Caucus to bring We also know that women who do gard to women. us all to the floor this evening to talk manage to have a little bit of cash, if One of the purposes of why we are about Social Security, Medicare, and they have any at all, often do not look here tonight is to talk about it, is pub- women in America. at other investments that they might lic education. We need to let people I also want to acknowledge the gen- make during their working years, for know what is at stake and that, in fact, tlewoman from Connecticut (Ms. ROSA example, in buying a home. when we take a look at some of the DELAURO), the assistant Vice Chair of Today, with interest rates the way schemes that are on the table, they are our caucus, and so many of the other they are, many, many people, if they meant to turn Social Security on its women that have joined us this check it out, this is not just women head, to change the focus and the na- evening, our good friend the gentle- but people working across this country ture of this program that has meant so woman from Florida (Mrs. CARRIE and paying rent, you would be sur- much in the lives of families today, and MEEK), the gentlewoman from Florida prised if you really looked at all the our specific topic, for women’s lives (Mrs. KAREN THURMAN), the gentle- available programs, through your city, today. woman from North Carolina (Mrs. EVA through your county, through your lo- Again, we cannot afford to let it hap- CLAYTON), the gentlewoman from New cality. You would find you could buy a pen. I know that my colleagues are York (Mrs. CAROLYN MALONEY), and it home today cheaper probably than you committed not only to speaking on the literally goes from coast to coast. could rent it. You ought to check that floor of this House but taking this mes- Without question, Social Security is out. Because a home can become a very sage to the country to start to talk the lifeboat for a majority of seniors in important source of equity. You own about women and Social Security, our country and certainly for women. it. It does not belong to someone else. what it means, what it has meant in And even with Social Security, the It is very important this evening the past, what it means for the present, poorest people in America today are that all of us participate in this session and what it means in the future, and women over the age of 80. So even the to help educate the American people, that we are not going to allow this pro- current program, as critical as it is to and certainly women, about retirement gram, which has meant so much to the families and to citizens across our Na- planning. It is important if you are ap- safeguard of women and the independ- tion, could be made stronger. plying for a job to find out if that em- ence of women in their later lives, be Certainly for women, we know that ployer has a pension plan. Is it just So- jeopardized in any way. in the way that the formulas were cial Security? Or Social Security plus The American public needs to know written in past years they do not al- something else, like a 401(k) or an indi- what is at stake. The American women ways receive as much as men because, vidual retirement account. If they do need to know what is at stake. And I when they did work, their pay was less. have a retirement account, what kind am proud to join with my colleagues Others this evening have talked about of plan is it? And are you, in fact, par- tonight as we begin that program of women spending more time out of the ticipating in that plan? Were you asked public education. work force raising their children, car- about it? Did you ask about it? I cannot thank my colleagues enough ing for their families, often caring for You really also, if you are married, for letting me participate in this effort sick relatives. Women often work in need to know what your spouse’s plan tonight. jobs that have no pensions. is. I cannot tell you how many women Ms. MILLENDER-MCDONALD. Mr. I was amazed to go into a little cook- have come to me after the death of Speaker, I cannot thank my colleague ie shop in an airport in Chicago a cou- their husband and they say, ‘‘He didn’t enough for the leadership that she has ple years ago and I approached some- check the little box.’’ That means that H2624 CONGRESSIONAL RECORD — HOUSE May 4, 1999 my retirement pay from the company, gentlewoman from California (Ms. days within which to revise and extend putting Social Security aside for the MILLENDER-MCDONALD) has organized their remarks on the subject of this moment, is less. And they, of course, along with the gentlewoman from Con- special order today. do receive lower payments from Social necticut (Ms. DELAURO) is that Social The SPEAKER pro tempore (Mr. Security on the death of a spouse. Security is your base plan, and those of SWEENEY). Is there objection to the re- So it is very important to know what us here will make sure that Social Se- quest of the gentlewoman from Cali- your benefits are. You need to know curity remains sound as a promise be- fornia? which Social Security benefits you are tween generations. It is an insurance There was no objection. entitled to. And the Social Security program, a program of promise to the Ms. MILLENDER-McDONALD. Mr. Administration will tell you that if Nation. Speaker, as we continue to talk about you fill out the little card, they will be If there are seniors listening this both Social Security and Medicare, we able to tell you how many quarters you evening, do not get high blood pres- know that the faces of Medicare are have in, what your potential benefits sure, do not worry about Social Secu- really the faces of women you know. might be, and you can get ready for rity. You do not have to contribute to They are your mom, your grandma, that moment ahead of time. One of the any of those groups that make you pay your wife, your sisters. They might biggest mistakes women make is not money to say they will lobby for you even be the person whom you see in the asking and not finding out soon here in Washington. We are your best mirror. enough. lobbyists. Use us. You pay us through Medicare, being an important issue, Another issue women have to be con- your tax dollars to do your work for is very timely that we speak about it cerned about, and the American Asso- you. Save those dollars that you are today and we talk about this critical ciation of Retired Persons recommends paying all those lobbying groups. Put issue as it relates to women age 65 and these tips for women in addition to So- it in an investment account for your- older. Women are 58 percent of the peo- cial Security, think of your retirement self to augment your Social Security. ple who receive Medicare. At the age of security as a necessary expense, and no The most important thing you can do 85, that number will rise to 71 percent. matter how small your check, take a to preserve Social Security and Medi- At age 85, women outnumber men in few pennies or dollars out of that every care is to elect the right people to Con- the Medicare program two to one. month and put that in a pension progress. You know who they are, because Women’s average life expectancy is 6 gram that is separate from Social Se- they are right at home where you live. years longer than men. At every age, curity, that can augment Social Secu- You do not have to come here to Wash- women are at greater risk of poverty rity, which should be your base plan. ington to meet them. than men. Think about setting up an Individual Then if you have the ability, espe- There are many gaps in the Medicare Retirement Account. Your banker, cially if you are younger or even if you program, Mr. Speaker, and there are a your credit union preferably, your em- are not that young, to set a little bit of number of gaps in this program, most ployer can help you do this. But make extra money aside in a special savings notably the absence of coverage for sure that you control that money and account that earns interest, get a little prescription drugs and long-term care. that the employer does not control bit of advice on that. Talk to some of Also, in Social Security, we know that, that money. Make sure you have a your friends. Have some sessions where on average, women are in the work- voice in that. you live, in your neighborhood, in your force fewer years than men and earn Also, figure out ways to try to con- church, in your senior retirement less than men, yet women tend to live trol your spending. Create a budget building. Start little clubs where you longer. Meanwhile, women’s pension with savings in mind, cut unnecessary talk about investing money and take benefits are based on such factors as expenses and pay credit card balances. some of those bingo chips and take years in the workforce and lifetime If you can, think about resoling your some of those little earnings that you earnings relative to those of their hus- shoes rather than buying new shoes or band. moving up or down the hem in your have from bridge, even if it is a few dollars, and think about putting those Mr. Speaker, we must remember that skirt rather than buying a new one. just 33 percent of women retirees 65 There are lots of ways to put a little dollars away and seeing what they will earn. Maybe you can do it as a group and older versus 53 percent of retired bit of money aside for the future. men at that age receive a private pen- Really, it is a good idea to have a working with some of your credit sion annuity fund. In fact, in 1994 those budget. Then you will come close to it union advisers, let us say, in your area. were the numbers. Women simply can- or perhaps meet it, and you will begin It is important for you to learn about not rely on other forms of retirement to set up this little extra nest egg. money. As you learn more, your chil- Whatever you do, invest with infla- dren will learn, your grandchildren will savings to the extent to which men tion in mind. When women tend to in- learn, and the best teachers in America can. Women must continue to have a vest, they do so in very low-yielding are our mothers and grandmothers. So strong, secure Social Security and assets. They find out that the income they can do a lot to help those who are Medicare system that recognizes the from those assets in later years really younger than they are to plan for their need of widows and divorced women to does not cover inflation and taxes. own retirements. receive their spouse’s benefits. So I think this evening is very impor- I really believe you can start saving Lastly, any effort to strengthen our tant in helping women to think a little at a very early age and you can start retirement system must resolve this bit about planning for retirement. I thinking about your future years, vast economic chasm that exists be- know when I hold sessions in my own whether it is saving for education or tween women and men in America. district on women and money, it is the saving for your retirement. SECURITY, PROTECTION, SAFETY NET most popular session that we have. Ac- I want to compliment the gentle- Mr. Speaker, tonight Congresswoman tually, more people attend that than woman from California (Ms. DELAURO and I have gathered our colleagues the sessions we do on health. That is MILLENDER-MCDONALD) for holding this to address two critical issues concerning because women, though they have tre- special order this evening. She is doing women. As Co-Vice Chair of the Women's mendous financial responsibilities in a big favor to all the women and fami- Caucus, I think it is vitally important that we our schools, we do not always teach lies of our country. ensure retirement security for women as we how to manage personal finances any- Ms. MILLENDER-McDONALD. I work to strengthen Social Security and Medi- more. They used to have courses called thank the gentlewoman from Ohio (Ms. care. Social Security has played a pivotal role home economics. Those are sort of out- KAPTUR) for the outstanding contribu- in ensuring financial security for most elderly dated now, but we really need to have tion she has made tonight and the on- women, however there are still far too many financial planning for all of our citi- going leadership and support that she elderly women living in poverty. In our work to zens, including women. I know every gives to these critical issues. establish a better and more secure retirement woman in this country has the ability GENERAL LEAVE system, we must not exacerbate this situation to do that. Ms. MILLENDER-McDONALD. Mr. but rather, do all that we can to resolve the So I think my message tonight as a Speaker, I ask unanimous consent that discrepanacy now and for all future genera- part of this excellent session that the all Members may have 5 legislative tions. May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2625 Mr. Speaker, the Social Security rules pro- Women simply cannot rely on other forms of living their other sources of retirement income; vide critical income security for women. The retirement savings to the extent to which men but it is impossible to outlive one's Social Se- progressive benefit formula provides propor- can. Women must continue to have a strong, curity benefit. tionately higher benefits for low earners than secure Social Security system that recognizes The current system also provides extra ben- for high earners, which is important for women the need for widows and divorced women to efits to spouses with low lifetime earnings who continually earn less incomes than men. receive their spouses' benefits. Any effort to which helps many women, even if they did not In 1997, the median annual earnings year- strengthen our retirement system must resolve work at all outside the home. round for full-time workers was approximately this vast economic chasm that exists between Further, Social Security provides benefits to $33,000 for men and $24,000 for women, women and men in America. spouses of any age who care for children which means women are earning 74.1% of the I would like to thank the women and men of under 16 if the worker (other spouse) is re- wages men earn. the House who are joining us tonight to ad- tired, becomes disabled, or dies. Women rep- For working women in their fifties, who dress women's retirement security. resent 98 percent of recipients receiving bene- should be earning close to their peak salaries, Mrs. JONES of Ohio. Mr. Speaker, the sub- fits as spouses with a child in their care. the income differential is equally disturbing. ject, Social Security, is on the minds of our In the future, Social Security will continue to These women earned just 63 percent of what constituents. Citizens want to know if there will be important for women. As the labor force men of the same age earned in 1996. The en- be a system when they need it, and they want participation rates of women rise, women will tire group of older women have less than to know how the system impacts them as indi- reach retirement with much more substantial three-fifths the personal income of older men. viduals, as family members, and as tax pay- earnings histories than in the past. Therefore In 1996, older women had a median personal ers. They're asking good questions that re- the percentage of women receiving benefits income of approximately $10,000. quire good answers. based solely on their own earnings history is Providing higher benefits for women through It is especially encouraging to see the em- expected to rise from 37 percent today to 60 the current Social Security system helps com- phasis being given to the concerns of women. percent in 2060. However, this means that 40 pensate for the countless paychecks that are Comparing women to men, statistics dem- percent of women will continue to receive ben- at most 73 percent of their male counterparts. efits based on their husband's earnings. onstrate that women live longer, are paid less, Social Security also places the necessary em- These aforementioned provisions allow us and are more likely to depend on Social Secu- phasis on the value of raising children by help- to claim that our current retirement system is rity for retirement benefits. All women, whether ing homemakers establish retirement security. equitable and just. Significantly, both financial or not they have been in the workforce, need For these women, Social Security provides a necessity and social justice demand that to to know how the system works. retirement benefit equal to 50 percent of their maintain this claim, a new system must retain I am pleased to join in supporting you on spouses' benefits. For the homemaker who minimum, guaranteed benefits and critical pro- Tuesday May 4th as you discuss ``Women and becomes divorced after at least 10 years of tections so that women are not penalized for Social Security/Retirement''. I know that there marriage, Social Security provides a retire- inequity in pay and for taking care of the rest will be information disseminated that I will be ment benefit based on her former spouse's of us. able to share at the 11th District Forum, ``So- benefits. In addition, Social Security provides As Franklin Roosevelt stated: ``* * * [this] widow's benefits equal to 100 percent of her cial Security & You'', which I will host in law will take care of human needs.'' Let's not husband's benefits for the older woman whose Cleveland on May 22nd. forget women's needs. husband dies. Social Security survivor's bene- Mr. CUMMINGS. Mr. Speaker, recently, I urge my colleagues to remember women fits are even provided for younger widows leaders of the National Council of Women's and support social security reform that would whose children receive survivor's benefits Organizations came to Washington. Foremost bring their real life needs and circumstances while the widow is caring for them and not on their agenda was the impact of Social Se- into account. working. curity reform proposals on women. Mr. PAYNE. Mr. Speaker, I would like to For all of these reasons: the pay gap, the These women said ``Don't forget about us.'' thank Congresswoman MILLENDER-MCDONALD fact that women live longer than men, and the Our nation's social security system has had and Congressman DELAURO for arranging this current Social Security benefit rules, is why a a successful tradition of providing `àssistance'' special order tonight. We must bring attention significant proportion of older unmarried to our seniors and disabled. However, to the exceptional circumstances of women as women are solely dependent on Social Secu- changes in our society's economic and social we examine the Social Security issue. As rity. In 1994, 40 percent of unmarried women conditions warrant structural revisions. other Members of Congress have mentioned 65 and older who received Social Security de- Although there is no immediate danger to tonight, there are a few simple facts that show pended on it for at least 90 percent of their in- the system, the threat of insolvency has why women are effected by changes made to comeÐand more than one-fifth had no other moved us to take action to preserve Social Social Security more than their male counter- income. Even more alarming, half of older un- Security for the ``baby boom'' generation. As parts. First of all, most women earn a lower married women of color relied on Social Secu- such, this debate is not about whether reform salary than men and therefore put a smaller rity for 90 percent of their incomes, and for is necessary, but what structural revisions amount into the Social Security Trust Fund more than one-third of these women, Social would best suit our seniors. with every paycheck. They are also more like- Security was their only source of income. In Mr. Speaker, I submit to you today that as ly to spend a portion of their lives out of the real terms, this means that most elderly we evaluate these revisions, I will not forget workforce than men and women are half as women are living on just $10,000 to $12,000 that Social Security benefits are essential to likely as men to receive a pension which per year. Social Security clearly serves as a the women of America. means they depend on their Social Security vital safety net for women who are divorced or I will not forget that without Social Security, check as their sole source of income. Finally, become widows. more than 50% of all women over age 65 women live longer than men and depend on As strong as this system is, however, too would be living in poverty today. Social Security for a longer period of time. many women fall through the cracks. Nearly I will not forget that during their most em- Therefore, changes made to the Cost of Liv- three-fourths of the nation's four million who ployable years, women earn only about 74% ing Adjustment and the idea of converting So- are elderly poor are women. Older women are of what men are paid. cial Security funds in private accounts will twice as likely as older men to be poor. In ad- And, I will not forget that women are less have a drastic effect on the way that retired dition to the consistently lower income women likely to work full-time and more likely to women live. These factors must be taken into earn per year as compared to men, the dis- spend time outside the paid labor force while consideration when we decide how to resolve parity in other retirement options contributes to raising children. As a result, only 26% of the issue of the potential insolvency of the So- the feminization of poverty among our elderly women over age 65 received a pension of an- cial Security Trust Fund. While limiting COLA's women. nuity payment in 1995. may cut costs, it will lower the standard of liv- In the Nation's pension system, men benefit Our current Social Security benefits struc- ing for retired women because they rely heav- significantly more than women since most ture protects workers with lower lifetime earn- ily on Social Security as their only means of mothers do not have a consistent work history ingsÐincluding most women and minority income and they live longer and need these due to the time off for raising children. Just 33 workers. Social Security provides an inflation- adjustments to stay out of poverty. Private ac- percent of women retirees 65 and older versus protected benefit that lasts as long as the ben- counts may also have a negative effect on the 53 percent of retired men that age received a eficiary lives. Since women tend to live longer retirement income of women because they private pension annuity in 1994. than men, they are in greater danger of out- may outlive their accumulated funds. Private H2626 CONGRESSIONAL RECORD — HOUSE May 4, 1999 accounts may put many women in a position major regional conflicts. So you take a You give up? where they live the later half of their retired circumstance in Korea, you can take a That country, the global superpower, years in poverty. circumstance in Iraq, and now we have no longer exists. While Social Security is the economic main- the third circumstance with regard to You see, the force structure that I stay for many women, we must also make a Kosovo. If, in fact, the United States just listed is how much the American better effort to educate working women today found itself on a three-front war and military forces have been cut since about the benefits of investing in a pension we had the necessity to have to build a 1990. plan. We must give them an opportunity to in- force rapidly, we could do that when we So why does our force structure mat- vest so they do not have to live out their gold- maintain officer strength in the gen- ter so much? en years on an annual Social Security income eral officer corps along with senior First, let us look at the success. that amounts to less than the minimum wage noncommissioned officers. That is the In 1990 and 1991, the 45-day Gulf War for most recipients. This coupled with making reason we are going to hold the line on was highly successful. changes to the Social Security system that those strengths. So the chart that was Why? helps not harms women will improve the lives used tonight is somewhat misleading, Well, in our active forces in 1990 we of all women in their retirement years. and I wanted to correct the record. had 18 divisions. In the Air Force tac- Again, Mr. Speaker, I would like to Over the next 1 hour, the gentleman tical wings we had 24. Navy ships and thank all of the women who were here from the 52nd District of California submarines, we had 546 as we were tonight. We did not cover this as exten- (Mr. HUNTER) chairman of the Sub- coming out of the Cold War era. sively as I would have wanted to. We committee on Military Procurement Part of the success was not only the will be back, because as we embark and myself will discuss why all of the force structure, but it was also because upon Mother’s Day we must remember Members, and to inform America why we had a highly-trained, well-equipped the elderly women in this country and we should support the emergency sup- combat-ready force. their need for Medicare and Social Se- plemental appropriation that we will The question that is painful for those curity. be voting on here later this week. of us that serve on the Committee on f Let me be very clear that there are Armed Services and those who appro- some Members that point to this bill as priate funds on its behalf, was chal- REGARDING SUPPLEMENTAL lenging for the gentleman from Cali- APPROPRIATIONS BILL though it were some form of a ref- erendum on the President’s actions in fornia (Mr. HUNTER), and myself and The SPEAKER pro tempore. Under Kosovo, or that if we add additional others, is that we have to ask that the Speaker’s announced policy of Jan- funding to this supplemental appro- question: uary 6, 1999, the gentleman from Indi- priation that somehow we are forward Could we fight and win a Gulf War ana (Mr. BUYER) is recognized for 60 funding the Clinton-Gore war. There is today? minutes as the designee of the major- a lot of rhetoric, political rhetoric that You see, that makes us very uncom- ity leader. is being used around here. So what the fortable if you were to ask us that Mr. BUYER. Mr. Speaker, I serve gentleman from California and I would question, because we have forces in here in Congress as the chairman of the like to clarify for everyone is what is Korea on the peninsula, we have our Subcommittee on Military, a sub- the purpose of this emergency supple- forces in Iraq today, and now the Presi- committee of the Committee on Armed mental funding and why we have an in- dent has us in a third scenario in Services. Before I move into remarks crease in military funding in this bill former Yugoslavia. regarding the supplemental appropria- that is over and above the President’s So when we look at that force struction that will deal not only with the request. ture in 1990 and we see where President funding shortfalls in Kosovo and the I believe that this bill is mislabeled. Clinton and Vice President Gore have funding shortfalls to fund our national It should not be emergency funding taken us down to today with those military strategy, along with disaster with regard to Kosovo. This bill is nec- budgets, we today have: assistance and humanitarian aid, I essary to fund the national security Army divisions, we have 10. would like to comment on some re- strategy of this country. The President Air Force tactical wings, we only marks made by one of my own Repub- has the singular responsibility to lay have 13. lican colleagues here tonight during out the national security interest of And Navy ships and submarines, we the 5 minutes. He put up a chart and on this Nation. He then turns to the mili- only have 315. the chart he had lists that in World tary planners and said, ‘‘What is the The number that is used so often War II, with a 13 million force, we had national military strategy to carry here in Washington is, if we do not hold 31 four-star generals and with our force that out?’’ That is what makes us un- the line on the Navy, we could dip of today, we have 33 generals, and that comfortable today. below a 300-ship Navy, and that is fear- even though we have reduced our force, Let me pose to you this question. ful, my colleagues. we still have all of these general offi- Can anyone name this country, a coun- What is really concerning about cers. try whereby 709,000 active service per- these 10 active divisions: If you were to Being responsible for the force struc- sonnel, eight standing Army divisions, say, ‘‘All right, Congressman. Of those ture decisions of the United States 20 Air Force and Navy air wings with 10 divisions, how many are ready to go military, I would like to advise Amer- 2,000 combat aircraft, 232 strategic right now?’’ Five, only five because the ica that I have held the line on the in- bombers, 13 strategic missile sub- other five divisions are called the fol- crease, the demand for the increase out marines, with 232 missiles, 500 ICBMs, low-on divisions, and they have been of the Pentagon on general officer intercontinental ballistic missile sys- hollowed out. They are short over 300 strength. The force that fought World tems, with 1,950 warheads, four aircraft noncommissioned officers per brigade, War II, that military force, is com- carriers, 121 surface combat ships and over 300. pletely different from the military submarines. Can anyone name this So we have got some anxiety building force of today. We also have encour- country with that type of force struc- up between myself, and the gentleman aged jointness, greater cooperation and ture? from California (Mr. HUNTER) and oth- interoperability between all the serv- ers about our present force structure ices. When you do that, yes, you end up b 2145 today. creating some bureaucracies and an in- Is that country the former Soviet Let me put this into real numbers for crease in need for general officer Union? my colleagues, divisions, wings, sub- strength. But more importantly we are No. marines, ships. Let me put it into num- going to maintain the sort of rank- Is that country Russia? bers so my colleagues can relate, for heavy military for a very important No. those who are not familiar with the reason. Kosovo really is that third sce- Is that country China? military. nario, ‘‘third scenario’’ meaning we No. The Army has been reduced. When we have a national military strategy to Is the country the United Kingdom? say taking down the size of these divi- fight and win two nearly simultaneous No. sions and those who support them, we May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2627 have reduced the Army strength by been replaced by a thousand vipers. land, Portugal, Spain, Netherlands, 250,000 personnel. The Navy has been The enemy today is difficult to define. Panama, El Salvador, Nicaragua, Co- reduced by 200,000 personnel, the Air The force structure that we have, we lombia, Argentina, Egypt, India, Israel, Force has been reduced by 150,000 per- have to be more mobile and more fluid Kenya, Tanzania, Diego Garcia, Russia, sonnel, and the selected reserve has as we think of how to fight and win the Kazakhstan, Japan, Australia, China, been reduced 250,000 personnel. And next war. If you plan the next war how Singapore, Thailand. The list goes on, what is also very difficult today is we you won the last one, you have posi- and on, and on. So, we have taken our are not retaining the qualified per- tioned yourself for failure, so we have military force, we have cut down the sonnel, nor are we recruiting the suffi- to be very smart about our business. structure, and we have spread them all cient numbers to meet current service But what is clear here by this chart around the world, but you see the requirements. That is very challenging is there is a mismatch between funding President in their force structure says to many of us. and the use of military force. Now you we can transition from spreading our So why is force structure so impor- can look at this force here during the forces all around the world, and then tant? Why are we talking about that? Bush administration, and the dollars, all of a sudden we can bring them to- Force structure is important because and the procurement, and the funding gether and we can fight and win in two earlier when I mentioned the purpose and the readiness to utilization. Some near simultaneous major regional con- of the military, it is the means to the would be quick to say: Well, look, you flicts, and, oh, by the way, if we happen political objectives laid out by the have got too much money and you are to get bogged down in Kosovo, do not President with regard to our national not using the force. I heard our own worry, we can win. security interests. Secretary of Defense say: No, this is very uncomfortable, Mr. I am going to read from the annual ‘‘Well, what’s the purpose of the mili- Speaker, very, very uncomfortable. report to the President and Congress tary if you do not use them?’’ As chairman of the Subcommittee on Military Personnel, I have conducted signed by the Secretary of Defense Wil- I am not sure I can follow her logic. numerous hearings on the growing liam Cohen here in 1999. He lays out The purpose of the military is to fight and win the Nation’s wars and to problems facing our service men and our military strategy. The military protect our interests, not to utilize the women. Although pay and benefits is strategy is in sum, and says on page 17: In sum, for the foreseeable future war in every corner of the world as important, there are other equally im- U.S. forces must be sufficient in size, though we are the world’s policemen. portant issues stressing the force, quality of life issues, health care, lack of versatility and responsiveness in order You see, that is what gets us in trou- spare parts, lack of adequate training to transition from a posture of global ble. When I think of the paradox, it is al- time, the aging of equipment, the high engagement to fight and win in concert most those who say the B–2 bomber, depreciation rates on our equipment, with our allies two major theater of and this is before the Kosovo incident, increased operational tempo, longer wars that occur roughly at the same never dropped a bomb. That is a good working hours and the family separa- time. In this context they must also be thing, my colleagues. If the military tion, reusing and reusing the same peo- able to defeat the initial enemy ad- never has to fire a shot, that is a good ple. Asking them to do more with less vance in two distant theaters in close thing. When we are the finest, the best, is not a strategy for success. succession and to fight and win in situ- the most well equipped military in the Do not take my word for it, Mr. ations where chemical and biological world, who wants to take us on? Our Speaker. Let me read some excerpts weapons and other asymmetric ap- enemies are not cooperative. They take from a letter I received from a young proaches are employed. us on when we are vulnerable, and we Navy lieutenant: That is the present national military are getting vulnerable. Honor, courage and commitment are strategy. Look at this one right here. From words that are often used in jest. What So earlier I used this example of if we 1993 to 1999, we have reduced the budg- they should say is honor the sailor, re- are involved in a Gulf War scenario, ets, and we have increased the utiliza- spect the job and the sacrifices that he and North Korea decides to do some- tion. So during the Bush administra- endures. Have the courage to give thing foolish, do we have the force tion the War Powers Act reporting to those who risk their life every day in structure to fight and win a two-front Congress, there were six. President the defense of our country and democ- war? The open secret and the pain that Clinton’s term, and AL GORE, 46 reports racy the proper equipment to do their we have to deal with is we do not have have been sent to Congress. That is the job. Make the commitment to the basic the force structure to do that today. utilization. So not only has he taken human needs that every human being, I do not get into the strategy deci- even sailors, need for themselves and sions, but I am not going to be just the our military force and stretched them to those 135 countries around the their families. We need to provide the critic. I want to be the constructive fleet with all the tools to maintain our critic. Do my colleagues know what world, he has actually placed our military into harm’s way in over 46 places assets. Just-in-time manning and would be different from a Republican ramping up for deployment is ludi- administration and the Democrat ad- around the world. Over utilization. So what is happening to the force? crous. People and assets need to be in ministration with regard to this mili- The wear and tear on our forces, it is position and on board to benefit the tary strategy? I would take out where showing. It is showing, and the gen- rigors of the training cycle. Sailors it says in order to transition from a tleman from California (Mr. HUNTER) is need to be properly trained. They need posture of global engagement. I would going to talk about that coming up. to have the proper support, equipment strike those words from the military Let me go to this chart for just a sec- to test the systems, be it on a ship or strategy. You see, that foreign policy ond. When I talked about the utiliza- on an aircraft. They need publications of the President, this engagement tion all around the country, Mr. Speak- that are up to date. They need various around the world is what strains the er, the President has a foreign policy of hand and automated tools to ade- military force. So the President has engagement. Engagement. And he uses quately perform the maintenance and our military force stretched so thin in our military as though they are dip- maintain the equipment. I do not know so many different places around the lomats, and military-to-military con- what the fix is, and I do not know all world, that is what makes it chal- tacts and everything all around the the answers, but I will tell you I have lenging, and I am going to speak to world. But let us talk about some of never seen the Navy in such a sad state that a little bit more here later. the larger ones. of affairs. I love this business and have Let me also refer to the difference in North Korea, we have 40,000 troops. always believed that there is honor in the dollars that are used on the defense Bosnia, we have the 10,000. my chosen profession. Every cut back along with the utilization of the force. In Iraq we have 20,200 aircraft, 1 car- has a cost. In this case I think we cut You see, the world is not as stable, and rier battle group. too deep. this is a paradox. The world is not as Kosovo, 30,000 troops, 800 aircraft, This Navy lieutenant said it in words stable today as it was during the stand- one carrier battle group. for which I could not replace. So what off of the Cold War. So often we hear in But we have got troops all over the have we done? We increased those mis- this town that the Russian bear has place from Haiti, Honduras, Cuba, Ice- sions dramatically, we have stressed H2628 CONGRESSIONAL RECORD — HOUSE May 4, 1999 the force, and this sailor is sending a its only aircraft carrier in the western compensation, and we know that the basic message to the gentleman from Pacific and its 75 combat jets out of average military personnel today are California (Mr. HUNTER), and myself, the region indefinitely to help wage making about 13.5 percent less than and the gentleman from Virginia (Mr. war in the Yugoslavia campaign. their civilian counterparts. That BATEMAN), and the gentleman from If we have taken our only carrier now means if someone is an electronics Colorado (Mr. HEFLEY) and the gen- out of that region of the world to sup- technician in the Navy, they are mak- tleman from Pennsylvania (Mr. port this so-called humanitarian war, ing about 13.5 percent less on the aver- WELDON) who chair subcommittees in how can we satisfy the national mili- age than the guy who is working for a the Committee on Armed Services that tary strategy? We cannot. We cannot. private company out in industry. we need to take care of the force as The second quote is, the Pentagon The real tragedy of that is that, at much as we can, and that is the pur- briefly suspended enforcement of the the end, the bottom line is we have pose of our supplemental. We have no-fly zone over northern Iraq when today about 10,000 military personnel asked for some billions of dollars over fighter bombers and radar-jamming on food stamps. and above the President’s mark, spend- planes were dispatched to the air war As I watched the stock market go ing mark, and what we are trying to do in Serbia. through the roof the other day, I is to fund this national military strat- Mr. Speaker, if we are having dif- thought about that. Here we are in one egy. ficulty here at the moment maintain- of our most prosperous times and peo- This is no attempt by the gentleman ing the front against the forces in ple are commenting on the endurance from California (Mr. HUNTER) and my- North Korea on the peninsula, main- of this prosperity that we have had, the self or others to front load some taining the no-fly zone requirements in longevity of this prosperity. We have a Kosovo war or anything else. We recog- Iraq, and we have this war now in military that is half as big as it was a nize that there are stresses in the Kosovo and we cannot even mix and few years ago, and the men and women force. match, that is a very strong signal to in that military are underpaid, and The gentleman from Pennsylvania us that we have to take corrective ac- 10,000 of them are on food stamps. (Mr. WELDON) tells a story about some tion, and it is immediate. So, wrong, the first instinctive reac- F–16s in the Pennsylvania National If all we do is fund what the Presi- tion is this must be a well-paid mili- Guard that did not have GPS, the glob- dent’s request is, all we do is fund the tary since it has been cut in half. An- al positioning system in the F–16s bullet for bullet which they are firing, swer, no. when they were deployed to Iraq in op- shame on us. We have to step forward, Second, people must think, well, my eration Provide Comfort. So what did bite the bullet, that the gentleman gosh, it is half the size it was, it must the pilots do? They went to Radio from California (Mr. HUNTER) is going be really well trained since it is pared Shack, bought it, strapped it onto their to talk about, and do much more than down to this smaller force. legs. that and go beyond. I think of Colonel Rosenberg, who When one is flying an aircraft at high I yield to the gentleman from San was one of the national trainers at the altitude over the desert, there is not Diego, California (Mr. HUNTER), a high- National Training Command hearing much to navigate off of, and one has to ly decorated Vietnam veteran and well that the gentleman from Virginia (Mr. have that GPS system. I feel awful, respected in this House, the chairman BATEMAN), chairman of the Sub- America, that we are not even doing of the Subcommittee on Military Pro- committee on Military Readiness, held the modernization of our force and pi- curement. at Nellis Air Force base in Nevada. lots are actually going to Radio Shack Mr. HUNTER. Mr. Speaker, I thank Colonel Rosenberg said, and I para- to modernize their own fighter aircraft. my good friend, the gentleman from In- phrase him, he said, it is a real tragedy b 2200 diana (Mr. BUYER), for yielding me this that this military that we built out of That is sad. time and for making such a superb the ashes of the Vietnam War, that Let me move now to a quote from presentation on the inadequacies of won so overwhelmingly in Desert Admiral Jay Johnson. He said, we have military funding that exist right now. Storm, is being destroyed before our approximately 18,000 gap billets in the I have to protest that I did nothing very eyes. fleet. What does that mean, Mr. Speak- special in Vietnam. I simply showed When we asked for particulars from er? That means in the Navy today we up, but I did serve with a lot of great Colonel Rosenberg and others who were are 18,000 sailors short. people. I want to commend my friend testifying there, these are the trainers Navy ships are being deployed at 10 for his participation in Desert Storm. at the National Training Center, it is to 20 percent under their strength. I think a good point here that the kind of like the military college where What does that mean? That means that gentleman made very strongly is the the infantry goes and the armor goes when an aircraft carrier or a cruiser, fact that, while the military has and the artillery units go to get their when they leave harbor, they are leav- shrunk by almost 50 percent, and most upper level training. Once they have ing about 80 percent strength. So when people do not realize that but some graduated from high school, so to they are deployed at sea and they end people realize that, they realize it is speak, they go to this military college, up with injuries, a workplace injury, a smaller, the natural tendency is to feel which really is a big training ground back or sick call, there are no replace- that since it is 50 percent of the origi- out in the desert in the West, and they ments. They do not send replacements nal size it has been cut back so dra- have to perform against a mock enemy, out to sea. Everybody has to then carry matically, over 200,000 people in the and they are given points. the load. Navy and 200,000 people in the Army The trainers said, among other So instead of now working in the and so on, the team that is left has to things, the troops that we get often do boiler room where maybe 10 people are be well paid, well armed and well not know anything about maneuver assigned they now have seven. Two trained. with armor. They do not know any- people get hurt, five now have to pick One would think, boy, the residual thing about the basics of calling in ar- up the load. Instead of working 10 people that we have there after we tillery fire. They do not know how to hours, they are now working 14 hours. pared it down from this huge military handle many, many procedures that That is what is happening to our force, that we had, a lot of people think we have to be handled on the battlefield. and it is very, very difficult. had in 1990, 1991, this military has to In other words, this is like getting peo- Let me mention Kosovo for a second. really be just in great shape, with lots ple in their first year in college and Here is something that is also very, of new equipment and ready to go. one realizes that they never should very concerning to us. The current The tragedy is, we have cut the mili- have graduated from the 11th and 12th Kosovo mission has forced the United tary almost in half; and the half that grades in high school and one feels like States to divert planes from their pa- we have left is not well paid, number they have to send them back for a re- trols over Iraq in order to support the one. The gentleman has really done fresher course. ongoing campaign. wonders working as chairman of the We have fine young people in the This quote here, in the New York Subcommittee on Military Personnel, military. So why are not they getting Times, in early April, the Navy shifted and he has been pushing hard to get the training that is necessary, at least May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2629 to get them into the upper training about this emergency supplemental, Mr. HUNTER. That is exactly right. level? Well, the answer is, those dozens and I hope every single Member of Con- Mr. BUYER. Mr. Speaker, I would of deployments that the gentleman gress, Democrat, Republican, liberal, like for the gentleman from California just talked about, that the gentleman conservative, I hope we all vote for it (Mr. HUNTER) to discuss that assump- from Indiana (Mr. BUYER) just talked tomorrow. Because if there is anything tion of risk, how serious is it, how is it about, where the President has pulled that is an emergency, it is an inad- measured and what we are going to do people out of school, and a lot of these equacy of ammunition. We have a about it in the supplemental. military schools are very technical, shortage of ammunition. Mr. HUNTER. The gentleman is ex- they have to sit there in a classroom One of the most important ammuni- actly right. Because every time we and really learn to know their job, but tions that we have a shortage of is have had one of these contingencies these people are pulled out of their cruise missiles, long-range missiles, where the President wants to send schools before they can finish it. They like Tomahawks, like conventional air troops, whether it is an operation that are kept from going to their schools. launch cruise missiles. Because what we consider justified or not, every time It is like a kid who is in high school. we see today is a very complex and dif- we have one of those operations, to He is supposed to get good grades his ficult to penetrate air defense in most fund the operations initially they take last year in high school. His dad has a of the world where we have to operate. money out of the ammunition ac- farm, and his dad pulls him out of class We see that in Kosovo right now, but it counts. They also take money out of 3 days out of 5 in the week, so he is is not limited to Kosovo. We are seeing the spare parts accounts. That is why only going to class about half the time the Iraqis continue to strive to build our mission capability rates are drop- he should have gone to class in his sen- an air defense that is going to be able ping below 70 percent on average. to take down American aircraft. They ior year, and all of a sudden he figures b 2215 out he is not ready for college. have not done it yet, but they import That is what this President has done SAM missiles. We see that with the They have dropped more than 10 per- with this downsized military. He has North Koreans. cent, meaning a plane, out of 100 air- stretched it all over the world. So anyplace we go, we figured that craft that take off that are built to do The average person will say, wait a the air defense over North Vietnam a particular mission, only about 70 of minute. Those people that are in Bos- was more intense than it was over Ber- them now can do that mission. nia, that is training. Well, it may train lin in World War II because of surface- So the President takes that money, them for deployment, but it does not to-air missiles. So we devised a way to or the military looks around for train them with the simulators. It does allow our pilots, our neighbors who are money, Congress is not giving them not train them with the test ranges pilots, to go out there and fly their any extra money to fund an operation that we have. It does not train them mission, release a payload and return where the President said, you steam with the classroom work that they to their carrier deck or the tarmac of over here and do this mission, so they need. their runway without being killed. take it out of ammunition. They were So the second fallacy most people be- The way we were able to do that is going to buy that ammunition, but lieve is that this smaller force is well with cruise missiles. That is stand-off they will buy it next year, right, when trained, and it is not. missiles. That means a B–52 does not they get the money back? One last example, talking to the Ma- have to fly into all that flak like they All of a sudden, they do the mission, rines, we talk about the V-STOL air- did over North Vietnam in December of they get a little money back, maybe in craft that goes straight up off the 1972 when, as I recall, about 10 were a supplemental funding bill, but they ground, the jet aircraft, that the Ma- shot down the first day. never get as much as they took out, so The gentleman from Texas (Mr. rines use, instead of going down a run- the ammunition accounts get lower JOHNSON) recalled sitting in his prison way and lift off; very, very difficult and lower. cell and watching a B–52 get hit in mid- aircraft to fly. When one asks the Ma- They say, when they appear before air by a SAM missile and just explode rines, how many hours do these pilots us, and the gentleman always asks that before his eyes. great question, and the gentleman really need to maintain proficiency in We are flying those same B–52s from South Carolina (Mr. FLOYD this very difficult aircraft, they will al- today, but we have missiles on them SPENCE) asks that question, as well, ways say, over 20, 22, 24 hours a month. that are launched from many miles our great chairman of the Committee They have to have that to maintain away from the target. The cruise mis- on Armed Services, he says, what is proficiency. sile takes off, it travels like an un- going on here, Admiral? What is going What are they getting? They are get- manned airplane itself, and it hits a on here, General? Can we win these two ting about 12. They are getting about target. And, meanwhile, the pilot is 12, because there is no money for train- hundreds of miles away from that anti- wars? ing. That is just one of the many, aircraft fire; and he returns safely to They say, well, we can win those many examples of inadequate training. his base. We are short on those mis- wars, but we now are taking on a high- So that second fallacy that these siles. er risk. When we ask them to translate people are well trained is, in fact, a fal- It does not make any sense that this what risks means, it means risk of cas- lacy. country, as prosperous as we are, as de- ualties, heavy casualties. Because we Lastly, one would think, my gosh, if voted to human life as we are, and es- cannot win a war now with over- we have an Army that is 10 divisions pecially the lives of our service people, whelming force, like Norman today instead of 18 divisions, we have a should have a shortage in cruise mis- Schwartzkopf did in Desert Storm, Marine Corps that has been cut back, siles. where you just crush the enemy, bring we have a Navy that has been cut back, I want to tell my friend, the gen- all your body bags empty to the United and I noticed the gentleman from Indi- tleman from Indiana (Mr. BUYER), who States. There are no dead Americans to ana (Mr. BUYER) is more precise than I has made just an eloquent presentation put in them, and they all come home am, we had 546 ships when we started, tonight, we are short on cruise mis- fairly quickly. when we did Desert Storm. When we siles. We are short several billions of We no longer have that over- made up our chart last year, we had dollars’ worth of cruise missiles. whelming force. What we have is the 346. When I gave my last briefing, it Mr. BUYER. Mr. Speaker, let me ask ability, like two fairly evenly-matched was 325. Now it is down to 315. We are the gentleman from California (Mr. fighters, to slug it out, taking a blow dropping like a rock. HUNTER) this question: I have the sense for every blow that we give. That One would think when this Navy has that the military planners in the Pen- means taking dead Americans for every been compressed to such a small fleet tagon, in order to maintain readiness casualty we inflict on the enemy. And those ships that are there must be bris- levels to their comfort, they have hopefully in the end, because we have a tling with armaments. Wrong. It is not taken money that should have gone to superior industrial base and because we well armed. The reason is, we have ammunition and they are using it to have a democracy with a strong econ- starved our ammunition accounts. If maintain present operations and they omy, we overwhelm the enemy at some anything qualifies, if we are talking are assuming a risk, are they not? point, maybe the allies come in and H2630 CONGRESSIONAL RECORD — HOUSE May 4, 1999 help, and we finally win. But when we that we are unwilling to assume a risk All of a sudden we discovered this win, it is like one of those boxing that will increase casualties in a war third-rate military pushing our people matches where the sportswriter said scenario around the world, the funding down the Korean Peninsula. They over- that after looking at the faces of both shortfall if we do not do even a piece of whelmed the 25th infantry division, of the fighters, it was hard to deter- that in the emergency supplemental, I captured the commanding general, Wil- mine who the winner was. Instead of would say to the gentleman from Cali- liam Dean, our bazookas bounced off looking at the faces of the fighters, we fornia (Mr. HUNTER), would we not have the T–64 Soviet tanks, because they are looking at body bags stretched out to wait then until the 2000 budget had not stood still, they had continued in front of us of dead Americans who cycle, which means that the ammuni- to make and develop their weapons sys- ran out of ammunition. tion and the missiles which we are re- tems, and we lost a lot of people. Right now the Marines are $193 mil- questing may not even get to the force In my cousin’s home in Fort Worth, lion short of basic ammunition, and until about 18 months from now? Texas, we have a picture of my second the Marines are the 911 force. The Mr. HUNTER. The gentleman is ex- cousin, Son Stillwell. Son was a Second Army is $3.5 billion short of basic am- actly right. In fact, we will have to Lieutenant in the U.S. Marine Corps, munition. wait for next year’s funding, so we will First Lieutenant in the U.S. Marine That is not a standard that I created, have to wait at least 4 or 5 months be- Corps who died in Korea. Lots of us in and that is not a standard that the gen- fore we can even enact the bill and America have pictures on our mantles tleman from Indiana (Mr. BUYER) cre- have next year’s funding levels start. of people who lost their lives in wars ated or the gentleman from South That means having the Pentagon ready which we were not prepared to fight. Carolina (Mr. FLOYD SPENCE) or the to start making contracts. Probably nobody today knows or can gentleman from Florida (Mr. BILL And then most of these ammo lines, remember what social program took YOUNG), who is chairman of the Com- some of them are closed, so most of priority over a strong military in 1950, mittee on Appropriations, who has these ammo lines will have to be reas- when so many of us lost relatives in done such a great job, along with the sembled, the assembly lines. By the the Korean War. But everybody that gentleman from California (Mr. JERRY time the soldier actually gets the bul- looks at those pictures on their man- LEWIS), chairman of defense appropria- lets in the field or the airplanes get the tles remembers who they lost. tions, of putting this supplemental to- cruise missiles or the Navy gets its I would say that our number one ob- gether. particular missiles, 18 to 24 months can ligation as Members of the U.S. Con- We did not go out and set some go by. gress to our people, and we do lots of standard and say, we have decided that Do Members know what is inter- things for people that the Constitution instead of 100 million M–16 rounds, we esting, some of the administration peo- never mandated, we know that, and we want 200 million, that is a Republican ple have argued, well, we cannot exe- all participate in it. But our number standard. We took the President’s cute this contract in the next 12 one obligation is to defend our people. standard. We wrote in to the services months, so we do not think we should We have allowed the military to be and said, how many M–16 bullets do do it now. They are saying, it takes a bled down so low that we can no longer you need to be able to fight that two- long time to get ammunition, so let us look our constituents in the eye and war contingency that we might have to not start now. say, we can defend you and we have a Well, when do they want to start? Do fight? How much should we have in re- real good chance of your youngsters they want to start when we have a con- serve? coming home alive. flict and we discover that we are out, They answered back. In fact, they an- Mr. BUYER. If the gentleman will we are empty? And I think our enemies swered back across the total line of continue to yield, Mr. Speaker, I have should make no mistake about it, we ammunition. I have a summary of that heard some comment by Members that still have an enormous nuclear arsenal, here. In total ammunition across the some of the emergency supplemental but I do not think anybody in this board, and I have two pages here, but I funding will actually be coming out of Chamber wants to rely on a nuclear ar- will show Members just a summary the social security trust fund. In other senal as a deterrent. page, we are $13.8 billion short, accord- In 1950 we did. One of the arguments words, if Congress had made the pledge ing to the President’s standard. That is for drawing down the force, we had 9 that every dollar of the surplus is to go according to President Clinton’s own million people under arms in World to the social security trust fund, are standard of how much ammunition we War II. We just stacked arms. We got we not really spending that social secu- need. out of the military so fast and drew rity dollar on defense? So when the President says, I do not those units down so fast, because We have also recognized that there want you adding extra things to this Americans wanted to come home and will be funding in the surplus for pay- defense bill, he means that he does not have babies and work on their farms ments on the national debt and a tax want to give the full load of ammuni- and get jobs and enjoy the prosperity cut for any dollar that is over and tion to his troops that his own clerks of America. We stacked arms. above that allotment towards social se- and auditors and generals and admirals General Marshall was asked, how is curity. have figured out they may need in an the demobilization going, in 1948? He I will concur with the gentleman’s extended battle. Somehow, ammuni- says, this isn’t a demobilization, it is a comment that one of the first require- tion is no longer a prerequisite to hav- rout. We are just throwing our guns ments of a government is to protect its ing a strong military. away. A few years later the Koreans people. I think what makes me very I would say if there is anything that marched down the Korean peninsula, a uncomfortable, the gentleman and I is an emergency it is ammunition. If I third-rate military, and almost pushed and those that serve in this body, it is had my way, let me tell the Members, us into the ocean past the Pusan pe- easy to be the critic of the President or we would have a supplemental tomor- rimeter. those in the Pentagon, but we have to row of not $13 billion, but one that was We were pretty sure that the Chinese become very constructive, because we $28.7 billion, because that is what the would not mess with us. In fact, we are responsible. services told us they could use right didn’t think anybody would mess with The Constitution, does it not, I would now in ammunition and spare parts us because we had nuclear weapons. In ask the gentleman from California (Mr. and equipment. Because we not only fact, in those days we had the only nu- HUNTER), places us with the singular want to have enough ammunition for clear weapons. responsibility to build the force and the soldiers’ ammunition pouches, we One reason that we allowed our make sure that it has what it needs to also want to have planes that can take forces to get so small, and incidentally, meet the legitimate needs of this Na- off and lift off the ground. Today, as the Army was 10 divisions, just like it tion. Members know, our mission capability is today, we had drawn it down that So when the gentleman laid out the rates have been dropping like a rock. small, but we figured that nobody scenario of what happened in Korea Mr. BUYER. If the gentleman will would mess with us because we had nu- after World War II, the gentleman al- yield further, Mr. Speaker, if the gen- clear weapons. We had this high tech- most laid out the scenario that history tleman’s concern is as great as mine nology that everybody was afraid of. is about to repeat itself; that those of May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2631 us, myself and the comrades who to ask this question, but I am going to because I think we have got to have a served in the Gulf War, America and lay out a statement first. lot of Tomahawk missiles because we the world was impressed with our high- If we do not have access to some of cannot tell how fast we are going to tech military force, so much so that no our high tech munitions such as laser- have to use them. And I think we one would dare take on the United guided munitions, where an aircraft should build at least as many as Presi- States military, especially in an air- can stay miles up and drop a laser- dent Clinton’s own analysis say we land war, and that we could move any- guided munition through the front need for the two-war requirement. where in the world we want. door of a target, I have heard com- But to answer the gentleman’s ques- So in the face of such a deterrent, we ments, the hall comments, that we tion, standoff weapons mean that Air drew down the force so rapidly and so have all types of dumb bomb munitions Force families get to see their daddy. quickly that now in force structure it that we could access. And having to fly over a target and is there, we have people. They are not But if we are to play into this, that drop a gravity bomb on that target as well-equipped as we would like. we have so much dumb bomb muni- with all that anti-aircraft fire and all They are not as well-trained. And, oh, tions, are we not asking our pilots, who of those very sophisticated surface-to- by the way, if we have to use them, I could stay miles above, to assume a air missiles shooting back means that guess we will try to use what ammo we risk? Because in order to drop that we of going to have dead pilots and we can, and we will never be in a two-war dumb bomb, they are going to have to are going to have prisoners of war. scenario, anyway. We hear that rhet- come down into radar coverage, pick Mr. BUYER. As the Chairman of the oric around the town. up the sight of their target, and imme- Subcommittee on Military Procure- But I would say to the gentleman diately pull out. So those who are ad- ment, I would like for the gentleman to from California (Mr. HUNTER), if we do vocating, well, let us just drop dumb comment on some other questions that this plus-up in this emergency supple- bombs, we will assume risks. Members are asking and some of their mental, would the gentleman agree comments that increasing this billions that we can immediately open up these b 2230 of dollars over and above the Presi- lines for the missiles and begin replac- It is stunning for me how some peo- dent’s number, that we are putting in ing a lot of the needs? ple in this body are willing to let sol- things that the Pentagon did not ask Mr. HUNTER. Yes. Mr. Speaker, to diers and sailors, airmen and Marines, for and that it is pork laden. So I ask answer the gentleman from Indiana pilots assume risks and not adequately the gentleman to comment on that, be- (Mr. BUYER), and he has made such an equip them. Does the gentleman have a cause I know the numbers that I put eloquent presentation and made a comment? together for the Guard and Reserve, I great case for increasing our national Mr. HUNTER. I would say there is no spoke to each of the chiefs of each of defense funding, if we do in fact come sight more gratifying I think to the services for their go-to-war require- up with this money, one thing we can member of a military family, to a ments. Period. Operational. I yield to do is go to the vendors. spouse and the kids, than to have their the gentleman. If we have an ammunition line or a dad get off of that airplane or get off of Mr. HUNTER. Let me answer the spare parts line or a missile line, you that ship in the good old United States gentleman. I can tell the gentleman may have 25 or 30 major suppliers, com- and welcome them with open arms to that I sent over a request to the serv- panies that used to make little parts come home. ices to tell us exactly what they need. for that particular unit. You have to go Bringing our pilots home is very im- I did not ask any contractors what get them and say, hey, you have to go portant to us. And the thing that al- they wanted to sell. And I did not ask back into business, because we are low lows them to come home alive is for any congressmen what they wanted to on ammo and we need to get this ammo them to be able to keep their plane a get for their district. turned out quickly. hundred miles from the target, launch I think most of the congressmen that We can work with them, with a part- a standoff weapon that can go in and I have talked to just want to get what nership of business and government. hit the target while they stay out of is right for America. They realize we We can get in there and accelerate have got to refill the ammunition cof- range of those surface-to-air missiles. those lines and get them up and get fers. This list, it represents a direct re- And I think one of the greatest agonies producing. I think we can start turning sponse from the services with respect that we ever endure is when we have out, for example, cruise missiles and to how much they have right now in POWs and when we see what happens to other things a lot faster than the Pen- terms of cruise missiles and all the some of them. And we have listened tagon thinks we can. I think when the other things that we need and how their stories when they come home. We Americans really want to do some- much the President’s own analysis says have had some great ones on both sides thing, they can do it. we need and what the shortages are. With respect to the senior citizens of the aisle, Democrats and Repub- So they sent over the shortages. We and their concern about social secu- licans. did not get them from anybody else. rity, my feeling is, I have no qualms Smart weapons, standoff weapons, We did not set any new standards to about using this money for an emer- cruise missiles save lives. It is an abso- try to embarrass the President. We just gency. Lack of ammunition is an emer- lute disservice to our uniformed people used his standards. That is what this gency. The generation that saved Pri- to not give them the very best. They is. vate Ryan is going to want to help save deserve the very best. They are not Incidentally, the cruise missiles I am this country. I am reminded that with- getting adequate pay right now. We all sorry to say, they used to be built in out national security, there is no social know that. They are 13 percent below San Diego in my district. Well, about security. the domestic sector. We are trying to 10 years they moved out and they are With respect to the other programs, ramp that up. I know the gentleman is now built in Arizona across the Colo- the tax cuts and social programs, leading that charge and he is going to rado River, and so Arizonans have jobs whether you are a liberal who loves so- get some fruition to his efforts. That is building cruise missiles. I do not care. cial programs and thinks tax cuts are one reason why the gentleman from I do not care if they are built in the terrible, or you are a conservative like California (Chairman LEWIS) and the northeast, the Midwest, wherever. myself who thinks that tax cuts in- gentleman from Florida (Chairman They save pilots’ lives. I would like to crease the economy and increase jobs, YOUNG) and the other members of the have them come back to San Diego no matter where your position is on Subcommittee on Defense and the full some day, but I do not think that is the political spectrum, we should all Committee on Appropriations sat down going to happen. But I think all Ameri- agree that ammunition comes first. and added ammunition to this supple- cans just want to see ammunition right Let us have ammunition before we mental, they added a lot of smart now. have tax cuts and before we have social weapons. Mr. BUYER. Will the gentleman programs. I do not think anybody Mr. Speaker, I am going to offer an yield? The large request that I put in would disagree with that. amendment that I hope is approved by was in excess of $800 million. My dis- Mr. BUYER. If the gentleman will the Committee on Rules that allows us trict: Agricultural. A lot of corn, soy- continue to yield, Mr. Speaker, I want to restart the Tomahawk missile lines, beans, wheat, a lot of pork, cattle, H2632 CONGRESSIONAL RECORD — HOUSE May 4, 1999 chickens, duck production, auto- in Iraq right now or wherever they are issue. So we are going to make sure mobiles. I do not have the big defense in the world to face a threat they have that we try to address it by the breadth contractors. So those who want to say to be able to sleep in comfort that the and we are going to be smart about our that it is pork laden, I do not sell any gentleman from California has made business. of my hogs, none of my hogs out of In- sure that their son or daughter can ac- Let me close with this one story that diana for this bill. cess just in time to get that ammuni- has always moved me, and I think it Mr. HUNTER. Mr. Speaker, let me tion. And that is why I compliment the will go to the heart of the spirit of why say to the gentleman who put together gentleman. the gentleman from California and oth- this Guard and Reserve package and Mr. HUNTER. Mr. Speaker, I say to ers work so very, very hard on these does it for the Armed Services Com- my friend, I thank him for that com- issues. I think of the World War II vet- mittee, the gentleman has always pliment. When I see the gentleman eran. It is the World War II veteran I acted with total integrity and has al- from Indiana up there in the Com- believe is a generation that changed ways met the needs of the services. Un- mittee on Armed Services, I see a sol- the world and left freedom in their fortunately, we have always had to cut dier who has a great integrity and de- footsteps. what the services need, cut the supply votion to his country and to his people Mr. Speaker, I will conclude by say- of resources that we are going to give that he serves with and to the people ing that they understand the total sac- those shortages by about 50 percent. that are still serving. The gentleman rifice and they have taught a genera- There are lots of things that the Guard has done a wonderful job. tion what freedom means. The gentle- and Reserve need right now on their What I think is a great tragedy is man’s example on Korea here tells us equipment and in their training and in that I do not think we are fulfilling our let us do not relive history. Let us ac- their ammunition and spare parts to be obligation. I do not think we as a body cept the responsibility. This is not an able to go off and serve in a foreign are fulfilling it. And if we get to a emergency supplemental for Kosovo; theater. point where we have our Marines and this is funding our national military Mr. BUYER. One of the examples the soldiers or sailors or airmen coming up strategy and it must be done. Chief of the Army Reserve put on the short of ammunition, short of spare f list, he requested fire trucks. It would parts and more of them die on the bat- NATIONAL TEACHERS DAY be very easy for someone who does not tlefield because of that, then we will The SPEAKER pro tempore. Under know anything about the military to have failed them. the Speaker’s announced policy of Jan- look at the list of equipment neces- So I hope that every Member votes uary 6, 1999, the gentleman from New sities under the emergency supple- for this supplemental appropriation to- Jersey (Mr. HOLT) is recognized for 60 mental and say why are we funding fire morrow and I hope they vote for the minutes. trucks? amendments. And it is going to be in Mr. HOLT. Mr. Speaker, it is a pleas- The answer is very simple. The Army two days. I hope they vote for the ure on behalf of my colleagues today to Reserve has the ground support mis- amendments that increase the ammu- recognize National Teachers Day and sion for the Apaches that were sent nition supply. Even if we vote for National Teacher Appreciation Week. over to Albania and the present fire those, we are still going to be about $12 We know the old bumper sticker that trucks from the Army reserves are uti- billion short of basic ammunition. So reads, ‘‘If you can read this, thank a lized in Bosnia and they need to have we are not taking care of the problem, teacher.’’ Well, tonight I would like to the fire trucks. but we are taking care of part of the thank teachers. Mr. HUNTER. People need to know problem. The gentleman from New Jersey (Mr. when an aircraft comes in on fire, and I really thank the gentleman for his MENENDEZ) organized this special this is one thing I learned in San Diego hard work. And maybe the gentleman order, but was unable to be here to- watching our Federal firefighters who could share with us his ideas too about night because he had to attend a fu- handle the jets out there, they have to how we are going to finally close this neral. But on his behalf and my col- have incredible training and great pay gap over the next several months leagues’, I would like to talk a bit equipment to be able to put out those and years. about teachers. fires on the aircraft and save lives. So Mr. BUYER. Well, I will close this to- According to the National PTA, the they have to carry a contingent of fire- night and reclaim my time that on origins of National Teachers Day are fighters with them. May 13 we will mark up the Sub- somewhat unclear but it is known that Mr. BUYER. Mr. Speaker, if the gen- committee on Military Personnel’s Arkansas teacher, Mrs. Mattie White tleman would yield?, he will be happy Chairman’s mark and we are going to Woodridge began corresponding with to have yielded to me because I am address the increase in military pay. political and educational leaders going to extend a great compliment to We are going to change the pay tables around 1944 about the need for a na- the gentleman. I have been impressed to increase retention. We are concerned tional day honoring teachers. with the gentleman’s chairmanship about the retention not only at the One of the people Mrs. Woodridge over the years. With his focus on oper- mid-level officer and NCO, but also the wrote to was Eleanor Roosevelt who ational requirements, getting to the retention of general officer strength. persuaded the 81st Congress to pro- services what they need to fight and They are leaving for other jobs and claim a National Teacher Day in 1953. win the Nation’s wars. that is not healthy. In the late 1970s, the National Edu- I want to compliment the gentleman We are going to reform the retire- cation Association as well as many of as one of the strongest advocates to ment system. We are looking at cre- its local affiliates persuaded Congress make sure that our ammunition bins ating a Thrift Savings Plan for the to create a national day celebrating are filled. Because I can say that, yes, military. Part of this emergency sup- the contributions of teachers and such we all share the responsibility on pro- plemental, about $1.8 billion, is for the a day was established in 1980. In 1985, curement, but it is singular with the funding of the pay package, subject to the NEA and the National PTA estab- gentleman from San Diego in this body the authorization that we come up lished a full week of May as National because we have to turn to him as with. So we are going to address the Teacher Appreciation Week, and to Chairman of the Subcommittee on pay differential and we are going to make the Tuesday of that week Na- Military Procurement to tell us what take a very serious look at a lot of tional Teacher Appreciation Day. those needs and requirements are. And, other things. It is only right that we take a mo- actually, we yield to the gentleman’s I did not totally concur with the Sen- ment to honor the dedication, hard integrity that he will make those prop- ate’s package, S. 4. It became a huge work, and importance of teachers in er decisions. That is not just us; Amer- Christmas tree and everybody wanted our society. As a teacher myself, I ica yields to him. America out there to throw their arms around the soldier. know that teaching is a hard and some- whose sons and daughters may be in But the problems are much greater. It times unrecognized job. But of all the Korea right now, part of the 37,000 that is the quality of life issues. It is the important jobs in our society, nothing are right now on the line in Korea or in housing issues. It is the readiness. It is makes more of an impact on our chil- a ship or in Okinawa or maybe they are the lack of spare parts. It is a large dren than a well-trained, caring and May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2633 dedicated teacher. No job ultimately is hire more qualified teachers, to help Mr. DUNCAN, for 5 minutes, today. more important to our society. our school districts modernize and up- Mr. BRADY of Texas, for 5 minutes, on Each of us has had teachers who have date their classrooms with technology. May 5th. made marks on our lives who have That is how we thank our teachers. Mr. WELDON of Pennsylvania, for 5 pushed us to achieve more and chal- That is how we show respect for our minutes, today. lenged us to excel. While these teach- teachers. That is how we show respect Mr. SHERWOOD, for 5 minutes, today. ers may not command the celebrity of for our children. Mr. GIBBONS, for 5 minutes, today. a sports star, they continue to work f Mr. SAXTON, for 5 minutes, today. every day often under difficult cir- Mr. THUNE, for 5 minutes, today. LEAVE OF ABSENCE cumstances to guide our children to a f better future. By unanimous consent, leave of ab- We here in Congress, on both sides of sence was granted to: ADJOURNMENT the aisle, continue to debate ways to Ms. CARSON (at the request of Mr. Mr. HOLT. Mr. Speaker, I move that improve our public schools and to GEPHARDT) for today on account of per- the House do now adjourn. boost the educational achievement of sonal business. The motion was agreed to; accord- our young people. Experts have sug- Mr. LUCAS of Oklahoma (at the re- ingly (at 10 o’clock and 47 minutes gested all kinds of ways to strengthen quest of Mr. ARMEY) for today on ac- p.m.), the House adjourned until to- our education system. But as we talk count of inspecting tornado damage in morrow, Wednesday, May 5, 1999, at 10 about these programs and policies, we Oklahoma. a.m. may forget that one of the best ways to Mr. TIAHRT (at the request of Mr. f improve our education system is to ARMEY) for today on account of in- EXECUTIVE COMMUNICATIONS, show respect and support for our teach- specting tornado damage in Kansas. ETC. ers. Mr. WATTS of Oklahoma (at the re- Teachers across our Nation are doing quest of Mr. ARMEY) for today and May Under clause 8 of rule XII, executive an outstanding job. As I have traveled 5 on account of inspecting tornado communications were taken from the around my central New Jersey district, damage in Oklahoma. Speaker’s table and referred as follows: I have met hundreds of teachers who f 1822. A letter from the Director, Office of Regulatory Management and Information, are working hard every day to prepare SPECIAL ORDERS GRANTED students to succeed in this economy Environmental Protection Agency, transmit- and it is not often easy. By unanimous consent, permission to ting the Agency’s final rule—Dimethomorph; address the House, following the legis- Extension of Tolerance for Emergency Ex- b 2245 lative program and any special orders emptions [OPP–300842; FRL–6075–2] (RIN: Compared with many professionals, heretofore entered, was granted to: 2070–AB78) received April 9, 1999, pursuant to 5 U.S.C. 801(a)(1)(A); to the Committee on teachers are underpaid and over- (The following Members (at the re- Agriculture. worked. The Education Testing Service quest of Mr. FALEOMAVAEGA) to revise 1823. A letter from the Director, Office of pointed out in a recent report that de- and extend their remarks and include Regulatory Management and Information, spite the importance of the work they extraneous material:) Environmental Protection Agency, transmit- do, teachers still earn less in median Mr. LIPINSKI, for 5 minutes, today. ting the Agency’s final rule—Oxyfluorfen; weekly wages than doctors, lawyers, Mr. BAIRD, for 5 minutes, today. Extension of Tolerance for Emergency Ex- accountants, public relations profes- Mr. DAVIS of Illinois, for 5 minutes, emptions [OPP–300834; FRL–6073–4] (RIN: sionals and even many service workers. today. 2070–AB78) received April 9, 1999, pursuant to 5 U.S.C. 801(a)(1)(A); to the Committee on Studies consistently show that Mr. PALLONE, for 5 minutes, today. Agriculture. teachers earn less than other profes- Mr. BLUMENAUER, for 5 minutes, 1824. A letter from the General Counsel, sionals with similar educational re- today. Federal Emergency Management Agency, quirements, and that is just not right. Mr. SMITH of Washington, for 5 min- transmitting the Agency’s final rule— As long as this country continues to utes, today. Changes in Flood Elevation Determinations pay teachers less than it pays others, Ms. HOOLEY of Oregon, for 5 minutes, [Docket No. FEMA–7268] received April 6, we will not get all we need. In the next today. 1999, pursuant to 5 U.S.C. 801(a)(1)(A); to the Committee on Banking and Financial Serv- decade we Americans must hire two Ms. WOOLSEY, for 5 minutes, today. ices. Mr. ALLEN, for 5 minutes, today. million new teachers to fill vacancies 1825. A letter from the General Counsel, and to keep up with student school Mr. KUCINICH, for 5 minutes, today. Federal Emergency Management Agency, growth, and we need the best people. Mrs. MALONEY of New York, for 5 transmitting the Agency’s final rule—Final Teachers often perform miracles in minutes, today. Flood Elevation Determinations—received the classrooms, which too many of us Ms. JACKSON-LEE of Texas, for 5 min- April 6, 1999, pursuant to 5 U.S.C. 801(a)(1)(A); take for granted. We forget many times utes, today. to the Committee on Banking and Financial teachers are called on to undertake Mr. ABERCROMBIE, for 5 minutes, Services. other tasks in addition to teaching. today. 1826. A letter from the General Counsel, Federal Emergency Management Agency, Teachers today often have to enforce Ms. BROWN of Florida, for 5 minutes, transmitting the Agency’s final rule—Final discipline and guide troubled children today. Flood Elevation Determinations—received to the help they need. Our Nation can Mr. SANDERS, for 5 minutes, today. April 6, 1999, pursuant to 5 U.S.C. 801(a)(1)(A); improve its education system by show- (The following Members (at the re- to the Committee on Banking and Financial ing respect for teachers and by letting quest of Mr. THUNE) to revise and ex- Services. them know how much we value their tend their remarks and include extra- 1827. A letter from the General Counsel, work. All of us should take time to neous material:) Federal Emergency Management Agency, thank our teachers. Mr. MORAN of Kansas, for 5 minutes transmitting the Agency’s final rule— Later this week, when I return home each day, today and on May 5th. Changes in Flood Elevation Determinations [Docket No. FEMA–7277] received April 6, to New Jersey, I will visit a teacher at Mr. DEMINT, for 5 minutes, on May 1999, pursuant to 5 U.S.C. 801(a)(1)(A); to the West Windsor Plainsboro School on 5th. Committee on Banking and Financial Serv- Friday morning, the first morning I am Mr. HILL of Montana, for 5 minutes, ices. back, and I will teach a class in phys- on May 5th. 1828. A letter from the Assistant Secretary, ics. But we need to do more than sim- Mr. SCHAFFER, for 5 minutes, on May Office of Postsecondary Education, Depart- ply reflect on teachers’ contributions 5th. ment of Education, transmitting the Depart- and drop in occasionally. We need to Mr. BATEMAN, for 5 minutes, today. ment’s final rule—Gaining Early Awareness and Readiness for Undergraduate Programs undertake policies that will make their Mr. BURTON OF Indiana, for 5 min- (RIN: 1840–AC59) received April 23, 1999, pur- jobs easier. We need to work together utes, on May 11th. suant to 5 U.S.C. 801(a)(1)(A); to the Com- to find ways to support teachers, to Mr. GUTKNECHT, for 5 minutes, today. mittee on Education and the Workforce. help them continue to grow profes- Mr. JONES of North Carolina, for 5 1829. A letter from the Director, Office of sionally, to help our school districts minutes, on May 5th. Regulatory Management and Information, H2634 CONGRESSIONAL RECORD — HOUSE May 4, 1999 Environmental Protection Agency, transmit- Department of Transportation, transmitting REPORTS OF COMMITTEES ON ting the Agency’s final rule—Authorization the Department’s final rule—Airworthiness PUBLIC BILLS AND RESOLUTIONS to Implement Section 111 and 112 Standards; Directives; Boeing Model 747 Series Air- State of Connecticut [A–1–FRL–6325–3] re- planes [Docket No. 97–NM–326–AD; Amend- Under clause 2 of rule XIII, reports of ceived April 12, 1999, pursuant to 5 U.S.C. ment 39–11105; AD 99–08–01] (RIN: 2120–AA64) committees were delivered to the Clerk 801(a)(1)(A); to the Committee on Commerce. received April 9, 1999, pursuant to 5 U.S.C. for printing and reference to the proper 1830. A letter from the Director, Office of 801(a)(1)(A); to the Committee on Transpor- calendar, as follows: Regulatory Management and Information, tation and Infrastructure. Mr. YOUNG of Florida: Committee on Ap- Environmental Protection Agency, transmit- 1839. A letter from the Program Support ting the Agency’s final rule—Approval and propriations. Report on the Suballocation of Specialist, Aircraft Certification Service, Promulgation of Air Quality Implementa- Budget Allocations for Fiscal Year 1999 Department of Transportation, transmitting tion Plans; Pennsylvania; Approval of VOC (Rept. 106–124). Referred to the Committee of the Department’s final rule—Airworthiness RACT Determinations for Individual Sources the Whole House on the State of the Union. Directives; Bombardier Model DHC–8–100, [PA129–4083a; FRL–6323–6] received April 12, Mr. YOUNG of Florida: Committee on Ap- -200, and -300 Series Airplanes [Docket No. 1999, pursuant to 5 U.S.C. 801(a)(1)(A); to the propriations. H.R. 1664. A bill making emer- Committee on Commerce. 97–NM–04–AD; Amendment 39–11109; AD 99– gency supplemental appropriations for mili- 1831. A letter from the General Counsel, In- 08–04] (RIN: 2120–AA64) received April 9, 1999, tary operations, refugee relief, and humani- formation Agency, transmitting the Agen- pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- tarian assistance relating to the conflict in cy’s final rule—Exchange Visitor Program— mittee on Transportation and Infrastruc- Kosovo, and for military operations in received April 7, 1999, pursuant to 5 U.S.C. ture. Southwest Asia for the fiscal year ending 801(a)(1)(A); to the Committee on Inter- 1840. A letter from the Program Support September 30, 1999, and for other purposes national Relations. Specialist, Aircraft Certification Service, (Rept. 106–125). Referred to the Committee of 1832. A letter from the General Counsel, In- Department of Transportation, transmitting the Whole House on the State of the Union. formation Agency, transmitting the Agen- the Department’s final rule—Airworthiness Mr. SESSIONS: Committee on Rules. cy’s final rule—Exchange Visitor Program— Directives; Eurocopter France Model House Resolution 158. Resolution providing received April 7, 1999, pursuant to 5 U.S.C. SA.3160, SA.316B, SA.316C, and SA.319B Heli- for the consideration of the bill (H.R. 833) to 801(a)(1)(A); to the Committee on Inter- copters [Docket No. 98–SW–58–AD; Amend- amend title 11 of the United States Code, and national Relations. ment 39–11112; AD 99–08–06] (RIN: 2120–AA64) for other purposes (Rept. 106–126). Referred 1833. A letter from the Director, Federal received April 9, 1999, pursuant to 5 U.S.C. to the House Calendar. Emergency Management Agency, transmit- 801(a)(1)(A); to the Committee on Transpor- f ting notification that funding under title V tation and Infrastructure. of the Robert T. Stafford Disaster Relief and 1841. A letter from the Program Support TIME LIMITATION OF REFERRED Emergency Assistance Act, as amended, will BILL exceed $5 million for the response to the Specialist, Aircraft Certification Service, emergency declared on January 15, 1999, as a Department of Transportation, transmitting Pursuant to clause 5 of rule X the fol- result of the record/near record snow which the Department’s final rule—Airworthiness lowing action was taken by the Speak- Directives; McDonnell Douglas Model DC–9 severely impacted the State of Indiana from er: January 1, 1999, through and including Janu- and C–9 (Military) Series Airplanes [Docket ary 15, 1999, pursuant to 42 U.S.C. 5193; to the No. 98–NM–110–AD; Amendment 39–11110; AD (The following action occurred on April 30, 1999) Committee on Transportation and Infra- 99–08–05] (RIN: 2120–AA64) received April 9, H.R. 434. Referral to the Committees on structure. 1999, pursuant to 5 U.S.C. 801(a)(1)(A); to the Ways and Means and Banking and Financial 1834. A letter from the Director, Federal Committee on Transportation and Infra- Services extended for a period ending not Emergency Management Agency, transmit- structure. later than May 21, 1999. ting notification that funding under title V 1842. A letter from the Program Support f of the Robert T. Stafford Disaster Relief and Specialist, Aircraft Certification Service, Emergency Assistance Act, as amended, will Department of Transportation, transmitting PUBLIC BILLS AND RESOLUTIONS exceed $5 million for the response to the the Department’s final rule—Airworthiness emergency declared on January 8, 1999, as a Directives; McDonnell Douglas Model DC–10 Under clause 2 of rule XII, public result of the record/near record snow which and MD–11 Series Airplanes, and KC–10 (Mili- bills and resolutions were introduced severely impacted the State of Illinois from tary) Series Airplanes [Docket No. 98–NM–55– and severally referred, as follows: January 1, 1999, through and including Janu- AD; Amendment 39–11072; AD 99–06–08] (RIN: By Mr. HYDE (for himself, Mr. CON- ary 15, 1999, pursuant to 42 U.S.C. 5193; to the 2120–AA64) received April 9, 1999, pursuant to YERS, Mr. BARR of Georgia, Mr. Committee on Transportation and Infra- 5 U.S.C. 801(a)(1)(A); to the Committee on FRANK of Massachusetts, Mr. BACHUS, structure. Transportation and Infrastructure. Ms. LOFGREN, Mr. SMITH of Texas, 1835. A letter from the Director, Federal Mr. BROWN of Ohio, Mr. CLAY, Mr. Emergency Management Agency, transmit- 1843. A letter from the Program Analyst, CRANE, Mr. CUMMINGS, Mr. ting notification that funding under title V Office of the Chief Counsel, Department of CUNNINGHAM, Mr. EWING, Mr. FARR of of the Robert T. Stafford Disaster Relief and Transportation, transmitting the Depart- California, Mr. FOLEY, Mr. GILLMOR, Emergency Assistance Act, as amended, will ment’s final rule—Airworthiness Directives; Mr. HAYWORTH, Mr. HINCHEY, Mr. exceed $5 million for the response to the Allison Engine Company, Inc. AE 3007A and HOLDEN, Mrs. JONES of Ohio, Mr. emergency declared on January 27, 1999, as a AE 3007C Series Turbofan Engines [Docket MCDERMOTT, Mr. MANZULLO, Mr. result of the record/near record snow which No. 99–NE–01–AD; Amendment 39–11108; AD MARTINEZ, Ms. NORTON, Ms. RIVERS, severely impacted the State of Michigan 99–02–51] (RIN: 2120–AA64) received April 9, Mr. SCOTT, Mr. SHOWS, Mr. TAYLOR of from January 2, 1999, through and including 1999, pursuant to 5 U.S.C. 801(a)(1)(A); to the January 15, 1999, pursuant to 42 U.S.C. 5193; Committee on Transportation and Infra- North Carolina, Mr. WELDON of Penn- to the Committee on Transportation and In- structure. sylvania, and Mr. YOUNG of Alaska): H.R. 1658. A bill to provide a more just and frastructure. 1844. A letter from the Secretary of Health uniform procedure for Federal civil 1836. A letter from the Program Support and Human Services, transmitting Initial es- forteitures, and for other purposes; to the Specialist, Aircraft Certification Service, timate of the applicable percentage increase Committee on the Judiciary. Department of Transportation, transmitting in hospital inpatient payment rates for fiscal By Mr. SERRANO (for himself and Mr. the Department’s final rule—Airworthiness year 2000, pursuant to Public Law 101–508, HYDE): Directives; Bell Helicopter Textron Canada section 4002(g)(1)(B) (104 Stat. 1388–36); to the H.R. 1659. A bill to reinforce police training Model 407 Helicopters [Docket No. 99–SW–16– Committee on Ways and Means. AD; Amendment 39–11111; AD 99–06–15] (RIN: and reestablish police and community rela- 1845. A letter from the Chair, Christopher 2120–AA64) received April 9, 1999, pursuant to tions, and to create a commission to study Columbus Fellowship Foundation, transmit- 5 U.S.C. 801(a)(1)(A); to the Committee on and report on the policies and practices that ting the FY 1998 Annual Report of the Chris- Transportation and Infrastructure. govern the training, recruitment, and over- 1837. A letter from the Program Support topher Columbus Fellowship Foundation, sight of police officers, and for other pur- Specialist, Aircraft Certification Service, pursuant to Public Law 102–281, section 429(b) poses; to the Committee on the Judiciary. Department of Transportation, transmitting (106 Stat. 145); jointly to the Committees on By Mr. RANGEL (for himself, Mr. GEP- the Department’s final rule—Airworthiness Banking and Financial Services and Science. HARDT, Mr. BONIOR, Mr. STARK, Mr. Directives; Boeing Model 747 Series Air- 1846. A letter from the Director, Office of MATSUI, Mr. COYNE, Mr. LEVIN, Mr. planes [Docket No. 98–NM–163–AD; Amend- Legislative Affairs, Federal Deposit Insur- CARDIN, Mr. MCDERMOTT, Mr. LEWIS ment 39–11106; AD 99–08–02] (RIN: 2120–AA64) ance Corporation, transmitting a listing of of Georgia, Mr. NEAL of Massachu- received April 9, 1999, pursuant to 5 U.S.C. two Federal Deposit Insurance Corporation setts, Mr. MCNULTY, Mr. JEFFERSON, 801(a)(1)(A); to the Committee on Transpor- properties covered by the Act as of Sep- Mr. BECERRA, Mrs. THURMAN, Mr. tation and Infrastructure. tember 30, 1998; jointly to the Committees on ABERCROMBIE, Mr. ACKERMAN, Mr. 1838. A letter from the Program Support Banking and Financial Services and Re- ALLEN, Mr. BALDACCI, Mr. BARRETT of Specialist, Aircraft Certification Service, sources. Wisconsin, Ms. BERKLEY, Mr. May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2635

BLAGOJEVICH, Mr. BLUMENAUER, Mr. TERS, Mr. FARR of California, Mr. of medical services under individualized edu- BORSKI, Ms. BROWN of Florida, Mr. THOMPSON of California, Mr. DOOLEY cation programs under the Individuals with BROWN of California, Mr. CAPUANO, of California, Mr. STARK, Ms. WOOL- Disabilities Education Act after they exceed Ms. CARSON, Mrs. CHRISTENSEN, Mrs. SEY, Ms. PELOSI, Ms. MILLENDER- $3,500 in a school year; to the Committee on CLAYTON, Mr. CONYERS, Mr. CROWLEY, MCDONALD, Mr. OSE, Mr. CHAMBLISS, Commerce. Mr. DAVIS of Virginia, Ms. DEGETTE, Mr. DOOLITTLE, Mr. BUYER, Mr. By Mr. MALONEY of Connecticut: Mr. DELAHUNT, Ms. DELAURO, Mr. HERGER, Mr. DOYLE, Mr. ACKERMAN, H.R. 1673. A bill to provide bonus funds to DEUTSCH, Mr. DINGELL, Mr. DIXON, Mr. CAMPBELL, Mr. SNYDER, Ms. local educational agencies that adopt a pol- Mr. ETHERIDGE, Mr. FARR of Cali- MCKINNEY, Mr. GIBBONS, Mr. PETER- icy to end social promotion; to the Com- fornia, Mr. FATTAH, Mr. FILNER, Mr. SON of Minnesota, Mr. WATTS of Okla- mittee on Education and the Workforce. FRANK of Massachusetts, Mr. FROST, homa, Mr. QUINN, Mr. BAKER, Mr. By Mr. GARY MILLER of California: Mr. GEJDENSON, Mr. GORDON, Mr. HIN- HANSEN, Mrs. NAPOLITANO, Mr. H.R. 1674. A bill to amend the Safe Drink- CHEY, Mr. HINOJOSA, Ms. NORTON, Mr. REYES, and Mr. UNDERWOOD): ing Water Act with respect to civil actions INSLEE, Mr. KENNEDY of Rhode Is- H.R. 1663. A bill to designate as a national against public waters systems that are in land, Ms. KILPATRICK, Mr. KUCINICH, memorial the memorial being built at the compliance with national drinking water Mr. LAFALCE, Mr. LAMPSON, Mr. Riverside National Cemetery in Riverside, regulations promulgated by the Adminis- LATOURETTE, Mrs. LOWEY, Mrs. California to honor recipients of the Medal trator of the Environmental Protection MALONEY of New York, Mr. MALONEY of Honor; to the Committee on Veterans’ Af- Agency; to the Committee on Commerce. of Connecticut, Mr. MARTINEZ, Mr. fairs. By Mrs. MINK of Hawaii: MASCARA, Mr. MCGOVERN, Ms. By Mr. YOUNG of Florida: H.R. 1675. A bill to provide for the full MILLENDER-MCDONALD, Mr. MOAKLEY, H.R. 1664. A bill making emergency supple- funding of the Pell Grant Program; to the Mr. OLVER, Mr. PAYNE, Ms. PELOSI, mental appropriations for military oper- Committee on Education and the Workforce. Mr. POMEROY, Mr. QUINN, Ms. RIVERS, ations, refugee relief, and humanitarian as- By Mr. PALLONE: Mr. ROTHMAN, Mr. RUSH, Ms. sistance relating to the conflict in Kosovo, H.R. 1676. A bill to amend part Q of title I SANCHEZ, Mr. SANDERS, Mr. SANDLIN, and for military operations in Southwest of the Omnibus Crime Control and Safe Mr. SAWYER, Ms. SCHAKOWSKY, Mr. Asia for the fiscal year ending September 30, Streets Act of 1965 to prevent motorist stops SHOWS, Ms. SLAUGHTER, Mr. STRICK- 1999, and for other purposes. motivated by race or other bias; to the Com- LAND, Mr. TIERNEY, Mrs. JONES of By Mr. BATEMAN: mittee on the Judiciary. Ohio, Mr. WAXMAN, Mr. WEINER, Mr. H.R. 1665. A bill to allow the National Park By Mr. SHERMAN (for himself, Ms. WEXLER, Mr. WEYGAND, Ms. WOOLSEY, Service to acquire certain land for addition PELOSI, Mr. MATSUI, and Mr. BROWN and Mr. WYNN): to the Wilderness Battlefield in Virginia, as of California): H.R. 1660. A bill to amend the Internal Rev- previously authorized by law, by purchase or H.R. 1677. A bill to restrict the sale of ciga- enue Code of 1986 to expand the incentives exchange as well as by donation; to the Com- rettes in packages of less than 15 cigarettes; for the construction and renovation of public mittee on Resources. to the Committee on Commerce. schools and to provide tax incentives for cor- By Mr. BOYD (for himself, Mr. FOLEY, By Mr. SWEENEY: porations to participate in cooperative Mr. DEUTSCH, Mr. WEXLER, Mr. DAVIS H.R. 1678. A bill to amend title 49, United agreements with public schools in distressed of Florida, Mr. DIAZ-BALART, Mrs. States Code, to require the Secretary of areas; to the Committee on Ways and Means, FOWLER, Mr. SCARBOROUGH, Mrs. Transportation to initiate investigations of and in addition to the Committee on Edu- MEEK of Florida, Mr. CANADY of Flor- unfair methods of competition by major air cation and the Workforce, for a period to be ida, Mrs. THURMAN, Ms. ROS- carriers against new entrant air carriers; to subsequently determined by the Speaker, in LEHTINEN, Mr. YOUNG of Florida, Mr. the Committee on Transportation and Infra- each case for consideration of such provi- MCCOLLUM, Mr. GOSS, Mr. HASTINGS structure. sions as fall within the jurisdiction of the of Florida, Mr. BILIRAKIS, Mr. SHAW, H.R. 1679. A bill to amend title 49, United committee concerned. Mr. STEARNS, Mr. MICA, Mr. WELDON States Code, to provide assistance and slots By Mrs. MORELLA (for herself, Mr. of Florida, Ms. BROWN of Florida, and with respect to air carrier service between BALDACCI, Mr. SAWYER, and Mr. HILL- Mr. MILLER of Florida): high density airports and certain small and IARD): H.R. 1666. A bill to designate the facility of nonhub airports that have unreasonably high H.R. 1661. A bill to amend title XXVII of the United States Postal Service at 200 East airfares, to improve jet aircraft service to the Public Health Service Act and part 7 of Pinckney Street in Madison, Florida, as the markets that have unreasonably high air- subtitle B of title I of the Employee Retire- ‘‘Captain Colin P. Kelly, Jr. Post Office’’; to fares, and for other purposes; to the Com- ment Income Security Act of 1974 to estab- the Committee on Government Reform. mittee on Transportation and Infrastruc- lish standards for the health quality im- By Mr. COOK (for himself and Mr. PE- ture. provement of children in managed care plans TERSON of Minnesota): By Mr. THOMAS: and other health plans; to the Committee on H.R. 1667. A bill to amend title 23, United H.R. 1680. A bill to provide for the convey- Commerce, and in addition to the Committee States Code, relating to vehicle weight limi- ance of Forest Service property in Kern on Education and the Workforce, for a period tations; to the Committee on Transportation County, California, in exchange for county to be subsequently determined by the Speak- and Infrastructure. lands suitable for inclusion in Sequoia Na- er, in each case for consideration of such pro- By Mr. GANSKE: tional Forest; to the Committee on Re- visions as fall within the jurisdiction of the H.R. 1668. A bill to authorize the National sources. committee concerned. Park Service to conduct a feasibility study By Ms. WATERS: By Mrs. MCCARTHY of New York: for the preservation of the Loess Hills in H.R. 1681. A bill to concentrate Federal re- H.R. 1662. A bill to amend Elementary and western Iowa; to the Committee on Re- sources aimed at the prosecution of drug of- Secondary Education Act of 1965 to provide sources. fenses on those offenses that are major; to for the inclusion of mentoring programs for By Mr. GOSS: the Committee on the Judiciary, and in addi- novice teachers in the professional develop- H.R. 1669. A bill to provide that an annual tion to the Committee on Commerce, for a ment activities of local educational agen- pay adjustment for Members of Congress period to be subsequently determined by the cies, and for other purposes; to the Com- may not exceed the cost-of-living adjust- Speaker, in each case for consideration of mittee on Education and the Workforce. ment in benefits under title II of the Social such provisions as fall within the jurisdic- By Mr. CALVERT (for himself, Mr. Security Act for that year; to the Committee tion of the committee concerned. STUMP, Mrs. BONO, Mr. BROWN of on Government Reform, and in addition to By Mrs. WILSON (for herself, Mr. California, Mr. LEWIS of California, the Committee on House Administration, for SKEEN, Mr. FORD, and Mr. UDALL of Mr. PACKARD, Mr. DREIER, Mr. BOEH- a period to be subsequently determined by New Mexico): LERT, Mr. SAM JOHNSON of Texas, Mr. the Speaker, in each case for consideration H.R. 1682. A bill to amend the Internal Rev- ROHRABACHER, Mr. EVANS, Mr. of such provisions as fall within the jurisdic- enue Code of 1986 to establish a permanent CUNNINGHAM, Mr. COX, Mr. HUNTER, tion of the committee concerned. tax incentive for research and development, Mr. BILBRAY, Mr. MCKEON, Mr. By Mr. HASTINGS of Florida: and for other purposes; to the Committee on ROYCE, Mr. THOMAS, Mr. GARY MIL- H.R. 1670. A bill to establish a commission Ways and Means. LER of California, Mr. DIXON, Mr. to study the culture and glorification of vio- By Mr. BRYANT (for himself and Mr. MATSUI, Ms. LEE, Mr. RADANOVICH, lence in America; to the Committee on the WICKER): Ms. ROYBAL-ALLARD, Mr. Judiciary. H.J. Res. 50. A joint resolution granting KUYKENDALL, Mr. GEORGE MILLER of By Mr. HOYER: the consent of Congress to the Chickasaw California, Mr. HORN, Mr. POMBO, Mr. H.R. 1671. A bill to grant a Federal charter Trail Economic Development Compact; to LANTOS, Mr. ROGAN, Mr. GALLEGLY, to Korean War Veterans Association, Incor- the Committee on the Judiciary. Mr. FILNER, Mrs. TAUSCHER, Mr. porated; to the Committee on the Judiciary. By Mrs. CHENOWETH (for herself, Mr. CONDIT, Ms. LOFGREN, Mr. WAXMAN, By Ms. LOFGREN: ARMEY, Mr. DELAY, Mr. ADERHOLT, Ms. SANCHEZ, Mr. BERMAN, Mrs. H.R. 1672. A bill to amend title XIX of the Mr. BURTON of Indiana, Mr. COBURN, CAPPS, Mr. BECERRA, Mr. MARTINEZ, Social Security Act to require States Med- Mr. CUNNINGHAM, Mr. DICKEY, Mr. Mr. SHERMAN, Ms. ESHOO, Ms. WA- icaid plans to provide for payment for costs DOOLITTLE, Mr. FOSSELLA, Mr. H2636 CONGRESSIONAL RECORD — HOUSE May 4, 1999

GRAHAM, Mr. HAYES, Mr. HAYWORTH, KAPTUR, Mr. MORAN of Virginia, and Mr. H.R. 997: Mr. BONIOR, Mr. PITTS, Mr. OBER- Mr. HILL of Montana, Mr. HILLEARY, NEAL of Massachusetts. STAR, Mr. GEKAS, Mr. HOYER, Mr. BRADY of Mr. HOSTETTLER, Mr. HUNTER, Mr. H.R. 303: Mr. BAKER, Mr. BERRY, Mr. DAVIS Pennsylvania, Mr. COOK, Ms. KAPTUR, and ISTOOK, Mr. SAM JOHNSON of Texas, of Florida, Ms. HOOLEY of Oregon, and Mr. Mr. MORAN of Virginia. Mr. LEWIS of Kentucky, Mr. GOODE. H.R. 1003: Mr. GONZALEZ. MCINTOSH, Mr. METCALF, Mrs. H.R. 315: Mr. RANGEL, Mr. PAYNE, Mr. H.R. 1032: Mr. KINGSTON, Mr. PICKETT, Mr. MYRICK, Mr. NETHERCUTT, Mr. PICK- FALEOMAVAEGA, and Mr. BORSKI. CUNNINGHAM, Mr. WAMP, and Peterson of ERING, Mr. PITTS, Mr. RYUN of Kan- H.R. 325: Mr. ABERCROMBIE, Mr. MASCARA, Pennsylvania. sas, Mr. SCHAFFER, Mr. STEARNS, Mr. Ms. RIVERS, and Ms. SANCHEZ. H.R. 1044: Mr. SHOWS, Mrs. MINK of Hawaii, TANCREDO, Mr. TAYLOR of North H.R. 348: Mr. ROHRABACHER and Mr. and Mr. LATHAM. Carolina, and Mr. WALDEN of Oregon): CUNNINGHAM. H.R. 1049: Mrs. LOWEY. H. Con. Res. 94. Concurrent resolution rec- H.R. 357: Mr. INSLEE. H.R. 1062: Mr. BERMAN, Mr. SABO, Mrs. ognizing the public need for reconciliation H.R. 382: Ms. MCKINNEY, Mr. BLAGOJEVICH, JONES of Ohio, Mr. DAVIS of Illinois, Mr. and healing, urging the United States to Mr. SANDLIN, and Ms. EDDIE BERNICE JOHN- MEEHAN, Mr. HOEFFEL, Mr. WAXMAN, Mr. unite in seeking God, and recommending SON of Texas. NADLER, and Ms. ROYBAL-ALLARD. that the Nation’s leaders call for days of H.R. 383: Ms. CARSON, Mrs. MEEK of Flor- H.R. 1082: Mr. BENTSEN and Mr. QUINN. prayer; to the Committee on Government ida, Mr. RODRIGUEZ, Mr. PASCRELL, and Mrs. H.R. 1083: Mr. NETHERCUTT, Mr. NUSSLE, Reform. CHRISTENSEN. and Mr. WALDEN of Oregon. By Mr. SWEENEY: H.R. 390: Mr. SMITH of Washington, Mr. H.R. 1084: Mr. GARY MILLER of California H. Con. Res. 95. Concurrent resolution ex- WELDON of Florida, Ms. WOOLSEY, Mr. and Mr. GOODLING. H.R. 1102: Mr. HAYWORTH, Mr. METCALF, pressing the sense of Congress that State STRICKLAND, Ms. VELAZQUEZ, and Mr. KOLBE. Ms. DUNN, Mr. ENGLISH, and Mr. HOBSON. earnings limitations on retired law enforce- H.R. 405: Mr. NADLER and Mr. ACKERMAN. H.R. 1108: Ms. LOFGREN, Mr. KOLBE, and ment officers be lifted to enhance school H.R. 415: Mr. UDALL of New Mexico. H.R. 425: Mr. MINGE, Mr. UDALL of New Mr. BERMAN. safety; to the Committee on Education and Mexico, and Mr. PETERSON of Minnesota. H.R. 1111: Mr. DEAL of Georgia, Mr. the Workforce, and in addition to the Com- H.R. 430: Mr. BAIRD, Mr. SANDLIN, Mr. MUR- GILCHREST, Ms. MILLENDER-MCDONALD, Mr. mittee on the Judiciary, for a period to be THA, and Mr. BORSKI. THOMPSON of Mississippi, Mr. BAIRD, Mr. subsequently determined by the Speaker, in H.R. 455: Mr. UDALL of New Mexico. BERMAN, Mrs. CHRISTENSEN, and Ms. KIL- each case for consideration of such provi- H.R. 457: Mr. BAIRD and Mr. THOMPSON of PATRICK. sions as fall within the jurisdiction of the Mississippi. H.R. 1130: Mr. LEWIS of Georgia, Mr. MEEKS committee concerned. H.R. 486: Mrs. CUBIN, Mr. CRAMER, Mr. LU- of New York, Ms. KILPATRICK, and Ms. By Ms. GRANGER (for herself, Mr. THER, Mr. WEXLER, and Mr. PETERSON of HOOLEY of Oregon. PITTS, Mr. WATTS of Oklahoma, Mr. Pennsylvania. H.R. 1130: Mr. CAPUANO, Ms. HOOLEY of Or- DEMINT, Mr. TANCREDO, Mr. FLETCH- H.R. 488: Mr. BONIOR and Mr. GEORGE MIL- egon, Mr. SAWYER, and Mr. UDALL of New ER, Mr. METCALF, Mr. HAYWORTH, Mr. LER of California. Mexico. RAMSTAD, Mr. BARRETT of Nebraska, H.R. 492: Mr. BILIRAKIS. H.R. 1168: Mr. COBLE, Mr. ACKERMAN, Ms. Mr. SESSIONS, Mr. NEAL of Massachu- H.R. 516: Mr. GOODLATTE. CARSON, Mrs. LOWEY, and Mr. DUNCAN. setts, Ms. HOOLEY of Oregon, Mr. H.R. 518: Mr. HALL of Texas. H.R. 1173: Mr. FATTAH. ETHERIDGE, Mr. GALLEGLY, Mr. H.R. 527: Mr. PALLONE. H.R. 1188: Ms. WOOLSEY, Mr. FORBES, Mr. MOORE, Mrs. NORTHUP, Mr. FORBES, H.R. 531: Mr. GILCHREST, Mr. PICKETT, Mr. THOMPSON of Mississippi, and Mr. WYNN. Mr. SMITH of Washington, Mrs. SWEENEY, Mr. SOUDER, Mr. CALLAHAN, Mr. H.R. 1219: Mr. HILL of Montana. FOWLER, Mr. BACHUS, Mr. TRAFICANT, GARY G. MILLER of California, Mr. MOORE, H.R. 1236: Ms. EDDIE BERNICE JOHNSON of Mr. CHAMBLISS, Mr. MCINTOSH, Mr. and Mr. WHITFIELD. Texas and Mr. WATT of North Carolina. GRAHAM, Mr. CUNNINGHAM, Mr. KIL- H.R. 537: Mr. GARY G. MILLER of California. H.R. 1256: Mr. HALL of Texas and Mr. DEE, Mr. MCKEON, Mr. PHELPS, Mr. H.R. 541: Mr. WATT of North Carolina. METCALF. SCHAFFER, Mr. KLINK, Mr. H.R. 558: Mr. KOLBE. H.R. 1272: Mrs. EMERSON, Mr. ISTOOK, and LATOURETTE, Mr. TOOMEY, Mr. SMITH H.R. 595: Ms. KAPTUR and Mrs. MINK of Ha- Mr. PAUL. of Michigan, Mr. CALVERT, Mr. waii. H.R. 1283: Mr. STUMP, Mr. BALLERNGER, Mr. FOLEY, Mr. REYNOLDS, Mr. HORN, Mr. H.R. 597: Mr. BURR of North Carolina, Mr. DOOLITTLE, Mr. BLUNT, and Mr. DOOLEY of FROST, Mr. UDALL of New Mexico, HILLIARD, Mr. SANDLIN, Mr. CAPUANO, Mr. California. Mr. BLUNT, and Mrs. CHRISTENSEN): BERMAN, Mr. SNYDER, and Mr. HORN. H.R. 1289: Mr. MATSUI, Mr. SERRANO, Mr. H. Res. 157. A resolution Expressing the H.R. 673: Mr. GOSS. GEORGE MILLER of California, Mr. CARDIN, sense of the House of Representatives in sup- H.R. 700: Mr. BILBRAY and Mr. TERRY. Mr. DAVIS of Illinois, Mr. THOMPSON of Mis- port of America’s teachers; to the Com- H.R. 725: Mr. INSLEE and Mr. GEORGE MIL- sissippi, and Ms. ROYBAL-ALLARD. mittee on Education and the Workforce. LER of California. H.R. 1298: Mr. GEORGE MILLER of Cali- H.R. 731: Ms. WOOLSEY. fornia. f H.R. 750: Mr. WYNN. H.R. 1299: Mr. LATOURETTE and Mr. SHOWS. PRIVATE BILLS AND H.R. 775: Mr. LEWIS of Kentucky and Mr. H.R. 1300: Mr. BLUMENAUER, Mr. FORD, Mr. ENGLISH, and Mr. PASTOR. RESOLUTIONS EWING. H.R. 776: Mr. HILLIARD, Mr. HOLDEN, Mr. H.R. 1301: Mr. LUCAS of Oklahoma, Mr. Under clause 3 of rule XII, WISE, Mr. RAHALL, and Ms. MILLENDER- EWING, Mr. TIAHRT, Mr. ROEMER, Mr. ISTOOK, Mr. FRANK of Massachusetts intro- MCDONALD. Mr. DOOLEY of California, Mr. PICKERING, Mr. duced a bill (H.R. 1683) for the relief H.R. 783: Mr. CANADY of Florida, Mr. GIL- SANDLIN, Mr. HILL of Montana, Mr. HUTCH- of Paul Green; which was referred to MAN, Mr. DUNCAN, Mr. STUMP, and Mr. INSON, Mr. THOMAS, Mr. BARRETT of Ne- the Committee on the Judiciary. ETHERIDGE. braska. H.R. 784: Mr. BOUCHER, Mr. MCGOVERN, Mr. H.R. 1317: Mr. FOLEY, Mr. HAYWORTH, and f ETHERIDGE, Mr. SHAW, and Mr. CAPUANO. Mr. SHOWS. H.R. 827: Mr. FROST, Mr. HUTCHINSON, Mr. H.R. 1322: Mr. GOODLING and Mr. GARY MIL- ADDITIONAL SPONSORS BERRY, and Ms. RIVERS. LER of California. Under clause 7 of rule XII, sponsors H.R. 850: Mr. UDALL of Colorado and Mr. H.R. 1326: Mr. MCCRERY, Mr. FROST, Mr. were added to public bills and resolu- HOEFFEL. FORBES, Mr. GRAHAM, and Mr. GARY MILLER tions as follows: H.R. 875: Mr. MATSUI, Mr. DAVIS of Illinois, of California. and Mr. MEEKS of New York. H.R. 1344: Mr. SHOWS. H.R. 8: Mr. MICA. H.R. 894: Mr. PETERSON of Pennsylvania. H.R. 1349: Mr. GOODE, Mr. CUNNINGHAM, Mr. H.R. 36: Mr. HOLT, Mr. DIXON, Ms. H.R. 902: Mrs. LOWEY, Mr. FRANK of Massa- NEY, Mr. FORBES, and Mr. PETERSON of Penn- MILLENDER-MCDONALD, Mr. THOMPSON of chusetts, Mr. STARK, Mr. HOEFFEL, and Mr. sylvania. Mississippi, Mr. PALLONE, and Mrs. CLAYTON. PORTER. H.R. 1350: Mr. SABO, Mr. BAIRD, Mr. ENGEL, H.R. 44: Mr. BISHOP and Mr. BAKER. H.R. 906: Mr. FRANK of Massachusetts. Mr. DOOLEY of California, Mr. NADLER, Mr. H.R. 49: Ms. KILPATRICK. H.R. 914: Mr. INSLEE. PAYNE, Mr. WYNN, Mr. CAPUANO, Ms. BALD- H.R. 65: Mr. BAKER and Mr. BERRY. H.R. 961: Mr. WU and Mr. CAPUANO. WIN, Mrs. JONES of Ohio, Mr. DAVIS of Illi- H.R. 111: Mr. CAMPBELL, Mr. PHELPS, Mr. H.R. 976: Ms. WATERS, Mr. GANSKE, Mr. nois, and Mr. BROWN of Ohio. BARTLETT of Maryland, and Mr. WEINER. BALDACCI, and Mrs. MALONEY of New York. H.R. 1354: Mr. POMEROY and Mr. THUNE. H.R. 116: Mr. THOMPSON of Mississippi and H.R. 987: Mr. SESSIONS, Mr. KOLBE, Mr. H.R. 1355: Mr. LARSON and Mr. SAWYER. Mr. MURTHA. WELDON of Florida, Mr. TIAHRT, Mr. CHABOT, H.R. 1357: Mr. SENSENBRENNER. H.R. 142: Mr. WELDON of Florida. Mr. MICA, Mr. LEWIS of Kentucky, Mr. H.R. 1361: Mr. CUMMINGS and Mr. OLVER. H.R. 165: Mr. EHLERS. SOUDER, Mr. FOLEY, and Mr. RYUN of Kansas. H.R. 1370: Mr. BARR of Georgia and Mr. H.R. 215: Mr. ANDREWS. H.R. 996: Mr. ENGEL, Mr. HINOJOSA, Mrs. KUCINICH. H.R. 274: Mr. COOK, Mr. PITTS, Mrs. MINK of Hawaii, Mr. THOMPSON of Mis- H.R. 1371: Ms. EDDIE BERNICE JOHNSON of MORELLA, Mr. HOYER, Ms. SCHAKOWSKY, Ms. sissippi, and Mr. WYNN. Texas, Mr. RAHALL, and Mr. BERMAN. May 4, 1999 CONGRESSIONAL RECORD — HOUSE H2637

H.R. 1405: Mr. BERMAN, Mr. COYNE, Mr. H.R. 1650: Mr. GUTIERREZ, Mr. HINCHEY, Mr. H. Res. 146: Ms. RIVERS, Mr. SAXTON, Ms. BOEHLERT, Mr. FROST, Ms. PRYCE of Ohio, MATSUI, Mr. BROWN of Ohio, Mr. BOEHLERT, ESHOO, Mr. DEFAZIO, Mr. PRICE of North and Mrs. THURMAN. Mr. WEXLER, Mr. PETERSON of Minnesota, Carolina, and Mr. ALLEN. H.R. 1456: Mr. UDALL of New Mexico, Mr. and Mr. GILMAN. H. Res. 156: Mr. JACKSON of Illinois, Mr. DEAL of Georgia, Mr. POMEROY, Mr. LEWIS of H.R. 1657: Mr. WEYGAND, Mr. INSLEE, and RANGEL, Mr. PAYNE, Mrs. JONES of Ohio, Mr. Kentucky, Mr. SHOWS, Ms. JACKSON-LEE of Mr. CONYERS. THOMPSON of Mississippi, Ms. LEE, Mr. CLAY, Texas, and Mr. HILLIARD. H.J. Res. 1: Mr. ARMEY. Mr. FATTAH, Mr. FORD, Mrs. CHRISTENSEN, H.R. 1476: Mr. FARR of California and Ms. H.J. Res. 21: Mr. HALL of Texas. Ms. KILPATRICK, Ms. NORTON, Mr. BISHOP, HOOLEY of Oregon. H. Con. Res. 8: Mr. TANNER. Mr. DIXON, Mr. CONYERS, Ms. BROWN of Flor- H.R. 1485: Mr. WAXMAN and Mr. OLVER. H. Con. Res. 30: Mr. GILLMOR, Mr. SENSEN- ida, Ms. CARSON, Mr. HASTINGS of Florida, H.R. 1525: Mr. RAHALL and Mr. CROWLEY. BRENNER, and Mr. HUTCHINSON. Mr. JEFFERSON, Mr. MEEKS of New York, Mr. H.R. 1536: Ms. HOOLEY of Oregon. H. Con. Res. 31: Mr. BONIOR. BLAGOJEVICH, Mr. RUSH, Mrs. CLAYTON, Mr. H.R. 1538: Mr. WATTS of Oklahoma, Mr. H. Con. Res. 65: Mr. BERMAN, Mr. GON- CUMMINGS, Ms. MILLENDER-MCDONALD, Ms. DEMINT, Mr. PICKERING, and Mrs. MYRICK. ZALEZ, Mr. SERRANO, Mr. FROST, Mr. SMITH WATERS, Mr. TOWNS, Mr. WYNN, Mrs. H.R. 1545: Mr. MATSUI, Mr. BERMAN, and of Texas, Ms. LEE, Mr. PASTOR, Mr. CONYERS, NAPOLITANO, Mr. LAMPSON, Mr. HILLIARD, Ms. KILPATRICK. Ms. SANCHEZ, Mr. REYES, and Mr. GREEN of Mr. OWENS, Mr. DAVIS of Illinois, Mr. H.R. 1592: Mr. MCINNIS, Mr. SCHAFFER, Mr. Texas. RODRIGUEZ, Mr. FALEOMAVAEGA, and Mr. TANNER, Mr. HERGER, Ms. DANNER, Mrs. H. Con. Res. 74: Mr. ANDREWS, Mr. CON- SCOTT. EMERSON, and Mr. REYNOLDS. YERS, and Mrs. CAPPS. H.R. 1606: Mr. FRANK of Massachusetts and H. Con. Res. 80: Mr. MCGOVERN, Mr. EVANS, f Mrs. MINK of Hawaii. Mr. CUNNINGHAM, Mr. CROWLEY, Mrs. KELLY, H.R. 1622: Ms. PELOSI, Mr. BROWN of Cali- and Mr. ENGEL. DELETIONS OF SPONSORS FROM fornia, Mr. RAHALL, Mr. SMITH of New Jer- H. Con. Res. 84: Mr. FORBES and Mr. GARY PUBLIC BILLS AND RESOLUTIONS sey, Mr. STARK, Mr. GEORGE MILLER of Cali- MILLER of California. fornia, Mr. FRANK of Massachusetts, Mr. H. Con. Res. 88: Mr. LATOURETTE, Mr. Under clause 7 of rule XII, sponsors NEAL of Massachusetts, Mr. DEUTSCH, and FORBES, and Mr. BACHUS. were deleted from public bills and reso- Mr. HINCHEY. H. Res. 41: Mr. ACKERMAN. lutions as follows: H.R. 1648: Mr. NEAL of Massachusetts, Ms. H. Res. 89: Mr. WATT of North Carolina and H.R. 732: Ms. BROWN of Florida. VELAZQUEZ, and Mr. FALEOMAVAEGA. Mr. GARY MILLER of California. H.R. 1598: Mrs. EMERSON. E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 106 CONGRESS, FIRST SESSION

Vol. 145 WASHINGTON, TUESDAY, MAY 4, 1999 No. 63 Senate The Senate met at 9:30 a.m. and was the majority leader will be recognized against the Federal Republic of Yugoslavia called to order by the President pro to make a motion to table S.J. Res. 20. (Serbia and Montenegro); and Whereas the Federal Republic of Yugo- tempore [Mr. THURMOND]. Before I speak, however, and make that slavia (Serbia and Montenegro) has refused motion, I believe Senator DASCHLE will to comply with NATO demands that it with- PRAYER use leader time to make some remarks, draw its military, paramilitary and security The Chaplain, Dr. Lloyd John too. So Senator MCCAIN will speak, forces from the province of Kosovo, allow the Ogilvie, offered the following prayer: Senator DASCHLE, and I will speak and return of ethnic Albanian refugees to their Almighty God, You have promised, make a motion to table S.J. Res. 20. homes, and permit the establishment of a ‘‘In quietness and trust shall be your Therefore, the first rollcall vote of the NATO-led peacekeeping force in Kosovo: strength.’’—Isaiah 30:15. For a brief day will occur at approximately 9:45. Now, therefore, be it If S.J. Res. 20 is tabled, the Senate Resolved by the Senate and House of Rep- moment we retreat into our inner resentatives of the United States of America in world, that wonderful place called will immediately begin debate on S. Congress assembled, That the President is au- prayer, where we find Your strength. 900, the financial services moderniza- thorized to use all necessary force and other Here we escape from the noise of de- tion bill, under the provisions agreed means, in concert with United States allies, manding voices and pressured con- to last night by unanimous consent. It to accomplish United States and North At- versations. With You there are no is hoped that significant progress will lantic Treaty Organization objectives in the speeches to give, positions to defend, or be made on the banking bill, and there- Federal Republic of Yugoslavia (Serbia and party loyalties to push. In Your pres- fore Senators can expect further roll- Montenegro). ence we can simply be. You love us in call votes today. The PRESIDING OFFICER. Under spite of our mistakes and give us new We do have one complicating factor. the previous order, the Chair recog- beginnings each day. We thank You We have also had another natural dis- nizes Senator MCCAIN for 5 minutes. that we can depend upon You for guid- aster to strike our country, this time Mr. MCCAIN. Mr. President, I would ance in all that is ahead of us today. in Oklahoma. The Senators from Okla- like to ask unanimous consent that Particularly we ask for Your guidance homa feel the necessity, understand- Senator DORGAN be allowed to make a on the vote on the war powers resolu- ably, to go to Oklahoma, and we will brief unanimous consent request. tion concerning our involvement in have to take that into consideration in The PRESIDING OFFICER. The Sen- Kosovo. how we schedule votes. I will consult ator from North Dakota is recognized. Now, Father, we realize that this with the Democratic leader about that PRIVILEGE OF THE FLOOR quiet moment in which we have placed timing. Mr. DORGAN. I ask unanimous con- our trust in You has refreshed us. We The Senate will be in recess for the sent that privilege of the floor be are replenished with new hope. Now we weekly party caucus luncheons from granted to Anthony Blaylock, a mem- can return to our outer world with 12:30 to 2:15. I thank my colleagues for ber of my staff, during the pendency of greater determination to keep our pri- their attention. I believe Senator S.J. Res. 20. orities straight. Today is a magnificent MCCAIN is ready to speak. The PRESIDING OFFICER. Without opportunity to serve You by giving our f objection, it is so ordered. Mr. MCCAIN. Mr. President, I also very best to the leadership of our Na- RESERVATION OF LEADER TIME tion. In the name of our Lord and Sav- ask unanimous consent for 3 additional ior. Amen. The PRESIDING OFFICER (Mr. AL- minutes, if necessary, for me to com- f LARD). Under the previous order, the plete my statement. leadership time is reserved. The PRESIDING OFFICER. Without RECOGNITION OF THE MAJORITY f objection, it is so ordered. LEADER Mr. MCCAIN. Mr. President, I thank DEPLOYMENT OF U.S. ARMED The PRESIDENT pro tempore. The Senators LOTT and DASCHLE for allow- FORCES TO THE KOSOVO REGION able majority leader is recognized. ing the Senate more time for this de- OF YUGOSLAVIA Mr. LOTT. I thank the Chair. bate than was their original intention. f The Senate resumed consideration of I think it has been a good debate. It the joint resolution, which reads as fol- was not as long as I would have liked SCHEDULE lows: but better than I had expected yester- Mr. LOTT. This morning the Senate S.J. RES. 20 day morning. Many Members on both will resume consideration of S.J. Res. Whereas the United States and its allies in sides, or should I say on all the mul- 20, with a brief statement by Senator the North Atlantic Treaty Organization are tiple sides of the question, have had MCCAIN. Following Senator MCCAIN, conducting large-scale military operations the opportunity to express themselves

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

S4611

. S4612 CONGRESSIONAL RECORD — SENATE May 4, 1999 and most have done so with distinc- ployed them in small units to reach losing will recover what we have risked tion. I also thank the cosponsors of the more towns and villages in less time in the Balkans. If we fail to win this resolution for having the courage of than if the President had remained si- war, our allies and our enemies will their convictions, Senators HAGEL, lent on the question of ground troops. lose their respect for our resolve and BIDEN, LUGAR, KERRY, DODD, ROBB, and In other words, he has been able to dis- our power. You may count on it, Mr. all the other cosponsors. You have place, rape, and murder more Kosovars President. And we will soon face far made the case for the resolution far more quickly than he could have if he greater threats than we face today. We more persuasively than have I, and I feared he might face the mightiest will know a much more dangerous ab- commend you for fighting this good army on Earth. That is a fact of this sence of peace than we are experi- fight. war that is undeniable. And shame on encing today. Mr. President, the Senate is not in the President for creating it. Mr. President, I ask my colleagues, order. Now what is left to us, as our war on in this late hour, to put aside our res- The PRESIDING OFFICER. The Sen- the cheap fails to achieve the objec- ervations, our past animosities, and en- ate will please be in order. tives for which we went to war? Well, courage, implore, cajole, beg, shame The Senator from Arizona is recog- bombing pauses seem to be an idea in this administration into doing its duty. nized. vogue. They were popular once before Shame on the President if he persists Mr. MCCAIN. Mr. President, I want in another war. And I personally wit- in abdicating his responsibilities. But to speak plainly in the few minutes re- nessed how effective they were. No, Mr. shame on us if we let him. maining to me. What I say now may of- President, I do not have much regard The PRESIDING OFFICER. The mi- fend some people, even some of my for the diplomatic or military efficacy nority leader. friends who support this resolution. I of bombing pauses. As a matter of fact, Mr. DASCHLE. Mr. President, I will am sorry for that, but I say it because it was only when bombing pauses were use leadership time to conclude this I believe it is the truth, the important finally abandoned in favor of sustained debate with a few comments of my truth, and it should be said. strategic bombing that almost 600 of own. Let me begin by commending the au- The President of the United States is my comrades and I received our free- thors of this resolution, Senator prepared to lose a war rather than do dom. I daresay some of the years that MCCAIN, Senator BIDEN, and others. I the hard work, the politically risky we had lost were attributable to bomb- support their intent, and I appreciate work, of fighting as the leader of the ing pauses. I will not support a bomb- the effort of all the authors in making greatest nation on Earth should fight ing pause until Milosevic surrenders this resolution the focus of our atten- when our interests and our values are and not a moment before. imperiled. tion this morning. My father gave the order to send B– There ought to be three rules this We all know why in a few minutes 52s—planes that did not have the preci- country should always adhere to in an this resolution is going to lose. It is sion-guided munitions that so impress addressing an international conflict. going to lose because the President and us all today—he gave the order to send The first rule is that every effort members of his Cabinet have joined them to bomb the city where his oldest should be made to resolve the matter with the opponents to the war and lob- son was held a prisoner of war. That is diplomatically. I believe this is being bied hard for the resolution’s defeat. a pretty hard thing for a father to do, done in the case of the conflict in Do not believe administration officials Mr. President, but he did it because it Kosovo. In this struggle, there is no when they tell you that the resolution was his duty, and he would not shrink end to the lengths the United States would have been defeated even without from it. He did it because he didn’t be- and NATO have gone in an effort to re- their active opposition. Had they lieve America should lose a war, or set- solve this matter diplomatically. As we worked half as hard in support of it as tle for a draw or some lesser goal than speak, diplomatic efforts are under- they did to defeat it, the result would it had sacrificed its young to achieve. way. There will continue to be negotia- have been different today. He knew that leaders were expected to tions, discussions, and communications No, it is not that they could not win; make hard choices in war. Would that to resolve this matter diplomatically. it is because they did not want to win the President had half that regard for Up to now all these efforts have failed. that we are facing defeat this morning. the responsibilities of his office. Secondly, should diplomacy fail and That is a shame, a real shame. Give peace a chance. Yes, peace is a U.S. forces be needed, we must not tie I have said repeatedly that the Presi- wonderful condition. Sweeter than the hands of the Commander-in-Chief. dent does not need this resolution to many here will ever fully appreciate. We must provide whatever support is use all the force he deems necessary to The Kosovars appreciate it. They are requested. That is what this resolution achieve victory in Kosovo. I stand by living in its absence, and it is a hor- says: that the President is authorized that contention. And I have the good rible experience. But the absence of to use all necessary force. I understand company of the Constitution behind freedom is worse. They know that too. and support that concept. me. They know it well. And if the price of Thirdly, we must support our troops I had wanted this resolution consid- peace is that we abandon them to the when they come home—something we ered in the now forlorn hope that the cruelty of their oppressors, then the haven’t always done. We didn’t in Viet- President would take courage from it price is too high. nam when they were suffering from the and find the resolve to do his duty, his Some have suggested that we can effects of exposure to Agent Orange; we duty by us, the American people, by drop our demand that NATO keep the didn’t in the Persian Gulf when they the alliance he leads, and by the suf- peace in Kosovo. Let the U.N. com- were hit by Persian Gulf Syndrome. We fering people of Kosovo who now look mand any future peacekeeping force in- have not always supported our troops to America and NATO for their very stead. But a U.N. peacekeeping force when they come home. Veterans and lives. led directly to the Srebrinica massacre the Veterans’ Administration often- I was wrong, and I must accept the in Bosnia. I think the Kosovars would times are neglected in times of peace. blame for that. The President does not rather they not have that kind of There is a caveat, an obvious caveat, want the power he possesses by law be- peace, Mr. President. And we should to these three rules. When deploying cause the risks inherent in its exercise not impose it on them. force, there must be a clear indication have paralyzed him. Give peace a chance. If we cannot of need. Only in the rarest of cir- Let me identify for my colleagues keep our word to prevail over this infe- cumstances when it comes to executing the price paid by Kosovars for the rior power that threatens our interests a war, a military effort, should the President’s repeated and indefensible and our most cherished ideals, then it Congress get ahead of the Commander ruling out of ground troops. Mr. is unlikely that we will long know a in Chief and his military advisers. That Milosevic was so certain of the limits real peace. We may enjoy a false peace is especially true when the United to our commitment that he felt safe for a brief time, but that will pass. States is involved, as it is today in enough to widely disperse his forces. Whatever your views about whether we Yugoslavia, with other nations. They Instead of massing his forces to meet a were right or wrong to get involved in are the ones—the military, the Com- possible ground attack, he has de- this war, why would you think that mander in Chief—who must decide May 4, 1999 CONGRESSIONAL RECORD — SENATE S4613 what kind of forces are to be used, not going to resolve this matter in con- voted to support the use of air power in what kind of war is to be waged, what cert with you; it is going to be us; we this operation. It was my view then facts must be considered in waging it will call the shots. that the administration had already successfully. We are not prepared to do that today, committed our forces to action. A vote The distinguished Senator from Ari- Mr. President. against the President, when bombing zona made some comments about the Thirdly, because this authority has was imminent, would have undercut President’s unwillingness to use not been requested either by the Presi- our troops at the front. However, that ground troops. It isn’t just the Presi- dent or his military advisers or by is not the case with the resolution be- dent. It is all of his Joint Chiefs of NATO, we have no clear idea what it is fore us today. As a nation we have a Staff. It is everybody in the Pentagon we are authorizing with this resolu- choice to make. The choice should be who advises the President who has tion. Because the President hasn’t an informed one. Our intentions in this said, This is not the time; we do not made a specific proposal, are we voting operation have been noble and just. want to commit ground troops at this to use tactical nuclear weapons? Are However, the boundaries of this con- point, Mr. President; don’t request we committing 500,000 troops for 5 flict are not apparent to many in this them. And he has not. years? Are we committing ourselves to body nor it seems to a majority of the It is for this reason, Mr. President, an invasion of neighboring countries, American people. Before we give a that I reluctantly join in tabling this should that be necessary? The answer blank check to the administration, I resolution today. I do so for three rea- to these questions, of course, is no. believe that the President should clear- sons. First, as I have just noted, the They are extreme options which no one ly articulate to both Congress and the President has not asked for this au- would dare suggest. But what are we American people the objectives and the thority, nor have his military advisers. authorizing with this resolution? With- national interest which require a reso- They have indicated they don’t support out a specific proposal from the Presi- lution authorizing full scale war. To the inclusion of ground troops at this dent, we can only guess. By guessing, date he has not done so. time. Why? Because the air campaign we do a disservice to our mission. By As have many of my colleagues, I is working. That is not what some of guessing, we relegate too much discre- have traveled to the region. I have been the media want you to hear, but it is tion to others. briefed by General Clark, spoken to the case that the air campaign is work- Mr. President, an up-or-down vote on troops in the field and visited refugee ing. The resolve on the part of Yugo- this resolution is premature. There camps in Albania. There is no question slavia is being tested. And, I must say, may be a time when it will be required. that our military personnel are the there is increasing evidence that their That time must be determined by the best in the world and are doing an out- resolve is weakening. There is increas- Commander in Chief and our NATO al- standing job under extremely difficult ing evidence that, regardless of what lies. If or when that time comes, it is circumstances. However, I have grave criteria one uses to evaluate the suc- the responsibility of the Congress to do concerns over NATO’s ability to sal- cess of the air campaign, it is working. what we must do and what we have vage the humanitarian situation Until we have given every oppor- done on many occasions in the past: We through aerial bombardment and its tunity for the air campaign to work, must debate it and we must vote on a policy of war by committee. I know moving to a new strategy is premature. resolution of approval. Until then, the that Senator MCCAIN shares this latter The time involved, the logistics in- Senate has spoken on this conflict. On concern. The United States led a coali- volved, the questions involved in mov- a bipartisan vote, we have given our tion force during the Persian Gulf war. ing forces into Yugoslavia all have to approval to the air campaign. We have Yet in that war it was our military be considered, but not now. This is not no need to do so again. leaders and not politicians in Brussels the time. Will there come a time? Per- So I ask my colleagues, let us be pa- who called the shots. Mr. President, we haps. But it is not now. The Joint tient. Let us support our military as won the Persian Gulf war; we are not Chiefs of Staff unanimously endorse they fight so valiantly and successfully winning this war. My fear is that if we that position—not now. What is the in the air mission. Let us send a clear adopt this resolution now, it will be Commander in Chief supposed to do? message to the leaders in Yugoslavia, viewed as tacit approval of an overly He listens to his military advisers and and to NATO: We will not terminate bureaucratic and ineffective NATO they say, ‘‘Not now.’’ He listens to his the air war until we are successful. command structure. The Senate can national security people and they say, I might note another bit of evidence pass this resolution and authorize the ‘‘Not now.’’ of our success occurred just this morn- President’s ‘‘. . . use of all necessary This isn’t a matter of courage, this ing. There are reports that a NATO F– force and other means . . .’’ but I fear isn’t a matter of a lack of resolve on 16 fighter jet shot down a Serb Mig29. the effect will be mitigated by the cur- the part of the President. Instead, it is The air war is working. We will keep rent command structure. It is a pre- a matter of the President working with the pressure on. We will not look the requisite that prior to any escalation all the people in this administration to other way when victims of ethnic of our involvement in this conflict, pick the best course of action. I believe cleansing look to us. that NATO streamline its command he has done so. A vote on this motion to table this structure and put professional soldiers Secondly, we must keep one thing in resolution is a vote to postpone the de- back in charge. mind about this effort. This is not uni- cision to alter our military course in A greater concern to me is the effect lateral. We are involved with 18 other Yugoslavia. It is a vote to support our that this operation is having on the nations, most of whom oppose chang- military in their efforts to bring peace readiness of our military forces world- ing NATO’s current air campaign strat- to this region. I urge our colleagues to wide. Can we adequately defend South egy. If all necessary force implies using support it. Korea, Taiwan, and Kuwait while wag- ground troops, they oppose taking a I yield the floor. ing a full scale war against Serbia? different course of action. This is a test Mr. SHELBY. Mr. President, there Some of the facts are alarming. We for NATO. We should all recognize are few people in the United States have no carrier battle group in the that. If we truly want NATO to suc- Congress who are as familiar with war Western Pacific. The Air Force has ceed, we have no choice, no choice but as is the sponsor of this joint resolu- committed one-third of its combat air- to make all decisions involving strat- tion, my esteemed colleague from Ari- craft to the Balkans. The President has egy in concert with our NATO allies. zona, Senator JOHN MCCAIN. I agree authorized the activation of over 33,000 For Members today to say we are with the principles behind his resolu- reservists, including many Air Na- going to assert that our position calls tion; that this Nation should not fight tional Guard tanker pilots from Bir- for a change in strategy, that the air wars to a stalemate, it should fight mingham, Alabama. The United States war alone is not working, sends a clear them to win or not fight them at all. is still involved in an undeclared shoot- message to all the other NATO coun- Mr. President, for the past 6 weeks, ing war with Iraq. Last week, the ad- tries that we are the ones in charge, we American military forces have been ministration informed the Appropria- are the only ones making this decision; participating in a NATO-led aerial tions Committee that the Nation’s we don’t care what you think, we are campaign in the Balkans. In March, I stated ability to simultaneously fight S4614 CONGRESSIONAL RECORD — SENATE May 4, 1999 and win two major regional conflicts is The intent was noble—to defend human vasion of the U.S. into a small Euro- tenuous at best. And finally, our intel- rights. The dreadful massacre at the pean country appears arrogant and ligence resources are being stretched hands of the Serbs was met with equal- threatening to much of Europe. Russia, thin due to this crisis. In short, we are ly savage conduct by the Albanians. no longer a strategic threat in Europe, pushing the envelope of our military The agreement instrument was inten- is now being revitalized into a stra- capabilities. It begs the question: Is tionally vague to be interpreted by the tegic threat. there a vital national interest in the Kosovars as a vote for independence. (E) A country half the size of South Balkans which necessitates a commit- The important thing to remember is Carolina with half the population is ment of the bulk of our limited mili- that Serbia-Montenegro is a sovereign being hit with forty bombardments a tary assets and endangers longstanding country. Milosevic was selected as its day. Like Viet Nam, we are destroying strategic interests? I don’t have the an- head by its Parliament. In this civil it in order to save it. swer to that question. The answer must war there was no good side. Today in It appears to me the recoil is killing come from the President. He must total war there is no good side. the gun crew. Once again we are told make his case for war to the Congress Another important point is that the that bombing will soon cause the peo- and American people prior to the pas- proposed agreement was a non-start- ple of Serbia-Montenegro to arise and sage of any resolution authorizing full er—Milosevic could not agree any more throw the rascals out. In 1944 while pre- scale war. I urge him to do so. It is his to relinquishing Kosovo than Lincoln paring to cross the Rhine I heard this duty as the Commander in Chief. The could the South—a so called free elec- about Hitler; then in Viet Nam about stakes are very high. tion in three years was a given in an Ho Chi Min; then for the past seven I close with a reaffirmation of my area ninety percent Albanian and ten years about Saddam. When will the support for our military forces percent Serb. State Department learn? When will we throughout the world, especially those According to the Carter Center in At- all learn that there is no ‘‘win’’ in personnel fighting in the Balkans. Like lanta there are twenty-two wars the Kosovo? At the moment we are not their predecessors throughout history, world around—all civil. And over half only losing the war, we are losing our the Americans who today go in harm’s more violent than Kosovo. The United integrity as a world power. This mis- way wearing the uniform of their coun- States is a world power. To continue as take must be brought to a close. While try lead a noble pursuit. Their service a world power with sufficient credi- under orders, we all support our troops. is not just another job as some would bility to extend our influence for free- But this is not the issue before us. Un- have us believe. Regardless of the out- dom and individual rights we cannot fortunately, the policy in Kosovo is a come of this vote, I pledge my contin- venture into every human rights con- split decision between the House and ued support to those soldiers, sailors, flict. The American people will not the Senate. We still debate to deter- airmen, marines, and Coast Guardsmen support it—as evidenced by the vote in mine that policy. This is sad, but it’s who are in the field as I speak today. the Congress. And living in the real the reality. Under no circumstance This resolution authorizes the Presi- world we need to husband our integrity should we sacrifice a single GI for this dent to, ‘‘. . . use all necessary force for the world concerns of Russia and its mistake and indecision. and other means, in concert with missiles, North Korea, peace in the I shall vote to table. United States allies, to accomplish Middle East and the like. Mr. MURKOWSKI. Mr. President, I There is no national security threat United States and North Atlantic Trea- rise in support of the motion to table to the United States in Kosovo. We ty Organization objectives in the Fed- the resolution authorizing the Presi- have yet to have a national debate to eral Republic of Yugoslavia.’’ I have no dent to use whatever force and means determine that GIs are to be sacrificed doubt that Senator MCCAIN knows necessary to carry the military cam- for human rights. paign against Yugoslavia to a success- what it takes to succeed in a military The demand that Milosevic agree or ful conclusion. As written, this resolu- campaign. I am confident that our be bombed into agreement was diplo- tion would provide the President with military leaders know what it takes to macy at its worst. The Congress, the blanket authority to wage this war, in- succeed in a military campaign. How- country and most of all the military cluding the right to deploy ground ever, as of today, this administration were totally unprepared to pursue this troops in the Balkans. There are too has demonstrated neither the vital ne- threat. More importantly, as I learned many unanswered, if not ignored ques- cessity for, nor the capacity to success- in the artillery no matter how good the tions about this war. If the Senate fully prosecute, a full scale war in the aim if the recoil is going to kill the Balkans. I urge the Commander in gun crew, don’t fire! were to give the President this blanket Chief to execute the duties of his office The following is the recoil: (A) A authorization, we would abrogate our and make that case before Congress civil war has turned into one of na- responsibility to our troops and to the and the American people. Until he does tional defense for Milosevic. When the American people to get real answers to so, I cannot in good conscience vote to U.S. went to national defense upon the these questions. support Joint Resolution 20. attack on Pearl Harbor, the first order First of all, what would constitute a Mr. HOLLINGS. Mr. President, Win- of business was to clear the west coast ‘‘successful conclusion’’ to this war? ston Churchill observed that the ‘‘Bal- of all who were thought to be the Would it be the overthrow of Slobodan kans have produced more history than enemy or sympathetic to the enemy. Milosevic and his government? Perhaps we can absorb locally.’’ With that in Over 110,000 Nisei, sixty-four percent of the removal of all Serbian troops from mind, let’s realize certain history nec- whom were U.S. citizens, were forced Kosovo and the subsequent return of essary to judgment. from their homes into internment all refugees to their homeland? Or This was a civil war in a sovereign camps. When NATO attacked, would a successful conclusion to the country. Last Spring it was escalating. Milosevic’s ethnic cleansing became war simply be forcing Milosevic to The shooting of a Serb policeman on enemy cleansing; 700,000 in three agree to the terms of the peace agree- the corner and the resulting burning of weeks. Milosevic never would have at- ment which failed at Rambouillet? I, Albanian homes on the block had tempted this on his own save the NATO for one, do not feel this question has mushroomed to three thousand KLA attack on his country. We have made been sufficiently addressed, and I have fighting for independence versus ten Milosevic popular in his country. a hunch that most, if not all of my col- thousand Serbian troops massing on (B) Unprepared to pursue a ground leagues would agree with this assess- the Kosovo border. By Fall it had war, NATO has strengthened ment. grown to ten thousand KLA versus Milosevic’s military control of Kosovo. Mr. President, even if we can agree to forty thousand Serbs. (C) In contrast, the KLA assumes what would constitute a ‘‘successful In walks Secretary of State Mad- NATO has taken its side in the civil conclusion’’ to the war, what else are eleine Albright in Rambouillet, an- war and now will want revenge no mat- we agreeing to? Surely the use of nouncing to Milosevic and the ter what happens. We have ignited fur- ground troops. But how many are we Kosovars that killing would have to ther the historic flames of enmity. talking? 50,000? 100,000? 200,000? more? stop; that there be a cooling off period (D) With no national security inter- We have already committed our pilots for three years, then one man one vote. est at stake, the overwhelming air in- to the conflict. But as to ground May 4, 1999 CONGRESSIONAL RECORD — SENATE S4615 troops—I think this is an issue which I continue to have concerns about cussing our policy options, the McCain- mandates a separate Senate debate spe- both the failure of diplomacy that led Biden resolution merely provides the cifically on this issue. We owe it to the to the use of force in Kosovo and the final answer: the President knows best. American people, and we surely owe current military strategy being em- This is not the statement I want to this to the troops whose lives lay in ployed. But now that U.S. Armed provide to the people of Nebraska. the balance of this decision. Forces are engaged, we should send a I remain hopeful that the current air What about the costs of this oper- strong message of unity and deter- campaign will bring about a return to ation? I do not think we have a clue mination to see the mission through. diplomacy. President Milosevic must what this will cost—in lives or in dol- President Milosevic should know both realize that NATO’s objectives—to stop lars. We know that the President has the U.S. Senate and the American peo- the humanitarian tragedy in Kosovo, requested somewhere in the realm of $6 ple remain committed to achieving our return the Kosovar people to their billion, but the actual floor debate objectives. homes, and re-establish Kosovar auton- hasn’t even begun and the figure is al- I will vote to table S.J. Res. 20 for omy—will be achieved. The only hope ready fluctuating between $8 and 13 bil- three reasons. First, the language con- for the Serbian people is a negotiated lion. tained in the resolution is too broad. I settlement. In the mean time, the There is another matter about this respect what Senators MCCAIN and United States and our NATO allies resolution, and about this war, which BIDEN are trying to accomplish with should continue to apply pressure on troubles me greatly. When the military this resolution; they are trying to in- the Serbian government while working completed its Quadrennial Defense Re- crease the chance of success of our with nations like Russia to establish view (QDR), we were assured that our military operation. However, I do not the basis for a settlement. In the long- readiness state would allow us to suc- support giving the President of the run, the United States and Europe are cessfully respond to two full scale wars United States the authority to ‘‘use all going to have to address the issues of at the same time. This would mean necessary force’’ to accomplish our peace and stability in the Balkans in a that although we are engaged in the goals in Kosovo. I find it disturbing larger context of economic develop- air, and perhaps on the ground, in that the United States Senate is con- ment and ethnic security. Mr. President, Congress does have a Kosovo, we would be ready to fight a sidering a resolution that would give role to play, both in the short-term dis- full scale operation at the same time in the President more authority to exer- cussion of our current military actions another theater—the Korean Peninsula cise military force than he has re- and in the long-term discussion of our and Iraq come to mind as real possibili- quested. Passage of this resolution would be the equivalent of giving the broader policy in the Balkans. We must ties. begin to talk about these issues in a se- Prior to the Kosovo operation, the President a blank check to operate rious manner or continue to face the Department of Defense assessed the militarily in Yugoslavia. prospect of having our decisions made risks associated with responding to a Secondly, passage of the resolution for us as events pass us by. Mr. Presi- second major theater war as ‘‘high.’’ would abrogate Congressional responsi- dent, let’s table the McCain-Biden res- But now, because of our large commit- bility for the conduct of this war. The Constitution provides the Congress olution and begin a real debate on ment in the Balkans, and the fact that Kosovo and our national security inter- we are running dangerously low on with a clear role in the use of military force. While the President has consist- ests. cruise missiles and other munitions, Ms. LANDRIEU. Mr. President, ently stated his belief that ground our same military planners have Douglas MacArthur, one of this coun- forces will not be used in a non-permis- changed this assessment to ‘‘very try’s greatest military minds, stated sive environment, passage of this reso- high.’’ If I understand this correctly, ‘‘it is fatal to enter any war without lution would allow the President to re- and I think I do, some of our own mili- the will to win it.’’ I believe that we verse his position without prior Con- tary strategists are concerned that our are faced with that question today. gressional authorization. To be clear, readiness is insufficient at this time to Does this country have the will to win take on Milosevic and Saddam Hussein Mr. President, if this resolution were the war in Kosovo, or will the Atlantic (Iraq) or Kim Jung-il (North Korea) at to pass, the President would be able to Alliance become another fatality of the same time. commit the full might of the U.S. mili- Serbian aggression? We must pose this Given this Administration’s track tary in Kosovo without first coming to question to the Senate now because of record in dealing with Iraq and North the Congress and explaining the mis- a mistake. As NATO policy in Kosovo Korea, I think we have a real problem sion, without explaining the military evolved, we made the mistake of tak- on our hands. This is a catastrophe of objectives, without explaining the exit ing a critical capability off the table. virtually untellable proportions wait- strategy, and without explaining how From the very start, the President and ing to happen. such a deployment would affect our NATO leadership stated that this President Clinton has not asked the military commitments around the would be an air campaign, and an air Congress for this blanket authorization world. Mr. President, the American campaign only. They went to great on this war—and he continues to op- people should expect more from their lengths to make this point to the press pose the use of ground troops. While I elected representatives; Congress and to the public. Unfortunately, other strongly believe that it would be wrong should not surrender its Constitutional ears were also listening. Slobodan for him to deploy ground troops absent responsibilities in this matter. Milosevic heard loud and clear that clear Congressional authorization, I Finally, I oppose the McCain-Biden this would be a limited NATO effort. also do not believe that we should resolution because it is the wrong leg- By doing so, we gave Milosevic every grant him this authority before he islative statement at the wrong time. reason to doubt that NATO had the makes the request and the case for this While I recognize S.J. Res. 20 is before will to win. authority. the Senate due to the parliamentary Furthermore, we gave Mr. Milosevic On a final note, I want to congratu- intricacies of the War Powers Act, it a vital piece of intelligence on how we late Reverend Jesse Jackson for his ef- does not provide an appropriate start- would fight this war. In doing so, we forts this past weekend, and convey my ing point for a Senate debate. The have inadvertently given him an ad- deep relief and pleasure that the three truth is, the Senate is long-overdue in vantage more valuable than divisions American soldiers were released and conducting a real debate over our role of soldiers, or batteries of antiaircraft are now reunited with their families. in Kosovo. What are our objectives? guns. This information has allowed Mr. President, I support the motion What are our long-term strategic inter- Milosevic to disperse his forces and dig to table, and urge my colleagues to do ests in the Balkans? How do our mili- in. He knows he has only to wait out the same. tary actions Kosovo affect our commit- the air campaign to win this war. Mr. KERREY. Mr. President, I rise ments to peace and stability through- It is axiomatic that you cannot win a today to state my strong opposition to out the world? These are the sort of war by air power alone. We tried in the McCain-Biden resolution currently fundamental questions we should be de- Vietnam. We tried in Iraq, but when pending before the Senate. I intend to bating on the floor today. Rather than meeting an enemy determined to re- vote to table this resolution. providing a starting point for dis- sist, airpower can only succeed with S4616 CONGRESSIONAL RECORD — SENATE May 4, 1999 the use of ground troops. However, at tional authority. The President is not So, Mr. President, I urge our col- the start of this war, we told Milosevic seeking additional authority. The Sen- leagues to support the motion to table that he did not have to worry about ate has already acted and expressed its and I so move to table the resolution. ground troops. That is why he is so cer- support for the bombing campaign. I ask for the yeas and nays. tain that this country and NATO do I have had my reservations about the The PRESIDING OFFICER. Is there a not have the will to win. Ask your- President’s policy from the beginning sufficient second? selves, how much more accommodating and I so voted; but it appears that per- There is a sufficient second. to NATO demands would Serbia be, if haps the Administration has stopped The yeas and nays were ordered. they knew we were preparing an inva- deciding on targets by committee and The PRESIDING OFFICER. The sion? Yesterday, Milosevic announced that they are actually attacking tar- question is on agreeing to the motion that he has over 100,000 troops in gets that have greater value. We should of the majority leader. The yeas and Kosovo. This is most likely a lie, but allow that campaign to continue to nays have been ordered. nevertheless, could Milosevic afford to work. This is the wrong language and The clerk will call the roll. have so many troops rounding up it is at the wrong time. Currently, The legislative clerk called the roll. Kosovars if he knew NATO might in- there seem to be some effort to find a The result was announced, yeas 78, vade? Of course not. One of the reasons negotiated settlement. We should en- nays 22, as follows: that this man has been able to con- courage that. But this language would go too far, [Rollcall Vote No. 98 Leg.] tinue to perpetrate war crimes in beyond what I think the Senate is pre- YEAS—78 Kosovo, is precisely because he has al- pared to do and what is necessary and Abraham Enzi Moynihan ways known that he need not fear a what has been requested. It authorizes Akaka Feingold Murkowski Allard Feinstein Murray ground war. the use of all necessary force and other Mr. President, I believe it is high Ashcroft Fitzgerald Nickles means to prosecute this fight. That Baucus Frist Reed time that we rectify our mistake. Mr. does include ground troops. I think the Bennett Gorton Reid Milosevic has underestimated the re- Senate would want to have a longer de- Bingaman Gramm Roberts solve of the United States and the re- Bond Grams Rockefeller bate and want to discuss other options. Boxer Grassley Roth solve of NATO. We will see this war For instance, when we were consid- Breaux Gregg Santorum through to victory. The first step to ering the timing of this resolution last Brownback Harkin Sarbanes victory is a very simple one. Mr. week, we were exchanging language be- Bunning Helms Schumer Milosevic must understand that this Burns Hollings Sessions tween the majority leader and the Byrd Hutchinson Shelby country will use all of its resources to Democratic leader, to see if we could Campbell Hutchison Smith (NH) prevail. No one doubts that we have find language that would have broad, Chafee Inhofe Snowe the means to win the war in Kosovo, Collins Jeffords Specter bipartisan support. That was inter- Conrad Johnson Stevens this resolution will also demonstrate rupted by this resolution. Coverdell Kennedy Thomas that we have the will. It does not com- Let me review how we got here. This Craig Kerrey Thompson mit the United States to a ground war, resolution was introduced weeks ago. Crapo Kohl Thurmond but it does state that if a ground war is Daschle Kyl Torricelli And under the War Powers Act, it was Domenici Levin Voinovich necessary for NATO to meet its objec- the pending business as of last Friday. Dorgan Lincoln Warner tives, we will fight a ground war. In We cannot go to another matter, under Durbin Lott Wellstone short, we will fight anywhere and any- the War Powers Act, once the Parlia- Edwards Mikulski Wyden time to accomplish this mission. mentarian ruled that this language NAYS—22 This country has faced dark days in kicked into action the War Powers Act. Bayh Hagel Lugar Europe before. I think few people ex- So we had to either act on it or get an Biden Hatch Mack pressed the significance of that time agreement to postpone it. I agreed and Bryan Inouye McCain better than Winston Churchill. When Cleland Kerry McConnell urged that we postpone it for a week or Cochran Landrieu Robb asked what were his goals for the war 10 days until we had some bipartisan DeWine Lautenberg Smith (OR) with Germany he said simply ‘‘victory language we could agree on. Senator Dodd Leahy Graham Lieberman at all costs, victory in spite of all ter- MCCAIN agreed to that postponement. ror, victory however long and hard the Senator DASCHLE indicated that he The motion to lay on the table the road may be; for without victory there thought he could support that. joint resolution (S.J. Res. 20) was is no survival.’’ But, along the way, as Senators are agreed to. I believe that if this Nation has entitled to do, there were objections to f learned any lesson from the twentieth postponing it by unanimous consent. FINANCIAL SERVICES century, it is that you do not win wars So we had to deal with this issue. My MODERNIZATION ACT OF 1999 by half measures. Winston Churchill suggestion at that time was that we understood this. So do the American not get into a substantive debate, that The PRESIDING OFFICER (Mr. people. I hope that the Senate will we offer a procedural motion to set it BUNNING). The motion to proceed to S. demonstrate that it too understands aside until another time when we can 900 is agreed to and the clerk will re- this lesson, and will oppose tabling the better determine what is needed—if port. McCain resolution today. something different is required than The legislative assistant read as fol- The PRESIDING OFFICER. The ma- what is already on the books, if some- lows: jority leader is recognized to move to thing more is asked for by the Presi- A bill (S. 900) to enhance competition in table. dent, or if we are ready to go forward the financial services industry by providing Mr. LOTT. Mr. President, I want to with the War Powers Act or even a dec- a prudential framework for the affiliation of use my leader time to make a brief laration of war. But I don’t think we banks, securities firms, insurance compa- statement also. are there at this moment. nies, and other financial service providers, Mr. President, I should begin by say- So we are forced to have this vote and for other purposes. ing I understand the feeling of the today. I would like to describe it as a The Senate proceeded to consider the sponsors of this resolution and I com- procedural vote because I think it is. It bill. mend them for their dedication and is to table this resolution and to re- The PRESIDING OFFICER. The Sen- their untiring efforts. But I would serve the opportunity at some future ator from Texas is recognized. today, in dealing with this resolution, date to have a vote on whether or not Mr. GRAMM. Does the Senator from quote an ancient Greek historian who we want to give the President author- New Mexico wish to say something be- once said, ‘‘Observe due measure, for ity to prosecute this matter with all fore we start? right timing is in all things the most necessary force. I do not think that is Mr. President, I ask unanimous con- important factor.’’ where we are today. But I do want to sent to yield to Senator DOMENICI and This resolution is out of sync with say emphatically that I think the lan- to reclaim my time when he is finished. current events. There is no request for guage is substantively excessive, not The PRESIDING OFFICER. Without this action. NATO is not seeking addi- necessary, and uncalled for. objection, it is so ordered. May 4, 1999 CONGRESSIONAL RECORD — SENATE S4617 The Senator from New Mexico is rec- ments. I am hopeful that we can com- the American financial system. It ognized. plete this process by Thursday. We would knock down existing barriers (The remarks of Mr. DOMENICI per- have a long trail to follow to complete that separate insurance and banking taining to the introduction of S. 951 are the bill. and separate securities and banking. It printed in today’s RECORD under As many people in the Senate are would create a new financial institu- ‘‘Statements on Introduced Bills and aware, the House has a divided jurisdiction in America, which would still be a Joint Resolutions.’’) tion. The House committee has acted bank or a bank holding company, Mr. GRAMM addressed the Chair. on the bill, the Banking Committee; would still have the same structure, The PRESIDING OFFICER. The Sen- but the Commerce Committee, which but it would be a very different institu- ator from Texas is recognized. has joint jurisdiction, is now in the tion, and it would be basically a super- Mr. GRAMM. Mr. President, let me process, on a bipartisan basis, of writ- market for financial services. try to outline the procedure that we ing a bill that is very different. So I am Let me say, in going into the process, have agreed to by unanimous consent hopeful that by this Thursday we can that my goal is to put together a bill as we begin the debate on financial complete this bill and start moving to- that will provide greater diversity and services modernization. We have ward conference and toward all the financial services at a lower price to agreed to have opening statements. I work that still lies before us. American consumers. If this bill does guess we will assume that the rest of I would be happy to yield to Senator not meet the test of providing benefit the morning will be used up in those SARBANES. in terms of a greater diversity and opening statements. I will make an Mr. SARBANES. Mr. President, I just availability of product, if it doesn’t opening statement, the ranking mem- want to underscore a couple of the meet the test of providing a lower cost ber of the committee, Senator SAR- things that the able chairman of the for those products, for the people who BANES, will make an opening state- committee just stated. This is a partial do the work and pay the taxes and pull ment, and then all those who would agreement that was worked out and the wagon in America, then it would be like to make an opening statement are was an effort to get the Senate into its my view that we have failed in this encouraged to come to the floor and do consideration of the bill in an orderly bill. That, I think, is the test that we those statements this morning. and prompt manner. I think it will ac- need to use in order to judge our suc- Under the unanimous consent agree- complish that. cess or lack thereof on this bill. ment, Senator SARBANES would then A number of colleagues asked me In terms of barriers erected between offer a comprehensive substitute for during the last vote about making insurance and banking and between se- the committee mark. That would be opening statements. I indicated that curities and banking, most of these debated for the remainder of the morn- the chairman would be making an barriers erected in the 1920s and 1930s, ing—if there is any morning left when opening statement, and I would make what has happened that has really it is introduced—and this afternoon. one, and then the floor would be open brought us to this point in terms of When debate on that is completed, a for opening statements. We hope we legislating this dramatic change in the vote would be set. It is my assumption, can complete those, I assume, this American financial system is that, since we have colleagues from two morning before we take a break for the over time, these barriers have stopped States who have had a terrible natural conference luncheons, and then we looking like barriers, and now they disaster and have gone home this would be able to move on to the sub- look like little slices of Swiss cheese. morning to assist in making the eval- stitute amendment in the afternoon. They have large and small holes in uations that will help us respond to So we hope Members will try to keep them, some created by innovative regu- that through our Federal emergency this schedule in mind and come over lators, some created by the growth of programs, my assumption is that we sometime during the morning here. I practice and convention. But the net will set aside the vote until some time know a number have left to go to com- result is that after fighting each other tomorrow when they can come back. mittee meetings, but they said they for 50 years to try to keep other indus- Under the unanimous consent agree- wanted to come back in order to make tries out of their individual portion of ment, at the end of the Sarbanes an opening statement. We want to try the financial services industry, these amendment, I, or my designee, would to accommodate our colleagues in that three great economic forces in the be recognized to offer two amendments. regard. American economy—the insurance in- Those amendments will be offered and On the vote schedule, I think we will dustry, the banking industry, and the debated. And then, depending on where have to work that out on the basis of securities industry—have basically we are in terms of our colleagues com- the people who are away, so that we concluded that they would be better off ing back from their States that have can accommodate everyone in terms of in terms of an open field of competi- had the natural disasters, we would being able to vote, which I assume will tion and greater able to meet the needs begin the voting process. be sometime tomorrow, as I understand of their consumers if we simply took The final part of the unanimous con- it. down these barriers. sent agreement would be a fourth Mr. GRAMM. Mr. President, I think Also students of this problem—no amendment that Senator SARBANES, or that is right. Some time between noon matter what their persuasion within his designee, would offer, and that and 4 o’clock is the word that I re- limits at the beginning of the debate— would be an amendment that would ceived. have concluded that the instability strike the CRA provisions of the com- Mr. SARBANES. We will have to dis- that exists in allowing these walls that mittee bill and insert the provisions re- cuss that, because I think we may have divide these three major financial in- lated to CRA, which are in the Sar- a little problem with that. We may dustries to continue to stand, knowing banes substitute. That would get us need to extend that a little bit. that these walls have, because of the four amendments into the process, and Mr. GRAMM. I don’t see any reason holes in them, produced this instability we would then begin the normal debate why we can’t accommodate each other. and produced an unstable structure in process where the floor would be open We want to have a full debate. Much of many cases—the basic conclusion has to those who seek recognition. the essence of the differences that exist been reached by virtually everyone en- I know that it is the hope of our lead- are embodied in the first and fourth gaged in the debate that we would be ership that we would finish the bill this amendments. I think having a full de- better off to take down these barriers week. I don’t see any reason that we bate is what we should do. I think it is than to leave them standing as they can’t do that. Let me say, as we begin important that people understand the are. The debate today is not about the this debate, I am willing to stay here issues, and I can certainly say, from changes that we make in the name of late at night, through the night, if we my point of view, I think the better financial services modernization. need to in order to have a full debate people understand these issues, the bet- That is why I believe and hope that on these issues. I think we all recog- ter off we are. in the end we can reach a consensus nize that under the Senate rules every- We are here to debate the most im- where at least 51 Members of the Sen- body gets to have their say. Everybody portant banking bill in 60 years today. ate—hopefully more—will vote for the gets an opportunity to offer amend- This bill would dramatically change final product of this deliberation. S4618 CONGRESSIONAL RECORD — SENATE May 4, 1999 What we are debating is not about tance. One issue that has taken on very issues, because, as Thomas Jefferson what changes are to be made, but how great importance in this bill is commu- observed long ago, good men with good to make those changes. That really in- nity reinvestment. I will talk more intentions in a free society often reach volves basically two areas, and they about this later when we turn to these different conclusions. When that hap- will be the focal point of this debate. two areas of dispute. pens, the best we can do is to simply The first area is the question of But let me say the real question here plow ahead. And that is what we are where these new financial services boils down to this simple question: doing here. should be provided. Should these new Should we have a massive expansion in Let me try to run through very financial services be provided within CRA and CRA enforcement and with it quickly what I believe are the major the bank itself, within the legal struc- a massive expansion in regulatory bur- elements in the Financial Services ture of the bank, and what capital that den, or should we reform the existing Modernization Act of 1999 as reported is invested in these new parts of the fi- program to try to eliminate the grow- by the Senate Banking Committee. nancial services industry will count as ing abuse that is occurring in that pro- First, this bill repeals Glass-Steagall. the capital of the bank itself? Or gram and the growing regulatory bur- It knocks down the barriers between should these new financial services be den that exists in that program? insurance and banking and between se- provided by affiliates of holding com- That will be the second major issue curities and banking. It chooses to do panies outside the bank? that we will deal with as part of this this for the vast majority of the capital This is a fundamentally important bill. in the banking industry through affili- question. It is a question where we Before I turn to a discussion about ates of bank holding companies. This have great differences of opinion. It is what the underlying committee bill bill makes the decision that it is un- a question that the Chairman of the does, I just want to say a few words of wise and dangerous to allow large Federal Reserve Board, Alan Green- thanks to people that have been impor- banks to provide these expanded serv- span, believes is so important that he tant in putting this bill together. ices within the structure of the bank has said in testimony before the House I first want to thank Senator BRYAN itself. Commerce Committee that if we had a and Senator JOHNSON for their help in The majority of the members of the bill that allowed banks to provide committee in making many elements committee concluded that Chairman these expanded services within the of this bill a bipartisan bill. Greenspan is right, that there are bank itself, that bill would be so dan- I joined with Senator BRYAN to adopt strong safety and soundness arguments gerous in terms of providing an unlevel a provision related to how banks would against allowing banks to provide playing surface—in terms of encour- sell insurance. these expanded services within the aging artificially the concentration of I thank Senator JOHNSON from South structure of the bank itself and that securities products being sold and serv- Dakota, who joined with Senator SHEL- this endangers the taxpayer through iced inside the bank—and the safety BY in supporting an amendment to ex- the Federal Deposit Insurance Corpora- and soundness dangers with the Fed- empt very small rural banks from the tion. eral Deposit Insurance Corporation regulatory burden of CRA. Additionally, the majority of the would be so great, that he and every I think the action by these two Sen- members of the committee were con- member of the Board of Governors of ators really set a standard that we vinced that to give banks the ability to the Federal Reserve Board have taken ought to work to meet in the rest of sell these financial products within the a position that it would be better to this bill. structure of the bank, and therefore to pass no financial services moderniza- I thank my Republican colleagues give them the ability to internalize the tion than to undertake to allow banks who sat through many long seminars inherent subsidies that are built into to provide these new services within on financial services modernization, FDIC insurance, plus the ability of the bank itself. for lack of a better term. I thank them banks to borrow from the Fed window The White House and the Treasury for doing this with a minimum of com- at the lowest interest rates in the have taken exactly the opposite posi- plaint. I think the net result is that by country and use the Fed wire, that tion—they favor a bill where banks can and large the Republican members of these implicit subsidies—which the provide these services within the legal the Banking Committee understand Federal Reserve Board has estimated structure of the bank. this issue better than we did when this It is my understanding—I have not to be as high as 12 basis points—would issue was discussed last year. I think seen it, but it is my understanding— be big enough to assure over time to that we have another veto threat from the net result is that we have a better virtually guarantee a massive degree of the President. The number of items the bill. economic concentration, concentration I would like to thank all of my staff President is threatening to veto has whereby banks would end up domi- grown, and now we have gone from four on the majority side of the committee. nating these markets—not because items in his first letter to six items, But I especially want to thank our they are more inherently efficient but some of which, it is my understanding, staff director, Wayne Abernathy, our because they would have the advantage would also apply to the Sarbanes sub- chief counsel, Linda Lord, and our fi- of the subsidies that come from under- stitute and to the House bill, further nancial economist, Steve McMillin, for taking these provisions within the raising some question about the admin- all the work they have done on this bill bank. istration’s degree of seriousness about and the work that they have done to This view was very broadly held last this bill. make the bill better. year. Senator SARBANES, in the bill he That is our first issue. Should banks Finally, let me just express a regret. supported, supported this position last provide the new expanded financial I regret that I have not done a better year. This was the position of the services within the structure of the job in working with Senator SARBANES. House bill last year. Now we have a de- bank itself, or should they be forced to We have had a difficult time in work- bate as to whether or not the Congress, take capital out of the bank and invest ing together to forge a bipartisan bill. the Senate committee and the House it through their holding company in Some of this is inevitable, I think. itself, should reverse its position. This these separate and independent entities Some of it is not. I just want to say is not a partisan issue. I don’t know that, while affiliated with the bank that my inability to work with Senator how the votes are going to fall, and I holding company, will be independent SARBANES on this bill is something know partisanship has really entered of the bank? that I regret. I have the highest regard into this area. Historically, on issues That is probably the most important for his intellect and his sincerity on like this there has been a great divi- issue that we will vote on. I will say these issues. And while he and I do not sion on a bipartisan basis. more about it later in my opening agree on many of these issues, I don’t Congressman JOHN DINGELL, who is statement. You will hear a lot more doubt for a moment that he under- the ranking Democrat on the House about it as we get further into the de- stands the issues and he is sincere Commerce Committee that has joint bate. about the position he has taken. jurisdiction on this issue, has taken a Inevitably in a big bill like this, sub- I think that is one of the reasons it is very strong position that he will op- sidiary issues take on great impor- very hard to work out some of these pose the bill if banks are allowed to May 4, 1999 CONGRESSIONAL RECORD — SENATE S4619 provide these services within the struc- We have a very strong provision to lion of assets. These are banks that ture of the bank itself. It is clear that protect these small banks, and basi- often have between 6 and 10 employees. the House Commerce Committee is cally have the preemptive provision And these are banks that are outside going to take the position of the Sen- that if a bank is providing the service standard metropolitan areas. I will ate bill. This is clearly a very impor- in a trust department today that they talk more in a minute about the regu- tant issue. cannot be required to set up a separate latory burden that is imposed by CRA An effort was made in the Senate entity to conduct those same services. on these very small banks, but since Banking Committee to try to reach a We have two CRA provisions in the many figures have been used by people compromise on this issue, to let very bill. The first provision has to do with who have been critical of this proposal, small banks that in general are not big integrity. It is a very simple provision. let me say that while 38 percent of the enough to operate holding companies Unfortunately, in this debate one of banks and S&Ls in America are very efficiently, yet might in a very small my great frustrations is that many small, rural institutions, together they way want to get into other financial people don’t want to debate the issue have only 2.7 percent of the capital services such as securities and insur- before the Senate. As almost always that is contained in our banking sys- ance—we set out a dividing line of $1 happens in these cases, especially when tem nationwide. The basic argument billion of assets and below for smaller you have an emotionally charged issue, here, which has strong roots in existing banks that together when added up people change the subject; they set up banking law and which is supported, to comprise about 18 percent of the cap- straw men and knock them down. ital of our banking system, that we Let me make it clear that nothing in some degree on a bipartisan basis, is would allow them to use operating sub- this bill in any way repeals CRA. This that these very small, very rural banks sidiaries, but with special accounting bill, as reported by the Senate Banking that do not have a city to serve, in rules so they could expand services and Committee, does two things in CRA. most cases, much less an inner city, not be precluded from the activity First, it has an integrity provision should not have massive regulatory based on their size. However, we re- which says if banks have historically burden imposed on them through CRA. quire any bank with assets over $1 bil- been in compliance with CRA, if in The next provision of the bill is that lion or that has a holding company to their annual evaluations they have we eliminate the SAIF special reserve use subsidiaries of holding companies been found to be in compliance not fund, allowing that money to go into so that these services are provided out- once, not twice, but three times in a the SAIF itself. side the bank. row, if they are currently in compli- We cut off the unitary thrift holding We allow banks to underwrite munic- ance, then if protest groups or objec- company provision. This is a con- ipal revenue bonds. We follow func- tors want to come in and object to a troversial issue. It will be debated. Let tional regulations so that whatever in- bank action, then objector or protester me just give a brief summary of the dustry you are in, no matter what has to present some substantial evi- thinking of the majority of the mem- name is on your marquee, and no mat- dence to suggest that the bank—which bers of the Banking Committee on this ter what business it is associated with, has been in compliance 3 years in a row issue. Current law permits commercial you will be regulated by the regulators and is currently deemed to be in com- companies to own an S&L. This is who regulate that particular type of pliance—is out of compliance. activity. We make a strong effort to re- As I will discuss in just a moment, called a unitary thrift, and a decision duce regulatory burden and streamline we have a long history of case law as it was made in our bill to end this provi- the process by giving the Federal Re- relates to what ‘‘substantial evidence’’ sion. serve Board the umbrella supervisory means. But that is the first require- So, then the question is what are you ability but requiring them in most in- ment. It is simply an integrity require- going to do about commercial entities stances to use the audits of other agen- ment. It says that if you are in compli- that already own S&Ls? The decision cies. ance with CRA and you have a long we made was to cut off, effective as of The committee bill takes a very history of being in compliance, some- the date that we introduced the com- strong position in reaffirming the one can’t rush in at the last minute on mittee mark, any further applications State regulation of the insurance busi- a major bank merger, where hundreds for a commercial company to own an ness. We reaffirm that McCarran-Fer- of millions of dollars are at stake, and S&L, so that all of those applications guson is the law of the land, and we re- say they want to undertake a merger which were filed prior to that date can quire that any institution that is sell- and file a protest saying that these two be evaluated by the Federal regulator, ing insurance in any State comply with banks are racist or these two banks are but no new applications would be al- the licensing requirements of that loan sharks. These are words that have lowed. State. Our requirement on the State is been used by people who filed these There is a second question as to simply that they have nondiscrim- protests—without presenting one scin- whether we should go so far as to limit inatory requirements. tilla of evidence. In fact, one of the We expand the resolution process, the ability of commercial entities that definitions of substantial evidence is already have thrifts to sell their thrift knowing that in the future there will ‘‘more than a single scintilla of evi- be debate about what products are in- to another commercial interest. The dence.’’ majority of the members of the Bank- surance products or banking products So this amendment simply says, if ing Committee concluded that we or securities products. We have a reso- you are going to try to prevent a bank could go as far as not allowing any new lution process. Then we give equal from doing something that it has been standing to the contesting regulators certified historically on a continuing entities to come into existence. But an before the court. We go to extra basis as being in compliance to do, you ex post facto law that goes back and lengths to protect small banks and have to present some substantial evi- changes the rules that thrifts operate their trust departments. dence to suggest that all these evalua- on, after people have already invested Between 15 percent and 20 percent of tions have been wrong or that some- their money—many of these entities the income of many small banks comes thing has happened since the last eval- came in and made investments of hard from trust departments. There is a uation. money during the S&L crisis; many of very real concern that banks which are I do not understand, personally, why these commercial entities were encour- providing trust functions that might anyone would object to that amend- aged to invest this money and in doing never get into financial services mod- ment. We already require in case law so they saved the taxpayer literally ernization, that might never open up a that the decisions of administrators at billions of dollars—and to come in now securities affiliate or op-sub could find the Federal level be based on substan- and say not only are we not going to themselves regulated by the Securities tial evidence. So we are really requir- allow any more unitary thrifts to come and Exchange Commission and have a ing by statute what is already required into existence, something that this bill dual regulatory burden, are being under case law, and I will talk about supports, but we are going to limit forced to set up an op-sub or set up a that a little more in just a moment. what you can do with the thrift you al- subsidiary simply to continue to do the Our second amendment exempts very ready have, we believe that runs afoul same things in their trust department small, rural banks from CRA. These of the takings provision of the fifth that they have always done. are banks that have less than $100 mil- amendment of the Constitution. S4620 CONGRESSIONAL RECORD — SENATE May 4, 1999 We think it is very important to be fore the House Commerce Committee. this in perspective, that is bigger than aware of that conflict with the Con- ‘‘I and my colleagues’’—and by ‘‘col- the gross domestic product of Canada. stitution because recently savings and leagues’’ he means every member of It is bigger than the combined assets of loans have filed suit against the Fed- the Board of Governors of the Federal General Motors, Ford, and Chrysler. It eral Government based on another bill, Reserve Board. I want to remind our is bigger than the total discretionary FIRREA, where Congress, on an ex post colleagues, meaning Senators, that Federal budget of the U.S. Govern- facto basis, went back and took back most of those members of the Federal ment. provisions when these companies en- Reserve Board were appointed by Bill Especially troubling is the $9 billion tered into a contract with the Federal Clinton, by this President. Chairman of cash payments which have been Government. And we are now told, Greenspan said: made as part of CRA agreements. based on a ruling by the Supreme I and my colleagues accordingly are firmly In 1977, nobody ever contemplated Court, that we can expect billions of of the view that the long-term stability of that under a requirement of law which dollars of payments to these S&Ls be- U.S. financial markets and the interest of required banks to meet credit needs of cause the Federal Government has the American taxpayer would be better the communities where they collected breached its contract. We have set out served by no financial services moderniza- deposits that someday banks would pay a line that we are not willing to go tion bill, rather than one that allows the out and commit $9 billion of cash pay- proposed new activities to be conducted by ments as part of this process. over, and that line is we are not willing the bank as proposed in H.R. 10. to violate the Constitution. Let me explain these cash payments: We have provisions that allow com- And I would say in the Sarbanes- As part of every CRA agreement we munity banks of less than $500 million Daschle substitute. have been able to obtain, there is a re- to be members of and to use the Fed- In other words, every member of the quirement that the banks pay cash to eral Home Loan Bank. We also allow Board of Governors of the Federal Re- individual protesters and protest them to use small business, small farm serve Board says that for the safety of groups, in return for which they gen- and small agriculture lending as collat- the taxpayer in FDIC insurance, and erally sign an agreement that they will eral for loans, and we believe this will for the general competitiveness of the withdraw their objection to the banks improve the liquidity of small banks economy, if we had a choice between taking the activity which they ob- and their ability to serve their commu- letting banks provide these broad serv- jected to. Our provisions relating to CRA are nities. ices within the bank or having no bill very simple. Let me begin with the in- We have a 3-year freeze on existing at all, they unanimously would prefer tegrity provision. FICO assessment. We are discussing having no bill rather than doing it the Under current law—or under current this issue at great length, but basically wrong way, as they concluded. Greenspan goes on to say that allow- practice, because the law is a very gen- when we made a decision to move the eral law—it is possible for a protest two insurance rates to the same level, ing these services to be provided within the bank ‘‘leads to greater risks for the group, say, in Boston to protest a bank there was also a discussion about merg- merger in Illinois and, in essence, not ing the two insurance funds. But Con- deposit insurance funds and for the taxpayer.’’ go away until its ‘‘expenses’’ in a cash gress never acted on that issue. The payment to it are made. majority of the members of the com- Secondly, John Dingell, long-time chairman of the House Commerce Com- It has now become fairly common for mittee in our underlying bill believed protest groups from one State or re- mittee and, in the minds of many, the there ought to be a discussion about gion to protest bank actions in another most influential Democrat in the that issue and that we ought to make State or region, entering into the proc- House of Representatives, has said a decision on that issue. ess to file a complaint or to threaten a that, ‘‘absent significant changes in Finally, in terms of the bill itself, we complaint. But often official com- H.R. 10’’—that is, the House bill, and mandate a major GAO study of sub- plaints are not filed. You are going to the same provisions are in the Sar- chapter S corporations that are en- hear figures about there being com- banes substitute—‘‘that I will be com- gaged in the banking business as a first plaints in only 1 percent of the bank pelled to oppose this bill with every bit step toward changing the way we tax applications. Remember, most applica- of strength I have.’’ very small banks. Many of our col- tions are only to close or open a leagues will remember that last year So this is a very important issue and branch. The big applications are merg- we were able to allow small banks with an issue which we will vote on as part er applications, and one of the reasons fewer than 75 shareholders to be taxed of the general substitute that will be we have had an explosion in CRA and as individuals under subchapter S. We voted on first, and then perhaps we will the cash payments in the last 6 years is are now trying to expand that out to vote on again. from these mergers. 150 shareholders. This is a very impor- Let me turn to a discussion of CRA. None of these agreements is public— tant provision for small banks. Most people think of the Community every agreement we have seen, and we Let me review briefly the two major Reinvestment Act as being a very now have three that I have read, and issues of contention in the bill. Oper- small program. And it was a very small we are getting more every day—every ating subs versus affiliates; Chairman program until 1992. one of them requires the bank to keep Greenspan and all former living Chair- In 1977, Senator Proxmire put a little the agreement private, so no one men of the Federal Reserve Board and provision in a housing bill that nomi- knows what percentage of the face most former Secretaries of the Treas- nally required banks to make loans in value of the loan goes to the commu- ury have argued that it is unwise and the communities where they collected nity group in a cash payment. No one dangerous to let banks provide these deposits. A North Carolina Democrat knows how much in direct payments broad financial services within the objected to the provision. There was a occurs. No one knows how much the structure of the bank itself; that they vote to strip it out of the bill, and the community group collects in classes, should be required to separate securi- vote failed on a 7–7 tie. This so-called say, that it makes the borrowers go to ties, separate insurance, separate these CRA provision went on to become the and then pay it cash money. other industries from the capital of the law of the country and became far But basically our first amendment bank itself because the bank is insured more important than the bill to which tries to deal with the following prob- by the American taxpayer. So the first it was attached. lem: The last-minute protest, or where argument is a safety and soundness ar- Prior to 1992, if you added up all the the protester does not file with the gument. The second argument is that CRA agreements and all the bank cap- Comptroller of the Currency but sim- the implicit subsidies to banks will ital allocated by the CRA require- ply goes to the bank in question and give them an unfair advantage in pro- ments, these provisions had allocated says, ‘‘Look, I’m going to file this com- viding these services if they are al- only about $42 billion worth of capital. plaint. Here is a letter that I’m going lowed to do them within the bank. Today, 6 years later, CRA is allo- to send to the Comptroller of the Cur- I just want to read a couple of quotes cating $694 billion in 1 year. That is rency calling you a racist and calling from Alan Greenspan. This is Alan loans, that is commitments to lend, you a loan shark. And these are the Greenspan in his April 28 testimony be- and that is hard cash payments. To put protests that I’m going to hold in these May 4, 1999 CONGRESSIONAL RECORD — SENATE S4621 various locations. And I wanted to see, lators say it is in compliance right banks and S&Ls have been deemed to before I did all this stuff, if you were now, all you have to do is present more be out of compliance. That is, 3/100 of 1 willing to ‘comply’ with the law.’’ than a mere scintilla of evidence that percent of the evaluations have turned Basically what is happening in these in fact the bank is not in compliance. up just three small banks and small cases is, there is immense pressure on Now, what is onerous about that? In S&Ls in rural areas that are out of the bank to make a cash payment or to fact, should we have a procedure in a compliance. enter into some kind of agreement in free society where professional pro- In return for having turned up 3 sup- order to be able to move forward on testers, without presenting a mere posed bad actors, you have had 16,380 their merger. scintilla of evidence, can literally hold evaluations, 40 percent of the entire en- Here is what our amendment says. If up institutions and potentially impose forcement mechanism for CRA. What I a bank has been in compliance with hundreds of millions of dollars of costs do not understand is why CRA advo- CRA—the bank has been evaluated by on them and their customers without cates don’t want to take that enforce- any of the Federal regulators who have presenting a scintilla of evidence? Who ment and put it where the money is, in jurisdiction to come to the bank, could be against that proposal? the urban areas and in the big banks. evaluate it, review its records, and de- A second definition defined in case I have numerous letters—and I will termine that it is complying with law and in statute is, such relevant evi- read some of them—from small bank- CRA—if the bank has complied 3 years dence as a reasonable mind might—it ers, several of whom have been Federal in a row, and if it is currently in com- doesn’t say ‘‘has to’’—accept as ade- regulators enforcing these very laws in pliance, then a protester is not pre- quate to support a claim; real, mate- the past, outlining how hard it is for cluded from protesting. You are going rial, not seeming or imaginary; consid- them to comply with these regulations to hear some people say this is a safe erable in amount, value, and worth. and that they are already lending to harbor. It is not a safe harbor. Legally, So I ask my colleagues and anybody everybody in town just to stay in busi- it is a rebuttable presumption. The who might be interested in this debate, ness. These are very small commu- bank is assumed to be in compliance if is it unreasonable for a bank which has nities, and they have a very small lend- it has been in compliance three times historically been in compliance with ing base. in a row and is deemed by its regu- the CRA law, has been meeting the re- Now, I have spent a lot of time going lators in compliance now, unless the quirements as judged by the regulators through these issues, but I think they protester or protest group can present who have responsibility for judging, are important issues. I look forward to substantial evidence of noncompliance. having been in compliance 3 years in a debating this issue. I hope we can pass Now, what does ‘‘substantial evi- row, being in compliance now, if some- a good bill. I agree with Alan Green- dence’’ mean and where does the term body wants to come in and prevent span and I agree with every one of the come from? Substantial evidence is ref- them from doing things which the reg- Board of Governors of the Federal Re- erenced 900 times in the United States ulator has already judged in their last serve Board, however, on one point: It Code. It is probably the best defined evaluation that at least as of that is better to have no bill than to have a legal term in the American system of point they were in compliance with the bad bill. jurisprudence. There have been 400 law to allow them to do that, is it un- I want a bill that is going to promote major cases defining what substantial reasonable to ask that they present at competition, not reduce it. I want a evidence means. least one scintilla of evidence, that bill that is going to reduce regulation Title 5 of the United States Code re- they present evidence that a reason- and redtape and cost, not increase it. I lating to administrative law—that is, able mind might accept as adequate to want a bill that is going to expand fi- how agencies function—already re- support a claim, that their evidence be nancial services, not reduce them. I quires that agency action be based real, material and not seeming or want a bill that is going to lower the upon substantial evidence, not on arbi- imaginary, or that it be considerable in costs of financial services, not increase trary or capricious action. So the re- amount, value, and worth? How could them. I believe we have such a bill be- ality is, it is already the law that bank anyone think that standard is too fore the Senate. regulators should be using this stand- high? I hope my colleagues will listen very ard right now for evaluating CRA. In The second issue related to CRA has carefully to the debate. I hope they fact, all banking laws and procedures to do with small banks. Small banks in will enter it with open, not necessarily and the judicial review of all banking rural areas have a very small percent- empty, minds. I think if they listen to laws and all banking procedures use age of the capital that is available in the two major issues we are going to one standard—substantial evidence. the American banking system—about debate—and those issues are: Should Now, what does substantial evidence 2.7 percent. But I think of greater im- banks provide these expanded services mean? I have a good counsel, and she portance is the following figure, and I within a bank, or should they have to has gone back and researched all these think it proves one thing conclusively: provide it outside the bank struc- 900 laws and all of these court rulings. Small banks in communities that are ture?—and as they listen to the issue Here is what substantial evidence outside metropolitan areas—that is, about whether or not we want integrity means. In order for a protester to stop generally don’t even have a city much and relevance in CRA, which has be- a bank merger or have its protest be- less an inner city—are doing an excel- come, now, the largest program under- come a formal part of the consider- lent job of serving their communities. taken by the Federal Government, if ation for a bank application, the pro- Since 1990, there have been 16,380 measured against direct government tester must present substantial evi- CRA exams on small, rural banks. spending. dence that the bank is either not in Many of the small bankers from all It seems to me that the conclusions compliance or won’t be in compliance over America who have written the they will reach are obvious, and in after its action. Banking Committee have estimated reaching those conclusions we will Now, what does substantial evidence that CRA compliance costs them about have the additional benefit of passing a mean? It means ‘‘more than a mere $60- to $80,000 a year. They have to bill that will expand financial services scintilla.’’ In other words, you have a name a CRA compliance officer. Many and reduce costs. I thank my col- bank that is engaged in a transaction of these banks have between 6 and 10 leagues for their patience. where it could literally lose $100 mil- employees. By the time they do all the I yield the floor. lion a day by being unable to consum- paperwork and comply with all of the Mr. SARBANES addressed the Chair. mate its agreement, and the standard regulations, by the time they name a The PRESIDING OFFICER. The that we require for you as an indi- CRA compliance officer—normally that Chair recognizes the Senator from vidual to come in and throw a rock in is the president of the bank—they are Maryland. the gear and potentially stop this having to pay between $60- and $80,000 a Mr. SARBANES. Mr. President, for whole process is that you have to year to comply. Sixteen thousand, the fourth time in 11 years, the Senate present more than a mere scintilla of three hundred and eighty of them have is debating legislation to modernize evidence that this bank, with a long been examined for CRA compliance the structure of the financial services history of compliance, where the regu- since 1990, and only three small rural industry. We are addressing this issue S4622 CONGRESSIONAL RECORD — SENATE May 4, 1999 because we want our financial services credit for all communities in our coun- I will veto the financial services moderniza- statutes to keep pace with forces that try, protecting consumers, and main- tion act if it is presented to me in its current are changing the financial market- taining the separation of banking and form. place, forces such as globalization, commerce. I ask unanimous consent that the technological change, and the develop- Before this year, the efforts of the President’s letter be printed in the ment of new products. Banking Committee to modernize fi- RECORD at the conclusion of my re- Many experts agree that the time has nancial services,—in other words, tak- marks. come to allow affiliations between ing earlier efforts to which I referred, The PRESIDING OFFICER (Mr. banks, securities firms, and insurance in which we moved legislation out and, ENZI). Without objection, it is so or- companies; in other words, those actors on occasion, even moved it through the dered. within the financial services industry Senate, but weren’t able to get it (See Exhibit 1.) that heretofore have been kept sepa- passed in the House—those efforts Mr. SARBANES. Mr. President, the rate by existing statutes—although were, in each instance, bipartisan ef- administration has also just submitted those statutes have, to some extent, forts. We reported legislation with sup- a Statement of Administration Policy, been eroded either by regulatory deci- port from both sides of the aisle. That which starts out: sions or by court decisions. It is, there- effort, of course, earlier on, and cer- The Administration strongly opposes S. fore, felt that financial services mod- tainly last year, reflected compromises 900, which would revise laws governing the ernization legislation would be useful financial services industry. This Administra- among Committee members and among tion has been a strong proponent of financial in helping to set the structure within industry groups on a wide range of modernization legislation that would best which financial institutions are to op- issues and, in fact, last year’s bill was serve the interests of consumers, businesses, erate, to provide a certainty and a sta- not opposed by a single major financial and communities, while protecting the safe- bility that is now missing under the ex- services industry association. ty and soundness of our financial system. isting arrangements, and which is not Now, this year, the consensus so Consequently, it supports the bill’s repeal of altogether clear along the borderline of carefully developed last year has been the Glass-Steagall Act’s prohibition on what activities are permitted and what abandoned. That decision, of course, banks affiliating with securities firms and of the Bank Holding Company Act’s prohibi- activities are not permitted. has made this bill a controversial one Now, we have not only no objection, tions on insurance underwriting. Neverthe- and has led to opposition to it. As I in- less, because of crucial flaws in the bill, the we are supportive of the effort to allow dicated, all of the Members on this side President has stated that, if the bill were these affiliations to take place within of the aisle in the Committee opposed presented to him in its current form, he the financial services industry. There- the Committee bill. Some financial in- would veto it. fore, we are anxious to obtain the en- dustry groups oppose aspects of the And then it enumerates their con- actment of financial services mod- Committee bill. Civil rights groups, cerns with the bill, most of which re- ernization legislation. However, it is community groups, consumer organiza- peat the points made in the President’s important, in the course of doing that, tions, and local government officials letter to the Committee of March 2. that we achieve or preserve certain im- also strongly oppose the Committee Mr. President, I ask unanimous con- portant goals: obviously, the safety bill, especially with respect to the sent that this Statement of Adminis- and soundness of the financial system; Community Reinvestment Act provi- tration Policy be printed in the the continuing access to credit for all sion, which is an extremely important RECORD at the conclusion of my re- communities in our country; pro- issue, as Members are well aware. marks, and following the letter from tecting consumers, who, after all, are Lastly, let me note, because it is the President to the Committee. Mr. and Mrs. America. We are con- highly relevant to the process in which The PRESIDING OFFICER. Without cerned that in this effort to create a we find ourselves, that the White objection, it is so ordered. new structure we don’t lose sight of the House—the President himself—strong- (See Exhibit 2.) very specific problems that relate to ly opposes this legislation. The Presi- Mr. SARBANES. Mr. President, my the ordinary American with respect to dent sent a letter to the Committee at colleague from Texas, the chairman of credit; and finally, maintaining the the time of the markup, saying: the Committee, indicated in his re- separation of banking and commerce. This administration has been a strong pro- marks that he had doubts about the ad- There are some who would like to cross ponent of financial legislation that would re- ministration’s seriousness about the that line as well, but we think that duce costs and increase access to financial bill. I don’t quite know where those would be a great mistake to do that. services for consumers, businesses and com- doubts come from. But let me simply Now, just a little bit of history here. munities. Nevertheless, we cannot support say that I don’t think they could be Last year, every Democratic member the Financial Services Modernization Act of more serious about it than they have of the Senate Banking Committee 1999, as currently proposed by Chairman indicated, and I know the very strong voted for financial services moderniza- GRAMM, now pending before the Senate feeling that the Secretary of Treasury Banking Committee. tion in the form of what was then re- and indeed the President hold on a ferred to as H.R. 10, the Financial Serv- They then go on to indicate their dif- number of these issues that we are de- ices Act of 1998. That bill was reported ficulties with the Community Rein- bating here and seeking to try to re- by the Senate Banking Committee on a vestment Act provisions, noting that: solve on the floor of the U.S. Senate. bipartisan vote of 16–2. So there was a It is a law that has helped to build homes, We have this situation where it is joint bipartisan effort last year, to try create jobs and restore hopes in communities clear that unless these concerns enu- to obtain enactment of financial serv- across America. merated and expressed by the Presi- ices modernization legislation, which They reference that: dent are resolved in a favorable way we didn’t prove out—unfortunately, in my The bill would deny financial services are heading down a path towards a view. firms the freedom to organize themselves in veto. That doesn’t seem to me to be the Now, this year, unfortunately, the the way that best serves their customers, most constructive or productive path bill brought out of the Committee was prohibits a structure with proven advantages on which to proceed in terms of trying on a vote of 11–9, a straight party vote, for safety and soundness, which is the op-sub to enact legislation. which I regret. I particularly regret affiliate issue. The bill would provide inadequate con- The Democratic Members of the that, since last year we were able to sumer protections and, finally, the bill could Banking Committee have joined with bring a bill out on a 16–2 vote, which, in expand the ability of depository institutions Senator DASCHLE in introducing Senate effect, was a very strong bipartisan and non-financial firms to affiliate at a time bill 753, the Financial Services Act of statement. That obviously raises the when experience around the world suggests 1999. That bill largely encompasses the question: Why this dramatic change the need for caution in this area. compromises that were developed last from last year to this year? I think, The President concludes that letter year in the bipartisan legislation. very simply, it is because the bill by saying: It differs in one important respect, brought to the Senate now, S. 900, does I agree that reform of the laws governing and that is with respect to the bank not meet the important goals that I set our Nation’s financial services industry operating subsidiary provisions. I will out earlier of continuing access to would promote the public interest. However, discuss those in a little more detail May 4, 1999 CONGRESSIONAL RECORD — SENATE S4623 shortly. But that alternative which re- that an amendment specifically di- being tossed around by the chairman flects essentially last year’s bipartisan rected to CRA will be in order as fourth reflect commitments made by the in- agreement will be offered as an amend- in the line. stitutions over an extended period of ment in a the nature of a substitute to We set out this order just for the time and not what is going to take S. 900. first four amendments in an effort to place this year. That in fact will be the first amend- structure at least the outset of the CRA has significantly improved the ment that will be offered. And obvi- consideration of this very important availability of credit in historically ously we expect to do that at the con- legislation. underserved communities. There are clusion of opening statements when I share the chairman’s perception Members have had an opportunity to that this is very important legislation. any number of success stories. Obvi- make their opening statements. We ex- It is an issue we have wrestled with for ously, we will address those when we pect them to go to the alternative, and many years. It pertains to the work- turn to the specific CRA amendment. we will discuss it obviously in some de- ings of our financial services industry, Let me just simply point out that CRA tail. It is I think a very important pro- which in turn, of course, pertains to has been credited with a dramatic in- posal. the workings of our economy and our crease in homeownership by low- and If in fact the alternative were sub- position in the international economic moderate-income individuals. Between stituted for the bill we would be well scene. These are important matters to 1993 and 1997, private sector home on the way to getting legislation en- which we are addressing ourselves. mortgage lending and low- and mod- acted into law, because it would re- I echo the chairman’s hope that erate-income census tracks increased move the veto threat at the end of this Members will pay close attention. I as- by 45 percent. CRA has helped spur path and would in effect put the Senate sume that Members will pay close at- community economic development. essentially in the same ballpark, al- tention, and that they will come to it The number of loans for small business though not exactly, with where the with an open mind as they weigh the in low- and moderate-income areas has House Banking Committee was when it various considerations that are before increased substantially. reported out, on a vote of 51 to 8, a bi- us. Now, the chairman says there has partisan piece of legislation. Let me turn to the CRA provisions. Let me first say that the Community been this sharp increase in the amount It is quite true that bill now has to of commitments. That is true, but go through the House Commerce Com- Reinvestment Act, in the judgment of most objective observers, has played a there has been a very sharp increase in mittee because of the division of juris- the amount of mergers and acquisi- diction on the House side, and presum- critical role in expanding access to tions which helped to trigger the CRA ably differences between how the House credit and investment in low- and mod- process. There has been a more recep- Commerce Committee sees issues and erate-income communities. We think it tive attitude toward CRA on the part how the House Banking Committee has has been of critical importance in proof the regulatory agencies. In fact, reg- seen them will have to be resolved on viding access to credit, which very the floor of the House of Representa- frankly is, in today’s context when we ulatory agencies, community groups, tives. talk about civil rights in terms of eco- local and State elected officials and But at this stage, the first step, what nomic opportunity, a very important many bankers agree that CRA has been the House Banking Committee has aspect of civil rights. beneficial. Chairman Greenspan speci- done—I underscore score again on a In 1977, the CRA was enacted to en- fied that ‘‘CRA has very significantly very strong 51 to 8 vote, an over- courage banks and thrifts to serve the increased the amount of credit in com- whelming bipartisan endorsement— credit needs of their entire commu- munities,’’ that the changes have been parallels, is very similar, to what is nities. Consistent with safe and sound ‘‘quite profound.’’ contained in the alternative that we banking practices, banks and thrifts The U.S. Conference of Mayors has will be offering as an amendment as a must serve not just upper-income areas promoted CRA as an essential tool in substitute for the bill that is now be- but low- and moderate-income neigh- revitalizing cities, while the National fore us. borhoods, as well. CRA reflect the view League of Cities has listed CRA preser- Let me turn to the bill that is now that banks and thrifts receive public vation as a major Federal priority for before us with special emphasis on its benefits such as deposit insurance, ac- 1999. differences from the Committee recess to the Federal Reserve discount ported bill last year with the 16 to 2 window and the Federal Reserve pay- Bankers have been able to work with vote that we had in the Committee. ment system, that they draw deposits CRA, made it very effective and devel- It is important I think to try to de- out of these communities and that oped new relationships with their com- velop a consensus on these issues. The they have a responsibility to make munities. As a consequence, the chair- Committee in the past has essentially loans into the communities in order to man and CEO of BankAmerica, Hugh worked in a nonpartisan way. We have serve the entire community. McColl, stated earlier this year, divisions within the Committee but In fact, the loan-to-deposit ratio is My company supports the Community Re- they have not usually been on a often an important standard to meas- investment Act in spirit and in fact. To be straight party basis. ure the extent to which the institu- candid, we have gone way beyond its require- I share the regret expressed by the tions drawing deposits out of the comments. chairman that we have not been able to munity are providing a flow of credit CRA has accomplished these goals by work this matter out this year in a back into those communities. encouraging banks and thrifts to make Now, my colleague, the chairman of way to avoid these sharp party dif- profitable market rate loans and in- the Committee, has talked about these ferences. But the failure to do so re- vestments. Chairman Greenspan noted lates back directly to these very crit- very large amounts of money that have last year that there is no evidence that ical issues that are at stake. These been committed for community rein- banks’ safety and soundness have been were issues on which last year we were vestment purposes. First of all, let me compromised by low- and moderate-in- able to work out accommodations and say those figures are grossly overcome lending and bankers often report in fact the provisions we are advancing stated. The figures cited reflect com- sound business opportunities. In fact, in the substitute are last year’s agreed- mitments made by financial institu- the CRA legislation requires that these upon provisions, the consensus provi- tions projected 10 years into the future. loans are made consistent with safety sions from last year with the one ex- They are not the commitments for 1 and soundness criteria. ception of the operating sub-affiliate year. He is upset by the size of them. I issue which I will address shortly. wish they were for 1 year. I am not My colleague suggests that somehow Clearly one obvious and extremely upset by the size of them. I would like the CRA was put into law sort of unbe- important problem with S. 900, the bill to see these kind of commitments knownst to everyone, that the only now before us, brought out by the Com- made into reinvesting in our commu- vote was a 7–7 vote in Committee on an mittee is the treatment of the Commu- nities. In any event, in order to get amendment to take the provision out nity Reinvestment Act, or CRA. The this debate on an apples and apples of a bill that had been laid out for agreement that we have reached in basis, I think it is very important to markup. When that bill came to the terms of the order of procedure provide understand that the figures that were floor an amendment was proposed to S4624 CONGRESSIONAL RECORD — SENATE May 4, 1999 strike the CRA title of the bill. That not neutral. I mean, it allows the Mr. GRAMM. Sure. amendment was defeated on a vote of banks in effect to shift assets out. If The PRESIDING OFFICER. Without 31 in favor and 40 against. they do not have the requirement of a objection, it is so ordered. For whatever it is worth, I simply ‘‘satisfactory’’ CRA rating, you would Mr. WELLSTONE. I thank the chair. want to put down this notion that dramatically undermine CRA as it now Mr. SARBANES. Second, Mr. Presi- somehow this matter wasn’t considered exists. In fact, Secretary Rubin stated: dent, is the provision for a safe harbor for banks with a ‘‘satisfactory’’ CRA at the time it was first put into law in If we wish to preserve the relevance of CRA the Senate. It was considered in the at a time when the relative importance of rating. Actually, what this provision Committee and it was considered on bank mergers may decline and the establish- would do is effectively eliminate public the floor of the Senate. It was voted on ment of non-bank financial services will be- comment on CRA performance. Banks in both places and it remained in the come increasingly important, the authority that had received a ‘‘satisfactory’’ or law. That is the provision that we now to engage in newly authorized activities better rating at the recent exam, and should be connected to a satisfactory CRA during the preceding 3 years, would be have with some subsequent modifica- performance. tions. deemed to be in compliance with CRA In the mid-1990s an effort was made The financial institutions are pre- and immune from public comments on to revise the CRA regulations and deal pared, willing, to live with this require- CRA performance. That would be the with the complaint that was being re- ment. They are not clamoring that it case unless you had substantial, ceived from a number of financial in- be dropped from the legislative pack- verifiable information to the con- stitutions that the regulatory process age. In fact, they were supportive of it trary—which of course is a very heavy was overly burdensome. Secretary last year and accepting of it this year. burden of proof. Rubin actually took the lead in doing Second, and I am touching on them Actually the regulators oppose this. that. I think he did a very successful very quickly because I know there are Comptroller of the Currency Hawke job, in effect trimming down CRA re- other Members wishing to make an stated: quirements, in order to ease that bur- opening statement. Public comment is extremely valuable in Mr. WELLSTONE. Mr. President, providing relevant information to an agency den. In fact, at the time his work was in its evaluation of an application under the received with great approval. might I just interrupt my colleague and ask a question? CRA, convenience and needs and other appli- Let me talk very quickly about the cable standards—even by an institution that defects that are in the bill with respect Mr. SARBANES. Surely. has a ‘‘satisfactory’’ CRA rating. This to CRA. As I said, we had good agree- Mr. WELLSTONE. I am a little un- amendment would limit or reduce public ment on this last year. This year, un- easy he is being rushed along. My un- comment that is useful in our application fortunately, we really have had a derstanding is at 12:15 we were going to process. major conflict over this extremely im- go into morning business; is that cor- And there is a similar comment from portant issue. rect? Ellen Seidman, the Director of the Of- The chairman makes a number of as- The PRESIDING OFFICER. There is fice of Thrift Supervision. sertions about CRA but we have never not an order to that effect. Public comment is useful because held any hearings to substantiate those Mr. WELLSTONE. There is or is not? many banks or regulators sample only assertions. We are constantly being The PRESIDING OFFICER. There is a portion of the markets to determine told about how extensive the abuse is. not. the institution’s CRA rating. Public I am prepared to consider the possi- Mr. WELLSTONE. I say to my col- comment provides an opportunity for community members to point out facts bility that on occasion abuses occur, league I did not want him to rush. I and data that have been overlooked in but I think the ones that took place will come after the caucuses and speak. a particular examination. and most of the ones talked about took Mr. SARBANES. As I understand it, there are a number of people who want Actually, 97 percent of the institu- place in the early years of the CRA and tions get a ‘‘satisfactory’’ rating so that, by and large, now the CRA proc- to make opening statements. Presum- ably we would complete opening state- you, in effect, are going to exclude out ess is working quite well. from this CRA review most of the insti- I know that doesn’t meet my col- ments after lunch if we have not completed them before lunch. tutions. leagues concern. I’m a little bit re- None of the statistics support these Mr. GRAMM. Will the Senator yield? minded of the story of the program assertions that there are too many Mr. SARBANES. Certainly. that was working well in practice, but challenges, that there is too much Mr. GRAMM. Mr. President, let me the objection was raised, Is it working delay. In fact the percentages are quite well in theory? As I listen to this de- just ask our colleague how long he small, in terms of the number of chal- bate, I’m reminded of that story. needs after lunch to speak? lenges that are filed, and then the Let me talk about the provisions in Mr. WELLSTONE. I have a fairly number of instances in which the chal- the bill as it differed from last year’s lengthy statement because I am prob- lenge gains any recognition from the approach. The bill eliminates the need ably one of the few Senators who ob- regulators. to have a ‘‘satisfactory’’ CRA rating as jects to this bill and I want to lay out The regulators, of course hear all of a precondition of expanded affiliations. my case. I want to talk strongly in the the comments. Individuals seeking to In other words, the substitute we will positive about some of what Senator comment on other aspects of the offer will provide that if a bank wants SARBANES is presenting. So I think bank’s performance—financial and to go into securities or into insurance, probably about 40 minutes, I would managerial resources, or competitive that the bank must have a ‘‘satisfac- need. implications—are not going to have tory’’ CRA rating. In other words, a Mr. GRAMM. Let me say I do not ob- their rights similarly curtailed. We do bank that has an unsatisfactory per- ject. I think we should go back and not think the rights on CRA should be formance rating would not be able to forth. So if we have a Republican who so curtailed. We will develop this, of move into those activities. It is as- would like to speak after Senator SAR- course, later in the debate. serted that that is a major expansion BANES, we can do that. If the Senator Let me now turn very quickly to the of CRA. The major expansion is the wants, he can have 40 minutes or an small bank exemption. The exemption ability of the banks to go into those hour and 40 minutes. We would like to for the rural institutions would exempt activities which heretofore they have hear it. a vast number of institutions in under- been precluded from. That is the expan- Mr. WELLSTONE. If I could just do served rural areas. It is asserted that sion. this, because I do not want my col- these banks by their very nature serve Our position is if that is going to league from Maryland rushing along their communities. But small banks take place, a CRA screening with re- and there are other colleagues out have historically received the lowest spect to the bank’s performance—not here: I ask unanimous consent I be al- CRA ratings. In fact, FDIC statistics to the securities or insurance affiliate, lowed to speak this afternoon before we show that 57 percent of small banks the bank’s performance—is a perfectly get to amendments? and thrifts have loan-to-deposit ratio reasonable requirement to expanding Mr. SARBANES. You don’t have any below 70 percent, with 17 percent of the activities. Otherwise, this bill is objection to that? those having levels below 50 percent. May 4, 1999 CONGRESSIONAL RECORD — SENATE S4625 The Madison, Wisconsin Capital case law that would support that posi- in an operating subsidiary with the Times, in an editorial, summed up this tion. safeguards the Treasury came forward practice in many rural communities as In addition to the unitary thrift loop- with. follows: hole, the Committee-reported bill—and First, that insurance underwriting [M]any rural banks establish a very dif- I will just touch on these—allows un- may not take place in a bank’s sub- ferent pattern [than reinvesting in their necessary, open-ended merchant bank- sidiary; secondly, that the Federal Re- communities], where local lending takes a ing investments. It permits holding serve shall have exclusive authority to lower priority than making more assured in- companies to engage in any non- vestments, like federal government securi- define merchant banking activities in financial activities that regulators be- bank subsidiaries; thirdly, that the ties. Thus, such banks drain local resources lieve are ‘‘complimentary’’ to financial of the very localities that support them, Treasury agrees that the Secretary and making it much harder for local citizens to activities, which is, of course, a poten- the Federal Reserve shall jointly deter- get credit. tially very large stretch of these ac- mine which activities are financial in tivities. We revised the regulations, I think in nature, both for a holding company and Former Federal Reserve Chairman a very effective way, to slim them for a bank subsidiary, and that they Paul Volcker gave very strong testi- down in terms of the burden on the shall jointly issue regulations and in- mony on this very issue. And careful small banks. We don’t think an exemp- terpretations under the financial-in-na- observers of the issue have said that tion is necessary to relieve the regu- ture standard. they regard the failure to maintain latory burden. They now have a this distinction between banking and So we think that these changes on streamlined examination process. They commerce, which we have had in our the part of the Treasury—including the generally do not need to keep paper- law for a very long period of time, as requirement that every dollar of a work or records beyond what they one of the reasons that contributed to bank’s investment in a subsidiary would do in the ordinary course of the Asian financial crisis. would be deducted from the bank’s cap- business. Economist Henry Kaufman warned ital for regulatory purposes, that a OTS Director Ellen Seidman stated: us. He said that it would lead to con- bank could not invest in a subsidiary Small banks should be subject to CRA. The flicts of interest and unfair competi- in an amount the bank could not pay simple assumption that if an institution is tion in the allocation of credit. He said: its holding company as a dividend, and small it must be serving its community is the strict limits which now apply to not entirely correct. A large corporation that controls a big bank would use the bank for extending credit transactions between a bank and its af- Let me turn very quickly to the to those who can benefit the whole organiza- filiates would apply to transactions be- banking and commerce issue. Again, tion. . . . The bank would be inclined to tween banks and their subsidiaries—we that is an area in which there is a dif- withhold credit from those who are, or could think this will level the playing field, ference between what was worked out be, competitors to the parent corporation. eliminate any economic benefit, and last year and the bill that has been Thus, the cornerstone of effective banking, provide for safety and soundness. brought to the floor this year. independent credit decisions based on objec- A wide range of commentators in- tive evaluation of creditworthiness, would be So we take the view now, on the basis cluding, interestingly enough on this undermined. of this agreement that the Treasury issue, Chairman Greenspan and Sec- And Paul Volcker, in commenting has made, that permitting bank oper- retary Rubin, former Federal Reserve about the Asian financial crisis has ating subsidiaries can be consistent Chairman Paul Volcker, banking in- written: with the goals of preserving safety and dustry associations and public interest Recent experience with the banking crises soundness, protecting consumers, and groups, support retaining the separa- in countries as different in their stages of de- promoting comparable regulation. tion of banking and commerce. velopment as Japan, Indonesia and Russia I ask unanimous consent that an ar- Chairman Greenspan said: demonstrates the folly of permitting indus- ticle entitled ‘‘Ex-FDIC Chiefs Unani- trial-financial conglomerates to dominate fi- mously Favor the Op-Sub Structure’’ It seems to us wise to move first toward nancial markets and potentially larger areas the integration of banking, insurance and se- of the economy. be printed in the RECORD at the end of curities and employ the lessons we learn my remarks. Now, let me turn very quickly to from that important step before we consider The PRESIDING OFFICER. Without whether and under what conditions it would some consumer protection issues which be desirable to move to the second stage of we think will be more adequately cov- objection, it is so ordered. the full integration of commerce and bank- ered in our alternative than in the (See Exhibit No. 3.) ing. Committee bill. Mr. SARBANES. In conclusion, let And Secretary Rubin stated, ‘‘We The alternative, which reflects last me simply state, Mr. President, that on continue to oppose any efforts to ex- year’s bipartisan agreement, provides this side of the aisle we are very much pand the integration of banking and mechanisms for regulators to receive committed to trying to get financial commerce.’’ and address consumer complaints. It services modernization legislation. All The Committee bill permits the con- provides that Federal regulations that of us supported it last year. In the tinued existence of what is called a provide a greater protection for con- Committee again this year we sup- unitary thrift loophole; and, therefore, sumers would apply rather than weak- ported legislation which would accom- it permits a major breaching of the er State regulations. It provides that plish that purpose. We do not believe separation between banking and com- the securities activities of banks would that the bill brought forward by the merce. be more closely checked on the broker- Committee meets the very important The American Bankers Association dealer question and with respect to goals which I outlined at the outset. and the Independent Community Bank- mutual fund investors. ers of America have written to the Sen- The Committee bill extends the as- I think the legislation introduced by ate urging us to support the Johnson sessment differential on the special de- Senator DASCHLE, and joined in by us, amendment on unitary thrifts that posit insurance assessment paid by is a balanced, prudent approach to fi- would prohibit existing unitary thrift thrifts. We do not do that in our alter- nancial services modernization. It re- holding companies to sell themselves native. flects last year’s carefully struck bi- to commercial firms going forward. I Let me turn quickly to the operating partisan compromises. It is not op- think it is very important that we try subsidiary issue. This is one area where posed by any financial services indus- to check this loophole which continues we do differ from last year’s joint bi- try actor or player. It is similar to the to exist in the law. partisan bill. We were much impressed bill passed, by a broad bipartisan vote, I simply say to the chairman that I by the fact that the Treasury Depart- by the House Banking Committee, and share his view that we ought not to ment agreed to significant additional it is clearly the approach most likely cross any line that is violative of the safeguards regarding the scope and reg- to achieve the enactment of financial Constitution. We do not think this pro- ulation of bank subsidiary activities. services modernization legislation. vision is violative of the Constitution. Therefore, we thought it now reason- If you want to get legislation, given We think there is a lot of very good able to permit activities to take place that at the end of the line it must not S4626 CONGRESSIONAL RECORD — SENATE May 4, 1999 only pass the Congress, but be signed nancial institutions from public comment on In the early 1980s, when one of us, William by the President, this approach is banking applications that they file with Fed- Isaac, became the first FDIC chairman to clearly the one that is most likely to eral regulators. The CRA exemption for testify on this subject, he was responding to achieve the enactment of financial banks with less than $100 million in assets a financial modernization proposal to au- would repeal CRA for approximately 4,000 thorize banks to expand their activities services modernization legislation. banks and thrifts that banking agency rules through holding company affiliates. When the opportunity presents itself, already exempt from CRA paperwork report- While endorsing the thrust of the bill, he I urge my colleagues to shift off the ing burdens. In all, these limitations con- objected to requiring that activities be con- path that is before us and to move on stitute an assault upon CRA and are unac- ducted in the holding company format. to that path. ceptable. Every subsequent FDIC chairman, including I yield the floor. The bill would unjustifiably deny financial the current one, has taken the same posi- EXHIBIT 1 services firms holding 99 percent of national tion, favoring bank subsidiaries (except Bill bank assets the choice of conducting new fi- Taylor who, due to his untimely death, never THE WHITE HOUSE, nancial activities through subsidiaries, forc- expressed his views). Each has had the full Washington, March 2, 1999. ing them to conduct those activities exclu- backing of the FDIC professional staff on Hon. PAUL S. SARBANES, sively through bank holding company affili- this issue. U.S. Senate, Washington, DC ates. Thus the bill largely prohibits a struc- The bank holding company is a U.S. inven- DEAR PAUL: This Administration has been ture with proven advantages for safety and tion; no other major country requires this a strong proponent of financial legislation soundness, effectively denying many finan- format. It has inherent problems, apart from that would reduce costs and increase access cial services firms the freedom to organize its inefficiency. For example, there is a to financial services for consumers, busi- themselves in the way that best serves their built-in conflict of interest between a bank nesses and communities. Nevertheless, we customers. and its parent holding company when finan- cannot support the ‘‘Financial Services Mod- The bill would also inadequately inform cial problems arise. The FDIC is still fight- ernization Act of 1999,’’ as currently pro- and protect consumers under the new system ing a lawsuit with creditors of the failed posed by Chairman Gramm, now pending be- of financial products it authorizes. If Con- Bank of New England about whether the fore the Senate Banking Committee. gress is to authorize large, complex organiza- holding company’s directors violated their In its current form, the bill would under- tions to offer a wide range of financial prod- fiduciary duty by putting cash into the trou- mine the effectiveness of the Community Re- ucts, then consumers should be guaranteed bled lead bank. investment Act (CRA), a law that has helped appropriate disclosures and other protec- Whether financial activities such as securi- to build homes, create jobs, and restore hope tions. ties and insurance underwriting are in a in communities across America. The CRA is The bill would dramatically expand the bank subsidiary or a holding company affil- working, and we must preserve its vitality as ability of depository institutions and non- iate, it is important that they be capitalized we write the financial constitution for the financial firms to affiliate. The Administra- and funded separately from the bank. If we 21st Century. The bill would deny financial tion has serious concerns about mixing require this separation, the bank will be ex- services firms the freedom to organize them- banking and commercial activity under any posed to the identical risk of loss whether selves in the Way that best serves their cus- circumstances, and these concerns are the company is organized as a bank sub- tomers, and prohibit a structure with proven heightened by the financial crises affecting sidiary or a holding company affiliate. advantages for safety and soundness. The bill other countries over the past few years. The big difference between the two forms would also provide inadequate consumer pro- The Administration also opposes the bill’s of organization comes when the activity is tections. Finally, the bill could expand the piecemeal modification of the Federal Home successful, which presumably will be most of ability of depository institutions and non- Loan Bank System. The Administration be- the time. If the successful activity is con- financial firms to affiliate, at a time when lieves that the System must focus more on ducted in a subsidiary of the bank, the prof- experience around the world suggests the lending to community banks and less on ar- its will accrue to the bank. need for caution in this area. bitrage activities and short-term lending Should the bank get into difficulty, it will I agree that reform of the laws governing that do not advance its public purpose. The be able to sell the subsidiary to raise funds our nation’s financial services industry Administration opposes any changes to the to shore up the bank’s capital. Should the would promote the public interest. However, System that do not include these crucial re- bank fail, the FDIC will own the subsidiary I will veto the Financial Services Moderniza- forms. and can reduce its losses by selling the sub- tion Act if it is presented to me in its cur- In addition, the Administration opposes sidiary. rent form. granting the Federal Housing Finance Board If the company is instead owned by the Sincerely, independent litigation authority. Such au- bank’s parent, the profits of the company BILL CLINTON. thority would be inconsistent with the At- will not directly benefit the bank. Should EXHIBIT 2 torney General’s authority to coordinate and the bank fail, the FDIC will not be entitled EXECUTIVE OFFICE OF THE PRESIDENT, conduct litigation on behalf of the United to sell the company to reduce its losses. Requiring that bank-related activities be OFFICE OF MANAGEMENT AND BUDGET, States. Washington, DC, May 3, 1999. conducted in holding company affiliates will PAY-AS-YOU-GO SCORING place insured banks in the worst possible po- STATEMENT OF ADMINISTRATION POLICY S. 900 would affect direct spending and re- sition. They will be exposed to the risk of S. 900—FINANCIAL SERVICES MODERNIZATION ceipts. Therefore, it is subject to the pay-as- the affiliates’ failure without reaping the ACT OF 1999 (GRAMM (R) TX) you-go requirement of the Omnibus Budget benefits of the affiliates’ successes. The Administration strongly opposes S. Reconciliation Act of 1990. OMB’s pay-as- Three times during the 1980s, the FDIC’s 900, which would revise laws governing the you-go scoring of this bill is under develop- warnings to Congress on safety and sound- financial services industry. This Administra- ment. ness issues went unheeded, due largely to tion has been a strong proponent of financial EXHIBIT 3 pressures from special interests. modernization legislation that would best [From the American Banker, September 2, The FDIC urged in 1980 that deposit insur- serve the interests of consumers, businesses, 1998] ance not be increased from $40,000 to $100,000 and communities, while protecting the safe- while interest rates were being deregulated. EX-FDIC CHIEFS UNANIMOUSLY FAVOR THE ty and soundness of our financial system. The FDIC urged in 1983 that money brokers OP-SUB STRUCTURE Consequently, it supports the bill’s repeal of be prohibited from dumping fully insured de- the Glass-Steagall Act’s prohibition on (By Ricki Tigert Helfer, William M. Isaac, posits into weak banks and S&Ls paying the banks affiliating with securities firms and of and L. William Seidman) highest interest. the Bank Holding Company Act’s prohibi- The debate on banks conducting financial The FDIC urged in 1984 that the S&L insur- tions on insurance underwriting. Neverthe- activities through operating subsidiaries has ance fund be merged into the FDIC to allow less, because of crucial flaws in the bill, the been portrayed as a battle between the the cleanup of the S&L problems before they President has stated that, if the bill were pre- Treasury and the Federal Reserve. The spun out of control. sented to him in its current form, he would veto Treasury believes banks should be permitted The failure to heed these warnings-from it. to conduct expanded activities through di- the agency charged with insuring the sound- In its current form, the bill would under- rect subsidiaries. The Fed wants these ac- ness of the banking system and covering its mine the effectiveness of the Community Re- tivities to be conducted only through hold- losses-cost banks and S&Ls, their customers, investment Act (CRA), a law that has helped ing company affiliates. and taxpayers many tens of billions of dol- to build homes and create jobs by encour- Curiously, the concerns of the Federal De- lars. aging banks to serve creditworthy borrowers posit Insurance Corp. have been largely ig- Ignoring the FDIC’s strongly held views on throughout the communities they serve. The nored. The FDIC, alone among the agencies, how bank-related activities should be orga- bill fails to require that banks seeking to has no ‘‘turf’’ at stake in this issue, as its su- nized could well lead to history repeating conduct new financial activities achieve and pervisory reach extends to any affiliate of a itself. The holding company model is inferior maintain a satisfactory CRA record. In addi- bank. The FDIC’s sole motivation is to safe- to the bank subsidiary approach and should tion, the bill’s ‘‘safe harbor’’ provision would guard the nation’s banks against systemic not be mandated by Congress. amend current law to effectively shield fi- risks. Mr. GRAMM addressed the Chair. May 4, 1999 CONGRESSIONAL RECORD — SENATE S4627 The PRESIDING OFFICER. The Mr. GRAMM. It was a 1-year figure. come into existence, they have existed Chair recognizes the Senator from Mr. SARBANES. I thank the chair- for over 30 years. We are not debating Texas. man. here whether or not we should stop the Mr. GRAMM. Mr. President, I am Mr. GRAMM. There will be more issue of new licenses to commercial in- going to yield to the Presiding Officer agreements next year and next year terests to create ‘‘new unitary thrifts.’’ and come up and preside so he can give and next year. The point is, this has The question is, What do you do with his opening statement, if he would like grown from a very small program into people who already have the charters? to do that. Before doing that, however, a very big program. I believe, and the Do you change the rules of the game on I will make a couple of points in re- majority of the members of the com- them? sponse to Senator SARBANES’ state- mittee believe, it is time to look at If our colleagues would indulge me, I ment. this program and look at abuses, and yield to Senator ENZI. First of all, the substitute that Sen- we are going to have plenty of time to Mr. REED. Mr. President, just a ator SARBANES will offer is not last debate this later. point of information, I presume we are year’s bill. In fact, it is fundamentally Let me also note that, under current going to adjourn at 12:30. Presump- different from last year’s bill on the law, a bank is not required to get CRA tively, that means Senator ENZI would most important issue in financial serv- approval to sell insurance. Under cur- be the last speaker this morning. ices modernization. That issue is, rent law, there are a limited number of The PRESIDING OFFICER (Mr. should the modernization occur within banks that do have some insurance GRAMM). Let the Chair ask Senator the structure of the bank, or should it powers. They are not required under ENZI, could the Senator tell us how occur through the holding company? current law to get CRA approval to en- long he intends to speak? Mr. ENZI. Mr. President, I think I Last year’s bill followed the proposal gage in those security powers. have about 7 or 8 minutes’ worth and which has been made and supported by Now, in terms of the CRA reforms in would be willing to stay for Senator all of the members of the Federal Re- the bill reported by the Banking Com- REED’s comments as well. serve Board and its Chairman, Alan mittee, those reforms have been endorsed by the American Bankers Asso- Mr. REED. I thank the Chair. Greenspan, whereas this bill—— The PRESIDING OFFICER. The Sen- ciation, by the Bankers Roundtable, Mr. SARBANES. Will the Senator ator from Wyoming. yield on that point? and by the Independent Bankers Asso- Mr. ENZI. Mr. President, I rise in Mr. GRAMM. I am happy to yield. ciation of America. When our colleague support of S. 900, the Financial Serv- Mr. SARBANES. The Senator isn’t says everybody is happy with the pro- ices Modernization Act of 1999. suggesting that I didn’t lay out in the visions of his substitute, I want people I commend the senior Senator from course of my statement the fact that it to know that three major banking Texas, the chairman of the Banking differed in this respect from last year’s groups have endorsed the provisions of Committee, Mr. GRAMM, for his leader- bill, is he? our bill. ship on this important measure, a bill Mr. GRAMM. No. I am simply mak- Let me say again—and I don’t know that will increase global competitive- ing sure that everybody understands— what you do to get people to use the ness of U.S. financial firms. It will in- because there were a lot of references English language—there is not a safe crease access to financial services for made between last year’s bill and this harbor in this bill. A safe harbor is all Americans, and it will decrease year’s bill—that how someone voted where something can’t be challenged. costs for consumers. last year is interesting and may, to There is a rebuttable presumption in I congratulate Senator GRAMM on his some extent, be relevant, but on the the bill. There is a big difference be- willingness to meet with all of the dif- fundamental issue that is before us, tween the two. The rebuttable pre- ferent groups that have asked to meet whether or not these new services sumption in the bill simply says that with him, the way he has reached out should be provided within the bank or in order to stop or delay a regulatory and been willing to talk to people on outside the bank in holding companies, action, you have to present substantial both sides of the aisle, as well as spend the substitute which the Senator will evidence. That substantial evidence is innumerable hours with those of us offer later today is a very different bill defined in law as more than a scintilla. who have had questions about some of from last year’s bill. That is the only It is defined as such relevant evidence the very detailed technical parts of the point I am making. as a reasonable person might accept as bill, particularly the operating subsidi- The second thing I will make clear is, adequate to support a claim. aries, for the research that he has I didn’t object to the growth in CRA That is not a safe harbor. That sim- done. I compliment him on the sim- and the commitments made to CRA. I ply is giving the evaluation that has plification he has done. There were did make the point, however, that occurred some standing. some very complicated issues in last when in a given year—in fact, last Our colleague talks about comments. year’s bill that, because of the end of year—the loans, the commitments to Nothing in the bill prevents anybody the year pressure, were included but lend, the cash payments, and the com- from commenting on any CRA evalua- weren’t very concise. They seemed to mitments to pay cash in the future are tion. Comments can be made. People be misunderstood by people on both bigger than the Canadian economy, can submit any comments. All our pro- sides of whatever issue. Of course, bigger than the discretionary budget of vision says is, if a bank has been in around here there are more than two the Federal Government, perhaps it is compliance for 3 years in a row, if they sides to every issue. time to look at potential abuses. are currently in compliance in their The chairman sat down with those Now, granted, the Senator made the evaluation with CRA, if the regulator people and worked out some simplifica- point that not every loan was made is going to stop the process or delay it, tion of language that they say they this year, and not every cash payment they have to have more than a scintilla agree with now. One of the results is, it was made this year. I was simply using of evidence. In order for the protest or has reduced a 308-page bill to 150 pages the data the way community groups objection to be used to stop the process without damaging anything, but it has presented it. I was very careful to say for a bank with a long history of com- greatly increased the readability. that the $694 billion was loans, compliance, there has to be substantial evi- We have asked the banking industry mitments to lend, cash payments, com- dence. People can comment all they and we have asked the agencies to put mitments to pay cash in the future. I want to comment. Nothing in this pro- this in plain language. The chairman stand by those numbers, and those are vision prevents comments. has done that and, I think, given peo- the numbers of the community service Finally—and we will have lots of ple an opportunity to comment on it groups. time to debate these—in terms of uni- and discuss it with him in private Mr. SARBANES. Will the Senator tary thrifts, unitary thrift holding meetings, if they wanted, as well as in yield for a question? companies are not a loophole. Congress other meetings. It is long overdue that Mr. GRAMM. I am happy to yield. legislated them. We end them in saying Congress pass legislation that will Mr. SARBANES. Was the Canadian that you cannot do any more, but to allow full and open competition at GNP figure the Senator was using a 1- suggest that they are a loophole, an ac- least across the banking, securities and year figure or a 10-year figure? cident, that nobody ever intended they insurance industries. S4628 CONGRESSIONAL RECORD — SENATE May 4, 1999

I believe now is the best time to pass has taken to develop a more stream- At the conclusion of Senator REED’s S. 900 in order for U.S. financial inter- lined, less burdensome bill. It is only remarks, Senator SPECTER will be rec- mediaries to be prepared for the chal- 150 pages. The bill reported out of the ognized, and at the conclusion of his lenges of the new millennium. The cur- Banking Committee last year was 308 remarks, we will adjourn for the lunch- rent laws governing our financial sec- pages—double the length of the bill we eons. tor have been eroded by the actions of are debating today. I do not believe The Senator from Rhode Island is regulators, the decisions of the courts, more is usually better in terms of the recognized. the continuing changes in technology, length of a bill. Many times that policy Mr. REED. Mr. President, I thank and the increasing competitive global means more hoops and ladders the pri- Senator ENZI for his graciousness in of- markets. In addition, these laws limit vate sector must go through, thus cre- fering the unanimous consent request. competition and innovation, thus im- ating more inefficiencies and higher I want to begin by stating how imposing unnecessary costs onto the serv- costs in the marketplace. I believe the portant I think it is to pass financial ice provider, and that is ultimately ad- bill before us will not hamper indus- service modernization legislation as ditional costs on the consumer. tries with unnecessary, congressional- quickly as possible. The existing legal framework has be- There are several provisions in this created, burdens and inefficiencies. come an anachronism over the last sev- bill I believe are particularly impor- Before closing, I want to dispel some eral years—in fact, even the last dec- tant as several of them are very rel- of the myths surrounding this legisla- ade or so. The industry has responded evant to small financial institutions. tion—specifically the allegation that Section 306 of the bill requires the the majority in the Banking Com- to changes in this market faster than Federal banking agencies to use plain mittee have abandoned the consensus the law has responded. It is our obliga- language in all of their rulemakings reached by the Committee last year. tion to ensure that we have appropriate legal standards, so that our fi- used to implement this bill. Since this There is no consensus in the sub- nancial services industry can be com- legislation will impact both large and stitute bill sponsored by the minority petitive in a worldwide market, which small financial institutions, this provi- members of the Banking Committee. is highly dynamic, and which requires sion will help ensure that small banks The House Commerce Committee held more flexibility and more responsive- will not have to hire several lawyers to a hearing last week on H.R. 10, which is ness than is inherent in the current interpret the new rules resulting from nearly identical to the substitute bill. system, which began under Glass- this legislation. Members on both sides of the isle were Steagall more than 60 years ago. The bill also requires the GAO to very critical of the bill. Ranking Mem- So I am a strong proponent of finan- study expanded small bank access to S ber DINGELL was especially harsh in his criticism. I mention this to prove there cial modernization. In fact, it is ironic corporation status, specifically those that we were very close in the last Con- provisions relating to Senator Allard’s is not consensus on the substitute bill. Further, this substitute is not the gress to passing financial moderniza- bill. I enthusiastically support his ef- tion legislation, which was agreed to forts to reduce the tax burden on small product from last year. It differs in a number of respects from last year’s by all the major interest groups and business corporations. which represented a balancing of the Additionally, this legislation grants bill, most significantly with regard to need for flexibility, the need for new non-metropolitan banks of less than the operating subsidiary provisions. The op-sub provisions in the House bill and expanded powers, the need for fi- $100 million in assets—very small insti- nancial services industry to be able to tutions by any standard—an exemption and the minority’s bill are those that are causing significant heartburn for reach across prior lines of demarcation from the paperwork requirements of to the securities industry, banking in- the Community Reinvestment Act, or the House Commerce Committee and Federal Reserve Chairman Alan Green- dustry and insurance industry, and at CRA. The total bank and thrifts assets the same time maintain the principles exempt from this requirement would span. In addition, I want to set the record of safety and soundness, and also the equal only 3 percent. Small, non-met- straight about the vote on the old H.R. notion that we have to ensure commu- ropolitan banks and thrifts by their 10 in Banking Committee last year. nity access to credit. All these things very nature must be responsive to the The bill did pass by a vote of 16 to 2. were carefully worked out. Yet, regret- needs of the entire communities they However, I for one can say that I sup- tably, H.R. 10 failed in the last few mo- serve or they will not remain in busi- port the bill we are now debating, S. ments of the last Congress. ness. The exemption in this bill will 900, much more than the H.R. 10 I re- We are back today to begin to ad- help reduce the regulatory costs im- luctantly supported last year. My big- dress these issues again on the floor of posed on these smaller institutions. gest concern with that H.R. 10 was, and the Senate. That is an encouraging When less time is used to comply with continues to be, the expansion of CRA. point because I think the worse thing the letter of the law, more time can be It has been mentioned that with CRA to do would be to continue to delay and devoted to comply with the spirit of there have been more loans, houses and avoid this debate. the law by better serving the needs of businesses. I suggest that, particularly Having said that, let me also recog- each customer and the entire commu- with the time period that we are relat- nize that the current legislation we are nity. ing to, those are as a result of low in- considering, S. 900, significantly devi- Title III of the bill also eliminates terest rates, not some kind of effort ates from the principles and the com- the Savings Association Insurance that we are making under CRA. promises that were carefully worked Fund (SAIF) special reserve, a top pri- I want to reiterate that there were out in the last Congress. In so doing, I ority of the FDIC. Senator Johnson and 16,380 investigations into CRA, and think it raises serious questions about I have introduced identical language in three small banks were out of compli- the viability of this legislation, regard- a stand alone bill, S. 377, to ensure that ance. It takes an extra officer to han- less of whether it will pass this body or the special reserve is abolished. This dle CRA, and that is a huge cost to the other body. There is a strong ques- could save the thrift industry about $1 them. To find three people? There has tion of whether it will ultimately be- billion because the funds set aside in to be something better that we can do. come law. It think it should become the special reserve cannot be used until I strongly encourage my colleagues law and, as a result, I think we need to the SAIF reaches a dangerously low to support the bill passed by the Bank- make changes in the form of amend- level. Therefore, if unforeseen cir- ing Committee. It represents a sensible ments. In fact, unless we can deal with cumstances impact the SAIF, the FDIC approach to forming the future frame- some of the issues, I am prepared to op- may choose to increase insurance pre- work for our financial services indus- pose this legislation, even though I am miums on thrifts to recapitalize the try. strongly committed to ensuring that SAIF. The elimination of the special Mr. President, I ask unanimous con- we ultimately achieve a modernization reserve represents a sound public pol- sent that the time for debate be ex- of our financial services industry. icy that will save the private sector tended for Senator REED to give his re- The critical issues that face us with from unnecessary costs. marks, followed by Senator SPECTER. respect to this bill that are troubling I strongly support the approach the The PRESIDING OFFICER. Without are, first, with respect to the Commu- chairman of the Banking Committee objection, it is so ordered. nity Reinvestment Act. Over the last May 4, 1999 CONGRESSIONAL RECORD — SENATE S4629 several decades, since 1977, over $1 tril- have to invest in it, you have to care banking institutions take their CRA lion in loans and loan commitments for it, and you have to commit to it, responsibilities seriously and, in fact, have been made under the Community but you don’t have to lose money. act upon them. But that is another fac- Reinvestment Act. It has literally There is nothing in the CRA law that tor which I think we have to consider helped maintain and rehabilitate com- says you have to make a bad loan. when we are talking about dispensing munities, both urban centers and rural There is nothing in the CRA law that with the opportunity to raise in a areas, throughout this country. With- says you have to do something unsafe, meaningful way CRA concerns with re- out it, this would be literally a foreign unsound, or foolish in banking. It does spect to major transactions. issue, particularly in urban neighbor- say that you have to look for appro- Frankly, everything we have read in hoods and rural areas. With it, we man- priate lending opportunities in your the paper over the last several years, aged to spark hope and build new com- community and make those commit- several days, and several months has munities in places that were sadly ments. That is what I think most peo- been about major transactions between lacking in significant opportunities ple assume that local community financial institutions. That has been and significant hope. banks do day in and day out. the driving force in the industry and, One example of the many in my What I think will happen by the ex- coincidentally, has helped the bank be State is in Woonsocket, RI. It was, at emption is you will find in rural areas more committed and more responsive the turn of the century, a thriving mill it will be harder to get the kind of to the CRA concerns, because they town. In fact, the river was crowded credit for those types of community know this is an item that can be with factory after factory after fac- projects, rebuilding of housing, small looked at and challenged in a meaning- tory. With the demise of northern man- businesses that do not have the kind of ful way in a transaction. If you dis- ufacturing, that town has seen difficult attraction or a track record yet to get pense with that, I think that would be times. Through the CRA, citizens were the support of the local banks. That is a mistake. able to avail themselves of significant something I think would represent a There is another provision in the leg- assistance and credit when they formed further demise in the community. islation which has been alluded to by the Woonsocket Neighborhood Devel- Then there is another provision, the ranking member, Senator SAR- opment Corporation to work toward which has been referred to as ‘‘rebuttal BANES, and that is essentially pro- preserving the neighborhood. I have of presumption’’ by some and ‘‘safe viding very limited opportunities to been there. I have visited these neigh- harbor’’ by others, which is included in conduct activities in a subsidiary of a borhoods. They are rebuilding old the legislation and which essentially banking institution. homes that were built in the 1800s. says, if you have a satisfactory CRA The bill as it stands today would es- They receive grants and loans from the rating, you are presumptively in com- tablish a $1 billion asset cap on those First National Bank and the Federal pliance with respect to a proposed banks that may engage in underwriting Home Loan Bank Board in Boston, all transaction unless someone can come activities for securities and merchant under the auspices of CRA. Without forward with ‘‘substantial verifiable in- banking in an operating subsidiary. I these loans, they would not be able to formation’’ that your rating is not war- believe that banks of any size should rebuild their communities. It is nec- ranted. have the opportunity to form them- essary, it is important, and it can’t be First, you have to ask yourself, who selves in such a way that they feel dismissed or short-circuited, as I fear outside of the bank would have ‘‘sub- most competitive in the marketplace S. 900 attempts to do. stantial verifiable information’’? That with respect to these two particular One of the other provisions in the bill is typically not in the public domain. functions, securities underwriting and that specifically cuts back on the scope So you are setting up in this rebuttal merchant banking. Therefore, they can and the effectiveness of CRA is the lim- of presumption, or safe harbor, an im- choose to put them in an affiliate hold- itation exemption of CRA for rural fi- possible task that outside community ing company, which would be a Federal nancial institutions with assets under groups particularly would be able to Reserve regulation, or in a subsidiary $100 million. We all admit that a $100 know the inner workings of the bank of the depository institution which million bank is a small institution. But so well that they could come in and would be subject to the Office of the such banks represent 76 percent of present ‘‘substantial verifiable infor- Comptroller of the Currency. rural banks in the United States, the mation.’’ So, in effect, what you are I think giving that type of flexibility vast majority of rural institutions. doing is saying, if we get your satisfac- makes more sense than determining And these banks historically have the tory rating, we are not going to pay that ‘‘one size fits all’’ and all has to be lowest CRA ratings. They are a bank much attention to the CRA. done in the context of a holding com- that, on their own volition, aren’t re- The practical reality is that in major pany arrangement. sponsive going through the data to transactions, the notion that CRA is a I offered last year, because of these their local community, and by taking factor that prompts first these deposi- views, an amendment to H.R. 10 which away the responsibility of CRA we will tory institutions to behave better be- would have allowed banks to engage in make this situation worse. fore the transaction and, certainly in securities underwriting and merchant I think what we will do, in effect, is contemplation of the transaction, re- banking subsidiaries. I would antici- deny to many rural areas what they view carefully their commitment to pate another amendment with respect think is part and parcel of the local their local community, is one of the to that. In fact, this language is in the bank in the community; that is, invest- most effective and nonintrusive ways, alternative which Senator SARBANES ment in their own community, in their because it doesn’t represent the Gov- will offer later today, or which I would own neighborhood. The reality of this ernment going in and directing lending expect to be offered to try to reach this is that people who run banks, which or directing anything in a nonintrusive point. It is an important point. It is comes as no surprise to anybody, want way if a bank responds to the needs of not just a point with respect to turf al- to make money. When they look the community, and to vitiate this by locations between Federal regulators; around their community and they see a this rebuttal of presumption is, I it is an opportunity to give the bank- loan for a community project, for hous- think, a mistake. ing industry the flexibility that all say ing redevelopment, or a local project to One of the other aspects of this re- they deserve. develop a community with a low rate buttal of presumption is the fact that There is another problem I see in the of return, and yet they can see they 97 percent of the institutions have legislation. That is with respect to the can park their money someplace in a these satisfactory ratings, which could elimination, for all practical purposes, big city without CRA, the tendency, lead to the question of how thorough of prior Federal Reserve Board ap- the temptation, and probably the re- these reviews are by the regulatory proval before allowing a bank to merge ality is they will send that money out agencies in the first place. or engage in a new activity. This once of that community. It might add a further argument to again goes to the heart of the regu- It is the local money that forms the the fact that perhaps it is only in the latory process. basis of these banks. CRA says you context of a serious review or serious It is nice to assume that banking in- have to look at the community, you questions raised by outside parties that stitutions and financial institutions S4630 CONGRESSIONAL RECORD — SENATE May 4, 1999 are responsible and appropriate in their iate unless there is a ‘‘reasonable cause contributes to the health of the deposit conduct of activities and that they to believe’’ the affiliate is engaging in insurance, we have a situation where would only conduct a merger that risky activity. Ask yourself, how do the taxpayer, through the insurance would be in the best interests of not you reasonably believe such activity is funds, will be bailing out a bank that only themselves but the public. But I taking place unless you have the op- very well might have a very healthy in- think that sometimes strains credu- portunity and indeed the authority to surance affiliate. lity. at least go in and check periodically These are some of the regulatory ex- It is appropriate, important and, in what is going on? amples which I think have to continue very practical ways, necessary to have Many of these provisions might cre- to be watched, examined, and thought the requirement for prior approval of ate a structure of regulation which is about. I hope as we go forward that we these major transactions by the Fed- just too porous to withstand the kind could engage the Fed in a constructive eral Reserve Board, because the Fed- of pressures that we see in the finan- dialog with respect to their views on eral Reserve Board has a role inde- cial marketplace. It is reasonable to how we on a practical basis deal with pendent of the management of the conclude how we got here. We have em- some of the concerns I raised today. banks. They are trying to maximize phasized throughout this debate this We have the potential of passing leg- shareholder value; they are trying to notion of functional regulation, that islation which would be terribly helpful be competitive in a very difficult mar- securities should be regulated by the to our financial community. I want to ket. SEC, depositories should be regulated pass the legislation. Unless we resolve But it is the Federal Reserve’s re- exclusively by banking regulators, and the issue of the Community Reinvest- sponsibility to ensure safety and that a loose, overarching regulatory ment Act, unless we resolve the issue soundness, that competition will not be provision should be discharged by the of operating subsidiaries, unless we adversely affected, and that this trans- Federal Reserve. look more carefully and closely and action will in some way serve the pub- Setting up compartments with a make changes perhaps in some of the lic interest. I don’t think you can do loose umbrella invites the notion that regulatory framework, this is not the that by implication. I don’t think you something will go wrong, something legislation that ultimately can or can do that by checking after the fact. will fall through the cracks. As we go should become law. Again, the reality is that when through this process, the debate and I yield my time. multibillion-dollar institutions merge the continued examination of this bill, Mr. SARBANES. Mr. President, I ask and then discover after the fact that it we have to ask ourselves not only be- unanimous consent that when the Sen- really was a bad idea, it is hard to un- fore the legislation is passed but if it is ate resumes its session, I believe it is ravel those transactions. To do it passed afterwards, are there any unin- now scheduled for 2:15—after the party right, you have to do it up front. tended loopholes that could be ex- caucus break—Senator WELLSTONE be Therefore, this legislation should have ploited, unfortunately, which would be recognized to make his opening state- prior approval by the Federal Reserve detrimental to safety and soundness? ment. I think he thought that was the Board. There is another provision which I understanding but we did not actually All of my comments have been appro- think is important to point out. That have a unanimous consent request. priately addressed by the Democrat is the notion that in the context of the This has been cleared by both sides. substitute, which will be offered by insurance business, State insurance The PRESIDING OFFICER. Without Senator SARBANES. regulators basically have a veto over objection, it is so ordered. Let me conclude with some specific Federal Reserve authority to demand (The remarks of Mr. SPECTER per- concerns about a question that has that an insurance affiliate contribute taining to the introduction of S. 952 are concerned me throughout the course of to the State of a holding company. located in today’s RECORD under our debate not only in this Congress This is a reversal from the traditional ‘‘Statements on Introduced Bills and but in the last Congress. That is wheth- authority and the traditional regu- Joint Resolutions.’’) er or not the regulatory framework we latory perspective of the Federal Re- are creating will be sufficient to pro- serve. f tect the safety and soundness of insti- For years, since their active regula- THE PALESTINIAN AUTHORITY tutions and ultimately protect the pub- tion of the Bank Holding Company Act, lic interest. the doctrine of the Federal Reserve has Mr. SPECTER. Mr. President, I com- We are trying to expand opportuni- been that the holding company is a pliment the Palestinian Authority for ties, to break down the old hierarchies, source of strength to the underlying not acting unilaterally to declare the old barriers between different types depository institution. That ‘‘source of statehood. Chairman Yasser Arafat vis- of financial activity, to give the kind strength’’ doctrine is, in part, repealed ited me on March 23, and I urged him of robust, dynamic opportunities that by this legislation, because within the at that time not to make a unilateral are concomitant with this world of in- context of an insurance company, and declaration of statehood. He then said stantaneous transfer of information specifically the next great round of to me that when the Palestinian Au- and billions of dollars across bound- mergers will be between depository in- thority had changed its charter, as it aries. In doing that, we have to recog- stitutions and insurance companies— was urged to do so by an amendment nize our ultimate responsibility is to that is the example that Travelers and introduced by Senator SHELBY and my- ensure these institutions operate safe- Citicorp established when these insur- self some years ago, that there was no ly, that they are sound, and that regu- ance companies started merging to- credit given for that. I said there latory responsibilities are discharged. gether with banks, big banks, big in- should have been credit given. And We expand dramatically the powers surance companies—we are going to Chairman Arafat asked if they did not of these institutions under this legisla- have for the first time in our financial make the unilateral declaration if tion. But in some respect we are inhib- history, a situation where an insurance there would be some acknowledgment iting some of the traditional regu- regulator can say to the Chairman of of that move. I said I would take the latory roles of our Federal regulators. the Fed, even though that depository floor when May 4 came, which was the For example, in section 114, there is a institution is ailing mightily and my date targeted—that is today—and there prohibition which prevents the Office insurance company is very healthy, I’m was no unilateral declaration of state- of the Comptroller of the Currency and not going to allow any transfer of hood. And there has been none. the Office of Thrift Supervision from funds from the insurance entity to the I congratulate the Palestinian Au- examining a mutual fund operated by a depository institution because I don’t thority for its restraint. That is a mat- bank or thrift. Currently, they have have to, one; and, two, I’m concerned ter which ought to be negotiated under limited authority to do such examina- about the long-term viability of the in- the terms of the Oslo agreement. tions. We are taking that away. surance entity, so I will not cooperate. Chairman Arafat asked me if I would Section 111, another example, pro- What that means is that rather than put it in writing that I would make the hibits the Federal Reserve from exam- the present model where every sub- statement. And I said I would; and I ining the securities or insurance affil- sidiary affiliate of a holding company did. May 4, 1999 CONGRESSIONAL RECORD — SENATE S4631 I ask unanimous consent that my let- have is, When are we going to come out month ago or 6 weeks ago. Instead, we ter to him dated in March be printed in here with legislation that benefits ordi- are out here on the floor talking about the RECORD. nary citizens?—which I mean in a posi- the Financial Services Modernization There being no objection, the letter tive way. I will come back to this later Act of 1999, the big bank act, the large was ordered to be printed in the on. conglomerate act, the large financial RECORD, as follows: The Minnesota Farm Services Ad- institution act. When are we going to U.S. SENATE, ministration has now had to lay off be out here talking about affordable COMMITTEE ON VETERANS’ AFFAIRS, close to 60 employees. That is where we child care, or about raising the min- Washington, DC, March 31, 1999. are heading. This is an agency, the imum wage? When are we going to Chairman YASSER ARAFAT, Farm Services Administration, that is make sure people get decent health President of the National Authority, Gaza City, a grassroots organization. They are out coverage? When are we going to talk GAZA, Palestinian National Authority. there trying to serve farmers. They are about providing more funding for the DEAR MR. CHAIRMAN: Thank you very much for coming to my Senate hideaway and for out in the field. They pick up on what Head Start Program? When are we our very productive discussion on March is happening in rural Minnesota. going to be out here talking about how 23rd. Right now the message we are send- to reduce violence in homes, and in Following up on that discussion, I urge ing here from the Congress is, we can’t schools, and in our communities? When that the Palestinian Authority not make a even pass a supplemental appropria- are we going to be out here talking unilateral declaration of statehood on May tions bill that we started working on about something that makes a dif- 4th or on any subsequent date. The issue of several months ago to provide spring ference to ordinary people? the Palestinian state is a matter for negotia- planting operating money for family Now, Mr. President, I understand tion under the terms of the Oslo Accords. farmers. Prices are way down. Income that all of the trade groups support I understand your position that this issue this legislation—that is to say, all of will not be decided by you alone but will be is way down. People are being fore- submitted to the Palestinian Authority closed on. It is not just where they the financial services groups. But I rise Council. work, it is where they live. They are in strong opposition to this legislation When I was asked at our meeting whether losing their farms, and we can’t even called the Financial Services Mod- you and the Palestinian Authority would re- get to them some disaster relief ernization Act of 1999. ceive credit for refraining from the unilat- money, some loan money, so they can This bill, S. 900, would aggravate a eral declaration of statehood, I replied that I continue to go on until we go back and trend toward economic concentration would go to the Senate floor on May 5th or change this ‘‘Freedom to Fail’’ bill that endangers not only our economy, as soon thereafter as possible and com- but, I think, more importantly, it en- pliment your action in not unilaterally de- that we passed several years ago. I am not telling you that some of the dangers our democracy. S. 900 would claring a Palestinian state. make it easier for banks, securities I look forward to continuing discussions large conglomerates and some of the with you on the important issues in the Mid- large grain companies and some of the firms, insurance companies, and, in East peace process. large packers aren’t making record some cases, commercial firms, to Sincerely, profits. They are. They have muscled merge into gigantic new conglomerates ARLEN SPECTER, their way to the dinner table. They ex- that would dominate the financial in- Chairman. ercise raw political control over family dustry. Mr. President, this is the wrong kind Mr. SPECTER. I again thank the farmers. of modernization at the wrong time. Chair for his staying late. I thank him, Meanwhile, this bill, the Financial Modernization of the existing, con- beyond that, for listening to my Services Modernization Act, is all fusing patchwork of laws, regulations, speech. Very often Presiding Officers about consolidation and letting large and regulatory authorities would be a are otherwise engaged. I yield the financial institutions have unchecked good thing; but that is not what this floor. power. But what we should be talking legislation is really about. S. 900 is f about is these family farmers going really about accelerating the trend to- under. ward massive consolidation in the fi- RECESS I talked with Tracy Beckman today, nancial sector. The PRESIDING OFFICER. Under director of the Minnesota FSA office. This is the wrong kind of moderniza- the previous order, the Senate stands He told me that right now we have 340 tion because it fails to put in place ade- in recess until the hour of 2:15 p.m. loan requests, totaling $44.9 million, quate regulatory safeguards for these Thereupon, at 1:03 p.m., the Senate that are approved but are unfunded due new financial giants whose failure recessed until 2:15 p.m.; whereupon, the to a lack of funding. Right now there is could jeopardize the entire economy. It Senate reassembled when called to the possibility, unless we get this fund- is the wrong kind of modernization be- order by the Presiding Officer (Mr. ing, that we are going to have 800 farm cause taxpayers could be stuck with GREGG). families in Minnesota that aren’t going the bill if these conglomerates become f to get any financing. They need that fi- ‘‘too big to fail.’’ We have heard that nancing if they are going to be able to before—‘‘too big to fail.’’ FINANCIAL SERVICES go on. MODERNIZATION ACT OF 1999 This is the wrong kind of moderniza- Yesterday Tracy Beckman told me tion because it fails to protect con- The PRESIDING OFFICER. The Sen- the story of a family farmer who found sumers. In too many instances, S. 900 ate will continue consideration of S. out he couldn’t get any loan money would lead to less competition in the 900. and he doesn’t have any cash flow. You financial industry, not more. It would The Senate continued with the con- can work 24 hours a day and be the best result in higher fees for many cus- sideration of the bill. manager in the world, and you will not tomers, and it would squeeze credit for The PRESIDING OFFICER. The Sen- make it as a family farmer right now. small businesses and rural America. ator from Minnesota. He said to one of our FSA officers out Most importantly, Mr. President, this Mr. WELLSTONE. I thank the Chair. in the field, out in the countryside, is the wrong kind of modernization be- Mr. President, I will be spending when he found out that FSA can’t help cause it encourages the concentration some time on S. 900, but I also, in my him because we are not able to pass a of more and more economic power in remarks today, will be focusing on the supplemental emergency assistance the hands of fewer and fewer people. question of when the Senate is going to program, this farmer said, ‘‘I’m just The regulatory structure of S. 900, as start dealing with issues that affect or- going to go home and shoot myself and well as the concentration it promotes, dinary citizens. I think that is what my family.’’ would wall off enormous areas of eco- people in Minnesota would like to This is someone who is desperate. nomic decisionmaking from demo- know. There is a lot of desperation in the cratic accountability. This is called the Financial Services countryside. We can’t even pass a sup- Mr. President, this is the wrong time Modernization Act. I have no doubt plemental appropriations bill that will to be promoting concentration in the that the large banks and lending insti- get some loan money out to family financial sector. S. 900 purports to up- tutions are all for this. The question I farmers, which we should have done a date obsolete financial regulations, but S4632 CONGRESSIONAL RECORD — SENATE May 4, 1999 the bill itself is already obsolete. This Passing this bill would be an act of years, we face some of the hazards that idea has been around for over a decade. monumental hubris. It would reflect a Glass-Steagall was designed to contain, But economic circumstances have smugness and complacency about our Congress wants to tear down the re- changed drastically in the intervening economic policy that I believe is maining firewalls once and for all. years. Today, much of the global econ- unhealthy and unwarranted. We have We seem determined to unlearn the omy is in crisis, and this is no time to heard the argument that America has lessons of history. Scores of banks be promoting a potentially desta- entered the new age, a ‘‘new para- failed in the Great Depression as a re- bilizing concentration of economic digm,’’ a so-called ‘‘new economy.’’ De- sult of unsound banking practices, and power. pression and deflation are relics of a their failure only deepened the crisis. The banking industry has become distant past. The old laws of ‘‘boom Glass-Steagall was intended to protect more and more concentrated over the and bust’’ no longer apply. Our superior our financial system by insulating last 18 years, and especially during the technology, so the argument goes, will commercial banking from other forms 1990s. There have been 7,000 bank merg- allow us to sustain this economic re- of risk. It was designed to prevent a ers since 1980. In the last year or so, we covery for another 20 or 30 years, and handful of powerful financial conglom- have seen megamergers that are the maybe more. This is the beginning of a erates from holding the rest of the largest in the history of American long boom. Some have dared to imag- economy hostage. Glass-Steagall was banking. The merger of NationsBank ine that we have arrived at the end of one of several stabilizers designed to and BankAmerica would have assets of history. keep that from ever happening again, $525 billion, and the BancOne and First There is a dangerous moral to this and until very recently it was very suc- Chicago/NBD merger would have assets story: that we no longer have to pre- cessful. But now S. 900 openly breaches of $233 billion. In 1980, by comparison, pare for emergencies or guard against the wall between banking and com- there were no mergers or acquisitions disaster; that the safeguards put in merce. of commercial banks with a total of place years ago to stabilize the econ- And what about the lessons of the more than $1 billion in assets. omy can now be safely withdrawn; that What is new and different about the savings and loan crisis? The Garn-St a safety net that will never again be situation today is that banks are be- Germain Act of 1982 allowed thrifts to tested by adversity can now be safely ginning to merge with insurance and expand their services—people in the shredded; that we no longer need to securities firms. The merger between country will remember this—beyond worry about inadequate oversight of one of America’s largest banks, basic home loans, and only seven years markets because the markets can and Citibank, and the largest of insurance later taxpayers were tapped for a will police themselves; that bigger is groups and brokerage groups, Trav- multibillion-dollar bailout. I’m afraid better, antitrust is obsolete, and regu- elers, is probably the best example. we’re running the same kind of risks lation is passe. This new conglomerate will control with this legislation. S. 900 would lead I think we are flirting with disaster. over $700 billion in assets. to the formation of a wide array of We are strolling casually along the Supporters of S. 900 argue that ‘‘too big to fail’’ conglomerates that whether we like it or not, the lines be- upper decks of the Titanic, oblivious to might have to be bailed out with tax- tween banking and securities—and the the dangers ahead of us. Remember, payer money. These financial holding lines between banking and insurance— the Titanic in its day symbolized the companies may well be tempted to run have already been breached. Regulators ultimate triumph of technology and greater risks, knowing that taxpayers and courts have already let banks dab- progress. Just like these new financial will come to their rescue if things go ble more and more into securities and conglomerates, it was considered ‘‘too bad. big to fail.’’ Because everybody as- insurance, and they have let S. 900 does set up firewalls to protect sumed this flagship of Western tech- brokerages invade banking. The battle banks for failures of their insurance nology was unsinkable, they saw no over Glass-Steagall has already been and securities affiliates. But even Alan need to take ordinary precautions. lost, they say. Greenspan has admitted that these They disregarded the usual rules of Well, Mr. President, I am not so con- firewalls would be weak. And as the speed and safety, as Congress is now vinced. If S. 900 didn’t encourage more Chairwoman of the FDIC has testified, doing with S. 900. And they failed to and bigger mergers, I don’t think so ‘‘In times of stress, firewalls tend to store enough lifeboats for all the pas- many big banks, big insurance compa- weaken.’’ The economists Robert sengers, which reminds me of nothing nies, and securities firms would be so Auerbach and James Galbraith warn so much as the repeal of the welfare en- enthusiastic about it. that ‘‘the firewalls may be little more titlement. In fact, passage of S. 900 would set in than placing potted plants between the Mr. President, that is another thing motion a tidal wave of big money desks of huge holding companies.’’ mergers. It would prompt other banks that maybe we should be talking about Regulators will have little desire to to start courting insurance and securi- on the floor of the Senate—what is stop violations of these firewalls if ties firms. And it would put increasing happening with welfare reform. Later they think a holding company is ‘‘too pressure on the banks of every size to in my remarks, when I am talking big to fail.’’ After the stock market find new partners. It may be true that about the real issues that affect real crash of 1987, for example, Continental we have already come a long way down people, and in particular poor people, I Illinois breached its internal firewalls this road. It may be true that the pro- will return to that. to prop up a securities subsidiary. Reg- tections of Glass-Steagall and the Some of the passengers in first class Bank Holding Company Act have al- may be oblivious, but the world econ- ulators reprimanded Continental with ready been eroded. It is certainly true omy is still in a precarious state. Most a slap on the wrist. that we cannot turn back the clock. of Asia is still in a depression. The Jap- And even if there is no taxpayer bail- But it does not necessarily follow anese economy is slugging through the out, the Treasury Department has ex- that we are doomed to continue down 9th year of an unshakable slump. Rus- pressed its concerns about unmet ex- this perilous path wherever it may sia has been mired in a depression for 8 pectations. Investors and depositors take us. Yes, regulators have already years, its economy shrunk to half its may assume protection is indeed much given banks an inch, but it doesn’t former size. Brazil is entering into re- greater for these holding companies mean we have to give them a mile. If cession, with serious implications for than it actually is. And they may panic the old laws and regulations are inad- all of its Latin American neighbors. when they realize they were mistaken. equate to deal with the changing world European economies are showing signs And what about the lessons of the of finance, then we need better regula- of weakness. Asian crisis? Just recently, the finan- tions, not weaker ones. We should not In the face of these sobering develop- cial press was crowing about the inad- be supplying the wrecking ball that ments, the solution offered by this leg- equacies of Asian banking systems. tears down all remaining walls between islation is simply more of the same— Now we are considering a bill that banking and other risky activities, more deregulation, more mergers, would make out banking system more without first putting into place ade- more concentration. At precisely the like theirs. The much maligned cozy quate safeguards. moment when, for the first time in 50 relationships between Asian banks, May 4, 1999 CONGRESSIONAL RECORD — SENATE S4633 brokers, insurance companies and com- transfer of regulatory authority for the of democratic input. Former Labor mercial firms are precisely the kind of newly created holding companies to Secretary Robert Reich has argued crony capitalism S. 900 would promote. the Federal Reserve. This seems a lot that we no longer have any fiscal pol- The economists James Galbraith and more like deregulation than mod- icy to speak of, and Congress has dele- Robert Auerbach warn against repeat- ernization. gated monetary policy to the Federal ing the mistakes of the Asian econo- Let me repeat that. A central feature Reserve. ‘‘The Fed, the IMF, and the mies: ‘‘There is already evidence of mo- of S. 900 is the transfer of regulatory Treasury are staffed by skilled econo- nopolistic practices in the banking in- authority for the newly created hold- mists,’’ he wrote, ‘‘but can we be sure dustry that would be heightened by [S. ing companies to the Federal Reserve. that the choices they make are the 900]. There is now devastating experi- This sounds a lot more like deregula- right ones in the eyes of most of the ence from the recent problems experi- tion than modernization. people whose lives are being altered by enced by huge banking-finance con- How much confidence can we have in them?’’ He has noted that ‘‘One reason glomerates in Asia. There is little jus- the Fed’s oversight? The case of Long governments exist is to insure that tification to follow these examples, as Term Capital Management last year economies function for the benefit of would be allowed by [S. 900]. It could does not exactly inspire confidence. the people, and not the other way happen here if we build the same un- Only one week before that $3.5 billion around.’’ Already, decisions about in- wieldy structures to dominate our bailout, Alan Greenspan testified be- terest rates and desirable rates of un- banking system.’’ fore Congress that the risk of hedge employment—decisions that will deci- To be accurate, if we want to locate funds was well under control and that sively impact the lives of millions of the real causes of the Asian crisis, we bankers policing them knew exactly Americans—are beyond the reach of de- have to look at the reckless liberaliza- what they were doing. Well, in this mocracy. They are reserved to the ex- tion of capital markets that led to un- case at least, they didn’t know what clusive jurisdiction of unelected bank- balanced development and made these they were doing. And apparently nei- ers. economies so vulnerable to investor ther did the Fed. What does it mean, as a practical What concerns me more is that this panic in the first place. The IMF and matter, for supervision of the financial massive transfer of power is anti-demo- other multilateral institutions failed sector to be protected from democratic cratic. The Federal Reserve Board is to understand how dangerous and de- accountability? The contents of S. 900 not an elective body, and it’s not demo- stabilizing financial deregulation can itself should give us a pretty good idea. cratically accountable. To the extent be without first putting appropriate For whose benefit is this legislation Congress pries into the Fed’s busi- safeguards in place. being passed? In the long debate over ness—which is not very much—we World Bank Chief Economist Joseph this legislation, there has been a lot of focus on monetary policy, not bank Stiglitz wrote last year about the talk about the conflicting interests of oversight. Why should we hand over so Asian crisis: bankers, insurance companies, and bro- much power to an institution that is kers, but very little discussion of the The rapid growth and large influx of for- essentially accountable to the finan- eign investment created economic strain. In public interest. addition, heavy foreign investment combined cial industry and nobody else? Financial services firms argue that I repeat that. Why should we hand with weak financial regulation to allow lend- consolidation is necessary for their over so much power to an institution ers in many Southeast Asian countries to survival. They claim they need to be as that is essentially accountable to the rapidly expand credit, often to risky bor- large and as diversified as foreign firms financial industry and nobody else? rowers, making the financial system more in order to compete in the global mar- vulnerable. Inadequate oversight, not over- James Galbraith and Robert regulation, caused these problems. Con- Auerbach write: ketplace. But the U.S. financial indus- sequently, our emphasis should not be on de- The Federal Reserve’s decision-making is try is already dominant across the regulation, but on finding the right regu- contingent to a great extent on the banking globe and in recent years has been latory regime to reestablish stability and industry which it regulates. Bankers elect quite profitable. I see no crisis of com- confidence. two-thirds of its 108 directors on the boards petitiveness. That is World Bank chief economist directors of its 12 regional Federal Reserve Financial firms also argue that con- Joseph Stiglitz. We claim to have Banks. This 25,000 employee bureaucracy solidation will produce efficiencies learned our lessons from the crisis in with its own budget that is not authorized or that can be passed on to consumers. approved by the Congress is not independent But there is little evidence that big Asia. But I am not sure we have. of the bankers and finance companies that it Tell me why on Earth are we doing would regulate. mergers translate into more efficiency or better service. In fact, studies by the this, besides the fact that these large Several commentators have ex- Federal Reserve indicate just the oppo- financial institutions have so much po- pressed open delight that this transfer site. There is no convincing evidence litical power? Why now? of power to the Fed will insulate finan- that mergers produce greater economic The backers of S. 900 claim that the cial regulation from ‘‘partisan poli- efficiencies. On the contrary, they Glass-Steagall Act of 1933 and the Bank tics.’’ The Christian Science Monitor often lead to higher banking fees and Holding Act of 1956 are obsolete and fi- endorsed H.R. 10 last year because ‘‘it charges for small businesses, farmers, nancial regulation must be modernized. would make financial regulation more Well, I’m all for modernization. But remote from politics.’’ and other customers. Bigger bankers the question is: what kind of mod- But is this really something we offer fewer loans for small businesses. ernization? should welcome? Another term for And other Fed studies have shown that I think most of us agree that the ex- ‘‘partisan politics’’ in this case is ‘‘de- the concentration of banking squeezes isting patchwork of confusing and in- mocracy.’’ Democracy may be messy out the smaller community banks. consistent regulations needs to be sim- sometimes. It would be vastly im- S. 900 reflects the same priority of in- plified and rationalized. GAO has testi- proved by real and meaningful cam- terest promoted by financial consolida- fied that the piecemeal approach to de- paign finance reform. But it also hap- tion itself. A provision designed to en- regulation taken by the Fed and Treas- pens to be the basis of our form of gov- sure that people with lower incomes ury has resulted in ‘‘overlaps, anoma- ernment. can have access to basic banking serv- lies, and even some gaps’’ in oversight. Why should such an important area ices has been stripped out. Let me re- The problem is that S. 900 doesn’t of public life be ‘‘insulated’’ from peat that. A provision designed to en- really fix that problem. It maintains a democratic accountability? Why sure that people with lower incomes patchwork of regulators. Who knows should the people making the most im- can have access to basic banking serv- how they would coordinate their ef- portant economic decisions in our ices has been stripped out. This provi- forts when holding companies run into country be accountable only to Wall sion was to address the growing prob- trouble? Street and not to voters? lem that banking services are beyond But most importantly, the reach of Why are we transferring this kind of the reach of millions of Americans. Ac- S. 900’s regulatory safeguards does not authority? cording to U.S. PIRG, the average cost match the size of these new conglom- We’ve already walled off most eco- of a checking account is $264 per year, erates. A central feature of S. 900 is the nomic decisionmaking from any kind a major obstacle to opening a checking S4634 CONGRESSIONAL RECORD — SENATE May 4, 1999 account for low-income families. These to help them grow. In a safe and sound Despite this undeniable success, the families have to rely instead on usu- manner, banks lend to farmers who fall CRA is under attack. S. 900 would rious check-cashing operations and on hard times and need some extra help begin to dismantle its effectiveness in money order services. to survive falling commodity prices. the communities where it has been I don’t see much protection for con- For many consumers, CRA has been a most beneficial. Specifically, I will sumers in S. 900 either. Banks that lifesaver. To deny the positive impact speak to two anti-CRA provisions in S. have always offered safe, federally in- CRA has made in improving the eco- 900. sured deposits will have every incen- nomic health of our country is simply First, S. 900 creates a safe harbor for tive to lure their customers into to deny the facts. The CRA has deliv- banks that have maintained a satisfac- riskier investments. Last year, for ex- ered an estimated $1 trillion or more tory CRA rating for 3 consecutive ample, NationsBank paid $7 million to for affordable homeownership and com- years. This provision would practically settle charges that it misled bank cus- munity development. The role of CRA eliminate the opportunity for public tomers into investing in risky bonds is not just to benefit the most impover- comment on the CRA performance of a through a securities affiliate it set up ished neighborhoods in our States; bank at the time of a merger applica- with Morgan Stanley Dean Witter. rather, CRA cuts across class lines, tion. Banks that have received a satis- S. 900 makes nominal attempts to ad- race lines, gender lines, practically factory or better CRA rating for 3 dress these and other problems. But in every hurdle to discrimination, to pro- years consecutively would be deemed the end, I am afraid this bill is an invi- mote economic stability for families, in compliance and therefore freed from tation to fraud and it is an invitation small farmers, and communities. This the requirement of public comment on to abuse. legislation in its present form begins to their application. Finally, the impact of S. 900 on the take all that away. Public comment on a proposed merg- Community Reinvestment Act is a What is my proof? According to the er is an especially useful tool in the cause of real concern. I thank my col- statistics collected by the Local Initia- case of large banks serving a variety of tive Support Corporation, or LISC, in league, Senator SARBANES, for his tre- markets. In such cases, regulators ex- 1997 the Home Mortgage Disclosure Act mendous leadership in making sure amine only a portion of these markets data showed that lending to minority that we protect community reinvest- to evaluate a bank’s CRA rating. Since and low-income borrowers is on the ment as a part of his substitute legisla- performance in small communities is rise. For example, since 1993 the num- tion. CRA has been an effective finan- weighted less than in larger areas, pub- ber of home mortgage loans to African cial tool for the empowerment and lic comment sometimes provides the Americans increased by 58 percent; to growth of our communities for over 20 only means to truly examine the com- Hispanics, by 62 percent; and to low- years. Despite this success, CRA is now mitments of a bank to all of its com- and moderate-income borrowers by 38 in great danger. Why? Because S. 900 is munity members. Simply put, public percent—well above the overall mar- a legislative package of deals and fa- ket. comment is a chance for community vors aimed to please Wall Street, cer- In 1997, large commercial banks made groups and consumers to bring to light tainly not Main Street. It is not good $18.6 billion in community develop- important information and facts that for small business, not good for low-in- ment investments. In 1997, banks and may have been overlooked during the come families, not good for rural thrifts subject to CRA’s reporting re- review process. America, not good for our neighbors or quirements made two-thirds of all the However, this avenue for public in- our communities. small business loans made that year. volvement in the merger process is se- Within this bill are three substantial More than one-fifth of those loans were riously undercut by S. 900’s safe harbor provisions intended to ‘‘modernize’’ fi- made to small businesses and low- and provision. The only way a citizen could nancial services by rolling back the moderate-income communities. exercise his or her democratic rights Community Reinvestment Act. But Each time I return to Minnesota, I would be to find ‘‘substantial verifiable that will only encourage discrimina- am convinced that CRA is working. information’’ of noncompliance since tion and promote economic despair. Early this year, I had a chance to the merging bank’s last CRA examina- We need to ask ourselves a very im- present an award to a family who had tion. This is a very high burden. An es- portant question: Are we willing to achieved their dream of becoming timated 95 percent of all banks are turn the clock back and abandon the homeowners. Rene and Gloreen deemed CRA compliant. As a result, Community Reinvestment Act? Are we Cabrarra were the 750th family to pur- the vast majority of mergers would be willing to return to the days before chase their home through an innova- exempted from public comment. 1977 when banks could freely discrimi- tive partnership between the commu- Some have justified this undemo- nate against neighbors, farms, small nity group ACORN and a local bank. cratic safe harbor as a way to prevent towns, and other underserved popu- Rene and Gloreen had to move out of extortion by community groups during lations, just because they were viewed their apartment when it was con- the merger review process. Mr. Presi- as less profitable customers? demned for repair problems. As a re- dent, in August 1998, I wrote a letter to We need to keep the doors open for sult, they moved in with other family the Federal Reserve requesting a public families, seniors, farmers, small busi- members. The Cabrarras began work- hearing on the proposed merger be- nesses, for consumers to access credit ing with the community group ACORN tween Norwest Corporation, based in so they can realize their dream to own in the Twin Cities and were soon able Minnesota, and Wells Fargo Company. a home or start a business. We need to to obtain a special low-income loan to I specifically requested that special at- keep the doors open for community buy their home, thanks to a CRA tention be paid to the possible effects groups, for cities and towns to access agreement between that community that this merger would have on the credit to revitalize impoverished neigh- group and that bank in that metro people and the communities who rely borhoods or to restore once abandoned area. There is no doubt that CRA has on Norwest’s services and community buildings. We need to keep CRA strong benefited Rene and Gloreen. As a re- participation across the State. I ask because we all benefit from community sult, they are now proud homeowners my colleagues, Was this extortion? reinvestment. living in the Phillips neighborhood. I was not the only elected official to CRA establishes a simple rule—that From the nearly 170 mayors who request such a hearing. A Congress- depository institutions must serve the have signed their name in support of man, a State representative, and var- needs of the communities in which the progress CRA has made in their ious community groups did as well. they are chartered. In a safe and sound communities, there is tremendous sup- Were they guilty of extortion? manner, they form partnerships with port. From family farm and rural orga- The 2-day hearing opened the doors groups and consumers to provide lend- nizations who see access to credit as for 70 different groups and individuals ing to those denied credit. In a safe and being essential tools for their small to publicly comment on the strengths sound manner, banks work with fami- communities, there is tremendous sup- and weaknesses of both Norwest and lies looking to achieve their dream of port. A story of empowerment can be Wells Fargo with regard to community owning a home. In a safe and sound shared by every group working for the involvement. Representatives from the manner, banks lend to small businesses advancement of their rights. Navajo Nation, statewide nonprofit May 4, 1999 CONGRESSIONAL RECORD — SENATE S4635 housing organizations, and microcredit are facing the worst financial conditions in has been streamlined to reduce the reg- lending organizations that provide a more than a decade due to declining com- ulatory burden on small banks. This is lifeline to small businesses, all had modity prices. Rural Americans continue to a law that has been improved and has their chance to be heard. They had need the tools of the CRA to ensure account- grown to better serve banks and con- ability of their local lending institutions. their chance to publicly challenge CRA helps to meet the credit demand of mil- sumers. these merging entities to remain in- lions of family farmers, rural residents, and A lot of big banks don’t like the volved in their communities. Did this local businesses. CRA. They feel it is an imposition. constitute extortion? In a March 24 letter to Senators, the They denounce it as big government No one was practicing extortion by National Farmers Union also sent the and overregulation. But for most peo- requesting a public hearing on the message that rural America needs the ple I ask, Which is the greatest danger merger between these two financial gi- CRA just as much as our urban centers. here, concentration of political power ants. No elected officials or nonprofits To quote the letter from President Le- in government or concentration of eco- were doing anything improper when land Swenson: nomic power? I don’t think it is a close they publicly commented on the lend- call. ing practices of these two banks. What The Community Reinvestment Act pro- I think our goal should be to help or- these 70-plus groups and individuals hibits redlining, and encourages banks to make affordable mortgage, small farm, and dinary people make sure they have were practicing was democracy. small business loans. Under the impetus of some say over the economic decisions Using S. 900, citizens would be de- CRA, banks and thrifts made $11 billion in that affect their lives. Repealing CRA prived of these democratic rights un- farm loans in 1997. CRA loans assisted small is not going to do that. No amount of less they could ‘‘substantially verify’’ a farmers in obtaining credit for operating ex- antigovernment rhetoric is going to do merging bank’s noncompliance. That is penses, livestock and real estate purchases. that. But enforcing some meaningful not just undemocratic, it is unjust. At Low- and moderate-income residents in rural consumer protections would do that. least the Daschle-Sarbanes amendment communities also benefited from $2.8 billion So would prohibiting mergers that in small business loans in 1997. would retain the consumers’ demo- threaten to crowd out community cratic right to participate in the proc- In 1999, access to credit is tighter banking, squeeze credit for small busi- ess. than usual, making it critical to main- nesses, and open the door to higher fees The second anti-CRA provision in S. tain the CRA. and ever more fraud and abuse. 900 is the small bank exemption. This For many consumers living in rural This is the fundamental problem provision would exempt banks in rural communities, having access to credit is with deregulation and economic con- communities with assets of less than having access to a future. Our rural centration generally. It allows the Na- $100 million from CRA requirements. In communities need CRA because they tion’s economic power to be held in the fact, it would exempt 63 percent of all can depend on little else in today’s ag- hands of fewer and fewer people. The banks from the requirements of CRA. ricultural markets. same thing is happening in many of our It would send a clear message to farm- I am strongly opposed to the small other major industries, including air- ers, to small businesses, and to con- bank exemption in S. 900 because I lines, electric utilities, and commu- sumers in small towns that they do not have witnessed firsthand the important nications. have the same rights to access credit role CRA plays in rural communities in Ben Bagdikian has noted that 20 cor- as consumers who live in urban areas. Minnesota. At least the Sarbanes- porations and multinationals own most Some of my colleagues would argue Daschle amendment would remove this of the major media in the entire coun- that small banks in rural communities harmful provision from the bill. try—newspapers, magazines, radio, tel- do not need CRA. Why? They claim We need to ask ourselves, do we real- evision and publishing companies. In that small banks by their nature serve ly intend to return to the old banking the 2 years since the Congress eased re- the credit needs of local communities. practices of red lining? Do we want to But CRA compliance records will tell strictions on ownership of radio, 4,000 leave our cities, small towns, and fami- stations have been sold—in the last 2 you a different story. lies without a means to become eco- More importantly, rural America is years—and more than half of all big- nomically stable and strong? Do we in- facing an economic crisis. Family city stations are in the hands of just tend to draw a clear line between the farms are disappearing one by one from five companies. haves and have-nots? this country’s rural landscape. Many The electric utility industry is al- It has been nearly 3 years since the rural communities are in great need of ready consolidating in expectation that passage of welfare reform. Since then, access to credit before their economies the States and Congress will soon man- urban and rural America has seen a collapse. This anti-CRA provision com- date retail competition. And 4,500 cor- dramatic rise in the numbers and needs pletely ignores the realities and needs porate mergers were announced in the of the desperately poor. of rural America. first 6 months of last year, with the According to a recent SBA (Small Mr. President, that is right. Since combined value of $1.7 trillion. These Business Administration) report, June then, we have seen a dramatic rise in include SBC and Ameritech, Chrysler 1998 data show a 4.6-percent decline in the number and needs of the des- and Daimler Benz, Enron and PGE, the number of small farm loans. That perately poor. Why are we not talking Monsanto and American Home Prod- June 1998 data also reveals that the about other issues on the floor of the ucts, Worldcom and MCI, and Columbia value of very large farm loans, over 1 Senate? I will get back to this in a lit- and HCA Healthcare. Now we hear million, has increased by 25 percent, tle while. about mergers between BP and Amoco, while small farm loans under $250,000 What does that have to do with CRA? Mobil and Exxon, and on and on. increased by only 3.9 percent. As fam- Everything. Because of CRA, nonprofit Pretty soon we are going to have ily farm and rural community organi- organizations that assist the homeless three financial service firms in the zations have concluded, larger loans are able to establish partnerships with country, four airlines, two media con- are going to fewer farmers. banks to access credit and build afford- glomerates, and five energy giants. According to a similar study con- able and emergency long-term housing. Mr. President, this is absolutely ducted by the State of Wisconsin, farm- CRA loans that develop dilapidated amazing to me, which is why I have ing operations were more likely to ob- neighborhoods and bring more jobs to spent some time making the case. We tain a loan if they were under contract our urban centers benefit former wel- see more consolidations here. We see a with an agribusiness. Small and inde- fare recipients. Over $1 trillion has dangerous concentration of power in pendent farmers faced greater dif- been invested with innovative ways of telecommunications—that is the flow ficulty accessing the necessary credit providing housing, jobs, and commu- of information in democracy—and the to remain in operation. nity revitalization to stabilize these same thing in energy, the same thing To quote an April 29 letter signed by economically troubled areas. with health insurance companies. 19 organizations representing the inter- CRA has been a mainstream banking In agriculture it is absolutely unbe- ests of farmers in rural communities: practice for over 20 years. It has lievable—absolutely unbelievable. Ev- Rural areas continue to suffer from a seri- evolved over the years to better serve erywhere family farmers look you have ous shortage of affordable housing. Farmers banks and their communities, and it these conglomerates that have muscled S4636 CONGRESSIONAL RECORD — SENATE May 4, 1999 their way to the dinner table, exer- of economic and political clout behind Mr. President, with due respect to cising their raw economic and political this bill. my colleagues, while I have the floor I power over family farmers, over con- And what is in store for us if we want to argue one other case. And I say sumers, and I might add, over tax- allow this trend to continue? Huge fi- to both the Senator from Texas and the payers as well. nancial conglomerates the size of Senator from Utah, I will not dominate Joel Klein came out to Minnesota, Citigroup will truly be ‘‘too big to the whole afternoon, but I do want to fail.’’ Government officials and Mem- along with Mike Dunn, who heads the make one other argument. And it is Packers and Stockyard Administration bers of Congress will be prone to con- this: I do not understand why we are on in the USDA, for a very dramatic pub- fuse Citigroup’s interests with the pub- the floor dealing with this legislation. lic hearing in our State just a couple of lic interest, if they do not already. I Sundays ago. Let me tell you, you have think they do already. I do not really understand why we are these hog producers that are facing ex- What happens when one of these co- dealing with—what is it called—the Fi- tinction, and then you have these lossal conglomerates decides, for exam- nancial Services Modernization Act. packers that are in hog heaven. You ple, it might like to turn a profit by When I talk to people in cafes in Min- have your grain farmers going under; privatizing Social Security? Who is nesota, they do not talk to me about and you have Cargill making a 52-per- going to stand in their way? That is a the Financial Services Modernization trick question, of course, because we cent profit in this past year. Act at all. As a matter of fact, I will already face that dilemma today. But I The farmers are saying, ‘‘What is tell you something. If you spend a lit- going on here? Consumers aren’t get- contend that the economic concentration resulting from passage of S. 900 tle bit of time with people, most people ting a break. And we’re not getting the will say—and both of my colleagues, prices that enable us to even keep would only make that problem worse. the Senator from Texas and the Sen- going on with our farming. Who is In a sense, then, campaign finance is ator from Utah will be happy to hear making the money?’’ Everywhere you only a symptom of a larger problem. see this concentration of power. I will By all means, we should drive money the first part of what they say, and have an amendment on this bill later out of politics. Absolutely, we should. maybe not as happy to hear the second on that will talk about antitrust ac- But even if we succeed, the trend to- part. If you do a poll and ask them, tion. wards economic concentration will di- ‘‘Are you a liberal or a conservative,’’ Antitrust action has been taken off minish the value of democratic deci- at the Town Talk Cafe in Willmar, the table. Antitrust action has been sionmaking. If few or none of the most which is my focus group—and that is taken off the table. This is a classic ex- important economic decisions are the name of the cafe—I would say 75 ample of why we need reform. Because made democratically, or are even sub- percent of the people say they are con- ject to democratic accountability, when it comes to antitrust action, and servative. They do. having the Senate say we are on the what is the point of voting? Indeed, But you know what? If you stick side of consumers, we are on the side of these developments raise important around and talk to people for a while, family farmers, we are on the side of and fundamental questions about the community people, and we are willing role of democracy itself. they do not like the way in which these It used to be that these questions to take on these huge companies, we big banks have taken over financial were a source of concern for many peo- dare not do that. These monopolies are services and have driven out the com- ple. And they were a hot topic for po- the campaign givers. These are the munity banks. And they do not like litical debate. Thomas Jefferson and heavy hitters. These are the investors. these big insurance companies that are Andrew Jackson warned not only We have been through this before, dominating health insurance. And they against the concentration of political Mr. President. At the end of the last do not like how these conglomerates power, but also against the concentra- century, industrial concentration ac- are driving family farmers out. And tion of economic power. celerated at an alarming pace. Lots of The great Supreme Court Justice they do not like the concentration in people, including the columnist and au- Louis Brandeis railed against the telecommunications. And they do not thor E.J. Dionne, former House Speak- ‘‘Curse of Bigness.’’ Brandeis argued like to see the merger of the energy er Newt Gingrich, and the philosopher, that industrial concentration companies. And they are not all that Michael Sandel, have noted the simi- coarsened the value of democracy by happy with Northwest Airlines that ba- larities between that era and our own. diminishing the role of individuals in sically dominates about 75 percent of American democracy suffered as a re- economic decisions. We should not let the flights in the State of Minnesota. sult of that concentration of economic that debate die. It is a vital part of our power. The two parties became domi- Those people in the cafes of Min- democratic heritage. nesota have a healthy skepticism nated by similar corporate interests. There may be some colleagues who about bigness. They have a healthy Their platforms started to sound an share these concerns but will nonethe- awful lot alike, and voter participation less vote for S. 900. They say this is the skepticism about a piece of legislation declined dramatically. Why? Because best we can do. They say the damage that leads to dangerous consolidation, people realized that they had little to has already been done, and concentra- and basically leaves the economic deci- say in the economic decisions that tion will continue with or without this sionmaking, that can make or break most affected their lives. legislation. the lives of families and communities I think that aptly describes the situ- I disagree. I think we need to take a and neighbors, in a few hands. They are ation today. I tell you, when I travel in good look at this. Before we consider right. More importantly, one more Minnesota or travel in the country, one sweeping changes in our financial serv- time, I just want to sound this alarm, of the things that people say to me is ices laws, we had better understand the which is why I am going to talk a little that they think both parties are con- effects of the latest wave of mergers. bit more here. We have a situation in trolled by the same investors. They do The true test of these new combina- my State of Minnesota right now not think there is any real opportunity tions will be the impact of the next re- which I can only define as desperate. for them to have any say anymore in cession. We need to see how these I have spoken at enough farm gath- this political process. megamergers hold up before proceeding erings. I spoke first, it was a farm And once again, we are about to pass any further. a piece of legislation —I hope we do There is simply no justification or gathering in northwest Minnesota, not, but if we do—a piece of legislation excuse for this kind of invitation to Crookston. Then there was a farm that will lead to the rapid consolida- bigness before a solid, updated regu- gathering that I spoke at in Wor- tion in the financial services industry, latory system can be put in place. I be- thington. Then there was a farm gath- to the detriment of rural America, to lieve this legislation is an enormous ering in Sioux Falls, SD. Then there the detriment of small towns, to the mistake. It is not necessary. And it was a farm gathering in Sioux City, IA. detriment of low- and moderate-income could do real harm to the economy. It Every time I spoke at those gath- people, and to the detriment of work- should be soundly defeated. It should erings—and there were 500, 600, 700, sev- ing families. But there is an awful lot be soundly rejected. eral thousand farmers—I looked out May 4, 1999 CONGRESSIONAL RECORD — SENATE S4637 there and I saw the pain in the faces of It is absolutely unbelievable; it real- minutes or so. If the Senator could sort family farmers. ly is. of begin to bring it to a close, it would I see the pain in the faces of those I mentioned a story earlier. I see be much appreciated. family farmers as I am in this Chamber there are people in the Chamber who Mr. WELLSTONE. Mr. President, let for two reasons: First of all, on the are watching the debate—or at least me say to my colleague that initially— long-term front, these family farmers watching one person speak. I have a and I appreciate what he is saying and can’t make it without a decent price. hard time giving people a feel for the because of that, I will try to bring it to They want to know what we are going gloom that is out there. Again, I talked a close—I said I thought it would take to do about getting farm income up. to Tracy Beckman, not using any 40 minutes. My colleague was gracious Why aren’t we talking about farm in- names, who is director of the Min- enough to say, take the time you need, come today? Why aren’t we doing nesota FSA. take an hour and a half, whatever you something about agriculture? He said, I think it was this morning, need. I think that is actually part of They want to talk about when there that one of the farmers who was denied the RECORD. is going to be antitrust action. They a loan because there was no money, be- And when he said that—I usually want to talk about who is going to be cause we haven’t done anything—we take direction from my colleague from on their side, not on Cargill’s side or are supposed to pass this emergency Texas—I thought to myself, well, if I IBP’s side or Monsanto’s side. They supplemental bill and get the funding have an hour and a half to talk about want to talk about whether or not out there—one farmer today said, the issues that I think we really ought there is going to be some protection for ‘‘Well, I’m just going to shoot myself to be talking about, I will take that. them so they have a chance to make it. and my family.’’ That is horrifying. So I am about ready to finish up on These family farmers also want to That is what he said. that hour and a half. know why in the world we can’t get There is tremendous economic pain, Mr. BENNETT. Mr. President, will emergency assistance to them as a part tremendous desperation. People are the Senator yield for a question? of the emergency supplemental bill. going under. We have the Financial Mr. WELLSTONE. I am pleased to, They thought 2 months ago we were Services Modernization Act, this piece although I want to make sure that I going to do it, but we didn’t. We left of legislation. Frankly, it doesn’t mean focus on some of these other issues. Let and went home for spring break. Now anything to these farmers. They want me yield for a question. we are back. I say to the majority to get some help. They would like to Mr. BENNETT. I want to answer party, get that supplemental bill out get spring planting loan money. That some of the things the Senator has here on the floor and pass it. How can is what they would like to have done been saying here and ask him a ques- we hold this bill up? There was sup- for them. That is not what we are tion in that context. posed to be a separate ag supplemental The Senator has asked the question, bill. But I think it was tied to Central doing. When are we going to get serious? It why we are taking this up, and why American assistance. I think they went is clear what this piece of legislation does it matter, and is there any ur- together. gency. My question to the Senator is, It should be passed out of here, be- does. We have the Community Rein- is he aware of the fact that Robert cause, one more time, the Minnesota vestment Act, which has been tremen- Rubin, the Secretary of the Treasury, FSA is laying off its employees. You dously important to lots of people in and Alan Greenspan, Chairman of the might say, so what, a bunch of bureau- small communities. It has ended red- Federal Reserve system, both testified crats. Not so. This is a grassroots orga- lining. I used to do community organization, with people out in the farm- nizing against redlining. It has worked before the Senate Banking Committee land providing people with credit, as a well. It has made a huge difference. It’s that this legislation was of the highest lender of last resort, with more and a source of capital, and lots of commu- urgency and that if it did not pass as more demand as farm prices are down, nities have overcome discrimination. quickly as possible, the entire banking farmers are facing foreclosure, trying This piece of legislation takes all that system of the United States would be to get out there and plant, and they do away. Wipes it out, wipes it out adversely affected by virtue of foreign not have the loan money. This is a de- through the two provisions that I competition? Is the Senator aware of moralized agency, and they are letting talked about. that testimony from the administra- people go. My question is, what does it do for tion and the Federal Reserve Board? As I said earlier, we are going to ordinary citizens? What does it do for Mr. WELLSTONE. Mr. President, it have, on the present course, at least 800 ordinary people? That is the question. is a fair enough question. In answering farmers who aren’t going to get any fi- Why aren’t Senators talking about the question, let me say that I actually nancing at all. They are going to go issues that matter to working people, just did have an opportunity to be in a under. That is a real emergency supple- that matter to ordinary citizens in our session with Secretary Rubin in which mental bill. country? Why aren’t we talking about several of us expressed the very con- I am tempted, while I have the floor, the Town Talk Cafe? cerns that I have taken an hour to ex- to speak for a while about this, because I see my colleagues on the floor. press. He said they are very valid con- it seems to me that we ought to be Mr. GRAMM. Will the Senator yield cerns. ‘‘On balance, I think it is better doing something about this and we for one moment? that we do this’’ was what he said. ought to be doing something about it Mr. WELLSTONE. As long as I con- And then when we had a discussion right now. The Financial Services Mod- tinue to have the floor, I will be about CRA—and I have devoted a good ernization Act—I have to write this pleased to yield. deal of my time talking about that— down—the Financial Services Mod- Mr. GRAMM. I have to accommodate the Secretary was very clear about the ernization Act does not mean a thing our dear colleague from Minnesota. Let President’s veto letter and very clear to them. The Financial Services Mod- me say, I wish he could go on forever, that it was important that we main- ernization Act does not mean a thing because I am always enlightened lis- tain these CRA provisions. to these family farmers. They want tening to him. But to accommodate Of course, the Secretary is interested this Congress to pass that supple- him, I asked unanimous consent that in this legislation, though it wasn’t mental bill because for them time is he might have 40 minutes when we quite the same report I heard that my not neutral. Time marches on. If they came back in at 2:15. It is now 3:15. The colleague heard. I say one more time— do not get any assistance, they are Senator has spoken an hour. I am coming to the end of my re- going to go under. These are hard- I asked other people to come over to marks—that in deference to all my col- working people. I think it is just sim- speak based on that agreement. I do leagues out here, I know this Financial ply unconscionable. I am not just talk- not intend to try to enforce the 40 min- Services Modernization Act has the ing about the Financial Services Mod- utes, but if the Senator could take that support of the industry groups and has ernization Act. I think it is uncon- into account, because I asked Senator the support of the financial institu- scionable that any piece of legislation BENNETT, who, as are all of us, is busy, tions. Of course, because it is going to go forward on the floor of the Senate to come over based on that agreement. lead to more concentration of power until we do something about this. He has been sitting here now for 25 and give them more say. S4638 CONGRESSIONAL RECORD — SENATE May 4, 1999 I am sure Alan Greenspan would like children? They are interested in how ing on this area of the economy, the it. The Federal Reserve Board is going we can reduce violence in homes, in Secretary of the Treasury, and with to have even more power—an unelected schools, and end the violence in our the head of the independent agency body with yet even more decision- communities. Why aren’t Senators out most charged with keeping the econ- making power over decisions that vi- here with legislation that deals with omy strong and vital, the Chairman of tally affect people’s lives. But I have to that? They are interested in how to the Federal Reserve Board, that it was tell you, in all due respect to one of my earn a decent living and how to give essential that we modernize our finan- favorite colleagues, the Senator from their children what they need and de- cial legislative structure in this coun- Utah, one more time, besides believing serve. They are interested in making try. this piece of legislation is a huge mis- sure that every child, by kindergarten, Why? They told us that foreign banks take, I won’t support this legislation in comes to school ready to learn. Why are coming to the United States, and its present form. aren’t we investing in good, develop- as the American banks go overseas, I won’t support the alternative, the mental affordable child care? they are competing in a different regu- substitute, either. Besides thinking it That is what they are interested in. latory framework. They said that the is a huge mistake, for reasons I have We are not dealing with any of those American framework is outdated, it is argued over the last hour—and my col- issues. I want to know when Senators outmoded, it is expensive, and that it league from Texas was gracious enough are going to come out on the floor and gets in the way of America’s ability to to give me that opportunity—I also deal with pieces of legislation that dra- compete. want to say one more time to family matically affect ordinary people, work- The big banks that my friend from farmers in the State of Minnesota right ing families in my State and working Minnesota attacks so vigorously, the now that this Financial Modernization families around the country. last time I checked, all paid taxes on Services Act doesn’t mean anything. It I yield the floor. the revenues they received. The best doesn’t mean a thing. They want to Mr. BENNETT addressed the Chair. way to make sure that we do not get know why we are not getting some The PRESIDING OFFICER (Mr. those tax revenues is to say, let us hob- loan money out to them right now be- CRAPO). The Senator from Utah is rec- ble those banks in their competitive cause they are in such desperate shape. ognized. structure with foreign banks. Let’s see They are trying to live to be able to Mr. BENNETT. Mr. President, I have to it that they cannot compete in the farm another day. enjoyed the presentation by my friend same kind of atmosphere as their for- To the people who are going to be from Minnesota. I return his friend- eign competitors, in the name of pre- laid off in Minnesota FSA, who are ship, and he is my friend. We disagree venting them from concentrating doing the good work of trying to proc- on just about everything, and we dis- power, and then see how much taxes we ess loans and help people, but have no agree about most of the things he said get from those big banks. Taxes are a money to work with, I think it is abso- here today. I want to make a few com- percentage of profits; if there are no lutely outrageous. To all the farmers ments about some of the positions he profits, there are no taxes and there is in economic pain because we are not has taken before I talk about the bill. no money in the budget to pay for all doing a darn thing about getting farm As I listened to the Senator run down of the programs that the Senator from income up, or about getting price up, the litany of things he thinks we ought Minnesota wants to fund. or a darn thing to take on some of to solve with legislation—we ought to Now, he made another comment that these big grain companies and packers solve farm prices with legislation; we I found fascinating, from a personal so family farmers can get a fair shake ought to solve preparation for school point of view. He said that, of course, in the marketplace, I am for putting with legislation; we ought to solve edu- the big banks don’t like CRA because it more free enterprise back into the food cation, generally, with legislation; we forces them to do what they should be industry. It is the big monopolies I ought to solve the amount of money doing. He stands up for the little banks don’t care for. These farmers have people earn with legislation, and on that he wants to protect from the big every reason to wonder what we are down the list—he reminds me of a com- banks that, in his view, want to gobble doing here. ment that I found very insightful that them up. In my experience with this I will tell you one more time that the was made by a head of state in another legislation, it has been exactly the re- people in the cafes I have been in are country as I was visiting there. This verse. The big banks have said to me: not talking about this particular legis- man said to me, ‘‘Politicians think We don’t much care about the CRA lation; they don’t see this as a crisis. that money comes from the budget.’’ provisions. We have learned to live Alan Greenspan may see the world in a Money does not come from the budget. with CRA. We have learned to handle very different way than people in the Money comes from the economy. If the our banking practices in such a way cafes in Minnesota, and so might the economy doesn’t work, there is no that gets us appropriate CRA ratings. Secretary. Certainly these financial in- money in the budget. And if I may, Mr. And some of the big banks have said: stitutions do. Certainly Wall Street President, I think that discussing fi- Don’t pay any attention to the CRA does. nancial modernization has a great deal amendments in this bill because we can But people in Minnesota are not par- to do with all of the issues that the live with them just fine. No. The pro- ticularly interested in mergers, acqui- Senator from Minnesota was discussing test about CRA has come, ironically, sitions, and all this consolidation of because it has to do with the health of given the position of the Senator from power. They are interested in a good the economy. Minnesota, from the small banks, the job at a good wage. Why aren’t we out If the banking system, the financial little bank. here talking about raising the min- system, and the economy does not Let me give you an example that I imum wage? work efficiently, if it does not work have heard of, secondhand, but I think They are interested in not falling be- carefully and properly, the economy as summarizes what we are dealing with tween the cracks when it comes to a whole will suffer, the amount of tax here. I have heard of a bank in Cali- health care coverage. Why aren’t Sen- revenue coming into the Government fornia that was opened by a group of ators talking about decent health care will suffer, and we can have all of the Chinese Americans. What do you do in coverage for people? They are inter- discussions we want about solving all the marketplace when you are trying ested in how they can afford prescrip- of the social problems with legislation, to find a niche that will allow you to tion drugs. Why aren’t Senators talk- and then we will turn around and find survive, whether you are in the banking about affordable prescription drug that the cupboard is bare. ing business, or the clothing business, coverage for seniors, and, for that mat- It is very important that we recog- or the automobile business, or what- ter, for all of us? They are interested in nize the impact of this legislation on ever kind of a business? You do look how there can be a decent education the Nation’s economy. As I said in my around for some community that is not for their children. Why aren’t Senators question to my friend from Minnesota, being served properly, and say to your- having a major debate about education we heard testimony in the Banking self, ‘‘I can fill that niche.’’ The oldest or getting resources to communities so Committee from the member of the ad- business advice in the world is find a we can do a better job of educating our ministration most charged with focus- need and fill it. Here were a group of May 4, 1999 CONGRESSIONAL RECORD — SENATE S4639 Chinese Americans who decided that comes up. I simply wanted to make getting the people’s ownership of the other Chinese Americans for some rea- those points in response to the points means of production through cap- son or another were not getting access that were made by my friend from Min- italism rather than through the forced to the credit they needed. They found nesota, because he is very clearly talk- distribution of wealth that Karl Marx this need and they hoped they could fill ing to different people than I am talk- and his followers practiced in modern it. They did. They were successful. ing to. He is talking to the people in communism. They prospered. the crossroads cafes. And I think that Having given that reaction to the po- Then comes the CRA regulators, and is fine. But I think when it gets to the litical science lecture from my friend, they said, ‘‘Let us see your books. Let issue of banking regulation, he might who was once a professor of political us look at your loans.’’ They came spend some time talking to people who science—I was never a professor, but I back and said, ‘‘You are only making run banks and talking to people who was once a student of political science, loans to Chinese Americans. That is, borrow from banks. and I like to engage in these kinds of you are not complying with the Com- He made another point that I will debate—I would like to say just a few munity Reinvestment Act that re- talk about and then get specifically to words about the bill. quires you to make loans to Hispanics the bill. The fact that it is just a few words is or African Americans or other minori- He talked about the concentration of a testament to the expertise of our ties that we, the regulators, will iden- power, and he railed at great length chairman who has worked harder and tify and determine.’’ The people at this against corporations that he felt were more personally on a piece of legisla- bank said, ‘‘Of course we are only mak- destroying our democracy. ‘‘Fewer and tion than any chairman I have ever ing loans to Chinese Americans. That fewer people,’’ he said—I wrote that seen. We have resolved the controver- is what we set up to do. That is the phrase down—are controlling our eco- sies in this legislation to the point market we set up to serve.’’ ‘‘Well, you nomic power. where there are only a few left. The will accept the penalties and strictures I want to share a statistic that I saw Senator from Texas has led the fight in of CRA regulation if you do not go out in the paper last week that has an in- doing that. and find statistically enough African teresting slant on this. When we first started this, when I Americans and Hispanics to meet our Back in, say, 1950—my memory is not first came to the Banking Committee, requirements.’’ sharp enough to give you the exact the number of issues was huge and the This was a community that these year, but it was sometime in the gap between those issues was very Chinese Americans did not understand 1950s—the percentages of Americans wide. I would go out and people would instinctively. This was the community who owned stock in corporations was 4 ask me where we were on financial that they were not set up to serve. percent. Today it is over 50 percent. modernization. Unlike my friend from Maybe you can say that it was a good I would say to those who, like my Minnesota, I did get those questions. I kind of thing for them to reach out be- colleague from Minnesota, are con- would go out in places where people yond their natural business area and cerned about the concentration of were interested. And I would say restart serving these other sectors, but it power in the hands of a few people, who peatedly through my first term of serv- created a burden on this small bank, does he think owns Citibank? Who does ice in the Senate that we were nowhere and it was a very small bank that the he think owns these corporations that and we were not going to have finan- managers of the bank objected to. he says are so terrible? They are owned cial modernization legislation, because In my own State of Utah, I get the by Americans. They are owned by indi- the issues were so contentious and the gap between the two sides was so great same reaction. The big banks don’t viduals. Fifty percent of Americans that we were simply not going to get it much care about CRA. They don’t like now own stock, and the number is done, and, quite frankly, I was not pay- it. They find it burdensome. But they going up all the time. have learned to live with it. Banks that This is one of the reasons that the ing any attention to it for that reason. have written in that are complaining class warfare arguments that we have I didn’t want to waste my time becoming cognizant of all of the ins and outs are the little banks, and they are com- heard around this Chamber for so long of these arguments when the argu- plaining for the same reason in the ex- are beginning to wear thinner and thin- ments were going nowhere, and the leg- ample that I have given. They feel they ner, because the people who own the are serving their communities and they islation was going nowhere. corporations are ordinary, everyday, We made a major step towards re- are being forced to try to reach beyond hard-working Americans. The days of their natural communities to try to solving these last year when Senator J.P. Morgan being the controller of D’Amato was the chairman of the com- find somebody who can statistically these institutions are over. J.P. Mor- qualify under CRA. mittee, and we finally began to grapple gan is dead, his heirs scattered, and the This is from a very small bank in with some of these issues and tried to controlling shareholder ownership of Utah. The President of the bank says, bring them closer together. But Sen- these corporations is in the hands of ‘‘We have and will continue to lend to ator GRAMM has brought us even closer all segments of our community because the teachers’ pension fund—in the together and produced a bill on which it has been defined by regulation. The hands of ordinary people who have in- there are now only relatively few time spent documenting our commu- vested their savings in these corpora- issues in contention rather than the nity lending efforts for regulatory pur- tions and have a stake in seeing to it great many issues that were in conten- poses is in itself counterproductive, as that these corporations survive. That tion 4 or 5 years ago. we could instead redirect our energies is why the class warfare arguments get I think that is an extraordinary toward additional lending and commu- thinner and thinner with each passing achievement, not only on the part of nity development activities.’’ year. the chairman who has led the issue, In other words, they are spending We are in a sense, Mr. President, but, frankly, on the part of the com- more time filling out forms for CRA turning Karl Marx on his head. He mittee as a whole. The fact that we are than they are investing in their com- wanted the people to own all of the having this debate when we should munity. means of production. That was tried in have been having it a few years ago, ac- Another one from a very small town the Soviet Union in the name of the cording to those who are following the in Utah, and it is surrounded by the government as they attacked the ter- issue, demonstrates how far we have family farmers that the Senator from rible capitalists in the United States, come. Minnesota was talking about: ‘‘Ex- and ironically it is the capitalists that This reminds me in some ways of the empting our institution from CRA re- are seeing to it that the people ulti- debate we had in the telecommuni- quirements would allow bank personnel mately own the means of production, cations bill where we had huge forces to spend more time with our customers but they own the means of production on both sides of the issue struggling, and developing new products rather in their own name with shares held in literally, for survival. We had tele- than gathering information to satisfy their own name, which they can con- phone companies, cable companies, CRA documentation requirements.’’ trol and which they can vote and which long-distance carriers, local carriers, We will have a great deal more to say they can sell if they don’t like what all fighting over what would happen to about the CRA issue, I am sure, when it the corporation is doing. And we are their future. S4640 CONGRESSIONAL RECORD — SENATE May 4, 1999 We finally came together on a bill stitute. Members desiring to speak on have only between 6 and 10 employees. that virtually everybody could buy off the bill before the substitute is pend- Since 1990, in 16,000 audits of these on. They weren’t happy with it, but ing, should come on over. small, rural banks, only three banks they said they could live with it. We Mr. President, I will respond very have been found to be in substantial made a landmark step forward in tele- briefly to our dear colleague, Senator noncompliance. communications. WELLSTONE. Senator WELLSTONE gave Every word that the Senator said I think that analogy holds true here. an impassioned plea not to repeal CRA. about not repealing CRA I am sure res- Insurance companies, when I first came Let me say that one of my great frus- onated, but it doesn’t have anything to to the Senate, were bitter in their op- trations with our efforts to reform do with the debate we are having. No- position to any kind of change that CRA and curb abuses in CRA is that body is proposing we repeal CRA in would affect them; banks were nobody wants to debate the reforms. this bill. We are talking about two tar- chomping at the bit for more competi- Even the spokesman for the national geted reforms. I don’t want anybody to tive opportunities and complaining association of the community groups get confused. that laws passed in the 1930s were that form the heart of CRA has said Senator DODD has come to the floor. freezing them out; testimony which I what they call ‘‘green mail’’ exists. I yield the floor. Mr. DODD addressed the Chair. have referred to from Chairman Green- They think it is harmful to CRA. Most The PRESIDING OFFICER. The Sen- span and Secretary Rubin indicated we Americans would call that process ator from Connecticut. are being savaged by foreign competi- ‘‘blackmail’’ and not ‘‘green mail.’’ Mr. DODD. Mr. President, I have notion because our regulatory structure I think many people have had at ticed over the last week every time I gets in the way; the securities industry least their eyebrows raised by the fact get up to give a talk, the Senator from and all the other folks, everybody that $9 billion in cash payments have Idaho is in the Chair. agreed we needed reform but nobody been made or committed under CRA. The PRESIDING OFFICER. I love to could agree on the form of that reform. CRA is not about giving people money hear the Senator’s speech. Now we have a bill before the Senate not to testify against your bank merg- Mr. DODD. I enjoy the Senator’s that, however reluctantly, the insurer, or to testify for it; instead, CRA is collegiality and leadership. It is nice to ance companies have said, ‘‘We can live about giving people an opportunity to have the distinguished Senator from with,’’ and the banks have said, ‘‘We have input and present evidence as to Idaho as a new Member of the Senate. can live with’’—the big banks and the whether they are meeting the require- Let me begin these brief remarks by little banks that are not usually on the ments of the law. commending the distinguished chair- same page on everything; the insurance I don’t know what any judicial proc- man of the committee, Senator agents and the insurance companies ess—and this is a quasi-judicial proc- GRAMM, and the ranking Democrat, are not necessarily always on the same ess, I guess you could say—how anyone Senator SARBANES, for their efforts on page. would not be revolted by the practice this legislation to date. We have reconciled these various in- of paying witnesses. In essence, as I have been on the Banking Com- terests now. The regulators have said Members will see when we begin the de- mittee, and in fact I sat with my col- they can live with this and that. There bate on CRA and we show some of the league from Maryland. I have been in is only one major regulatory argument documents with the names redacted, the Congress 24 years, and I think for left, and we will do our best to work that is exactly what is happening all almost all 24 years he has been my our way through that one and find a over America today. seatmate—usually depending on where compromise. The point I make about CRA is no we were, the majority or the minority, The time to pass the bill is now. The one is talking about repealing CRA. to the left or right of me—almost all 24 moment has come when all of these This is not a debate about repealing or years on one committee or another, in- forces are together. Let us not waste weakening CRA. This is a debate about cluding service in the House, in the Ju- that moment. Let the Senate not shat- integrity of banks that have long- diciary Committee, and then over these ter it all and say we will deal with it standing records of compliance, and last 18 years in both the Foreign Rela- later. The forces of competition that whether somebody just by calling them tions Committee and the Banking led Secretary Rubin and Chairman a name—by saying they are a loan Committee. I have been fortunate to Greenspan to speak of the urgency of shark, they are a racist, or some other have his good counsel and advice, and this are still there and their pressures inflammatory name—should be able to admired his leadership and thoughtful- are still there. The passage of time, as delay actions that they are guaranteed ness on so many issues. This is one we get farther and farther away from on an impartial basis under the law. which I constantly feel like the mytho- the 1930s when our present regulatory All our provision in the bill says is logical figure of Sisyphus, rolling up structure was put in place, is not on that if a bank is going to be denied the this rock of financial services mod- our side in terms of making the finan- ability to do something that they ernization every Congress. I do not cial services in this country efficient, would have to be in CRA compliance think there is one we have missed since more effective, and more competitive. for, and they have a long history of my arrival in this Chamber 18 years We need this bill. We need it now. We being in compliance on CRA, then ago, not one Congress in which we have should not lose the opportunity we those people who object—for their ob- not tried to address the issue of mod- have to seize the moment while there jection to be used to delay the proc- ernization of financial services. On nu- is a degree of agreement among all of ess—have to present substantial evi- merous occasions, the Senate, this the parties of the bill to get it done. dence. body, actually completed its work but, I salute the chairman for his personal Now, ‘‘substantial evidence’’ is de- because of bifurcated jurisdictions and effort in getting us where we are. I fined in law more precisely than any other matters in the House, we were urge the Senate to pass the bill. other term of art in the American legal never able to attain success; that is, Mr. GRAMM. Mr. President, let me system: more than a scintilla of evi- sending a bill, a broad bill on financial thank our dear colleague from Utah for dence; facts that would lead a reason- modernization, to a President, any of his very fine comments. Any colleagues able person to think that something them that I served with—including who want an opportunity to speak on might be true. President Reagan, President Bush, and the bill should come to the floor to be We are talking about the lowest now President Clinton. afforded that opportunity. At some standard of law, not the highest stand- But we are precariously close to point, if we don’t have people over to ard. achieving a result that has been unat- speak on the bill, Senator SARBANES, The second provision in out bill tainable over the last number of years. under the unanimous consent request, would allow very small banks in rural The fact that we are dealing with this will offer his substitute. Members can areas that don’t have a city to serve, legislation as early as we are in this wait and speak on that substitute, if much less an inner city, to be exempt Congress is heartening to me, because the Senator chooses to offer it, and ob- from a regulatory burden that costs it means we have in front of us an op- viously if you want to speak about the them between $60,000 and $80,000 a year, portunity to complete action on what I bill itself, you can do it on the sub- even though these banks generally think is a worthwhile endeavor. May 4, 1999 CONGRESSIONAL RECORD — SENATE S4641 Again, let me commend my two col- is very important legislation because mortgage and small business credit to leagues who are making it possible for the courts, and in too many cases the rural and urban Americans, allowing us to arrive at the point where we are regulators, do not bring to bear the them to participate with equal oppor- on the floor of the Senate. Over the kind of consumer issues that only a tunity to expand their financial gains next several days we will consider, I as- public policy forum like the Senate can and opportunities in this country. sume, a number of different amend- do. As you know, this bill as drafted will ments that will, I hope, allow us to When the issue is raised where is the be vetoed by the President. We usually bring broad-based support to this pro- consumer in this legislation, in fact receive a statement of administration posal and to enter a conference with the consumer is all through this bill. It policy written by the appropriate de- the other body and send a measure to is our goal here to see to it that they partment head. Only on rare occasions the President which he can sign. will be able to conduct their financial does the President of the United States That is a lot of steps in front of us. I matters, financial business in a way write a personal letter prior to com- realize that. But if you know the past that conforms to the lives and demands mittee markup, stating his concerns history of this legislation, they seem of consumers in this country, and that and articulating his promise to veto a like minor steps indeed, when you con- will also better equip them with pro- bill if certain provisions are not re- sider we rarely reach the point we are tections in dealing with other matters solved. Of primary importance to the today. in securities and insurance issues. President is the preservation of the Let me also, once again, in this This bill also protects the traditional Community Reinvestment Act in the forum here, commend my colleague right of States to regulate insurance, context of any financial modernization from Texas, Senator GRAMM. This is something that has been subject to legislation. his first major legislative effort as longstanding debate. This will codify I will say very directly—I say this to chairman of the Banking Committee. at the end of the 20th century how we my colleagues, whom I know have a He has had other major legislative ef- in Congress feel about that issue, while different point of view. If this bill is forts but never as the chairman of this at the same time will provide for func- not changed to address various CRA committee. He deserves all due credit tional regulation of all financial insti- concerns, the President of the United for his contributions to this bill. Few tutions. That has been an ongoing de- States will veto this bill. And that committee chairmen have more per- bate for years, and one that the adop- mythological figure of Sisyphus will, sonally invested themselves in a piece tion of this bill would establish firmly once again, rear his head at the close of of legislation than he has. As I said a as we enter the 21st century. the 20th century and we will fail in our moment ago, my colleague and friend But I believe the outstanding issues, attempts to modernize financial serv- from Maryland brings a career’s worth such as banking and commerce, the op- ices. of experience in dealing with financial erating subsidy of affiliate structure That would be a great misfortune. services issues, both domestic and and additional consumer protections, But I say as well that to pass a piece of international. His counsel and advice can and will be worked out in a reason- legislation as we end the 20th century, and words of wisdom ought to be heed- able fashion. However, I must share my about to begin the 21st, and to dis- ed. deep frustration, frankly, and great regard the principles and values incor- The legislation before us does address concern over the future of financial porated in the Community Reinvest- some very, very important issues, out- services modernization legislation. ment Act, also, in my view, would be a standing issues. It provides a frame- During my tenure, as I said a moment tragedy of significant proportion. work for modernization of our Nation’s ago, in the Senate, I, like many of my The veto of this bill as written is cer- financial services. It allows banks and colleagues, have invested a significant tain, as certain as our ability to avoid securities firms, as I know you have amount of time and effort attempting it. We should understand who supports heard from both the chairman of the to enact modernization legislation. I this attack on the CRA provisions con- committee and the Senator from Mary- am of the belief that it is vital to the tained in this bill. The attack has not land, and insurance companies, to affil- future of America’s financial services been sought by the industry, which is iate. It provides a rational process, we industries and important to consumers normally the case. There is no con- think, for these affiliations to take as well. stituency of support for them. The sup- place. This process has not been an easy port of this legislation is not contin- Although it needs to improve, in my one. Finding the delicate balance of gent on the inclusion of CRA provi- view this bill provides some significant protecting consumers while at the sions. Banks are in the midst of their benefits and protections to consumers same time creating a regulatory frame- 7th year of record profits with CRA as who would not only benefit from these work that fosters market efficiency the law of the land. diversified firms but who would also and industry innovation has been a dif- Over the years, at the request of in- benefit from having standardized and ficult and a long task. I had hoped that dustry and appropriate regulators, comprehensive protections for the sale by today I would be speaking on behalf CRA has been simplified and modified of securities and insurance products. of the merits of a bipartisan legislative to be far less invasive to depository in- Let me add right here, these are ar- approach. I had hoped to speak on be- stitutions. The fact of the matter is cane subject matters. Sometimes we half of a bill that last year received the that banks care little about changing are asked where the consumer protec- overwhelming support of the Senate CRA. The attack on CRA is truly sup- tions are in this bill; where is the con- Banking Committee by a vote of 16 to ported only by a few people. I say again sumer in this legislation? The con- 2. Just recently, similar legislation with deep respect to my colleague and sumer is all through this bill, in a passed the House Banking Committee friend from Texas, who cares deeply sense. First and foremost, the con- by a vote of 51 to 8. Instead, I reluc- about this issue, as does the senior sumer is there because consumers are tantly rise to express my deep concerns Senator from Alabama: I respect their seeking to handle their financial mat- about the legislation before us that at- points of view. I disagree with them ters in a more expeditious way, know- tacks what I consider to be one of the fundamentally. I respect their points of ing they have broad, comprehensive most important laws in our Federal view. But there are really no other con- protections. code, the Community Reinvestment stituencies that I can find who share In many ways, this legislation is try- Act, CRA, of which you are going to their point of view on this issue. There ing to catch up with what already is hear a great deal in the coming days. are many people who have a different occurring in the marketplace, both at The attack on CRA contained in this point of view, including financial insti- home and abroad. By regulation and legislation is clear, in my view, and un- tutions, consumer groups, and others court decision, much of our moderniza- mitigated. It broadly exempts deposi- about the importance of extending the tion is occurring. What we are seeking tory institutions from CRA. It at- CRA provisions. to do here is involve ourselves, as we tempts to address a problem that sim- Let me reiterate, if I can. The Presi- should have been years ago, in setting ply does not exist, and in the process, dent of the United States, all Federal out the guidelines of modernization in my view, does great harm to a law regulators, industry, 51 of the 60 Demo- from a public policy standpoint. So it that has brought billions of dollars in crats and Republicans in the House S4642 CONGRESSIONAL RECORD — SENATE May 4, 1999 Banking Committee, 16 of the 18 Demo- fore us today would send, in my view, The PRESIDING OFFICER. Without crats and Republicans in the Senate Rosa Parks and many others to the objection, it is so ordered. Banking Committee, all support the back of that bus economically. They Mr. BYRD. Mr. President, is time preservation of CRA. would directly hurt minorities and under control? While not perfect—and no one is ar- rural citizens by restricting their right The PRESIDING OFFICER. There is guing that it is—CRA, in my view, and to pursue the American dream to own no control of time. in the view of many others, has been a home, start a small business, to re- Mr. BYRD. I thank the Chair. truly a success story. ceive fair access to credit. I presume that the Pastore rule has Between 1993 and 1997, the number of Despite my strong support for finan- expired for the day? conventional home mortgage loans ex- cial services modernization—and, Mr. The PRESIDING OFFICER. It extended to African Americans increased President, it is very strong, indeed—if pired at 1:15 this afternoon. by over 70 percent. Let me repeat that. the price of modernization is the denial Mr. BYRD. I thank the Chair. Between 1993 and 1997, the number of of financial services in the 21st century Mr. President, I ask unanimous con- conventional home mortgages extended to rural Americans, African Ameri- sent to speak for not to exceed 5 min- to African Americans increased by over cans, Asian Americans, Hispanic Amer- utes out of order. 70 percent. icans, and Native Americans in the The PRESIDING OFFICER. Without Over the same period, the number of country, then I am unwilling to pay it. objection, it is so ordered. home mortgage loans increased 45 per- I strongly urge my colleagues to sup- Mr. BYRD. Mr. President, over the cent for Hispanics, and 30 percent for port Senator SARBANES’ substitute weekend, a glimmer of light broke Native Americans. amendment and Senator BRYAN’s CRA through the war clouds shrouding According to the Small Business Ad- amendment. In my view, if these meas- Yugoslavia. That light was kindled by ministration, loans to African-Amer- ures are improved, as I believe they the release of the three American sol- ican-owned businesses doubled between should be, then I think we would have diers who have been held hostage in the the years of 1993 and 1997. a strong bill. Federal Republic of Yugoslavia since More than $1 trillion has been lever- There are a lot of other amendments their capture by the forces of Yugoslav aged under CRA—credit for home mort- that may be offered. There is a debate President Slobodan Milosevic on March gages, small businesses, and other pur- over the op-sub and the affiliate issue. 31. The individual responsible for this poses—that has enabled creditworthy I think that is an important issue. I remarkable turn of events is the Rev- citizens, minority creditworthy citi- think the issue of privacy in financial erend Jesse L. Jackson. For his efforts, zens to improve their economic status dealings is an important issue. And he has earned the thanks of a grateful and that of their families in both rural there are many other matters that nation. Due to the faith and determina- areas and inner cities. may be raised. tion of Mr. Jackson, the Reverend Joan We should not retreat from these But, in my view, nothing—nothing— Brown Campbell of the National Coun- laudable goals if we are going to make is as important as whether or not we cil of Churches and the delegation of the modernization of financial services are going to provide equal access to our religious leaders that Mr. Jackson led conform with the modernization of a financial institutions to all Americans. to Yugoslavia, in this one small corner society that reaches out to each and The Community Reinvestment Act has of a terrible conflict, good has tri- every sector of that society to see to it made a significant contribution to umphed over evil. that they have the equal opportunity tearing down the barriers that have ex- I have no doubt but that the motives to invest and to grow and to enjoy the isted far too long and has provided the of President Milosevic in freeing the full benefits of being Americans. access to credit, home mortgages, and American servicemen will be analyzed, Despite these strides, CRA has not improving the financial future of too dissected, and ruminated on by the erased all lending discrimination in many of our citizens to retreat now. To commentators in the coming days. De- this country. back up on a major, major bill such as spite all the conjectures, we may never In 1997, mortgage loans for African this, I think, would be a great retreat, know what he was hoping to achieve. Americans, Native Americans, and His- indeed. Surely Milosevic will be disappointed if panics were denied at a rate of more So as strongly as I support the con- he believes that this gesture, welcome than twice those of white mortgage ap- cepts included in the fundamental fi- as it is, will blind the United States plicants of similar incomes. For both nancial modernization bill, Mr. Presi- and the rest of NATO to the atrocities urban and rural areas, CRA has played dent, I could not support a bill that that he is inflicting on the ethnic Alba- an invaluable role in economic develop- treats too many of our Americans un- nian population of Kosovo. ment. fairly as they presently are by retreat- But in contrast to Mr. Milosevic, we I recently received a letter from the ing on Community Reinvestment Act do know what the Reverend Mr. Jack- U.S. Conference of Mayors, signed by provisions. son was hoping to achieve. the mayors of nearly 200 towns and cit- So I urge my colleagues, those who He has faced some of the most ruth- ies of all sizes, from New Haven, CT, to care about financial modernization, less strongmen in the world, including Houston, TX. Let me quote them. It those who care about civil rights and Syrian President Hafiz Assad, Cuban states: care about access to financial institu- President Fidel Castro, and Iraqi Presi- The Community Reinvestment Act has tions, to support the substitute, sup- dent Saddam Hussein. played a critical role in encouraging feder- port the CRA amendments. I think In 1984, Mr. Jackson won the release ally insured financial institutions to invest then we would have a strong bill, and from Syria of Navy Lieutenant Robert in the cities of our nation. remaining issues could be resolved Goodman Jr., who was shot down over The letter goes on further and says: without too much difficulty. But a bill Lebanon. That same year, he persuaded Unless the onerous CRA provisions are ad- that fails to address this issue is a bill Castro to release 48 American and dressed and the CRA is preserved, we would that, in my view, will not pass and will Cuban prisoners. In 1990, he helped to urge strong opposition to the Senate bill as not be signed into law, and it would be win freedom for more than 700 for- presently drafted. an unfortunate, unfortunate day, in- eigners who were being detained as Urban areas are not the only bene- deed. human shields by Saddam Hussein fol- ficiaries of CRA. CRA loans assist Mr. President, with that, I yield the lowing the invasion of Kuwait. His trip small farmers in obtaining credit for floor and suggest the absence of a to Yugoslavia marks the fourth time operating expenses, livestock, and real quorum. that Jesse Jackson has won freedom estate. The PRESIDING OFFICER (Mr. GOR- for hostages. Less than a month ago, we voted TON). The clerk will call the roll. In the faces of the freed soldiers and unanimously to award a Congressional The assistant legislative clerk pro- their families, I am reminded once Medal of Honor to Rosa Parks. As we ceeded to call the roll. again that faith can move mountains. I all know, Ms. Parks led the fight in Mr. BYRD. Mr. President, I ask unan- salute the Reverend Mr. Jackson and this country for racial equality. The imous consent that the order for the his delegation for their remarkable CRA provisions in this bill we have be- quorum call be rescinded. success. May 4, 1999 CONGRESSIONAL RECORD — SENATE S4643 Mr. President, as a mark of respect ernization bill. I supported this legisla- From the Kirk State Bank: for Mr. Jackson and the delegation of tion as a member of the Banking Com- As a small rural bank, the CRA is a bur- church leaders, I am today submitting mittee, and I commend Chairman densome regulation. In reality, small banks a Sense of the Senate Resolution com- GRAMM for the excellent work he has and small communities have to be good commending Mr. Jackson for the deep faith done in bringing this bill to the floor. munity citizens to be successful and a bu- that marked his mission to Belgrade, The chairman has worked very hard to reaucratic regulation does nothing to im- and for his successful efforts to free craft a bill that makes sense. It is bal- prove the situation. Staff Sergeant Andrew A. Ramirez of anced and will benefit our economy. Mr. President, I ask unanimous con- California, Staff Sergeant Christopher This legislation is designed to mod- sent to have the text of these letters J. Stone of Michigan, and Specialist ernize America’s financial services in- and others from Colorado bankers Steven M. Gonzales of Texas. We wel- dustry by providing a sensible frame- printed in the RECORD. work for the affiliation of banks, secu- come these soldiers home with open There being no objection, the mate- rities firms, insurance companies, and arms. We also salute the brave men and rial was ordered to be printed in the other financial institutions. It is, of women of our armed forces who remain RECORD, as follows: in harm’s way in the Balkans. Their course, very difficult to craft a com- THE FIRST NATIONAL BANK courage and patriotism, and the dedi- promise that is acceptable to many diverse interests, but it is necessary that OF STRATTON, cation and sacrifice of their families, Stratton, CO, March 29, 1999. are appreciated and honored by all we do so. Hon. PHIL GRAMM, Americans. Much of our financial services indus- Chairman, Committee on Banking, Housing and Mr. President, I ask unanimous con- try is governed by laws written in the Urban Affairs, U.S. Senate, Washington, sent that I may send the resolution to 1930s. Congress has struggled with this DC. the desk and that it be held there until issue for many years. I am hopeful that DEAR SENATOR GRAMM: Your amendment the majority leader and the minority this is finally the year we enact this removing the CRA requirement will have a leader decide upon a proper disposition legislation. positive benefit for small community banks of it, but that it can’t be held longer I will focus my comments on several located in Non-metropolitan areas. As a small community bank in a town of 700, the than a day, the end of business today. issues concerning community banks. In Colorado, the community bank is employees and the bank’s officers are al- The PRESIDING OFFICER. Without ready involved in literally everything going objection, it is so ordered. an important institution. It is the center of many of our towns and rural on in the town. The CRA requirement pro- Mr. GRAMM. Mr. President, I ask the vides a burdensome paper and personnel re- distinguished Senator from West Vir- areas. I have worked hard to represent quirement for small community banks. ginia to add me as a cosponsor to that their interests in the Banking Com- Your support of this amendment is greatly resolution, if he would. mittee. I am a supporter of the provi- appreciated. Mr. BYRD. I thank the distinguished sions in this bill to exempt small rural Yours Truly, Senator. Mr. President, I make that re- banks from the Community Reinvest- DANA M. SIEKMAN, quest. ment Act. For small banks, the CRA, Vice President. The PRESIDING OFFICER. Without or Community Reinvestment Act, is a objection, it is so ordered. regulatory burden. While a large bank FIRST NATIONAL BANK, CORTEZ, Mr. BYRD. Mr. President, I have re- can often devote an entire department Cortez, CO, March 30, 1999. Hon. PHIL GRAMM, trieved my resolution from the desk. I to CRA compliance, a small bank has to divert scarce resources toward com- Chairman, Committee on Banking, Housing and ask unanimous consent that S. Res. 94 Urban Affairs, Washington, DC. be printed in the RECORD. pliance. Each of these small banks is required to undergo regular exams and DEAR SENATOR GRAMM: Thank you for your There being no objection, the resolu- letter of inquiry regarding our position on tion was ordered to be printed in the actually designate a CRA compliance your amendment to exempt banks less than RECORD, as follows: officer. This makes little sense when $100 million in aggregate assets from the S. RES. 94 one recognizes that small rural banks CRA regulation. could not survive if they did not invest Whereas on March 31, 1999, Staff Sergeant Needless to say, I am very proud of you and Andrew A. Ramirez, Staff Sergeant Chris- in the community. Frankly, where else your committee and strongly desire that this topher J. Stone, and Specialist Steven M. could they put their money? amendment be passed. Gonzales were taken prisoner by the armed I will read a few excerpts from Colo- In our bank, our compliance officer spends forces of the Federal Republic of Yugoslavia rado banks on this very important a great deal of time preparing documents for while on patrol along the Macedonia-Yugo- point. the CRA file and Bank Examiners. We esti- slav border; From the First National Bank of mate that it takes 80 to 100 hours each year Whereas Sergeant Ramirez, Sergeant Stratton: to update the CRA file, and to date, we have Stone, and Specialist Gonzales conducted Your amendment removing the CRA re- never had a customer request to see the file. themselves throughout their ordeal with dig- quirement will have a positive benefit for Of course the Bank examiners do request nity, patriotism, and faith; small community banks located in non- this information. We find that this regula- Whereas the Reverend Jesse Jackson led a metropolitan areas. As a small community tion is completely worthless and of no ben- delegation of religious leaders to the Federal bank in a town of 700, the employees and the efit at all. Republic of Yugoslavia that succeeded in ne- bank’s officers are already involved in lit- Also, in my opinion the whole CRA regula- gotiating the release of Sergeant Ramirez, erally everything going on in the town. The tion should be disposed of, since it does not Sergeant Stone, and Specialist Gonzales; and CRA requirement provides a burdensome apply to others in the financial industry. Whereas the Reverend Jesse Jackson has paper and personnel requirement for small Very truly yours, previously succeeded in securing the release community banks. DONALD G. HALEY, of hostages held in Syria, Cuba, and Iraq: President. Now, therefore, be it Remember, this is coming from a Resolved, That— bank in a town of only 700 people. THE FIRST NATIONAL BANK, (1) the Senate commends the Reverend Then from the First National Bank Jesse Jackson for his successful efforts in se- of Cortez: Las Animas, CO, March 29, 1999. Hon. PHIL GRAMM, curing the release of Sergeant Ramirez, Ser- In our bank, our compliance officer spends Chairman, U.S. Senate Committee on Banking, geant Stone, and Specialist Gonzales, and for a great deal of time preparing documents for his leadership and actions arising from his Housing and Urban Affairs, Washington, the CRA file and Bank Examiners. We esti- DC. deep faith in God; and mate that it takes 80 to 100 hours each year DEAR SENATOR GRAMM: I appreciated your (2) the Senate joins the families of Ser- to update the CRA file, and to date, we have letter of March 22, inquiring about the finan- geant Ramirez, Sergeant Stone, and Spe- never had a customer ask to see the file. cial services modernization bill and the ex- cialist Gonzales in expressing relief and joy Then from the First National Bank at their safe release. emption from the requirements of CRA for in Las Animas and La Junta: smaller rural banks, such as our own. Al- Mr. ALLARD addressed the Chair. I strongly support the provision to remove though I do not believe many of the aspects The PRESIDING OFFICER. The Sen- the onerous requirements of the CRA from of the financial services modernization bill ator from Colorado. small rural banks. We serve our communities are in the best interest of our nation I Mr. ALLARD. Mr. President, I rise in well and if we do not serve the needs of our strongly support the provision to remove the support of S. 900, the financial mod- community we will not exist. onerous requirements of the CRA from small S4644 CONGRESSIONAL RECORD — SENATE May 4, 1999 rural banks. We serve our communities well Our directors, officers and employees, for of America Association and American Bank- and if we do not serve the needs of our com- the most part, were born and raised in this ers’ Association that this loophole allows the munities we will not exist. The CRA require- community and they volunteer untold num- mixing of banking and commerce and the ments, are in many cases, counter-produc- bers of hours to community organizations entry of non-federally insured entities to the tive and anything that can be done to re- and governmental agencies. While attending payments system and discount window. move the bureaucracy involved in that would these events, we have and take the oppor- Without a payments system reserved solely be appreciated. Thank you again for solic- tunity to listen to the needs of the commu- for federally insured financial institutions iting input. nity and to communicate our products and the future of community banking is doubt- Sincerely, services accordingly. We often develop new ful. Community banks cannot compete effec- DALE L. LEIGHTY, products and services, or actually sponsor tively against a combination of the coun- President. events, to satisfy specific needs based on try’s largest banking, financial and commer- feed-back we have received from the commu- cial firms. These combined entities would THE KIRK STATE BANK, nity. own and control products and services vital Kirk, CO, March 31, 1999. The present CRA examination procedures to the continuing viability of community Senator PHIL GRAMM, for small banks have already been simplified banks. Moreover, they would control access U.S. Senate, Committee on Banking, Housing to the point, that the remaining procedures to the payments system the lifeblood of com- and Urban Affairs, Washington, DC. are nothing more than an exercise in futil- munity banks and communities throughout DEAR SENATOR GRAMM: Thank you for your ity. The results prove nothing that the ex- Colorado and the nation, especially of our letter of March 22, 1999 regarding the CRA aminer doing the work and the bank being rural community banks and communities. Amendment. examined does not already know. The bank For these same reasons, we oppose any As a small rural bank, the CRA is a bur- is truly meeting the community’s credit commercial basket that allows a bank to in- densome regulation. In reality, small banks needs and there is no discrimination or red- vest its revenues in commercial firms-the in small communities have to be good com- lining taking place. Eliminating small rural mixing of banking and commerce. Commu- munity citizens to be successful and a bu- banks from any and all CRA requirements nity banks cannot compete effectively reaucratic regulation does nothing to im- would be cost effective and will permit bank against financial and commercial conglom- prove the situation. examiners to focus on safety and soundness erates that will control a variety of commer- Very truly yours, areas that are truly meaningful and effective cial and consumer markets. L.E. HOUSE, in the examination process. We support an increase in community bank President. Respectfully yours, access to the Federal Home Loan Bank (FHLB) by according membership to the WILLIAM H. PAOLINO, FOOTHILLS BANK, Sr. V.P. and Cashier. FHLB for all banks less than $500 million in Wheat Ridge, CO, April 13, 1999. assets and by including agricultural and small business paper as eligible collateral. Hon. PHIL GRAMM, PAONIA STATE BANK, Chairman, Banking Committee, U.S. Senate, Paonia, CO, April 1, 1999. Alternative sources of funding are becoming increasingly expensive for community banks Washington, DC. Senator PHIL GRAMM, DEAR SENATOR GRAMM: The Community to acquire. Increased access to the FHLB Chairman, Committee on Banking, Housing, & Reinvestment Act has outlived it’s useful- will help to ensure an additional, affordable Urban Affairs, U.S. Senate, Washington, ness, and was never fairly implemented to source of funds for community bank lending, DC. included all financial institutions. It was a particularly rural community bank lending. DEAR SENATOR GRAMM: Thank you for your government hammer to force banks to make letter of March 22, 1999, received today. Without affordable sources of funding, com- loans and open branches that were not pru- Please be advised that we do support the munity banks cannot adequately support dent. Enforcement of discrimination laws amendment to the Financial Services Mod- their local communities. produces better results. Community banks remain concerned about ernization bill, to exempt banks with less Please hold firm on exempting banks with the insurance provisions that may be in- than $100 million in assets and in non-metro- less than $100 million in assets from CRA re- cluded in financial modernization legisla- politan areas, from CRA requirements. quirements during your consideration of the tion. We urge that Congress not take any We believe that mall community banks Financial Services Modernization bill. The legislative steps that would hinder commu- have more than demonstrate that we must exemption should be at the $500 million nity bank insurance activities. Community reinvent in our communities on a wide basis, level, if not removed altogether, and all fi- banks must retain the authority to engage simply to continue in business. With the nancial institutions (lenders) should be in- in insurance activities to be able to compete high levels of competition in the market- cluded; such as Credit Unions. effectively against big banks, insurance com- place, we do not have any alternative but to Finally, please remember, this great Coun- panies and financial conglomerates con- complete rigorously, and that means cov- try’s economic health is largely based on the trolled by unitary thrift holding companies ering all areas and segments of our popu- freedom of individuals who take the risk of that are increasingly in pursuit of commu- lation and service areas, with full and com- opening a small business, and a small bank is nity bank customers. a small business. The less government regu- plete banking services. The costs of doing so Thank you for seeking my input into your lation for small banks the better we can are enormous without the added costs of doc- laudable efforts to reach a comprise on fi- compete with large banks who have full time umentation of compliance with CRA. It will nancial modernization that benefits all par- staffs to handle regulatory requirements. As be more helpful to small community banks ties. the President of a small bank that I started like ours to be relieved of such burden, and With Sincere Regards, after a large bank purchased the bank I had we thank you for pursuing the amendment. TOM L. HAVENS, worked at for 20+ years, and let me go at the Sincerely, President. ripe old age of 49 years, I wear many hats CLINTON W. BOOTH, and spend much of my mornings reviewing President & CEO. THE FIRST NATIONAL BANK stacks of regulatory correspondence. Any re- OF STRATTON, lief will be appreciated. THE GUNNISON BANK Stratton, CO, March 26, 1999. Sincerely, AND TRUST COMPANY, Hon. PHIL GRAMM, JOE L. WILLIAMS, Gunnison, CO, April 9, 1999. Chairman, Committee On Banking, Housing & President & CEO. Hon. PHIL GRAMM, Urban Affairs, U.S. Senate, Washington, Committee on Banking, Housing, and Urban Af- DC. FIRST NATIONAL BANK fairs, Washington, DC. DEAR SENATOR GRAMM: I would like to OF CANON CITY, DEAR SENATOR GRAMM: Thank you for your thank you for your support in the Senate Can˜ on City, CO, April 7, 1999. letter regarding the pending financial mod- Banking Committee, concerning your pro- Hon. PHIL GRAMM, ernization legislation. While I applaud your posal to exempt Banks with under one hun- Chairman, Committee on Banking, Housing and support of regulatory relief from the burdens dred million in assets, from the Community Urban Affairs, U.S. Senate, Washington, of the Community Reinvestment Act for Reinvestment Act. DC. small rural banks, there continue to be pro- We strongly support this exemption. We DEAR SENATOR GRAMM: We support your visions of the financial modernization legis- are all over burdened with regulatory re- thoughts that rural banks of less than $100 lation that concerns me. I believe, as does quirements and CRA is at the top of this list. million in assets should be exempt from the the Independent Bankers of Colorado on We have devoted countless hours and thou- provisions of CRA. In my thirty years of whose Board I am a member, that the finan- sands of reams of paper to be outstanding in banking, I can honestly say that CRA com- cial modernization bill as it is currently our CRA Reports. pliance issues in a bank of this size ($95 mil- written is harmful to community bank inter- It is a well known and documented fact lion in assets in a community of less than ests. that any Bank surviving in the 80’s and into 50,000 people)are unnecessary. This bank and We support the closure of the unitary the 90’s who is not meeting the requirements every other rural bank, by their very nature, thrift holding company loophole through of the Community Reinvestment Act, is not are leaders and innovators in meeting the which an increasing number of non-banking succeeding. Most small Banks not in the credit needs of the citizens and businesses in firms are acquiring thrifts. We agree with metropolitan setting perform all the acts, re- communities in which they are located. the Federal Reserve, Independent Bankers’ quired under CRA, in their daily survival. May 4, 1999 CONGRESSIONAL RECORD — SENATE S4645 It might be further interesting to note I also want to talk briefly about one Permits banks to treat bad debt charge that due to the change in the matrix and additional matter that has come to my offs as items of built in loss over the same composition of the requirements for an out- attention. This is a proposal to permit number of years that the accumulated bad standing CRA rural Banks find it very dif- banks to be organized as limited liabil- debt reserve must be recaptured (four years) ficult to receive an outstanding. We had for built in gains tax purposes. This provi- worked diligently and faithfully to maintain ity companies, or LLCs. LLCs were sion is necessary to properly match built in an outstanding CRA Rating and then with first created in the mid-1980s and have gains and losses relating to accounting for the change of rules we are almost excluded spread throughout the Nation. Vir- bad debts. Banks that are converting to S by a definition form being able to obtain an tually every State now permits busi- corporations must convert from the reserve outstanding rating and have to be satisfied nesses to be organized as LLCs, as well method of accounting to the specific charge with merely a satisfactory. as corporations and partnerships. The off method and the recapture of the accumu- This again points up the fact that there is tax benefit of an LLC is similar to that lated bad debt reserve is built in gain. Pres- no reason to go through that gyration to be of a subchapter S corporation. Double ently the presumption that a bad debt only satisfactory, as we certainly are satis- taxes are eliminated and taxes are paid charge off is a built in loss applies only to fied in the daily performance of our Banking the first S corporation year. lives. We are all concerned about the Com- at the level of the owners. Up to this Clarifies that the general 3 Year S corpora- munity and daily make every effort to en- point, Federal law had limited banks to tion rule for certain ‘‘preference’’ items ap- hance the Communities which we serve. the corporate form. plies to interest deductions by S corporation We therefore highly support the exemption In recent years, a number of experts banks, thereby providing equitable treat- of this requirement on the smaller institu- have questioned this restriction, and ment for S corporation banks. S corporations. It would save us dollars and cents, but there appear to be good reasons why we tions that convert from C corporations are more importantly would allow us the time to may wish to examine permitting small denied certain interest deductions (pref- get out of the office, away from the paper banks to be organized as LLCs. erence items) for up to 3 years after the con- work requirements and actually serve the I will provide the chairman with lan- version, at the end of three years the deduc- customers as we intend to. It would also help guage on this point and ask that he tions are allowed. Provides that non-health care related provide one less unfair advantage to small take a good look at it. I want to thank Banks concerning our Credit Union struggles fringe benefits such as group-term life insur- and brings us one step closer to a level play- Chairman GRAMM, once again, for his ance will be excludable from wages for ing field. Credit Unions are not required to hard work on this bill. I have been ‘‘more-than-two-percent’’ shareholders. Cur- be under any CRA requirements. pleased to be a member of the Banking rent law taxes the fringe benefits of these I thank you for the opportunity to be Committee, and I am pleased to sup- shareholders. Health care related benefits heard and to support your efforts on the Fi- port the legislation. are not included because their deductibility nancial Modernization Bill. We also would Mr. President, I ask unanimous con- would increase the revenue impact of the ask for your support in closing the unitary sent that an explanation of my legisla- legislation. Permits Family Limited Partnerships to thrift loophole which is detrimental to the tion be printed in the RECORD. small Banks and the Banking payment sys- There being no objection, the mate- be shareholders in Subchapter S corporations. Many family owned small businesses tem in general. We believe these two items rial was ordered to be printed in the are of the highest priority in the up coming are organized as Family Limited Partner- Modernization Bill. RECORD, as follows: ships or controlled by Family Limited Part- Respectfully, SMALL BUSINESS AND FINANCIAL INSTITUTIONS nerships for a variety of reasons. A number ROBERT L. TODD, TAX RELIEF ACT OF 1999 LEGISLATION TO of small banks have Family Limited Part- President. REDUCE THE FEDERAL TAX BURDEN ON nership shareholders, and this legislation SMALL BANKS Mr. ALLARD. Mr. President, these would for the first time permit those part- This legislation expands Subchapter S of nerships to be S corporation shareholders. letters contain a number of views on the IRS Code. Subchapter S corporations do Permits S corporations to issue preferred the CRA and other provisions of the not pay corporate income taxes, earnings are stock in addition to common. Prohibited bill. passed through to the shareholders where in- under current law which permits S corpora- Now I want to talk about taxes. For come taxes are paid, eliminating the double tions to have only one class of stock. Be- over a year now, I have been working taxation of corporations. By contrast, Sub- cause of limitations on the number of com- on legislation to reduce the tax burden chapter C corporations pay corporate income mon shareholders, banks need to be able to on small banks. Last week, I intro- taxes on earnings, and shareholders pay in- issue preferred stock in order to have ade- come taxes again on those same earnings quate access to equity. duced S. 875 along with Chairman when they pass through as dividends. Sub- Reduces the required level of shareholder GRAMM and Senators BENNETT, ABRA- chapter S of the IRS Code was enacted in consent to convert to an S corporation from HAM, HAGEL, ENZI, MACK, GRAMS and 1958 to reduce the tax burden on small busi- unanimous to 90 percent of shares. Non-con- SHELBY. ness. The Subchapter S provisions have been senting shareholders retain their stock, with This legislation expands the sub- liberalized a number of times over the last such stock treated as C corporation stock. chapter S option for small banks. Sub- two decades, significantly in 1982, and again The procedures for consent are clarified in chapter S is a portion of the Tax Code in 1996. This reflects a desire on the part of order to streamline the process. Congress to reduce taxes on small business. Clarifies that Qualified Subchapter S Sub- designed for small businesses with a This S corporation legislation would ben- sidiaries (QSSS) provide information returns modest number of shareholders. The efit many small businesses, but its provi- under their own tax id number. This can help most important feature of subchapter sions are particularly applicable to banks. avoid confusion by depositors and other par- S is that it eliminates the double tax- Congress made S corporation status avail- ties over the insurance of deposits and the ation faced by corporations. Sub- able to small banks for the first time in the payer of salaries and interest. chapter S businesses are taxed only at 1996 ‘‘Small Business Job Protection Act’’ Mr. ALLARD. Mr. President, I yield the shareholder level. but many banks are having trouble quali- back my time. Congress made this provision avail- fying under the current rules. The proposed legislation: Mr. SCHUMER addressed the Chair. able to banks 3 years ago. Since then, Permits S corporation shares to be held as The PRESIDING OFFICER. The Sen- nearly 1,000 small banks have con- Individual Retirement Accounts (IRAs), and ator from New York is recognized. verted from C corporations to S cor- permits IRA shareholders to purchase their Mr. SCHUMER. Mr. President, I rise porations. Unfortunately, many more shares from the IRA in order to facilitate a to address the issue of the financial would like to convert. They are pre- Subchapter S election. services legislation now before us. Like vented from doing so by a number of Clarifies that interest and dividends on in- many of my colleagues, Mr. President, vestments maintained by a bank for liquid- remaining obstacles in the tax law. ity and safety and soundness purposes shall this marks my 19th year of trying to My legislation would change this by not be ‘‘passive’’ income. This is necessary improve financial services. We haven’t making subchapter S available to because S corporations are restricted in the done much in 19 years, but I am hoping many more banks. I will be working amount of passive investment income they this 20th year is the charm. closely with Senator GRAMM and the may generate. Today, however, regrettably I have a Finance Committee in the months to Increases the number of S corporation eli- few doubts. As much as anyone in the come in an attempt to include this leg- gible shareholders from 75 to 150. Senate, I want to see modernization Provides that any stock that bank direc- islation in a tax bill. tors must hold under banking regulations pass, and I want to see it pass now. The Mr. President, I will include a full de- shall not be a disqualifying second class of bill is critical to the vitality of New scription of the provisions of my bill at stock. This is necessary because S corpora- York’s economy. New York City is the the end of these comments. tions are permitted only one class of stock. financial capital of the world. S4646 CONGRESSIONAL RECORD — SENATE May 4, 1999 As I have said time and time again, House last year. In fact, I persuaded a tion is important, given the consensus financial modernization legislation is good number of my New York col- that CRA has built through most parts critical to ensuring that our financial leagues to support it and it passed by of this country and among most Mem- institutions are competitive at home one vote. bers of both parties—the House, for in- and abroad. Because of the We found a good model, Mr. Presi- stance, passed a bill with a similar entrepreneurialness of America, par- dent; we ought to stick with it. There CRA provision as the Sarbanes sub- ticularly in financial services, we was balance in that model. There was stitute by a 51 to 8 margin—I ask the dominate the world. Hundreds of thou- bipartisanship in that model. It chairman to reexamine it, and again sands, if not millions, of people are em- worked. Yet, we come here to the floor not have his strong feelings about CRA ployed in every one of the 50 great of the Senate today, with financial be the monkey wrench that undoes the States because of our dominance in services at risk. They are at risk be- whole financial services construct. this area. And even as things that have cause even though we had a plan that Strangely enough, it is not the pas- happened in America spread to Europe had almost everyone’s support, that is sions of the many in the House but and Asia, it is more and more Amer- not the bill coming to the floor today. rather the passions of the few in the ican companies that are taking the One of the main sticking points is Senate that are causing us problems lead and doing them. That is because CRA. CRA is supported by most of the today. This is a reversal of what has we are technologically, entrepreneur- financial institutions in my State, usually happened. ially, and in innovation ahead of just while those who seek to lift CRA say The bill’s provisions that undermine about every other country in the world that it is a terrible burden for the fi- CRA will clearly cause a Presidential in financial services. So today we are nancial institutions. I seem to hear veto. It caused all of the Democrats on the financial capital. We are the lead- that more from some of my colleagues the committee to vote against the bill. ers. But we may not be tomorrow. Our in the Senate than from the institu- One thing we have learned in finan- superiority is not some historical in- tions that it is supposed to help. In cial services in this long, tortuous, and evitability. We need to compete in fact, if you surveyed the major banks sad history is that unless we have bi- order to win. And we cannot compete and major insurance companies and partisan support, a bill such as this in the present context of the laws. major securities firms in my State of with so many conflicting interests will Mr. President, when I came to the New York, almost every one would say fail. It is my hope we can today move Congress in 1981, I was strongly sup- they were happy to support last year’s this bill forward by setting aside par- portive of the Glass-Steagall law. It H.R. 10 and would be happy to support tisanship and confrontation and replac- seemed to me very simple—that while it again this year. ing it with pragmatism and com- my inclination would be to allow finan- They realize that CRA has been an promise. important tool for building commu- cial institutions to do whatever they There are certain provisions in the nities across America. It has been at chose, they should not take part in Democratic substitute that I don’t par- work in my State, whether it be in the risky activities with insured dollars. In ticularly like. I am giving serious inner city, which in the past was those days, many of the banking insti- thought to the affiliate op-sub issue. In starved for capital, or whether it be in tutions in the country wanted to use the past I have strongly been for the rural areas, also starved for capital. In- their insured dollars for the riskiest of affiliates for the same Glass-Steagall dividuals, homeowners, small builders, activities. Some of us, even back in the reasons I mentioned before. I talked to small business people, from the Adiron- early eighties, warned against it, and the Secretary of the Treasury, who dack Mountains and from the South we were like voices against the wind. feels strongly on the other side, and he I will never forget an amendment of Bronx, have come and said, ‘‘Senator, has modified the bill to meet some of the Banking Committee in the House, make sure we keep CRA.’’ the objections I have. But I don’t want sponsored by the gentleman from Lou- The amazing thing is that CRA has to let my views on that issue hold up isiana, Mr. Roemer, and myself, that worked. While in the past financial in- the bill. said no S&L, for instance, could use institutions, banks, would write off sured dollars for equity investments in whole areas because it was hard to find It is my hope similarly with CRA real estate. It lost by one vote. Had it the good loans, the economical loans, that we will act with dispatch. It is my passed, America would have saved $200 CRA forced them to go in and now they hope that the Senate will adopt the billion. find they are making money by lending CRA provisions of the Democratic sub- But as a result of the awful S&L cri- money in rural areas and inner-city stitute and we can move this bill for- sis, we were able to come closer to- areas. So it works. All of a sudden, we ward to conference assured that we gether on financial services. One of the see that these provisions, widely ac- have created a bill that has sufficient great ironies is that in the early cepted by the industry, widely accepted support to pass the Senate on a bipar- eighties, when many had said let every- in a bipartisan measure in the House tisan basis, assured that we have cre- body do everything, even with insured this year, accepted last year by the ated a bill that will finally, after 20 dollars, and they deadlocked with Senate Banking Committee by a 16–2 years, be signed into law. those of us who felt—some felt that vote margin, are ready to scuttle the Thank you, Mr. President. each institution should be pigeon- whole bill. Mr. SARBANES addressed the Chair. holed, but others felt don’t pigeon-hole Let me say this: I fear that the Com- The PRESIDING OFFICER. The Sen- institutions but pigeon-hole insured munity Reinvestment Act provisions in ator from Maryland. dollars and make sure they only go to the bill before us would doom mod- Mr. SARBANES. Mr. President, we low-risk types of activities. But the ernization’s failure once again, doom have been trying to accommodate S&L crisis allowed us to come together modernization to partisanship, doom Members who wish to make opening because everyone realized that insured modernization to a Presidential veto. statements. We have been forbearing dollars should not be used for risky ac- It cannot and should not be the mon- on offering the substitute, which is in tivities. key wrench that grinds modernization order under the agreement as the first And so in the early and middle nine- to a halt. CRA or removing CRA should amendment. I guess I am really just ties, legislation was crafted that al- not be the monkey wrench that grinds trying to let colleagues know that I am lowed institutions to underwrite, sell, modernization to a halt. sort of close to being ready to offer the and even be agents for all varieties of I greatly respect the views of our substitute. I don’t know whether there financial services, but that successfully chairman. He is a towering intellect— are others who want to make an open- walled off insured dollars from the rest. somebody I joust with on many occa- ing statement before we get to that. I This is good legislation. And so in the sions and have always done it in a re- see the Senator from Nebraska may be last few years, I—who was regarded, I spectful way so that we each enjoyed it interested in doing so. I withhold. Ob- guess, as one of the leading opponents and went away shaking hands. viously, Members, once the substitute of modernization—became an advocate. I say to my chairman that I under- is offered, can make statements, too. I was proud to support the moderniza- stand his strongly held views. But if But I withhold. I see the Senator is tion bill that reached the floor of the you believe that financial moderniza- seeking recognition. May 4, 1999 CONGRESSIONAL RECORD — SENATE S4647 Mr. ALLARD addressed the Chair. Our global position was strengthened mittee, although I have served there The PRESIDING OFFICER. The Sen- by the conclusion of a historic finan- from time to time. I don’t have an ator from Colorado. cial services side agreement to the opening statement in the normal sense Mr. ALLARD. Mr. President, on this Uruguay Round of GATT. It is ironic of the word because I don’t intend to side I think we have at least two Mem- that the United States pushed hard for address the specific provisions in the bers right now who want to be recog- this agreement to reduce barriers to bill, but rather to say to those who are nized to make opening statements. I competition abroad while our domestic on the committee, and in particular request we go ahead and give them an market continues to operate under a the chairman of the committee, Sen- opportunity to do that. 1930s regulatory regime. It is time to ator GRAMM, while many may not un- Mr. HAGEL addressed the Chair. tear down barriers to competition in derstand and appreciate the signifi- The PRESIDING OFFICER. The Sen- our domestic markets and ensure that cance of the banking and financing in- ator from Nebraska. our industries are able to continue to stitutions of the United States, and Mr. HAGEL. Thank you, Mr. Presi- compete at home and abroad. some may even come to the floor, as dent. The members of the Senate Banking my good friend, Senator WELLSTONE, Mr. President, I rise today in support Committee took a hard look at this im- and talk about when we might get on of S. 900, the Financial Services Mod- portant issue surrounding financial to some business in the Senate that ernization Act of 1999. As a member of modernization. S. 900 balances the really helps people, that prompted me the Senate Banking Committee, I am sense of urgency surrounding passage to come down and talk about some- proud to have played a small role in of financial services reform legislation thing that I think is very, very people- writing this bill. with the need to ensure that the legis- oriented. America’s financial services compa- lation responds to future marketplace As a matter of fact, I have given a nies operate under a regulatory regime dynamics and not just to today’s reali- number of talks to fellow Americans. that dates back to the Great Depres- ties and political pressures. When I have asked, what do you think sion. Our banks, insurance, and securi- Is this legislation perfect? No, it is is the most significant thing institu- ties firms are bound by artificial bar- not perfect. There are far too many tionally about the United States that riers that do not recognize the current competing and important interests in- contributes to the opportunities we realities of the global marketplace. volved in this legislation. And perfec- have in our daily lives to live better The reality is this: That the line sepa- tion means different things to different lives? Then I answer for them and say, rating these industries have been people. But this bill does achieve a it is the financing system in the United blurred by the evolution of new finan- very workable and relevant and real- States. cial products and technology. istic balance between the politics of fi- There is no doubt about what helps Securities firms, insurance compa- nancial modernization and sound pub- the average man buy a car, buy a nies, and banks already affiliate with lic policy. house, make renovations to his house, one another, because the marketplace Some of my colleagues have alleged perhaps even buy a second cabin, or a demands it. However, these affiliations that this bill is only going to help large second car for his children, those cannot lead to full and fair competi- financial institutions and will not help things which, when added up, make tion or the full potential benefits for small banks. This is not true. S. 900 in- America the most prosperous Nation consumers because of the Glass- cludes some very important changes, on Earth, the country that has people Steagall Act and its legal barriers. for example, to the Federal home loan with more material wealth—if that is Clearly, it is time for Congress to bank system. These changes are very what measures the validity of a soci- modernize U.S. financial service regu- important to small banks everywhere ety—than any other nation in the lations and introduce full and open across this country, not just in the world. It is that we can finance pur- competition across the banking securi- rural States, such as my State of Ne- chases. We can finance what we buy, braska, but in urban communities and ties and insurance industries. S. 900 we can pay for it over time, and of late large cities as well. would accomplish that. we are getting the interest rates down The Federal home loan bank provi- Passage of this bill will benefit con- where they ought to be, as low as pos- sumers in two basic ways: First, allow- sions in S. 900 will strengthen local community banks that are vital to the sible. ing competition among banks, securi- This is the best thing for Americans economic growth and viability of all ties firms, and insurance companies in their day-by-day life which permits communities. They will ensure that in will lead to lower costs and higher sav- them to use their salary and their an era of banking megamergers, small- ings for consumers. Second, this com- earnings in a way that will let them er banks are able to compete effec- petition will strengthen our financial spread out the costs of items that they tively and continue to serve their cus- service firms that are integral to the need over a period of time, with a rea- tomers’ lending needs. health of the American economy. These provisions are supported by all sonable and rational finance plan. A 1995 Bureau of Economic Analysis of the major banking trade organiza- It is absolutely important that from report estimated that increased com- tions. There are many specific dynam- time to time, even though in the Con- petition in the financial services indus- ics to improving the marketplace and gress we don’t like to legislate items try would save consumers nearly $3 bil- the ability for the small institutions to like a brand-new banking and finance lion a year. I realize, Mr. President, compete. Many of my colleagues this bill—it is tedious for some, it is dif- that $3 billion may not seem to be a afternoon have detailed those changes ficult, and for many it doesn’t even large figure around here, but in places rather well. seem like anything exciting we ought such as Scottsbluff, NE, and other It is important, Mr. President, to to be doing in the Senate. However, re- towns in my State that is real money. modernize our financial service laws to alizing what it does for our people, it If we don’t modernize our laws gov- ensure that our companies can compete ought to be full speed ahead to get to erning the delivery of financial serv- in this new global marketplace. As bar- the floor with a good bill to modernize ices, then we will put our companies riers to trade come down, our financial the banking and financing system of and our industries at a severe disservice firms must be prepared to take this country. advantage in the global arena. advantage of new global opportunities. Earlier in our history, almost every- Today, the United States is the world Congress can help them prepare by thing was financed through banks and leader in financial services. We must giving them the flexibility they so des- the type of institutions that are prin- not jeopardize this position through perately need. S. 900 provides this flexi- cipally the subject matter of this bill. congressional inaction. Just as exports bility. I urge my colleagues to support Because we didn’t modernize the sys- of manufactured goods and commod- its speedy passage. tem soon enough, financing is done in ities have become increasingly impor- I yield the floor. various ways—perhaps there is more fi- tant to the growth of our Nation’s The PRESIDING OFFICER. The Sen- nancing done outside the banking sys- economy, so are our exports of finan- ator from New Mexico. tem than there is in the banking sys- cial services very important to our Mr. DOMENICI. Mr. President, I am tem per se. Insurance companies do fi- economy’s growth. not a member of the Banking Com- nancing; companies that are big S4648 CONGRESSIONAL RECORD — SENATE May 4, 1999 enough do their own financing of appli- I will make one other observation. The PRESIDING OFFICER. The Sen- ances; clearly, institutions that are not For anyone who doesn’t think capital— ator from Maryland. banks and not subject to banking rules which is the substance of banks—isn’t AMENDMENT NO. 302 or financing purchases. important to a capitalist society, let Mr. SARBANES. Mr. President, pur- When it comes to measuring a coun- me suggest that the last 3 years ought suant to the order that is governing try’s long-term success and the inter- to prove it up in America in spades. our consideration of this bill, at least national markets and the day-by-day While many economies in the world currently, I send an amendment in the availability of good credit and sound- were in a state of bankruptcy, couldn’t nature of a substitute to the desk and ness of our economy, we have to always buy our goods and were having great ask for its immediate consideration. look to the banking system. As a mat- economic difficulty, what happened to The PRESIDING OFFICER. The ter of fact, just think a moment of the America? Our consumers bought more clerk will report. past 3 years when things have gone rather than less. Interest rates went The assistant legislative clerk read wrong in other countries, when some of down rather than up. There was more as follows: these countries went almost totally money for almost any venture desired The Senator from Maryland [Mr. SAR- bankrupt. What led such failures? It because the banking system in our BANES], for Mr. DASCHLE, for himself, Mr. was frequently led by the failure of country was the greatest safe haven for SARBANES, Mr. DODD, Mr. KERRY, Mr. BRYAN, their banking system. That should say capital that the world has ever seen. Mr. JOHNSON, Mr. REED, Mr. SCHUMER, Mr. something when we see that all around That meant anyone with extra money BAYH and Mr. EDWARDS proposes an amend- us. sent it here. Thus, that money was ment numbered 302. Why is the country of Japan, that available to finance purchases in Mr. SARBANES. Mr. President, I ask many people 15 years ago said we America, bring interest rates down unanimous consent that reading of the should mimic—obviously we don’t rather than up. amendment be dispensed with. choose to speak that way today; I The question is, What will happen The PRESIDING OFFICER. Without never spoke about it even 15 years when the world economy goes the other objection, it is so ordered. ago—what has happened to Japan direction? Frankly, we ought to have a (The text of the amendment is print- today? They don’t want to face up to modernized banking system when that ed in today’s RECORD under ‘‘Amend- the fact their financing institutions occurs. It is predicted that America’s ments Submitted.’’) are in a state of chaos, if not bank- prosperity may turn a little bit in the The PRESIDING OFFICER (Mr. ruptcy. It is tough for them to admit. wrong direction within 3 to 5 years. If SMITH of Oregon). The Senator from We didn’t want to admit it when our it lasts 5 years, it will be astronomical Maryland. savings and loans were going bankrupt. in terms of a previous growth period. Mr. SARBANES. Mr. President, as I We didn’t want to come up with the We have learned that the availability have indicated earlier in the course of money it took to bail out the deposi- of a lot of capital in a capitalist system the opening debate on this issue, we tors who were guaranteed their money, such as ours can make this economy are very anxious on our side to have fi- up to $100,000, who financed the S&L grow and prosper in a way we had never nancial service modernization legisla- banking system in the United States, quite figured out until we became al- tion, and most of us subscribe to the but we finally did it. We saved it. We most totally dependent upon that. proposition of allowing affiliations be- spent a lot of money doing it. There are signs all over the place tween banks, security firms, and insur- In a very real sense, those who are that this great opportunistic land of ance companies. managing this bill, including my good ours needs a good, sound, solvent, and However, as I have indicated, that is friend from Maryland, Senator SAR- modern banking system. I came down not the only issue before us. We have BANES, and obviously the chairman, to make sure those listening under- to consider that question in the con- who I have already mentioned, are con- stand this is not a bill for bankers. text of addressing important questions tributing a very vital quality to Amer- This is not a bill for rich people. This of providing credit in all communities ican life by trying to modernize the fi- is a bill to let a banking and finance in our country; namely, the Commu- nancial and banking system of the system work for Americans—whether nity Reinvestment Act issue. We have United States. they are financing a home, whether to consider how these activities are to As my good friend from Nebraska they are moderate-income people, be done, whether they are to be done said, what we have is too old, too an- whether they are financing an edu- solely in an affiliate, outside of the cient. It is not modern. It is not taking cation for their kids, whatever it may banking structure, or whether banks care of modern problems. It is not help- be. We have to have a sound set of fi- will have the opportunity either to use ing banks grow in a way they can and nancial rules in America for Americans the affiliate or to do it in an operating should to be modern institutions of fi- to grow and prosper. subsidiary. We have the important nancing. American business needs to borrow issue of the long historical separation I commend and laud those on the money, and clearly a banking system between banking and commerce, which committee who have worked hard. I has to be ready and able to do that for has prevailed in this country. And we hope even with our differences we will the American business people here and have other aspects of the legislation get a bill. I read a letter from the abroad. It cannot be done with a sys- which I think are of importance, in- President saying if certain things are tem that is hog tied with ancient rules cluding important provisions with rein the bill, he will veto it. This letter and regulations that don’t meet to- spect to consumer protection. was directed to the distinguished chair- day’s times. As we have indicated earlier, we were man, Senator GRAMM. We know the ex- The PRESIDING OFFICER. The Sen- not able to support this legislation in ecutive branch has a couple of strong ator from Colorado. the committee and the legislation was feelings about this bill; perhaps the Mr. ALLARD. I thank both my Re- brought to the floor on an 11-to-9 vote. Senate has equally strong feelings publican colleagues for great state- The alternative, which we have now of- about the same items. ments. I think the Senator from New fered, just offered, and which is at the On the other hand, I believe when we Mexico reminded us of the successes of desk, is, in effect, the bill that the are finished and go to conference and our banking system and how we should committee reported last year on a 16- work this through with the House and appreciate it. I think he made a very to-2 vote with the one substantial with the administration in an effort to good statement. My colleague from Ne- change of providing for the operating get a bill that is sound, reform-minded, braska, who is working real hard on subsidiary approach. That is now con- modern and yet protects certain inter- the Banking Committee with the chair- tained in the alternative, the sub- ests that the banking system is cur- man and all members on the Banking stitute amendment which I have sent rently helping and protecting, we will Committee, I appreciate his effort and to the desk. get a bill. The opportunity doesn’t help on these very important issues. He Last year some very careful com- come very often for Congress to reform has contributed considerably to this promises were worked out in order to a significant portion of our capitalist legislation. move this legislation forward on a con- system. I yield the floor. sensus basis. Unfortunately, that has May 4, 1999 CONGRESSIONAL RECORD — SENATE S4649 not been the case this year, and the It is for this reason that farm groups, though many CRA advocates want to legislation that was developed in the labor unions, mayors all across the do exactly that. It only requires that committee was reported by the major- country, community development cor- the bank, as a condition of affiliation, ity but contained no supporting vote porations, Hispanic organizations, meet the CRA performance standards. from any of the Democratic members Asian American, Native American— As Secretary Rubin has stated: of the committee. The proposal before this has had a significant impact on If we wish to preserve the relevance of CRA us, S. 900, the bill from the committee, the Indian reservations across the at a time when the relative importance of is strongly opposed by a great number country—and civil rights groups all bank mergers may decline and the establish- of civil rights groups, community support retaining the effectiveness of ment of non-bank financial services will become increasingly important, the authority groups, consumer organizations, and CRA. to engage in newly authorized activities local government officials. People I will include in the RECORD at the should be connected to a satisfactory CRA within the financial services industry end of my remarks letters from these performance. have mixed views on some of the provi- various organizations detailing their Let me turn to the other CRA issues sions of S. 900, and of course the Presi- very strong view about CRA, and in ef- that are, in effect, posed by the sub- dent has indicated that he will veto the fect their support for this substitute. stitute as compared to the committee- The substitute requires that banks committee bill. reported bill. Unfortunately, we have this sharp should have at least a satisfactory CRA The second provision of the com- contrast with last year’s bipartisan ap- rating before they can affiliate with se- mittee bill that weakens CRA is its proach. I think it is fair to say that curities and insurance firms, and that safe harbor for banks with a ‘‘satisfac- none of the industry association groups they would have to maintain that rat- tory’’ or better CRA rating. This is, oppose the substitute. They have been ing to continue the new affiliation. banks would be deemed in compliance These provisions are essential in order caught in the switches, so to speak, on with CRA if they had in each of their to maintain the effectiveness of CRA this issue, and subjected to consider- three preceding examinations received within the expanded holding company able persuasion. But I think it is fair to a satisfactory rating. Groups, in fact, structure. Capital, management, and say that the provisions that are in the would not be able to comment about CRA performance are at issue when an substitute will pass muster. These pro- CRA performance unless they could institution files an application for de- visions also are fairly close to what the carry the very heavy burden of pro- posit insurance, a charter, a merger, an House Banking Committee has done by viding substantial, verifiable informa- acquisition or other corporate reorga- a 51-to-8 bipartisan vote. So we think tion to the contrary. nization, a branch or the relocation of the approach contained in the sub- The Federal bank regulatory agen- a home office or branch. cies oppose this provision. They agree stitute just sent to the desk stands the If you are going to allow banks for greatest chance of finally being en- that a satisfactory CRA rating is not the first time in a comprehensive way conclusive evidence that a bank is acted into law. This substitute amend- to engage in insurance and securities ment, in effect, would put us on a path, meeting the credit needs of all of its activities, then it is important that communities. On the contrary, they at the end of which we could obtain the those banks, before they can do that, President’s signature and get legisla- welcome comments from the public re- meet the CRA test. Otherwise, you are garding the CRA performance of the in- tion. going to have a situation in which fi- Let me briefly seek to contrast the stitutions they supervise. nancial institutions could enter into For example, Ellen Seidman, Direc- substitute and S. 900, the bill brought additional activities, even if they were tor of the Office of Supervision said: from the committee. It should be clear- deficient in their CRA performance. ly understood that there is an intense [w]e generally find that the information As the FDIC Chairman, Donna received from those few who do comment on view on this side of the aisle, and I be- Tanoue stated: applications is relevant, constructive, and lieve shared by at least a few on the The bank and thrift regulatory agencies thoughtful, and frequently raise issues that other side of the aisle, that the Com- consistently take into account an insured in- need to be considered. In order for us to munity Reinvestment Act has really stitution’s record of performance under CRA reach a supportable disposition on an appli- been a very significant and construc- when considering an application to open or cation, and satisfy our statutory responsibil- tive public policy. It has improved the relocate a branch, a main office, or acquire ities, we need to have public input. availability of credit in low- and mod- or merge with another institution. As this Public comment is especially useful legislation would enable institutions to in the case of large banks serving mul- erate-income communities. There is enter into additional activities, it would example after example, and we will put seem consistent that CRA compliance should tiple markets, because regulators sam- those in the RECORD as this debate de- continue to be a determining factor. ple only a portion of these markets to velops, where the CRA lending and in- Last year, we worked out these CRA determine the institution’s CRA rat- vestments have brought life to pre- provisions in the bill that was reported ing. Public comment provides an op- viously neglected communities and out of the committee. And the con- portunity for community members to given people not only hope, but the sensus, a 16–2 vote, contained these im- point out facts and data that may have ability to move up the American ladder portant CRA provisions. been overlooked in a particular exam- of opportunity. It has helped to allevi- This year, the provision requiring a ination. ate credit needs and improve services satisfactory rating as a precondition of In fact, the provision that is in the in rural areas and on Native American expanded affiliations is absent from committee bill would preclude looking reservations. It has had a significant the committee-reported bill. There are at anything that took place prior to impact on home ownership amongst two provisions in the committee-re- the past examinations if those exami- minority groups, African Americans ported bill which we feel very strongly nations produced a satisfactory rating. It is very clear that this safe harbor and Hispanic Americans, whose num- contribute to undermining the applica- provision of the committee bill would bers in terms of home ownership have tion of CRA. stifle public comment on banks’ and increased dramatically, and everyone This substitute amendment, unlike thrifts’ CRA performance. This is so who goes and observes that phe- the committee bill, requires banks because nearly all banks and thrifts re- nomenon reports back that the CRA have and maintain satisfactory CRA ceive satisfactory or better CRA rat- has had a considerable role to play in ratings in order to engage in and main- ings, well up into the 90s, 90-percentile that very important objective. tain expanded affiliations. To fail to do so would allow banks, for the first figures. The President has stated: time, to move out in terms of the ac- The committee majority asserts that [W]e should all be proud of what [CRA] has tivities they can engage in, in a com- the public comment process has been meant for low and moderate-income Ameri- prehensive way—both securities and in- routinely abused, but that assertion is cans of all races. Although we still have a not supported by the record. We get long way to go in bringing all Americans surance—without the bank that is into the economic mainstream, under CRA going to do that having to meet the these sort of examples that are brought the private sector has pumped billions of dol- CRA test. in. There has never been a full-scale lars of credit to build housing, create jobs It does not apply, the CRA, to the in- hearing on this issue. All of the statis- and restore hope in communities left behind. surance and securities activities, al- tical information from the regulatory S4650 CONGRESSIONAL RECORD — SENATE May 4, 1999 agencies indicate that there has not Before I turn to that subject, let me U.S. law? Because allowing banks to af- been abuse of the public comment proc- again stress how critical the flow of filiate with commercial firms raises ess. The vast majority of applications credit, which has resulted from CRA, concerns relating to risk to the deposit reviewed on CRA grounds are approved has been to the redevelopment of low- insurance fund, the impartial granting in a timely manner. Many do not re- and moderate-income areas. The bill of credit, unfair competition, and con- ceive any adverse comments. Very few brought out of the committee, S. 900, centration of economic power. A bank applications that receive adverse CRA would really close down opportunity affiliated with a commercial firm comments are delayed. for large numbers of people in these would have an incentive to make loans The substantial, verifiable informa- low- and moderate-income commu- to that firm, even if the firm were less tion would really knock community nities to really improve themselves, to creditworthy than other borrowers. groups and ordinary citizens out of move to home ownership, to open small The bank would have a similar incen- being able to comment in any mean- businesses, to carry out the sort of tive not to lend to the firm’s competi- ingful way. As the FDIC Chairman community renewal which gives them tors, even if they were creditworthy. Tanoue stated, ‘‘Public comments re- a better neighborhood in which to live. Financial experts have pointed out these dangers. Secretary Rubin testi- lating to CRA should not bear a burden I have heard these assertions, but we fied that mixing banking and com- of proof that is not imposed on public can take you through instance after in- merce: comment related to any other aspect of stance in which the impact of CRA has . . . might pose additional, unforeseen and a bank’s performance.’’ been such as to provide hope to com- The regulators take in all these com- undue risk to the safety and soundness of the munities and to lift them up and to en- ments and then they make their judg- financial system, potentially exposing the able people to move up the ladder of ment. There seems to be a presumption federal deposit Insurance funds and tax- opportunity. I do not know what could payers to substantial losses. . . . Equally un- here that when people come in and be more consistent with an American certain is the effect such combinations make a comment that somehow they goal or objective than to give people might have on the cost and availability of then carry the day. Nothing could be this opportunity to advance. And par- credit to numerous diverse borrowers and on further from the truth. The regulators the concentration of economic resources. ticularly the financial institutions, collate all these comments, consider which are subject to these CRA re- The leading economist Henry Kauf- them, and proceed to make their judg- quirements, are prepared to abide by man warned that mixing banking and ment. And the number of instances in commerce would lead to conflicts of in- which CRA has been raised is a very them. Many of them have given testimony about the beneficial impact it terest and unfair competition in the al- small percentage of the total. location of credit. In his view: The third way in which the com- has had on the community and the beneficial impact on their relationship .. . a large corporation that controls a big mittee bill attacks CRA is the exemp- bank would use the bank for extending credit tion for rural institutions with less with the community. to those who can benefit the whole organiza- than $100 million in assets. This would Let me turn to the banking and com- tion. . . . The bank would be inclined to obviously have very severe con- merce issue. Another aspect of the withhold credit from those who are or could sequences for low- and moderate-in- committee bill—and this is an impor- be competitors to the parent corporation. come rural communities which depend tant part of the substitute—that differs Thus, the cornerstone of effective banking, significantly from the substitute independent credit decisions based on objec- heavily on small banks for their credit tive evaluation of creditworthiness, would be needs. amendment is its approach to the separation of banking and commerce. In an undermined. It is asserted that these small banks, Public interest groups have made the by their nature, serve the credit needs important respect, the committee bill breaches the separation of banking and same point. Consumers Union testified of their local communities. However, that it opposes: historically, in the ratings made by the commerce, and this could lead to bi- . . . permitting federally-insured institu- regulators, small banks have received ased lending decisions and may well ultimately put the taxpayer-backed de- tions to combine with commercial interests the lowest CRA ratings. Although because of the potential to skew the avail- many small banks do serve the needs of posit insurance funds at risk. ability of credit, conflict of interest issues, their communities, observers note that Now, this separation of banking and and general safety and soundness concerns some small banks often invest in commerce is a longstanding principle from expanding the safety net provided by Treasury bonds rather than in their in American law, dating back over now the government. own communities. almost 140 years to the National Bank The difficulties experienced in Asia Some have argued that you need an Act of 1864, which specifically forbids demonstrate the risks associated with exemption in order to relieve the regu- banks to engage in or invest in com- mixing banking and commerce. Both latory burden. The fact of the matter mercial or industrial activities. Under Secretary Rubin and Chairman Green- is, as the Federal bank regulators re- existing law, a commercial firm, such span testified that the financial crisis vised the CRA regulations in 1995 to reas General Motors or Microsoft, may in Asia was made worse by imprudent duce the cost of compliance for small not own a bank or be owned by a bank. lending by banks to affiliated commer- banks, the new rules provided a We have tried to draw a line there. cial firms. In other words, if you cross streamlined examination for small There has been some fuzzing of that that line and put the commercial firm banks. They exempted small banks line, but not much. in the bank—as it were, in the same from reporting requirements. And they In 1956, the Congress enacted the pot—you run a heavy risk, as was ex- emphasized the institution’s actual Bank Holding Company Act, which pro- emplified in the Asian financial crisis, performance rather than paperwork. hibited commercial firms from owning of imprudent lending. The FDIC, the OTS, and the OCC sup- banks and prohibited holding compa- Former Federal Reserve Chairman port the application of CRA to small nies owning two or more banks from Paul Volcker wrote, recent experience banks. FDIC Chairman Tanoue stated: owning commercial firms. This policy with the banking crises in countries as Although the vast majority of institutions was strengthened by the Bank Holding different in their stages of development satisfactorily help to meet the credit needs Company Act Amendments of 1970, as Japan, Indonesia and Russia dem- of their communities, not all institutions which extended the prohibition on own- onstrate the folly of permitting indus- may do so over time, including small institu- ing commercial firms to holding com- trial financial conglomerates to domi- tions. Some institutions may unreasonably panies owning just one bank. In other nate financial markets in potentially lend outside of their communities, or arbi- words, it drew a very sharp line. large areas of the economy. trarily exclude low- and moderate-income In submitting the 1970 amendments, The substitute amendment tries to areas or individuals within their commu- President Nixon said: sustain this line between banking and nities. We believe that periodic CRA exami- commerce. The committee bill crosses nations for all insured depository institu- The strength of our banking system de- tions, regardless of asset-size, are an effec- pends largely on its independence. Banking this line in a number of respects. tive means to ensure that institutions help must not dominate commerce or be domi- First of all, it permits bank affiliates to meet the credit needs of their entire com- nated by it. to acquire any type of company in con- munities, including low- and moderate-in- Now, why do we have this principle of nection with merchant banking activi- come areas. separating banking and commerce in ties. However, the committee bill drops May 4, 1999 CONGRESSIONAL RECORD — SENATE S4651 certain safeguards that are in the sub- cial ownership of depository institu- those offered by the banking laws. For stitute and that were in last year’s bi- tions.’’ example, broker-dealer personnel have partisan bill. Those safeguards allowed Both the ABA and IBAA—the Amer- an obligation to recommend to their merchant banking investment to be ican Bankers Association and the Inde- clients only transactions that are suit- held only for such period of time as pendent Bankers Association of Amer- able based on their client’s tolerance would permit the sale of the invest- ica—wrote to Senators yesterday ex- for risk, overall portfolio, and so forth. ment on a reasonable basis. It pre- pressing their support for closing the Bank personnel have no such obliga- cluded the bank affiliate from actively unitary thrift holding company provi- tion. Broker-dealer personnel must participating in the day-to-day man- sion, including restricting transfer- pass licensing exams and are subject to agement of the company. ability of existing unitaries. continuing education requirements. The committee bill drops those safe- Now, let me turn briefly to some im- Bank personnel are exempt from these guards. In effect, it would allow a bank portant consumer protection provi- requirements. Disciplinary histories of holding company to operate commer- sions that are in the substitute amend- broker-dealer personnel are made pub- cial companies of any size and in any ment, but that are not in the com- licly available to investors. No such industry for an unlimited period of mittee bill, and which we think make history is available regarding bank per- time. This would break down the sepa- the substitute more desirable legisla- sonnel. Broker-dealer managers have a ration of banking and commerce. tion than the committee bill. duty to supervise their sales personnel, The substitute restores the safe- Obviously, if you are going to have a which is enforceable under the Federal guards that were in last year’s bill. financial services modernization bill, securities laws. Bank managers do not. Secondly, both the committee bill you must ensure adequate consumer Finally, customer disputes with bro- and the substitute amendment allow protection. We need to be sure that kerage firms are subject to arbitration, holding companies that own banks to consumer protections keep pace with which offers a specialized, quicker and engage in activities that are financial changes taking place in the financial cheaper forum for settling disputes. No in nature or incidental to such finan- market. In recent years, banking secu- arbitration exists for customer dis- cial activities. But the committee bill rities and insurance products have be- putes with banks. goes further by authorizing holding come more similar. A wider variety of Now, the committee bill, like the companies to engage in activities that financial products is available through substitute amendment, would repeal are complementary activities that are banks. This increases potential cus- the total exemption banks enjoy from financial in nature. It provides no defi- tomer confusion about the risks of the the definition of broker and dealer. nition or limitation of these com- product the customer is buying, who is Also, like the substitute amendment, plementary activities and, therefore, selling it, and whether or not it is in- the committee bill contains a number raises the danger that these com- sured by the FDIC. Measures such as of exceptions that allow certain securi- plementary activities would be com- disclosure to customers and licensing ties activities to continue to take mercial in nature and cross the separa- of personnel can help keep such mis- place directly within banks. However, tion between banking and commerce. understandings to a minimum, and the exceptions in the committee bill The substitute does not permit those such a provision should be included in are significantly wider than those in complementary activities. any financial services modernization the substitute amendment. Let me just Finally, the committee bill does not bill. mention some of those important dif- close the unitary thrift company loop- Unfortunately, the committee bill ferences. The committee bill allows a bank hole. That loophole refers to the fact fails to include a number of important trust department conducting securities that a company that owns just one consumer protection provisions that transactions to be compensated on a thrift, called a unitary thrift holding passed the committee overwhelmingly transaction-by-transaction basis, just company, may also own a commercial last year, and which we have now in- like a broker. Where the substitute firm. There are currently over 500 cluded in the substitute that is now be- amendment allows a bank to sell un- thrifts owned by unitary holding com- fore the body. registered securities exclusively to so- panies. The vast majority of these are Very quickly, on insurance sales, phisticated investors, the committee owned by financial firms. Now, both while some of the provisions of last bill allows a bank to sell unregistered the committee bill and the substitute year’s bill relating to insurance sales securities to all investors. would prohibit the creation of new uni- have been substituted into the com- Finally, the committee bill prohibits tary thrift holding companies by committee bill—that was done in the com- the SEC from determining that a new mercial firms. However, there is a mittee—but more remains to be done. product is a security and, therefore, sharp difference in that the committee The substitute amendment would re- must be sold by an SEC-registered bill would allow a commercial com- quire Federal bank regulators to estab- broker-dealer, unless the Federal Re- pany to acquire any of the 500 existing lish mechanisms for receiving and ad- serve concurs. Over time, this will unitary thrift holding companies. dressing consumer complaints—some- move even more securities activities Now, obviously, if they can do that, thing that is completely absent in the directly into banks. The substitute if hundreds of commercial firms, in ef- committee bill. amendment would afford the SEC the fect, can acquire a unitary thrift hold- The substitute amendment would first opportunity to define new prod- ing company, they can effectively ob- provide that Federal regulations would ucts as securities. literate the separation between bank- supersede State regulations when the The committee bill also leaves the ing and commerce. Financial leaders Federal regulations afforded greater SEC with less authority over bank-ad- and banking industry groups advise the protection for consumers. The com- vised mutual funds and with less abil- committee to prohibit commercial mittee bill allows State regulations to ity to protect investors in those funds. firms from acquiring control of thrifts. prevail even if it offers less protection Now, the substitute amendment re- Chairman Greenspan recommended to consumers. quires the Federal banking regulators that financial services modernization With respect to securities activities, to issue regulations regarding the sale legislation at least prohibit, or signifi- the committee bill provides less proof securities by banks and bank affili- cantly restrict, the ability of grand- tection for consumers than does the ates. The bank regulators would have father unitary thrift holding compa- substitute amendment. established mechanisms to review and nies to transfer their legislatively cre- Currently, banks enjoy a total ex- address consumer complaints. The ated grandfather rights to another emption from the definitions of committee bill does not include this commercial organization. ‘‘broker,’’ ‘‘dealer’’ and ‘‘investment provision. Secretary Rubin observed that, advisor’’ under the Federal securities No one of these provisions that I ‘‘without such a limit on transfer- law. Because of this blanket exemp- made reference to may seem to be of ability, existing charters may tend to tion, consumers who purchase securi- major import. But all of them taken migrate to commercial firms and could ties from banks do not receive any of together, I think, indicate that the become a significant exception to the the protections of the securities laws, protections for consumers that are con- general prohibition against commer- which in many ways are superior to tained in the substitute amendment S4652 CONGRESSIONAL RECORD — SENATE May 4, 1999 significantly exceed those that are in the Treasury has agreed to, which I total assets of $10 billion or more re- the committee-reported bill. think now warrant allowing the bank- tain a holding company, even if they Another area in which the committee ing institution to have a choice. They choose to engage in expanded financial bill departs from last year’s agreement wouldn’t be required to do it in an op- activities through subsidiaries. This is regards a special deposit insurance as- sub. They could still do it in an affil- designed to preserve the oversight that sessment paid by thrifts. iate. They could have a choice between the Federal Reserve now has over the Prior to 1996, thrifts paid a higher as- the two as a matter of their own orga- Nation’s largest commercial banks sessment rate than banks did for inter- nizational preference. through their holding company. So this est payments on certain bonds issued Last year, the Treasury was clear was an effort by the Treasury to ac- to pay for the resolution of the savings that they would not do real estate in commodate one of the concerns that and loan crisis, so-called ‘‘FICO the operating-sub. And they continue had been repeatedly expressed by the bonds.’’ In 1996, Congress acted to close to hold to that position this year. In Federal Reserve. this assessment differential on FICO addition, the Treasury last year agreed Furthermore, the substitute amend- bonds. The rates were to be equalized that insurance underwriting may not ment contains certain additional safe- until January 1, 2000, and the bill that take place in a bank subsidiary. This guards that the Treasury Department we reported last year left the 1996 prohibition on insurance underwriting now supports for financial services agreement intact. The committee bill would be in addition to an explicit pro- modernization legislation. Every dollar now before us would extend this assess- hibition on real estate development of a bank’s investment in a subsidiary ment differential for another 3 years, conducted by bank subsidiaries to would be deducted from the bank’s cap- so that thrifts would continue to pay a which the Treasury agreed last year. ital for regulatory purposes. In this higher assessment rate for another 3 So we have these two areas now that way, the bank would have to remain years. were provided for and placed outside of well capitalized, even after deducting This may well lead institutions to the op-sub umbrella. the investment in the subsidiary, and shift their deposits from the thrift in- On merchant banking, the Treasury even should it lose its entire invest- surance fund to the bank insurance has agreed that the Federal Reserve ment. fund, which might well create stability shall have the authority to define mer- Secondly, a bank could not invest in problems for the thrift insurance fund. chant banking activities and bank sub- Chairman Tanoue has written that a subsidiary in an amount exceeding sidiaries. This meaningful step on the this provision serves no positive public the amount the bank would pay to a part of the Treasury will contribute to policy purpose. And it is not in the sub- holding company as a dividend. bank subsidiary activities being struc- stitute amendment that is now before And, thirdly, the strict limits that tured in a prudent fashion. us. now apply to transactions between Let me now turn to an issue in which Merchant banking presents a poten- banks and their affiliates would apply my colleague, the chairman of the tial breach in the separation of bank- to transactions between banks and committee, has spent a considerable ing and commerce. The possible dan- their subsidiaries. amount of time here on the floor today gers would be increased if two different These restrict extensions of credit in pointing out the differences between regulators were to define separately from banks to their affiliates guaran- the substitute that is now before us the dimensions of permissible mer- teed by banks for the benefit of their and the committee bill. chant banking activities. Then to avoid affiliates and purchases of assets by All of these provisions I have thus far the possibility that would happen— banks from their affiliates. All such enumerated were essentially contained that the dimensions of the permissible transactions must be at arm’s length, in the bill that was reported last year merchant banking activities would be and fully collateralized, and the total by the committee on a 16-to-2 vote. The defined by two different regulators who amount of such transactions between a one area in which the substitute would have different concepts—in the bank and all of the affiliates is limited. amendment differs from last year’s bi- substitute, we have the provision that In total, these safeguards pertaining partisan bill is its treatment of oper- the Federal Reserve would have the ex- to the regulation of bank subsidiaries ating subsidiaries and banks. clusive authority to define merchant should eliminate any economic benefit Last year’s bill contemplated that banking activities and bank subsidi- that may exist when activities are con- principal activities, such as under- aries. ducted in bank subsidiaries rather than writing securities and insurance, would The Treasury has also agreed that holding company subsidiaries. take place in a holding company’s sub- the Secretary and the Federal Reserve The provisions regarding the scope of sidiary rather than bank subsidiaries. should jointly determine which activi- activities permitted for bank subsidi- Certain agency activities such as sales ties are financial in nature, both for a aries should remove any opportunity of insurance were permitted in bank holding company subsidiary and for a for regulators to compete with one an- subsidiaries. bank subsidiary. Both the Secretary other to the detriment of the safety This approach was supported by the and the Federal Reserve would jointly and soundness of the banking system, Federal Reserve. It was opposed by the issue regulations and interpretations or the separation of banking and com- Treasury Department. That was an im- under ‘‘the financial in nature’’ stand- merce. portant difference last year. It remains ard. This would eliminate a potential FDIC Chairman Tanoue testified: an important difference this year. competition between bank regulators. From a safety-and-soundness perspective, As the legislative process has pro- Further, to place activities on an both the bank operating subsidiary and the ceeded, the Treasury Department has equal footing, the same conditions holding company affiliate structures can agreed to significant additional safe- would apply to a national bank seeking provide adequate protection to the insured guards regarding the scope and regula- to exercise expanded affiliation depository institution from the direct and tion of bank subsidiaries’ activities. through a subsidiary as a holding com- indirect effects of losses in nonbank subsidi- With these safeguards, it appeared to pany seeking to exercise those affili- aries or affiliates. us that banks should be given the op- ations. These conditions are that banks This position of the current FDIC tion of conducting financial activities be well capitalized, well managed, and Chairman was echoed by three former in operating subsidiaries. That ap- in compliance with CRA. Chairmen of the FDIC in an editorial proach is contained in the substitute The Treasury also supports the appli- that I printed earlier in the remarks. amendment now before the Chamber. cation of the functional regulation of On the basis of the provisions agreed to by President Clinton has indicated that securities and insurance activities tak- the Treasury Department and the testimony he will veto the reported bill in part ing place in bank subsidiaries just as it given by the FDIC— because ‘‘it would deny financial serv- applies to holding company subsidi- And I want to underscore the efforts ices firms the freedom to organize aries. on the part of the Treasury Depart- themselves in a way that best serves These provisions are all reflected in ment to address questions that had their customers.’’ the substitute amendment. been raised last year; in other words, Let me talk a bit about the safe- In addition, the Treasury supports a what we are containing in the sub- guards, the changes in the sense that requirement that national banks with stitute differs from what the Treasury May 4, 1999 CONGRESSIONAL RECORD — SENATE S4653 was putting forward last year and has about what makes sense and what is sways anybody in the private sector or encompassed all of these various safe- simple and what is readable. in any real world activity. But sim- guards which they have sought to I begin by asking people to look at plicity, and the sort of clear approach develop— the bill adopted by the Senate Banking that people can follow—if they are buy- [it was our judgment that] permitting Committee modernizing financial serving a roadmap or if they are buying a bank operating subsidiaries can be con- ices. That bill is 150 pages long. The computer program—is an important sistent with the goals of preserving safety substitute which has been offered by thing. Unfortunately, it is not some- and soundness, protecting consumers, and Senator SARBANES is 349 pages long. thing that is often mentioned in mak- promoting comparable regulation. Members might ask, What is the extra ing the law of the land; but, quite Therefore, we have included the oper- 200 pages for? The extra 200 pages is for frankly, it should be. ating subsidiary provisions in this sub- a convoluted process that breaks the I am going to try to take less time in stitute amendment and regard it as a simplicity of the bill adopted by the responding than I did in my opening meaningful step toward enactment of Banking Committee. statement on this. I want to break the financial services modernization legis- What is very good about our bill is, it proposal into eight areas and discuss lation. is very easy to understand. If a securi- the proposal in that way. There are Let me simply close with these obser- ties firm wants to set up a bank hold- eight key ways that this substitute is vations. The substitute amendment ing company and engage in securities fundamentally different from the bill now before the body achieves the pri- activities, banking activities, and in- which was adopted by the Banking mary objective of financial services surance activities, it can set up a bank Committee and which is before us. modernization; namely, allowing affili- holding company, and outside the bank The first and most important dif- ation of banks, securities firms, and in- it can be involved in insurance and se- ference is that the substitute before surance companies. It does so while curities and it can be involved in bank- us—offered by Senator SARBANES, preserving safety and soundness, pro- ing under the bank holding company. which is different from the bill that tecting consumers, providing for regu- It is a very simple organization. It is Senator SARBANES supported last year, latory parity, and promoting the avail- an organization that provides any one different from the bill that was adopted ability of financial services to all com- of the three financial industries to be- by the Banking Committee last year, munities. come bank holding companies and par- and far different from the bill that is The committee bill, S. 900, falls short ticipate in providing a broad array of before the Senate now—allows banks to of these goals. It undermines the Com- services, including banking services. engage in broad financial services munity Reinvestment Act. It does not And it is an organization that is very within the legal framework of the provide bank operating subsidiaries easy to understand. It is an organiza- bank. with the scope sought by the Treasury tion that you can set out in 150 pages Alan Greenspan, the Chairman of the Department. Its protections for con- with all the whistles and bells and all Board of Governors of the Federal Re- sumers are substantially less than in the icing on the cake. serve, has said—and I want to read this the substitute. And, finally, it enables The Sarbanes substitute is 200 pages quote because I think it is important. I the separation of banking and com- more complicated, and it is more com- think, No. 1, everybody in America merce to be breached with respect to plicated because it goes about things in takes Alan Greenspan seriously. Sec- the unitary thrift holding companies. a very different way. You can have a ond, I want to remind people that the For all of these reasons, the Presi- bank holding company that can be in majority of the Governors of the Fed- dent has declared he will veto it in its the banking business and in the securi- eral Reserve Board were appointed by current form. I believe that the sub- ties business under the basic frame- this President, Bill Clinton. This is a stitute amendment, the one that is work of the bank. You can have a fi- statement that Chairman Greenspan now before the Senate and on which at nancial services holding company, a to- made just last week before the House the conclusion of this debate we will tally new entity, and it can have an in- Commerce Committee in opposition to vote, represents a balanced, prudent surance company, a bank holding com- exactly the proposal which is the heart approach to financial services mod- pany, and a securities firm. And under of the Sarbanes substitute. When ernization. It is legislation which has the bank holding company, you can Chairman Greenspan refers to ‘‘col- broad acceptance within the industry. have a bank, and that bank can be in leagues,’’ he means every member of In many ways, it is comparable to the the securities business, and it creates the Federal Reserve Board, including activities of the legislation of the another totally new entity, a wholesale those appointed by Bill Clinton: House Banking Committee. financial holding company, and it can I and my colleagues are firmly convinced I am frank to say that I clearly think be in the insurance business, wholesale of the view that the long-term stability of it is the approach most likely to financial institution business, and se- U.S. financial markets and the interests of achieve the enactment of financial curities firms. Finally, banks can be in the American taxpayer would be better services modernization legislation. If the securities business. served by no financial modernization Members want financial services mod- So the first argument I want to make bill rather than one that allows the pro- ernization legislation, if Members want is based on simplicity—not that any- posed new activities to be conducted by to manufacture a legislative vehicle body ever gauged a Federal law based the bank. . . . that can go all the way through to on, ‘‘Does it make sense, is it simple, I want to be sure everybody under- Presidential signature and become law, could people actually employ it, what stands this quote. It is as clear as you then Members should vote for the sub- kind of roadmap is it for the develop- can be clear. The most respected eco- stitute amendment. ment of new financial institutions in nomic mind in America, the man who I yield the floor. America?’’ But the reason our bill can more than any other person on this Mr. GRAMM. Mr. President, I sug- do what it sets out to do in 150 pages, planet has been responsible for the fi- gest the absence of a quorum. and the reason the substitute takes 300 nancial stability that has created over The PRESIDING OFFICER. The pages, is the underlying bill adopted by 20 million jobs and enriched working clerk will call the roll. the Banking Committee has a simple Americans by driving up equity values The legislative assistant proceeded structure that everybody can under- and by creating unparalleled prosperity to call the roll. stand and that securities firms, banks, in America, said last week that he and Mr. GRAMM. Mr. President, I ask and insurance companies could all par- every member of the Board of Gov- unanimous consent that the order for ticipate in. Under our bill, it is easy for ernors of the Federal Reserve believe it the quorum call be rescinded. any one of the three to set up a bank would be better to have no financial The PRESIDING OFFICER. Without holding company. services modernization bill than to objection, it is so ordered. The substitute is a lot more com- adopt the Sarbanes substitute. Mr. GRAMM. Mr. President, let me plicated and brings in a lot of new in- That is pretty clear. I think it is a talk about simplicity and clarity in the stitutions. It would be very hard, in profound position to take. Let me two bills. I know that seldom in writ- terms of a user-friendly roadmap, as to make the point: Everybody who knows ing laws do we hear lawmakers talk how to do this. I do not know that Alan Greenspan knows that Alan S4654 CONGRESSIONAL RECORD — SENATE May 4, 1999 Greenspan goes out of his way not to be erally, within 10 or 20 years, have a fi- of Federal banking law simply to be confrontational. Everybody who knows nancial system where virtually all of out of compliance with CRA and, in the Chairman Greenspan knows that if the securities activities and all of the process, potentially subject not just there is a way of saying something insurance activities, if banks were al- the bank, but an individual bank offi- around the barn, something which lowed to do insurance within the bank cer and an individual board member, to might be offensive to somebody, he itself, would be dominated by a handful a fine of $1 million a day. sort of walks all the way around the of big banks. In other words, our econ- The Independent Community Bank- barn and let’s you understand—where omy would look very much like the ers of America sent a letter today rais- you can hope nobody else under- Japanese economy, in terms of its fi- ing a very important issue. Little stands—that he said your idea is a bad nancial structure. banks have trouble getting people of idea. That is the way Alan Greenspan Chairman Greenspan says, if your substance to serve on their bank works. choice is no bill or doing what the Sar- boards. It is hard because there are li- But in front of God and everybody at banes substitute wants to do, for safety ability issues involved, and one of the the House Commerce Committee last and soundness reasons, for the protec- big struggles that little banks have is week, Alan Greenspan said if the alter- tion of the taxpayer, for the protection getting city leaders to be on the bank native is the Sarbanes substitute or no of competition, for the protection of board. We want the best people to serve bill, he and every member of the Board the competitiveness of the American on bank boards because they are the of Governors of the Federal Reserve are economy, Chairman Greenspan says: people who ultimately make decisions convinced that ‘‘no bill’’ is better than Kill the bill before you do what the that affect safety and soundness, that the Sarbanes substitute. Sarbanes substitute would do, in terms affect the well-being of the depositor, Why does he say this? In a dozen of letting banks in these other lines of that affect lending policy, and that af- other quotes, he basically says two financial services within the structure fect the taxpayer through Federal de- things: No. 1, since we have deposit in- of the bank. posit insurance. surance, where the taxpayer is on the Chairman Greenspan said let banks I want you to listen to the president hook for bank failures that threaten do these things—let them sell insur- of the Independent Community Bank- insured deposits, he is concerned that ance, let them provide securities serv- ers of America. This is an organization allowing banks to get into these other ices—but make banks do them outside that represents small, independent kinds of financial businesses within the the bank where they have to take cap- banks all over America. Listen to this framework of the bank itself endangers ital out of the bank to capitalize these paragraph: deposit insurance and threatens the companies and where they compete We also have grave concerns about expand- taxpayer. So the first reason that with nonbanks on an equal footing. ing CRA enforcement authority to include Chairman Greenspan made this ex- This is a critically important issue, the levying of heavy fines and penalties traordinary statement—in fact, the and it is an incredible paradox, an ab- against banks or their officers and directors. strongest statement he has made as solutely astounding paradox that Sen- An ongoing challenge for many community banks in small communities is finding will- Chairman of the Board of Governors of ator SARBANES, who supported Chair- ing and qualified bank directors. Legislation the Federal Reserve—is concern about man Greenspan’s position in the bill following the savings and loan crisis of the the insurance fund and the taxpayer last year, is now taking exactly the op- 1980s and early 1990s greatly increased the being on the hook. posite position. It is my understanding amount of civil monetary penalties to which The second concern is that if banks that perhaps all the Democrat Mem- bank officers and directors may be subject. provide these expanded activities, such bers of the Senate may be inclined to Any increase in the potential for fines and as securities and insurance or whatever take this position, a position that penalties could provide further disincentive activities are ultimately allowed with- many of them, perhaps two out of for serving on a bank board. in banks, the subsidy that banks have every three, would have opposed as any All Members should realize that this in deposit insurance—something no kind of freestanding measure. I hope does not apply just to small banks, it other institution has besides banks, that is not the case, but perhaps it is. applies to big banks. If you had a bank S&Ls, and other institutions that have If for no other reason, if you do not with 200 branches and just one branch Federal guarantees, and when I am have 101 other reasons to vote against fell out of compliance, you could po- saying banks I mean broadly defined— the Sarbanes substitute, listen to Alan tentially be subjected to this fine. This plus the ability to borrow from the Greenspan: Spare the taxpayer, spare is regulatory overkill. This is totally Federal Reserve at the lowest interest deposit insurance, and spare the econ- unjustified. rates at which anybody in the world omy by rejecting this proposal. Our colleague, Senator SARBANES, borrows, and the ability to use the Fed The pending substitute dramatically says we have not presented enough wire, where they can wire money that expands CRA. It dramatically expands data about abuses. Where is the abuse instantly becomes bank reserves and it CRA in several ways. For the first time that could possibly call for such a pro- is guaranteed by the Federal Reserve in the history of CRA, the Sarbanes vision? This is punitive legislation at bank, Chairman Greenspan and the substitute provides that financial insti- its worst, and if you think we have a Federal Reserve have estimated that if tutions that fall out of compliance problem now with community groups banks were allowed to provide these with CRA will now be deemed to be in intervening and demanding cash pay- services within the bank, they prob- violation of banking law and, there- ments, you add to it a possibility that ably have an effective subsidy of fore, potentially subject to fines of up a bank officer or board member could around 14 basis points. And this sub- to $1 million a day. be fined $1 million a day and you are sidy is due to the access to these three Let me remind those who do not fol- going to multiply the abuse a thou- items: Deposit insurance, the Fed win- low these issues—and why would you sandfold. This is a proposal which was dow, the Fed wire. unless you are in this line of work?— clearly written, and I can tell you Chairman Greenspan has explained to currently under the Community Rein- where and when, when there was a des- anybody who would listen that if you vestment Act, while banks are evalu- perate effort in the House to get their let banks perform these services within ated every year and while banks take a bill passed last year. It passed by one the banking structure itself, banks will legitimate pride in getting good scores vote, and they basically gave this pro- have an advantage over those who are on their evaluations, they are not revision to groups that wanted to mas- providing securities services and sell- quired to be in compliance. The only sively expand CRA. That is how it got ing securities outside of banks; that if time CRA imposes a ‘‘penalty’’ is if a into this whole debate. you allowed banks to do insurance bank wants to take an action that re- I cannot believe anybody seriously within the bank, they would have an quires CRA evaluation—such as the would want to subject bank officers advantage over insurance companies opening or closing of a branch, or sell- and bank directors to a potential $1- that are not banks. ing or buying a bank, or merging with million-a-day fine for temporarily fall- Chairman Greenspan has tried to another bank. ing out of compliance with CRA. alert us to the fact that if we adopted The Sarbanes substitute would vastly The Sarbanes substitute expands the Sarbanes substitute we could lit- expand CRA by making it a violation CRA by requiring CRA compliance to May 4, 1999 CONGRESSIONAL RECORD — SENATE S4655 engage in new financial activities, in- unless the protesting group presents You might ask, why could anybody cluding insurance and securities. No some substantial evidence that this be opposed to that? Can you imagine CRA test is now required for such bank is out of compliance—something that you have a bank which is trying banking activities. that their regulators had said three to buy another bank, and they have Here is the whole issue. Today, some times in a row they were not—unless been in compliance with CRA for three banks do sell insurance. Today, some 20 they can present some substantial evi- evaluations in a row and are currently banks engage in securities activities, dence, then based on that objection in compliance, they have hundreds of and virtually every bank, through alone, the regulator cannot turn down millions of dollars at stake in consum- their holding company, engages in ac- the proposal or delay it. mating this agreement, a decision that tivities which, under the Sarbanes sub- I went through earlier today—and I can affect thousands of people, and you stitute, would be pushed out of the hope people heard it and remember it— let one protester, who often is from not trust department and into an affiliate but I went through what ‘‘substantial just another State but another region or an operating sub and, therefore, evidence’’ means. The most important of the country—a protester from would subject that bank to this new thing to remember about it is, the law Brooklyn, NY—and he comes in and regulation. already requires it. All banking law re- protests a bank merger in Illinois and The point is, current law does not requires decisionmaking to be based on will not go away until he gets his ‘‘ex- quire a bank to get CRA approval to ‘‘substantial evidence,’’ and bars deci- penses paid’’ and until he gets a cash sell insurance. Current law does not re- sionmaking based on arbitrary and ca- payment? Now, under our provision, quire a bank to get CRA approval to pricious action. All banking law cur- anybody can come in and protest, but sell securities. This is, again, a massive rently requires it. All appeals of bank- in order for them to be able to stop the expansion in CRA. And if the Senator ing regulator decisions must be based process, they have to provide substan- is justified in questioning our justifica- on the absence of substantial evidence. tial information. tion for wanting to adopt two modest So really what we are trying to do I cannot understand how anybody reforms of CRA, I think it is reasonable here is force the regulator to comply can be opposed to that. The second provision of our bill that to ask what is the justification for this with the normal administrative con- would be overturned by the SARBANES massive expansion in CRA. vention, which is, if somebody wants to substitute is the small bank exemp- Finally, on CRA, for the first time in enter a process—at the last moment, in tion. Let me try to explain this, I American history, the Sarbanes sub- this case—and demand that someone think, in a way that everybody can un- stitute would expand CRA to a non- not be allowed to do something that derstand. insured institution. The justification they have earned a right to do, then I have two colleagues here. Let me for CRA was that banks and other they must present substantial evidence say that I am sorry, but Senator SAR- banking-type institutions, S&Ls, have to show that they are not complying. BANES took an extended period of time deposit insurance. Senator SARBANES suggested that the to present this, and I have to go And that is a subsidy to the bank. evidence can only be on items which through and be sure it is responded to Therefore, asking the bank to provide have occurred since the last evalua- comprehensively. So I am probably these resources, on a broad basis, to tion. Not so. In fact, what our bill says going to talk for another half an hour the community or to allocate capital is that the regulator may not delay or or 45 minutes. If either one of my col- based on a Government dictate rather deny an application unless ‘‘substan- leagues has just a few minutes, I will than the market had a justification. tial verifiable information arising stop and let them speak. But I do not That was the justification for CRA. since the time of [the bank’s] most re- want them staying around here, stand- The SARBANES substitute would ex- cent examination under that Act dem- ing up and thinking that I am about to pand CRA coverage to a new institu- onstrating noncompliance is filed with finish. So with that, if either one of tion, the wholesale financial institu- the appropriate Federal [regulator].’’ you just has an announcement you tion, or WFI, which does not have FDIC Our provision provides that any new want to make or a unanimous consent insurance. This is a clear expansion of information may be presented. It is not request, I will yield. OK. CRA beyond anything that has ever something that has occurred since the Here is the problem. You have little been enacted into law. In addition, the last evaluation. It is something that banks in rural areas. They have, most SARBANES substitute would repeal the the banking examiners did not have be- of them, between 6 and 10 employees. two reform provisions that are in the fore when they said the bank was com- They are serving communities that do bill. plying with the law. not even have a city, much less an I am not going to get into a long dis- I went through at great length the inner city, and they are being forced to sertation on this subject, because we 900—I did not go through all 900 of comply with this law called CRA. are going to have an opportunity to de- them—but 900 times in Federal stat- It would be one thing if there were a bate this subject at length tomorrow— utes we refer to ‘‘substantial evi- record showing that these small, rural and believe me, I am ready to debate dence.’’ We have 400 court cases that banks are not lending in their commu- it—but I just want to make a couple have defined it. What does it mean? nities. But the plain truth is, as I points about the provisions that would ‘‘More than a scintilla of information,’’ pointed out earlier, since 1990 there be stricken by the SARBANES sub- a factual basis under which a reason- have been 16,380 examinations constitute. able person might reach a conclusion— ducted by bank regulators of small First of all, our first provision is an not that they would reach a conclu- banks and S&Ls in rural areas, that is, integrity provision. Put simply, con- sion, but that they might reach a con- outside standard metropolitan areas. sider a bank that is in compliance and clusion. And in those 16,380 examinations, only has been in continuing compliance So what Senator SARBANES is deter- 3 rural banks have been found to be in with CRA for 3 years in a row, so that mined to kill is a simple proposal that substantial noncompliance. These ex- in the mind of the regulator, based on certainly does not repeal CRA or over- aminations and the regulatory burden the information they have been pre- turn CRA or do violence to CRA. All it imposed in complying with this law sented—and any group in America can says is, if a bank has a long record of costs the average rural bank between have an input into those evaluations— being in compliance with CRA, if they $60- and $80,000. Imagine, you have a this bank is a good actor, they have a are in compliance with CRA now, and bank with 6 to 10 employees and they good record of compliance. they want to undertake an action that have to pay $80,000 to comply with a The SARBANES substitute would requires CRA evaluation, that if some- law that has found, since 1990, 3/100 of 1 strike our provision that says that body wants to come in and object, they percent of them out of compliance. while anybody can present any infor- can say anything they want, they can You might ask, is this overkill? It is mation they want to the regulator— present any information they want, interesting, because in other financial and the regulator can demand a new but the regulator cannot overturn laws that relate to similar issues, we evaluation when the bank in question their established record unless the pro- exempt banks outside standard metro- seeks, for example, to merge with an- tester presents substantial information politan areas. In the HMDA statute re- other bank or sell or buy a bank—but or data to back up their claim. lated to similar areas, if you are very S4656 CONGRESSIONAL RECORD — SENATE May 4, 1999 small, you are exempt if you are out- quirements of compliance. We spend hours here is a little bitty bank trying to side a standard metropolitan area. And documenting what we have already done stay in business, and 1 out of every 10 that is what we are talking in our pro- rather than spending that time more effi- people they employ—because they only vision—exempting very small banks in ciently by doing more for our community. employ 10—has to spend time com- very rural areas. This is from Farmers and Merchants plying with one regulation, which, over Instead of my speaking for the prob- Bank, and this is in Arnett, OK, writ- 9 years, in 16,000 audits, has found 3 lem, let me let the people who are af- ten by the executive vice president and violators? Yet, our colleague, Senator fected speak. They are a lot more ar- CEO. SARBANES, is so outraged that we ticulate on these issues than I am. Let I am the CEO as well as the chief loan offi- would lift this paperwork burden that me just run over some numbers with cer, compliance officer and CRA officer. I he has offered a substitute. I don’t un- you. have to wear so many hats because we are derstand it. I don’t understand it. But We have received hundreds of letters small and have a staff of only 7 including I don’t guess I have to understand it. myself. CRA compliance, done correctly, from small banks all over America urg- takes a lot of time, which takes me away First National Bank, founded in 1876, ing us to adopt the provision in this from my primary responsibility of loaning in Wamego, KS, spelled W-A-M-E-G-O. bill; we have received 488 as of today. money to my community. It has almost got- I ask the Chair, am I pronouncing it What these small banks tell us is that ten to the point that lending is a secondary right? CRA compliance is costing them be- function. It seems like we have the choice of The PRESIDING OFFICER (Mr. tween $60- and $80,000 a year. lending to our community or writing up CRA BROWNBACK). The Chair notes that the The First National Bank of Seiling, plans showing how we would lend to the correct pronunciation is Wamego. OK, has estimated it takes the equiva- community if we had time to make the Mr. GRAMM. The occupant of the lent of one full-time employee to com- loans. Chair knows because he knows and ply with CRA. The Chemical Bank of It is funny how wisdom just leaps off loves everybody that lives in that Big Rapids, MN—with assets of $94 mil- the page. State, and I appreciate that. Wamego, lion—agrees that it takes one full-time Large banks can hire full time CRA offi- KS. This is a little bitty bank, the employee. Crosby State Bank of Cros- cers and other compliance personnel to ad- First National Bank of Wamego, KS, by, TX, agrees with the one full-time minister CRA programs, but small banks founded in 1876. In other words, it has employee. The First National Bank of cannot . . . been in business for 123 years. How big Cortez, CO, thinks that they spend a This is from the Redlands Centennial do you think it is after 123 years of minimum of 100 hours annually of CRA Bank, and it is in Redlands, CA. service? They have $65 million in as- compliance officer time. We spent approximately $80 thousand dol- sets, and it is the lifeblood of Wamego, Let me read from some of the letters lars of our shareholders’ money last year KS. It is struggling with paperwork. It that have been submitted to the com- supporting this ill-defined regulation. Even is a small bank and has 6 to 10 employ- mittee. I am only going to read from the regulators who examined us were hard ees. People in that town are proud they pressed to give us specific definitions on how have a bank. In a lot of towns that size, five or six of them, but I think they we might better implement this regulation. I tell the story. the bank has already gone broke and am urging you to get rid of this nonsensical moved off to the big city. This bank The first letter is from the Cattle Na- CRA yoke. Keep up the fight, because there tional Bank. The Cattle National are a lot of us out here who are too busy bal- has not deserted its customer base. Bank, for those of you who don’t know, ancing making a living with government They are trying to make a living. Let and you should, is in Seward, NE. Here regulations in this crazy business ... me read to you from their letter: is what the vice president and cashier Chemical Bank North, which is a lit- Our bank was listed 2 years in a row as the of the Cattle National Bank in Seward, tle bank in Grayling, MI. It is a $74 best bank in Kansas to obtain loans for small businesses by Entrepreneur Magazine. NE, says: million bank, which means it probably They have received an outstanding Let me add that since the origination of has 6 to 10 employees. public disclosure of CRA examinations we rating under CRA—the best rating you As it is, we must devote disproportionate can get. have not had one person from our commu- resources to creating and maintaining the nity ever request the information. The only ‘‘paper trail’’ that the current CRA regula- Our outstanding grade did not make us a requests that we have had have come from tions require. Our board members must at- better bank. CRA did not make us make bank consultants wanting to glean some tid- tend time consuming CRA Committee meet- more loans than we would have made. CRA bit from our disclosure. ings and our officers and staff members did take a lot of employee time to document that we were an outstanding bank. This is a letter from Copiah Bank, spend significant valuable time preparing re- which is a national bank in Crystal ports and keeping records that serve no pur- Here is the point. This is a little Springs, MS. This is written by the pose other than to keep us in compliance bank that has been doing the job for with a regulation that attempts to enforce president and chief executive officer. 123 years. It only has $65 million in as- from a regulatory standpoint what we do ev- sets. This is a very small bank. It prob- Our Compliance Officer, Gary Broome, and eryday in the normal course of our his assistant have spent many research ably does not have 10 employees. It has business . . . I would estimate that we de- been evaluated as being outstanding. hours and reams of paper in their efforts to vote the equivalent of a full time employee comply with the mandated requirement’s to all aspects of CRA compliance. But in 16,000 evaluations over the last 9 paper work. We have even had to outsource years, bank regulators nationwide some of its checkpoints to a compliance con- I mean, does anybody care that, for found only 3 banks that were in sub- sultant from time to time. As an $83 million this little bank, that one-tenth of their stantial noncompliance. Why are we community bank ... that means they prob- payroll is needed to comply with a gov- tormenting this little bank in Wamego, ably have 6 or 7 employees . . . we feel an ernment regulation that in 9 years, in KS, which is doing a great job, and im- obligation to help in your efforts toward eas- 16,000 such audits, has found only 3 ing our paper work burden. posing $60,000 to $80,000 in costs on banks substantially out of compliance? them to discover that only 3 banks out Lakeside State Bank, ND. In 9 years, in 16,000 audits of banks like of 16,000 evaluations aren’t doing a As a former bank examiner for the Federal the Chemical Bank in Grayling, MI, good job? Deposit Insurance Corporation, which in- government regulators have found only The next letter is from Nebraska Na- cluded consumer compliance experience, and 3 banks out of the 16,000 evaluations tional Bank, which is in Kearney, NE. as a banker for over 15 years I believe I have where there was substantial non- They have $34 million in assets. This a good understanding of the intent and the compliance. And yet, we are making workings of CRA. Over 47 years of our exist- has to be one of the smallest banks in ence we have provided financing to virtually these banks pay $80,000 a year. Does America. It has been in business for an every main street business in our town, our anybody care? You know, we talk extended period of time. I don’t know customer base includes approximately 80 about the little guy and why aren’t we how many employees they have, but I percent of the area farms and for the last here debating this and that. Does any- would guess five or six employees in several years over 50 percent of our loans body care that a little bank, trying to the whole bank: have been to American Indians. The law— serve consumers in a small town, a lit- We do not make foreign loans. We don’t And he means CRA. tle independent bank in an era when a speculate in derivatives. We don’t siphon de- . . .is a heavy burden because of the expan- lot of people are worried about all the posits from this area to fund loans else- siveness of the regulations and the paper re- banks being taken over by big banks, where. Instead, like virtually all banks May 4, 1999 CONGRESSIONAL RECORD — SENATE S4657 under $250 million in assets [remember, they back tonight or in the morning. Then Mr. KERRY. I thank the Chair. I are only $34 million in assets], we provide we are going to have a vote on Senator thank the Senator from Texas. I thank home loans, business loans, farm loans, con- BYRD’s resolution commending the the Senator from Maryland. struction loans. We don’t do this because of Rev. Jesse Jackson, and other clergy Mr. GRAMM addressed the Chair. the Community Reinvestment Act, but be- The PRESIDING OFFICER. The Sen- cause it makes good business sense. I bit- leaders who participated in his trip. terly resent every minute of my time and That vote is going to occur in the ator from Texas. that of my staff spent to comply with this morning; I am not sure exactly what Mr. GRAMM. Mr. President, let me regulation because it takes time away from time. But the idea would be to have just touch on four more issues in the productive duties. I feel the regulation is that vote in the morning and then, at Sarbanes substitute that I take strong now being used by consumer activist groups that point, either I or the majority issue with. I see Senator GORTON is to shake down banks seeking regulatory ap- leader would move to table the amend- here and he wanted to say something. proval for expansion of mergers. ment and we would have a vote on it. The next concern that I have and Now, that is a strong testament. We would then offer one of our amend- that the majority has with the Sar- Nothing I could say could give a ments at that point. banes substitute is that it adopts secu- stronger testament than that. Mr. KERRY. Will the Senator yield? rity law revisions making it signifi- Let me give you one final one. Like I Mr. GRAMM. I am happy to yield. cantly more difficult for small banks said, we have 488 just like it. They Mr. KERRY. Unaccustomed as I am to engage in trust and fiduciary activi- don’t understand why it is unreason- to speaking from this side of the aisle, ties. These activities currently make able to lift this heavy regulatory bur- maybe it will get me extra credit from up about 15 to 20 percent of the reve- den when only 3 substantial noncompli- the Senator from Texas. Would it be nues of small banks. ant banks have been discovered in 9 possible to carve out some time be- Here is the problem. Our bill goes to years after 16,000 audits. You take cause of my complications on the great lengths to say to some small 16,000 audits at $80,000 apiece, for the schedule? I have been here a number of bank in some small town that doesn’t banks, that is a lot of money for these times today trying to get in on the intend to get into financial services, little towns. schedule to speak prior to the vote. that nothing in this bill is going to The last letter is from American Would I be able to have 20 minutes set force them to take their trust depart- State Bank, an independent bank in aside for that purpose? ment activities that they are now en- Portland, OR. It is signed by the chair- Mr. GRAMM. I would assume we will gaged in and either set up an operating man and the CEO: have a debate in the morning and that subsidiary or set up an affiliate. As one of the oldest and most strongly cap- we will probably have at least a half an I believe the provisions of the Sar- italized African American owned banks west hour on each side. I see nothing unrea- banes substitute could adversely affect of the Mississippi River, Portland based sonable about having time in the morn- virtually every small bank in America American State Bank supports your position ing. I would strongly suggest that we and endanger the operations that they on CRA exemption for nonmetropolitan do it. Any Member can object to any currently can do within a bank only banks. We also urge you to explore exempt- unanimous consent request. Otherwise, ing from CRA requirements minority-owned under regulation by the bank in the if the Senator wishes to have time, we name of trust department activities. I commercial banks. Today, minority-owned will divide the time equally tomorrow. banks still maintain their focus on serving believe the provision offered by Sen- I don’t see any reason why he couldn’t our Nation’s minority communities and ator SARBANES could force many of have a chance to speak tomorrow. their citizens. It is redundant at best to im- these banks to set up operating sub- pose CRA requirements on banks whose sole Mr. KERRY. Mr. President, if the Senator will further yield, I don’t want sidiaries, or set up affiliates, and in the purpose is to serve minority citizens. At process drive up their costs and threat- worst, it compels minority banks to sustain to disturb the schedule of the Senator burdensome, expensive administrative costs from Maryland or concept of how he en their revenues. Now we come to the so-called unitary and subjects banks to a bureaucracy largely wishes to proceed managing our side of unaware of the realities of the inner-city the aisle, if that would fit within his thrift holding company. If you listen to marketplace. framework. Senator SARBANES, you get the idea Now, I could go on and on, Mr. Presi- Mr. SARBANES. If we have sufficient that somehow we are expanding com- dent, in outlining the arguments re- time before we vote on this substitute mercial activities of banks. The reality lated to small banks, but let me stop to take care of the Senator and a cou- is that the Sarbanes substitute, by al- there on this issue and go back to the ple of others who want to speak on it, lowing banks to hold a commercial other provisions of the bill. including the minority leader, I don’t basket for 15 years, expands commer- Let me say to my colleague that to have a problem with that. But if the cial activities of banks substantially go through and respond to each of the time period is extremely short, then we more than our bill does. points Senator SARBANES made is prob- would be precluded from accomplishing Our bill restricts the ability of com- ably going to take me another half this objective. mercial companies—an ability they hour. If the Senator has a unanimous Mr. GRAMM. Why don’t I do this. have under current law—our bill re- consent request, or a short statement, Just reclaiming my time, why don’t I stricts their ability to apply for char- I would be glad to yield. But if not, I try to finish up here in 20 minutes and ters and to set up a unitary thrift. want him and others to know that I yield and let the Senator speak? Unitary thrifts are legal under cur- should be finished maybe by 7 o’clock. Mr. KERRY. Mr. President, the prob- rent law. So, for example, General Mo- Mr. SARBANES. Will the Senator lem is that isn’t going to work on the tors can get an S&L charter and can go yield? schedule I have now this evening. I into the S&L or banking business Mr. GRAMM. I am happy to yield. simply say to the Senator, Mr. Presi- through that charter. That is the law Mr. SARBANES. Senator KERRY has dent, that it would seem to me, in fur- of the land today. As a result, a sub- been trying to make a statement all therance of what the Senator from stantial number of commercial compa- day. I guess, by this process he won’t Maryland has said, that if we were to nies have gotten those charters. be able to do it now. What is the Sen- write in the order for the morning for Our bill ends that practice. And effec- ator’s intention for tomorrow? How tomorrow that X amount of time will tive on the day that the underlying can we carve out some time? be set on both sides, taking into ac- committee bill was released as a com- Mr. GRAMM. It was my hope tonight count the amount of time I have re- mittee print, any application for a uni- that we could finish debate on this quested from the Senator, we could ac- tary thrift received after that date amendment, and that we would have a complish all of the goals, if the Senator would not be acted upon. vote tomorrow. Our problem, as you were willing to try to make that the The difference between the Sarbanes know, is that we have the two Senators order. substitute and what we do is that, in from Oklahoma who have flown home Mr. GRAMM. I don’t know whether addition, the Sarbanes substitute goes to participate in the evaluation and as- we have 30 minutes equally divided or 1 back and says that those unitary sistance with the terrible tragedy that hour equally divided, but within that thrifts that already exist would have happened there with the tornadoes. We constraint, it seems to me, the Senator an ex post facto change in law that are hopeful that they are going to be could speak. would limit their ability to sell their S4658 CONGRESSIONAL RECORD — SENATE May 4, 1999 thrift—which is a change in the regula- substitute wasn’t rejected just because I do not believe we should limit the tions under which they set up or it was deficient in, say, five of these unitary thrift chartering option at all. bought the charter. eight areas. It was rejected because in Unitary thrifts have a longstanding I believe that this is a takings of each and every one of these areas it record of serving their communities. property, that it violates the fifth was inferior—in terms of the well-being There is a glaring absence of any evi- amendment of the Constitution. In of the taxpayer, the well-being of the dence that their commercial affili- fact, we have recently had a Supreme depository insurance system, the well- ations have led to a concentration of Court ruling striking down another ex being of the economy—to the under- economic powers or posed risks to con- post facto law that Congress passed lying bill that was adopted by the sumers or taxpayers. This legislation that took away provisions that were in Banking Committee. includes a provision that grandfathers contracts that banks—and in this case I urge my colleagues to reject this the commercial affiliation authorities S&Ls—had negotiated with Federal substitute. There will be a tabling mo- of unitary thrifts chartered or applied S&L regulators. tion tomorrow on some basis yet to be for before February 28 of this year. So we create no new commercial agreed to. Given the lack of any evidence that powers. There is nothing in our bill I yield the floor. those affiliations are harmful, finan- that in any way expands the ability of Mr. GORTON. Mr. President, I sup- cial modernization should, at the min- banks to hold commercial assets, port the distinguished Senator from imum, not roll back the authority of whereas the substitute will allow them Texas, the chairman of the Banking existing unitary thrifts. to hold them for 15 years under a Committee, in his advocacy of his own Limiting the ability of commercial grandfather provision, a provision that proposal and in his desire that we de- firms to charter thrifts in the future is is not in our bill. feat the substitute which is before the debatable policy, but there is no ques- I was somewhat stunned to hear the Senate at the present time. tion in my mind that the authorities of He has stated in great detail his rea- existing unitary thrifts should not be presentation by Senator SARBANES that we were expanding commercial powers son for his support and the majority abolished. support for his financial reorganization For these reasons, I oppose the when in reality his substitute has a 15- bill. I mention only three differences Democratic substitute and intend to year grandfather for existing activi- that seem to me to be very significant. fight any later amendment which deals ties, a provision that our bill does not One is the arcane but vitally impor- with this issue alone. have. Our bill not only does not expand tant difference between a holding com- With the expression of my support commercial activities but it cuts off pany structure and a structure of mak- for the position taken by the distin- the issue of new unitary thrift licenses. ing subsidiaries. In this respect, it guished chairman of the Banking Com- But we do not go back and change the seems to me the holding company sys- mittee, I yield the floor. rules of the game on S&Ls that in- tem has worked well for this country, Mr. SARBANES. Mr. President, I vested good money, many of them dur- literally for generations. The advice of suggest the absence of a quorum. ing the S&L crisis, saving the taxpayer the Chairman of the Federal Reserve The PRESIDING OFFICER. The billions of dollars. We don’t go back Board, Alan Greenspan, overwhelm- clerk will call the roll. and change the rules of the game on ingly supports the proposition of the The assistant legislative clerk pro- them. choice that has been made in this re- ceeded to call the roll. Mr. GRAMM. Mr. President, I ask I talked about No. 7. That is the com- gard by the committee majority itself. mercial basket issue. The substitute of- Second, with respect to the Commu- unanimous consent that the order for fered by Senator SARBANES allows com- nity Reinvestment Act, it also seems the quorum call be rescinded. The PRESIDING OFFICER. Without mercial banks to hold these commer- to me that the chairman’s modest re- objection, it is so ordered. cial assets for up to 15 years. There is forms are steps in the right direction. f no similar provision in our bill. They do not destroy that system by Finally, the Sarbanes substitute any stretch of the imagination but, THE UNITED STATES CAPITOL strips away power from State insur- they do fire a warning shot across the POLICE AND RECRUIT CLASS 116 ance regulators. Under the Sarbanes bow of those who would use that bill Mr. LOTT. Mr. President, the past substitute, States could only collect for extortion purposes. year has been a trying one for the information but could not act on infor- Finally, and most important to me in United States Capitol Police. The mation, nullifying the authority of my own State, is the way in which the deaths of Officer Jacob Chestnut and State insurance commissioners to re- bill, is against the proposed substitute, Detective John Gibson struck a chord view and approve or disapprove appli- deals with unitary thrifts. A unitary with the American people and the Con- cations. thrift is authorized to affiliate with gress. We are keenly aware that we The National Association of Insur- both financial and commercial compa- rely on the men and women of the U.S. ance Commissioners opposes this provi- nies. This authority is balanced both Capitol Police to protect the Capitol sion. by lending restrictions and by safe- Complex and all of those who work and So basically those are the dif- guards prohibiting thrifts from extend- visit here. In doing so, they ensure that ferences. I think the differences are ing credit to a commercial affiliate. the national legislative process pro- very clear and very stark. I hope my This chartering structure has been ceeds unhindered and that citizens are colleagues will look at them and will available for more than 30 years. To safe and free to visit their Capitol, reject this substitute. the best of my knowledge, during that view the House and Senate in session, This substitute would create a bill 30-year period of time, 30 years during and meet with their elected representa- that Alan Greenspan and every mem- which thrifts have been allowed to tives. ber of the Federal Reserve Board, combine with commercial firms, there Protecting the Capitol Complex re- speaking as a body through the Chair- have been no major scandals, no seri- quires well trained, highly-motivated, man, has said would be worse, in terms ous corruption, no sapping of Amer- and dedicated police officers. On April of danger to the taxpayers, danger to ica’s capitalism vigor. In other words, 27, the U.S. Capitol Police added such the insurance fund, danger to the econ- to limit the authority of thrifts while officers to its ranks when it graduated omy, than passing no bill at all. we are extending the authority of com- Recruit Class 116. The twenty-four re- This bill would repeal two very sim- mercial banks in the bulk of this bill is cruits in this class proudly became po- ple, very targeted, very minor reforms to deal with an evil that simply does lice officers after successfully com- of CRA, and would institute the most not exist. pleting five months of exhaustive massive expansion of CRA in America Financial modernization should be training. These officers came from all history. about expanding choices for consumers walks of life and from a number of I think if people look at any one of and chartering options, not con- states around the nation. Many had these eight areas that I have outlined, stricting those options and stripping prior military experience, others had they will conclude that the committee existing authorities from consumer- previous experience in the law enforce- acted properly in rejecting the Sar- oriented institutions without sound ment profession, while some just re- banes substitute. But the Sarbanes policy justification. cently graduated from college. The May 4, 1999 CONGRESSIONAL RECORD — SENATE S4659 common bond among these officers is ure. More importantly, it must serve as the checked the traffic signal and crossed the desire to enter the law enforcement impetus which pushes us forward toward the street. Just as they reached the profession and honor the memory of Of- higher achievement and success. other corner, two cars collided at high ficer Chestnut and Detective Gibson. A contemporary society cannot develop speed in the middle of the intersection. unless it places a premium on education and During the graduation ceremony, human development. The complex issues and One of the cars spun out of control, which was attended by the members of problems we face today require agents with heading directly for the two boys. the U.S. Capitol Police Board, the De- thoughtful and progressive minds committed Without regard for his own safety, An- partment’s Command Staff, and family to bringing about positive change. thony pulled the little boy out of the and friends of the recruit officers, Class I believe that each of us of The Graduating way just before the car jumped the President Robert Garisto gave a speech Class of 116 are those agents of change. curb where the two boys were. on behalf of the members of the Re- Thank you. The third AAA Lifesaving Medal win- cruit Class 116. I feel that this speech is Mr. LOTT. Mr. President, I am proud ner comes from Unadilla, New York. indicative of the caliber of personnel of the men and women of the United On October 8, 1997, Unadilla Elemen- who fill the ranks of the U.S. Capitol States Capitol Police and I appreciate tary School Safety Patrol Nichole L. Police. I ask unanimous consent that what they do, each day, in service to Decker was at her post at the school’s Officer Garisto’s speech be printed in the Congress and the nation. I would back door when she heard a 7-year-old the RECORD. like to congratulate Officer Garisto boy’s desperate cries for help. There being no objection, the mate- and the men and women of Recruit When she went outside, she saw the rial was ordered to be printed in the Class 116 on their accomplishments and boy trapped on the ground by a huge RECORD, as follows: I wish them continued success during dog—a husky/wolf mix. The dog was UNITED STATES CAPITOL POLICE CLASS 116— their careers with the United States biting at the little boy’s face and GRADUATION SPEECH Capitol Police. throat. Without considering what the Good afternoon everyone. I would like to f 50-pound dog could do to her, 13-year- start by expressing my gratitude to the old Nichole began shouting and waving HONORING THE AAA SAFETY PA- Members of Class 116. I have been fortunate her arms to distract it from the boy. to have spent the last five months getting to TROL LIFESAVING MEDAL When the dog ran away, Nichole know each and every one of you. Now that I AWARD WINNERS do, the honor you have bestowed on me by scooped up the badly bleeding boy and allowing me to represent you means so much Mr. DASCHLE. Mr. President, I am took him inside the school for help. more and it is an experience I will cherish proud to announce to the Senate today The fourth recipient of the AAA Life- forever. the names of the 7 young men and saving Medal comes from Brooklyn, Now, class, we are about to take a dra- women who have been selected to re- New York. matic step forward. The challenges which lie ceive the 1999 American Automobile On January 28, 1999, 10-year-old Pub- ahead of us are immense, many of the prob- Association Lifesaving Medal. This lic School 91 Safety Patrol Stacia lems we will confront as police officers are award is the highest honor given to Walker saw a car drop off a 5-year-old highly complex. The skills and abilities we bring to our positions in law enforcement members of the school safety patrol. boy at school, then depart. must be continually honed to transcend There are roughly 500,000 members of Instead of entering the schoolyard, these obstacles. the school safety patrol in this coun- the little boy turned around and head- I am sure everyone here is aware of the try, helping over 50,000 schools. Every ed for a park across the street, Stacia events that have taken place recently in the day, these young people ensure that ran to the little boy and stopped him United States. The crisis of crime and vio- their peers arrive safely at school in just before he crossed the street in lence in our society is really a crisis of val- the morning, and back home in the front of a car. ues and conscience. It is a problem com- afternoon. This year’s fifth AAA Lifesaving pounded by the glamorization of violence, drugs, sex and greed in Hollywood films and Most of the time, they accomplish Medal honoree comes from Mt. Pleas- music lyrics. Our young people are being told their jobs uneventfully. But, on occa- ant, Michigan. that it is okay to carry a 9MM and live the sion, these volunteers must make split- On September 2, 1998, 12-year-old lifestyle of a drug dealer, it is all right to second decisions, placing themselves in Ganiard Elementary School Safety Pa- ‘‘sex you up.’’ They are told they have the harm’s way to save the lives of others. trol Michael T. Wiltsie was helping the right to the latest music CD or the coolest The heroic actions of this year’s hon- adult crossing guard at the corner of clothes. They have the right to have these orees exemplify this selflessness, and Broadway and Adams streets, the busi- things even if they have to take from some- richly deserve recognition. est corner for patrols. one else. They can have what they want at any price regardless of the consequences. The first AAA Lifesaving Medal re- The adult crossing guard had just However, there are consequences to a society cipient comes from Rochester, New walked to the center of the street to that sensationalizes sin while it trivializes York. stop traffic when a 7-year-old boy morality and religious beliefs. The con- On September 22, 1998, 11-year-old walked around Michael’s outstretched sequence is the carnage we see on the streets Theodore Roosevelt Elementary School arms to follow her. A truck made a of America almost every day. Too many of Safety Patrol Katherine Garcia was at left-hand turn and passed between the our children have learned to solve problems her post in the back parking lot. She adult crossing guard and Michael’s post of conflict and anger with weapons for the was helping create order out of the on the curb, ignoring the stop sign held simple reason that they haven’t experienced love, compassion and understanding from chaos that occurs when buses, walkers by the adult crossing guard. Michael those who should be the role models in their and parents all try to leave the school reached out, grabbed the 7-year-old boy lives. It’s insane and it’s hurting our Nation at the same time. by the backpack, and pulled him to in the worst possible way, because our young Behind her post, a 9-year-old boy and safety just as the truck sped by. people are our greatest national resource and his 7-year-old friend separated from his The fifth recipient of the AAA Life- asset. More importantly, they are our future. grandmother to look for their car. saving Medal comes from Fairfax, Vir- We as parents, police officers, teachers and They tried to run past Katherine. As ginia. public officials must take an active role in they did, she quickly reached out, On February 22, 1999, Fairhill Ele- the rearing of America’s youth. This world we live upon is a tremendously grabbed the boys by their t-shirts, and mentary School Safety Patrol Roxanne huge place but, technology is, and will con- pulled them out of the path of an on- A. Bauland (BALL-lund) was standing tinue to make, the global experience more coming car. at her post near a bus stop when she accessible to everyone. Young people must This year’s second AAA Lifesaving noticed there was something wrong understand the global context of our exist- Medal honoree comes from Brooklyn, with a 6-year-old girl approaching the ence. The horizons and life opportunities New York. bus stop from across the street. that exist for them throughout this world. On January 5, 1999, an 8-year-old stu- When the little girl began running And, yes, there will continue to be racism dent asked Public School 151 Safety toward the bus stop, the hard candy and bias fueled by ignorance and fear. Those who are different will continue to be judged Patrol Anthony Christian, Jr. if he she had been eating became lodged in by the standard of what is considered by the would walk him across the street. her throat, causing her to cough and judge to be normal. However, it should never Leaving his post in the hands of his choke. Quickly sizing up the situation, be intellectualized as the sole excuse for fail- patrol partner, Anthony carefully 11-year-old Roxanne performed the S4660 CONGRESSIONAL RECORD — SENATE May 4, 1999 Heimlich maneuver on the little girl CLARIFYING TAX TREATMENT OF Trusts so that beneficiaries are treated and dislodged the candy from her SETTLEMENT TRUSTS ESTAB- in a fair and just manner. throat, quite possible saving the little LISHED UNDER ANCSA f girl’s life. Mr. STEVENS. Mr. President, today The final AAA School Safety Patrol I join Senator MURKOWSKI in rising in THE VERY BAD DEBT BOXSCORE Lifesaving Award recipient comes from support of S. 933, which would clarify Minneapolis, Minnesota. tax treatment of Settlement Trusts es- Mr. HELMS. Mr. President, at the On November 2, 1998, 11-year-old tablished under the Alaska Native close of business yesterday, Monday, Jenny Lind Community School Safety Claims Settlement Act. Our legislation May 3, 1999, the federal debt stood at Patrol Tonya L. M. Boner was com- would amend the U.S. tax code by al- $5,562,741,424,540.43 (Five trillion, five pleting her shift for the day when she lowing these Settlement Trusts to or- hundred sixty-two billion, seven hun- decided to wait a little longer to help ganize as 501(c)(28) tax exempt organi- dred forty-one million, four hundred some stragglers cross the street safely. zations. This bill is similar to S. 2065 twenty-four thousand, five hundred Three students, ages 7, 9, and 10, which I co-sponsored with Senator forty dollars and forty-three cents). began to cross the road. Across the MURKOWSKI last year. Five years ago, May 3, 1994, the fed- intersection, a car stopped briefly at Consistent with last year’s proposal, eral debt stood at $4,569,524,000,000 the stop sign, then headed straight for this bill allows for conveyances to a (Four trillion, five hundred sixty-nine the crosswalk and the students. Seeing Settlement Trust without including billion, five hundred twenty-four mil- the immediate danger, Tonya hurried those contributions in the bene- lion). the students to the other side just as ficiaries’ gross income. This is an im- Ten years ago, May 3, 1989, the fed- the car sped through the crosswalk a portant provision because under the eral debt stood at $2,769,324,000,000 (Two mere 2 feet from where she and the stu- current tax code, beneficiaries of a Set- trillion, seven hundred sixty-nine bil- dents had been walking seconds before. tlement Trust can be taxed on con- lion, three hundred twenty-four million). Mr. President, on behalf of the Sen- tributions to the trust, even though Fifteen years ago, May 3, 1984, the ate, I extend congratulations and they haven’t received a payment or dis- federal debt stood at $1,489,259,000,000 thanks to these young women and men bursement from the Settlement Trust. (One trillion, four hundred eighty-nine who are visiting the Capitol today. Our new provision also outlines the billion, two hundred fifty-nine mil- They are an asset to their commu- process and terms for revoking a lion). nities, and their families and neighbors trust’s tax exempt status as a 501(c)(28) Twenty-five years ago, May 3, 1974, should be very proud of their courage organization. Under this provision, if a the federal debt stood at $467,768,000,000 and dedication. Settlement Trust engages in forbidden activities as outlined in the Alaska Na- (Four hundred sixty-seven billion, I would also like to recognize the tive Claims Settlement Act, its elec- seven hundred sixty-eight million) American Automobile Association for tion as a 501(c)(28) tax exempt organi- which reflects a debt increase of more providing the supplies and training zation would be revoked and the trust than $5 trillion—$5,094,973,424,540.43 necessary to keep the safety patrol on would pay a tax on the fair market (Five trillion, ninety-four billion, nine duty nationwide. value of the assets held. This ensures hundred seventy-three million, four Since the 1920’s, AAA clubs across that U.S. taxpayers will not underwrite hundred twenty-four thousand, five the country have been sponsoring stu- forbidden transactions within the hundred forty dollars and forty-three dent safety patrols to guide and pro- trusts or between the trusts and the cents) during the past 25 years. tect younger classmates against traffic beneficiaries. f accidents. Easily recognizable by their This provision also requires a Settle- fluorescent orange safety belt and ment Trust to distribute at least 55 REVISED BUDGET LEVELS FOR shoulder strap, safety patrol members percent of its adjusted taxable income FISCAL YEAR 1999 represent the very best of their schools for each year. This would insure that and communities. Experts credit school Settlement Trusts fulfill a basic obli- Mr. DOMENICI. Mr. President, pursu- safety patrol programs with helping to gation to the beneficiaries. ant to Sec. 209 of H. Con. Res. 68, the lower the number of traffic accidents In addition, the new provision re- Concurrent Resolution on the Budget and fatalities involving young children. quires trusts electing to be recognized for Fiscal Year 2000, I hereby submit to We owe AAA our gratitude for their as 501(c)(28) tax exempt organizations the Senate revised budget levels for fis- tireless efforts to ensure that our Na- to withhold income tax from payments cal year 1999. tion’s children arrive to and from made to beneficiaries. There is, how- The following table displays the ap- school safe and sound. ever, an important exception to this propriations caps and the committee And we owe our thanks to these ex- withholding provision. That exception allocation levels that will be enforced ceptional young men and women for would apply to third party payments for the remainder of fiscal year 1999. their selfless actions. The discipline made on the behalf of beneficiaries for I ask unanimous consent to have the and courage they displayed deserves educational, funeral, or medical bene- table printed in the RECORD. the praise and recognition of their fits. There being no objection, the table schools, their communities and the Na- It is my hope that we will clarify the was ordered to be printed in the tion. tax treatment of these Settlement RECORD, as follows: SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET ACT, BUDGET YEAR TOTAL 1999 [In millions of dollars]

Direct spending jurisdiction Entitlements funded in annual appropriations acts Committee Budget authority Outlays Budget authority Outlays

Appropriations: Defense ...... 279,891 271,403 0 0 General Purpose Discretionary ...... 287,157 273,901 0 0 Violent Crime Reduction Trust Fund ...... 5,800 4,953 0 0 Highways ...... 0 21,885 ...... Mass Transit ...... 0 4,401 ...... Mandatory ...... 299,159 291,731 0 0 Total ...... 872,007 868,274 0 0

Agriculture, Nutrition, and Forestry ...... 8,931 6,362 17,273 9,183 Armed Services ...... 48,285 48,158 0 0 Banking, Housing, and Urban Affairs ...... 9,200 3,182 0 0 Commerce, Science, and Transportation ...... 8,119 5,753 682 678 May 4, 1999 CONGRESSIONAL RECORD — SENATE S4661 SENATE COMMITTEE BUDGET AUTHORITY AND OUTLAY ALLOCATIONS PURSUANT TO SECTION 302 OF THE CONGRESSIONAL BUDGET ACT, BUDGET YEAR TOTAL 1999—Continued [In millions of dollars]

Direct spending jurisdiction Entitlements funded in annual appropriations acts Committee Budget authority Outlays Budget authority Outlays

Energy and Natural Resources ...... 2,185 2,163 40 39 Environmental and Public Works ...... 28,591 1,365 0 0 Finance ...... 694,516 688,064 146,033 146,926 Foreign Relations ...... 10,908 12,141 0 0 Governmental Affairs ...... 58,113 57,036 0 0 Judiciary ...... 4,954 4,528 231 232 Labor and Human Resources ...... 8,000 7,525 1,328 1,328 Rules and Administration ...... 93 56 0 0 Veterans’ Affairs ...... 1,204 1,428 22,629 22,536 Indian Affairs ...... 492 485 0 0 Small Business ...... 0 (220) 0 0 Unassigned to Committee ...... (303,086) (294,966) 0 0 Total ...... 1,452,512 1,411,334 188,216 180,922

RECOGNITION OF KAREN ‘‘Dear teacher, big case, won lots of Valley, Washington. Earlier this year MIKOLASY—WASHINGTON STATE bucks! Won case because of writing. 29 exceptional students from Tahoma TEACHER OF THE YEAR You taught writing: you get pen. I did High School in Washington state won Mr. GORTON. Mr. President, ‘‘Teach- writing: I get money. Spend money. Washington state’s competition testing er’’—Webster’s defines a teacher as one Money gone? Do more writing, get their knowledge of the Constitution. who ‘‘imparts knowledge of or skill in’’ more money. Writing not work, maybe As a result of that victory, this past a particular subject matter. Teaching, I come get another writing lesson.’’ It weekend they were in Washington, D.C. of course, extends far beyond that clin- is said that while most Americans to participate in the national finals of ical definition. Many teachers bring spend their living building careers, the ‘‘We the People . . . The Citizen and the Constitution’’ program. passion and dedication to their work teachers spend their careers building The ‘‘We the People . . . The Citizen that often reaches outside the class- lives. That certainly seems to be the case with Karen Mikolasy. and the Constitution’’ program, admin- room as teachers serve as mentors, istered by the Center for Civic Edu- coaches, advisors and friends to their So today I recognize Karen Mikolasy with the Innovation in Education cation, provides our elementary and students. Each of us can remember a secondary students a strong foundation teacher who inspired us, motivated us, Award. This is an award I give out each week to recognize people who make a in the history and philosophical even changed our lives. underpinnings of the Constitution. The students at Shorecrest High difference in our local communities. It That foundation ultimately promotes a School in Washington state have just is based on the common-sense idea, sense of civic responsibility in these such a teacher. Karen Mikolasy has that it is parents and educators who look our children in the eyes every day students and provides them with the taught for 28 years with passion for her means to act effectively within a students and for her work. She empha- who know best how to educate them. Karen Mikolasy is most deserving of democratic society. sizes consistency and standards. In The final activity in this program, this award. Mrs. Mikolasy’s class homework is which took place April 30–May 3, is a Last night another experience made handed in on time and papers are re- simulated congressional hearing in clear to me the impact teachers can written until they earn at least a B. which students ‘‘testify’’ before a panel That consistency in expectations also have on their students. I attended an of judges. Students demonstrate their carries over to consistent positive rein- awards dinner for the ‘‘We the People knowledge and understanding of con- forcement to her studnets—she tells . . . the Citizen and the Constitution’’ stitutional principles and have oppor- them daily that it is a privilege to be program. The program encourages jun- tunities to evaluate, take, and defend their teacher. She says that in 28 years, ior high and high school students to positions on relevant historical and not one day has gone by which she study the constitution by developing contemporary issues. I am happy to an- hasn’t wanted to be in the classroom competitive teams at each school. nounce that I attended last night’s with her students. Each team has a teacher as a coach. award ceremony which the Tahoma I was honored to meet Mrs. Mikolasy Last night each teacher was recog- High team won a regional award. a few weeks ago in my office while she nized. There were no fewer than 1200 I am proud of the achievement of was in DC to be recognized as the students giving their teachers standing these students and am happy to recog- Washington State Teacher of the Year. ovations and cheering in appreciation nize them. They are Adam Baldridge, In the few minutes I met with her, I of their efforts. Mary Basinger, Josh Bodily, Sydney understood why she won this honor. I also like to recognize all of the Brumbach, Katie Carder, Erica Chavez, Her passion and commitment to edu- teachers in Washington state, who Elizabeth Dauenhauer, Steven cating and inspiring young people was demonstrate their passion for teaching Dekoker, Meaghan Denney, Nathan clear. The words of her students how- and for kids every day in the class- Dill, Marisa Dorazio, Jesse Duncan, ever, are probably the best tribute. room. Today and the balance of this Jayson Hart, Jon Hallstrom, Carolyn One student characterized Mrs. week is set aside to honor and cele- Hott, Daniel Linder, Casey Lineberger, Mikolasy this way: ‘‘. . . she teased, brate teachers. I know that all of my Clark Lundberg, Karrie Pilgrim, Mi- she nagged, fumed, roared, tested and colleagues will join me in recognizing chael Pirog, David Rosales, Jason laughed. She turned us into real read- our wonderful teachers across the na- Shinn, Jeremy Sloan, Justin Sly, ers. She led us through worlds both fa- tion. Donny Trieu, Orianna Tucker, Jessica miliar and foreign. There are still ru- f Walker, Raymond Williams, and Eliza- mors that hint at her unwavering beth Zaleski. I also recognize Kathy RECOGNITION OF THE WASH- stance in class, but one legend should Hand, the Washington state coordi- INGTON STATE CHAMPIONS OF not be overlooked for forgotten. Mrs. nator for the ‘‘We the People . . .’’ pro- THE ‘‘WE THE PEOPLE . . . THE Mikolasy is and always will be a mas- gram, and Kristy Ulrich, the district CITIZEN’S AND THE CONSTITU- terful teacher.’’ coordinator. Mrs. Mikolasy also tells a story TION’’ COMPETITION Finally, I applaud Mark Oglesby and about a package she received one day Mr. GORTON. Mr. President, this his assistant Stephanie Galloway, the from a former student who is now a week’s Innovation in Education Award teachers who have led their Tahoma lawyer. The package, in which was a recipient is an award winning class High School class to this national com- Mont Blanc pen, also included a note: from Tahoma High School in Maple petition, and have taught the past four S4662 CONGRESSIONAL RECORD — SENATE May 4, 1999 state championship classes from Wash- pursuant to law, the report of a rule entitled Officer, Office of Student Financial Assist- ington state. That track record shows ‘‘Fair Housing Complaint Processing; Plain ance Programs, Department of Education, great leadership and dedication to the Language Revision and Reorganization; In- transmitting jointly, pursuant to law, a re- terim Rule (FR–4431–I–01)’’ (RIN2529–AA86), port relative to student financial aid pro- education of their students. received April 27, 1999; to the Committee on grams; to the Committee on Health, Edu- I enjoyed meeting with the students Banking, Housing, and Urban Affairs. cation, Labor, and Pensions. this weekend and wish them the best EC–2827. A communication from the Assist- EC–2838. A communication from the Sec- for their future. They will certainly be ant General Counsel for Regulations, Office retary of Labor, transmitting a report of well prepared for it. of the Assistant Secretary for Public and In- proposed legislation entitled ‘‘Hazard Re- dian Housing, Department of Housing and porting Protection Act of 1999’’; to the Com- f Urban Development, transmitting, pursuant mittee on Health, Education, Labor, and MESSAGES FROM THE HOUSE to law, the report of a rule entitled ‘‘Public Pensions. Housing Agency Plans and Section 8 Certifi- EC–2839. A communication from the Sec- At 12:59 p.m., a message from the cate and Voucher Merger Rules; Announce- retary of Health and Human Services, trans- House of Representatives, delivered by ment of Public Forums; Solicitation of Addi- mitting, pursuant to law, a report entitled Mr. Hanrahan, one of its reading tional Public Comment on Relationship of ‘‘Premarket Notification Program for Food clerks, announced that the House has PHA Plans to Consolidate Plan (FR–4420–N– Contact Substances-Cost Estimate’’; to the Committee on Health, Education, Labor, and passed the following bill, in which it 02)’’ (RIN2577–AB89), received April 27, 1999; to the Committee on Banking, Housing, and Pensions. requests the concurrence of the Senate: Urban Affairs. EC–2840. A communication from the Direc- H.R. 1480. An act to provide for the con- EC–2828. A communication from the Assist- tor, Regulations Policy and Management servation and development of water and re- ant General Counsel for Regulations, Office Staff, Food and Drug Administration, De- lated resources, to authorize the United of the Assistant Secretary for Public and In- partment of Health and Human Services, States Army Corps of Engineers to construct dian Housing, Department of Housing and transmitting, pursuant to law, the report of various projects for improvements to rivers Urban Affairs, transmitting, pursuant to a rule entitled ‘‘Carbohydrase and Protease and harbors of the United States, and for law, the report of a rule entitled ‘‘Public Enzyme Preparations Derived from Bacillus other purposes. Housing Agency Plans and Section 8 Certifi- Subtilis or Bacillus Amyloliquefaciens; Af- firmation of GRAS Status as Direct Food In- The message also announced that the cate and Voucher Merger Rules; Announce- ment of Public Forums; Solicitation of Addi- gredients’’, received April 26, 1999; to the House has agreed to the following con- tional Public Comment on Relationship of Committee on Health, Education, Labor, and current resolution, in which it requests PHA Plans to Consolidated Plan (FR–4420–N– Pensions. the concurrence of the Senate: 02)’’ (RIN2577–AB89), received on April 27, EC–2841. A communication from the Direc- H. Con. Res. 93. Concurrent resolution ex- 1999; to the Committee on Banking, Housing, tor, Regulations Policy and Management pressing the sense of the Congress regarding and Urban Affairs. Staff, Food and Drug Administration, De- the social problem of child abuse and neglect EC–2829. A communication from the Sec- partment of Health and Human Services, and supporting efforts to enhance public retary of Health and Human Services, trans- transmitting, pursuant to law, the report of awareness of this problem. mitting, pursuant to law, a report entitled a rule entitled ‘‘Investigational New Drug ‘‘Native Hawaiian Revolving Loan Fund’’ for Applications; Clinical Holds; Confirmation of f fiscal years 1995 through 1997; to the Com- Effective Date’’ (RIN0910–AA84), received mittee on Indian Affairs. April 26, 1999; to the Committee on Health, MEASURE REFERRED EC–2830. A communication from the Ad- Education, Labor, and Pensions. The following concurrent resolution ministrator, Office of Juvenile Justice and EC–2842. A communication from the Direc- was read and referred as indicated: Delinquency Prevention, Department of Jus- tor, Division of Policy, Planning and Pro- tice, transmitting, pursuant to law, the re- gram Development, Office of Federal Con- H. Con. Res. 93. Concurrent resolution export of a rule entitled ‘‘Juvenile Account- tract Compliance Programs, Department of pressing the sense of the Congress regarding ability Incentive Block Grants’’ (RIN1121– Labor, transmitting, pursuant to law, the re- the social problem of child abuse and neglect AA46), received on April 30, 1999; to the Com- port of a rule entitled ‘‘Affirmative Action and supporting efforts to enhance public mittee on the Judiciary. and Nondiscrimination Obligations of Con- awareness of this problem; to the Committee EC–2831. A communication from the Execu- tractors and Subcontractors Regarding Spe- on the Judiciary. tive Director, American Academy of Arts cial Disabled Veterans and Vietnam Era Vet- f and Letters, transmitting, pursuant to law, a erans; OMB Control Numbers for OFCCP In- report of activities during calendar year 1999; formation Collection Requirements’’ (FR EXECUTIVE AND OTHER to the Committee on the Judiciary. Docket No. 99–7835), received April 13, 1999; COMMUNICATIONS EC–2832. A communication from the Direc- to the Committee on Health, Education, tor, Administrative Office of the United Labor, and Pensions. The following communications were States Courts, transmitting, pursuant to EC–2843. A communication from the Assist- laid before the Senate, together with law, the annual report for calendar year 1998; ant General Counsel for Regulation, Special accompanying papers, reports, and doc- to the Committee on the Judiciary. Education & Rehabilitative Services, De- uments, which were referred as indi- EC–2833. A communication from the Gen- partment of Education, transmitting, pursu- cated: eral Counsel, Department of Justice, trans- ant to law, the report of a rule entitled ‘‘Na- mitting, a draft of proposed legislation to tional Institute on Disability & Rehabilita- EC–2823. A communication from the Ad- authorize consent to and authorize appro- tive Research’’ (84.133), received April 29, ministrator, General Services Administra- priations for the United States subscription 1999; to the Committee on Health, Education, tion, transmitting, pursuant to law, a report to additional shares of the capital of the Labor, and Pensions. entitled ‘‘Fiscal Year 2000 Capital Invest- Multilateral Investment Guarantee Agency; EC–2844. A communication from the Assist- ment and Leasing Program’’; to the Com- to the Committee on Foreign Relations. ant Secretary of the Army (Civil Works), mittee on Environment and Public Works. EC–2834. A communication from the Assist- transmitting, pursuant to law, the report of EC–2824. A communication from the Vice ant Legal Adviser for Treaty Affairs, Depart- the Chief of Engineers dated February 3, President, Communications, Tennessee Val- ment of State, transmitting the report of the 1999; to the Committee on Environment and ley Authority, transmitting, pursuant to texts of international agreements, other Public Works. law, a report entitled ‘‘The Statistical Sum- than treaties, and background statements; EC–2845. A communication from the Assist- mary for Fiscal Year 1998’’; to the Com- to the Committee on Foreign Relations. ant Secretary for Fish and Wildlife and mittee on Environment and Public Works. EC–2835. A communication from the Assist- Parks, National Park Service, Department of EC–2825. A communication from the Assist- ant Secretary, Legislative Affairs, Depart- the Interior, transmitting, pursuant to law, ant General Counsel for Regulations, Office ment of State, transmitting, pursuant to the report of a rule entitled ‘‘Kaloko- of the Assistant Secretary for Housing—Fed- law, the report of an export license relative Honokohau National Historical Park, Ha- eral Housing Commissioner, Department of to Turkey; to the Committee on Foreign Re- waii; Public Nudity’’ (RIN1024–AC66); to the Housing and Urban Development, transmit- lations. Committee on Energy and Natural Re- ting, pursuant to law, the report of a rule en- EC–2836. A communication from the Assist- sources. titled ‘‘Builder Warranty for High-Ratio ant Secretary, Legislative Affairs, Depart- EC–2846. A communication from the Sec- FHA-Insured Single Family Mortgages for ment of State, transmitting, pursuant to retary of the Interior, transmitting, pursu- New Homes (FR–4288–C–02)’’ (RIN2502–AH08), law, the report of a rule entitled ‘‘Visas: ant to law, a report entitled ‘‘Annual Per- received April 9, 1999; to the Committee on Documentation of Nomimmigrants Under formance Plan, Fiscal Year 2000’’; to the Banking, Housing, and Urban Affairs. the Immigration and Nationality Act— Committee on Energy and Natural Re- EC–2826. A communication from the Assist- Amendment of Transit Without Visa (TWOV) sources. ant General Counsel for Regulations, Office List’’ (RIN1400–AA48), received April 27, 1999; EC–2847. A communication from the Ad- of the Assistant Secretary for Fair Housing to the Committee on Foreign Relations. ministrator, Energy Information Adminis- and Equal Opportunity, Department of Hous- EC–2837. A communication from the Sec- tration, Department of Energy, transmit- ing and Urban Development, transmitting, retary of Education and the Chief Operating ting, pursuant to law, a report entitled May 4, 1999 CONGRESSIONAL RECORD — SENATE S4663 ‘‘International Energy Outlook 1999’’; to the ties and directs state government to support nually to fund the implementation of aquat- Committee on Energy and Natural Re- emergency response activities as needed ic nuisance species management plans; and sources. around the state and authorizes the Wash- Whereas, the Washington State Aquatic EC–2848. A communication from the Direc- ington Military Department and its Emer- Nuisance Species Management Plan alone tor, Office of Surface Mining, Department of gency Management Division to coordinate identified one million seven hundred thou- The Interior, transmitting, pursuant to law, state agencies in the affected areas; and sand dollars in additional funding needed to the report of a rule entitled ‘‘Virginia Regu- Whereas, county officials are continuing to address aquatic nuisance species problems; latory Program’’ SPATS No. VA–110–FOR, assess damages to determine sufficient dam- and received April 27, 1999; to the Committee on age for justification of federal assistance; Whereas, two hundred thousand dollars is Energy and Natural Resources. and inadequate to allow fifty states, as well as EC–2849. A communication from the Direc- Whereas, when damage from an event is so interstate organizations, to implement effec- tor, Office of Surface Mining, Department of great it is beyond the capability of local and tive programs identified in aquatic nuisance The Interior, transmitting, pursuant to law, state government to repair, the Governor species management plans; and the report of a rule entitled ‘‘Texas Regu- can ask the President to declare a disaster, Whereas, the appropriation of the full four latory Program’’ SPATS No. TX–045–FOR, thus making a variety of federal disaster as- million dollars authorized to fund aquatic received April 27, 1999; to the Committee on sistance programs available to help restore nuisance species management plans would Energy and Natural Resources. communities to their predisaster condition; encourage development of plans, and thereby f and serve to reduce the destructive impact of Whereas, the federal disaster assistance aquatic nuisance species and minimize the PETITIONS AND MEMORIALS programs available may include housing and risk of their spread to other states; relocation assistance, individual and family Now, therefore, your Memorialists respect- The following petitions and memo- grants, funding to restore public infrastruc- fully pray that the President and Congress rials were laid before the Senate and ture and roads, tax exemptions for the relo- should recognize the destructive potential of were referred or ordered to lie on the cation of evacuated citizens, funding for aquatic nuisance species and act to minimize table as indicated: geotechnical studies to prevent future dam- this destruction by supporting appropriation POM–81. A joint resolution adopted by the age, and hazard mitigation; of the four million dollars authorized to fund Legislature of the State of Washington; to Now, therefore, your Memorialists respect- state aquatic nuisance species management the Committee on Environment and Public fully pray that if the Governor requests fed- plans in fiscal year 2000 and future years. Works. eral assistance, the President and the Fed- Be it resolved, That copies of this Memorial eral Emergency Management Agency will re- be immediately transmitted to the Honor- SENATE JOINT MEMORIAL 8013 spond favorably to the request and authorize able William J. Clinton, President of the To the Honorable William J. Clinton, the needed maximum available disaster re- United States, the President of the United President of the United States, and to the covery support to address the needs of Wash- States Senate, the Speaker of the House of President of the Senate and the Speaker of ington’s citizens devastated by the record Representatives, and each member of Con- the House of Representatives, and to the rainfall. gress from the State of Washington. Senate and House of Representatives of the Be it resolved, That copies of this Memorial POM–83. A joint resolution adopted by the United States, in Congress assembled: be immediately transmitted to the Honor- Legislature of the State of Montana; to the We, your Memorialists, the Senate and able William J. Clinton, President of the Committee on Energy and Natural Re- House of Representatives of the State of United States, the President of the United sources. Washington, in legislative session assembled, States Senate, the Speaker of the House of JOINT RESOLUTION 17 respectfully represent and petition as fol- Representatives, and each member of Con- Whereas, the President of the United lows: gress from the State of Washington. States, by Executive Order, initiated the In- Whereas, parts of Western Washington re- POM–82. A joint resolution adopted by the terior Columbia Basin Ecosystem Manage- ceived the highest amount of rainfall in Legislature of the State of Washington; to ment Project (ICBEMP) to create a scientif- state history between the months of Novem- the Committee on Appropriations. ically sound, legally defensible, ecosystem ber and February, raining for ninety-one HOUSE JOINT MEMORIAL 4008 management plan; and consecutive days and producing over fifty- To the Honorable William J. Clinton, Whereas, the ICBEMP was to be a broad- five inches of rain in King County; and President of the United States, and to the scale, 12-month project that would give gen- Whereas, parts of the Olympic Peninsula, President of the Senate and the Speaker of eral direction to public land managers for i.e., Lilliwaup, received over one hundred the House of Representatives, and to the ecosystem management but has become a fourteen inches of rain in a four-month pe- Senate and House of Representatives of the top-down, highly prescriptive set of manage- riod; and United States, in Congress assembled: ment directives; and Whereas, sixty-one homes have been dam- We, your Memorialists, the Senate and Whereas, the management direction pro- aged and twenty-six homes are uninhabitable House of Representatives of the State of vided by the ICBEMP does not match the in the area known as Carlyon Beach in Thur- Washington, in legislative session assembled, purpose and need statements made in the en- ston County, with property losses estimated respectfully represent and petition as fol- vironmental impact statement (EIS), which at over ten million dollars; and lows: were to restore and maintain a healthy for- Whereas, ground water flooding and land- Whereas, the introduction of aquatic nui- est, to provide sustainable and predictable slides in Thurston County have directly im- sance species, such as the zebra mussel, Eu- levels of products and services, and to sup- pacted at least seven hundred and sixty-five ropean green crab, and the mitten crab have port economic and social needs of people, residents, many of whom are elderly or have the potential to cause significant environ- cultures, and communities; and special needs; and mental and economic damage to our state Whereas, the Columbia Basin ecosystem is Whereas, a landslide in the Aldercrest and nation; and a very diverse and complex environment, and neighborhood in Cowlitz County has dam- Whereas, aquatic nuisance species can basinwide standards could be a detriment to aged one hundred and thirty-seven homes to spread from any state within our nation some or all forest-dependent and range-de- date, and at least fifty additional homes are causing harm to all; and pendent economies; and threatened; and Whereas, the Nonindigenous Aquatic Nui- Whereas, experts maintain that the Whereas, ground water problems will cost sance Prevention and Control Act of 1990 au- ICBEMP violates the Multiple-Use Sus- over two million dollars to repair and cur- thorizes the Aquatic Nuisance Species Task tained-Yield Act of 1960, the National Forest rently no water or sewer systems are in oper- Force to approve aquatic nuisance species Management Act of 1976, the Forest and ation; and management plans that are submitted by Rangeland Renewable Resource Planning Whereas, shoreline bulkheads are failing, state governors, and authorizes the United Act of 1974, the Regulatory Flexibility Act, and public facilities expenses are estimated States Fish and Wildlife Service to fund up and the Small Business Regulatory Enforce- at one million dollars, excluding the cost of to seventy-five percent of the implementa- ment Fairness Act of 1996; and geotechnical assistance; and tion cost of approved plans; and Whereas, the ICBEMP was intended to be a Whereas, Washington State Department of Whereas, an important function of aquatic scientifically sound management plan but Transportation estimates of highway dam- nuisance species management plans is to en- has become politically based on selective ages reach eleven million two hundred two courage state and regional jurisdictions to science, which supports predetermined pres- thousand dollars, and ten million dollars of respond to aquatic nuisance species prob- ervation goals with a top-down, one-size-fits- those damages are in Mason County alone; lems; and all, highly prescriptive set of management and Whereas, Congress has authorized four mil- objectives and standards; and Whereas, local government estimates of lion dollars annually to fund the implemen- Whereas, the recent interim roadless pol- damages to county roads and city streets tation of state management plans to mini- icy proposed by federal agencies indicates a reach seven million three hundred ninety- mize the environmental and economic dam- strong desire to create de facto wilderness two thousand four hundred thirty-five dol- age caused by aquatic nuisance species to areas and circumvent the authority of Con- lars; and our state and nation; and gress (in direct violation of the previously Whereas, Governor Locke’s emergency Whereas, in recent years only two hundred listed laws) and indicates the political direc- proclamation now includes six western coun- thousand dollars has been appropriated an- tion incorporated into the ICBEMP, which S4664 CONGRESSIONAL RECORD — SENATE May 4, 1999 obfuscates the tireless, good faith efforts of close the economic, environmental, and so- S. 949. A bill to clarify and enhance the au- local representatives who participated in the cial conditions of Montana’s communities thorities of the Chief Information Officer of ICBEMP process; and and local government units and the future the Department of Agriculture; to the Com- Whereas, public lands administered by the effects on these entities of implementation mittee on Agriculture, Nutrition, and For- U.S. Forest Service and U.S. Bureau of Land of the proposed ecosystem management estry. Management (BLM) are to be managed for practices; and By Mrs. FEINSTEIN: multiple use for the benefit of the citizens of Whereas, the ICBEMP represents a top- S. 950. A bill to award grants for school the United States, and road closures pro- down management paradigm that reduces or construction; to the Committee on Health, posed within the ICBEMP EIS preferred al- eliminates effective local input to natural Education, Labor, and Pensions. ternative will severely limit the multiple use resource management and environmental de- By Mr. DOMENICI (for himself, Mr. of millions of acres of public land; and cisionmaking; and BINGAMAN, Mr. FRIST, Mr. Whereas, current road closures already Whereas, the ICBEMP has become a 6-year, LIEBERMAN, and Ms. SNOWE): dramatically limit physical and financial over $40 million project, with no end in sight: S. 951. A bill to amend the Internal Rev- abilities to control noxious weeds, and the Now, therefore, be it enue Code of 1986 to establish a permanent ICBEMP-proposed further closures pose a se- Resolved by the Senate and the House of Rep- tax incentive for research and development, rious threat of further and more serious resentatives of the State of Montana, That the and for other purposes; to the Committee on weed encroachment into Montana’s forests federal government be strongly urged to: Finance. and grasslands; and (1) terminate the ICBEMP and issue no By Mr. SPECTER: Whereas, the ICBEMP has become a polit- Record of Decision on the ICBEMP; S. 952. A bill to expand an antitrust exemp- ical document, rather than a resource man- (2) forward the accurate ecosystem man- tion applicable to professional sports leagues ageable planning document; and agement data developed through the and to require, as a condition of such an ex- Whereas, the ICBEMP contains too many ICBEMP to relevant BLM district managers economic assumptions and too few economic emption, participation by professional foot- and U.S. Forest Service forest supervisors; ball and major league baseball sports leagues projections based on accurate information; (3) ensure that all public comments on the and in the financing of certain stadium construc- ICBEMP be incorporated into the public tion activities, and for other purposes; to the Whereas, implementation of the ICBEMP record for the ICBEMP; will directly affect management of 16 BLM Committee on the Judiciary. (4) forward to district managers and super- By Mr. JOHNSON (for himself and Mr. districts and 30 national forests, all in the visors the public comments provided on the DASCHLE): western United States; and ICBEMP for the managers’ and supervisors’ Whereas, the ICBEMP coverage extends to S. 953. A bill to direct the Secretary of Ag- consideration related to updates to the land riculture to convey certain land in the State 104 counties and 144 million acres of land (72 and resource management plans required by million scores of which are private), and the of South Dakota to the Terry Peak Ski Area; federal law; and to the Committee on Energy and Natural Re- ICBEMP implementation will directly and (5) coordinate plan revisions between ad- sources. indirectly affect the livelihoods of millions joining management units to provide con- By Mr. SMITH of New Hampshire: of citizens in the planning area; and sistency and connectivity and to consider cu- Whereas, a major component of the basic S. 954. A bill to amend title 18, United mulative impacts in dealing with broad-scale economies of about two-thirds of the affected States Code, to protect citizens’ rights under issues that affect multiple jurisdictions. the Second Amendment to obtain firearms rural and natural resource-dependent coun- BE IT FURTHER RESOLVED, that federal for legal use, and for other purposes; to the ties would be directly and potentially se- natural resource planning and environ- Committee on the Judiciary. verely impacted by implementation of the mental management feature site-specific By Mr. WARNER (for himself, Mr. ICBEMP; and management decisions made by local deci- Whereas, the citizens of Montana, Mon- ROBB, and Mr. MCCONNELL): sionmakers, local citizenry, and parties di- tana’s local government units, and Mon- S. 955. A bill to allow the National Park rectly and personally affected by these deci- tana’s communities have a direct interest in Service to acquire certain land for addition sions for our public lands. public land management that produces pay- BE IT FURTHER RESOLVED, that the to the Wilderness Battlefield in Virginia, as ments in lieu of taxes and (most impor- federal government acknowledge that the al- previously authorized by law, by purchase or tantly) forest receipts that generate revenue ternatives presented in the ICBEMP EIS are exchange as well as by donation; to the Com- to the federal treasury and significantly con- inconsistent with but should be consistent mittee on Energy and Natural Resources. tribute to funding public schools and roads; with the balanced ‘‘Purpose of and Need for By Ms. SNOWE (for herself, Mr. HAR- and Action’’ statements in the same documents, KIN, and Mr. FRIST): Whereas, it is questionable whether Con- which are: S. 956. A bill to establish programs regard- gress will fund the ICBEMP implementation, (1) ‘‘restore and maintain long-term eco- ing early detection, diagnosis, and interven- and the impacts of inadequate implementa- system health and ecological integrity’’ (i.e., tions for newborns and infants with hearing tion funding would be significantly more dis- restore and maintain a healthy forest); and loss; to the Committee on Health, Education, astrous for natural resources than if imple- (2) ‘‘support economic and/or social needs Labor, and Pensions. mentation were fully funded; and of people, cultures, and communities, and By Mr. KOHL: Whereas, the citizens of the United States provide sustainable and predictable levels of S. 957. A bill to amend chapter 111 of title and communities throughout the western products and services from our public lands 28, United States Code, relating to protective United States depend on the stewardship, administered by the Forest Service or BLM orders, sealing of cases, disclosures of dis- sustained yield, and even-flow production of . . .’’; be it further covery information in civil actions, and for goods and services from multiple-use man- Resolved, That copies of this resolution be other purposes; to the Committee on the Ju- agement of public lands located in those sent by the Secretary of State to the Presi- diciary. states; and By Mr. BENNETT: Whereas, there is increasing national and dent of the United States, the Vice President of the United States, the Secretary of Agri- S. 958. A bill to amend certain banking and world demand for renewable, recyclable securities laws with respect to financial con- goods and services, including recreation, culture, the Secretary of the Interior, the presiding officers of the Appropriations Com- tracts; to the Committee on Banking, Hous- wildlife, fisheries, food, fiber, clean air, and ing, and Urban Affairs. clean water; and mittees of the U.S. Senate and U.S. House, Whereas, in Montana, the U.S. Forest the Montana Congressional Delegation, the f Service has reduced timber harvest by over Chief of the Forest Service, and the Director 50% since 1950, even though wood is the pre- of the Bureau of Land Management. SUBMISSION OF CONCURRENT AND ferred raw material for home building, and f SENATE RESOLUTIONS transferred global environmental con- The following concurrent resolutions sequences were never discussed or considered INTRODUCTION OF BILLS AND JOINT RESOLUTIONS and Senate resolutions were read, and when decisions were being made to reduce referred (or acted upon), as indicated: budgets; and The following bills and joint resolu- By Mr. DURBIN (for himself and Mr. Whereas, domestic raw materials produc- tions were introduced, read the first FITZGERALD): tion is being increasingly restricted in the and second time by unanimous con- United States, even in light of rising domes- S. Res. 93. A resolution to recognize Lin- tic consumption and the United States’ posi- sent, and referred as indicated: coln Park High School for its educational ex- tion as a massive net importer of raw mate- By Mr. ROBB: cellence, congratulating the faculty and rials; and S. 948. A bill to amend chapter 83 and 84 of staff of Lincoln Park High School for their Whereas, decisions are being made on a title 5, United States Code, to provide for the efforts, and encouraging the faculty, staff, daily basis and at all levels of government to equitable waiver of certain limitations on and students of Lincoln Park High School to restrict raw materials production, almost al- the election of survivor reductions of Fed- continue their good work into the next mil- ways on environmental grounds, yet con- eral annuities, and for other purposes; to the lennium; to the Committee on Health, Edu- sumption is virtually never discussed; and Committee on Governmental Affairs. cation, Labor, and Pensions. Whereas, the ICBEMP draft documents fail By Mr. LUGAR (for himself, Mr. FITZ- By Mr. BYRD (for himself and Mr. to adequately and truthfully define and dis- GERALD, and Mr. FEINGOLD): GRAMM): May 4, 1999 CONGRESSIONAL RECORD — SENATE S4665 S. Res. 94. A resolution commending the ef- cess of year 2000 compliance and has Mr. President, I ask that the full text forts of the Reverend Jesse Jackson to se- made it one of the highest priorities for and a summary of the bill be printed in cure the release of the soldiers held by the USDA. the RECORD. Federal Republic of Yugoslavia. There being no objection, the mate- By Mr. THURMOND: In fiscal year 1999, USDA plans to S. Res. 95. A resolution designating August spend more than $1.2 billion on infor- rials were ordered to be printed in the 16, 1999, as ‘‘National Airborne Day’’; to the mation technology and related infor- RECORD, as follows: Committee on the Judiciary. mation resources management activi- S. 949 f ties, including year 2000 computer com- Be it enacted by the Senate and House of pliance. The General Accounting Office Representatives of the United States of America STATEMENTS ON INTRODUCED in Congress assembled, has chronicled USDA’s long history of BILLS AND JOINT RESOLUTIONS SECTION 1. SHORT TITLE; TABLE OF CONTENTS. problems in managing its substantial (a) SHORT TITLE.—This Act may be cited as By Mr. LUGAR (for himself, Mr. information technology investments. the ‘‘USDA Information Technology Reform FITZGERALD, and Mr. FEIN- The GAO reports that such ineffective and Year-2000 Compliance Act of 1999’’. GOLD): planning and management have re- (b) TABLE OF CONTENTS.—The table of con- S. 949. A bill to clarify and enhance sulted in USDA’s wasting millions of tents of this Act is as follows: the authorities of the Chief Informa- dollars on computer systems. Sec. 1. Short title; table of contents. Sec. 2. Findings and purposes. tion Officer of the Department of Agri- Last year, I introduced S. 2116, a bill culture; to the Committee on Agri- Sec. 3. Definitions. to reform the information technology Sec. 4. Management of year-2000 compliance culture, Nutrition, and Forestry. systems of the Department of Agri- at Department. THE USDA INFORMATION TECHNOLOGY REFORM culture. It gave the Chief Information Sec. 5. Position of Chief Information Officer. AND YEAR-2000 COMPLIANCE ACT OF 1999 Sec. 6. Duties and authorities of Chief Infor- Officer control over the planning, de- Mr. LUGAR. Mr. President, today I mation Officer. velopment, and acquisition of informa- rise to introduce the USDA Informa- Sec. 7. Funding approval by Chief Informa- tion technology at the department. In- tion Technology Reform and Year-2000 tion Officer. troduction of that bill and similar leg- Sec. 8. Availability of agency information Compliance Act of 1999. This legisla- islation in 1997 prompted some coordi- technology funds. tion aims to centralize all year 2000 nation of information technology Sec. 9. Authority of Chief Information Offi- computer conversion and other infor- cer over information tech- among the department’s agencies and mation technology acquisition and nology personnel. offices. However, component agencies management activities within the Of- Sec. 10. Annual Comptroller General report are still allowed to independently ac- fice of the Chief Information Office of on compliance. quire and manage information tech- Sec. 11. Office of Inspector General. the Department of Agriculture. Cen- nology investments solely on the basis Sec. 12. Technical amendment. tralization is the most efficient way to of their own parochial interests or SEC. 2. FINDINGS AND PURPOSES. manage the complex and important (a) FINDINGS.—Congress finds that— needs. This legislation is needed to task of ensuring that all critical com- (1) United States agriculture, food safety, strengthen that coordination and en- puter functions at the department are the health of plants and animals, the econo- sure that centralized information tech- operational on January 1, 2000. It is mies of rural communities, international nology management continues in the commerce in food, and food aid rely on the also a wiser and more cost-effective future. Department of Agriculture for the effective way to construct an information tech- This legislation further requires that and timely administration of program ac- nology infrastructure to enable tivities essential to their success and vital- USDA’s hundreds of computer systems the Chief Information Officer manage ity; to interoperate, which unfortunately the design and implementation of an (2) the successful administration of the they cannot now do. information technology architecture program activities depends on the ability of The Department of Agriculture is based on strategic business plans that the Department to use information tech- charged with enormous responsibilities maximizes the effectiveness and effi- nology in as efficient and effective manner as is technologically feasible; and its year 2000 readiness is crucial. It ciency of USDA’s program activities. Included in the bill is authority for the (3) to successfully administer the program has a diverse portfolio of over 200 Fed- activities, the Department relies on informa- eral programs throughout the Nation Chief Information Officer to approve tion technology that requires comprehensive and the world. The department delivers expenditures for information resources and Department-wide overview and control about $80 billion in programs. It is the and for year 2000 compliance purposes, to avoid needless duplication and misuse of fourth largest Federal agency, with 31 except for minor acquisitions. To ac- resources; agencies and offices. The department is complish these purposes, the bill re- (4) to better ensure the continued success quires that each agency transfer up to and vitality of agricultural producers and responsible for the safety of our food rural communities, it is imperative that supply, nutrition programs that serve 10 percent of its information technology budget to the Chief Information measures are taken within the Department the poor, young and old, and the pro- to coordinate and centrally plan the use of tection of our natural resources. Since Officer’s control. the information technology of the Depart- more than 40 percent of the non-tax The bill makes the Chief Information ment; debt owed to the Federal Government Officer responsible for ensuring that (5) because production control and subsidy is owed to USDA, the department has a the information technology architec- programs are ending, agricultural producers of the United States need the best possible responsibility to ensure the financial ture facilitates a flexible common computing environment for the field serv- information to make decisions that will soundness of taxpayers’ investments. maximize profits, satisfy consumer demand, Responsibility for keeping the mis- ice centers based on integrated pro- and contribute to the alleviation of hunger sion-critical information technology gram delivery. The architecture will in the United States and abroad; functioning should clearly rest with also provide maximum data sharing (6) a single authority for Department-wide the Chief Information Officer. The de- with USDA customers and other Fed- planning is needed to ensure that the infor- centralized approach to the year 2000 eral and state agencies, which is ex- mation technology architecture of the De- issue at USDA led to a lack of focus on pected to result in a significant reduc- partment is based on the strategic business tion in operating costs. plans, information technology, management departmental priorities. Each agency goals, and core business process methodology was allowed to determine what serv- Mr. President, this is a bill whose of the Department; ices, programs, and activities it time has come. Unfortunately, USDA’s (7) information technology is a strategic deemed important enough to be oper- problems in managing information resource for the missions and program ac- ational at the end of the millennium. technology are not unusual among tivities of the Department; This decentralized approach also led to Government agencies, according to the (8) year-2000 compliance is 1 of the most a lack of guidance, oversight and the General Accounting Office. I commend important challenges facing the Federal development of contingency plans. Ef- the attention of my colleagues to this Government and the private sector; (9) because the responsibility for ensuring forts to rectify this situation are well bill designed to address a portion of the year-2000 compliance at the Department was underway. I am pleased that Secretary information resource management initially left to individual offices and agen- of Agriculture Glickman has pledged problems of the Federal Government cies, no overall priorities have been estab- his personal commitment to the suc- and ask for their support of it. lished, and there is no assurance that the S4666 CONGRESSIONAL RECORD — SENATE May 4, 1999 most important functions of the Department section 5125 of the Information Technology not been provided the funding and authority will be operable on January 1, 2000; Management Reform Act of 1996 (40 U.S.C. necessary to adequately manage the year- (10) it is the responsibility of the Chief In- 1425)) for the Department. 2000 compliance problem at the Department. formation Officer to provide leadership in— (2) DEPARTMENT.—The term ‘‘Department’’ (b) MANAGEMENT.—The Chief Information (A) defining and explaining the importance means the Department of Agriculture. Officer shall provide the leadership and inno- of achieving year-2000 compliance; (3) INFORMATION RESOURCE MANAGEMENT.— vative management within the Department (B) selecting the overall approach for The term ‘‘information resource manage- to— structuring the year-2000 compliance efforts ment’’ means the process of managing infor- (1) identify, prioritize, and mobilize the re- of the Department; mation resources to accomplish agency mis- sources needed to achieve year-2000 compli- (C) assessing the ability of the information sions and to improve agency performance. ance; resource management infrastructures of the (4) INFORMATION TECHNOLOGY.— (2) coordinate the renovation of computer Department to adequately support the year- (A) IN GENERAL.—The term ‘‘information systems through conversion, replacement, or 2000 compliance efforts; and technology’’ means any equipment or inter- retirement of the systems; (D) mobilizing the resources of the Depart- connected system or subsystem of equipment (3) develop verification and validation ment to achieve year-2000 compliance; that is used by an office or agency in the strategies (within the Department and by (11) the failure of the Department to meet automatic acquisition, storage, manipula- independent persons) for converted or re- the requirement of the Director of the Office tion, management, movement, control, displaced computer systems; of Management and Budget that all mission- play, switching, interchange, transmission, (4) develop contingency plans for mission- critical systems of the Department achieve or reception of data or information. critical systems in the event of a year-2000 year-2000 compliance would have serious ad- (B) USE OF EQUIPMENT.—For purposes of compliance system failure; verse consequences on the program activities subparagraph (A), equipment is used by an (5) coordinate outreach between computer of the Department, the economies of rural office or agency if the equipment is used by— systems of the Department and computer communities, the health of the people of the (i) the office or agency directly; or systems in— United States, world hunger, and inter- (ii) a contractor under a contract with the (A) the domestic private sector; national commerce in agricultural commod- office or agency— (B) State and local governments; ities and products; (I) that requires the use of the equipment; (C) foreign governments; and (12) centralizing the approval authority for or (D) the international private sector, such planning and investment for information (II) to a significant extent, that requires as foreign banks; technology in the Office of the Chief Infor- the use of the equipment in the performance (6) identify, prioritize, and mobilize the re- mation Officer will— of a service or the furnishing of a product. sources needed to correct periodic date prob- (A) provide the Department with strong (C) INCLUSIONS.—The term ‘‘information lems in computer systems within the Depart- and coordinated leadership and direction; technology’’ includes computers, ancillary ment and between the Department and out- (B) ensure that the business architecture equipment, software, firmware and similar side computer systems; and of an office or agency is based on rigorous procedures, services (including support serv- (7) during the period beginning on the date core business process methodology; ices), and related resources. of enactment of this Act and ending on June (D) EXCLUSIONS.—The term ‘‘information (C) ensure that the information technology 1, 2001, consult, on a quarterly basis, with technology’’ does not include any equipment architecture of the Department is based on the Committee on Agriculture of the House that is acquired by a Federal contractor that the strategic business plans of the offices or of Representatives and the Committee on is incidental to a Federal contract. agencies and the missions of the Depart- Agriculture, Nutrition, and Forestry of the (5) INFORMATION TECHNOLOGY ARCHITEC- ment; Senate on actions taken to carry out this TURE.—The term ‘‘information technology (D) ensure that funds will be invested in in- section. architecture’’ means an integrated frame- formation technology only after the Chief (c) FUNDING AND AUTHORITIES.—To carry work for developing or maintaining existing Information Officer has determined that— out subsection (b), the Chief Information Of- information technology, and acquiring new (i) the planning and review of future busi- ficer shall use— information technology, to achieve or effec- ness requirements of the office or agency are tively use the strategic business plans, infor- (1) the authorities in sections 7, 8, and 9, complete; and mation resources, management goals, and particularly the authority to approve the (ii) the information technology architec- core business processes of the Department. transfer or obligation of funds described in ture of the office or agency is based on busi- section 7(a) intended for information tech- (6) OFFICE OR AGENCY.—The term ‘‘office or ness requirements and is consistent with the agency’’ means, as applicable, each— nology and information resource manage- Department-wide information technology ar- (A) national, regional, county, or local of- ment; and chitecture; and fice or agency of the Department; (2) the transferred funds targeted by offices (E) cause the Department to act as a single (B) county committee established under and agencies for information technology and enterprise with respect to information tech- section 8(b)(5) of the Soil Conservation and information resource management under nology, thus eliminating the duplication and Domestic Allotment Act (16 U.S.C. section 8. inefficiency associated with a single office- 590h(b)(5)); SEC. 5. POSITION OF CHIEF INFORMATION OFFI- or agency-based approach; and (C) State committee, State office, or field CER. (13) consistent with the Information Tech- service center of the Department; and (a) ESTABLISHMENT.—To ensure the highest nology Management Reform Act of 1996 (40 (D) group of multiple offices and agencies quality and most efficient planning, acquisi- U.S.C. 1401 et seq.), each office or agency of of the Department that are, or will be, con- tion, administration, and management of in- the Department should achieve at least— nected through common program activities formation technology within the Depart- (A) a 5 percent per year decrease in costs or systems of information technology. ment, there is established the position of the incurred for operation and maintenance of (7) PROGRAM ACTIVITY.—The term ‘‘pro- Chief Information Officer of the Department. information technology; and gram activity’’ means a specific activity or (b) CONFIRMATION.— (B) a 5 percent per year increase in oper- project of a program that is carried out by 1 (1) IN GENERAL.—The position of the Chief ational efficiency through improvements in or more offices or agencies of the Depart- Information Officer shall be appointed by the information resource management. ment. President, by and with the advice and con- (b) PURPOSES.—The purposes of this Act (8) SECRETARY.—The term ‘‘Secretary’’ sent of the Senate. are— means the Secretary of Agriculture. (2) SUCCESSION.—An official who is serving (1) to facilitate the successful administra- (9) YEAR-2000 COMPLIANCE.—The term ‘‘year- as Chief Information Officer on the date of tion of programs and activities of the De- 2000 compliance’’, with respect to the De- enactment of this Act shall not be required partment through the creation of a central- partment, means a condition in which infor- to be reappointed by the President. ized office, and Chief Information Officer po- mation systems are able to accurately proc- (c) REPORT.—The Chief Information Officer sition, in the Department to provide strong ess data relating to the 20th and 21st shall report directly to the Secretary. and innovative managerial leadership to centuries— (d) POSITION ON EXECUTIVE INFORMATION oversee the planning, funding, acquisition, (A) within the Department; TECHNOLOGY INVESTMENT REVIEW BOARD.— and management of information technology (B) between the Department and local and The Chief Information Officer shall serve as and information resource management; and State governments; an officer of the Executive Information (2) to provide the Chief Information Officer (C) between the Department and the pri- Technology Investment Review Board (or its with the authority and funding necessary to vate sector; successor). correct the year-2000 compliance problem of (D) between the Department and foreign SEC. 6. DUTIES AND AUTHORITIES OF CHIEF IN- the Department. governments; and FORMATION OFFICER. SEC. 3. DEFINITIONS. (E) between the Department and the inter- (a) IN GENERAL.—Notwithstanding any In this Act: national private sector. other provision of law (except the Govern- (1) CHIEF INFORMATION OFFICER.—The term SEC. 4. MANAGEMENT OF YEAR-2000 COMPLI- ment Performance and Results Act of 1993 ‘‘Chief Information Officer’’ means the indi- ANCE AT DEPARTMENT. (Public Law 103–62), amendments made by vidual appointed by the Secretary to serve as (a) FINDING.—Congress finds that the Chief that Act, and the Information Technology Chief Information Officer (as established by Information Officer of the Department has Management Reform Act of 1996 (40 U.S.C. May 4, 1999 CONGRESSIONAL RECORD — SENATE S4667

1401 et seq.)) and policies and procedures of (c) EVALUATION OF PROPOSED INFORMATION payments after January 1, 1999, be tendered the Department, in addition to the general TECHNOLOGY INVESTMENTS.— through electronic fund transfer. authorities provided to the Chief Informa- (1) IN GENERAL.—In consultation with the (e) DEPARTMENTAL REGULATIONS.—The tion Officer by section 5125 of the Informa- Executive Information Technology Invest- Chief Information Officer shall issue such tion Technology Management Reform Act of ment Review Board (or its successor), the Departmental regulations as the Chief Infor- 1996 (40 U.S.C. 1425), the Chief Information Chief Information Officer shall adopt criteria mation Officer considers necessary to carry Officer shall have the authorities and duties to evaluate proposals for information tech- out this Act within all offices and agencies. within the Department provided in this Act. nology investments that are applicable to in- (f) REPORT.—Not later than March 1 of (b) INFORMATION TECHNOLOGY ARCHITEC- dividual offices or agencies or are applicable each year through March 1, 2003, the Chief TURE.— Department-wide. Information Officer shall submit a report to (1) IN GENERAL.—To ensure the efficient (2) CRITERIA.—The criteria adopted under the Committee on Agriculture of the House and effective implementation of program ac- paragraph (1) shall include consideration of— of Representatives and the Committee on tivities of the Department, the Chief Infor- (A) whether the function to be supported Agriculture, Nutrition, and Forestry of the mation Officer shall ensure that the informa- by the investment should be performed by Senate that includes— tion technology architecture of the Depart- the private sector, negating the need for the (1) an evaluation of the current and future ment, and each office or agency, is based on investment; information technology directions and needs the strategic business plans, information re- (B) the Department-wide or Government- of the Department; sources, goals of information resource man- wide impacts of the investment; (2) an accounting of— agement, and core business process method- (C) the costs and risks of the investment; (A) each transfer or obligation of funds de- ology of the Department. (D) the consistency of the investment with scribed in section 7(a), and each outlay of (2) DESIGN AND IMPLEMENTATION.—The the information technology architecture; funds, for information technology or infor- Chief Information Officer shall manage the (E) the interoperability of information mation resource management by each office design and implementation of an informa- technology or information resource manage- or agency for the past fiscal year; and tion technology architecture for the Depart- ment in offices or agencies; and (B) each transfer or obligation of funds de- ment in a manner that ensures that— (F) whether the investment maximizes the scribed in section 7(a) for information tech- (A) the information technology systems of efficiency and effectiveness of program ac- nology or information resource management each office or agency maximize— tivities of the Department. by each office or agency known or estimated (i) the effectiveness and efficiency of pro- (3) EVALUATION OF INFORMATION TECH- for the current and future fiscal years; gram activities of the Department; NOLOGY AND INFORMATION RESOURCE MANAGE- (3) a summary of an evaluation of informa- (ii) quality per dollar expended; and MENT.— tion technology and information resource (iii) the efficiency and coordination of in- (A) IN GENERAL.—In consultation with the management applicable Department-wide or formation resource management among of- Executive Information Technology Invest- to an office or agency; and fices or agencies, including the exchange of ment Review Board (or its successor), the (4) a copy of the annual report to the Sec- information between field service centers of Chief Information Officer shall monitor and retary by the Chief Information Officer that the Department and each office or agency; evaluate the information resource manage- is required by section 5125(c)(3) of the Infor- (B) the planning, transfer or obligation of ment practices of offices or agencies with re- mation Technology Management Reform Act funds described in section 7(a), and acquisi- spect to the performance and results of the of 1996 (40 U.S.C. 1425(c)(3)). tion of information technology, by each of- information technology investments made SEC. 7. FUNDING APPROVAL BY CHIEF INFORMA- fice or agency most efficiently satisfies the by the offices or agencies. TION OFFICER. needs of the office or agency in terms of the (B) GUIDELINES FOR EVALUATION.—The (a) IN GENERAL.—Notwithstanding any customers served, and program activities Chief Information Officer shall issue Depart- other provision of law, an office or agency, and employees affected, by the information mental regulations that provide guidelines without the prior approval of the Chief Infor- technology; and for— mation Officer, shall not— (C) the information technology of each of- (i) establishing whether the program activ- (1) transfer funds (including appropriated fice or agency is designed and managed to ity of an office or agency that is proposed to funds, mandatory funds, and funds of the coordinate or consolidate similar functions be supported by the information technology Commodity Credit Corporation or any other of the missions of the Department and of- investment should be performed by the pri- corporation within the Department) from 1 fices or agencies, on a Department-wide vate sector; account of a fund or office or agency to an- basis. (ii)(I) analyzing the program activities of other account of a fund or office or agency (3) COMPLIANCE WITH RESULTING ARCHITEC- the office or agency and the mission of the for the purpose of investing in information TURE.—The Chief Information Officer shall— office or agency; and technology or information resource manage- (A) if determined appropriate by the Chief (II) based on the analysis, revising the mis- ment involving planning, evaluation, or Information Officer, approve the transfer or sion-related and administrative processes of management, providing services, or leasing obligation of funds described in section 7(a) the office or agency, as appropriate, before or purchasing personal property (including in connection with information technology making significant investments in informa- all hardware and software) or services; architecture for an office or agency; and tion technology to be used in support of the (2) obligate funds (including appropriated (B) be responsible for the development, ac- program activities and mission of the office funds, mandatory funds, and funds of the quisition, and implementation of informa- or agency; Commodity Credit Corporation or any other tion technology by an office or agency in a (iii) establishing effective and efficient corporation within the Department) for the manner that— capital planning for selecting, managing, purpose of investing in information tech- (i) is consistent with the information tech- and evaluating the results of all major in- nology or information resource management nology architecture designed under para- vestments in information technology by the involving planning, evaluation, or manage- graph (2); Department; ment, providing services, or leasing or pur- (ii) results in the most efficient and effec- (iv) ensuring compliance with govern- chasing personal property (including all tive use of information technology of the of- mental and Department-wide policies, regu- hardware and software) or services; or fice or agency; and lations, standards, and guidelines that relate (3) obligate funds (including appropriated (iii) maximizes the efficient delivery and to information technology and information funds, mandatory funds, and funds of the effectiveness of program activities of the De- resource management; Commodity Credit Corporation) for the pur- partment. (v) identifying potential information re- pose of investing in information technology (4) FIELD SERVICE CENTERS.—The Chief In- source management problem areas that or information resource management involv- formation Officer shall ensure that the infor- could prevent or delay delivery of program ing planning, evaluation, or management, mation technology architecture of the De- activities of the office or agency; providing services, or leasing or purchasing partment facilitates the design, acquisition, (vi) validating that information resource personal property (including all hardware and deployment of an open, flexible common management of the office or agency and software) or services, obtained through a computing environment for the field service facilitates— contract, cooperative agreement, reciprocal centers of the Department that— (I) strategic goals of the office or agency; agreement, or any other type of agreement (A) is based on strategic goals, business re- (II) the mission of the office or agency; and with an agency of the Federal Government, a engineering, and integrated program deliv- (III) performance measures established by State, the District of Columbia, or any per- ery; the office or agency; and son in the private sector. (B) is flexible enough to accommodate and (vii) ensuring that the information secu- (b) DISCRETION OF CHIEF INFORMATION OFFI- facilitate future business and organizational rity policies, procedures, and practices for CER.—The Chief Information Officer may, by changes; the information technology are sufficient. Departmental regulation, waive the require- (C) provides maximum data sharing, inter- (d) ELECTRONIC FUND TRANSFERS.—The ment under subsection (a) applicable to, as operability, and communications capability Chief Information Officer shall ensure that the Chief Information Officer determines is with other Department, Federal, and State the information technology architecture of appropriate for the office or agency— agencies and customers; and the Department complies with the require- (1) the transfer or obligation of funds de- (D) results in significant reductions in an- ment of section 3332 of title 31, United States scribed in subsection (a) in an amount not to nual operating costs. Code, that certain current, and all future exceed $200,000; or S4668 CONGRESSIONAL RECORD — SENATE May 4, 1999 (2) a specific class or category of information technology or information resource ner that is consistent with the Departmental tion technology. management by an office or agency; regulations issued by the Chief Information (c) CONDITIONS FOR APPROVAL OF FUND- (3) to meet the requirement of the Director Officer. ING.—Under subsection (a), the Chief Infor- of the Office and Management and Budget SEC. 10. ANNUAL COMPTROLLER GENERAL RE- mation Officer shall not approve the transfer that all mission-critical systems achieve PORT ON COMPLIANCE. or obligation of funds described in subsection year-2000 compliance; or (a) REPORT.—Not later than May 15 of each (a) with respect to an office or agency unless (4) to pay the salaries and expenses of all year through May 15, 2003, in coordination the Chief Information Officer determines personnel and functions of the office of the with the Inspector General of the Depart- that— Chief Information Officer. ment, the Comptroller General of the United (1) the proposed transfer or obligation of (c) AVAILABILITY OF FUNDS.—The Chief In- States shall submit to the Committee on Ag- funds described in subsection (a) is con- formation Officer shall transfer unexpended riculture of the House of Representatives sistent with the information technology ar- funds at the end of a fiscal year to the office and the Committee on Agriculture, Nutri- chitecture of the Department; or agency that made the funds available tion, and Forestry of the Senate a report (2) the proposed transfer or obligation of under subsection (a), to remain available evaluating the compliance with this Act in funds described in subsection (a) for informa- until expended. the past fiscal year by the Chief Information tion technology or information resource (d) NO REDUCTION OF EMPLOYEES OF OF- Officer and each office or agency. management is consistent with and maxi- FICES OR AGENCIES.—A transfer of funds (b) CONTENTS OF REPORT.—Each report mizes the achievement of the strategic busi- under subsection (a) shall not result in a re- shall include— ness plans of the office or agency; duction in the number of employees in an of- (1) an audit of the transfer or obligation of (3) the proposed transfer or obligation of fice or agency. funds described in section 7(a) and outlays by funds described in subsection (a) is con- (e) TERMINATION OF AUTHORITY.—The au- an office or agency for the fiscal year; sistent with the strategic business plan of thority under this section terminates on (2) an audit and evaluation of the compli- the office or agency; and September 30, 2004. ance of the Chief Information Officer with (4) to the maximum extent practicable, SEC. 9. AUTHORITY OF CHIEF INFORMATION OF- the requirements of section 8(c); economies of scale are realized through the FICER OVER INFORMATION TECH- (3) a review and evaluation of the perform- proposed transfer or obligation of funds de- NOLOGY PERSONNEL. ance of the Chief Information Officer under scribed in subsection (a). (a) AGENCY CHIEF INFORMATION OFFICERS.— this Act; and (d) CONSULTATION WITH EXECUTIVE INFOR- (1) ESTABLISHMENT.—Subject to the con- (4) a review and evaluation of the success MATION TECHNOLOGY INVESTMENT REVIEW currence of the Chief Information Officer, of the Department in— BOARD.—To the maximum extent prac- the head of each office or agency shall estab- (A) creating a Department-wide informa- ticable, as determined by the Chief Informa- lish within the office or agency the position tion technology architecture; and tion Officer, prior to approving a transfer or of Agency Chief Information Officer and (B) complying with the requirement of the obligation of funds described in subsection shall appoint an individual to that position. Director of the Office of Management and (a) for information technology or informa- (2) RELATIONSHIP TO HEAD OF OFFICE OR Budget that all mission-critical systems of tion resource management, the Chief Infor- AGENCY.—The Agency Chief Information Offi- an office or agency achieve year-2000 compli- mation Officer shall consult with the Execu- cer shall— ance. tive Information Technology Investment Re- (A) report to the head of the office or agen- SEC. 11. OFFICE OF INSPECTOR GENERAL. view Board (or its successor) concerning cy; and (a) IN GENERAL.—The Office of Inspector whether the investment— (B) regularly update the head of the office General of the Department shall be exempt (1) meets the objectives of capital planning or agency on the status of year-2000 compli- from the requirements of this Act. processes for selecting, managing, and evalu- ance and other significant information tech- (b) REPORT.—The Inspector General of the ating the results of major investments in in- nology issues. Department shall semiannually submit a re- formation technology or information re- (3) PERFORMANCE REVIEW.—The Chief Infor- port to the Committee on Agriculture and source management; and mation Officer shall— the Committee on Government Reform and (2) links the affected strategic plan with (A) provide input for the performance re- Oversight of the House of Representatives the information technology architecture of view of an Agency Chief Information Officer and the Committee on Agriculture, Nutri- the Department. of an office or agency; tion, and Forestry of the Senate on the SEC. 8. AVAILABILITY OF AGENCY INFORMATION (B) annually review and assess the infor- progress of the Office of Inspector General TECHNOLOGY FUNDS. mation technology functions of the office or regarding— (a) TRANSFER.— agency; and (1) year-2000 compliance; and (1) IN GENERAL.—Not later than December 1 (C) provide a report on the review and as- (2) the establishment of an information of each fiscal year, the Secretary shall trans- sessment to the Under Secretary or Assist- technology architecture for the Office of In- fer to the appropriations account of the ant Secretary for the office or agency. spector General of the Department. Chief Information Officer an amount of funds (4) DUTIES.—The Agency Chief Information SEC. 12. TECHNICAL AMENDMENT. of an office or agency determined under Officer of an office or agency shall be respon- Section 13 of the Commodity Credit Cor- paragraph (2). sible for carrying out the policies and proce- poration Charter Act (15 U.S.C. 714k) is (2) AMOUNT.— dures established by the Chief Information amended in the second sentence by striking (A) IN GENERAL.—Subject to subparagraph Officer for that office or agency, the Admin- ‘‘section 5 or 11’’ and inserting ‘‘section 4, 5, (B), the amount of funds of an office or agen- istrator for the office or agency, and the or 11’’. cy for a fiscal year transferred under para- Under Secretary or Assistant Secretary for graph (1) may be up to 10 percent of the dis- the office or agency. SUMMARY OF THE USDA INFORMATION TECH- cretionary funds made available for that fis- (b) MANAGERS OF MAJOR INFORMATION NOLOGY REFORM AND YEAR 2000 COMPLIANCE cal year by the office or agency for informa- TECHNOLOGY PROJECTS.— ACT OF 1999 tion technology or information resource (1) IN GENERAL.—The assignment, and con- The bill: management. tinued eligibility for the assignment, of an Requires the Chief Information Officer to (B) ADJUSTMENT.—Not later than Sep- employee of the Department to serve as manage the design and implementation of an tember 30 of each fiscal year, the Secretary manager of a major information technology information technology architecture, based shall adjust the amount to be transferred project (as defined by the Chief Information on strategic business plans, that maximizes from the funds of an office or agency for the Officer) of an office or agency, shall be sub- the effectiveness and efficiency of USDA’s fiscal year to the extent that the estimate ject to the approval of the Chief Information program activities; for the fiscal year was in excess of, or less Officer. requires the Chief Information Officer to than, the amount actually expended by the (2) PERFORMANCE REVIEW.—The Chief Infor- approve or disapprove all expenditures for office or agency for information technology mation Officer shall provide input into the information resources, and allows the Chief or information resource management. performance review of a manager of a major Information Officer to waive this authority (b) USE OF FUNDS.—Funds transferred information technology project. for expenditures under $200,000; under subsection (a) shall be used by the (c) DETAIL AND ASSIGNMENT OF PER- permits the Secretary of Agriculture to Chief Information Officer— SONNEL.—Notwithstanding any other provi- transfer to the Chief Information Officer up (1) to carry out the duties and authorities sion of law, an employee of the Department to ten percent of each agency’s information of the Chief Information Officer under— may be detailed to the Office of the Chief In- technology funds for year 2000 compliance, (A) this Act; formation Officer for a period of more than information technology acquisition or infor- (B) section 5125 of the Information Tech- 30 days without reimbursement by the Office mation resource management (this authority nology Management Reform Act of 1996 (40 of the Chief Information Officer to the office expires in 2003); U.S.C. 1425); and or agency from which the employee is de- requires the Secretary of Agriculture to (C) section 3506 of title 44, United States tailed. ensure the transfer of information tech- Code; (d) INFORMATION TECHNOLOGY PROCURE- nology funds does not result in a reduction (2) to direct and control the planning, MENT OFFICERS.—A procurement officer of an in the number of employees in an agency; transfer or obligation of funds described in office or agency shall procure information requires the Chief Information Officer to section 7(a), and administration of informa- technology for the office or agency in a man- manage the year 2000 computing crisis May 4, 1999 CONGRESSIONAL RECORD — SENATE S4669 throughout USDA agencies, between USDA American companies do research over- temporary nature of the Credit has pre- and other federal, state and local agencies seas. vented companies from building careful and between USDA and private and inter- Research jobs are great jobs. They research strategies. national partners; are just as much a part of America’s Many of my colleagues in Congress makes the Chief Information Officer a presidential appointee, subject to Senate basic prosperity as are the jobs that have also expressed interest in making confirmation, thereby raising the stature of come from that research by way of the Credit permanent. But we’re urging the Chief Information Officer in the depart- products or activities. them to go beyond that action and, at ment as envisioned by the Clinger-Cohen Mr. President, advanced technologies the same time, address shortcomings Act; and drive a significant part of our nation’s that have been identified in the current requires an annual report from the Comp- economic strength. Our economy and Credit. I want to use the current en- troller General regarding USDA’s compli- our standard of living depend on a con- thusiasm for permanence to also craft ance with this act. stant influx of new technologies, proc- a Credit that will better serve the na- By Mr. DOMENICI (for himself, esses, and products from our indus- tion. Mr. BINGAMAN, Mr. FRIST, Mr. tries. For example, the current Credit ref- LIEBERMAN, and Ms. SNOWE): Many countries provide labor at erences a company’s research intensity S. 951. A bill to amend the Internal lower costs than the United States. back to 1984–88. That’s too outdated to Revenue Code of 1986 to establish per- Thus, as any new product matures, meet today’s dynamic market condi- manent tax incentives for research and competitors using overseas labor fre- tions. Many companies are involved development, and for other purposes; to quently find ways to undercut our pro- today in products that weren’t even in- the Committee on Finance. duction costs. We maintain our eco- vented in 1984. PRIVATE SECTOR RESEARCH AND DEVELOPMENT nomic strength only by constantly im- Our legislation allows a company to INVESTMENT ACT OF 1999 proving our products through innova- base their credit on their research in- Mr. DOMENICI. Mr. President, today tion. Maintaining and improving our tensity averaged over the preceding I am joining my cosponsors, Senators national ability to innovate is criti- eight years. It also allows companies to BINGAMAN, FRIST, LIEBERMAN, and cally important to the nation. stay with the current formulation of SNOWE, in introducing the Private Sec- The majority of new products re- the Credit if they prefer. tor Research and Development Invest- quires industrial research and develop- Our bill builds other improvements ment Act of 1999. ment to reach the market stage. I want into the Credit as well. For example, This bill makes the research tax to encourage that research and devel- the Alternative Research Credit com- credit permanent and significantly im- opment to create new products to en- ponent has been criticized because it proves the structure of that credit. sure that our factories stay busy and only rewards the maintenance level of Many Senators are for this extension, that our workforce stays fully em- a company’s research, it does not pro- and it is high time, and for the ployed at high salaried jobs. vide significant motivation to increase permanentization of this credit. I want more of our large multi-na- research intensity. With our proposed This also adjusts the credit to today. tional companies to select the United changes, the Alternative Credit now in- That credit was put in place many States as the location of their R&D. corporates the same 20 percent motiva- years ago, and much of what it does R&D done here creates American jobs. tion for increased research intensity doesn’t fit today’s industrial base, in- And since frequently the benefits of re- that is found in the regular Credit— cluding many startup companies that search in one area apply in another this is a major improvement. We also cannot take the right kind of credit. area, I want those spin-off benefits increase the base level of the Alter- We have made some changes which here, too. native Credit significantly. will make it cost a little bit more, but Congress created the Research Tax The current Credit has a provision I think the Finance Committee should Credit to encourage companies to per- that severely restricts the ability of take a look at some of the changes form research. But many studies docu- start-up companies to fully benefit. that are in this Domenici-Bingaman ment that the present form of this Tax Analysis by the Congressional Re- bill, because it will make the credit Credit is not providing as much stimu- search Service showed that 5 our of 6 more effective and more available. lation to industrial R&D as it could. start-up companies received reduced In March of 1998, 150 of our Nation’s Today, we’re introducing legislation to benefits because of a current provision top decisionmakers met at MIT for the improve the Research Tax Credit. that limits their allowable increase in first national innovative summit. The In March of 1998, 150 of our nation’s research expenditures. summit leaders included CEOs, univer- top decision makers met at MIT, for I’m concerned when start-up compa- sity presidents, labor leaders, Gov- the first National Innovation Summit. nies aren’t receiving full Credit. These ernors, Members of Congress, and sen- The Summit included corporate CEO’s, are just the companies that drive the ior administrative officials. university presidents, labor leaders, innovative cycle in this country; they In essence, they conclude that in governors, members of Congress, and are the ones that frequently bring out order to keep the United States of Senior Administration officials. the newest leading-edge products. Our America on the cutting edge of re- At the Summit, these experts dis- legislation thus drops this limitation search that can be applied to innova- cussed the health of the future na- and introduces additional help for tive things for America’s future and for tional research base. More than three- start-up businesses. our businesses, that we must make this quarters of them thought that the Our legislation addresses several tax permanent, that dollar for dollar it quality of that base would be no better other shortcomings in the current is the best investment in both general or worse than it is today, with nearly Credit as well. Now there is a ‘‘Basic research and specific research to keep one third projecting that it would be Research Credit’’ allowed, but rarely America strong and competitive in the weaker. used. This should be encouraging re- world. The Summit participants singled out search conducted at universities. When those people say dollar for dol- the Research Tax Credit as the policy But that part of the Credit is now de- lar it is the most effective, they are measure with the greatest potential for fined to include only research that does saying it is more effective than pro- a positive near-term impact. The Coun- ‘‘not have a specific commercial objec- grammatic assistance to research, cil on Competitiveness, who co-spon- tive.’’ There aren’t many companies which obviously is very necessary, and sored that Summit, stated that ‘‘mak- that want to support—much less admit we continue to expand upon and have it ing the [Research] Tax Credit perma- to their stockholders that they are grow. But if you don’t make this per- nent reflected a widely share consensus supporting—research with no commer- manent, you are losing a lot of re- among leaders whose companies and cial interest. The idea of this clause search by American businesses, No. 1. universities contribute decisively to was to encourage support of long term If you don’t correct it, you will lose the the nation’s economy.’’ research, which is a fine idea. effectiveness among companies that The single most important change in This is the kind of research that ben- need it the most. And third, you will our bill is to make the Credit perma- efits far more than just the next prod- see to it that more, rather than less, nent. Many studies point out that the uct improvement. It can enable a whole S4670 CONGRESSIONAL RECORD — SENATE May 4, 1999 new product or service and we need to (b) CONFORMING AMENDMENT.—Section (1) SPECIFIC COMMERCIAL OBJECTIVE.—Sec- encourage it. 45C(b)(1) of the Internal Revenue Code of 1986 tion 41(e)(4) of the Internal Revenue Code of Our legislation adds major incentives is amended by striking subparagraph (D). 1986 (relating to definitions and special for basic research by dropping the re- (c) EFFECTIVE DATE.—The amendments rules), as redesignated by subsection made by this section shall apply to amounts (a)(2)(B), is amended by adding at the end the quirement that only increments above paid or incurred after June 30, 1999. following new subparagraph: a baseline can be used and by including SEC. 3. IMPROVED ALTERNATIVE INCREMENTAL ‘‘(E) SPECIFIC COMMERCIAL OBJECTIVE.—For any research that is done for a consor- CREDIT. purposes of subparagraph (A), research shall tium of U.S. companies or any research (a) IN GENERAL.—Section 41 of the Internal not be treated as having a specific commer- that is destined for open literature Revenue Code of 1986 (relating to credit for cial objective if the results of such research publication. We’re also allowing this increasing research activities), as amended are to be published in a timely manner as to Credit to apply to research done in na- by section 2, is amended by adding at the end be available to the general public prior to tional labs. the following new subsection: their use for a commercial purpose.’’ And finally our legislation recognizes ‘‘(h) ELECTION OF ALTERNATIVE INCRE- (2) EXCLUSIONS FROM BASIC RESEARCH.— Clause (ii) of section 41(e)(4)(A) of such Code the importance of encouraging compa- MENTAL CREDIT.— ‘‘(1) IN GENERAL.—At the election of the (relating to definitions and special rules), as nies to use research capabilities wher- taxpayer, the credit under subsection (a)(1) redesignated by subsection (a), is amended to ever they exist in the country, whether shall be determined under this section by read as follows: in other businesses, universities, or na- taking into account the modifications pro- ‘‘(ii) basic research in the arts and human- tional labs. The current credit dis- vided by this subsection. ities.’’ allows 35% of all expenses for research ‘‘(2) DETERMINATION OF BASE AMOUNT.— (c) EXPANSION OF CREDIT TO RESEARCH performed under an external contract— ‘‘(A) IN GENERAL.—In computing the base DONE AT FEDERAL LABORATORIES.—Section amount under subsection (c)— 41(e)(3) of the Internal Revenue Code of 1986, our legislation allows all such expenses as redesignated by subsection (a), is amended to apply towards the Credit when the ‘‘(i) notwithstanding subsection (c)(3), the fixed-base percentage shall be equal to 80 by adding at the end the following new sub- research is performed at a university, percent of the percentage which the aggre- paragraph: small business, or national laboratory. gate qualified research expenses of the tax- ‘‘(E) FEDERAL LABORATORIES.—Any organi- In summary, this bill incorporates all payer for the base period is of the aggregate zation which is a Federal laboratory (as de- the improvement suggested in other gross receipts of the taxpayer for the base fined in section 4(6) of the Stevenson-Wydler bills that primarily make the credit period, and Technology Innovation Act of 1980 (15 U.S.C. ‘‘(ii) the minimum base amount under sub- 3703(6)).’’ permanent and provide some increase (d) EFFECTIVE DATE.—The amendments section (c)(2) shall not apply. in the alternative credit. But this bill made by this section shall apply to taxable ‘‘(B) START-UP AND SMALL TAXPAYERS.—In goes further and corrects weaknesses years beginning after December 31, 1999. computing the base amount under subsection in the current formulation of the Cred- (c), the gross receipts of a taxpayer for any SEC. 5. CREDIT FOR EXPENSES ATTRIBUTABLE TO CERTAIN COLLABORATIVE RE- it. I want to seize this opportunity to taxable year in the base period shall be make the Research Tax Credit a tool SEARCH CONSORTIA. treated as at least equal to $1,000,000. (a) CREDIT FOR EXPENSES ATTRIBUTABLE TO that will truly meet the goals for ‘‘(C) BASE PERIOD.—For purposes of this CERTAIN COLLABORATIVE RESEARCH CON- which it was established. subsection, the base period is the 8-taxable SORTIA.—Subsection (a) of section 41 of the The fact that this bill addresses sig- year period preceding the taxable year (or, if Internal Revenue Code of 1986 (relating to nificant shortcomings in the current shorter, the period the taxpayer (and any credit for increasing research activities) is Credit has not gone unnoticed. Spokes- predecessor) has been in existence). amended by striking ‘‘and’’ at the end of man for several groups that endorse ‘‘(3) ELECTION.—An election under this subparagraph (1), striking the period at the end section shall apply to the taxable year for this bill are here with us today. After of paragraph (2) and inserting ‘‘, and ’’, and which made and all succeeding taxable years by adding at the end the following new para- Senator BINGAMAN speaks, I’ll invite unless revoked with the consent of the Sec- graph: representatives from the Council on retary.’’ ‘‘(3) 20 percent of the amounts paid or in- Competitiveness, the National Associa- (b) CONFORMING AMENDMENT.—Section 41(c) curred by the taxpayer in carrying on any tion of State Universities and Land of the Internal Revenue Code of 1986 is trade or business of the taxpayer during the Grant Colleges, the National Coalition amended by striking paragraph (4) and by re- taxable year (including as contributions) to for Advanced Manufacturing, and the designating paragraphs (5) and (6) as para- a qualified research consortium.’’ American Association of Engineering graphs (4) and (5), respectively. (b) QUALIFIED RESEARCH CONSORTIUM DE- (c) EFFECTIVE DATE.—The amendments FINED.—Subsection (f) of section 41 of the In- Societies to add their perspectives. made by this section shall apply to taxable ternal Revenue Code of 1986 is amended by With this new bill, we will signifi- years beginning after December 31, 1999. adding at the end the following new para- cantly strengthen incentives for pri- SEC. 4. MODIFICATIONS TO CREDIT FOR BASIC graph: vate companies to undertake research RESEARCH. ‘‘(6) QUALIFIED RESEARCH CONSORTIUM.—The that leads to new processes, new serv- (a) ELIMINATION OF INCREMENTAL REQUIRE- term ‘qualified research consortium’ means ices, and new products. The result will MENT.— any organization— be stronger companies that are better (1) IN GENERAL.—Paragraph (1) of section ‘‘(A) which is— 41(e) of the Internal Revenue Code of 1986 (re- ‘‘(i) described in section 501(c)(3) and is ex- positioned for global competition. empt from tax under section 501(a) and is or- Those stronger companies will hire lating to credit allowable with respect to certain payments to qualified organizations ganized and operated primarily to conduct people at higher salaries with real ben- for basic research) is amended to read as fol- scientific or engineering research, or efits to our national economy and lows: ‘‘(ii) organized and operated primarily to workforce. ‘‘(1) IN GENERAL.—The amount of basic re- conduct scientific or engineering research in I ask unanimous consent that the search payments taken into account under the public interest (within the meaning of text and a summary of the bill, section subsection (a)(2) shall be determined in ac- section 501(c)(3)), by section, be printed in the RECORD. cordance with this subsection.’’ ‘‘(B) which is not a private foundation, There being no objection, the mate- (2) CONFORMING AMENDMENTS.— ‘‘(C) to which at least 5 unrelated persons paid or incurred during the calendar year in rial was ordered to be printed in the (A) Section 41(a)(2) of such Code is amended by striking ‘‘determined under subsection which the taxable year of the organization RECORD, as follows: (e)(1)(A)’’ and inserting ‘‘for the taxable begins amounts (including as contributions) S. 951 year’’. to such organization for scientific or engi- Be it enacted by the Senate and House of (B) Section 41(e) of such Code is amended neering research, and Representatives of the United States of America by striking paragraphs (3), (4), and (5) and by ‘‘(D) to which no single person paid or in- in Congress assembled, redesignating paragraphs (6) and (7) as para- curred (including as contributions) during SECTION 1. SHORT TITLE. graphs (3) and (4), respectively. such calendar year an amount equal to more This Act may be cited as the ‘‘Private Sec- (C) Section 41(e)(4) of such Code, as redes- than 50 percent of the total amounts re- tor Research and Development Investment ignated by subparagraph (B), is amended by ceived by such organization during such cal- Act of 1999’’. striking subparagraph (B) and by redesig- endar year for scientific or engineering re- SEC. 2. PERMANENT EXTENSION OF RESEARCH nating subparagraphs (C), (D), and (E) as sub- search. CREDIT. paragraphs (B), (C), and (D), respectively. All persons treated as a single employer (a) IN GENERAL.—Section 41 of the Internal (D) Clause (i) of section 170(e)(4)(B) of such under subsection (a) or (b) of section 52 shall Revenue Code of 1986 (relating to credit for Code is amended by striking ‘‘section be treated as related persons for purposes of increasing research activities) is amended by 41(e)(6)’’ and inserting ‘‘section 41(e)(3)’’. subparagraph (C) and as a single person for striking subsection (h). (b) BASIC RESEARCH.— purposes of subparagraph (D).’’ May 4, 1999 CONGRESSIONAL RECORD — SENATE S4671

(c) CONFORMING AMENDMENT.—Paragraph ‘‘(II) in the case of a small business which portions of the current Credit legislation and (3) of section 41(b) of the Internal Revenue is not a corporation, the capital and profits represent significant enhancements to these Code of 1986 is amended by striking subpara- interests of the small business. options. graph (C). ‘‘(iii) SMALL BUSINESS.—For purposes of The Bill addresses several concerns with (d) EFFECTIVE DATE.—The amendments this subparagraph— the existing Credit: base period used for the made by this section shall apply to taxable ‘‘(I) IN GENERAL.—The term ‘small busi- years beginning after December 31, 1999. regular credit, 1984–88, is out-dated; 50% rule ness’ means, with respect to any calendar precludes most startups from gaining full SEC. 6. IMPROVEMENT TO CREDIT FOR SMALL year, any person if the annual average num- BUSINESSES AND RESEARCH PART- credit; basic research credit is very difficult NERSHIPS. ber of employees employed by such person to use, and alternative credit provides no (a) ASSISTANCE TO SMALL AND START-UP during either of the 2 preceding calendar strong incentive for increased research in- BUSINESSES.—The Secretary of the Treasury years was 500 or fewer. For purposes of the tensity. preceding sentence, a preceding calendar or the Secretary’s delegate shall take such In addition to permanence, the Bill in- year may be taken into account only if the actions as are appropriate to— creases the maintenance level of the alter- person was in existence throughout the year. (1) provide assistance to small and start-up native credit to 4%. (Thus the Bill meets the ‘‘(II) STARTUPS, CONTROLLED GROUPS, AND businesses in complying with the require- goals of some groups who favor simply per- PREDECESSORS.—Rules similar to the rules of ments of section 41 of the Internal Revenue manence and 1% additional to the alter- subparagraphs (B) and (D) of section 220(c)(4) Code of 1986, and native credit). In addition, the bill; estab- shall apply for purposes of this clause.’’ (2) reduce the costs of such compliance. lishes a 20% marginal rate for increased in- (b) REPEAL OF LIMITATION ON CONTRACT RE- (c) CREDIT FOR PATENT FILING FEES.—Sec- tensity for users of the alternative credit; SEARCH EXPENSES PAID TO SMALL BUSI- tion 41(a) of the Internal Revenue Code of changes the base period for alternative cred- NESSES, UNIVERSITIES, AND FEDERAL LABORA- 1986, as amended by section 5(a), is amended it users to an 8 year average; eliminates the TORIES.—Section 41(b)(3) of the Internal Rev- by striking ‘‘and’’ at the end of paragraph enue Code of 1986, as amended by section 5(c), (2), by striking the period at the end of para- 50% rule for users of the alternative credit; is amended by adding at the end the fol- graph (3) and inserting ‘‘, and’’, and by add- encourages industrial partnerships with uni- lowing new subparagraph: ing at the end the following new paragraph: versities and national labs; expands defini- ‘‘(C) AMOUNTS PAID TO ELIGIBLE SMALL BUSI- ‘‘(4) 20 percent of the patent filing fees paid tion of basic research to include all published work; enables basic research at NESSES, UNIVERSITIES, AND FEDERAL LABORA- or incurred by a small business (as defined in FFRDCs to count toward their basic re- TORIES.— subsection (b)(3)(C)(iii)) to the United States search credit; qualifies 100% of contract re- ‘‘(i) IN GENERAL.—In the case of amounts or to any foreign government in carrying on search accomplished at universities, na- paid by the taxpayer to an eligible small any trade or business.’’ tional labs, and small businesses; encourages business, an institution of higher education (d) EFFECTIVE DATE.—The amendments (as defined in section 3304(f)), or an organiza- made by this section shall apply to taxable establishment of research-driven consortia tion which is a Federal laboratory (as de- years beginning after December 31, 1999. by providing 20% credit for their research ex- fined in subsection (e)(3)(E)), subparagraph penses; provides a phase-in of credit for (A) shall be applied by substituting ‘100 per- DOMENICI-BINGAMAN RESEARCH TAX CREDIT start-up businesses, and enables small busi- cent’ for ‘65 percent’. BILL nesses to count patent filing fees toward re- ‘‘(ii) ELIGIBLE SMALL BUSINESS.—For pur- This bill addresses two broad goals: estab- search expenses. poses of this subparagraph, the term ‘eligible lishes a permanent Credit, and strengthens With these enhancements, the Domenici- small business’ means a small business with the formulation of the Credit. Bingaman Bill provides a permanent Re- respect to which the taxpayer does not own The Bill enhances the Credit received by search Tax Credit that address shortcomings (within the meaning of section 318) 50 per- all users of the regular Research Tax Credit. in the current formulation of the Credit. cent or more of— Thus, all companies benefiting from its cur- Furthermore, the Bill meets the goals of ‘‘(I) in the case of a corporation, the out- rent formulation are positively impacted. constituents who favor only permanence or standing stock of the corporation (either by The changes in the Credit are focused in the only permanence plus an increase in the al- vote or value), and Alternative Credit and Basic Research Credit ternative credit.

SUMMARY Joint Tax 10-yr evaluations: Section II: Make the Credit permanent ...... $26.3 B Section III: Improve the Alternative Investment Credit, AIC, by increasing the Credit allowed for the base maintenance level of R&E expenditures, and add an incremental incentive package onto the AIC. Create a floating 8-year base period for the AIC. Drop the ‘‘50%’’ rule for the AIC. Insert a transition approach to help startups ...... 3.8 Section IV: Provide a flat credit for basic research expenditures at universities, small businesses, and national labs. Improve definition of basic research ...... 5.0 Section V: Provide flat credit for consortia-based research ...... 0.1 Section VI: Increase the allowance for contract research conducted at universities, small businesses, and national labs from 65% to 100%. Add patent filing expenses as qualified expenditures for small businesses ...... 13?? Total ...... 38.2 1 Joint Tax did not score Section VI yet. A version of Section VI was in S. 2072 last year, except that it increased the allowance for everybody, including large businesses. They scored that at $4.8B. The score this year ‘‘has to’’ be well below $4.8B, I used $3 for talking purposes.

NOTES—TO JOINT TAX SCORES Section V encourages consortia to fund re- those provisions, I would like to spend search. Senator has encouraged consortia Section II duplicates Senator BOXER’s S. a little time discussing why I think we 195 by just making the Credit permanent, formation in other ways, this continues his leadership in this area. need to enact this legislation now. Representative SENSENBRENNER has the same version in the House. Section VI is a further major incentive for I think it is fair to say that the na- companies to fund research at universities, tion’s economy owes much of its resur- Sections II and III together duplicate and labs, and small businesses. extend the approach of the Baucus/Hatch S. gence to the increases in productivity 680 with 36 cosponsors and the Johnson/Mat- Mr. BINGAMAN. Mr. President, I am attributable to the infusion of high sui Bill in the House. These two sections give pleased to join with my co-sponsors, technology products and services. Our permanence plus increase the AIC by slightly Senators DOMENICI, LIEBERMAN, FRIST, more than 1%. They also add major enhance- nation is today in the enviable position and SNOWE in introducing the Private of not only having the greatest access ments to the AIC by establishing an option Sector Research and Development In- for companies to realize a 20% incremental to these products, but also being the vestment Act of 1999. This bill will fi- benefit. The Baucus/Hatch version is sup- primary provider of these products for ported by the R&D Tax Coalition, using their nally make the Research and Experi- mantra of ‘‘Permanence plus 1%.’’ Sections mentation Tax Credit permanent, a the rest of the world. II and III do everything that the R&D Tax provision of the federal tax code that These capabilities have enabled Coalition wants and a lot more. was first enacted in 1981, and has been American businesses to be in a position Section IV is expensive at $5 Billion, but extended 9 times since. of world leadership in areas as diverse gains the strongest possible support from In addition to the provision of perma- universities. This section changes the defini- as medical and bio technologies, micro- nence, our bill has other improvements electronics, and financial services. tion of basic research, but more important, that I believe will address many of the lets contract research at a university (+SB shortcomings of existing law, and will In order for us to insure that the eco- or lab) be treated as a flat 20% credit, not nomic engine continues to run at peak above an incremental base. This is a tremen- bring the code more in synch with the dous incentive to fund expenditures for basic ways industry is performing R&D form, we must assure that there is a research at universities. today. But before I speak to some of continual infusion of new technologies S4672 CONGRESSIONAL RECORD — SENATE May 4, 1999 that will spawn the products and serv- believe that it is in our nation’s best years ago to the development of the ices of the future market. Many econo- interest to promote these research ar- Internet today. And it looks like we mists state that the best way to do this rangements. are starting to get noticeable produc- is to create a stable incentive for re- All of our studies indicate that small tivity gains in our services sector as search investment and an environment businesses are the ‘‘high test’’ fuel of well, also driven by information tech- where businesses have the flexibility to the nation’s economy, producing more nology. The digital revolution is affect- choose among all the options available and highly paid jobs. Yet it is this ing every sector of our economy. As to perform the research. A policy group of companies that have the hard- Andy Grove, Chairman of Intel, said, which achieves these goals will provide est time in accessing the Tax Credit ‘‘In five years, there will be no Internet businesses with the long-term incen- under existing law. We propose to mod- companies. Every company will be an tive to invest in both the research and ify the law so that small businesses Internet company,’’ or it won’t be in the people that will create the next have greater benefit in their early business. generation of commercially successful years, when the value of the credit can Some analysts look at the stock mar- products. have the greatest impact on a rapidly ket today and compare it to the 1600’s That is exactly what the ‘‘Private growing, but often cash-limited, com- Dutch tulip bulbs investment bubble, Sector Research and Development In- pany. maybe the largest bubble of all time, vestment Act of 1999’’ does. First, it Finally, to assure that these small and its subsequent crash. The dif- makes Section 41 of the Internal Rev- businesses are truly able to compete in ference is that tulip bulbs did not fun- enue Code permanent, creating a stable the global market and to protect their damentally alter the means of commu- long-term environment for investment. intellectual assets, we are proposing nication and increase productivity as But it goes beyond that. that the full value of the Tax Credit be the Internet does. Pharmaceuticals and health care is Present law does not allow all com- applied to their patent filing fees, both another area in which our country’s in- panies to benefit equally from the Tax here and abroad. vestment in R&D has catapulted us Credit. Some companies, simply as a In speaking with owners of small, above our competitors. A recent study result of where they were in the busi- high tech businesses in New Mexico, I from the Department of Commerce hear that anything we can do to in- ness cycle in the late 80’s, find that found that the United States is decades crease the capital funds available to they cannot attain the full benefit of ahead of other countries in the phar- these businesses as they are starting the credit. And, if the company did not maceutical and health related indus- up is critical to their success. These exist at all in the 80’s, as is the case tries directly because of our invest- two special provisions for small busi- with most of the Internet and many of ment in R&D. In the past 50 years, re- nesses are positive steps in that direc- the biotech start-up firms, there is searchers from U.S. pharmaceutical tion. simply no way at all for them to access companies have discovered and devel- Mr. President, many of my fellow the full credit rate. This is simply not oped breakthrough treatments for Senators and Members of the House fair. Our bill proposes to correct that asthma, heart disease, osteoporosis, have already endorsed the concept of a inequity by making the 20% marginal HIV/AIDS, stroke, ulcers, and glau- permanent R&D Tax Credit. With that rate available to all companies that coma. And they have developed vac- base of enthusiasm already in place, I are growing their research investment. cines against previously common encourage my colleagues to seize the With much of the nation’s research causes of infant death including polio, opportunity to move forward and com- talent residing in our universities and rubella, influenza B and whooping federal laboratories, we are proposing plete the job. Let’s make it permanent, cough. Why is the U.S. pharmaceutical to extend the full Tax Credit for re- and let’s make it right. industry the number one global inno- Mr. LIEBERMAN. Mr. President, I search investments companies make in vator in medicine? According to Ray- am pleased to join Senators DOMENICI those institutions. mond Gilmartin, Chairman, President and BINGAMAN today in supporting the I am particularly pleased with the and CEO of Merck & Co., because ‘‘The Private Sector Research and Develop- part of this provision that provides a U.S. pharmaceutical industry leads the more cost effective way for companies ment Investment Act of 1999. This bill world in its commitment to re- to invest in the education of our future recognizes that we are moving toward search. . .’’ generation of scientists and engineers a New Economy and supports the en- There have been at least a dozen at our universities. If this bill becomes gine of that New Economy. Let me ex- major economic studies, including law, as many as 3000 additional masters plain. those of Nobel Prize winner Robert and doctoral level engineers and sci- In this decade, we have returned to Solow, which conclude that techno- entists could be produced each year, our nation’s historic growth rate of 3% logical progress accounts for 50%, and with up to 1000 of these being women plus growth. We haven’t seen this in 30 lately considerable more, of our total and minorities, all at no additional years, but now we are back there growth and has twice the impact on cost to businesses. again. We know what the last few years economic growth as labor or capital. I fully expect that the ‘‘Private Sec- of growth feel like—America is start- For the long term health of our econ- tor Research and Development Invest- ing to feel like an opportunity society omy, we need to invest now in activi- ment Act of 1999’’ will accelerate busi- again. We are moving toward some fun- ties that will have a future payoff in ness investment in universities, grow- damental changes in our economic innovation and productivity. A one ing the number of trained scientists structure, toward a knowledge-based percent increase in our nation’s invest- and engineers even faster. At a time economy and further away from a re- ment in research results in a produc- when there has been much debate over source-based economy. Key to these tivity increase of 0.23%. We need to en- providing additional employment visas high growth rates has been overall pro- sure our future by creating the institu- to foreign engineers, this bill provides ductivity gains that are back in the 2% tions and incentives to increase R&D one mechanism for educating qualified range, which has enabled the United investment in the United States. This Americans to fill these high tech jobs. States to experience real growth and Act will replace our current, dysfunc- As the cost of doing research con- real growth in incomes without signifi- tional system of on-again, off-again tinues to escalate, and companies find cant inflation. A significant part of our R&D tax credits with a tax credit that it more difficult to go it alone, our bill productivity gains have come from is reliably permanent. In the global proposes that the research investments gains in manufacturing productivity, economy we will have to not only out- companies make in research consortia which has approached 4% in each of the perform our competitors, but out-inno- with other businesses, universities, and past three years. These manufacturing vate them. Giving our industry the federal laboratories be fully available gains come directly from innovation, tools to support their own innovation for the Tax Credit. I have seen first- and in recent years these are largely is a timely act. hand, at places like Sandia and Los Al- driven by innovation in information This Act meets the goals of some amos National Laboratories, the re- technology—one of the most amazing groups who favor simply making the sults of consortia partnerships between results of R&D in this century from the credit permanent and increasing the al- industry and our national labs, and I invention of the transistor over 50 ternative credit by one percent, as does May 4, 1999 CONGRESSIONAL RECORD — SENATE S4673 the bill introduced by my esteemed ingly remote and outdated as time ster in Wichita, Kansas, reading the colleague Senator HATCH. I am a co- passes. box scores in the Wichita Eagle every sponsor of Senator HATCH’s bill. I be- Mr. President, I believe there has morning because of my love and pas- lieve we need to make the R&D credit been a growing awareness among Sen- sion for baseball. I have been attending permanent. But I feel strongly that we ators over the past couple of years that Phillies and Eagles games, and, when I need further changes to the Act to in- technology has been one of the driving can, Pirates and Steelers games, be- crease its effectiveness, make it more forces behind our fantastic economic cause of my love for each of these accessible to small and start up busi- growth in this country. Despite that we sports. They are tremendously excit- nesses, update the credit to account for are finally out of the red on the budget ing. changes we are seeing in industry and, and finally in the black, we know that Basically, it was unfair for the old importantly, to complement the rela- continued control and restraint must Browns to have been taken out of tionship between Federal and private be exercised on the budget and we will Cleveland, but now I am glad to hail sector research. The bill that Senators have to make difficult choices about the arrival of the new Browns, even DOMENICI, BINGAMAN, FRIST, SNOWE, what programs to fund and what tax though it was at great cost to the tax- and myself are introducing makes cuts to make. But now that we know payers, and deprived the Eagles of a these important changes, as well as that technological progress is respon- well-earned first overall draft pick. The value of sports franchises to making the R&D tax credit permanent. sible for 50% or more of economic their owners has ballooned in recent Industry research is largely depend- growth, I think we owe it to ourselves years. Jeffrey Lurie bought the Phila- ent on the basic research undertaken to encourage such progress whenever delphia Eagles in 1995 for a then-high by the Federal government. Because possible. It is an investment in our fu- price of $185 million. Last year, the industry itself does not perform basic ture which we cannot do without. research—84% of industry research is successful bidder for an expansion NFL concentrated on product development, By Mr. SPECTER: franchise in Cleveland paid $530 mil- the final stage of R&D—the private S. 952. A bill to expand an antitrust lion. The bidding for the Washington sector must draw on government-fund- exemption applicable to professional Redskins franchise (including Cooke ed research to develop ideas for new sports leagues and to require, as a con- Stadium) has surpassed $800 million. market products. Of all papers cited in dition of such an exemption, participa- There also seems to be no limit to the U.S. industry patents, 73% are from tion by professional football and major amount of money available to club government and non-profit funded re- league baseball sports leagues in the fi- owners when it comes to paying players—witness Mike Piazza’s signing last search. This marriage of basic Federal nancing of certain stadium construc- year of a $91 million ten-year contract research and applied private research is tion activities, and for other purposes; to the Committee on the Judiciary. with the New York Mets. essential. Yet, as a percent of GDP, New ballparks and stadiums clearly Federal investment in R&D has been STADIUM FINANCING AND FRANCHISE provide an enhancement to the culture nearly halved over the last 30 years. We RELOCATION ACT OF 1999 and tax base of communities. That are living off of the fruits of basic re- Mr. SPECTER. Mr. President, I have said, however, there is also no doubt search from the mid-1960s. In addition, sought recognition today to introduce that having a new ballpark or stadium the national labs and universities are legislation, the Stadium Financing and significantly increases the value of a facing a brain drain by the private sec- Franchise Relocation Act of 1999, sports franchise for its owner. In De- tor as engineers and scientists are in which is designed to respond to the cember, 1998, Forbes Magazine esti- high demand and increasingly in short need for stabilizing major league base- mated the net worth of the nation’s supply. The private sector recognizes ball and football franchises located in professional sports teams. Seven of the the importance of work accomplished metropolitan areas of the United top ten valued baseball franchises and through Federal funding and knows States. eight of the top ten valued football this is a problem that needs to be ad- I have long been concerned with the franchises were in cities with ballparks dressed. This bill encourages collabora- pressure put upon communities by and stadiums built or approved to be tion between private sector research baseball and football clubs seeking new built since 1990. and national labs and universities and playing facilities, where, with the gun In January, 1999, the Philadelphia In- offers a financial incentive to use the to their heads of the team’s overt or quirer quoted Jeffrey Stein, managing national labs and universities. Specifi- tacit threat to move to another city, director of McDonald Investments, a cally, the Act encourages industry to government leaders feel compelled to Cleveland brokerage house, who said: use the federally funded programs by have taxpayers finance a lion’s share of ‘‘New stadiums, in and of themselves, qualifying 100% of contract research ballpark and stadium construction significantly enhance the value of a accomplished at universities, national costs. As those costs rise—a present team.’’ He cited the Cleveland Indians labs, and small businesses. It also en- state-of-the-art new facility goes for Baseball Club as an example. In the De- ables basic research at Federally Fund- close to $300 million—those pressures cember, 1998, Forbes article, the value ed R&D Centers to count toward the have intensified. of that team, which now plays in beau- basic research credit. By expanding the Professional sports teams are en- tiful new Jacobs Field, was listed as credit to research done in consortia, trusted with a public interest. The $322 million, the third highest in base- the Act also recognizes that research movement of the Dodgers from Brook- ball. In 1986, the Indians had been pur- today is more often done in collabora- lyn, which broke the hearts of millions chased for $35 million. In 1993, the last tion than in isolation. of their Flatbush followers, was the year the Indians played at Cleveland The fastest method of moving restart of pirating of sports franchises in Stadium, the team had revenues of search into the marketplace is often America, and should never have been $54.1 million. Its 1997 revenues were through small, startup companies. The allowed. It was accompanied, of course, $140 million. Act updates the tax credit rules to ac- by the flight of the Giants from New The value of these sports franchises commodate the special R&D cycles York to San Francisco. to a community is reflected in the as- faced by these companies. By sup- Since then, the matter has pro- tronomical broadcast rights fees the porting the small but crucial R&D ef- liferated to an almost absurd degree. It sports leagues command in the U.S. forts of new technology-based firms, is hard to understand why the tax- marketplace. Ten years ago, the Na- the Act nurtures the very companies payers of Maryland and Baltimore had tional Football League received $970 who contribute disproportionately to to be in a bidding contest for the Cleve- million a year for its network tele- our national productivity and employ- land Browns, when Baltimore should vision rights. The NFL now receives ment growth. have had its own team, the Colts, in- three times that amount, through con- The Act also updates our view of stead of the Colts moving out of Balti- tracts with TV and cable networks that R&D. For the alternative credit, it cal- more in the middle of the night to go pay the League $17.6 billion for its TV culates R&D expenditures with respect to Indianapolis. rights over an 8-year period com- to a rolling baseline, rather than a I have participated in America’s love mencing with the 1998 season, an aver- fixed 1980’s baseline that is increas- affair with sports since I was a young- age of $2.2 billion per year, while Major S4674 CONGRESSIONAL RECORD — SENATE May 4, 1999 League Baseball annually derives more My bill will take effect on the date of team, but they ought not to have Bal- than $400 million from this source. its passage, and will apply to all net- timore’s football team. Similarly, These revenues are shared by the clubs work TV revenues thereafter received Cleveland ought to be able to retain and their players. by the leagues, and to all new ballpark the Browns. It has been a matter of One would think some of that giant and stadium facilities not yet con- great pride for Cleveland for many, revenue windfall might trickle down structed, such as the construction now many years. and be used to help finance new ball- underway in Cleveland and Pittsburgh. The start occurred in 1958 when the parks and stadiums, which produce I have sought recognition today to Dodgers left Brooklyn to go to Los An- greatly enhanced revenues for team introduce the Stadium Financing and geles. Brooklyn had no more precious owners, yet it seems the more TV Franchise Relocation Act of 1999. This possession than ‘‘Dem Bums,’’ the money a league makes, the more its legislation would require that the Na- Dodgers. And I recall as a youngster clubs demand from local taxpayers to tional Football League and Major the 1941 World Series, Mickey Owens’ fund the construction of new playing League Baseball act to provide financ- famous fumble, dropping of the third facilities. The irony of this is that none ing for 50 percent of new stadium con- strike, and the tremendous tradition of these huge TV revenues would ac- struction costs, and that the National that the Dodgers had with Jackie Rob- crue to the clubs and their players if Football League be given a limited inson and Pee Wee Reese in the Pen- the leagues did not have the benefit of antitrust exemption to regulate fran- nant races. And off they went to Los an antitrust exemption permitting chise moves. Angeles. Los Angeles should have had a clubs to pool their TV rights. This legislation is necessary because baseball team, but not Brooklyn’s In the interest of fairness, I believe baseball and football have for too long baseball team. And they had a twofer, the leagues should, with a small por- had a public-be-damned attitude. At they took the Giants out of New York tion of these TV revenues, assist local the present time, major league sports and put them in San Francisco at the communities in the financing of new is out of control on franchise moves for same time. playing facilities for the leagues’ clubs, football teams and the demands upon Baseball has had an opportunity, to as a condition of their continuing to cities and states for exorbitant con- some extent, to control franchise receive the antitrust exemption which struction costs is a form of legalized moves because baseball has an unlim- permits pooling of TV rights. extortion in major league sports. ited antitrust exemption. And they I also believe the leagues should have The National Football League has a have it in a very curious, illogical way. an antitrust exemption which permits multi-year television contract for $17.6 Justice Oliver Wendell Holmes ruled in them to deny a club’s request to move, billion which it enjoys by virtue of a the 1920s that baseball was a sport and thus minimizing the implied threat to special status and antitrust exemption not involved in interstate commerce move which has characteristically ac- which they have for revenue sharing or and therefore exempt. That has been an companied demands upon local govern- else they could not collect television item which has been out of touch with ment for a new ballpark or stadium. receipts of $17 billion. But, at the same reality for a long time. Justice Black- Both these objectives are met by the time, when they are asked to step for- mun said baseball was a big business, legislation I am offering today. It will ward and help with stadium construc- in a Supreme Court decision, and in- clarify the broadcast antitrust exemption costs, which are minimal com- volved in interstate commerce. But tion given to sports leagues and give pared to their television receipts, they since it had been unregulated with the the National Football League and put one community in competition antitrust exemption for so long, it has Major League Baseball an opportunity with another community. A franchise, been left to Congress to make a to continue to receive it by agreeing to being what it is, leaves a city like change. place 10% of their network TV reve- Hartford and a state like Connecticut It may be that we ought to make a nues into a trust fund to be used to to offer $375 million to lure the Patri- change and take away the antitrust ex- help finance construction or renova- ots from Massachusetts to Con- emption from baseball generally. Base- tion of ballparks and stadiums for use necticut. ball fiercely resists any contribution to by their teams. Trust fund revenues This is a problem which is particu- stadium construction costs—fiercely will be restricted to such use and will larly acute for my State, Pennsyl- resists with a lobbying campaign, be excluded from the league’s gross re- vania, which is now looking at the con- which is now underway, of great inten- ceipts which are distributed to clubs struction of four new stadiums. Two sity. I will not list the cosponsors who and players. are now under construction in western have prospectively dropped off this bill Money from the trust fund will be Pennsylvania—Pittsburgh for the Pi- because of that lobbying. provided to finance up to one-half the rates and the Steelers—and two more I am introducing this bill on behalf of cost of construction or renovation of are being sought in eastern Pennsyl- Senator HATCH, chairman of the Judi- ballparks and stadiums on a matching vania for the Phillies and for the Ea- ciary Committee, Senator BIDEN, fund basis, conditioned upon the local gles. It is a $1 billion price tag which former chairman of the Judiciary Com- government’s agreement to provide at we are looking at now, which is signifi- mittee, and myself. We had a hearing least one dollar of financing for every cant for public funding, especially in a in the Antitrust Subcommittee of Judi- two dollars to be provided from the context where our schools are under ciary where I serve, and I asked the trust fund. funded, where our housing is in need of head of the Antitrust Division of the Thus, for example, if the cost of con- assistance, where we need funds for Department of Justice and the Chair- structing a new stadium for the Phila- child assistance, where we need funds man of the Federal Trade Commission delphia Eagles, or for the Pittsburgh for transition from welfare to work, to take a look at revoking baseball’s Steelers, were $280 million, the Na- where we need funds for highways, and antitrust exemption totally. Baseball tional Football League would be for so many other important matters. has not been responsible in dealing obliged to provide $140 million to each But, understandably, a NFL franchise with salary caps and with revenue such project, on condition that the city is a very major matter for the prestige sharing. So there would be some equal- and state, combined, provided at least of a city and also for the economy of a ity and some parity for cities like $70 million. Ideally, the League would city. And a major league baseball fran- Pittsburgh, small cities, where you pay one-half the cost out of the trust chise, similarly, is a major matter for have the financial power of the New fund and the other half would be fi- the economy and the prestige of a city. York Yankees dominating the league, nanced by the club owner and the local You have a situation, for example, buying up all the players; where you government. where the Colts left Baltimore in the have Mr. Murdoch acquiring the Dodg- The legislation will also enlarge the middle of the night for Indianapolis. ers for a giant price in connection with antitrust exemption given to baseball, Then there was a bidding war for the his satellite ideas and with television basketball, football, and hockey Browns, which left Cleveland to go to revenues and the superstation which leagues to permit those leagues to deny Baltimore at an enormous cost to the Atlanta now has. a member club’s request to move its taxpayers of Maryland and Baltimore. Here you have a goose which is lay- franchise to a different city. Indianapolis ought to have a football ing a golden egg and baseball has not May 4, 1999 CONGRESSIONAL RECORD — SENATE S4675 faced up to fairness in changing its ap- tion and we can take it away from novel theory that manufacturers in full proach to dealing with the realities of baseball or we can limit it for baseball. compliance with all of the laws gov- the market and has not undertaken the And we can take away, if we choose, erning the production of their products salary caps and the revenue sharing the football antitrust exemption on can nevertheless be held liable for the necessary to stabilize baseball. revenue sharing. So I do believe this is criminal misuse of those products by So this bill goes, to a limited extent, a matter which is of significant public individuals who are completely beyond on conditioning baseball’s continuation interest. When a city like Hartford and their control. This radical notion is of its antitrust exemption to helping a State like Connecticut bids $375 mil- flatly contrary to the principle of indi- with stadium construction costs. I lion of funds which could obviously be vidual responsibility on which the tort want them to help build a stadium for used better; where Pennsylvania is laws of our Nation are based. the Philadelphia Phillies. I want them looking at more than $1 billion in four In at least some cases, Mr. President, to help on the construction costs for new stadiums at a time when $17 bil- these lawsuits seem to be intended to the Pittsburgh Pirates. I went them to lion comes to the NFL, and the salaries subject firearms manufacturers, im- help on construction costs for new are astronomical. If the leagues are to porters and dealers to legal costs that teams, where cities are facing the re- have this exemption, if they are to are so onerous that they may not be ality of either spending hundreds of have this special break, they ought to able to defend themselves, or indeed be millions of dollars for these new sta- face up to some public responsibility. able to remain in business. A majority diums, or having the teams flee to The second part of this legislation of firearms manufacturers, importers other cities. That is something base- would grant football a limited anti- and dealers are small, privately-owned ball ought to face up to, even though it trust exemption so they could regulate businesses that cannot afford to bear is true that baseball has a different sit- franchise moves. When the Raiders the legal costs of defending themselves uation from football, because base- moved from Oakland to Los Angeles, in a large number of judicial forums. ball’s television revenues are lesser. there was a multimillion-dollar lawsuit Moreover, compared to most firearms But there has to be some equality and which the NFL had to pay. So they are manufacturers, importers and dealers, there has to be some parity. Or if base- reluctant to take a stand on exercising States and local governments are large ball wants to function like any other their league rules which require three- and relatively wealthy entities that business, let them do so, but without fourths approval. But, if they had an are able to spend large amounts of tax- the antitrust exemption, and let’s see antitrust exemption to this limited ex- payers’ dollars on wars of attrition what will happen to those giant sala- tent, then they would be in a position against small business. ries for the baseball players and those to ameliorate the larceny. Maybe it Mr. President, these lawsuits rep- tremendous rates and the way baseball would be petit larceny instead of grand resent an effort by social activists and operates, if it does not have an anti- larceny. But I think that kind of anti- trial lawyers to use the Nation’s judici- trust exemption which is very special trust exemption would be worthwhile. ary to secure victories against the fire- and unique. As you can tell, I feel very strongly arms industry that they never would be Football has an antitrust exemption about this subject. I have been a sports able to achieve through the legislative as to revenue sharing. Without that ex- fan since I was 8 years old—perhaps 5 process. In fact, the firearms industry emption they could not have the $17 years old when my family, living in won’t be the last target of these law- billion multi-year television contract. Wichita, KS, made a trip to Chicago for suits. In a January 31, 1999, article in They have plenty of funds to face up to the World’s Fair and I became a Cubs the Washington Post, plaintiffs’ attor- stadium construction costs for the fan. And I became a Phillies fan when ney John Coale stated ‘‘. . . we are in- Pittsburgh Steelers and for the Phila- I moved to Philadelphia more than a terested in taking a close look at the delphia Eagles and for other teams. half century ago. And I am a Pirates exorbitant prices of prescription drugs The facts are not yet before the public, fan, too, except when they are playing for the elderly, for example.’’ ‘‘Unless but I hear the rumors that football is the Phillies. the courts reject our approach,’’ Coale putting up a very substantial sum to If you lived in Wichita, KS, when the continued, ‘‘we will continue to utilize have the Patriots remain in Massachu- morning paper came, the major item of it to tackle industry bullies.’’ setts to top the bid of Connecticut. interest would be the sports page and Thankfully, Mr. President, the public Connecticut is a television market, ac- the box scores. And I am an Eagles fan is not fooled. A December, 1998, survey cording to the media, about 24th. Bos- and a Steelers fan and held season tick- of 1,008 U.S. adults by DecisionQuest, a ton, MA, is a media market about 6th. ets as early as 1958. When the Dodgers jury consulting firm, found that 66.2% And the National Football League and Giants moved away from Brooklyn of American adults oppose these law- wants to protect its media market so and New York City, I thought that was suits against firearms manufacturers. they will put up a substantial sum of really a very serious breach. Such Only 19.3% of Americans believe that money to accomplish that. moves have a great impact on the pub- these suits are justified. It ought to be regularized and they lic, and we ought to stop this legalized Even some anti-gun elements of the ought to have a specific obligation. extortion, and we ought to get a fair media oppose these lawsuits. A March And 50 percent is not too much for the share for the tremendous antitrust 1, 1999, editorial in the Boston Globe leagues to contribute. That would break which baseball and football stated that ‘‘. . . guns should be con- leave the owners with 25 percent and enjoy. trolled by the legislative process rather would still leave the public with 25 per- than through litigation.’’ ‘‘gun makers cent. One of the prospective cosponsors By Mr. SMITH of New Hamp- may be responsible for flaws in their dropped off the bill because he does not shire: products that lead to injury or death,’’ want to be associated with even 25 per- S. 954. A bill to amend title 18, the editorial continued. ‘‘Making man- cent for the public. But I suggest when United States Code, to protect citizens’ ufacturers liable for the actions of oth- the raiders—I am not talking about the rights under the second amendment to ers,’’ the editorial concluded, ‘‘. . . Oakland Raiders; I am talking about obtain firearms for legal use, and for stretches the boundaries beyond rea- the sports franchise raiders coming to other purposes; to the Committee on sonable limits . . . .’’ his State, which I shall not name—go the Judiciary. Mr. President, I believe that fairness after his baseball team and go after his SECOND AMENDMENT PRESERVATION ACT OF 1999 requires that a unit of government football team, watch the scurrying Mr. SMITH of New Hampshire. Mr. that undertakes an unsuccessful ‘‘fish- around to pay a lot more than 25 per- President, I rise today to introduce the ing expedition’’ against a firearms cent unless there is some leveraging Second Amendment Preservation Act manufacturer, importer or dealer and some compulsion. of 1999. should bear the costs of that business Baseball and football are not going to Mr. President, my bill is intended to in defending itself against such an friv- face up to a fair allocation of funds if address the lawsuits that have been olous and unwarranted civil action. they are left to their own devices. But filed by various municipal govern- Fairness also requires that taxpayers the Congress of the United States does ments against firearms manufacturers. not be required to pay millions of dol- have control of the antitrust exemp- These lawsuits are premised on the lars to wealthy attorneys, out of S4676 CONGRESSIONAL RECORD — SENATE May 4, 1999 awards that are intended, at least in local governments are large and relatively curtail the sale or availability of firearms part, to benefit the victims of crime. wealthy entities that are able to spend large for legal purposes or in any other proceeding The second amendment to the Con- amounts of taxpayers’ dollars on a war of at- that the Constitution does not confer on stitution of the United States requires trition with small businesses; Congress the power to enact this section, the (5) fairness requires that— decision shall be directly appealable as of that Congress must respond to actions (A) a unit of government that undertakes right to the Supreme Court.’’. that are intended to, and that would an unsuccessful ‘‘fishing expedition’’ against (b) CONFORMING AMENDMENT.—The analysis have the effect of, nullifying that pro- a firearm manufacturer, importer, or dealer for chapter 44 of title 18 is amended by in- vision of the Bill of Rights. Congress bear the cost of defending against its frivo- serting after the item relating to section has the power under the second amend- lous and unwarranted civil action; and 926A the following: ment, and under the Commerce Clause, (B) taxpayers not be required to pay mil- ‘‘926B. Rules governing actions brought to to take appropriate action to protect lions of dollars to wealthy attorneys, out of curtail the sale or availability the rights of citizens to obtain and own awards that are intended, at least in part, to of firearms for legal purposes.’’. benefit the victims of crime; firearms. (c) EFFECTIVE DATE.—The amendment (6) the Second Amendment to the Constitu- made by subsection (a)— Onr action that Congress may take, tion requires that Congress respond to ac- (1) takes effect on the date of enactment of Mr. President, is to provide protection tions that are intended to, and that would this Act; and from excessive and unwarranted legal have the effect of, nullifying that provision (2) applies to any action pending or on ap- fees. The Second Amendment Preserva- of the Bill of Rights; peal on that date or brought after that date. tion Act, which I am introducing (7) Congress has power under the Second today, provides that protection. My Amendment and under the Commerce Clause By Mr. WARNER (for himself, bill limits attorneys’ fees to plaintiffs to take appropriate action to protect the Mr. ROBB, and Mr. MCCONNELL): right of citizens to obtain and own firearms; S. 955. A bill to allow the National in civil lawsuits that seek ‘‘to hold a and firearms manufacturer, importer, or Park Service to acquire certain land (8) one appropriate action that Congress for addition to the Wilderness Battle- dealer liable for damages caused by the may take is to provide protection from ex- unlawful or tortuous use of a firearm cessive and unwarranted legal fees. field in Virginia, as previously author- by a person not employed by or affili- SEC. 3. RULES GOVERNING ACTIONS BROUGHT ized by law, by purchase or exchange as ated with the manufacturer, dealer, or TO CURTAIL THE SALE OR AVAIL- well as by donation; to the Committee ABILITY OF FIREARMS FOR LEGAL on Energy and Natural Resources. importer.’’ Under my bill, those fees PURPOSES. LONGSTREET’S FLANK ATTACK are limited to the lesser of $150 per (a) IN GENERAL.—Chapter 44 of title 18, hour, plus expenses, or 10% of the United States Code, is amended by adding at Mr. WARNER. Mr. President, I rise amount that the plaintiff is awarded in the end the following: today to introduce legislation which the action. ‘‘§ 926B. Rules governing actions brought to will preserve a site of great historical Further, my bill provides that in law- curtail the sale or availability of firearms importance. The legacy of Civil War suits in which the defendant is found for legal purposes battlefields must be perpetuated, not by the court to be ‘‘not wholly or pri- ‘‘(a) DEFINITIONS.—In this section, the term only to commemorate those who lost marily liable for the damages sought,’’ ‘action brought to curtail the sale or avail- their lives in this tragic epoch, but also ability of firearms for legal purposes’ means the plaintiff must reimburse the de- to consecrate land upon which some a civil action brought in Federal or State our country’s finest strategic maneu- fendant for reasonable attorney’s fees court that— and costs. ‘‘(1) has as a defendant a firearms manufac- vers occurred. On the hallowed land of Finally, Mr. President, my bill pro- turer, importer, or dealer in firearms; Wilderness, Virginia occurred one of vides that if a court strikes down this ‘‘(2) expressly or by implication requests the greatest tactical stratagems in legislation as unconstitutional, the de- actual damages, punitive damages, or any military history. Snatching the initia- cision is directly appealable as of right other form of damages in excess of the lesser tive to turn the tide of battle, Lt. Gen- to the Supreme Court of the United of— eral James A. Longstreet, under the ‘‘(A) $1,000,000; or States. command of General Robert E. Lee, ‘‘(B) 50 percent of the net assets of any forced back Union forces directed by Mr. President, I ask unanimous con- such defendant; and sent that the text of my bill, the Sec- ‘‘(3) seeks, in whole or in part, to hold a General Ulysses S. Grant, in an ad- ond Amendment Preservation Act, be firearms manufacturer, importer, or dealer vance known as ‘‘Longstreet’s Flank printed in the RECORD. liable for damages caused by the unlawful or Attack’’. There being no objection, the bill was tortious use of a firearm by a person not em- Mr. President, this legislation will ordered to be printed in the RECORD, as ployed by or affiliated with the manufac- allow the Park Service to acquire this follows: turer, dealer, or importer. stretch of land, which will serve to ‘‘(b) LIMITATION ON ATTORNEY’S FEES S. 954 ‘‘complete’’ Wilderness Battlefield. The AWARDED TO PLAINTIFF.—In a civil action legacy of the Civil War is far-reaching. Be it enacted by the Senate and House of Rep- brought to curtail the sale or availability of resentatives of the United States of America in firearms for legal purposes, notwithstanding A war which wrought such destruction Congress assembled, any other provision of law or any agreement has been the source of much fascina- SECTION 1. SHORT TITLE. between any persons to the contrary, tion for scholars and amateur histo- This Act may be cited as the ‘‘Second amounts paid in plaintiff’s attorney’s fees in rians. The Battle of Wilderness is leg- Amendment Preservation Act of 1999’’. connection with the settlement or adjudica- endary for the tactical skills employed tion of the action shall not exceed the lesser SEC. 2. FINDINGS. and the caliber of the soldiers who of— fought. There, among the tangled for- Congress finds that— ‘‘(1) an amount equal to $150 per hour for (1) a number of State and local govern- each hour spent productively, plus actual ex- ests and twisted undergrowth, the ments have commenced civil actions, or are penses incurred by the attorney in connec- Union Army, numerically superior and considering commencing civil actions, tion with the action; or well supplied, were forced into con- against manufacturers, importers, and deal- ‘‘(2) an amount equal to 10 percent of the frontation with General Lee’s hard ers of firearms based on the unlawful use of amount that the plaintiff receives under the scrabble Confederate troops. It would the firearms by a purchaser or other person; action. (2) in at least some cases, the intent in be one of the last battles in which ‘‘(c) ATTORNEY’S FEES FOR THE DEFEND- Lee’s incomparable martial machine bringing the action is to subject manufactur- ANT.—In a civil action brought to curtail the ers, importers, and dealers to legal costs sale or availability of firearms for legal pur- would force Grant’s Army of the Poto- that are so onerous that the manufacturers, poses, if the court finds that the defendant is mac to withdraw. It is also the site of importers, and dealers may not be able de- not wholly or primarily liable for the dam- the wounding of Gen. Longstreet, who, fend themselves, or indeed be able to remain ages sought, the court shall require the like General Stonewall Jackson, was in business; plaintiff to reimburse the defendant for rea- wounded by friendly fire. Though Long- (3) a majority of manufacturers, importers, sonable attorney’s fees and court costs, as street’s injury was not mortal, the ge- and dealers of firearms are small, privately determined by the court, incurred in liti- nius of the cadre of officers under the owned businesses that cannot afford to bear gating the action, unless the court finds that the legal costs of defending themselves in a special circumstances make such a reim- command of Lee dwindled. Thus would large number of judicial forums; bursement unjust. begin the twilight of the Confederacy. (4) compared to most manufacturers, im- ‘‘(d) POWER OF CONGRESS.—If any court Legislation passed in the 102nd Con- porters, and dealers of firearms, States and renders a decision in an action brought to gress would have allowed the Park May 4, 1999 CONGRESSIONAL RECORD — SENATE S4677 Service to acquire this land by dona- 12,000 infants are born each year in the ommended that the first hearing tion. Despite numerous efforts, the United States with some form of hear- screening be carried out before an in- Park Service has been unable to ac- ing impairment. fant is three months old in order to en- complish this. The legislation at hand In recent years, scientists have sure that treatment can begin before would amend Public Law 102–541 to stressed that the first years of a child’s six months of age. The Panel also rec- allow the Park Service to procure the life are crucial to their future develop- ommended that the most comprehen- land by purchase or exchange as well as ment. This makes early detection and sive and effective way of ensuring donation. The heritage and history intervention of hearing loss a necessity screening before an infant is six which dwell amongst the interlaced un- if we are to ensure that all our children months old is to have newborns dergrowth of this land deserve our rec- get the strong start they deserve. Spe- screened before they sent home from ognition. I look forward to the swift cialists in speech and language devel- the hospital. But a 1998 report by the passage of this bill. opment believe that the crucial period Commission on Education of the Deaf Mr. President, I ask unanimous con- of speech and communication in a estimated that the average age at sent that the text of the bill be printed child’s life can begin as early as six which a child with congenital hearing in the RECORD. months of age. Unfortunately, though loss was identified in the United States There being no objection, the bill was the average age of diagnosis of hearing was a 21⁄2 to 3 years old, with many ordered to be printed in the RECORD, as loss is close to three years of age. children not being identified until five follows: The ability to hear is a major ele- or six years old. S. 955 ment of one’s ability to read and com- It is time to move beyond the rec- Be it enacted by the Senate and House of Rep- municate. To the extent that we can ommendations and achieve the goal of resentatives of the United States of America in help infants and young children over- universal screening. In addition to the Congress assembled, come disabilities detected early in life, nine states that require screening, the SECTION 1. ADDITION TO WILDERNESS BATTLE- we will improve their ability to func- Bureau of Maternal and Child Health, FIELD, VIRGINIA. tion in society, receive an education, in conjunction with the Centers for (a) REMOVAL OF CONDITION ON BATTLEFIELD obtain meaningful employment, and Disease Control, is helping 17 states ADDITION.—Section 2(a)(2) of Public Law 102– enjoy a better quality of life. Without commit to achieving universal hearing 541 (16 U.S.C. 525k note; 106 Stat. 3565) is screening by the year 2000. This plan amended by striking ‘‘: Provided,’’ and all early diagnosis and intervention, these that follows through ‘‘Interior’’. children are behind the learning will lead to the screening of more than (b) AUTHORIZED METHODS OF ACQUISITION.— curve—literally—before they have even one million newborns a year, but it (1) ACQUISITION OF CERTAIN LANDS BY DONA- started. They should not be denied a still leaves more than half the states TION.—Section 3(a) of Public Law 101–214 (16 strong start in life simply for the lack without universal screening programs. U.S.C. 425l(a)) is amended by adding at the of a simple screening test. The purpose of the bill I am intro- end the following new sentence: ‘‘However, There are many causes of hearing ducing today is to provide the addi- the lands designated ‘P04–04’ on the map re- tional assistance necessary to help all ferred to in section 2(a) numbered 326–40072E/ loss, and in many states a newborn child is screened only if the physician the states in implementing programs 89/A and dated September 1990 may be ac- to ensure that all our newborns are quired only by donation.’’. is aware of some factor that puts that (2) REMOVAL OF RESTRICTION ON ACQUISITION baby in a risk category. The good news tested and to ensure that those identi- OF ADDITION.—Section 2 of Public Law 102–541 is that over 550 hospitals in 46 states fied with a hearing impairment get (16 U.S.C. 525k note; 106 Stat. 3565) is amend- operate universal newborn hearing help. Specifically, the bill: ed by striking subsection (b). screening programs. Nine states—Ha- (1) Authorizes $5 million in FY 2000 (c) TECHNICAL CORRECTION.—Section 2(a) of and $8 million in FY 2001 for the Sec- waii, Rhode Island, Mississippi, Con- Public Law 101–214 (16 U.S.C. 425k(a)) is retary of Health and Human Services necticut, Colorado, Utah, Virginia, amended by striking ‘‘Spotslyvania’’ and in- to work with the states to develop West Virginia, and Massachusetts— serting ‘‘Spotsylvania’’. early detection, diagnosis and inter- have passed legislation requiring uni- vention networks for the purpose of de- By Ms. SNOWE (for herself, Mr. versal newborn hearing screening. Ha- veloping models to ensure testing and HARKIN, and Mr. FRIST): waii, Mississippi, Rhode Island, Utah, S. 956. A bill to establish programs to collect data; and Wyoming have statewide early (2) Authorizes $5 million in FY 2000 regarding early detection, diagnosis, hearing detection and intervention pro- and $7 million in FY 2001 for the Cen- and interventions for newborns and in- grams. And scientists across the coun- ters for Disease Control to provide fants with hearing loss; to the Com- try are developing and implementing technical assistance to State agencies mittee on Health, Education, Labor, model rural-based infant hearing, and to conduct applied research related and Pensions. screening, follow-up, and intervention to infant hearing detection, diagnosis NEWBORN AND INFANT HEARING SCREENING AND programs for children at risk for hear- and treatment/intervention; and INTERVENTION ACT OF 1999 ing and language disabilities. (3) Authorizes the National Institutes ∑ Ms. SNOWE. Mr. President, I rise The bad news is that, unfortunately, of Health to carry out research on the today to introduce the Newborn and In- only about 20 percent of the babies in efficacy of new screening techniques fant Hearing Screening and Interven- this country are born in hospitals with and technology. tion Act of 1999. This bill is a com- universal newborn hearing screening A baby born today will be part of this panion bill to H.R. 1193, introduced in programs, and more than 85 percent of country’s future in the 21st century. the House by Representative JIM all hospitals do not do a hearing Surely we owe it to that child to give WALSH. I am pleased to be joined again screening before sending the baby them a strong start on that future by this year by my colleague from Iowa, home. ensuring that if they do have a hearing Senator HARKIN, who has long been a Universal screening is not a new idea. impairment it is diagnosed and treat- champion of the hearing impaired, and As early as 1965, the Advisory Com- ment started well before their first my colleague from Tennessee, Senator mittee on Education of the Deaf, in a year of life is completed. I urge my col- FRIST. report of the Secretary of Health, Edu- leagues to join me, Senator HARKIN, We usually associate hearing prob- cation and Welfare, recommended the and Senator FRIST in supporting the lems with the aging process, and it is development and nationwide imple- Newborn and Infant Hearing Screening true that the largest group of Ameri- mentation of ‘‘universally applied pro- and Intervention Act of 1999. cans suffering from hearing impair- cedures for early identification.’’ In ∑ Mr. HARKIN. Mr. President, I am ment are those in the 65 to 75 year age 1989, former Surgeon General C. Ever- pleased to introduce, along with my range. But at the same time, approxi- ett Koop used the year 2000 as a goal colleagues, Senator SNOWE and Senator mately 1.5 to 3 out of every 1000 chil- for identifying 90 percent of children FRIST, the Newborn and Infant Hearing dren—or as many as 33 children per with significant hearing loss before Screening and Intervention Act of 1999. day—are born with significant hearing they are one year old. Tne Newborn and Infant Hearing problems. According to the National In 1997, an expert panel at the Na- Screening and Intervention Act would Institute on Deafness and Other Com- tional Institute of Deafness and Other help States establish programs to de- munication Disorders, as many as Communication Disorders rec- tect and diagnose hearing loss in every S4678 CONGRESSIONAL RECORD — SENATE May 4, 1999 newborn child and to promote appro- were available for people who were Patton, the way we won these cases priate treatment and intervention for deaf. I remember the frustrations and was not by spending all of our money, newborns with hearing loss. The Act challenges Frank faced, and I told my- but by making the other S.O.B. spend would fund research by the National self early on that I would do all I could all his.’’ Institutes of Health to determine the to break down the barriers in our soci- This systematic abuse of secrecy or- best detection, diagnostic, treatment ety that prevented people who were ders is one of the reasons that it took and intervention techniques and tech- deaf from reaching their potential. By more than four decades of tobacco liti- nologies. supporting early screening, diagnosis, gation to achieve a reasonable settle- Every year, approximately 12,000 and treatment programs, this act ment. In fact, Congress and the public’s children in the United States are born would go a long way toward accom- shift in recent years against Big To- with a hearing impairment. Most of plishing that goal. bacco resulted in large part from dis- them will not be diagnosed as hearing- I would like to thank Senators closure of materials that had been con- impaired until after their second birth- SNOWE and FRIST for their hard work cealed under secrecy orders, including day. The consequences of not detecting and support of this act, and I hope our materials regarding youth targeting early hearing impairment are signifi- colleagues will join us in this worthy and nicotine manipulation. cant, but easily avoidable. effort.∑ The problem of excessive secrecy or- Late detection means that crucial ders in cases involving public health years of stimulating the brain’s hear- By Mr. KOHL: and safety has been apparent for years. ing centers are lost. It may delay S. 957. A bill to amend chapter 111 of The Judiciary Committee first held speech and language development. De- title 28, United States Code, relating to hearings on this issue in 1990 and again layed language development can retard protective orders, sealing of cases, dis- in 1994. In 1990, Arthur Bryant, the ex- a child’s educational progress, mini- closures of discovery information in ecutive director of Trial Lawyers for mize his or her socialization skills, and civil actions, and for other purposes, to Public Justice, told us, ‘‘The one thing as a result, destroy his or her self-es- the Committee on the Judiciary. we learned . . . is that this problem is teem and confidence. On top of all that, SUNSHINE IN LITIGATION ACT OF 1999 far more egregious than we ever imag- many children are diagnosed incor- Mr. KOHL. Mr. President, I rise ined. It goes the length and depth of rectly as having behavioral or cog- today to offer the Sunshine in Litiga- this country, and the frank truth is nitive problems, simply because of tion Act of 1999, a measure that ad- that much of civil litigation in this their undetected hearing loss. dresses the growing abuse of secrecy country is taking place in secret.’’ In 1988, the Commission on Education orders issued by our Federal courts. All Four years later, attorney Gerry of the Deaf reported to Congress that too often our Federal courts allow vital Spence told us about 19 cases in which early detection, diagnosis and treat- information that is discovered in liti- he had been involved where his clients ment were essential to improving the gation—and which directly bears on had been required to sign secrecy status of education for people who are public health and safety—to be covered agreements. They included cases in- deaf in the United States. Based on up, to be shielded from mothers, fa- volving defects in a hormonal preg- that report and others, in 1991, when I thers and children whose lives are po- nancy test that caused severe birth de- was chair of the Labor-HHS Sub- tentially at stake, and from the public fects, a defective braking system on a committee on Appropriations, we urged officials we have asked to protect our steamroller, and an improperly manu- the National Institute on Deafness and health and safety. factured tire rim. Other Communication Deisorders— All this happens because of the use of But that’s not surprising, because in- NIDCD—to determine the most effec- so-called ‘‘protective orders’’—really dividual examples of this problem tive means of identifying hearing im- gag orders issued by courts—that are abound. For over a decade, Miracle pairments in newborn infants. In 1993, designed to keep information discov- Recreation, a U.S. playground equip- the Labor-HHS Subcommittee sup- ered in the course of litigation secret ment company, marketed a merry-go- ported NIDCD’s efforts to sponsor a and undisclosed. Typically, injured vic- round that caused serious injury to consensus development conference on tims agree to a defendant’s request to scores of small children—including sev- early identification of hearing impair- keep lawsuit information secret. They ered fingers and feet. Lawsuits brought ment in infants and children. And in agree because defendants threaten against the manufacturer were con- 1998, the Subcommittee encouraged that, without secrecy, they will fight fidentially settled, preventing the pub- NIDCD to pursue research on interven- every document requested and will lic and the Consumer Products Safety tion strategies for infants with hearing refuse to agree to a settlement. Vic- Commission from learning about the impairments, and encouraged HRSA to tims cannot afford to take such hazard. It took more than a decade for provide states with the results of the chances. And while courts in these sit- regulators to discover the danger and NIH study on the most effective forms uations actually have the legal author- for the company to recall the merry- of screening infants for hearing loss. ity to deny requests for secrecy, typi- go-round. Mr. President, the Act we are intro- cally they do not—because both sides There are yet more cases like these. ducing today builds on these earlier ef- have agreed, and judges have other In 1973, GM allegedly began marketing forts. The Act would help states de- matters to which they prefer to attend. vehicles with dangerously placed fuel velop programs that many of them al- So judges are regularly and frequently tanks that tended to rupture, burn, and ready are working on; it would not im- entering these protective orders, using explode on impact more frequently pose a single federal mandate. At least the power of the Federal government than regular tanks. Soon after these eight states already have mandatory to keep people in the dark about the vehicles hit the American road, tragic testing programs; many others have dangers they face. accidents began occurring, and law- legislation pending to establish such Perhaps the worst offenders are the suits were filed. More than 150 lawsuits programs. Other states have achieved tobacco companies. They have used were settled confidentially by GM. For universal newborn testing voluntarily. protective orders not only to keep in- years this secrecy prevented the public These programs can work; they deserve criminating documents away from pub- from learning of the alleged dangers federal help. lic view, but also to drive up litigation presented by these vehicles—millions One of the highlights of my Congres- costs by preventing document sharing, of which are still on the road. It wasn’t sional career, indeed, of my life, has effectively forcing every successive until a 1993 trail that the public been working on policies and laws to plaintiff to ‘‘reinvent the wheel.’’ One learned about sidesaddle gas tanks and ensure that people with disabilities tobacco industry official even boasted, some GM crash test data that dem- have an equal opportunity to succeed ‘‘The aggressive posture we have taken onstrated these dangers. in our society. This is especially mean- regarding depositions and discovery in The thrust of our legislation is ingful to me, because my brother general continues to make these cases straightforward. In cases affecting pub- Frank became deaf as a child. extremely burdensome and expensive lic health and safety, Federal courts I watched Frank grow up, and I saw for plaintiffs’ lawyers, particularly sole would be required to apply a balancing how few options and support services practitioners. To paraphrase General test: they could permit secrecy only if May 4, 1999 CONGRESSIONAL RECORD — SENATE S4679 the need for privacy outweighs the pub- Code, is amended by adding at the end the ment of financial instruments under lic need to know about potential health following new section: the bankruptcy code and the banking or safety hazards. Moreover, all ‘‘§ 1660. Protective orders and sealing of insolvency laws. courts—both Federal and state—would cases and settlements relating to public The legislation that I am introducing be prohibited from issuing protective health or safety is based largely on the recommenda- orders that prevent disclosure to regu- ‘‘(a)(1) A court shall enter an order under tions made in March of 1998 by the latory agencies. In this way, our bill rule 26(c) of the Federal Rules of Civil Proce- President’s Working Group on Finan- dure restricting the disclosure of informa- will bring crucial information out of tion obtained through discovery, an order cial Markets. This same working group the darkness and into the light. approving a settlement agreement that reiterated on April 29th of this year, in Although this law may result in would restrict the disclosure of such infor- their report on hedge fund activity, some small additional burden on mation, or an order restricting access to that Congress should pass this legisla- judges, a little extra work seems a tiny court records in a civil case only after mak- tion. However, in an effort to keep this price to pay to protect blameless peo- ing particularized findings of fact that— legislation free and separate from the ple from danger. Every day, in the ‘‘(A) such order would not restrict the dis- ongoing bankruptcy debate, I am only course of litigation, judges make tough closure of information which is relevant to introducing those portions of the pro- the protection of public health or safety; or calls about how to construe the public posal which amend banking law. I will interest and interpret other laws that ‘‘(B)(i) the public interest in disclosure of potential health or safety hazards is clearly be chairing a hearing on this legisla- Congress passes. I am confident that outweighed by a specific and substantial in- tion on the Financial Institutions Sub- the courts will administer this law terest in maintaining the confidentiality of committee tomorrow morning. fairly and sensibly. If this requires the information or records in question; and Since the adoption of the Bankruptcy extra work, then that work is well ‘‘(ii) the requested protective order is no Code in 1978, Congress has recognized worth the effort. After all, no one ar- broader than necessary to protect the pri- that certain financial market trans- gues that spoiled meat should be al- vacy interest asserted. actions qualify for different treatment ‘‘(2) No order entered in accordance with lowed on the market because stricter in the event that one of the parties be- regulations mean more work for FDA paragraph (1) (other than an order approving a settlement agreement) shall continue in ef- comes insolvent. Specifically, many fi- meat inspectors. fect after the entry of final judgment, unless nancial instruments are exempted from Having said all this, we must in fair- at or after such entry the court makes a sep- the automatic stay that is imposed on ness recognize that there is another arate particularized finding of fact that the general commercial contracts during a side to this problem. Privacy is a cher- requirements of paragraph (1) (A) or (B) have bankruptcy proceeding. This is largely ished possession, and business informa- been met. due to the fact that the Federal De- tion is a cherished commodity. For this ‘‘(b) The party who is the proponent for the posit Insurance Corporation (FDIC), by entry of an order, as provided under this sec- reason, the courts must, in some cases, law, becomes a trustee during any keep trade secrets and other business tion, shall have the burden of proof in obtaining such an order. bankruptcy proceeding. information confidential. ‘‘(c)(1) No court of the United States may Mr. President, the ability to termi- But, in my opinion, today’s balance approve or enforce any provision of an agree- nate, or close out and ‘‘net’’ financial of these interests is entirely inad- ment between or among parties to a civil ac- products is an essential and vital part equate. Our legislation will ensure that tion, or approve or enforce an order subject of our capital markets. Congress has courts do not carelessly and automati- to subsection (a)(1), that prohibits or other- recognized that participants in swap cally sanction secrecy when the health wise restricts a party from disclosing any in- transactions should have the ability to formation relevant to such civil action to and safety of the American public are terminate and ‘‘net’’ their swap agree- at stake. At the same time, this bill any Federal or State agency with authority to enforce laws regulating an activity relat- ments. Simply put, netting means that will allow defendants to obtain secrecy ing to such information. money payments or other obligations orders when the need for privacy is sig- ‘‘(2) Any such information disclosed to a owed between parties with multiple nificant and substantial. Federal or State agency shall be confidential contracts can be offset against each Indeed, this proposal would simply to the extent provided by law.’’. other, and one net amount can be paid (c) TECHNICAL AND CONFORMING AMEND- codify the practices of the most by one party to the other in settle- thoughtful Federal judges. As Justice MENT.—The table of sections for chapter 111 of title 28, United States Code, is amended by ment. Cross-product netting means Breyer has said, ‘‘no court can or that parties can net out different kinds should stand silent when they see an adding after the item relating to section 1659 the following: of financial contracts, such as swap immediate, serious risk to . . . health ‘‘1660. Protective orders and sealing of cases agreements being offset with repur- or safety.’’ Virtually identical legisla- and settlements relating to chase agreements. By eliminating the tion received 49 votes on the floor in public health or safety.’’. need for large fund transfers for each 1994 and was passed with bipartisan (d) EFFECTIVE DATE.—The amendments transaction in favor of a smaller net support out of the Judiciary Com- made by this section shall take effect 30 days payment, netting allows parties to after the date of enactment of this Act and mittee in 1996. enter into multiple-transaction rela- Who knows what other hazards are shall apply only to orders entered in civil ac- tionships with reduced credit and li- hidden behind courthouse doors? Do we tions or agreements entered into on or after quidity exposures to a counterparty’s want to wait four decades for the next such date. insolvency. ‘‘tobacco’’ to be disclosed? We need to By Mr. BENNETT: Many parties involved in financial take action to prevent the next threat S. 958. A bill to amend certain bank- transactions have entered into them before it’s too late. ing and securities laws with respect to for hedging purposes. My legislation Mr. President, I ask unanimous con- financial contracts; to the Committee encourages this type of behavior by sent that the text of the bill be printed on Banking, Housing, and Urban Af- clarifying that cross-product close-out in the RECORD. fairs. netting should be permitted for posi- There being no objection, the bill was FINANCIAL INSTITUTIONS INSOLVENCY tions in securities contracts, com- ordered to be printed in the RECORD, as IMPROVEMENT ACT OF 1999 modity contracts, forward contracts, follows: Mr. BENNETT. Mr. President, I rise repurchase agreements and swaps. S. 957 today to introduce the Financial Insti- For example, in certain cases, the Be it enacted by the Senate and House of tutions Insolvency Improvement Act of protections for financial contracts in Representatives of the United States of America in Congress assembled, 1999. Recognizing that the changes to the bank insolvency laws have not kept SECTION 1. PROTECTIVE ORDERS AND SEALING our Nations’ banking laws have not pace with market evolution. Assume, OF CASES AND SETTLEMENTS RE- kept pace with changes in our capital for example, that Party A and Party B LATING TO PUBLIC HEALTH OR markets, this bill would strengthen the have two outstanding equity swaps in SAFETY. laws that enforce and protect certain which the payments are calculated on (a) SHORT TITLE.—This section may be financial agreements and transactions the basis of an equity securities index. cited as the ‘‘Sunshine in Litigation Act of 1999’’. in the event that one of the parties in- If Party A enter insolvency, it is not (b) PROTECTIVE ORDERS AND SEALING OF volved becomes insolvent. This legisla- entirely clear whether Party B’s con- CASES.—Chapter 111 of title 28, United States tion would also harmonize the treat- tractual rights to close-out and net S4680 CONGRESSIONAL RECORD — SENATE May 4, 1999 would be protected by the current [Ms. LANDRIEU] was added as a cospon- vania [Mr. SANTORUM] was added as a ‘‘swap agreement’’ definition in the sor of S. 434, a bill to amend the Inter- cosponsor of S. 918, A bill to authorize Federal Deposit Insurance Act. If both nal Revenue Code of 1986 to simplify the Small Business Administration to of the parties are ‘‘financial institu- the method of payment of taxes on dis- provide financial and business develop- tions’’ under the Federal Deposit Insur- tilled spirits. ment assistance to military reservists’ ance Corporation Improvement Act or S. 440 small business, and for other purposes. the Federal Reserve Board’s Regula- At the request of Mr. DURBIN, his SENATE CONCURRENT RESOLUTION 22 tion EE and the swap agreements are name was added as a cosponsor of S. At the request of Mr. DODD, the name ‘‘netting contracts,’’ then Party B 440, a bill to provide support for certain of the Senator from North Dakota [Mr. might (although it is not entirely institutes and schools. DORGAN] was added as a cosponsor of clear) be able to exercise its close-out, S. 505 Senate Concurrent Resolution 22, a netting and foreclosure rights. At the request of Mr. GRASSLEY, the concurrent resolution expressing the However, if one of the parties is not names of the Senator from South Da- sense of the Congress with respect to a ‘‘financial institution’’ or the con- kota [Mr. DASCHLE] and the Senator promoting coverage of individuals tract does not constitute a ‘‘netting from Montana [Mr. BAUCUS] were added under long-term care insurance. contract’’ (for example, because it is as cosponsors of S. 505, a bill to give SENATE RESOLUTION 34 governed by the laws of the United gifted and talented students the oppor- At the request of Mr. TORRICELLI, the Kingdom), then Party B could be sub- tunity to develop their capabilities. name of the Senator from Idaho [Mr. ject, among other things, to the risk of S. 512 CRAPO] was added as a cosponsor of ‘‘cherry-picking’’—the risk that Party At the request of Mr. GORTON, the Senate Resolution 34, a resolution des- A’s receiver would assume responsi- name of the Senator from Connecticut ignating the week beginning April 30, bility only for the swap that currently [Mr. DODD] was added as a cosponsor of 1999, as ‘‘National Youth Fitness favors Party A, leaving Party B with a S. 512, a bill to amend the Public Week.’’ potentially sizable claim against Party Health Service Act to provide for the SENATE RESOLUTION 59 A (which would be undersecured be- expansion, intensification, and coordi- At the request of Mr. LAUTENBERG, cause of the impairment of netting) nation of the activities of the Depart- the name of the Senator from Con- and the risk that its foreclosure on any ment of Health and Human Services necticut [Mr. DODD] was added as a co- collateral would be blocked indefi- with respect to research on autism. sponsor of Senate Resolution 59, a reso- nitely. This could impair Party B’s S. 514 lution designating both July 2, 1999, creditworthiness, which in turn could At the request of Mr. COCHRAN, the and July 2, 2000, as ‘‘National Literacy lead to its default to its name of the Senator from Montana Day.’’ counterparties. It is this sort of ‘‘chain [Mr. BAUCUS] was added as a cosponsor SENATE RESOLUTION 71 reaction’’ that can exacerbate systemic of S. 514, a bill to improve the National At the request of Mr. ABRAHAM, the risk in the financial markets. Writing Project. name of the Senator from Louisiana Finally, Mr. President, it is impor- S. 625 [Mr. BREAUX] was added as a cosponsor tant to recognize that the framework At the request of Mr. GRASSLEY, the of Senate Resolution 71, a resolution for the bill I am introducing was con- name of the Senator from Virginia [Mr. expressing the sense of the Senate retained in S. 1301, the bankruptcy bill ROBB] was added as a cosponsor of S. jecting a tax increase on investment introduced by Senator GRASSLEY last 625, a bill to amend title 11, United income of certain associations. year which passed the Senate by a vote States Code, and for other purposes. f of 97–1. S. 710 f At the request of Mr. LOTT, the name SENATE RESOLUTION 93—TO REC- of the Senator from Louisiana [Ms. OGNIZE LINCOLN PARK HIGH ADDITIONAL COSPONSORS LANDRIEU] was added as a cosponsor of SCHOOL FOR ITS EDUCATIONAL S. 341 S. 710, a bill to authorize the feasibility EXCELLENCE, CONGRATULATING At the request of Mr. CRAIG, the study on the preservation of certain THE FACULTY AND STAFF OF name of the Senator from New Hamp- Civil War battlefields along the Vicks- LINCOLN PARK HIGH SCHOOL shire [Mr. SMITH] was added as a co- burg Campaign Trail. FOR THEIR EFFORTS, AND EN- sponsor of S. 341, a bill to amend the S. 774 COURAGING THE FACULTY, Internal Revenue Code of 1986 to in- At the request of Mr. BREAUX, the STAFF, AND STUDENTS OF LIN- crease the amount allowable for quali- name of the Senator from Colorado COLN PARK HIGH SCHOOL TO fied adoption expenses, to permanently [Mr. CAMPBELL] was added as a cospon- CONTINUE THEIR GOOD WORK extend the credit for adoption ex- sor of S. 774, a bill to amend the Inter- INTO THE NEXT MILLENNIUM penses, and to adjust the limitations nal Revenue Code of 1986 to increase Mr. DURBIN (for himself and Mr. on such credit for inflation, and for the deduction for meal and entertain- FITZGERALD) submitted the following other purposes. ment expenses of small businesses. resolution; which was referred to the S. 376 S. 784 Committee on Health, Education, At the request of Mr. BURNS, the At the request of Mr. ROCKEFELLER, Labor, and Pensions: name of the Senator from Maine [Ms. the name of the Senator from Virginia S. RES. 93 SNOWE] was added as a cosponsor of S. [Mr. ROBB] was added as a cosponsor of Whereas 1999 marks the centennial anni- 376, a bill to amend the Communica- S. 784, a bill to establish a demonstra- versary of the establishment of Lincoln Park tions Satellite Act of 1962 to promote tion project to study and provide cov- High School; competition and privatization in sat- erage of routine patient care costs for Whereas Lincoln Park High School is the ellite communications, and for other medicare beneficiaries with cancer who oldest continually operated high school purposes. are enrolled in an approved clinical building in the Chicago Public School Sys- tem; S. 385 trial program. Whereas Lincoln Park High School has At the request of Mr. ENZI, the names S. 882 been a cornerstone of the community and an of the Senator from Tennessee [Mr. At the request of Mr. MURKOWSKI, the educational leader in Chicago for 100 years; FRIST] and the Senator from Kansas name of the Senator from Indiana [Mr. Whereas over 100,000 students have grad- (Mr. BROWNBACK) were added as cospon- LUGAR] was added as a cosponsor of S. uated from Lincoln Park High School, with sors of S. 385, a bill to amend the Occu- 882, a bill to strengthen provisions in 85 percent of those students pursuing higher pational Safety and Health Act of 1970 the Energy Policy Act of 1992 and the education; to further improve the safety and Federal Nonnuclear Energy Research Whereas throughout its existence, Lincoln health of working environments, and and Development Act of 1974 with re- Park High School has created an environment of academic excellence and has pro- for other purposes. spect to potential Climate Change. duced many Illinois State Scholars and Na- S. 434 S. 918 tional Merit Scholars; At the request of Mr. BREAUX, the At the request of Mr. KERRY, the Whereas Lincoln Park High School has name of the Senator from Louisiana name of the Senator from Pennsyl- been a leader in education, being the first May 4, 1999 CONGRESSIONAL RECORD — SENATE S4681 school in Illinois to offer the International from the classes and extracurricular S. RES. 95 Baccalaureate program; activities offered. Additionally, Lin- Whereas the Parachute Test Platoon was Whereas Lincoln Park High School has coln Park High has created an atmos- authorized by the War Department on June been a racially integrated institution phere of academic excellence and pro- 25, 1940, to experiment with the potential use throughout its 100-year history; duced many Illinois State Scholars and of airborne troops; Whereas Lincoln Park High School has Whereas the Parachute Test Platoon was provided stability to the community in National Merit Scholars. It is ranked composed of 48 volunteers that began train- times of need, through World War I, the consistently among the top high ing in July, 1940; Great Depression, World War II, the Korean schools in test scores and other meas- Whereas the Parachute Test Platoon per- conflict, the civil rights struggle, and the ures of academic achievement. The formed the first official Army parachute Vietnam era; and school’s strive to excel is readily ap- jump on August 16, 1940; Whereas Lincoln Park High School is con- parent with the establishment of rig- Whereas the success of the Parachute Test sistently among the top public high schools orous academic programs such as the Platoon led to the formation of a large and in both test scores and other measures of successful airborne contingent serving from academic achievement: Now, therefore, be it ‘‘Access to Excellence’’ magnet pro- World War II until the present; Resolved, That the Senate— gram and the International Bacca- Whereas the 11th, 13th, 17th, 82nd, and 101st (1) recognizes Lincoln Park High School laureate Program, a program available Airborne Divisions and the numerous other for its educational excellence; only in selected schools. The out- regimental and battalion-sized airborne (2) congratulates the faculty and staff of standing academic success of Lincoln units were organized following the success of Lincoln Park High School for their efforts; Park High School prompted President the Parachute Test Platoon; and Ronald Reagan to praise the school Whereas the 501 Parachute Battalion par- (3) encourages the faculty, staff, and stu- publicly in 1984. ticipated successfully and valiantly in dents of Lincoln Park High School to con- achieving victory in World War II; tinue their good work into the next millen- Mr. President, I am pleased to intro- Whereas the airborne achievements during nium. duce this resolution with my colleague, World War II provided the basis for con- SEC. 2. The Secretary of the Senate shall Senator DURBIN, and congratulate the tinuing the development of a diversified transmit a copy of this resolution to the faculty, staff and students who attend force of parachute and air assault troops; principal of Lincoln Park High School. Lincoln Park High School on their Whereas paratroopers, glidermen, and air ∑ Mr. DURBIN. Mr. President, I rise 100th anniversary. They should be very assault troops of the United States were and today to submit a resolution honoring proud of this tremendous accomplish- are proud members of the world’s most ex- the academic achievements and excel- clusive and honorable fraternity, have ment.∑ earned and wear the ‘‘Silver Wings of Cour- lence of Lincoln Park High School in f age’’, have participated in a total of 93 com- Chicago, Illinois, which is celebrating SENATE RESOLUTION 94—COM- bat jumps, and have distinguished them- its 100th anniversary this year. selves in battle by earning 68 Congressional Educating America’s youth is a dif- MENDING THE EFFORTS OF THE medals of Honor, the highest military deco- ficult and often overlooked task. For REVEREND JESSE JACKSON TO ration of the United States, and hundreds of the students of today to become the SECURE THE RELEASE OF THE Distinguished Service Crosses and Silver leaders of tommorrow, education is SOLDIERS HELD BY THE FED- Stars; critical. It is the foundation on which a ERAL REPUBLIC OF YUGOSLAVIA Whereas these airborne forces have performed in important military and peace- student builds his or her future. With Mr. BYRD (for himself and Mr. keeping operations, wherever needed, in our ever changing world, education is GRAMM) submitted the following reso- World War II, Korea, Vietnam, Lebanon, the key that unlocks the door of oppor- lution; which was ordered held at the Sinai, the Dominican Republic, Panama, So- tunity. Therefore, it is an honor to ac- desk until the close of business on May malia, Haiti, and Bosnia; and knowledge this institution for its great 4, 1999: Whereas the Senate joins together with the airborne community to celebrate August 16, service over the last century. S. RES. 94 1999, as ‘‘National Airborne Day’’: Now, Since 1899, Lincoln Park High School Whereas on March 31, 1999, Staff Sergeant has been an educational leader in Chi- therefore, be it Andrew A. Ramirez, Staff Sergeant Chris- Resolved, That the Senate— cago, maintaining a standard of excel- topher J. Stone, and Specialist Steven M. (1) designates August 16, 1999, as ‘‘National lence that should be looked upon as a Gonzales were taken prisoner by the armed Airborne Day’’; and model. Furthermore, Lincoln Park forces of the Federal Republic of Yugoslavia (2) requests that the President issue a High School has been consistently while on patrol along the Macedonia-Yugo- proclamation calling on Federal, State, and among the top public high schools in slav border; local administrators and the people of the Whereas Sergeant Ramirez, Sergeant test scores and other measures of United States to observe the day with appro- Stone, and Specialist Gonzales conducted priate programs, ceremonies, and activities. achievement, and has been racially in- themselves throughout their ordeal with dig- tegrated throughout its history. nity, patriotism, and faith; Mr. THURMOND. Mr. President, I am I am pleased to be joined today by Whereas the Reverend Jesse Jackson led a pleased to submit today a Senate reso- my colleague from Illinois, Senator delegation of religious leaders to the Federal lution proclaiming August 16, 1999 as PETER FITZGERALD, in presenting this Republic of Yugoslavia that succeeded in ne- ‘‘National Airborne Day.’’ resolution recognizing Lincoln Park gotiating the release of Sergeant Ramirez, On June 25, 1940, the War Department High School as a model for educational Sergeant Stone, and Specialist Gonzales; and authorized the Parachusete Test Pla- institutions throughout the United Whereas the Reverend Jesse Jackson has toon to experiment with the potential previously succeeded in securing the release States.∑ of hostages held in Syria, Cuba, and Iraq: use of airborne troops. The Parachute ∑ Mr. FITZGERALD. Mr. President, It Now, therefore, be it Test Platoon, which was composed of is my pleasure to recognize an out- Resolved, That— 48 volunteers, performed the first offi- standing public high school in my (1) the Senate commends the Reverend cial army parachute jump on August home state of illinois. I, along with Jesse Jackson for his successful efforts in se- 16, 1940. The success of the Platoon led Senator DICK DURBIN, want to con- curing the release of Sergeant Ramirez, Ser- to the formation of a large and success- gratulate Lincoln Park High School, a geant Stone, and Specialist Gonzales, and for ful airborne contingent that has served public high school in Chicago, Illinois, his leadership and actions arising from his from World War Two unto the present. deep faith in God; and The 82d Airborne Division was the on its 100th anniversary this year. (2) the Senate joins the families of Ser- Throughout its history, Lincoln Park geant Ramirez, Sergeant Stone, and Spe- first airborne division to be organized. High School has been a model for other cialist Gonzales in expressing relief and joy In a two-year period during World War public schools in its single minded pur- at their safe release. Two, the regiments of the 82d served in suit of excellence. I’d like to share with f Italy at Anzio, in France at Normandy, you some of the history of this terrific where I landed with them, and at the school. Lincoln Park is the oldest con- SENATE RESOLUTION 95—DESIG- Battle of the Bulge. tinually-used public high school in the NATING AUGUST 16, 1999, AS ‘‘NA- Other units were subsequently orga- Chicago Public School system. Since TIONAL AIRBORNE DAY’’ nized, including the 101st Airborne, and its opening in 1899, more than 100,000 Mr. THURMOND submitted the fol- since their formation airborne forces students have passed through the doors lowing resolution; which was referred have defended American interests all of Lincoln Park High and benefitted to the Committee on the Judiciary: over the world. They have seen action S4682 CONGRESSIONAL RECORD — SENATE May 4, 1999 in the Caribbean, Asia, Panama, and in nity Reinvestment Act of 1977 and enhance Sec. 142. Interagency data sharing. the Persian Gulf. Airborne units have the ability of depository institutions to meet Sec. 143. Clarification of status of subsidi- earned over 65 Congressional Medals of the capital and credit needs of all citizens aries and affiliates. Honor, our Nation’s highest military and communities, including underserved Sec. 144. Annual GAO report. communities and populations. Subtitle F—Applying the Principles of Na- honor. (c) TABLE OF CONTENTS.—The table of con- These brave soldiers have served our tional Treatment and Equality of Competi- tents for this Act is as follows: tive Opportunity to Foreign Banks and Nation for over sixty years with dis- Sec. 1. Short title; purposes; table of con- Foreign Financial Institutions tinction. This resolution recognize the tents. Sec. 151. Applying the principles of national airborne’s past and present commit- TITLE I—FACILITATING AFFILIATION treatment and equality of comment to our country. It is only fitting AMONG SECURITIES FIRMS, INSUR- petitive opportunity to foreign that we honor them. ANCE COMPANIES, AND DEPOSITORY banks that are financial hold- I urge you to join with me in spon- INSTITUTIONS ing companies. soring ‘‘National Airborne Day’’ to ex- Subtitle A—Affiliations Sec. 152. Applying the principles of national press our support for the members of Sec. 101. Glass-Steagall Act reformed. treatment and equality of com- the airborne community and also our Sec. 102. Activity restrictions applicable to petitive opportunity to foreign bank holding companies which banks and foreign financial in- gratitude for their tireless commit- stitutions that are wholesale fi- ment to our Nation’s defense and are not financial holding companies. nancial institutions. ideals. Sec. 103. Financial holding companies. Sec. 153. Representative offices. f Sec. 104. Operation of State law. Subtitle G—Federal Home Loan Bank Sec. 105. Mutual bank holding companies System Modernization AMENDMENTS SUBMITTED authorized. Sec. 161. Short title. Sec. 106. Prohibition on deposit production Sec. 162. Definitions. offices. Sec. 107. Clarification of branch closure re- Sec. 163. Savings association membership. FINANCIAL SERVICES Sec. 164. Advances to members; collateral. MODERNIZATION ACT OF 1999 quirements. Sec. 108. Amendments relating to limited Sec. 165. Eligibility criteria. purpose banks. Sec. 166. Management of banks. Sec. 109. Reports on ongoing FTC study of Sec. 167. Resolution Funding Corporation. DASCHLE (AND OTHERS) consumer privacy issues. Subtitle H—Direct Activities of Banks AMENDMENT NO. 302 Sec. 110. GAO study of economic impact on Sec. 181. Authority of national banks to un- Mr. SARBANES (for Mr. DASCHLE, community banks and other derwrite certain municipal small financial institutions. for himself, Mr. SARBANES, Mr. DODD, bonds. Subtitle B—Streamlining Supervision of Mr. KERRY, Mr. BRYAN, Mr. REED, Mr. Subtitle I—Deposit Insurance Funds Financial Holding Companies SCHUMER, Mr. BAYH, and Mr. EDWARDS) Sec. 186. Study of safety and soundness of proposed an amendment to the bill (S. Sec. 111. Streamlining financial holding funds. company supervision. 900) to enhance competition in the fi- Sec. 187. Elimination of SAIF and DIF spe- Sec. 112. Elimination of application require- cial reserves. nancial services industry by providing ment for financial holding com- a prudenital framework for the affili- panies. Subtitle J—Effective Date of Title ation of banks, securities firms, insur- Sec. 113. Authority of State insurance regu- Sec. 191. Effective date. ance companies, and other financial lator and Securities and Ex- TITLE II—FUNCTIONAL REGULATION service providers, and for other pur- change Commission. Subtitle A—Brokers and Dealers Sec. 114. Prudential safeguards. poses; as follows: Sec. 115. Examination of investment compa- Sec. 201. Definition of broker. Strike all after the enacting clause and in- nies. Sec. 202. Definition of dealer. sert the following: Sec. 116. Limitation on rulemaking, pruden- Sec. 203. Registration for sales of private se- SECTION 1. SHORT TITLE; PURPOSES; TABLE OF tial, supervisory, and enforce- curities offerings. CONTENTS. ment authority of the Board. Sec. 204. Sales practices and complaint pro- (a) SHORT TITLE.—This Act may be cited as Sec. 117. Interagency consultation. cedures. the ‘‘Financial Services Act of 1999’’. Sec. 118. Equivalent regulation and super- Sec. 205. Information sharing. (b) PURPOSES.—The purposes of this Act vision. Sec. 206. Definition and treatment of bank- are as follows: Sec. 119. Prohibition on FDIC assistance to ing products. (1) To enhance competition in the financial affiliates and subsidiaries. Sec. 207. Derivative instrument and quali- services industry, in order to foster innova- Subtitle C—Subsidiaries of National Banks fied investor defined. Sec. 208. Government securities defined. tion and efficiency. Sec. 121. Subsidiaries of national banks au- Sec. 209. Effective date. (2) To ensure the continued safety and thorized to engage in financial Sec. 210. Rule of construction. soundness of depository institutions. activities. (3) To provide necessary and appropriate Sec. 122. Subsidiaries of State banks. Subtitle B—Bank Investment Company protections for investors and ensure fair and Sec. 123. Safety and soundness firewalls be- Activities honest markets in the delivery of financial tween banks and their financial Sec. 211. Custody of investment company as- services. subsidiaries. sets by affiliated bank. (4) To avoid duplicative, potentially con- Sec. 124. Functional regulation. Sec. 212. Lending to an affiliated investment flicting, and overly burdensome regulatory Sec. 125. Misrepresentations regarding de- company. requirements through the creation of a regu- pository institution liability Sec. 213. Independent directors. latory framework for financial holding com- for obligations of affiliates. Sec. 214. Additional SEC disclosure author- panies that respects the divergent require- Sec. 126. Repeal of stock loan limit in Fed- ity. ments of each of the component businesses of eral Reserve Act. Sec. 215. Definition of broker under the In- the holding company, and that is based upon Subtitle D—Wholesale Financial Holding vestment Company Act of 1940. principles of strong functional regulation Companies; Wholesale Financial Institutions Sec. 216. Definition of dealer under the In- and enhanced regulatory coordination. CHAPTER 1—WHOLESALE FINANCIAL HOLDING vestment Company Act of 1940. (5) To reduce and, to the maximum extent COMPANIES Sec. 217. Removal of the exclusion from the practicable, to eliminate the legal barriers Sec. 131. Wholesale financial holding compa- definition of investment adviser preventing affiliation among depository in- nies established. for banks that advise invest- stitutions, securities firms, insurance com- Sec. 132. Authorization to release reports. ment companies. panies, and other financial service providers Sec. 133. Conforming amendments. Sec. 218. Definition of broker under the In- and to provide a prudential framework for vestment Advisers Act of 1940. CHAPTER 2—WHOLESALE FINANCIAL achieving that result. Sec. 219. Definition of dealer under the In- INSTITUTIONS (6) To enhance the availability of financial vestment Advisers Act of 1940. services to citizens of all economic cir- Sec. 136. Wholesale financial institutions. Sec. 220. Interagency consultation. cumstances and in all geographic areas. Subtitle E—Preservation of FTC Authority Sec. 221. Treatment of bank common trust (7) To enhance the competitiveness of Sec. 141. Amendment to the Bank Holding funds. United States financial service providers Company Act of 1956 to modify Sec. 222. Investment advisers prohibited internationally. notification and post-approval from having controlling inter- (8) To ensure compliance by depository in- waiting period for section 3 est in registered investment stitutions with the provisions of the Commu- transactions. company. May 4, 1999 CONGRESSIONAL RECORD — SENATE S4683 Sec. 223. Conforming change in definition. Sec. 604. Repeal of savings bank provisions that the company meets the requirements of Sec. 224. Conforming amendment. in the Bank Holding Company subparagraphs (A) through (C). Sec. 225. Effective date. Act of 1956. ‘‘(2) FOREIGN BANKS AND COMPANIES.—For Subtitle C—Securities and Exchange Com- Sec. 605. Service of members of the Board of purposes of paragraph (1), the Board shall es- mission Supervision of Investment Bank Governors of the Federal Re- tablish and apply comparable capital and Holding Companies serve System. other operating standards to a foreign bank Sec. 231. Supervision of investment bank Sec. 606. Provision of technical assistance to that operates a branch or agency or owns or holding companies by the Secu- microenterprises. controls a bank or commercial lending com- rities and Exchange Commis- TITLE I—FACILITATING AFFILIATION pany in the United States, and any company sion. AMONG SECURITIES FIRMS, INSURANCE that owns or controls such foreign bank, giving due regard to the principle of national Subtitle D—Studies COMPANIES, AND DEPOSITORY INSTITU- TIONS treatment and equality of competitive op- Sec. 241. Study of methods to inform inves- portunity. Subtitle A—Affiliations tors and consumers of unin- ‘‘(3) LIMITED EXCLUSIONS FROM COMMUNITY sured products. SEC. 101. GLASS-STEAGALL ACT REFORMED. NEEDS REQUIREMENTS FOR NEWLY ACQUIRED Sec. 242. Study of limitation on fees associ- (a) SECTION 20 REPEALED.—Section 20 of the DEPOSITORY INSTITUTIONS.— ated with acquiring financial Banking Act of 1933 (12 U.S.C. 377) (com- ‘‘(A) IN GENERAL.—If the requirements of products. monly referred to as the ‘‘Glass-Steagall subparagraph (B) are met, any depository in- TITLE III—INSURANCE Act’’) is repealed. stitution acquired by a bank holding com- Subtitle A—State Regulation of Insurance (b) SECTION 32 REPEALED.—Section 32 of the pany during the 24-month period preceding Banking Act of 1933 (12 U.S.C. 78) is repealed. Sec. 301. State regulation of the business of the submission of a declaration under para- insurance. SEC. 102. ACTIVITY RESTRICTIONS APPLICABLE graph (1)(D) and any depository institution Sec. 302. Mandatory insurance licensing re- TO BANK HOLDING COMPANIES acquired after the submission of such dec- WHICH ARE NOT FINANCIAL HOLD- laration may be excluded for purposes of quirements. ING COMPANIES. Sec. 303. Functional regulation of insurance. paragraph (1)(C) until the later of— (a) IN GENERAL.—Section 4(c)(8) of the Sec. 304. Insurance underwriting in national ‘‘(i) the end of the 24-month period begin- Bank Holding Company Act of 1956 (12 U.S.C. banks. ning on the date the acquisition of the depos- 1843(c)(8)) is amended to read as follows: Sec. 305. Title insurance activities of na- itory institution by such company is con- ‘‘(8) shares of any company the activities tional banks and their affili- summated; or of which had been determined by the Board ates. ‘‘(ii) the date of completion of the first ex- by regulation under this paragraph as of the Sec. 306. Expedited and equalized dispute amination of such depository institution day before the date of enactment of the Fi- resolution for Federal regu- under the Community Reinvestment Act of nancial Services Act of 1999, to be so closely lators. 1977 which is conducted after the date of the Sec. 307. Consumer protection regulations. related to banking as to be a proper incident acquisition of the depository institution. Sec. 308. Certain State affiliation laws pre- thereto (subject to such terms and condi- ‘‘(B) REQUIREMENTS.—The requirements of empted for insurance compa- tions contained in such regulation, unless this subparagraph are met with respect to nies and affiliates. modified by the Board);’’. any bank holding company referred to in Sec. 309. Publication of preemption of State (b) CONFORMING CHANGES TO OTHER STAT- subparagraph (A) if— laws. UTES.— ‘‘(i) the bank holding company has sub- (1) AMENDMENT TO THE BANK HOLDING COM- Subtitle B—National Association of mitted an affirmative plan to the appro- PANY ACT AMENDMENTS OF 1970.—Section 105 of Registered Agents and Brokers priate Federal banking agency to take such the Bank Holding Company Act Amend- action as may be necessary in order for such Sec. 321. State flexibility in multistate li- ments of 1970 (12 U.S.C. 1850) is amended by institution to achieve a rating of ‘satisfac- censing reforms. striking ‘‘, to engage directly or indirectly in tory record of meeting community credit Sec. 322. National Association of Registered a nonbanking activity pursuant to section 4 needs’, or better, at the next examination of Agents and Brokers. of such Act,’’. Sec. 323. Purpose. the institution under the Community Rein- (2) AMENDMENT TO THE BANK SERVICE COM- vestment Act of 1977; and Sec. 324. Relationship to the Federal Gov- PANY ACT.—Section 4(f) of the Bank Service ernment. ‘‘(ii) the plan has been approved by such Company Act (12 U.S.C. 1864(f)) is amended agency. Sec. 325. Membership. by striking the period and adding at the end ‘‘(c) ENGAGING IN ACTIVITIES THAT ARE FI- Sec. 326. Board of Directors. the following: ‘‘as of the day before the date Sec. 327. Officers. NANCIAL IN NATURE.— of enactment of the Financial Services Act Sec. 328. Bylaws, rules, and disciplinary ac- ‘‘(1) FINANCIAL ACTIVITIES.—Notwith- of 1999.’’. tion. standing section 4(a), a financial holding Sec. 329. Assessments. SEC. 103. FINANCIAL HOLDING COMPANIES. company and a wholesale financial holding Sec. 330. Functions of the NAIC. The Bank Holding Company Act of 1956 is company may engage in any activity, and Sec. 331. Liability of the Association and the amended by inserting after section 5 (12 acquire and retain the shares of any com- directors, officers, and employ- U.S.C. 1844) the following new section: pany engaged in any activity, that the Board ees of the Association. ‘‘SEC. 6. FINANCIAL HOLDING COMPANIES. and the Secretary of the Treasury have Sec. 332. Elimination of NAIC oversight. ‘‘(a) FINANCIAL HOLDING COMPANY DE- jointly determined, pursuant to paragraph Sec. 333. Relationship to State law. FINED.—For purposes of this section, the (2) (by regulation or order), to be financial in Sec. 334. Coordination with other regulators. term ‘financial holding company’ means a nature or incidental to such financial activi- Sec. 335. Judicial review. bank holding company which meets the re- ties. Sec. 336. Definitions. quirements of subsection (b). ‘‘(2) FACTORS TO BE CONSIDERED.—In deter- TITLE IV—UNITARY SAVINGS AND LOAN ‘‘(b) ELIGIBILITY REQUIREMENTS FOR FINAN- mining whether an activity is financial in HOLDING COMPANIES CIAL HOLDING COMPANIES.— nature or incidental to financial activities, Sec. 401. Prevention of creation of new sav- ‘‘(1) IN GENERAL.—No bank holding com- the Board and the Secretary of the Treasury ings and loan holding compa- pany may engage in any activity or directly shall take into account— nies with commercial affiliates. or indirectly acquire or retain shares of any ‘‘(A) the purposes of this Act and the Fi- Sec. 402. Optional conversion of Federal sav- company under this section unless the bank nancial Services Act of 1999; ings associations to national holding company meets the following re- ‘‘(B) changes or reasonably expected banks. quirements: changes in the marketplace in which bank Sec. 403. Retention of ‘‘Federal’’ in name of ‘‘(A) All of the subsidiary depository insti- holding companies compete; converted Federal savings asso- tutions of the bank holding company are ‘‘(C) changes or reasonably expected ciation. well capitalized. changes in the technology for delivering fi- TITLE V—FINANCIAL INFORMATION ‘‘(B) All of the subsidiary depository insti- nancial services; and ANTI-FRAUD tutions of the bank holding company are ‘‘(D) whether such activity is necessary or well managed. appropriate to allow bank holding companies Sec. 501. Financial information anti-fraud. ‘‘(C) All of the subsidiary depository insti- to— Sec. 502. Report to Congress on financial pri- tutions of the bank holding company have ‘‘(i) compete effectively with any company vacy. achieved a rating of ‘satisfactory record of seeking to provide financial services in the TITLE VI—MISCELLANEOUS meeting community credit needs’, or better, United States; Sec. 601. Grand jury proceedings. at the most recent examination of each such ‘‘(ii) use any available or emerging techno- Sec. 602. Sense of the Committee on Bank- institution under the Community Reinvest- logical means, including any application ing, Housing, and Urban Affairs ment Act of 1977. necessary to protect the security or efficacy of the Senate. ‘‘(D) The company has filed with the Board of systems for the transmission of data or fi- Sec. 603. Investments in Government spon- a declaration that the company elects to be nancial transactions, in providing financial sored enterprises. a financial holding company and certifying services; and S4684 CONGRESSIONAL RECORD — SENATE May 4, 1999 ‘‘(iii) offer customers any available or (including without limitation debt or equity States, including through merger, consolida- emerging technological means for using fi- securities, partnership interests, trust cer- tion, or other type of business combination, nancial services. tificates or other instruments representing that— ‘‘(3) ACTIVITIES THAT ARE FINANCIAL IN NA- ownership) of a company or other entity, ‘‘(i) is engaged in activities permitted TURE.—The following activities shall be con- whether or not constituting control of such under this subsection or subsection (g); and sidered to be financial in nature: company or entity, engaged in any activity ‘‘(ii) has consolidated total assets in excess ‘‘(A) Lending, exchanging, transferring, in- not authorized pursuant to this section if— of $40,000,000,000, vesting for others, or safeguarding money or ‘‘(i) the shares, assets, or ownership inter- unless such holding company has provided securities. ests are not acquired or held by a depository notice to the Board, not later than 60 days ‘‘(B) Insuring, guaranteeing, or indem- institution or a subsidiary of a depository in- prior to such proposed acquisition or prior to nifying against loss, harm, damage, illness, stitution; becoming a financial holding company or disability, or death, or providing and issuing ‘‘(ii) such shares, assets, or ownership in- wholesale financial holding company, and annuities, and acting as principal, agent, or terests are acquired and held by an insurance during that time period, or such longer time broker for purposes of the foregoing. company that is predominantly engaged in period not exceeding an additional 60 days, ‘‘(C) Providing financial, investment, or underwriting life, accident and health, or as established by the Board, the Board has economic advisory services, including advis- property and casualty insurance (other than not issued a notice disapproving the pro- ing an investment company (as defined in credit-related insurance); posed acquisition or retention. section 3 of the Investment Company Act of ‘‘(iii) such shares, assets, or ownership in- ‘‘(B) FACTORS FOR CONSIDERATION.—In re- 1940). terests represent an investment made in the viewing any prior notice filed under this ‘‘(D) Issuing or selling instruments rep- ordinary course of business of such insurance paragraph, the Board shall take into resenting interests in pools of assets permis- company in accordance with relevant State consideration— sible for a bank to hold directly. law governing such investments; and ‘‘(i) whether the company is in compliance ‘‘(E) Underwriting, dealing in, or making a ‘‘(iv) during the period such shares, assets, with all applicable criteria set forth in sub- market in securities. or ownership interests are held, the bank ‘‘(F) Engaging in any activity that the holding company does not directly or indi- section (b) and the provisions of subsection Board has determined, by order or regulation rectly participate in the day-to-day manage- (d); that is in effect on the date of enactment of ment or operation of the company or entity ‘‘(ii) whether the proposed combination the Financial Services Act of 1999, to be so except insofar as necessary to achieve the represents an undue aggregation of re- closely related to banking or managing or objectives of clauses (ii) and (iii). sources; controlling banks as to be a proper incident ‘‘(4) ACTIONS REQUIRED.— ‘‘(iii) whether the proposed combination thereto (subject to the same terms and con- ‘‘(A) REGULATION OF MERCHANT BANKING.— poses a risk to the deposit insurance system; ditions contained in such order or regula- The Board may prescribe regulations and ‘‘(iv) whether the proposed combination tion, unless modified by the Board). issue interpretations to implement para- poses a risk to State insurance guaranty ‘‘(G) Engaging, in the United States, in graph (3)(H). funds; any activity that— ‘‘(B) REGULATION OF OTHER ACTIVITIES.— ‘‘(v) whether the proposed combination can ‘‘(i) a bank holding company may engage The Board and the Secretary of the reasonably be expected to be in the best in- in outside the United States; and Treasury— terests of depositors or policyholders of the ‘‘(ii) the Board has determined, under regu- ‘‘(i) may jointly prescribe regulations and respective entities; and lations issued pursuant to section 4(c)(13) of issue interpretations under paragraph (3), ‘‘(vi) whether the proposed transaction can this Act (as in effect on the day before the other than subparagraph (H); and reasonably be expected to produce benefits date of enactment of the Financial Services ‘‘(ii) shall jointly define, by regulation, ac- to the public. Act of 1999) to be usual in connection with tivities described in paragraph (5), to the ex- ‘‘(C) REQUIRED INFORMATION.—The Board the transaction of banking or other financial tent that they are consistent with the pur- may disapprove any prior notice filed under operations abroad. poses of this Act, as financial in nature or this paragraph if the company submitting ‘‘(H) Directly or indirectly acquiring or incidental to activities that are financial in such notice neglects, fails, or refuses to fur- controlling, whether as principal, on behalf nature. nish to the Board all relevant information of 1 or more entities (including entities, ‘‘(5) ACTIVITIES DESCRIBED.—The activities required by the Board. other than a depository institution, that the described in this paragraph are— ‘‘(D) SOLICITATION OF VIEWS OF OTHER SU- bank holding company controls) or other- ‘‘(A) lending, exchanging, transferring, in- PERVISORY AGENCIES.— wise, shares, assets, or ownership interests vesting for others, or safeguarding financial ‘‘(i) IN GENERAL.—Upon receiving a prior (including without limitation debt or equity assets other than money or securities; notice under this paragraph, in order to pro- securities, partnership interests, trust cer- ‘‘(B) providing any device or other instru- vide for the submission of their views and tificates or other instruments representing mentality for transferring money or other fi- recommendations, the Board shall give no- ownership) of a company or other entity, nancial assets; and tice of the proposal to— whether or not constituting control of such ‘‘(C) arranging, effecting, or facilitating fi- ‘‘(I) the appropriate Federal banking agen- company or entity, engaged in any activity nancial transactions for the account of third cy of any bank involved; not authorized pursuant to this section if— parties. ‘‘(II) the appropriate functional regulator ‘‘(i) the shares, assets, or ownership inter- ‘‘(6) POST-CONSUMMATION NOTIFICATION.— of any functionally regulated nondepository ests are not acquired or held by a depository ‘‘(A) IN GENERAL.—A financial holding institution (as defined in section 5(c)(1)(C)) institution; company and a wholesale financial holding involved; and ‘‘(ii) such shares, assets, or ownership in- company that acquires any company, or ‘‘(III) the Secretary of the Treasury, the terests are acquired and held by a securities commences any activity, pursuant to this Department of Justice, and the Federal affiliate or an affiliate thereof as part of a subsection shall provide written notice to Trade Commission. bona fide underwriting or merchant banking the Board describing the activity com- ‘‘(ii) TIMING.—The views and recommenda- activity, including investment activities en- menced or conducted by the company actions of any agency provided notice under gaged in for the purpose of appreciation and quired no later than 30 calendar days after this paragraph shall be submitted to the ultimate resale or disposition of the invest- commencing the activity or consummating Board not later than 30 calendar days after ment; the acquisition. the date on which notice to the agency was ‘‘(iii) such shares, assets, or ownership in- ‘‘(B) APPROVAL NOT REQUIRED FOR CERTAIN given, unless the Board determines that an- terests are held only for such a period of FINANCIAL ACTIVITIES.—Except as provided in other shorter time period is appropriate. time as will permit the sale or disposition section 4(j) with regard to the acquisition of thereof on a reasonable basis consistent with a savings association or in paragraph (7) of ‘‘(d) PROVISIONS APPLICABLE TO FINANCIAL the nature of the activities described in this subsection, a financial holding company HOLDING COMPANIES THAT FAIL TO MEET RE- clause (ii); and and a wholesale financial holding company QUIREMENTS.— ‘‘(iv) during the period such shares, assets, may commence any activity, or acquire any ‘‘(1) IN GENERAL.—If a financial holding or ownership interests are held, the bank company, pursuant to paragraph (3) or any company is not in compliance with the re- holding company does not actively partici- regulation prescribed or order issued under quirements of subparagraph (A), (B), (C), or pate in the day to day management or oper- paragraph (4), without prior approval of the (D) of subsection (b)(1), the appropriate Fed- ation of such company or entity, except inso- Board. eral banking agency of the subsidiary deposi- far as necessary to achieve the objectives of ‘‘(7) NOTICE REQUIRED FOR LARGE COMBINA- tory institution shall notify the Board which clause (ii). TIONS.— shall give notice of such finding to the com- ‘‘(I) Directly or indirectly acquiring or ‘‘(A) IN GENERAL.—No financial holding pany. controlling, whether as principal, on behalf company or wholesale financial holding com- ‘‘(2) AGREEMENT TO CORRECT CONDITIONS RE- of 1 or more entities (including entities, pany shall directly or indirectly acquire, and QUIRED.— other than a depository institution or sub- no company that becomes a financial hold- ‘‘(A) IN GENERAL.—Not later than 45 days sidiary of a depository institution, that the ing company or a wholesale financial holding after receipt by a financial holding company bank holding company controls) or other- company shall directly or indirectly acquire of a notice given under paragraph (1) (or such wise, shares, assets, or ownership interests control of, any company in the United additional period as the Board may permit), May 4, 1999 CONGRESSIONAL RECORD — SENATE S4685

the company and any relevant depository in- ‘‘(1) IN GENERAL.—Notwithstanding section control of shares of a company, pursuant to stitution shall execute an agreement accept- 4(a), a company that is not a bank holding this subsection, shall terminate such activ- able to the Board and the appropriate Fed- company or a foreign bank (as defined in sec- ity and divest ownership or control of the eral banking agency to comply with the re- tion 1(b)(7) of the International Banking Act shares of such company before the end of the quirements applicable to a financial holding of 1978) and becomes a financial holding com- 10-year period beginning on the date of en- company. pany after the date of enactment of the Fi- actment of the Financial Services Act of ‘‘(B) CERTAIN FAILURES TO COMPLY.—A financial Services Act of 1999 may continue to 1999. The Board may, upon application by a nancial holding company shall not be re- engage in any activity and retain direct or financial holding company, extend such 10- quired to divest any company held, or termi- indirect ownership or control of shares of a year period by a period not to exceed an ad- nate any activity conducted pursuant to, company engaged in any activity if— ditional 5 years if such extension would not subsection (c) solely because of a failure to ‘‘(A) the holding company lawfully was en- be detrimental to the public interest. comply with subsection (b)(1)(C). gaged in the activity or held the shares of ‘‘(3) BOARD MAY IMPOSE LIMITATIONS.—Until such company on September 30, 1997; ‘‘(g) DEVELOPING ACTIVITIES.—A financial the conditions described in a notice to a fi- ‘‘(B) the holding company is predomi- holding company and a wholesale financial nancial holding company under paragraph (1) nantly engaged in financial activities as de- holding company may engage directly or in- are corrected— fined in paragraph (2); and directly, or acquire shares of any company ‘‘(A) the Board may impose such limita- ‘‘(C) the company engaged in such activity engaged, in any activity that the Board has tions on the conduct or activities of the com- continues to engage only in the same activi- not determined to be financial in nature or pany or any affiliate of the company (other ties that such company conducted on Sep- incidental to financial activities under sub- than a depository to institution or a sub- tember 30, 1997, and other activities permis- section (c) if— sidiary of a depository institution) as the sible under this Act. ‘‘(1) the holding company reasonably con- Board determines to be appropriate under ‘‘(2) PREDOMINANTLY FINANCIAL.—For pur- cludes that the activity is financial in na- the circumstances; and poses of this subsection, a company is pre- ture or incidental to financial activities; ‘‘(B) the appropriate Federal banking agen- dominantly engaged in financial activities if cy may impose such limitations on the con- the annual gross revenues derived by the ‘‘(2) the gross revenues from all activities duct or activities of an affiliated depository holding company and all subsidiaries of the conducted under this subsection represent institution or subsidiary of a depository in- holding company (excluding revenues de- less than 5 percent of the consolidated gross stitution as the appropriate Federal banking rived from subsidiary depository institu- revenues of the holding company; agency determines to be appropriate under tions), on a consolidated basis, from engag- ‘‘(3) the aggregate total assets of all com- the circumstances. ing in activities that are financial in nature panies the shares of which are held under ‘‘(4) FAILURE TO CORRECT.—If, after receiv- or are incidental to activities that are finan- this subsection do not exceed 5 percent of the ing a notice under paragraph (1), a financial cial in nature under subsection (c) represent holding company’s consolidated total assets; holding company or a depository institution at least 85 percent of the consolidated annual ‘‘(4) the total capital invested in activities affiliate of such company does not— gross revenues of the company. conducted under this subsection represents ‘‘(A) execute and implement an agreement ‘‘(3) NO EXPANSION OF GRANDFATHERED COM- less than 5 percent of the consolidated total in accordance with paragraph (2); MERCIAL ACTIVITIES THROUGH MERGER OR CON- capital of the holding company; ‘‘(B) comply with any limitations imposed SOLIDATION.—A financial holding company ‘‘(5) the Board has not determined that the under paragraph (3); that engages in activities or holds shares activity is not financial in nature or inci- ‘‘(C) in the case of a notice of failure to pursuant to this subsection, or a subsidiary dental to financial activities under sub- comply with subsection (b)(1)(A), restore of such financial holding company, may not section (c); each depository institution subsidiary to acquire, in any merger, consolidation, or ‘‘(6) the holding company is not required to well capitalized status before the end of the other type of business combination, assets of provide prior written notice of the trans- 180-day period beginning on the date such no- any other company which is engaged in any action to the Board under subsection (c)(6); tice is received by the company (or such activity which the Board has not determined and other period permitted by the Board); or to be financial in nature or incidental to ac- ‘‘(7) the holding company provides written ‘‘(D) in the case of a notice of failure to tivities that are financial in nature under notification to the Board describing the ac- comply with subparagraph (B) or (C) of sub- subsection (c). tivity commenced or conducted by the com- section (b)(1), restore compliance with any ‘‘(4) CONTINUING REVENUE LIMITATION ON pany acquired no later than 10 business days such subparagraph on or before the date on GRANDFATHERED COMMERCIAL ACTIVITIES.— after commencing the activity or consum- which the next examination of the deposi- Notwithstanding any other provision of this mating the acquisition. tory institution subsidiary is completed or subsection, a financial holding company may ‘‘(h) DEFINITIONS.—For purposes of this sec- by the end of such other period as the Board continue to engage in activities or hold tion, the following definitions shall apply: determines to be appropriate, shares in companies pursuant to this sub- the Board may require such company, under section only to the extent that the aggregate ‘‘(1) WELL CAPITALIZED.—The term ‘well such terms and conditions as may be im- annual gross revenues derived from all such capitalized’ has the same meaning as in sec- posed by the Board and subject to such ex- activities and all such companies does not tion 38 of the Federal Deposit Insurance Act. tension of time as may be granted in the exceed 15 percent of the consolidated annual For purposes of this section, the appropriate Board’s discretion, to divest control of any gross revenues of the financial holding com- Federal banking agency shall have exclusive depository institution subsidiary or, at the pany (excluding revenues derived from sub- jurisdiction to determine whether an deposi- election of the financial holding company, sidiary depository institutions). tory institution is well capitalized. instead to cease to engage in any activity ‘‘(5) CROSS MARKETING RESTRICTIONS APPLI- ‘‘(2) WELL MANAGED.— conducted by such company or its subsidi- CABLE TO COMMERCIAL ACTIVITIES.—A deposi- ‘‘(A) IN GENERAL.—The term ‘well man- aries pursuant to this section. tory institution controlled by a financial aged’ means— ‘‘(5) CONSULTATION.—In taking any action holding company shall not— ‘‘(i) in the case of an depository institution under this subsection, the Board shall con- ‘‘(A) offer or market, directly or through that has been examined, unless otherwise de- sult with all relevant Federal and State reg- any arrangement, any product or service of a termined in writing by the appropriate Fed- ulatory agencies. company whose activities are conducted or eral banking agency, the achievement of— ‘‘(e) SAFEGUARDS FOR BANK SUBSIDIARIES.— whose shares are owned or controlled by the ‘‘(I) a composite rating of 1 or 2 under the A financial holding company shall assure financial holding company pursuant to this Uniform Financial Institutions Rating Sys- that— subsection or subparagraph (H) or (I) of sub- tem (or an equivalent rating under an equiv- ‘‘(1) the procedures of the holding company section (c)(3); or alent rating system) in connection with the for identifying and managing financial and ‘‘(B) permit any of its products or services most recent examination or subsequent re- operational risks within the company, and to be offered or marketed, directly or view of the depository institution; and the subsidiaries of such company, adequately through any arrangement, by or through any ‘‘(II) at least a rating of 2 for management, protect the subsidiaries of such company company described in subparagraph (A). if that rating is given; or which are insured depository institutions ‘‘(6) TRANSACTIONS WITH NONFINANCIAL AF- ‘‘(ii) in the case of an depository institu- from such risks; FILIATES.—An insured depository institution tion that has not been examined, the exist- ‘‘(2) the holding company has reasonable controlled by a financial holding company or ence and use of such managerial resources as policies and procedures to preserve the sepa- wholesale financial holding company may the appropriate Federal banking agency de- rate corporate identity and limited liability not engage in a covered transaction (as determines are satisfactory. of such company and the subsidiaries of such fined by section 23A(b)(7) of the Federal Re- ‘‘(B) EXISTING JURISDICTION PRESERVED.— company, for the protection of the com- serve Act) with any affiliate controlled by For purposes of this section, the appropriate pany’s subsidiary insured depository institu- the company pursuant to section 10(c), this Federal banking agency shall have exclusive tions; and subsection, or subparagraph (H) or (I) of sub- jurisdiction to determine whether a deposi- ‘‘(3) the holding company complies with section (c)(3). tory institution is well managed.’’. ‘‘(7) SUNSET OF GRANDFATHER.—A financial this section. SEC. 104. OPERATION OF STATE LAW. ‘‘(f) AUTHORITY TO RETAIN LIMITED NON- holding company engaged in any activity, or FINANCIAL ACTIVITIES AND AFFILIATIONS.— retaining direct or indirect ownership or (a) AFFILIATIONS.— S4686 CONGRESSIONAL RECORD — SENATE May 4, 1999

(1) IN GENERAL.—Except as provided in other material change in its business or cor- trust laws of any State or any State law that paragraph (2), no State may, by statute, reg- porate structure or management; is similar to the antitrust laws. ulation, order, interpretation, or other ac- (vii) the number of shares of any security (B) DEFINITION.—For purposes of this para- tion, prevent or restrict an insured deposi- of the insurer that each acquiring party pro- graph, the term ‘‘antitrust laws’’ has the tory institution or wholesale financial insti- poses to acquire, the terms of any offer, re- same meaning as in subsection (a) of the tution, or a subsidiary or affiliate thereof, quest, invitation, agreement, or acquisition, first section of the Clayton Act, and includes from being affiliated directly or indirectly or and a statement as to the method by which section 5 of the Federal Trade Commission associated with any person or entity, as au- the fairness of the proposal was arrived at; Act to the extent that such section 5 relates thorized or permitted by this Act or any (viii) the amount of each class of any secu- to unfair methods of competition. other provision of Federal law. rity of the insurer that is beneficially owned (b) ACTIVITIES.— (2) INSURANCE.—With respect to affiliations or concerning which there is a right to ac- (1) IN GENERAL.—Except as provided in between insured depository institutions or quire beneficial ownership by each acquiring paragraph (3), and except with respect to in- wholesale financial institutions, or any sub- party; surance sales, solicitation, and cross mar- sidiary or affiliate thereof, and persons or (ix) a full description of any contracts, ar- keting activities, which shall be governed by paragraph (2), no State may, by statute, reg- entities engaged in the business of insurance, rangements, or understandings with respect ulation, order, interpretation, or other ac- paragraph (1) does not prohibit any State to any security of the insurer in which any tion, prevent or restrict an insured deposi- from— acquiring party is involved, including trans- tory institution, wholesale financial institu- (A) requiring any person or entity that fer of any of the securities, joint ventures, tion, or subsidiary or affiliate thereof from proposes to acquire control of an entity that loan or option arrangements, puts or calls, engaging directly or indirectly, either by is engaged in the business of insurance and guarantees of loans, guarantees against loss itself or in conjunction with a subsidiary, af- domiciled in that State (hereafter in this or guarantees of profits, division of losses or filiate, or any other entity or person, in any subparagraph referred to as the ‘‘insurer’’) to profits, or the giving or withholding of prox- activity authorized or permitted under this furnish to the insurance regulatory author- ies, and identification of the persons with Act. ity of that State, not later than 60 days be- whom such contracts, arrangements, or un- (2) INSURANCE SALES.— fore the effective date of the proposed derstandings have been entered into; (A) IN GENERAL.—In accordance with the acquisition— (x) a description of the purchase of any se- legal standards for preemption set forth in (i) the name and address of each person by curity of the insurer during the 12-month pe- the decision of the Supreme Court of the whom, or on whose behalf, the affiliation re- riod preceding the date of notification by United States in Barnett Bank of Marion ferred to in this subparagraph is to be ef- any acquiring party, including the dates of County N.A. v. Nelson, 116 S. Ct. 1103 (1996), fected (hereafter in this subparagraph repurchase, names of the purchasers, and con- no State may, by statute, regulation, order, ferred to as the ‘‘acquiring party’’); sideration paid, or agreed to be paid, there- interpretation, or other action, prevent or (ii) if the acquiring party is an individual, for; significantly interfere with the ability of an his or her principal occupation and all of- (xi) a description of any recommendations insured depository institution or wholesale fices and positions held during the 5 years to purchase any security of the insurer made financial institution, or a subsidiary or affil- preceding the date of notification, and any during the 12-month period preceding the iate thereof, to engage, directly or indi- conviction of crimes other than minor traffic date of notification by any acquiring party rectly, either by itself or in conjunction with violations during the 10 years preceding the or by any person based upon interviews or at a subsidiary, affiliate, or any other party, in date of notification; the suggestion of such acquiring party; any insurance sales, solicitation, or cross- (iii) if the acquiring party is not an (xii) copies of all tender offers for, requests marketing activity. individual— or invitations for tenders of, exchange offers (B) CERTAIN STATE LAWS PRESERVED.—Not- (I) a report of the nature of its business op- for and agreements to acquire or exchange withstanding subparagraph (A), a State may erations during the 5 years preceding the any securities of the insurer and, if distrib- impose any of the following restrictions, or date of notification, or for such shorter pe- uted, of additional soliciting material relat- restrictions which are substantially the riod as such person and any predecessors ing thereto; and same as, but no more burdensome or restric- thereof shall have been in existence; (xiii) the terms of any agreement, con- tive than, those in each of the following (II) an informative description of the busi- tract, or understanding made with any clauses: ness intended to be done by the acquiring broker-dealer as to solicitation of securities (i) Restrictions prohibiting the rejection of party and any subsidiary thereof; and of the insurer for tender and the amount of an insurance policy solely because the policy (III) a list of all individuals who are, or any fees, commissions, or other compensa- has been issued or underwritten by any per- who have been selected to become, directors tion to be paid to broker-dealers with regard son who is not associated with such insured or executive officers of the acquiring party thereto; depository institution or wholesale financial or who perform, or will perform, functions (B) requiring an entity that is acquiring institution, or any subsidiary or affiliate appropriate to such positions, including, for control of an entity that is engaged in the thereof, when such insurance is required in each such individual, the information re- business of insurance and domiciled in that connection with a loan or extension of cred- quired by clause (ii); State to maintain or restore the capital re- it. (iv) the source, nature, and amount of the quirements of that insurance entity to the (ii) Restrictions prohibiting a requirement consideration used, or to be used, in effecting level required under the capital regulations for any debtor, insurer, or insurance agent or the merger or other acquisition of control, a of general applicability in that State to broker to pay a separate charge in connec- description of any transaction wherein funds avoid the requirement of preparing and filing tion with the handling of insurance that is were, or are to be, obtained for any such pur- with the insurance regulatory authority of required in connection with a loan or other pose, and the identity of persons furnishing that State a plan to increase the capital of extension of credit or the provision of an- such consideration, except that, if a source the entity, except that any determination by other traditional banking product, unless of such consideration is a loan made in the the State insurance regulatory authority such charge would be required when the in- lender’s ordinary course of business, the with respect to such requirement shall be sured depository institution or wholesale fi- identity of the lender shall remain confiden- made not later than 60 days after the date of nancial institution, or any subsidiary or af- tial if the person filing such statement so re- notification under subparagraph (A); filiate thereof, is the licensed insurance quests; (C) taking actions with respect to the re- agent or broker providing the insurance. (v) fully audited financial information as ceivership or conservatorship of any insur- (iii) Restrictions prohibiting the use of any to the earnings and financial condition of ance company; or advertisement or other insurance pro- each acquiring party for the 5 fiscal years (D) restricting a change in the ownership motional material by an insured depository preceding the date of notification of each of stock in an insurance company, or a com- institution or wholesale financial institu- such acquiring party, or for such lesser pe- pany formed for the purpose of controlling tion, or any subsidiary or affiliate thereof, riod as such acquiring party and any prede- such insurance company, for a period of not that would cause a reasonable person to be- cessors thereof shall have been in existence, more than 3 years beginning on the date of lieve mistakenly that— and similar unaudited information as of a the conversion of such company from mutual (I) a State or the Federal Government is date not earlier than 90 days before the date to stock form. responsible for the insurance sales activities of notification, except that, in the case of an (3) PRESERVATION OF STATE ANTITRUST AND of, or stands behind the credit of, the institu- acquiring party that is an insurer actively GENERAL CORPORATE LAWS.— tion, affiliate, or subsidiary; or engaged in the business of insurance, the fi- (A) IN GENERAL.—Nothing in paragraph (1) (II) a State, or the Federal Government nancial statements of such insurer need not shall be construed as affecting State laws, guarantees any returns on insurance prod- be audited, but such audit may be required if regulations, orders, interpretations, or other ucts, or is a source of payment on any insur- the need therefor is determined by the insur- actions of general applicability relating to ance obligation of or sold by the institution, ance regulatory authority of the State; the governance of corporations, partner- affiliate, or subsidiary. (vi) any plans or proposals that each ac- ships, limited liability companies or other (iv) Restrictions prohibiting the payment quiring party may have to liquidate such in- business associations incorporated or formed or receipt of any commission or brokerage surer, to sell its assets, or to merge or con- under the laws of that State or domiciled in fee or other valuable consideration for serv- solidate it with any person or to make any that State, or the applicability of the anti- ices as an insurance agent or broker to or by May 4, 1999 CONGRESSIONAL RECORD — SENATE S4687 any person, unless such person holds a valid with the loan or extension of credit by the other action that is not referred to or de- State license regarding the applicable class insured depository institution or wholesale scribed in this paragraph. of insurance at the time at which the serv- financial institution, or any subsidiary or af- (3) INSURANCE ACTIVITIES OTHER THAN ices are performed, except that, in this filiate thereof, that a written disclosure be SALES.—State statutes, regulations, inter- clause, the term ‘‘services as an insurance provided to the consumer (or prospective pretations, orders, and other actions shall agent or broker’’ does not include a referral customer) indicating that his or her choice not be preempted under subsection (b)(1) to by an unlicensed person of a customer or po- of an insurance provider will not affect the the extent that they— tential customer to a licensed insurance credit decision or credit terms in any way, (A) relate to, or are issued, adopted, or en- agent or broker that does not include a dis- except that the insured depository institu- acted for the purpose of regulating the busi- cussion of specific insurance policy terms tion or wholesale financial institution may ness of insurance in accordance with the Act and conditions. impose reasonable requirements concerning of March 9, 1945 (commonly known as the (v) Restrictions prohibiting any compensa- the creditworthiness of the insurance pro- ‘‘McCarran-Ferguson Act’’); tion paid to or received by any individual vider and scope of coverage chosen. (B) apply only to persons or entities that who is not licensed to sell insurance, for the (x) Restrictions requiring clear and con- are not insured depository institutions or referral of a customer that seeks to pur- spicuous disclosure, in writing, where prac- wholesale financial institutions, but that are chase, or seeks an opinion or advice on, any ticable, to the customer prior to the sale of directly engaged in the business of insurance insurance product to a person that sells or any insurance policy that such policy— (except that they may apply to depository provides opinions or advice on such product, (I) is not a deposit; institutions engaged in providing savings based on the purchase of insurance by the (II) is not insured by the Federal Deposit bank life insurance as principal to the extent customer. Insurance Corporation; of regulating such insurance); (vi) Restrictions prohibiting the release of (III) is not guaranteed by the insured de- (C) do not relate to or directly or indi- the insurance information of a customer (depository institution or wholesale financial rectly regulate insurance sales, solicitations, fined as information concerning the pre- institution or, if appropriate, its subsidiaries or cross-marketing activities; and miums, terms, and conditions of insurance or affiliates or any person soliciting the pur- (D) are not prohibited under subsection (c). coverage, including expiration dates and chase of or selling insurance on the premises (4) FINANCIAL ACTIVITIES OTHER THAN INSUR- rates, and insurance claims of a customer ANCE.—No State statute, regulation, inter- contained in the records of the insured de- thereof; and (IV) where appropriate, involves invest- pretation, order, or other action shall be pre- pository institution or wholesale financial empted under subsection (b)(1) to the extent institution, or a subsidiary or affiliate there- ment risk, including potential loss of principal. that— of) to any person or entity other than an of- (A) it does not relate to, and is not issued ficer, director, employee, agent, subsidiary, (xi) Restrictions requiring that, when a customer obtains insurance (other than cred- and adopted, or enacted for the purpose of or affiliate of an insured depository institu- regulating, directly or indirectly, insurance tion or a wholesale financial institution, for it insurance or flood insurance) and credit from an insured depository institution or sales, solicitations, or cross marketing ac- the purpose of soliciting or selling insurance, tivities covered under paragraph (2); without the express consent of the customer, wholesale financial institution, or its subsidiaries or affiliates, or any person solic- (B) it does not relate to, and is not issued other than a provision that prohibits— and adopted, or enacted for the purpose of (I) a transfer of insurance information to iting the purchase of or selling insurance on regulating, directly or indirectly, the busi- an unaffiliated insurance company, agent, or the premises thereof, the credit and insur- ness of insurance activities other than sales, broker in connection with transferring insurance transactions be completed through sep- solicitations, or cross marketing activities, ance in force on existing insureds of the in- arate documents. covered under paragraph (3); sured depository institution or wholesale fi- (xii) Restrictions prohibiting, when a cus- (C) it does not relate to securities inves- nancial institution, or subsidiary or affiliate tomer obtains insurance (other than credit tigations or enforcement actions referred to thereof, or in connection with a merger with insurance or flood insurance) and credit from in subsection (d); and or acquisition of an unaffiliated insurance an insured depository institution or whole- (D) it— company, agent, or broker; or sale financial institution or its subsidiaries (i) does not distinguish by its terms be- (II) the release of information as otherwise or affiliates, or any person soliciting the pur- authorized by State or Federal law. chase of or selling insurance on the premises tween insured depository institutions, (vii) Restrictions prohibiting the use of thereof, inclusion of the expense of insurance wholesale financial institutions, and subsidi- health information obtained from the insur- premiums in the primary credit transaction aries and affiliates thereof engaged in the ac- ance records of a customer for any purpose, without the express written consent of the tivity at issue and other persons or entities other than for its activities as a licensed customer. engaged in the same activity in a manner agent or broker, without the express consent (xiii) Restrictions requiring maintenance that is in any way adverse with respect to of the customer. of separate and distinct books and records the conduct of the activity by any such in- (viii) Restrictions prohibiting the exten- relating to insurance transactions, including sured depository institution, wholesale fi- sion of credit or any product or service that all files relating to and reflecting consumer nancial institution, or subsidiary or affiliate is equivalent to an extension of credit, lease complaints, and requiring that such insur- thereof engaged in the activity at issue; or sale of property of any kind, or furnishing ance books and records be made available to (ii) as interpreted or applied, does not of any services, or fixing or varying the con- the appropriate State insurance regulator have, and will not have, an impact on deposi- sideration for any of the foregoing, on the for inspection upon reasonable notice. tory institutions, wholesale financial insti- condition or requirement that the customer (C) LIMITATIONS.— tutions, or subsidiaries or affiliates thereof obtain insurance from the insured depository (i) OCC DEFERENCE.—Section 306(e) does engaged in the activity at issue, or any per- institution, wholesale financial institution, not apply with respect to any State statute, son or entity affiliated therewith, that is a subsidiary or affiliate thereof, or a par- regulation, order, interpretation, or other substantially more adverse than its impact ticular insurer, agent, or broker, other than action regarding insurance sales, solicita- on other persons or entities engaged in the a prohibition that would prevent any insured tion, or cross marketing activities described same activity that are not insured deposi- depository institution or wholesale financial in subparagraph (A) that was issued, adopt- tory institutions, wholesale financial insti- institution, or any subsidiary or affiliate ed, or enacted before March 4, 1999, and that tutions, or subsidiaries or affiliates thereof, thereof— is not described in subparagraph (B). or persons or entities affiliated therewith; (I) from engaging in any activity that (ii) NONDISCRIMINATION.—Subsection (c) (iii) does not effectively prevent a deposi- would not violate section 106 of the Bank does not apply with respect to any State tory institution, wholesale financial institu- Holding Company Act Amendments of 1970, statute, regulation, order, interpretation, or tion, or subsidiary or affiliate thereof from as interpreted by the Board of Governors of other action regarding insurance sales, solic- engaging in activities authorized or per- the Federal Reserve System; or itation, or cross marketing activities de- mitted by this Act or any other provision of (II) from informing a customer or prospec- scribed in subparagraph (A) that was issued, Federal law; and tive customer that insurance is required in adopted, or enacted before March 4, 1999, and (iv) does not conflict with the intent of order to obtain a loan or credit, that loan or that is not described in subparagraph (B). this Act generally to permit affiliations that credit approval is contingent upon the pro- (iii) CONSTRUCTION.—Nothing in this para- are authorized or permitted by Federal law. curement by the customer of acceptable in- graph shall be construed to limit the applica- (c) NONDISCRIMINATION.—Except as pro- surance, or that insurance is available from bility of the decision of the Supreme Court vided in any restrictions described in sub- the insured depository institution or whole- in Barnett Bank of Marion County N.A. v. section (b)(2)(B), no State may, by statute, sale financial institution, or any subsidiary Nelson, 116 S. Ct. 1103 (1996) with respect to regulation, order, interpretation, or other or affiliate thereof. a State statute, regulation, order, interpre- action, regulate the insurance activities au- (ix) Restrictions requiring, when an appli- tation, or other action that is not described thorized or permitted under this Act or any cation by a consumer for a loan or other ex- in subparagraph (B). other provision of Federal law of an insured tension of credit from an insured depository (iv) LIMITATION ON INFERENCES.—Nothing in depository institution or wholesale financial institution or wholesale financial institution this paragraph shall be construed to create institution, or subsidiary or affiliate thereof, is pending, and insurance is offered or sold to any inference with respect to any State stat- to the extent that such statute, regulation, the consumer or is required in connection ute, regulation, order, interpretation, or order, interpretation, or other action— S4688 CONGRESSIONAL RECORD — SENATE May 4, 1999 (1) distinguishes by its terms between in- pany (as defined in section 2(o)(7) of the of paragraph (2), such exemption shall cease sured depository institutions or wholesale fi- Bank Holding Company Act of 1956)’’ before to apply to such company and such company nancial institutions, or subsidiaries or affili- the period. shall divest control of each bank it controls ates thereof, and other persons or entities SEC. 108. AMENDMENTS RELATING TO LIMITED before the end of the 180-day period begin- engaged in such activities, in a manner that PURPOSE BANKS. ning on the date that the company receives is in any way adverse to any such insured de- (a) IN GENERAL.—Section 4(f) of the Bank notice from the Board that the company has pository institution or wholesale financial Holding Company Act of 1956 (12 U.S.C. failed to continue to qualify for such exemp- institution, or subsidiary or affiliate thereof; 1843(f)) is amended— tion, unless before the end of such 180-day (2) as interpreted or applied, has or will (1) in paragraph (2)(A)(ii)— period, the company has— have an impact on depository institutions or (A) by striking ‘‘and’’ at the end of sub- ‘‘(A) corrected the condition or ceased the wholesale financial institutions, or subsidi- clause (IX); activity that caused the company to fail to aries or affiliates thereof, that is substan- (B) by inserting ‘‘and’’ after the semicolon continue to qualify for the exemption; and tially more adverse than its impact on other at the end of subclause (X); and ‘‘(B) implemented procedures that are rea- persons or entities providing the same prod- (C) by inserting after subclause (X) the fol- sonably adapted to avoid the reoccurrence of ucts or services or engaged in the same ac- lowing new subclause: such condition or activity.’’. tivities that are not insured depository insti- ‘‘(XI) assets that are derived from, or inci- (b) INDUSTRIAL LOAN COMPANIES AFFILIATE tutions, wholesale financial institutions, or dental to, consumer lending activities in OVERDRAFTS.—Section 2(c)(2)(H) of the Bank subsidiaries or affiliates thereof, or persons which institutions described in section Holding Company Act of 1956 (12 U.S.C. or entities affiliated therewith; 2(c)(2)(F) or section 2(c)(2)(H) are permitted 1841(c)(2)(H)) is amended by inserting before (3) effectively prevents a depository insti- to engage;’’; the period at the end ‘‘, or that is otherwise tution or wholesale financial institution, or (2) in paragraph (2), by striking subpara- permissible for a bank controlled by a com- subsidiary or affiliate thereof, from engaging graph (B) and inserting the following new pany described in section 4(f)(1)’’. subparagraphs: in insurance activities authorized or per- SEC. 109. REPORTS ON ONGOING FTC STUDY OF mitted by this Act or any other provision of ‘‘(B) any bank subsidiary of such company CONSUMER PRIVACY ISSUES. Federal law; or engages in any activity in which the bank With respect to the ongoing multistage (4) conflicts with the intent of this Act was not lawfully engaged as of March 5, 1987, study being conducted by the Federal Trade generally to permit affiliations that are au- unless the bank is well managed and well Commission on consumer privacy issues, the capitalized; thorized or permitted by Federal law be- Commission shall submit to the Congress an ‘‘(C) any bank subsidiary of such company tween insured depository institutions or interim report on the findings and conclu- both— wholesale financial institutions, or subsidi- sions of the Commission, together with such ‘‘(i) accepts demand deposits or deposits aries or affiliates thereof, and persons and recommendations for legislative and admin- that the depositor may withdraw by check or entities engaged in the business of insurance. istrative action as the Commission deter- similar means for payment to third parties; (d) LIMITATION.—Subsections (a) and (b) mines to be appropriate, at the conclusion of and shall not be construed to affect the jurisdic- each stage of such study and a final report at ‘‘(ii) engages in the business of making tion of the securities commission (or any the conclusion of the study. commercial loans (and, for purposes of this agency or office performing like functions) clause, loans made in the ordinary course of SEC. 110. GAO STUDY OF ECONOMIC IMPACT ON of any State, under the laws of such State, to a credit card operation shall not be treated COMMUNITY BANKS AND OTHER investigate and bring enforcement actions, SMALL FINANCIAL INSTITUTIONS. as commercial loans); or consistent with section 18(c) of the Securi- (a) STUDY REQUIRED.—The Comptroller ‘‘(D) after the date of enactment of the General of the United States shall conduct a ties Act of 1933, with respect to fraud or de- Competitive Equality Amendments of 1987, study of the projected economic impact that ceit or unlawful conduct by any person, in any bank subsidiary of such company per- the enactment of this Act will have on finan- connection with securities or securities mits any overdraft (including any intraday transactions. overdraft), or incurs any such overdraft in cial institutions which have total assets of (e) DEFINITION.—For purposes of this sec- such bank’s account at a Federal reserve $100,000,000 or less. (b) REPORT TO THE CONGRESS.—The Comp- tion, the term ‘‘State’’ means any State of bank, on behalf of an affiliate, other than an the United States, the District of Columbia, overdraft described in paragraph (3).’’; and troller General of the United States shall any territory of the United States, Puerto (3) by striking paragraphs (3) and (4) and submit a report to the Congress before the Rico, Guam, American Samoa, the Trust inserting the following new paragraphs: end of the 6-month period beginning on the date of the date of enactment of this Act Territory of the Pacific Islands, the Virgin ‘‘(3) PERMISSIBLE OVERDRAFTS DESCRIBED.— Islands, and the Northern Mariana Islands. For purposes of paragraph (2)(D), an over- containing the findings and conclusions of SEC. 105. MUTUAL BANK HOLDING COMPANIES draft is described in this paragraph if— the Comptroller General with regard to the AUTHORIZED. ‘‘(A) such overdraft results from an inad- study required under subsection (a) and such Section 3(g)(2) of the Bank Holding Com- vertent computer or accounting error that is recommendations for legislative or adminis- pany Act of 1956 (12 U.S.C. 1842(g)(2)) is beyond the control of both the bank and the trative action as the Comptroller General amended to read as follows: affiliate; may determine to be appropriate. ‘‘(2) REGULATIONS.—A bank holding com- ‘‘(B) such overdraft— Subtitle B—Streamlining Supervision of pany organized as a mutual holding company ‘‘(i) is permitted or incurred on behalf of Financial Holding Companies shall be regulated on terms, and shall be sub- an affiliate which is monitored by, reports SEC. 111. STREAMLINING FINANCIAL HOLDING ject to limitations, comparable to those ap- to, and is recognized as a primary dealer by COMPANY SUPERVISION. plicable to any other bank holding com- the Federal Reserve Bank of New York; and Section 5(c) of the Bank Holding Company pany.’’. ‘‘(ii) is fully secured, as required by the Act of 1956 (12 U.S.C. 1844(c)) is amended to SEC. 106. PROHIBITION ON DEPOSIT PRODUC- Board, by bonds, notes, or other obligations read as follows: TION OFFICES. which are direct obligations of the United ‘‘(c) REPORTS AND EXAMINATIONS.— (a) IN GENERAL.—Section 109(d) of the Rie- States or on which the principal and interest ‘‘(1) REPORTS.— gle-Neal Interstate Banking and Branching are fully guaranteed by the United States or ‘‘(A) IN GENERAL.—The Board from time to Efficiency Act of 1994 (12 U.S.C. 1835a(d)) is by securities and obligations eligible for set- time may require any bank holding company amended— tlement on the Federal Reserve book entry and any subsidiary of such company to sub- (1) by inserting ‘‘, the Financial Services system; or mit reports under oath to keep the Board in- Act of 1999,’’ after ‘‘pursuant to this title’’; ‘‘(C) such overdraft— formed as to— and ‘‘(i) is permitted or incurred by or on be- ‘‘(i) its financial condition, systems for (2) by inserting ‘‘or such Act’’ after ‘‘made half of an affiliate that is engaged predomi- monitoring and controlling financial and op- by this title’’. nantly in activities that are financial in na- erating risks, and transactions with deposi- (b) TECHNICAL AND CONFORMING AMEND- ture, and is incurred solely in connection tory institution subsidiaries of the holding MENT.—Section 109(e)(4) of the Riegle-Neal with an activity that is financial in nature, company; and Interstate Banking and Branching Efficiency as determined under section 6(c); and ‘‘(ii) compliance by the company or sub- Act of 1994 (12 U.S.C. 1835a(e)(4)) is amended ‘‘(ii) does not cause the bank to violate any sidiary with applicable provisions of this by inserting ‘‘and any branch of a bank con- provision of section 23A or 23B of the Federal Act. trolled by an out-of-State bank holding com- Reserve Act, either directly, in the case of a ‘‘(B) USE OF EXISTING REPORTS.— pany (as defined in section 2(o)(7) of the bank that is a member of the Federal Re- ‘‘(i) IN GENERAL.—The Board shall, to the Bank Holding Company Act of 1956)’’ before serve System, or by virtue of section 18(j) of fullest extent possible, accept reports in ful- the period. the Federal Deposit Insurance Act, in the fillment of the Board’s reporting require- SEC. 107. CLARIFICATION OF BRANCH CLOSURE case of a bank that is not a member of the ments under this paragraph that a bank REQUIREMENTS. Federal Reserve System. holding company or any subsidiary of such Section 42(d)(4)(A) of the Federal Deposit ‘‘(4) DIVESTITURE IN CASE OF LOSS OF EX- company has provided or been required to Insurance Act (12 U.S.C. 1831r–1(d)(4)(A)) is EMPTION.—If any company described in para- provide to other Federal and State super- amended by inserting ‘‘and any bank con- graph (1) fails to qualify for the exemption visors or to appropriate self-regulatory orga- trolled by an out-of-State bank holding com- provided under such paragraph by operation nizations. May 4, 1999 CONGRESSIONAL RECORD — SENATE S4689

‘‘(ii) AVAILABILITY.—A bank holding com- ‘‘(II) the systems for monitoring and con- ‘‘(i) a bank holding company; or pany or a subsidiary of such company shall trolling such risks; and ‘‘(ii) controlled by a bank holding company provide to the Board, at the request of the ‘‘(iii) monitor compliance with the provi- by reason of ownership by the bank holding Board, a report referred to in clause (i). sions of this Act and those governing trans- company (including through all of its affili- ‘‘(iii) REQUIRED USE OF PUBLICLY REPORTED actions and relationships between any sub- ates) of 25 percent or more of the shares of INFORMATION.—The Board shall, to the fullest sidiary depository institution and its affili- the investment company, where the shares extent possible, accept in fulfillment of any ates. owned by the bank holding company have a reporting or recordkeeping requirements ‘‘(C) RESTRICTED FOCUS OF EXAMINATIONS.— market value equal to more than $1,000,000. under this Act information that is otherwise The Board shall, to the fullest extent pos- ‘‘(4) TRANSFER OF BOARD AUTHORITY TO AP- required to be reported publicly and exter- sible, limit the focus and scope of any exam- PROPRIATE FEDERAL BANKING AGENCY.— nally audited financial statements. ination of a bank holding company to— ‘‘(A) IN GENERAL.—In the case of any bank ‘‘(iv) REPORTS FILED WITH OTHER AGEN- ‘‘(i) the bank holding company; and holding company which is not significantly CIES.—In the event the Board requires a re- ‘‘(ii) any subsidiary of the holding com- engaged in nonbanking activities, the Board, port from a functionally regulated non- pany that, because of— in consultation with the appropriate Federal depository institution subsidiary of a bank ‘‘(I) the size, condition, or activities of the banking agency, may designate the appro- holding company of a kind that is not re- subsidiary; priate Federal banking agency of the lead in- quired by another Federal or State regulator ‘‘(II) the nature or size of transactions be- sured depository institution subsidiary of or appropriate self-regulatory organization, tween such subsidiary and any depository in- such holding company as the appropriate stitution which is also a subsidiary of such the Board shall request that the appropriate Federal banking agency for the bank holding holding company; or regulator or self-regulatory organization ob- company. ‘‘(III) the centralization of functions with- tain such report. If the report is not made ‘‘(B) AUTHORITY TRANSFERRED.—An agency in the holding company system, available to the Board, and the report is nec- designated by the Board under subparagraph could have a materially adverse effect on the essary to assess a material risk to the bank (A) shall have the same authority as the safety and soundness of any depository insti- holding company or any of its subsidiary de- Board under this Act to— tution affiliate of the holding company. pository institutions or compliance with this ‘‘(i) examine and require reports from the ‘‘(D) DEFERENCE TO BANK EXAMINATIONS.— bank holding company and any affiliate of Act, the Board may require such subsidiary The Board shall, to the fullest extent pos- to provide such a report to the Board. such company (other than a depository insti- sible, use, for the purposes of this paragraph, tution) under section 5; ‘‘(C) DEFINITION.—For purposes of this sub- the reports of examinations of depository in- section, the term ‘functionally regulated ‘‘(ii) approve or disapprove applications or stitutions made by the appropriate Federal transactions under section 3; nondepository institution’ means— and State depository institution supervisory ‘‘(i) a broker or dealer registered under the ‘‘(iii) take actions and impose penalties authority. under subsections (e) and (f) of section 5 and Securities Exchange Act of 1934; ‘‘(E) DEFERENCE TO OTHER EXAMINATIONS.— ‘‘(ii) an investment adviser registered section 8; and The Board shall, to the fullest extent pos- ‘‘(iv) take actions regarding the holding under the Investment Advisers Act of 1940, or sible, address the circumstances which might with any State, with respect to the invest- company, any affiliate of the holding com- otherwise permit or require an examination pany (other than a depository institution), ment advisory activities of such investment by the Board by forgoing an examination and adviser and activities incidental to such in- or any institution-affiliated party of such instead reviewing the reports of examination company or affiliate under the Federal De- vestment advisory activities; made of— ‘‘(iii) an insurance company subject to su- posit Insurance Act and any other statute ‘‘(i) any registered broker or dealer by or which the Board may designate. pervision by a State insurance commission, on behalf of the Securities and Exchange agency, or similar authority; and ‘‘(C) AGENCY ORDERS.—Section 9 of this Act Commission; and section 105 of the Bank Holding Com- ‘‘(iv) an entity subject to regulation by the ‘‘(ii) any registered investment adviser Commodity Futures Trading Commission, pany Act Amendments of 1970, shall apply to properly registered by or on behalf of either orders issued by an agency designated under with respect to the commodities activities of the Securities and Exchange Commission or such entity and activities incidental to such subparagraph (A) in the same manner such any State; sections apply to orders issued by the Board. commodities activities. ‘‘(iii) any licensed insurance company by ‘‘(5) FUNCTIONAL REGULATION OF SECURITIES ‘‘(2) EXAMINATIONS.— or on behalf of any state regulatory author- AND INSURANCE ACTIVITIES.—The Board shall ‘‘(A) EXAMINATION AUTHORITY.— ity responsible for the supervision of insur- defer to— ‘‘(i) IN GENERAL.—The Board may make ex- ance companies; and ‘‘(A) the Securities and Exchange Commis- aminations of each bank holding company ‘‘(iv) any other subsidiary that the Board sion with regard to all interpretations of, and each subsidiary of a bank holding com- finds to be comprehensively supervised by a and the enforcement of, applicable Federal pany. Federal or State authority. securities laws (and rules, regulations, or- ‘‘(ii) FUNCTIONALLY REGULATED NONDEPOSI- ‘‘(3) CAPITAL.— ders, and other directives issued thereunder) TORY INSTITUTION SUBSIDIARIES.—Notwith- ‘‘(A) IN GENERAL.—The Board shall not, by relating to the activities, conduct, and oper- standing clause (i), the Board may make ex- regulation, guideline, order or otherwise, ations of registered brokers, dealers, invest- aminations of a functionally regulated non- prescribe or impose any capital or capital ment advisers, and investment companies; depository institution subsidiary of a bank adequacy rules, guidelines, standards, or re- ‘‘(B) the relevant State securities authori- holding company only if— quirements on any subsidiary of a financial ‘‘(I) the Board has reasonable cause to be- holding company that is not a depository in- ties with regard to all interpretations of, and lieve that such subsidiary is engaged in ac- stitution and— the enforcement of, applicable State securi- tivities that pose a material risk to an affili- ‘‘(i) is in compliance with applicable cap- ties laws (and rules, regulations, orders, and ated depository institution, or ital requirements of another Federal regu- other directives issued thereunder) relating ‘‘(II) based on reports and other available latory authority (including the Securities to the activities, conduct, and operations of information, the Board has reasonable cause and Exchange Commission) or State insur- registered brokers, dealers, and investment to believe that a subsidiary is not in compliance authority; or advisers; and ance with this Act or with provisions relat- ‘‘(ii) is properly registered as an invest- ‘‘(C) the relevant State insurance authori- ing to transactions with an affiliated deposi- ment adviser under the Investment Advisers ties with regard to all interpretations of, and tory institution and the Board cannot make Act of 1940, or with any State. the enforcement of, applicable State insurance laws (and rules, regulations, orders, and such determination through examination of ‘‘(B) RULE OF CONSTRUCTION.—Subpara- the affiliated depository institution or bank graph (A) shall not be construed as pre- other directives issued thereunder) relating holding company. venting the Board from imposing capital or to the activities, conduct, and operations of insurance companies and insurance agents.’’. ‘‘(B) LIMITATIONS ON EXAMINATION AUTHOR- capital adequacy rules, guidelines, stand- SEC. 112. ELIMINATION OF APPLICATION RE- ITY FOR BANK HOLDING COMPANIES AND SUB- ards, or requirements with respect to activi- QUIREMENT FOR FINANCIAL HOLD- SIDIARIES .—Subject to subparagraph (A)(ii), ties of a registered investment adviser other ING COMPANIES. the Board may make examinations under than investment advisory activities or ac- (a) PREVENTION OF DUPLICATIVE FILINGS.— subparagraph (A)(i) of each bank holding tivities incidental to investment advisory Section 5(a) of the Bank Holding Company company and each subsidiary of such holding activities. Act of 1956 (12 U.S.C. 1844(a)) is amended by company in order to— ‘‘(C) LIMITATIONS ON INDIRECT ACTION.—In adding the following new sentence at the ‘‘(i) inform the Board of the nature of the developing, establishing, or assessing hold- end: ‘‘A declaration filed in accordance with operations and financial condition of the ing company capital or capital adequacy section 6(b)(1)(D) shall satisfy the require- holding company and such subsidiaries; rules, guidelines, standards, or requirements ments of this subsection with regard to the ‘‘(ii) inform the Board of— for purposes of this paragraph, the Board registration of a bank holding company but ‘‘(I) the financial and operational risks shall not take into account the activities, not any requirement to file an application to within the holding company system that operations, or investments of an affiliated acquire a bank pursuant to section 3.’’. may pose a threat to the safety and sound- investment company registered under the In- (b) DIVESTITURE PROCEDURES.—Section ness of any subsidiary depository institution vestment Company Act of 1940, if the invest- 5(e)(1) of the Bank Holding Company Act of of such holding company; and ment company is not— 1956 (12 U.S.C. 1844(e)(1)) is amended— S4690 CONGRESSIONAL RECORD — SENATE May 4, 1999

(1) by striking ‘‘Financial Institutions Su- ‘‘(4) CONDITIONS BEFORE DIVESTITURE.—Dur- spect and examine any registered investment pervisory Act of 1966, order’’ and inserting ing the period beginning on the date an order company that is not a bank holding company ‘‘Financial Institutions Supervisory Act of to divest is issued by the Board under para- or a savings and loan holding company. 1966, at the election of the bank holding graph (3) to a bank holding company and (2) PROHIBITION ON BANKING AGENCIES.—Ex- company— ending on the date the divestiture is com- cept as provided in paragraph (3), a Federal ‘‘(A) order’’; and pleted, the Board may impose any conditions banking agency may not inspect or examine (2) by striking ‘‘shareholders of the bank or restrictions on the holding company’s any registered investment company that is holding company. Such distribution’’ and in- ownership or operation of the insured deposi- not a bank holding company or a savings and serting ‘‘shareholders of the bank holding tory institution, including restricting or pro- loan holding company. company; or hibiting transactions between the insured (3) CERTAIN EXAMINATIONS AUTHORIZED.— ‘‘(B) order the bank holding company, after depository institution and any affiliate of Nothing in this subsection prevents the Fed- due notice and opportunity for hearing, and the institution, as are appropriate under the eral Deposit Insurance Corporation, if the after consultation with the primary super- circumstances.’’. Corporation finds it necessary to determine visor for the bank, which shall be the Comp- SEC. 114. PRUDENTIAL SAFEGUARDS. the condition of an insured depository insti- troller of the Currency in the case of a na- Section 5 of the Bank Holding Company tution for insurance purposes, from exam- tional bank, and the Federal Deposit Insur- Act of 1956 (12 U.S.C. 1844) is amended by in- ining an affiliate of any insured depository ance Corporation and the appropriate State serting after subsection (g) (as added by sec- institution, pursuant to its authority under supervisor in the case of an insured non- tion 113 of this subtitle) the following new section 10(b)(4) of the Federal Deposit Insur- member bank, to terminate (within 120 days subsection: ance Act, as may be necessary to disclose or such longer period as the Board may di- ‘‘(h) PRUDENTIAL SAFEGUARDS.— fully the relationship between the depository rect) the ownership or control of any such ‘‘(1) IN GENERAL.—The Board and the ap- institution and the affiliate, and the effect of bank by such company. propriate Federal banking agency may, such relationship on the depository institu- ‘‘The distribution referred to in subpara- jointly, by regulation or order, impose, mod- tion. graph (A)’’. ify, or eliminate restrictions or require- (b) EXAMINATION RESULTS AND OTHER IN- SEC. 113. AUTHORITY OF STATE INSURANCE REG- ments on relationships or transactions be- FORMATION.—The Commission shall provide ULATOR AND SECURITIES AND EX- to any Federal banking agency, upon re- CHANGE COMMISSION. tween a depository institution subsidiary of a bank holding company and any affiliate of quest, the results of any examination, re- Section 5 of the Bank Holding Company ports, records, or other information with re- Act of 1956 (12 U.S.C. 1844) is amended by add- such depository institution which the Board spect to any registered investment company ing at the end the following new subsection: and the appropriate Federal banking agency to the extent necessary for the agency to ‘‘(g) AUTHORITY OF STATE INSURANCE REGU- jointly find is consistent with the public in- carry out its statutory responsibilities. LATOR AND THE SECURITIES AND EXCHANGE terest, the purposes of this Act, the Finan- (c) DEFINITIONS.—For purposes of this sec- COMMISSION.— cial Services Act of 1999, the Federal Reserve tion, the following definitions shall apply: ‘‘(1) IN GENERAL.—Notwithstanding any Act, and other Federal law applicable to de- (1) BANK HOLDING COMPANY.—The term other provision of law, any regulation, order, pository institution subsidiaries of bank ‘‘bank holding company’’ has the same or other action of the Board which requires holding companies and the standards in meaning as in section 2 of the Bank Holding a bank holding company to provide funds or paragraph (2). Company Act of 1956. other assets to a subsidiary insured deposi- ‘‘(2) STANDARDS.—The Board and the appro- (2) COMMISSION.—The term ‘‘Commission’’ tory institution shall not be effective nor en- priate Federal banking agency may exercise means the Securities and Exchange Commis- forceable if— joint authority under paragraph (1) if they sion. ‘‘(A) such funds or assets are to be provided find that such action would— (3) FEDERAL BANKING AGENCY.—The term by— ‘‘(A) avoid any significant risk to the safe- ‘‘Federal banking agency’’ has the same ‘‘(i) a bank holding company that is an in- ty and soundness of depository institutions meaning as in section 3(z) of the Federal De- surance company or is a broker or dealer or any Federal deposit insurance fund; posit Insurance Act. registered under the Securities Exchange ‘‘(B) enhance the financial stability of (4) REGISTERED INVESTMENT COMPANY.—The Act of 1934; or bank holding companies; term ‘‘registered investment company’’ ‘‘(ii) an affiliate of the depository institu- ‘‘(C) avoid conflicts of interest or other means an investment company which is reg- tion which is an insurance company or a abuses; istered with the Commission under the In- broker or dealer registered under such Act; ‘‘(D) enhance the privacy of customers of vestment Company Act of 1940. and depository institutions; or (5) SAVINGS AND LOAN HOLDING COMPANY.— ‘‘(B) the State insurance authority for the ‘‘(E) promote the application of national The term ‘‘savings and loan holding com- insurance company or the Securities and Ex- treatment and equality of competitive op- pany’’ has the same meaning as in section change Commission for the registered broker portunity between nonbank affiliates owned 10(a)(1)(D) of the Home Owners’ Loan Act. or dealer, as the case may be, determines in or controlled by domestic bank holding com- writing sent to the holding company and the panies and nonbank affiliates owned or con- SEC. 116. LIMITATION ON RULEMAKING, PRUDEN- trolled by foreign banks operating in the TIAL, SUPERVISORY, AND ENFORCE- Board that the holding company shall not MENT AUTHORITY OF THE BOARD. provide such funds or assets because such ac- United States. The Bank Holding Company Act of 1956 (12 tion would have a material adverse effect on ‘‘(3) REVIEW.—The appropriate Federal U.S.C. 1841 et seq.) is amended by inserting the financial condition of the insurance com- banking agency shall regularly— after section 10 the following new section: ‘‘(A) review all restrictions or require- pany or the broker or dealer, as the case may ‘‘SEC. 10A. LIMITATION ON RULEMAKING, PRU- be. ments established pursuant to paragraph (1) DENTIAL, SUPERVISORY, AND EN- ‘‘(2) NOTICE TO STATE INSURANCE AUTHORITY to determine whether there is a continuing FORCEMENT AUTHORITY OF THE OR SEC REQUIRED.—If the Board requires a need for any such restriction or requirement BOARD. bank holding company, or an affiliate of a to carry out the purposes of the Act, includ- ‘‘(a) LIMITATION ON DIRECT ACTION.— bank holding company, which is an insuring any purpose described in paragraph (2); ‘‘(1) IN GENERAL.—The Board may not pre- ance company or a broker or dealer described and scribe regulations, issue or seek entry of or- in paragraph (1)(A) to provide funds or assets ‘‘(B) propose the modification or elimi- ders, impose restraints, restrictions, guide- to an insured depository institution sub- nation of any restriction or requirement lines, requirements, safeguards, or stand- sidiary of the holding company pursuant to that it finds is no longer required for such ards, or otherwise take any action under or any regulation, order, or other action of the purposes. pursuant to any provision of this Act or sec- Board referred to in paragraph (1), the Board ‘‘(4) FOREIGN BANKS.—The Board may, by tion 8 of the Federal Deposit Insurance Act shall promptly notify the State insurance regulation or order, impose restrictions or against or with respect to a regulated sub- authority for the insurance company or the requirements on relationships or trans- sidiary of a bank holding company unless the Securities and Exchange Commission, as the actions between a foreign bank and any affil- action is necessary to prevent or redress an case may be, of such requirement. iate in the United States of such foreign unsafe or unsound practice or breach of fidu- ‘‘(3) DIVESTITURE IN LIEU OF OTHER AC- bank that the Board finds are consistent ciary duty by such subsidiary that poses a TION.—If the Board receives a notice de- with the public interest, the purposes of this material risk to— scribed in paragraph (1)(B) from a State in- Act, the Financial Services Act of 1999, the ‘‘(A) the financial safety, soundness, or surance authority or the Securities and Ex- Federal Reserve Act, and other Federal law stability of an affiliated depository institu- change Commission with regard to a bank applicable to foreign banks and their affili- tion; or holding company or affiliate referred to in ates in the United States, and the standards ‘‘(B) the domestic or international pay- that paragraph, the Board may order the in paragraphs (2) and (3).’’. ment system. bank holding company to divest the insured SEC. 115. EXAMINATION OF INVESTMENT COMPA- ‘‘(2) CRITERIA FOR BOARD ACTION.—The depository institution not later than 180 NIES. Board shall not take action otherwise per- days after receiving the notice, or such (a) EXCLUSIVE COMMISSION AUTHORITY.— mitted under paragraph (1) unless the Board longer period as the Board determines con- (1) IN GENERAL.—Except as provided in finds that it is not reasonably possible to ef- sistent with the safe and sound operation of paragraph (3), the Commission shall be the fectively protect against the material risk at the insured depository institution. sole Federal agency with authority to in- issue through action directed at or against May 4, 1999 CONGRESSIONAL RECORD — SENATE S4691 the affiliated depository institution or (1) INFORMATION OF THE BOARD.—Upon the (2) PRIVILEGE.—The provision pursuant to against depository institutions generally. request of the appropriate insurance regu- this section of information or material by a ‘‘(b) LIMITATION ON INDIRECT ACTION.—The lator of any State, the Board may provide Federal banking agency or State insurance Board may not prescribe regulations, issue any information of the Board regarding the regulator shall not constitute a waiver of, or or seek entry of orders, impose restraints, financial condition, risk management poli- otherwise affect, any privilege to which the restrictions, guidelines, requirements, safe- cies, and operations of any financial holding information or material is otherwise subject. guards, or standards, or otherwise take any company that controls a company that is en- (f) DEFINITIONS.—For purposes of this sec- action under or pursuant to any provision of gaged in insurance activities and is regu- tion, the following definitions shall apply: this Act or section 8 of the Federal Deposit lated by such State insurance regulator, and (1) APPROPRIATE FEDERAL BANKING AGENCY; Insurance Act against or with respect to a fi- regarding any transaction or relationship be- INSURED DEPOSITORY INSTITUTION.—The terms nancial holding company or a wholesale fi- tween such an insurance company and any ‘‘appropriate Federal banking agency’’ and nancial holding company where the purpose affiliated depository institution. The Board ‘‘insured depository institution’’ have the or effect of doing so would be to take action may provide any other information to the same meanings as in section 3 of the Federal indirectly against or with respect to a regu- appropriate State insurance regulator that Deposit Insurance Act. lated subsidiary that may not be taken di- the Board believes is necessary or appro- (2) BOARD; FINANCIAL HOLDING COMPANY; rectly against or with respect to such sub- priate to permit the State insurance regu- AND WHOLESALE FINANCIAL INSTITUTION.—The sidiary in accordance with subsection (a). lator to administer and enforce applicable terms ‘‘Board’’, ‘‘financial holding com- ‘‘(c) ACTIONS SPECIFICALLY AUTHORIZED.— State insurance laws. pany’’, and ‘‘wholesale financial institution’’ Notwithstanding subsection (a), the Board (2) BANKING AGENCY INFORMATION.—Upon have the same meanings as in section 2 of may take action under this Act or section 8 the request of the appropriate insurance reg- the Bank Holding Company Act of 1956. of the Federal Deposit Insurance Act to en- ulator of any State, the appropriate Federal SEC. 118. EQUIVALENT REGULATION AND SUPER- force compliance by a regulated subsidiary banking agency may provide any informa- VISION. with Federal law that the Board has specific tion of the agency regarding any transaction (a) IN GENERAL.—Notwithstanding any jurisdiction to enforce against such sub- or relationship between a depository institu- other provision of law, the provisions of— sidiary. tion supervised by such Federal banking (1) section 5(c) of the Bank Holding Com- ‘‘(d) REGULATED SUBSIDIARY DEFINED.—For agency and any affiliated company that is pany Act of 1956 (as amended by this Act) purposes of this section, the term ‘regulated engaged in insurance activities regulated by that limit the authority of the Board of Gov- subsidiary’ means any company that is not a such State insurance regulator. The appro- ernors of the Federal Reserve System to re- bank holding company and is— priate Federal banking agency may provide quire reports from, to make examinations of, ‘‘(1) a broker or dealer registered under the any other information to the appropriate or to impose capital requirements on bank Securities Exchange Act of 1934; State insurance regulator that the agency holding companies and their nonbank sub- ‘‘(2) a registered investment adviser, prop- believes is necessary or appropriate to per- sidiaries; and erly registered by or on behalf of either the mit the State insurance regulator to admin- (2) section 10A of the Bank Holding Com- Securities and Exchange Commission or any ister and enforce applicable State insurance pany Act of 1956 (as added by this Act) that State, with respect to the investment advi- laws. limit whatever authority the Board might sory activities of such investment adviser (3) STATE INSURANCE REGULATOR INFORMA- otherwise have to take direct or indirect ac- and activities incidental to such investment TION.—Upon the request of the Board or the tion with respect to bank holding companies advisory activities; appropriate Federal banking agency, a State and their nonbank subsidiaries, ‘‘(3) an investment company registered insurance regulator may provide any exam- shall also limit whatever authority that the under the Investment Company Act of 1940; ination or other reports, records, or other in- Federal Deposit Insurance Corporation ‘‘(4) an insurance company or an insurance formation to which such insurance regulator might otherwise have under any statute to agency subject to supervision by a State in- may have access with respect to a company require reports, make examinations, impose surance commission, agency, or similar au- which— capital requirements or take any other di- thority; or (A) is engaged in insurance activities and rect or indirect action with respect to bank ‘‘(5) an entity subject to regulation by the regulated by such insurance regulator; and holding companies and their nonbank sub- Commodity Futures Trading Commission, (B) is an affiliate of an insured depository sidiaries (including nonbank subsidiaries of with respect to the commodities activities of institution, wholesale financial institution, depository institutions), subject to the same such entity and activities incidental to such or financial holding company. standards and requirements as are applicable commodities activities.’’. (c) CONSULTATION.—Before making any de- to the Board under such provisions. SEC. 117. INTERAGENCY CONSULTATION. termination relating to the initial affiliation (b) CERTAIN EXAMINATIONS AUTHORIZED.— of, or the continuing affiliation of, an in- Nothing in this section shall prevent the (a) PURPOSE.—It is the intention of Con- sured depository institution, wholesale fi- gress that the Board of Governors of the Fed- Federal Deposit Insurance Corporation, if nancial institution, or financial holding eral Reserve System, as the umbrella super- the Corporation finds it necessary to deter- company with a company engaged in insur- visor for financial holding companies, and mine the condition of an insured depository ance activities, the appropriate Federal the State insurance regulators, as the func- institution for insurance purposes, from ex- banking agency shall consult with the appro- tional regulators of companies engaged in in- amining an affiliate of any insured deposi- priate State insurance regulator of such tory institution, pursuant to its authority surance activities, coordinate efforts to su- company and take the views of such insur- pervise companies that control both a depos- under section 10(b)(4) of the Federal Deposit ance regulator into account in making such Insurance Act, as may be necessary to dis- itory institution and a company engaged in determination. insurance activities regulated under State close fully the relationship between the de- (d) EFFECT ON OTHER AUTHORITY.—Nothing pository institution and the affiliate, and law. In particular, Congress believes that the in this section shall limit in any respect the Board and the State insurance regulators the effect of such relationship on the deposi- authority of the appropriate Federal banking tory institution. should share, on a confidential basis, infor- agency with respect to an insured depository mation relevant to the supervision of compa- institution, wholesale financial institution, SEC. 119. PROHIBITION ON FDIC ASSISTANCE TO AFFILIATES AND SUBSIDIARIES. nies that control both a depository institu- or bank holding company or any affiliate Section 11(a)(4)(B) of the Federal Deposit tion and a company engaged in insurance ac- thereof under any provision of law. Insurance Act (12 U.S.C. 1821(a)(4)(B)) is tivities, including information regarding the (e) CONFIDENTIALITY AND PRIVILEGE.— amended by striking ‘‘to benefit any share- financial health of the consolidated organi- (1) CONFIDENTIALITY.—The appropriate zation and information regarding trans- Federal banking agency shall not provide holder of’’ and inserting ‘‘to benefit any actions and relationships between insurance any information or material that is entitled shareholder, affiliate (other than an insured companies and affiliated depository institu- to confidential treatment under applicable depository institution that receives assist- tions. The appropriate Federal banking agen- Federal banking agency regulations, or other ance in accordance with the provisions of cies for depository institutions should also applicable law, to a State insurance regu- this Act), or subsidiary of’’. share, on a confidential basis, information lator unless such regulator agrees to main- Subtitle C—Subsidiaries of National Banks with the relevant State insurance regulators tain the information or material in con- SEC. 121. SUBSIDIARIES OF NATIONAL BANKS AU- regarding transactions and relationships be- fidence and to take all reasonable steps to THORIZED TO ENGAGE IN FINAN- tween depository institutions and affiliated oppose any effort to secure disclosure of the CIAL ACTIVITIES. companies engaged in insurance activities. information or material by the regulator. (a) FINANCIAL SUBSIDIARIES OF NATIONAL The purpose of this section is to encourage The appropriate Federal banking agency BANKS.—Chapter one of title LXII of the Re- this coordination and confidential sharing of shall treat as confidential any information vised Statutes of United States (12 U.S.C. 21 information, and to thereby improve both or material obtained from a State insurance et seq.) is amended— the efficiency and the quality of the super- regulator that is entitled to confidential (1) by redesignating section 5136A (12 vision of financial holding companies and treatment under applicable State regula- U.S.C. 25a) as section 5136C; and their affiliated depository institutions and tions, or other applicable law, and take all (2) by inserting after section 5136 (12 U.S.C. companies engaged in insurance activities. reasonable steps to oppose any effort to se- 24) the following new section: (b) EXAMINATION RESULTS AND OTHER IN- cure disclosure of the information or mate- ‘‘SEC. 5136A. SUBSIDIARIES OF NATIONAL BANKS. FORMATION.— rial by the Federal banking agency. ‘‘(a) ACTIVITIES PERMISSIBLE.— S4692 CONGRESSIONAL RECORD — SENATE May 4, 1999

‘‘(1) IN GENERAL.—A subsidiary of a na- ‘‘(i) CONTENT OF AGREEMENT.—Not later Revised Statutes of the United States is tional bank may— than 45 days after the date on which the na- amended— ‘‘(A) engage in any activity that is permis- tional bank receives a notice under subpara- (1) by redesignating the item relating to sible for the parent national bank; graph (A) (or such additional period of time section 5136A as section 5136C; and ‘‘(B) engage in any activity that is author- as the Comptroller may permit), the na- (2) by inserting after the item relating to ized under the Bank Service Company Act, tional bank or its insured depository institu- section 5136 the following new item: section 25 or 25A of the Federal Reserve Act, tion affiliate failing to meet the require- ‘‘5136A. Subsidiaries of national banks.’’. or any other Federal statute that expressly ments of paragraph (1) shall provide a plan authorizes national banks to own or control to the appropriate Federal banking agency SEC. 122. SUBSIDIARIES OF STATE BANKS. subsidiaries; and for such institution to correct the conditions (a) SUBSIDIARIES OF STATE BANKS AUTHOR- ‘‘(C) engage in any activity that is permis- described in the notice. IZED TO ENGAGE IN FINANCIAL ACTIVITIES.— sible for a bank holding company under any ‘‘(ii) COMPTROLLER MAY IMPOSE LIMITA- Section 24(d) of the Federal Deposit Insur- provision of section 6(c) of the Bank Holding TIONS.—Until the conditions giving rise to ance Act (12 U.S.C. 1831a(d)) is amended by Company Act of 1956, other than— the notice referred to in clause (i) are cor- adding at the end the following new para- ‘‘(i) paragraph (3)(B) of that section (relat- rected, the Comptroller may (notwith- graphs: ing to insurance activities), insofar as that standing any other provision of law) impose ‘‘(4) CONDITIONS ON CERTAIN ACTIVITIES.— paragraph (3)(B) permits a bank holding such limitations on the conduct of the busi- ‘‘(A) IN GENERAL.—No subsidiary of a State company to engage as principal in insuring, ness of the national bank or the financial guaranteeing, or indemnifying against loss, bank shall engage as principal in an activity subsidiary of the national bank as the Comp- that is not described in subparagraph (A) or harm, damage, illness, disability, or death, troller determines to be appropriate under or in providing or issuing annuities; and (B) of section 5136A(a)(1) of the Revised Stat- the circumstances. utes of the United States unless the State ‘‘(ii) paragraph (3)(I) of that section (relat- ‘‘(iii) CERTAIN FAILURES TO COMPLY.—A na- ing to insurance company investments). bank is in compliance with the requirements tional bank shall not be required to divest of subsection (b) of that section 5136A and re- ‘‘(2) ACTIVITY LIMITATIONS.—In addition to any financial subsidiary held, or terminate any other limitation imposed on the activity ceives the approval of the appropriate Fed- any activity conducted pursuant to, sub- eral banking agency. of subsidiaries of national banks, a subsection (a) solely because of a failure to com- ‘‘(B) APPLICATION OF SECTION 5136A OF RE- sidiary of a national bank may not, pursuant ply with subsection (b)(1)(D). to paragraph (1)— VISED STATUTES.—For purposes of applying ‘‘(C) FAILURE TO CORRECT.—If the condi- section 5136A of the Revised Statutes of the ‘‘(A) engage as principal in insuring, guar- tions described in the notice under subpara- anteeing, or indemnifying against loss, United States to the activities of a sub- graph (A) are not corrected before the end of sidiary of a State bank under this harm, damage, illness, disability, or death the 180-day period beginning on the date on (other than in connection with credit-related paragraph— which the bank receives the notice, the ‘‘(i) all references in that section to a na- insurance) or in providing or issuing annu- Comptroller may (notwithstanding any other ities; or tional bank shall be deemed to be references provision of law) require, under such terms to a State bank; ‘‘(B) engage in real estate investment or and conditions as the Comptroller may development activities, ‘‘(ii) all references in that section to the impose— (except to the extent that a Federal statute Comptroller of the Currency shall be deemed ‘‘(i) that the national bank divest control expressly authorizes a national bank to en- to be references to the appropriate Federal of each financial subsidiary engaged in an gage directly in such an activity). banking agency with respect to such State activity that is not permissible for the bank ‘‘(3) SIZE FACTOR WITH REGARD TO FREE- bank; and to engage in directly; or STANDING NATIONAL BANKS.—A national bank ‘‘(iii) all references to regulations and or- ‘‘(ii) that each financial subsidiary of the which has total assets of $10,000,000,000 or ders of the Comptroller shall be deemed to be national bank cease any activity that is not more may not control a subsidiary engaged references to regulations and orders of the permissible for the bank to engage in di- in activities pursuant to paragraph (1) or (2) appropriate Federal banking agency. rectly. unless such national bank is a subsidiary of ‘‘(C) NOTIFICATION OF NONCOMPLIANCE.—The a bank holding company. ‘‘(c) DEFINITIONS.—For purposes of this sec- Board of Governors of the Federal Reserve ‘‘(b) REQUIREMENTS APPLICABLE TO NA- tion, the following definitions shall apply: System, the Corporation, the Comptroller of TIONAL BANKS WITH FINANCIAL SUBSIDI- ‘‘(1) AFFILIATE.—The term ‘affiliate’ has the Currency, and the Office of Thrift Super- ARIES.— the same meaning in section 3 of the Federal vision shall establish procedures for noti- ‘‘(1) IN GENERAL.—A financial subsidiary of Deposit Insurance Act. fying the appropriate Federal banking agen- a national bank may engage in activities ‘‘(2) FINANCIAL SUBSIDIARY.—The term ‘fi- cy if a national bank, State bank, or savings pursuant to subsection (a)(1)(C) only if— nancial subsidiary’ means a company that— association that is affiliated with a State ‘‘(A) the national bank is well capitalized, ‘‘(A) is a subsidiary of an insured bank; and bank under this paragraph fails to meet the is well managed, and achieved the rating de- ‘‘(B) is engaged in any financial activity requirements described in subparagraph scribed in section 6(b)(1)(C) of the Bank that is not otherwise permissible under sub- (A).’’. Holding Company Act of 1956, during the paragraph (A) or (B) of subsection (a)(1) of (b) FINANCIAL SUBSIDIARIES OF STATE MEM- most recent examination of the bank by the this section. BER BANKS.—The 20th undesignated para- ‘‘(3) SUBSIDIARY.—The term ‘subsidiary’ Comptroller of the Currency; graph of section 9 of the Federal Reserve Act has the same meaning as in section 2 of the ‘‘(B) each insured depository institution af- (12 U.S.C. 335) is amended by adding at the Bank Holding Company Act of 1956. filiate of the national bank is well capital- end the following new sentence: ‘‘To the ex- ‘‘(4) WELL CAPITALIZED.—The term ‘well ized, is well managed, and achieved the rat- tent permitted under State law, a State capitalized’ has the same meaning as in sec- ing described in section 6(b)(1)(C) of the member bank may acquire, establish, or re- tion 38 of the Federal Deposit Insurance Act. Bank Holding Company Act of 1956, during tain a financial subsidiary (as defined in sec- For purposes of this section, the appropriate the most recent examination of the institution 5136A(c) of the Revised Statutes of the Federal banking agency shall have exclusive tion by the appropriate Federal banking United States), except that all references in jurisdiction to determine whether an insured agency; subsection (b) of that section 5136A to the depository institution is well capitalized. ‘‘(C) the national bank and each of the sub- Comptroller of the Currency, the Comp- ‘‘(5) WELL MANAGED.—The term ‘well man- sidiary depository institutions of the same troller, or regulations or orders of the Comp- aged’ means— bank holding company have achieved a rat- troller, shall be deemed to be references to ‘‘(A) in the case of an insured depository ing of ‘satisfactory record of meeting com- the Board or regulations or orders of the institution that has been examined, the munity credit needs’, or better, at the most Board.’’. recent examination of each such institution achievement of— under the Community Reinvestment Act of ‘‘(i) a composite rating of 1 or 2 under the SEC. 123. SAFETY AND SOUNDNESS FIREWALLS 1977; and Uniform Financial Institutions Rating Sys- BETWEEN BANKS AND THEIR FINAN- ‘‘(D) the national bank has received the ap- tem (or an equivalent rating under an equiv- CIAL SUBSIDIARIES. proval of the Comptroller of the Currency by alent rating system) in connection with the (a) PURPOSES.—The purposes of this section regulation or order. most recent examination or subsequent re- are— ‘‘(2) CORRECTIVE PROCEDURE.— view of the insured depository institution; (1) to protect the safety and soundness of ‘‘(A) IN GENERAL.—If a national bank that and any insured bank that has a financial sub- controls a financial subsidiary, or any in- ‘‘(ii) at least a rating of 2 for management, sidiary; sured depository institution affiliated with if that rating is given; or (2) to apply to any transaction between the such national bank, fails to meet the re- ‘‘(B) in the case of an insured depository bank and the financial subsidiary (including quirements of paragraph (1), the Comptroller institution that has not been examined, the a loan, extension of credit, guarantee, or shall give written notice to the national existence and use of managerial resources purchase of assets), other than an equity in- bank to that effect, describing the conditions that the appropriate Federal banking agency vestment, the same restrictions and require- giving rise to the notice. determines are satisfactory.’’. ments as would apply if the financial sub- ‘‘(B) AGREEMENT TO CORRECT CONDITIONS (b) CLERICAL AMENDMENT.—The table of sidiary were a subsidiary of a bank holding REQUIRED.— sections for chapter one of title LXII of the company having control of the bank; and May 4, 1999 CONGRESSIONAL RECORD — SENATE S4693

(3) to apply to any equity investment of THE BANK.—For purposes of applying this sec- same meanings as in section 3 of the Securi- the bank in the financial subsidiary restriction and section 23B to a transaction be- ties Exchange Act of 1934.’’. tions and requirements equivalent to those tween a financial subsidiary of a bank and SEC. 125. MISREPRESENTATIONS REGARDING DE- that would apply if— the bank (or between such financial sub- POSITORY INSTITUTION LIABILITY (A) the bank paid a dividend in the same sidiary and any other subsidiary of the bank FOR OBLIGATIONS OF AFFILIATES. dollar amount to a bank holding company that is not a financial subsidiary), and not- (a) IN GENERAL.—Chapter 47 of title 18, having control of the bank; and withstanding subsection (b)(2) of this section United States Code, is amended by inserting (B) the bank holding company used the and section 23B(d)(1)— after section 1007 the following new section: proceeds of the dividend to make an equity ‘‘(A) the financial subsidiary of the bank— ‘‘§ 1008. Misrepresentations regarding finan- investment in a subsidiary that was engaged ‘‘(i) shall be an affiliate of the bank and of cial institution liability for obligations of in the same activities as the financial sub- any other subsidiary of the bank that is not affiliates sidiary of the bank. a financial subsidiary; and ‘‘(a) IN GENERAL.—No institution-affiliated (b) SAFETY AND SOUNDNESS FIREWALLS AP- ‘‘(ii) shall not be deemed a subsidiary of party of an insured depository institution or PLICABLE TO SUBSIDIARIES OF BANKS.—The the bank; and institution-affiliated party of a subsidiary or Federal Deposit Insurance Act (12 U.S.C. 1811 ‘‘(B) a purchase of or investment in equity affiliate of an insured depository institution et seq.) is amended by adding at the end the securities issued by the financial subsidiary shall fraudulently represent that the institu- following new section: shall not be deemed to be a covered trans- tion is or will be liable for any obligation of ‘‘SEC. 45. SAFETY AND SOUNDNESS FIRE WALLS action. a subsidiary or other affiliate of the institu- APPLICABLE TO SUBSIDIARIES OF ‘‘(3) APPLICATION TO TRANSACTIONS BE- tion. BANKS. TWEEN FINANCIAL SUBSIDIARY AND NONBANK ‘‘(b) CRIMINAL PENALTY.—Whoever violates ‘‘(a) LIMITING THE EQUITY INVESTMENT OF A AFFILIATES.— subsection (a) shall be fined under title, im- BANK IN A SUBSIDIARY.— ‘‘(A) IN GENERAL.—A transaction between a prisoned for not more than 1 year, or both. ‘‘(1) CAPITAL DEDUCTION.—In determining financial subsidiary and an affiliate of the fi- ‘‘(c) INSTITUTION-AFFILIATED PARTY DE- whether an insured bank complies with ap- nancial subsidiary (that is not a subsidiary FINED.—For purposes of this section, the plicable regulatory capital standards, the ap- of a bank) shall not be deemed to be a trans- term ‘institution-affiliated party’ with re- propriate Federal banking agency shall de- action between a subsidiary of a bank and an spect to a subsidiary or affiliate has the duct from assets and tangible equity of the affiliate of the bank for purposes of section same meaning as in section 3 of the Federal bank the aggregate amount of the out- 23A or section 23B of this Act. Deposit Insurance Act, except that ref- standing equity investments of the bank in ‘‘(B) CERTAIN AFFILIATES EXCLUDED.—For erences to an insured depository institution the financial subsidiaries of the bank, and purposes of this paragraph and notwith- shall be deemed to be references to a sub- the assets and liabilities of such financial standing paragraph (4), the term ‘affiliate’ sidiary or affiliate of an insured depository subsidiaries shall not be consolidated with shall not include a bank, or a subsidiary of a institution. those of the bank. bank that is engaged exclusively in activi- ‘‘(d) OTHER DEFINITIONS.—For purposes of ‘‘(2) INVESTMENT LIMITATION.—An insured ties permissible for a national bank to en- this section, the terms ‘affiliate’, ‘insured bank may not, without the prior approval of gage in directly or activities referred to in depository institution’, and ‘subsidiary’ have the appropriate Federal banking agency, section 5136A(a)(1)(B) of the Revised Statutes same meanings as in section 3 of the Federal purchase or make an investment in the eq- of the United States.’’. Deposit Insurance Act.’’. uity securities of a financial subsidiary that SEC. 124. FUNCTIONAL REGULATION. (b) CLERICAL AMENDMENT.—The table of would, at the time of such purchase or in- (a) PURPOSE.—The purpose of this section sections for chapter 47 of title 18, United vestment, exceed the amount that the bank is to ensure that— States Code, is amended by inserting after could pay as a dividend without obtaining (1) securities activities conducted in a sub- the item relating to section 1007 the fol- prior regulatory approval. sidiary of a bank are functionally regulated lowing new item: ‘‘(b) OPERATIONAL AND FINANCIAL SAFE- by the Securities and Exchange Commission ‘‘1008. Misrepresentations regarding financial GUARDS FOR THE BANK.—An insured bank to the same extent as if they were conducted institution liability for obliga- that has a financial subsidiary shall main- in a nonbank subsidiary of a financial hold- tions of affiliates.’’. tain procedures for identifying and managing ing company; and SEC. 126. REPEAL OF STOCK LOAN LIMIT IN FED- financial and operational risks posed by the (2) insurance agency and brokerage activi- ERAL RESERVE ACT. financial subsidiary. ties conducted in a subsidiary of a bank are Section 11 of the Federal Reserve Act (12 ‘‘(c) MAINTENANCE OF SEPARATE CORPORATE functionally regulated by a State insurance U.S.C. 248) is amended by striking the para- IDENTITY AND SEPARATE LEGAL STATUS.— authority to the same extent as if they were graph designated as ‘‘(m)’’ and inserting ‘‘(1) IN GENERAL.—Each insured bank shall conducted in a nonbank subsidiary of a fi- ‘‘(m) [Repealed]’’. ensure that the bank maintains and complies nancial holding company. Subtitle D—Wholesale Financial Holding with reasonable policies and procedures to (b) FUNCTIONAL REGULATION OF FINANCIAL Companies; Wholesale Financial Institutions preserve the separate corporate identity and SUBSIDIARIES.—The Federal Deposit Insur- legal status of the bank and any financial CHAPTER 1—WHOLESALE FINANCIAL ance Act (12 U.S.C. 1811 et seq.) is amended HOLDING COMPANIES subsidiary or affiliate of the bank. by adding at the end the following new sec- ‘‘(2) EXAMINATIONS.—The appropriate Fed- tion: SEC. 131. WHOLESALE FINANCIAL HOLDING COM- PANIES ESTABLISHED. eral banking agency, as part of each exam- ‘‘SEC. 46. FUNCTIONAL REGULATION OF SECURI- ination, shall review whether an insured (a) DEFINITION AND SUPERVISION.—Section TIES AND INSURANCE AGENCY SUB- 10 of the Bank Holding Company Act of 1956 bank is observing the separate corporate SIDIARIES OF INSURED DEPOSITORY identity and separate legal status of any sub- INSTITUTIONS. (12 U.S.C. 1841 et seq.) is amended to read as sidiaries and affiliates of the bank. ‘‘(a) BROKER OR DEALER SUBSIDIARY.—A follows: ‘‘(d) FINANCIAL SUBSIDIARY DEFINED.—For broker or dealer that is a subsidiary of an in- ‘‘SEC. 10. WHOLESALE FINANCIAL HOLDING COM- purposes of this section, the term ‘financial sured depository institution shall be subject PANIES. subsidiary’ has the same meaning as section to regulation under the Securities Exchange ‘‘(a) COMPANIES THAT CONTROL WHOLESALE 5136A(c) of the Revised Statutes of the Act of 1934, in the same manner and to the FINANCIAL INSTITUTIONS.— United States. same extent as a broker or dealer that— ‘‘(1) WHOLESALE FINANCIAL HOLDING COM- ‘‘(e) REGULATIONS.—The appropriate Fed- ‘‘(1) is controlled by the same bank holding PANY DEFINED.—The term ‘wholesale finan- eral banking agencies shall jointly prescribe company as controls the insured depository cial holding company’ means any company regulations implementing this section.’’. institution; and that— (c) LIMITING THE CREDIT EXPOSURE OF A ‘‘(2) is not an insured depository institu- ‘‘(A) is registered as a bank holding com- BANK TO A FINANCIAL SUBSIDIARY TO THE tion or a subsidiary of an insured depository pany; AMOUNT OF PERMISSIBLE CREDIT EXPOSURE TO institution. ‘‘(B) is predominantly engaged in financial AN AFFILIATE.—Section 23A of the Federal ‘‘(b) INSURANCE AGENCY SUBSIDIARY.—An activities as defined in section 6(g)(2); Reserve Act (12 U.S.C. 371c) is amended— insurance agency or brokerage that is a sub- ‘‘(C) controls 1 or more wholesale financial (1) by redesignating subsection (e) as subsidiary of an insured depository institution institutions; section (f); and shall be subject to regulation by a State in- ‘‘(D) does not control— (2) by inserting after subsection (d), the surance authority in the same manner and ‘‘(i) a bank other than a wholesale finan- following new subsection: to the same extent as an insurance agency or cial institution; ‘‘(e) RULES RELATING TO BANKS WITH FI- brokerage that— ‘‘(ii) an insured bank other than an institu- NANCIAL SUBSIDIARIES.— ‘‘(1) is controlled by the same bank holding tion permitted under subparagraph (D), (F), ‘‘(1) FINANCIAL SUBSIDIARY DEFINED.—For company as controls the insured depository or (G) of section 2(c)(2); or purposes of this section and section 23B, the institution; and ‘‘(iii) a savings association; and term ‘financial subsidiary’ has the same ‘‘(2) is not an insured depository institu- ‘‘(E) is not a foreign bank (as defined in meaning as section 5136A(c) of the Revised tion or a subsidiary of an insured depository section 1(b)(7) of the International Banking Statutes of the United States. institution. Act of 1978). ‘‘(2) APPLICATION TO TRANSACTIONS BE- ‘‘(c) DEFINITIONS.—For purposes of this sec- ‘‘(2) SAVINGS ASSOCIATION TRANSITION PE- TWEEN A FINANCIAL SUBSIDIARY OF A BANK AND tion, the terms ‘broker’ and ‘dealer’ have the RIOD.—Notwithstanding paragraph (1)(D)(iii), S4694 CONGRESSIONAL RECORD — SENATE May 4, 1999 the Board may permit a company that con- ‘‘(II) the systems of the holding company may be assessed against, and made payable trols a savings association and that other- and its subsidiaries for monitoring and con- by, the wholesale financial holding company. wise meets the requirements of paragraph (1) trolling those risks; and ‘‘(4) CAPITAL ADEQUACY GUIDELINES.— to become supervised under paragraph (1), if ‘‘(iii) monitor compliance with the provi- ‘‘(A) CAPITAL ADEQUACY PROVISIONS.—Sub- the company divests control of any such sav- sions of this Act and those governing trans- ject to the requirements of, and solely in ac- ings association within such period, not to actions and relationships between any depos- cordance with, the terms of this paragraph, exceed 5 years after becoming supervised itory institution controlled by the wholesale the Board may adopt capital adequacy rules under paragraph (1), as permitted by the financial holding company and any of the or guidelines for wholesale financial holding Board. company’s other subsidiaries. companies. ‘‘(B) RESTRICTED FOCUS OF EXAMINATIONS.— ‘‘(B) METHOD OF CALCULATION.—In devel- ‘‘(b) SUPERVISION BY THE BOARD.— The Board shall, to the fullest extent pos- oping rules or guidelines under this para- ‘‘(1) IN GENERAL.—The provisions of this section shall govern the reporting, examina- sible, limit the focus and scope of any exam- graph, the following provisions shall apply: tion, and capital requirements of wholesale ination of a wholesale financial holding com- ‘‘(i) FOCUS ON DOUBLE LEVERAGE.—The financial holding companies. pany under this paragraph to— Board shall focus on the use by wholesale fi- ‘‘(i) the holding company; and nancial holding companies of debt and other ‘‘(2) REPORTS.— ‘‘(ii) any subsidiary (other than an insured liabilities to fund capital investments in ‘‘(A) IN GENERAL.—The Board from time to time may require any wholesale financial depository institution subsidiary) of the subsidiaries. holding company and any subsidiary of such holding company that, because of the size, ‘‘(ii) NO UNWEIGHTED CAPITAL RATIO.—The company to submit reports under oath to condition, or activities of the subsidiary, the Board shall not, by regulation, guideline, keep the Board informed as to— nature or size of transactions between such order, or otherwise, impose under this sec- ‘‘(i) the company’s or subsidiary’s activi- subsidiary and any affiliated depository in- tion a capital ratio that is not based on ap- ties, financial condition, policies, systems stitution, or the centralization of functions propriate risk-weighting considerations. for monitoring and controlling financial and within the holding company system, could ‘‘(iii) NO CAPITAL REQUIREMENT ON REGU- operational risks, and transactions with de- have a materially adverse effect on the safe- LATED ENTITIES.—The Board shall not, by ty and soundness of any depository institu- pository institution subsidiaries of the hold- regulation, guideline, order or otherwise, tion affiliate of the holding company. prescribe or impose any capital or capital ing company; and ‘‘(C) DEFERENCE TO BANK EXAMINATIONS.— adequacy rules, standards, guidelines, or re- ‘‘(ii) the extent to which the company or The Board shall, to the fullest extent pos- quirements upon any subsidiary that— subsidiary has complied with the provisions sible, use the reports of examination of de- ‘‘(I) is not a depository institution; and of this Act and regulations prescribed and pository institutions made by the Comp- ‘‘(II) is in compliance with applicable cap- orders issued under this Act. troller of the Currency, the Federal Deposit ital requirements of another Federal regu- ‘‘(B) USE OF EXISTING REPORTS.— Insurance Corporation, the Director of the latory authority (including the Securities ‘‘(i) IN GENERAL.—The Board shall, to the Office of Thrift Supervision or the appro- and Exchange Commission) or State insur- fullest extent possible, accept reports in ful- priate State depository institution super- ance authority. fillment of the Board’s reporting require- visory authority for the purposes of this sec- ‘‘(iv) CERTAIN SUBSIDIARIES.—The Board ments under this paragraph that the whole- tion. shall not, by regulation, guideline, order or sale financial holding company or any sub- ‘‘(D) DEFERENCE TO OTHER EXAMINATIONS.— otherwise, prescribe or impose any capital or sidiary of such company has provided or been The Board shall, to the fullest extent pos- capital adequacy rules, standards, guide- required to provide to other Federal and sible, address the circumstances which might lines, or requirements upon any subsidiary State supervisors or to appropriate self-regu- otherwise permit or require an examination that is not a depository institution and that latory organizations. by the Board by forgoing an examination and is registered as an investment adviser under ‘‘(ii) AVAILABILITY.—A wholesale financial by instead reviewing the reports of examina- the Investment Advisers Act of 1940, except holding company or a subsidiary of such tion made of— that this clause shall not be construed as company shall provide to the Board, at the ‘‘(i) any registered broker or dealer or any preventing the Board from imposing capital request of the Board, a report referred to in registered investment adviser by or on behalf or capital adequacy rules, guidelines, stand- clause (i). of the Commission; and ards, or requirements with respect to activi- ‘‘(C) EXEMPTIONS FROM REPORTING REQUIRE- ‘‘(ii) any licensed insurance company by or ties of a registered investment adviser other MENTS.— on behalf of any State government insurance than investment advisory activities or ac- ‘‘(i) IN GENERAL.—The Board may, by regu- agency responsible for the supervision of the tivities incidental to investment advisory lation or order, exempt any company or class insurance company. activities. of companies, under such terms and condi- ‘‘(E) CONFIDENTIALITY OF REPORTED INFOR- ‘‘(v) LIMITATIONS ON INDIRECT ACTION.—In tions and for such periods as the Board shall MATION.— developing, establishing, or assessing hold- provide in such regulation or order, from the ‘‘(i) IN GENERAL.—Notwithstanding any ing company capital or capital adequacy provisions of this paragraph and any regula- other provision of law, the Board shall not be rules, guidelines, standards, or requirements tion prescribed under this paragraph. compelled to disclose any nonpublic informa- for purposes of this paragraph, the Board ‘‘(ii) CRITERIA FOR CONSIDERATION.—In tion required to be reported under this para- shall not take into account the activities, making any determination under clause (i) graph, or any information supplied to the operations, or investments of an affiliated with regard to any exemption under such Board by any domestic or foreign regulatory investment company registered under the In- clause, the Board shall consider, among such agency, that relates to the financial or oper- vestment Company Act of 1940, if the invest- other factors as the Board may determine to ational condition of any wholesale financial ment company is not— be appropriate, the following factors: holding company or any subsidiary of such ‘‘(I) a bank holding company; or ‘‘(I) Whether information of the type re- company. ‘‘(II) controlled by a bank holding company quired under this paragraph is available from ‘‘(ii) COMPLIANCE WITH REQUESTS FOR INFOR- by reason of ownership by the bank holding a supervisory agency (as defined in section MATION.—No provision of this subparagraph company (including through all of its affili- 1101(7) of the Right to Financial Privacy Act shall be construed as authorizing the Board ates) of 25 percent or more of the shares of of 1978) or a foreign regulatory authority of to withhold information from the Congress, the investment company, where the shares a similar type. or preventing the Board from complying owned by the bank holding company have a ‘‘(II) The primary business of the company. with a request for information from any market value equal to more than $1,000,000. ‘‘(III) The nature and extent of the domes- other Federal department or agency for pur- ‘‘(vi) APPROPRIATE EXCLUSIONS.—The Board tic and foreign regulation of the activities of poses within the scope of such department’s shall take full account of— the company. or agency’s jurisdiction, or from complying ‘‘(I) the capital requirements made appli- ‘‘(3) EXAMINATIONS.— with any order of a court of competent juris- cable to any subsidiary that is not a deposi- ‘‘(A) LIMITED USE OF EXAMINATION AUTHOR- diction in an action brought by the United tory institution by another Federal regu- ITY.—The Board may make examinations of States or the Board. latory authority or State insurance author- each wholesale financial holding company ‘‘(iii) COORDINATION WITH OTHER LAW.—For ity; and and each subsidiary of such company in purposes of section 552 of title 5, United ‘‘(II) industry norms for capitalization of a order to— States Code, this subparagraph shall be con- company’s unregulated subsidiaries and ac- ‘‘(i) inform the Board regarding the nature sidered to be a statute described in sub- tivities. of the operations and financial condition of section (b)(3)(B) of such section. ‘‘(vii) INTERNAL RISK MANAGEMENT MOD- the wholesale financial holding company and ‘‘(iv) DESIGNATION OF CONFIDENTIAL INFOR- ELS.—The Board may incorporate internal its subsidiaries; MATION.—In prescribing regulations to carry risk management models of wholesale finan- ‘‘(ii) inform the Board regarding— out the requirements of this subsection, the cial holding companies into its capital ade- ‘‘(I) the financial and operational risks Board shall designate information described quacy guidelines or rules and may take ac- within the wholesale financial holding com- in or obtained pursuant to this paragraph as count of the extent to which resources of a pany system that may affect any depository confidential information. subsidiary depository institution may be institution owned by such holding company; ‘‘(F) COSTS.—The cost of any examination used to service the debt or other liabilities of and conducted by the Board under this section the wholesale financial holding company. May 4, 1999 CONGRESSIONAL RECORD — SENATE S4695

‘‘(c) NONFINANCIAL ACTIVITIES AND INVEST- ‘‘(d) QUALIFICATION OF FOREIGN BANK AS the regulation, supervision, or examination MENTS.— WHOLESALE FINANCIAL HOLDING COMPANY.— of foreign banks and their offices and affili- ‘‘(1) GRANDFATHERED ACTIVITIES.— ‘‘(1) IN GENERAL.—Any foreign bank, or any ates in the United States.’’. ‘‘(A) IN GENERAL.—Notwithstanding section company that owns or controls a foreign (b) UNINSURED STATE BANKS.—Section 9 of 4(a), a company that becomes a wholesale fi- bank, that operates a branch, agency, or the Federal Reserve Act (12 U.S.C. 321 et nancial holding company may continue to commercial lending company in the United seq.) is amended by adding at the end the fol- engage, directly or indirectly, in any activ- States, including a foreign bank or company lowing new paragraph: ity and may retain ownership and control of that owns or controls a wholesale financial ‘‘(24) ENFORCEMENT AUTHORITY OVER UNIN- shares of a company engaged in any activity institution, may request a determination SURED STATE MEMBER BANKS.—Section 3(u) of if— from the Board that such bank or company the Federal Deposit Insurance Act, sub- ‘‘(i) on the date of enactment of the Finan- be treated as a wholesale financial holding sections (j) and (k) of section 7 of such Act, cial Services Act of 1999, such wholesale fi- company (other than for purposes of sub- and subsections (b) through (n), (s), (u), and nancial holding company was lawfully en- section (c)), subject to such conditions as the (v) of section 8 of such Act shall apply to an gaged in that nonfinancial activity, held the Board deems appropriate, giving due regard uninsured State member bank in the same shares of such company, or had entered into to the principle of national treatment and manner and to the same extent such provi- equality of competitive opportunity and the a contract to acquire shares of any company sions apply to an insured State member bank requirements imposed on domestic banks engaged in such activity; and and any reference in any such provision to and companies. ‘‘(ii) the company engaged in such activity ‘insured depository institution’ shall be ‘‘(2) CONDITIONS FOR TREATMENT AS A continues to engage only in the same activi- deemed to be a reference to ‘uninsured State WHOLESALE FINANCIAL HOLDING COMPANY.—A ties that such company conducted on the member bank’ for purposes of this para- foreign bank and a company that owns or date of enactment of the Financial Services graph.’’. controls a foreign bank may not be treated Act of 1999, and other activities permissible SEC. 132. AUTHORIZATION TO RELEASE RE- as a wholesale financial holding company under this Act. PORTS. unless the bank and company meet and con- (a) FEDERAL RESERVE ACT.—The last sen- ‘‘(B) NO EXPANSION OF GRANDFATHERED COM- tinue to meet the following criteria: tence of the eighth undesignated paragraph MERCIAL ACTIVITIES THROUGH MERGER OR CON- ‘‘(A) NO INSURED DEPOSITS.—No deposits of section 9 of the Federal Reserve Act (12 SOLIDATION.—A wholesale financial holding held directly by a foreign bank or through an U.S.C. 326) is amended to read as follows: company that engages in activities or holds affiliate (other than an institution described ‘‘The Board of Governors of the Federal Re- shares pursuant to this paragraph, or a sub- in subparagraph (D) or (F) of section 2(c)(2)) serve System, at its discretion, may furnish sidiary of such wholesale financial holding are insured under the Federal Deposit Insur- reports of examination or other confidential company, may not acquire, in any merger, ance Act. supervisory information concerning State consolidation, or other type of business com- ‘‘(B) CAPITAL STANDARDS.—The foreign member banks or any other entities exam- bination, assets of any other company which bank meets risk-based capital standards ined under any other authority of the Board is engaged in any activity which the Board comparable to the capital standards required to any Federal or State authorities with su- has not determined to be financial in nature for a wholesale financial institution, giving pervisory or regulatory authority over the or incidental to activities that are financial due regard to the principle of national treat- examined entity, to officers, directors, or rein nature under section 6(c). ment and equality of competitive oppor- ceivers of the examined entity, and to any ‘‘(C) LIMITATION TO SINGLE EXEMPTION.—No tunity. other person that the Board determines to be company that engages in any activity or ‘‘(C) TRANSACTION WITH AFFILIATES.— proper.’’. controls any shares under subsection (f) of Transactions between a branch, agency, or (b) COMMODITY FUTURES TRADING COMMIS- section 6 may engage in any activity or own commercial lending company subsidiary of SION.—The Right to Financial Privacy Act of any shares pursuant to this paragraph. the foreign bank in the United States, and 1978 (12 U.S.C. 3401 et seq.) is amended— ‘‘(2) COMMODITIES.— any securities affiliate or company in which (1) in section 1101(7) (12 U.S.C. 3401(7))— ‘‘(A) IN GENERAL.—Notwithstanding section the foreign bank (or any company that owns (A) by redesignating subparagraphs (G) and 4(a), a wholesale financial holding company or controls such foreign bank) has invested (H) as subparagraphs (H) and (I), respec- which was predominately engaged as of Jan- and which engages in any activity author- tively; and uary 1, 1997, in financial activities in the ized only as a result of the application of (B) by inserting after subparagraph (F) the United States (or any successor to any such subsection (c) or (g) of section 6, comply with following new subparagraph: company) may engage in, or directly or indi- the provisions of sections 23A and 23B of the ‘‘(G) the Commodity Futures Trading Com- rectly own or control shares of a company Federal Reserve Act in the same manner and mission; or’’; and engaged in, activities related to the trading, to the same extent as such transactions (2) in section 1112(e) (12 U.S.C. 3412(e)), by sale, or investment in commodities and un- would be required to comply with such sec- striking ‘‘and the Securities and Exchange derlying physical properties that were not tions if the foreign bank were a member Commission’’ and inserting ‘‘, the Securities permissible for bank holding companies to bank. and Exchange Commission, and the Com- conduct in the United States as of January 1, ‘‘(3) TREATMENT AS A WHOLESALE FINANCIAL modity Futures Trading Commission’’. 1997, if such wholesale financial holding com- INSTITUTION.—Any foreign bank which is, or SEC. 133. CONFORMING AMENDMENTS. pany, or any subsidiary of such holding com- is affiliated with a company which is, treat- (a) BANK HOLDING COMPANY ACT OF 1956.— pany, was engaged directly, indirectly, or ed as a wholesale financial holding company (1) DEFINITIONS.—Section 2 of the Bank through any such company in any of such ac- under this subsection shall be treated as a Holding Company Act of 1956 (12 U.S.C. 1842) tivities as of January 1, 1997, in the United wholesale financial institution for purposes is amended by adding at the end the fol- States. of paragraphs (1)(C) and (3) of section 9B(c) of lowing new subsections: ‘‘(B) LIMITATION.—The attributed aggre- the Federal Reserve Act, and any such for- ‘‘(p) WHOLESALE FINANCIAL INSTITUTION.— gate consolidated assets of a wholesale fi- eign bank or company shall be subject to The term ‘wholesale financial institution’ nancial holding company held under the au- paragraphs (3), (4), and (5) of section 9B(d) of means a wholesale financial institution sub- thority granted under this paragraph and not the Federal Reserve Act, except that the ject to section 9B of the Federal Reserve Act. otherwise permitted to be held by all whole- Board may adopt such modifications, condi- ‘‘(q) COMMISSION.—The term ‘Commission’ sale financial holding companies under this tions, or exemptions as the Board deems ap- means the Securities and Exchange Commis- section may not exceed 5 percent of the total propriate, giving due regard to the principle sion. consolidated assets of the wholesale finan- of national treatment and equality of com- ‘‘(r) DEPOSITORY INSTITUTION.—The term cial holding company, except that the Board petitive opportunity. ‘depository institution’— may increase such percentage of total con- ‘‘(4) SUPERVISION OF FOREIGN BANK WHICH ‘‘(1) has the same meaning as in section 3 solidated assets by such amounts and under MAINTAINS NO BANKING PRESENCE OTHER THAN of the Federal Deposit Insurance Act; and such circumstances as the Board considers CONTROL OF A WHOLESALE FINANCIAL INSTITU- ‘‘(2) includes a wholesale financial institu- appropriate, consistent with the purposes of TION.—A foreign bank that owns or controls tion.’’. this Act. a wholesale financial institution but does (2) DEFINITION OF BANK INCLUDES WHOLE- ‘‘(3) CROSS MARKETING RESTRICTIONS.—A not operate a branch, agency, or commercial SALE FINANCIAL INSTITUTION.—Section 2(c)(1) wholesale financial holding company shall lending company in the United States (and of the Bank Holding Company Act of 1956 (12 not permit— any company that owns or controls such for- U.S.C. 1841(c)(1)) is amended by adding at the ‘‘(A) any company whose shares it owns or eign bank) may request a determination end the following new subparagraph: controls pursuant to paragraph (1) or (2) to from the Board that such bank or company ‘‘(C) A wholesale financial institution.’’. offer or market any product or service of an be treated as a wholesale financial holding (3) INCORPORATED DEFINITIONS.—Section affiliated wholesale financial institution; or company, except that such bank or company 2(n) of the Bank Holding Company Act of ‘‘(B) any affiliated wholesale financial in- shall be subject to the restrictions of para- 1956 (12 U.S.C. 1841(n)) is amended by insert- stitution to offer or market any product or graphs (2)(A) and (3) of this subsection. ing ‘‘ ‘insured bank’,’’ after ‘‘ ‘in danger of de- service of any company whose shares are ‘‘(5) NO EFFECT ON OTHER PROVISIONS.—This fault’,’’. owned or controlled by such wholesale finan- section shall not be construed as limiting (4) EXCEPTION TO DEPOSIT INSURANCE RE- cial holding company pursuant to such para- the authority of the Board under the Inter- QUIREMENT.—Section 3(e) of the Bank Hold- graphs. national Banking Act of 1978 with respect to ing Company Act of 1956 (12 U.S.C. 1842(e)) is S4696 CONGRESSIONAL RECORD — SENATE May 4, 1999

amended by adding at the end the following: nancial institutions shall be member banks ‘‘(iii) OUT-OF-STATE BANK.—The term ‘out- ‘‘This subsection shall not apply to a whole- and shall be subject to the provisions of this of-State bank’ means, with respect to any sale financial institution.’’. Act that apply to member banks to the same State, a wholesale financial institution (b) FEDERAL DEPOSIT INSURANCE ACT.—Sec- extent and in the same manner as State whose home State is another State. tion 3(q)(2)(A) of the Federal Deposit Insur- member insured banks, except that a whole- ‘‘(8) DISCRIMINATION REGARDING INTEREST ance Act (12 U.S.C. 1813(q)(2)(A)) is amended sale financial institution may terminate RATES.—Section 27 of the Federal Deposit In- to read as follows: membership under this Act only with the surance Act shall apply to State-chartered ‘‘(A) any State member insured bank (ex- prior written approval of the Board and on wholesale financial institutions in the same cept a District bank) and any wholesale fi- terms and conditions that the Board deter- manner and to the same extent as such pro- nancial institution as authorized pursuant to mines are appropriate to carry out the pur- visions apply to State member insured banks section 9B of the Federal Reserve Act;’’. poses of this Act. and any reference in such section to a State- CHAPTER 2—WHOLESALE FINANCIAL ‘‘(2) PROMPT CORRECTIVE ACTION.—A whole- chartered insured depository institution INSTITUTIONS sale financial institution shall be deemed to shall be deemed to include a reference to a SEC. 136. WHOLESALE FINANCIAL INSTITUTIONS. be an insured depository institution for pur- State-chartered wholesale financial institu- poses of section 38 of the Federal Deposit In- tion. (a) NATIONAL WHOLESALE FINANCIAL INSTI- surance Act except that— ‘‘(9) PREEMPTION OF STATE LAWS REQUIRING TUTIONS.— ‘‘(A) the relevant capital levels and capital DEPOSIT INSURANCE FOR WHOLESALE FINANCIAL (1) IN GENERAL.—Chapter one of title LXII of the Revised Statutes of the United States measures for each capital category shall be INSTITUTIONS.—The appropriate State bank- (12 U.S.C. 21 et seq.) is amended by inserting the levels specified by the Board for whole- ing authority may grant a charter to a after section 5136A (as added by section sale financial institutions; and wholesale financial institution notwith- 121(a) of this title) the following new section: ‘‘(B) all references to the appropriate Fed- standing any State constitution or statute eral banking agency or to the Corporation in requiring that the institution obtain insur- ‘‘SEC. 5136B. NATIONAL WHOLESALE FINANCIAL that section shall be deemed to be references INSTITUTIONS. ance of its deposits and any such State con- to the Board. stitution or statute is hereby preempted ‘‘(a) AUTHORIZATION OF THE COMPTROLLER ‘‘(3) ENFORCEMENT AUTHORITY.—Sub- solely for purposes of this paragraph. REQUIRED.—A national bank may apply to sections (j) and (k) of section 7, subsections ‘‘(10) PARITY FOR WHOLESALE FINANCIAL IN- the Comptroller on such forms and in accord- (b) through (n), (s), and (v) of section 8, and ance with such regulations as the Comp- STITUTIONS.—A State bank that is a whole- section 19 of the Federal Deposit Insurance troller may prescribe, for permission to oper- sale financial institution under this section Act shall apply to a wholesale financial in- ate as a national wholesale financial institu- shall have all of the rights, powers, privi- stitution in the same manner and to the tion. leges, and immunities (including those de- same extent as such provisions apply to rived from status as a federally chartered in- ‘‘(b) REGULATION.—A national wholesale fi- State member insured banks and any ref- nancial institution may exercise, in accord- stitution) of and as if it were a national erence in such sections to an insured deposi- ance with such institution’s articles of incor- bank, subject to such terms and conditions tory institution shall be deemed to include a poration and regulations issued by the as established by the Board. reference to a wholesale financial institu- Comptroller, all the powers and privileges of ‘‘(11) COMMUNITY REINVESTMENT ACT OF tion. a national bank formed in accordance with 1977.—A State wholesale financial institution ‘‘(4) CERTAIN OTHER STATUTES APPLICA- section 5133 of the Revised Statutes of the shall be subject to the Community Reinvest- BLE.—A wholesale financial institution shall United States, subject to section 9B of the ment Act of 1977, only if the wholesale finan- be deemed to be a banking institution, and Federal Reserve Act and the limitations and cial institution has an affiliate that is an in- the Board shall be the appropriate Federal restrictions contained therein. sured depository institution or that operates banking agency for such bank and all such ‘‘(c) COMMUNITY REINVESTMENT ACT OF an insured branch, as those terms are defined bank’s affiliates, for purposes of the Inter- 1977.—A national wholesale financial institu- in section 3 of the Federal Deposit Insurance national Lending Supervision Act. tion shall be subject to the Community Rein- Act. ‘‘(5) BANK MERGER ACT.—A wholesale finan- vestment Act of 1977, only if the wholesale ficial institution shall be subject to sections ‘‘(c) SPECIFIC REQUIREMENTS APPLICABLE TO nancial institution has an affiliate that is an 18(c) and 44 of the Federal Deposit Insurance WHOLESALE FINANCIAL INSTITUTIONS.— insured depository institution or that oper- Act in the same manner and to the same ex- ‘‘(1) LIMITATIONS ON DEPOSITS.— ates an insured branch, as those terms are tent the wholesale financial institution ‘‘(A) MINIMUM AMOUNT.— defined in section 3 of the Federal Deposit would be subject to such sections if the insti- ‘‘(i) IN GENERAL.—No wholesale financial Insurance Act.’’. tution were a State member insured bank. institution may receive initial deposits of (2) CLERICAL AMENDMENT.—The table of ‘‘(6) BRANCHING.—Notwithstanding any $100,000 or less, other than on an incidental sections for chapter one of title LXII of the other provision of law, a wholesale financial and occasional basis. Revised Statutes of the United States is institution may establish and operate a ‘‘(ii) LIMITATION ON DEPOSITS OF LESS THAN amended by inserting after the item relating branch at any location on such terms and $100,000.—No wholesale financial institution to section 5136A (as added by section 121(d) of conditions as established by the Board and, may receive initial deposits of $100,000 or less this title) the following new item: in the case of a State-chartered wholesale fi- if such deposits constitute more than 5 per- ‘‘5136B. National wholesale financial institu- nancial institution, with the approval of the cent of the institution’s total deposits. tions.’’. Board, and, in the case of a national bank ‘‘(B) NO DEPOSIT INSURANCE.—Except as (b) STATE WHOLESALE FINANCIAL INSTITU- wholesale financial institution, with the ap- otherwise provided in section 8A(f) of the TIONS.—The Federal Reserve Act (12 U.S.C. proval of the Comptroller of the Currency. Federal Deposit Insurance Act, no deposits 221 et seq.) is amended by inserting after sec- ‘‘(7) ACTIVITIES OF OUT-OF-STATE BRANCHES held by a wholesale financial institution tion 9A the following new section: OF WHOLESALE FINANCIAL INSTITUTIONS.— shall be insured deposits under the Federal ‘‘SEC. 9B. WHOLESALE FINANCIAL INSTITUTIONS. ‘‘(A) GENERAL.—A State-chartered whole- Deposit Insurance Act. ‘‘(a) APPLICATION FOR MEMBERSHIP AS sale financial institution shall be deemed to ‘‘(C) ADVERTISING AND DISCLOSURE.—The WHOLESALE FINANCIAL INSTITUTION.— be a State bank and an insured State bank Board shall prescribe regulations pertaining ‘‘(1) APPLICATION REQUIRED.— for purposes of paragraphs (1), (2), and (3) of to advertising and disclosure by wholesale fi- ‘‘(A) IN GENERAL.—Any bank may apply to section 24(j) of the Federal Deposit Insurance nancial institutions to ensure that each de- the Board of Governors of the Federal Re- Act, and a national wholesale financial insti- positor is notified that deposits at the whole- serve System to become a wholesale finan- tution shall be deemed to be a national bank sale financial institution are not federally cial institution and, as a wholesale financial for purposes of section 5155(f) of the Revised insured or otherwise guaranteed by the institution, to subscribe to the stock of the Statutes of the United States. United States Government. Federal reserve bank organized within the ‘‘(B) DEFINITIONS.—The following defini- ‘‘(2) MINIMUM CAPITAL LEVELS APPLICABLE district where the applying bank is located. tions shall apply solely for purposes of apply- TO WHOLESALE FINANCIAL INSTITUTIONS.—The ‘‘(B) TREATMENT AS MEMBER BANK.—Any ing paragraph (1): Board shall, by regulation, adopt capital re- application under subparagraph (A) shall be ‘‘(i) HOME STATE.—The term ‘home State’ quirements for wholesale financial treated as an application under, and shall be means— institutions— subject to the provisions of, section 9. ‘‘(I) with respect to a national wholesale fi- ‘‘(A) to account for the status of wholesale ‘‘(2) INSURANCE TERMINATION.—No bank the nancial institution, the State in which the financial institutions as institutions that ac- deposits of which are insured under the Fed- main office of the institution is located; and cept deposits that are not insured under the eral Deposit Insurance Act may become a ‘‘(II) with respect to a State-chartered Federal Deposit Insurance Act; and wholesale financial institution unless it has wholesale financial institution, the State by ‘‘(B) to provide for the safe and sound oper- met all requirements under that Act for vol- which the institution is chartered. ation of the wholesale financial institution untary termination of deposit insurance. ‘‘(ii) HOST STATE.—The term ‘host State’ without undue risk to creditors or other per- ‘‘(b) GENERAL REQUIREMENTS APPLICABLE means a State, other than the home State of sons, including Federal reserve banks, en- TO WHOLESALE FINANCIAL INSTITUTIONS.— the wholesale financial institution, in which gaged in transactions with the bank. ‘‘(1) FEDERAL RESERVE ACT.—Except as oth- the institution maintains, or seeks to estab- ‘‘(3) ADDITIONAL REQUIREMENTS APPLICABLE erwise provided in this section, wholesale fi- lish and maintain, a branch. TO WHOLESALE FINANCIAL INSTITUTIONS.—In May 4, 1999 CONGRESSIONAL RECORD — SENATE S4697 addition to any requirement otherwise appli- of the company as the Board determines to not less than 6 months before the effective cable to State member insured banks or ap- be appropriate under the circumstances. date of such termination; and plicable, under this section, to wholesale fi- ‘‘(5) FAILURE TO RESTORE.—If the company ‘‘(B) to all depositors at such bank, not nancial institutions, the Board may impose, does not execute and implement an agree- less than 6 months before the effective date by regulation or order, upon wholesale finan- ment in accordance with paragraph (3), com- of the termination of such status; and cial institutions— ply with any limitation imposed under para- ‘‘(2) either— ‘‘(A) limitations on transactions, direct or graph (4), restore the wholesale financial in- ‘‘(A) the deposit insurance fund of which indirect, with affiliates to prevent— stitution to well capitalized status not later such bank is a member equals or exceeds the ‘‘(i) the transfer of risk to the deposit in- than 180 days after the date of receipt by the fund’s designated reserve ratio as of the date surance funds; or company of the notice described in para- the bank provides a written notice under ‘‘(ii) an affiliate from gaining access to, or graph (2), or restore the wholesale financial paragraph (1) and the Corporation deter- the benefits of, credit from a Federal reserve institution to well managed status within mines that the fund will equal or exceed the bank, including overdrafts at a Federal re- such period as the Board may permit, the applicable designated reserve ratio for the 2 serve bank; company shall, under such terms and condi- semiannual assessment periods immediately ‘‘(B) special clearing balance requirements; tions as may be imposed by the Board and following such date; or and subject to such extension of time as may be ‘‘(B) the Corporation and the Board of Gov- ‘‘(C) any additional requirements that the granted in the Board’s discretion, divest con- ernors of the Federal Reserve System ap- Board determines to be appropriate or nec- trol of its subsidiary depository institutions. proved the termination of the bank’s insured essary to— ‘‘(6) WELL MANAGED DEFINED.—For purposes status and the bank pays an exit fee in ac- ‘‘(i) promote the safety and soundness of of this subsection, the term ‘well managed’ cordance with subsection (e). the wholesale financial institution or any in- has the same meaning as in section 2 of the ‘‘(b) EXCEPTION.—Subsection (a) shall not sured depository institution affiliate of the Bank Holding Company Act of 1956. apply with respect to— wholesale financial institution; ‘‘(e) RESOLUTION OF WHOLESALE FINANCIAL ‘‘(1) an insured savings association; or ‘‘(ii) prevent the transfer of risk to the de- INSTITUTIONS.— ‘‘(2) an insured branch that is required to posit insurance funds; or ‘‘(1) CONSERVATORSHIP OR RECEIVERSHIP.— be insured under subsection (a) or (b) of sec- ‘‘(iii) protect creditors and other persons, ‘‘(A) APPOINTMENT.—The Board may ap- tion 6 of the International Banking Act of including Federal reserve banks, engaged in point a conservator or receiver for a whole- 1978. transactions with the wholesale financial in- sale financial institution to the same extent ‘‘(c) ELIGIBILITY FOR INSURANCE TERMI- stitution. and in the same manner as the Comptroller NATED.—Any bank that voluntarily elects to ‘‘(4) EXEMPTIONS FOR WHOLESALE FINANCIAL of the Currency may appoint a conservator terminate the bank’s insured status under INSTITUTIONS.—The Board may, by regulation or receiver for a national bank. subsection (a) shall not be eligible for insur- or order, exempt any wholesale financial in- ‘‘(B) POWERS.—The conservator or receiver ance on any deposits or any assistance au- stitution from any provision applicable to a for a wholesale financial institution shall ex- thorized under this Act after the period spec- member bank that is not a wholesale finan- ercise the same powers, functions, and du- ified in subsection (f)(1). cial institution, if the Board finds that such ties, subject to the same limitations, as a ‘‘(d) INSTITUTION MUST BECOME WHOLESALE FINANCIAL INSTITUTION OR TERMINATE DE- exemption is not inconsistent with— conservator or receiver for a national bank. POSIT-TAKING ACTIVITIES.—Any depository ‘‘(A) the promotion of the safety and ‘‘(2) BOARD AUTHORITY.—The Board shall institution which voluntarily terminates soundness of the wholesale financial institu- have the same authority with respect to any such institution’s status as an insured depos- tion or any insured depository institution af- conservator or receiver appointed for a itory institution under this section may not, filiate of the wholesale financial institution; wholesale financial institution under para- upon termination of insurance, accept any ‘‘(B) the protection of the deposit insur- graph (1), and the wholesale financial insti- deposits unless the institution is a wholesale ance funds; and tution for which it has been appointed, as financial institution subject to section 9B of ‘‘(C) the protection of creditors and other the Comptroller of the Currency has with respect to a conservator or receiver for a na- the Federal Reserve Act. persons, including Federal reserve banks, en- ‘‘(e) EXIT FEES.— tional bank and the national bank for which gaged in transactions with the wholesale fi- ‘‘(1) IN GENERAL.—Any bank that volun- the conservator or receiver has been ap- nancial institution. tarily terminates such bank’s status as an pointed. ‘‘(5) LIMITATION ON TRANSACTIONS BETWEEN insured depository institution under this ‘‘(3) BANKRUPTCY PROCEEDINGS.—The Comp- A WHOLESALE FINANCIAL INSTITUTION AND AN section shall pay an exit fee in an amount troller of the Currency (in the case of a na- INSURED BANK.—For purposes of section that the Corporation determines is sufficient tional wholesale financial institution) and 23A(d)(1) of the Federal Reserve Act, a to account for the institution’s pro rata the Board may direct the conservator or re- wholesale financial institution that is affili- share of the amount (if any) which would be ceiver of a wholesale financial institution to ated with an insured bank shall not be a required to restore the relevant deposit in- file a petition pursuant to title 11, United bank. surance fund to the fund’s designated reserve States Code, in which case, title 11, United ‘‘(6) NO EFFECT ON OTHER PROVISIONS.—This ratio as of the date the bank provides a writ- States Code, shall apply to the wholesale fi- section shall not be construed as limiting ten notice under subsection (a)(1). nancial institution in lieu of otherwise appli- the Board’s authority over member banks ‘‘(2) PROCEDURES.—The Corporation shall cable Federal or State insolvency law. under any other provision of law, or to cre- prescribe, by regulation, procedures for as- ate any obligation for any Federal reserve ‘‘(f) EXCLUSIVE JURISDICTION.—Subsections (c) and (e) of section 43 of the Federal De- sessing any exit fee under this subsection. bank to make, increase, renew, or extend ‘‘(f) TEMPORARY INSURANCE OF DEPOSITS IN- posit Insurance Act shall not apply to any any advance or discount under this Act to SURED AS OF TERMINATION.— wholesale financial institution.’’. any member bank or other depository insti- ‘‘(1) TRANSITION PERIOD.—The insured de- tution. (c) VOLUNTARY TERMINATION OF INSURED STATUS BY CERTAIN INSTITUTIONS.— posits of each depositor in a State bank or a ‘‘(d) CAPITAL AND MANAGERIAL REQUIRE- (1) SECTION 8 DESIGNATIONS.—Section 8(a) of national bank on the effective date of the MENTS.— the Federal Deposit Insurance Act (12 U.S.C. voluntary termination of the bank’s insured ‘‘(1) IN GENERAL.—A wholesale financial in- 1818(a)) is amended— status, less all subsequent withdrawals from stitution shall be well capitalized and well (A) by striking paragraph (1); and any deposits of such depositor, shall con- managed. (B) by redesignating paragraphs (2) tinue to be insured for a period of not less ‘‘(2) NOTICE TO COMPANY.—The Board shall through (10) as paragraphs (1) through (9), re- than 6 months and not more than 2 years, as promptly provide notice to a company that spectively. determined by the Corporation. During such controls a wholesale financial institution (2) VOLUNTARY TERMINATION OF INSURED period, no additions to any such deposits, whenever such wholesale financial institu- STATUS.—The Federal Deposit Insurance Act and no new deposits in the depository insti- tion is not well capitalized or well managed. (12 U.S.C. 1811 et seq.) is amended by insert- tution made after the effective date of such ‘‘(3) AGREEMENT TO RESTORE INSTITUTION.— ing after section 8 the following new section: termination shall be insured by the Corpora- Not later than 45 days after the date of re- ‘‘SEC. 8A. VOLUNTARY TERMINATION OF STATUS tion. ceipt of a notice under paragraph (2) (or such AS INSURED DEPOSITORY INSTITU- ‘‘(2) TEMPORARY ASSESSMENTS; OBLIGATIONS additional period not to exceed 90 days as the TION. AND DUTIES.—During the period specified in Board may permit), the company shall exe- ‘‘(a) IN GENERAL.—Except as provided in paragraph (1) with respect to any bank, the cute an agreement acceptable to the Board subsection (b), an insured State bank or a bank shall continue to pay assessments to restore the wholesale financial institution national bank may voluntarily terminate under section 7 as if the bank were an in- to compliance with all of the requirements such bank’s status as an insured depository sured depository institution. The bank shall, of paragraph (1). institution in accordance with regulations of in all other respects, be subject to the au- ‘‘(4) LIMITATIONS UNTIL INSTITUTION RE- the Corporation if— thority of the Corporation and the duties STORED.—Until the wholesale financial insti- ‘‘(1) the bank provides written notice of and obligations of an insured depository in- tution is restored to compliance with all of the bank’s intent to terminate such insured stitution under this Act during such period, the requirements of paragraph (1), the Board status— and in the event that the bank is closed due may impose such limitations on the conduct ‘‘(A) to the Corporation and the Board of to an inability to meet the demands of the or activities of the company or any affiliate Governors of the Federal Reserve System bank’s depositors during such period, the S4698 CONGRESSIONAL RECORD — SENATE May 4, 1999 Corporation shall have the same powers and corporation organized under section 25A of ‘‘(A) the bridge bank shall be treated as a rights with respect to such bank as in the the Federal Reserve Act and, when any such wholesale bank for the purpose of this sub- case of an insured depository institution. person is acting as agent or custodian for a section; and ‘‘(g) ADVERTISEMENTS.— customer in connection with a securities ‘‘(B) any references in any such provision ‘‘(1) IN GENERAL.—A bank that voluntarily contract, as defined in section 741 of this of law to the Federal Deposit Insurance Cor- terminates the bank’s insured status under title, such customer,’’. poration shall be construed to be references this section shall not advertise or hold itself (4) SUBCHAPTER V OF CHAPTER 7.— to the appointing agency and that references out as having insured deposits, except that (A) IN GENERAL.—Section 103 of title 11, to deposit insurance shall be omitted. the bank may advertise the temporary insur- United States Code, is amended— ‘‘(b) Any reference in this section to trans- ance of deposits under subsection (f) if, in (i) by redesignating subsections (e) through fers of liabilities includes a ratable transfer connection with any such advertisement, the (i) as subsections (f) through (j), respec- of liabilities within a priority class. advertisement also states with equal promi- tively; and ‘‘§ 784. Right to be heard nence that additions to deposits and new de- (ii) by inserting after subsection (d) the posits made after the effective date of the following: ‘‘The Comptroller of the Currency (in the termination are not insured. ‘‘(e) Subchapter V of chapter 7 of this title case of a national wholesale financial insti- ‘‘(2) CERTIFICATES OF DEPOSIT, OBLIGATIONS, applies only in a case under such chapter tution), the Board (in the case of any whole- AND SECURITIES.—Any certificate of deposit concerning the liquidation of a wholesale fi- sale bank), or a Federal Reserve bank (in the or other obligation or security issued by a nancial institution established under section case of a wholesale bank that is a member of State bank or a national bank after the ef- 5136B of the Revised Statutes of the United that bank) may raise and may appear and be fective date of the voluntary termination of States or section 9B of the Federal Reserve heard on any issue in a case under this sub- the bank’s insured status under this section Act, or a corporation organized under sec- chapter. shall be accompanied by a conspicuous, tion 25A of the Federal Reserve Act.’’. ‘‘§ 785. Expedited transfers prominently displayed notice that such cer- (B) WHOLESALE BANK LIQUIDATION.—Chapter ‘‘The trustee may make a transfer pursu- tificate of deposit or other obligation or se- 7 of title 11, United States Code, is amended ant to section 783 without prior judicial ap- curity is not insured under this Act. by adding at the end the following: proval, if the Comptroller of the Currency (in ‘‘(h) NOTICE REQUIREMENTS.— ‘‘SUBCHAPTER V—WHOLESALE BANK the case of a national wholesale financial in- ‘‘(1) NOTICE TO THE CORPORATION.—The no- LIQUIDATION stitution for which it appointed the conser- tice required under subsection (a)(1)(A) shall ‘‘§ 781. Definitions for subchapter vator or receiver) or the Board (in the case of be in such form as the Corporation may re- ‘‘In this subchapter— any wholesale bank for which it appointed quire. ‘‘(1) the term ‘Board’ means the Board of the conservator or receiver) determines that ‘‘(2) NOTICE TO DEPOSITORS.—The notice re- Governors of the Federal Reserve System; the transfer would be necessary to avert seri- quired under subsection (a)(1)(B) shall be— ‘‘(2) the term ‘depository institution’ has ous adverse effects on economic conditions ‘‘(A) sent to each depositor’s last address the same meaning as in section 3 of the Fed- or financial stability.’’. of record with the bank; and eral Deposit Insurance Act, and includes any (C) CONFORMING AMENDMENT.—The table of ‘‘(B) in such manner and form as the Cor- wholesale bank; sections for chapter 7 of title 11, United poration finds to be necessary and appro- ‘‘(3) the term ‘national wholesale financial States Code, is amended by adding at the end priate for the protection of depositors.’’. institution’ means a wholesale financial in- the following: (3) DEFINITION.—Section 19(b)(1)(A)(i) of the stitution established under section 5136B of ‘‘781. Definitions for subchapter. Federal Reserve Act (12 U.S.C. 461(b)(1)(A)(i)) the Revised Statutes of the United States; ‘‘782. Selection of trustee. is amended by inserting ‘‘, or any wholesale and ‘‘783. Additional powers of trustee. financial institution subject to section 9B of ‘‘(4) the term ‘wholesale bank’ means a na- ‘‘784. Right to be heard. this Act’’ after ‘‘such Act’’. tional wholesale financial institution, a ‘‘785. Expedited transfers.’’. (d) TECHNICAL AND CONFORMING AMEND- wholesale financial institution established (e) RESOLUTION OF EDGE CORPORATIONS.— MENTS TO THE BANKRUPTCY CODE.— under section 9B of the Federal Reserve Act, Section 25A(16) of the Federal Reserve Act (1) BANKRUPTCY CODE DEBTORS.—Section or a corporation organized under section 25A (12 U.S.C. 624(16)) is amended to read as fol- 109(b)(2) of title 11, United States Code, is of the Federal Reserve Act. lows: amended by striking ‘‘; or’’ and inserting the ‘‘(16) APPOINTMENT OF RECEIVER OR CONSER- following: ‘‘, except that— ‘‘§ 782. Selection of trustee VATOR.— ‘‘(A) a wholesale financial institution es- ‘‘Notwithstanding any other provision of ‘‘(A) IN GENERAL.—The Board may appoint tablished under section 5136B of the Revised this title, the conservator or receiver who a conservator or receiver for a corporation Statutes of the United States or section 9B files the petition shall be the trustee under organized under the provisions of this sec- of the Federal Reserve Act may be a debtor this chapter, unless the Comptroller of the tion to the same extent and in the same if a petition is filed at the direction of the Currency (in the case of a national wholesale manner as the Comptroller of the Currency Comptroller of the Currency (in the case of a financial institution for which it appointed the conservator or receiver) or the Board (in may appoint a conservator or receiver for a wholesale financial institution established the case of any wholesale bank for which it national bank, and the conservator or re- under section 5136B of the Revised Statutes appointed the conservator or receiver) des- ceiver for such corporation shall exercise the of the United States) or the Board of Gov- ignates an alternative trustee. The Comp- same powers, functions, and duties, subject ernors of the Federal Reserve System (in the troller of the Currency or the Board (as ap- to the same limitations, as a conservator or case of any wholesale financial institution); plicable) may designate a successor trustee, receiver for a national bank. and if required. ‘‘(B) EQUIVALENT AUTHORITY.—The Board ‘‘(B) a corporation organized under section shall have the same authority with respect 25A of the Federal Reserve Act may be a ‘‘§ 783. Additional powers of trustee to any conservator or receiver appointed for debtor if a petition is filed at the direction of ‘‘(a) The trustee under this subchapter has a corporation organized under the provisions the Board of Governors of the Federal Re- power, with permission of the court— of this section under this paragraph and any serve System; or’’. ‘‘(1) to sell the wholesale bank to a deposi- such corporation as the Comptroller of the (2) CHAPTER 7 DEBTORS.—Section 109(d) of tory institution or consortium of depository Currency has with respect to a conservator title 11, United States Code, is amended to institutions (which consortium may agree on or receiver of a national bank and the na- read as follows: the allocation of the wholesale bank among ‘‘(d) Only a railroad and a person that may the consortium); tional bank for which a conservator or re- be a debtor under chapter 7 of this title, ex- ‘‘(2) to merge the wholesale bank with a ceiver has been appointed. cept that a stockbroker, a wholesale finan- depository institution; ‘‘(C) TITLE 11 PETITIONS.—The Board may cial institution established under section ‘‘(3) to transfer contracts to the same ex- direct the conservator or receiver of a cor- 5136B of the Revised Statutes of the United tent as could a receiver for a depository in- poration organized under the provisions of States or section 9B of the Federal Reserve stitution under paragraphs (9) and (10) of sec- this section to file a petition pursuant to Act, a corporation organized under section tion 11(e) of the Federal Deposit Insurance title 11, United States Code, in which case, 25A of the Federal Reserve Act, or a com- Act; title 11, United States Code, shall apply to modity broker, may be a debtor under chap- ‘‘(4) to transfer assets or liabilities to a de- the corporation in lieu of otherwise applica- ter 11 of this title.’’. pository institution; ble Federal or State insolvency law.’’. (3) DEFINITION OF FINANCIAL INSTITUTION.— ‘‘(5) to distribute property not of the es- Subtitle E—Preservation of FTC Authority Section 101(22) of title 11, United States tate, including distributions to customers SEC. 141. AMENDMENT TO THE BANK HOLDING Code, is amended to read as follows: that are mandated by subchapters III and IV COMPANY ACT OF 1956 TO MODIFY ‘‘(22) ‘financial institution’ means a person of this chapter; or NOTIFICATION AND POST-APPROVAL that is a commercial or savings bank, indus- ‘‘(6) to transfer assets and liabilities to a WAITING PERIOD FOR SECTION 3 trial savings bank, savings and loan associa- bridge bank as provided in paragraphs (1), TRANSACTIONS. tion, trust company, wholesale financial in- (3)(A), (5), (6), and (9) through (13), and sub- Section 11(b)(1) of the Bank Holding Com- stitution established under section 5136B of paragraphs (A) through (H) and (K) of para- pany Act of 1956 (12 U.S.C. 1849(b)(1)) is the Revised Statutes of the United States or graph (4) of section 11(n) of the Federal De- amended by inserting ‘‘and, if the trans- section 9B of the Federal Reserve Act, or posit Insurance Act, except that— action also involves an acquisition under May 4, 1999 CONGRESSIONAL RECORD — SENATE S4699 section 4 or section 6, the Board shall also surance companies including acquisitions conducting business in any State if the notify the Federal Trade Commission of such among the largest 20 percent of firms and ac- Board deems it necessary to determine and approval’’ before the period at the end of the quisitions within regions or other limited enforce compliance with this Act, the Bank first sentence. geographical areas. Holding Company Act of 1956 (12 U.S.C. 1841 SEC. 142. INTERAGENCY DATA SHARING. Subtitle F—Applying the Principles of Na- et seq.), or other applicable Federal banking To the extent not prohibited by other law, tional Treatment and Equality of Competi- law.’’. the Comptroller of the Currency, the Direc- tive Opportunity to Foreign Banks and For- Subtitle G—Federal Home Loan Bank System tor of the Office of Thrift Supervision, the eign Financial Institutions Modernization Federal Deposit Insurance Corporation, and SEC. 151. APPLYING THE PRINCIPLES OF NA- SEC. 161. SHORT TITLE. the Board of Governors of the Federal Re- TIONAL TREATMENT AND EQUALITY This subtitle may be cited as the ‘‘Federal serve System shall make available to the At- OF COMPETITIVE OPPORTUNITY TO Home Loan Bank System Modernization Act FOREIGN BANKS THAT ARE FINAN- torney General and the Federal Trade Com- of 1999’’. mission any data in the possession of any CIAL HOLDING COMPANIES. such banking agency that the antitrust Section 8(c) of the International Banking SEC. 162. DEFINITIONS. agency deems necessary for antitrust review Act of 1978 (12 U.S.C. 3106(c)) is amended by Section 2 of the Federal Home Loan Bank of any transaction requiring notice to any adding at the end the following new para- Act (12 U.S.C. 1422) is amended— such antitrust agency or the approval of graph: (1) in paragraph (1), by striking ‘‘term such agency under section 3, 4, or 6 of the ‘‘(3) TERMINATION OF GRANDFATHERED ‘Board’ means’’ and inserting ‘‘terms ‘Fi- Bank Holding Company Act of 1956, section RIGHTS.— nance Board’ and ‘Board’ mean’’; 18(c) of the Federal Deposit Insurance Act, ‘‘(A) IN GENERAL.—If any foreign bank or (2) by striking paragraph (3) and inserting the National Bank Consolidation and Merger foreign company files a declaration under the following: Act, section 10 of the Home Owners’ Loan section 6(b)(1)(D) of the Bank Holding Com- ‘‘(3) STATE.—The term ‘State’, in addition Act, or the antitrust laws. pany Act of 1956, or receives a determination to the States of the United States, includes the District of Columbia, Guam, Puerto SEC. 143. CLARIFICATION OF STATUS OF SUBSIDI- under section 10(d)(1) of the Bank Holding ARIES AND AFFILIATES. Company Act of 1956, any authority con- Rico, the United States Virgin Islands, American Samoa, and the Commonwealth of (a) CLARIFICATION OF FEDERAL TRADE COM- ferred by this subsection on any foreign bank the Northern Mariana Islands.’’; and MISSION JURISDICTION.—Any person which di- or company to engage in any activity which rectly or indirectly controls, is controlled di- the Board has determined to be permissible (3) by adding at the end the following new rectly or indirectly by, or is directly or indi- for financial holding companies under sec- paragraph: rectly under common control with, any bank tion 6 of such Act shall terminate imme- ‘‘(13) COMMUNITY FINANCIAL INSTITUTION.— or savings association (as such terms are de- diately. ‘‘(A) IN GENERAL.—The term ‘community fined in section 3 of the Federal Deposit In- ‘‘(B) RESTRICTIONS AND REQUIREMENTS AU- financial institution’ means a member— surance Act) and is not itself a bank or sav- THORIZED.—If a foreign bank or company ‘‘(i) the deposits of which are insured under ings association shall not be deemed to be a that engages, directly or through an affiliate the Federal Deposit Insurance Act; and bank or savings association for purposes of pursuant to paragraph (1), in an activity ‘‘(ii) that has, as of the date of the trans- the Federal Trade Commission Act or any which the Board has determined to be per- action at issue, less than $500,000,000 in aver- other law enforced by the Federal Trade missible for financial holding companies age total assets, based on an average of total Commission. under section 6 of the Bank Holding Com- assets over the 3 years preceding that date. (b) SAVINGS PROVISION.—No provision of pany Act of 1956 has not filed a declaration ‘‘(B) ADJUSTMENTS.—The $500,000,000 limit this section shall be construed as restricting with the Board of its status as a financial referred to in subparagraph (A)(ii) shall be the authority of any Federal banking agency holding company under such section or re- adjusted annually by the Finance Board, (as defined in section 3 of the Federal De- ceived a determination under section 10(d)(1) based on the annual percentage increase, if posit Insurance Act) under any Federal by the end of the 2-year period beginning on any, in the Consumer Price Index for all banking law, including section 8 of the Fed- the date of enactment of the Financial Serv- urban consumers, as published by the De- eral Deposit Insurance Act. ices Act of 1999, the Board, giving due regard partment of Labor.’’. (c) HART-SCOTT-RODINO AMENDMENT.—Sec- to the principle of national treatment and SEC. 163. SAVINGS ASSOCIATION MEMBERSHIP. tion 7A(c)(7) of the Clayton Act (15 U.S.C. equality of competitive opportunity, may (a) FEDERAL HOME LOAN BANK MEMBER- 18a(c)(7)) is amended by inserting before the impose such restrictions and requirements SHIP.—Section 5(f) of the Home Owners’ Loan semicolon at the end thereof the following: on the conduct of such activities by such for- Act (12 U.S.C. 1464(f)) is amended to read as ‘‘, except that a portion of a transaction is eign bank or company as are comparable to follows: not exempt under this paragraph if such por- those imposed on a financial holding com- ‘‘(f) FEDERAL HOME LOAN BANK MEMBER- tion of the transaction (A) requires notice pany organized under the laws of the United SHIP.—On and after January 1, 1999, a Federal under section 6 of the Bank Holding Com- States, including a requirement to conduct savings association may become a member of pany Act of 1956; and (B) does not require ap- such activities in compliance with any pru- the Federal Home Loan Bank System, and proval under section 3 or 4 of the Bank Hold- dential safeguards established under section shall qualify for such membership in the ing Company Act of 1956’’. 5(h) of the Bank Holding Company Act of manner provided by the Federal Home Loan SEC. 144. ANNUAL GAO REPORT. 1956.’’. Bank Act.’’. (a) IN GENERAL.—By the end of the 1-year SEC. 152. APPLYING THE PRINCIPLES OF NA- (b) WITHDRAWAL.—Section 6(e) of the Fed- period beginning on the date of enactment of TIONAL TREATMENT AND EQUALITY eral Home Loan Bank Act (12 U.S.C. 1426(e)) OF COMPETITIVE OPPORTUNITY TO this Act and annually thereafter, the Comp- is amended by striking ‘‘Any member other FOREIGN BANKS AND FOREIGN FI- than a Federal savings and loan association troller General of the United States shall NANCIAL INSTITUTIONS THAT ARE submit a report to the Congress on market WHOLESALE FINANCIAL INSTITU- may withdraw’’ and inserting ‘‘Any member concentration in the financial services in- TIONS. may withdraw’’. dustry and its impact on consumers. Section 8A of the Federal Deposit Insur- SEC. 164. ADVANCES TO MEMBERS; COLLATERAL. (b) ANALYSIS.—Each report submitted ance Act (as added by section 136(c)(2) of this (a) IN GENERAL.—Section 10(a) of the Fed- under subsection (a) shall contain an anal- Act) is amended by adding at the end the fol- eral Home Loan Bank Act (12 U.S.C. 1430(a)) ysis of— lowing new subsection: is amended— (1) the positive and negative effects of af- ‘‘(i) VOLUNTARY TERMINATION OF DEPOSIT (1) by redesignating paragraphs (1) through filiations between various types of financial INSURANCE.—The provisions on voluntary (4) as subparagraphs (A) through (D), respec- companies, and of acquisitions pursuant to termination of insurance in this section tively, and indenting appropriately; this Act and the amendments made by this shall apply to an insured branch of a foreign (2) by striking ‘‘(a) Each’’ and inserting the Act to other provisions of law, including any bank (including a Federal branch) in the following: positive or negative effects on consumers, same manner and to the same extent as they ‘‘(a) IN GENERAL.— area markets, and submarkets thereof or on apply to an insured State bank or a national ‘‘(1) ALL ADVANCES.—Each’’; registered securities brokers and dealers bank.’’. (3) by striking the second sentence and in- which have been purchased by depository in- SEC. 153. REPRESENTATIVE OFFICES. serting the following: stitutions or depository institution holding (a) DEFINITION OF ‘‘REPRESENTATIVE OF- ‘‘(2) PURPOSES OF ADVANCES.—A long-term companies; FICE’’.—Section 1(b)(15) of the International advance may only be made for the purposes (2) the changes in business practices and Banking Act of 1978 (12 U.S.C. 3101(15)) is of— the effects of any such changes on the avail- amended by striking ‘‘State agency, or sub- ‘‘(A) providing funds to any member for ability of venture capital, consumer credit, sidiary of a foreign bank’’ and inserting ‘‘or residential housing finance; and and other financial services or products and State agency’’. ‘‘(B) providing funds to any community fi- the availability of capital and credit for (b) EXAMINATIONS.—Section 10(c) of the nancial institution for small businesses, ag- small businesses; and International Banking Act of 1978 (12 U.S.C. ricultural, rural development, or low-income (3) the acquisition patterns among deposi- 3107(c)) is amended by adding at the end the community development lending.’’; tory institutions, depository institution following: ‘‘The Board may also make exami- (4) by striking ‘‘A Bank’’ and inserting the holding companies, securities firms, and in- nations of any affiliate of a foreign bank following: S4700 CONGRESSIONAL RECORD — SENATE May 4, 1999

‘‘(3) COLLATERAL.—A Bank’’; (c) REPEAL OF SECTIONS 22A AND 27.—The (1) SECTION 9.—Section 9 of the Federal (5) in paragraph (3) (as so designated by Federal Home Loan Bank Act (12 U.S.C. 1421 Home Loan Bank Act (12 U.S.C. 1429) is paragraph (4) of this subsection)— et seq.) is amended by striking sections 22A amended— (A) in subparagraph (C) (as so redesignated (12 U.S.C. 1442a) and 27 (12 U.S.C. 1447). (A) in the second sentence, by striking by paragraph (1) of this subsection) by strik- ‘‘with the approval of the Board’’; and (d) SECTION 12.—Section 12 of the Federal ing ‘‘Deposits’’ and inserting ‘‘Cash or depos- (B) in the third sentence, by striking ‘‘, Home Loan Bank Act (12 U.S.C. 1432) is its’’; subject to the approval of the Board,’’. amended— (B) in subparagraph (D) (as so redesignated (2) SECTION 10.—Section 10 of the Federal (1) in subsection (a)— by paragraph (1) of this subsection), by strik- Home Loan Bank Act (12 U.S.C. 1430) is (A) by striking ‘‘, but, except’’ and all that ing the second sentence; and amended— follows through ‘‘ten years’’; (C) by inserting after subparagraph (D) (as (A) in subsection (c)— (B) by striking ‘‘, subject to the approval so redesignated by paragraph (1) of this sub- (i) in the first sentence, by striking of the Board’’ each place that term appears; section) the following new subparagraph: ‘‘Board’’ and inserting ‘‘Federal home loan (C) by striking ‘‘and, by its Board of direc- ‘‘(E) Secured loans for small business, agri- bank’’; and tors,’’ and all that follows through ‘‘agent of culture, rural development, or low-income (ii) in the second sentence, by striking such bank,’’ and inserting ‘‘and, by the board community development, or securities rep- ‘‘held by’’ and all that follows before the pe- of directors of the bank, to prescribe, amend, resenting a whole interest in such secured riod; and repeal by-laws governing the manner in loans, in the case of any community finan- (B) in subsection (d)— which its affairs may be administered, con- cial institution.’’; (i) in the first sentence, by striking ‘‘and sistent with applicable laws and regulations, (6) in paragraph (5)— the approval of the Board’’; and as administered by the Finance Board. No of- (A) in the second sentence, by striking (ii) by striking ‘‘Subject to the approval of ficer, employee, attorney, or agent of a Fed- ‘‘and the Board’’; the Board, any’’ and inserting ‘‘Any’’; and eral home loan bank’’; and (B) in the third sentence, by striking (C) in subsection (j)(1)— (D) by striking ‘‘Board of directors’’ each ‘‘Board’’ and inserting ‘‘Federal home loan (i) by striking ‘‘to subsidize the interest place that term appears and inserting ‘‘board bank’’; and rate on advances’’ and inserting ‘‘to provide of directors’’; and (C) by striking ‘‘(5) Paragraphs (1) through subsidies, including subsidized interest rates (2) in subsection (b), by striking ‘‘loans (4)’’ and inserting the following: on advances’’; banks’’ and inserting ‘‘loan banks’’. ‘‘(4) ADDITIONAL BANK AUTHORITY.—Sub- (ii) by striking ‘‘Pursuant’’ and inserting paragraphs (A) through (E) of paragraph (3)’’; (e) POWERS AND DUTIES OF FEDERAL HOUS- the following: and ING FINANCE BOARD.— ‘‘(A) ESTABLISHMENT.—Pursuant’’; and (7) by adding at the end the following: (1) ISSUANCE OF NOTICES OF VIOLATIONS.— (iii) by adding at the end the following new ‘‘(5) REVIEW OF CERTAIN COLLATERAL STAND- Section 2B(a) of the Federal Home Loan subparagraph: ARDS.—The Board may review the collateral Bank Act (12 U.S.C. 1422b(a)) is amended by ‘‘(B) NONDELEGATION OF APPROVAL AUTHOR- standards applicable to each Federal home adding at the end the following new para- ITY.—Subject to such regulations as the Fi- loan bank for the classes of collateral de- graphs: nance Board may prescribe, the board of di- scribed in subparagraphs (D) and (E) of para- ‘‘(5) To issue and serve a notice of charges rectors of each Federal home loan bank may graph (3), and may, if necessary for safety upon a Federal home loan bank or upon any approve or disapprove requests from mem- and soundness purposes, require an increase executive officer or director of a Federal bers for Affordable Housing Program sub- in the collateral standards for any or all of home loan bank if, in the determination of sidies, and may not delegate such author- those classes of collateral. the Finance Board, the bank, executive offi- ity.’’. ‘‘(6) DEFINITIONS.—For purposes of this sub- cer, or director is engaging or has engaged (g) SECTION 16.—Section 16(a) of the Fed- section, the terms ‘small business’, ‘agri- in, or the Finance Board has reasonable eral Home Loan Bank Act (12 U.S.C. 1436(a)) culture’, ‘rural development’, and ‘low-in- cause to believe that the bank, executive of- is amended— come community development’ shall have ficer, or director is about to engage in, any (1) in the third sentence— the meanings given those terms by rule or conduct that violates any provision of this (A) by striking ‘‘net earnings’’ and insert- regulation of the Finance Board.’’. Act or any law, order, rule, or regulation or ing ‘‘previously retained earnings or current (b) CLERICAL AMENDMENT.—The section any condition imposed in writing by the Fi- net earnings’’; and heading for section 10 of the Federal Home nance Board in connection with the granting (B) by striking ‘‘, and then only with the Loan Bank Act (12 U.S.C. 1430) is amended to of any application or other request by the approval of the Federal Housing Finance read as follows: bank, or any written agreement entered into Board’’; and ‘‘SEC. 10. ADVANCES TO MEMBERS.’’. by the bank with the agency, in accordance (2) by striking the fourth sentence. (c) CONFORMING AMENDMENTS RELATING TO with the procedures provided in section (h) SECTION 18.—Section 18(b) of the Fed- MEMBERS WHICH ARE NOT QUALIFIED THRIFT 1371(c) of the Federal Housing Enterprises eral Home Loan Bank Act (12 U.S.C. 1438(b)) LENDERS—Section 10(e)(1) of the Federal Financial Safety and Soundness Act of 1992. is amended by striking paragraph (4). Home Loan Bank Act (12 U.S.C. 1430(e)(1)) is Such authority includes the same authority SEC. 167. RESOLUTION FUNDING CORPORATION. to take affirmative action to correct condi- amended in the second sentence, by inserting (a) IN GENERAL.—Section 21B(f)(2)(C) of the before the period ‘‘or, in the case of any com- tions resulting from violations or practices Federal Home Loan Bank Act (12 U.S.C. munity financial institution, for the pur- or to limit activities of a bank or any execu- 1441b(f)(2)(C)) is amended to read as follows: tive officer or director of a bank as appro- poses described in subsection (a)(2)’’. ‘‘(C) PAYMENTS BY FEDERAL HOME LOAN priate Federal banking agencies have to take SEC. 165. ELIGIBILITY CRITERIA. BANKS.— with respect to insured depository institu- Section 4(a) of the Federal Home Loan ‘‘(i) IN GENERAL.—To the extent that the Bank Act (12 U.S.C. 1424(a)) is amended— tions under paragraphs (6) and (7) of section amounts available pursuant to subpara- (1) in paragraph (2)(A), by inserting, 8(b) of the Federal Deposit Insurance Act, graphs (A) and (B) are insufficient to cover ‘‘(other than a community financial institu- and to have all other powers, rights, and du- the amount of interest payments, each Fed- tion)’’ after ‘‘institution’’; and ties to enforce this Act with respect to the eral home loan bank shall pay to the Fund- (2) by adding at the end the following new Federal home loan banks and their executive ing Corporation in each calendar year, 20.75 paragraph: officers and directors as the Office of Federal percent of the net earnings of that bank Housing Enterprise Oversight has to enforce ‘‘(3) LIMITED EXEMPTION FOR COMMUNITY FI- (after deducting expenses relating to section the Federal Housing Enterprises Financial NANCIAL INSTITUTIONS.—A community finan- 10(j) and operating expenses). Safety and Soundness Act of 1992, the Fed- cial institution that otherwise meets the re- ‘‘(ii) ANNUAL DETERMINATION.—The Board quirements of paragraph (2) may become a eral National Mortgage Association Charter annually shall determine the extent to which member without regard to the percentage of Act, or the Federal Home Loan Mortgage the value of the aggregate amounts paid by its total assets that is represented by resi- Corporation Act with respect to the Federal the Federal home loan banks exceeds or falls dential mortgage loans, as described in sub- housing enterprises under the Federal Hous- short of the value of an annuity of paragraph (A) of paragraph (2).’’. ing Enterprises Financial Safety and Sound- $300,000,000 per year that commences on the ness Act of 1992. SEC. 166. MANAGEMENT OF BANKS. issuance date and ends on the final scheduled ‘‘(6) To address any insufficiencies in cap- (a) BOARD OF DIRECTORS.—Section 7(d) of maturity date of the obligations, and shall ital levels resulting from the application of the Federal Home Loan Bank Act (12 U.S.C. select appropriate present value factors for section 5(f) of the Home Owners’ Loan Act. 1427(d)) is amended— making such determinations. ‘‘(7) To sue and be sued, by and through its (1) by striking ‘‘(d) The term’’ and insert- ‘‘(iii) PAYMENT TERM ALTERATIONS.—The own attorneys.’’. ing the following: Board shall extend or shorten the term of (2) TECHNICAL AMENDMENT.—Section 111 of ‘‘(d) TERMS OF OFFICE.—The term’’; and the payment obligations of a Federal home Public Law 93–495 (12 U.S.C. 250) is amended (2) by striking ‘‘shall be two years’’. loan bank under this subparagraph as nec- by inserting ‘‘Federal Housing Finance (b) COMPENSATION.—Section 7(i) of the Fed- essary to ensure that the value of all pay- eral Home Loan Bank Act (12 U.S.C. 1427(i)) Board,’’ after ‘‘Director of the Office of ments made by the banks is equivalent to is amended by striking ‘‘, subject to the ap- Thrift Supervision,’’. the value of an annuity referred to in clause proval of the board’’. (f) ELIGIBILITY TO SECURE ADVANCES.— (ii). May 4, 1999 CONGRESSIONAL RECORD — SENATE S4701

‘‘(iv) TERM BEYOND MATURITY.—If the Board (3) MERGER ISSUES.—Issues relating to the or other arrangement with a broker or dealer extends the term of payments beyond the planned merger of the funds, including the registered under this title under which the final scheduled maturity date for the obliga- cost of merging the funds and the manner in broker or dealer offers brokerage services on tions, each Federal home loan bank shall which such costs will be distributed among or off the premises of the bank if— continue to pay 20.75 percent of its net earn- the members of the respective funds. ‘‘(I) such broker or dealer is clearly identi- ings (after deducting expenses relating to (b) REPORT REQUIRED.— fied as the person performing the brokerage section 10(j) and operating expenses) to the (1) IN GENERAL.—Before the end of the 9- services; Treasury of the United States until the month period beginning on the date of enact- ‘‘(II) the broker or dealer performs broker- value of all such payments by the Federal ment of this Act, the Board of Directors of age services in an area that is clearly home loan banks is equivalent to the value the Federal Deposit Insurance Corporation marked and, to the extent practicable, phys- of an annuity referred to in clause (ii). In the shall submit a report to the Congress on the ically separate from the routine deposit-tak- final year in which the Federal home loan study conducted pursuant to subsection (a). ing activities of the bank; banks are required to make any payment to (2) CONTENTS OF REPORT.—The report shall ‘‘(III) any materials used by the bank to the Treasury under this subparagraph, if the include— advertise or promote generally the avail- dollar amount represented by 20.75 percent of (A) detailed findings of the Board of Direc- ability of brokerage services under the con- the net earnings of the Federal home loan tors with regard to the issues described in tractual or other arrangement clearly indi- banks exceeds the remaining obligation of subsection (a); cate that the brokerage services are being the banks to the Treasury, the Finance (B) a description of the plans developed by provided by the broker or dealer and not by Board shall reduce the percentage pro rata the Board of Directors for merging the Bank the bank; to a level sufficient to pay the remaining ob- Insurance Fund and the Savings Association ‘‘(IV) any materials used by the bank to ligation.’’. Insurance Fund, including an estimate of the advertise or promote generally the avail- (b) EFFECTIVE DATE.—The amendment amount of the cost of such merger which ability of brokerage services under the con- made by subsection (a) shall become effec- would be borne by Savings Association In- tractual or other arrangement are in compli- tive on January 1, 1999. Payments made by a surance Fund members; and ance with the Federal securities laws before Federal home loan bank before that effective (C) such recommendations for legislative distribution; date shall be counted toward the total obli- and administrative action as the Board of ‘‘(V) bank employees (other than associ- gation of that bank under section 21B(f)(2)(C) Directors determines to be necessary or ap- ated persons of a broker or dealer who are of the Federal Home Loan Bank Act, as propriate to preserve the safety and sound- qualified pursuant to the rules of a self-regu- amended by this section. ness of the deposit insurance funds, reduce latory organization) perform only clerical or ministerial functions in connection with bro- Subtitle H—Direct Activities of Banks the risks to such funds, provide for an effi- kerage transactions including scheduling ap- SEC. 181. AUTHORITY OF NATIONAL BANKS TO cient merger of such funds, and for other purposes. pointments with the associated persons of a UNDERWRITE CERTAIN MUNICIPAL broker or dealer, except that bank employ- BONDS. (c) DEFINITIONS.—For purposes of this sec- The paragraph designated the Seventh of tion, the following definitions shall apply: ees may forward customer funds or securities section 5136 of the Revised Statutes of the (1) INSURED DEPOSITORY INSTITUTION.—The and may describe in general terms the range of investment vehicles available from the United States (12 U.S.C. 24(7)) is amended by term ‘‘insured depository institution’’ has bank and the broker or dealer under the con- adding at the end the following new sen- the same meaning as in section 3(c) of the tractual or other arrangement; tence: ‘‘In addition to the provisions in this Federal Deposit Insurance Act. ‘‘(VI) bank employees do not directly re- paragraph for dealing in, underwriting or (2) BIF AND SAIF MEMBERS.—The terms ceive incentive compensation for any broker- purchasing securities, the limitations and re- ‘‘Bank Insurance Fund member’’ and ‘‘Sav- age transaction unless such employees are strictions contained in this paragraph as to ings Association Insurance Fund member’’ associated persons of a broker or dealer and dealing in, underwriting, and purchasing in- have the same meanings as in section 7(l) of are qualified pursuant to the rules of a self- vestment securities for the national bank’s the Federal Deposit Insurance Act. regulatory organization, except that the own account shall not apply to obligations SEC. 187. ELIMINATION OF SAIF AND DIF SPE- bank employees may receive compensation (including limited obligation bonds, revenue CIAL RESERVES. (a) SAIF SPECIAL RESERVES.—Section for the referral of any customer if the com- bonds, and obligations that satisfy the re- pensation is a nominal one-time cash fee of quirements of section 142(b)(1) of the Inter- 11(a)(6) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(6)) is amended by striking a fixed dollar amount and the payment of nal Revenue Code of 1986) issued by or on be- the fee is not contingent on whether the re- half of any state or political subdivision of a subparagraph (L). (b) DIF SPECIAL RESERVES.—Section 2704 of ferral results in a transaction; state, including any municipal corporate in- the Deposit Insurance Funds Act of 1996 (12 ‘‘(VII) such services are provided by the strumentality of 1 or more states, or any U.S.C. 1821 note) is amended— broker or dealer on a basis in which all cus- public agency or authority of any state or (1) by striking subsection (b); and tomers which receive any services are fully political subdivision of a state, if the na- (2) in subsection (d)— disclosed to the broker or dealer; tional banking association is well capitalized (A) by striking paragraph (4); ‘‘(VIII) the bank does not carry a securities (as defined in section 38 of the Federal De- (B) in paragraph (6)(C)(i), by striking ‘‘(6) account of the customer except in a cus- posit Insurance Act).’’. and (7)’’ and inserting ‘‘(5), (6), and (7)’’; and tomary custodian or trustee capacity; and Subtitle I—Deposit Insurance Funds (C) in paragraph (6)(C), by striking clause ‘‘(IX) the bank, broker, or dealer informs SEC. 186. STUDY OF SAFETY AND SOUNDNESS OF (ii) and inserting the following: each customer that the brokerage services FUNDS. ‘‘(ii) by redesignating paragraph (8) as are provided by the broker or dealer and not (a) STUDY REQUIRED.—The Board of Direc- paragraph (5).’’. by the bank and that the securities are not tors of the Federal Deposit Insurance Cor- deposits or other obligations of the bank, are Subtitle J—Effective Date of Title poration shall conduct a study of the fol- not guaranteed by the bank, and are not in- lowing issues with regard to the Bank Insur- SEC. 191. EFFECTIVE DATE. sured by the Federal Deposit Insurance Cor- ance Fund and the Savings Association In- Except with regard to any subtitle or other poration. provision of this title for which a specific ef- surance Fund: ‘‘(ii) TRUST ACTIVITIES.—The bank effects fective date is provided, this title and the (1) SAFETY AND SOUNDNESS.—The safety transactions in a trustee capacity, or effects and soundness of the funds and the adequacy amendments made by this title shall take ef- transactions in a fiduciary capacity in its fect at the end of the 270-day period begin- of the reserve requirements applicable to the trust department or other department that ning on the date of enactment of this Act. funds in light of— is regularly examined by bank examiners for (A) the size of the insured depository insti- TITLE II—FUNCTIONAL REGULATION compliance with fiduciary principles and tutions which are resulting from mergers Subtitle A—Brokers and Dealers standards, and (in either case)— and consolidations since the effective date of SEC. 201. DEFINITION OF BROKER. ‘‘(I) is primarily compensated for such the Riegle-Neal Interstate Banking and Section 3(a)(4) of the Securities Exchange transactions on the basis of an administra- Branching Efficiency Act of 1994; and Act of 1934 (15 U.S.C. 78c(a)(4)) is amended to tion or annual fee (payable on a monthly, (B) the affiliation of insured depository in- read as follows: quarterly, or other basis), a percentage of as- stitutions with other financial institutions ‘‘(4) BROKER.— sets under management, or a flat or capped pursuant to this Act and the amendments ‘‘(A) IN GENERAL.—The term ‘broker’ per order processing fee equal to not more made by this Act. means any person engaged in the business of than the cost incurred by the bank in con- (2) CONCENTRATION LEVELS.—The con- effecting transactions in securities for the nection with executing securities trans- centration levels of the funds, taking into account of others. actions for trustee and fiduciary customers, account the number of members of each fund ‘‘(B) EXCEPTION FOR CERTAIN BANK ACTIVI- or any combination of such fees, consistent and the geographic distribution of such TIES.—A bank shall not be considered to be a with fiduciary principles and standards; and members, and the extent to which either broker because the bank engages in any of ‘‘(II) does not publicly solicit brokerage fund is exposed to higher risks due to a re- the following activities under the conditions business, other than by advertising that it gional concentration of members or an insuf- described: effects transactions in securities in conjunc- ficient membership base relative to the size ‘‘(i) THIRD PARTY BROKERAGE ARRANGE- tion with advertising its other trust activi- of member institutions. MENTS.—The bank enters into a contractual ties. S4702 CONGRESSIONAL RECORD — SENATE May 4, 1999

‘‘(iii) PERMISSIBLE SECURITIES TRANS- the Investment Company Act of 1940 that ‘‘(i) the bank directs such trade to a reg- ACTIONS.—The bank effects transactions in— holds itself out as a money market fund. istered broker dealer for execution; ‘‘(I) commercial paper, bankers accept- ‘‘(vi) AFFILIATE TRANSACTIONS.—The bank ‘‘(ii) the trade is a cross trade or other sub- ances, or commercial bills; effects transactions for the account of any stantially similar trade of a security that— ‘‘(II) exempted securities; affiliate of the bank (as defined in section 2 ‘‘(I) is made by the bank or between the ‘‘(III) qualified Canadian government obli- of the Bank Holding Company Act of 1956) bank and an affiliated fiduciary; and gations as defined in section 5136 of the Re- other than— ‘‘(II) is not in contravention of fiduciary vised Statutes, in conformity with section ‘‘(I) a registered broker or dealer; or principles established under applicable Fed- 15C of this title and the rules and regulations ‘‘(II) an affiliate that is engaged in mer- eral or State law; or thereunder, or obligations of the North chant banking, as described in section ‘‘(iii) the trade is conducted in some other American Development Bank; or 6(c)(3)(H) of the Bank Holding Company Act manner permitted under rules, regulations, ‘‘(IV) any standardized, credit enhanced of 1956. or orders as the Commission may prescribe debt security issued by a foreign government ‘‘(vii) PRIVATE SECURITIES OFFERINGS.—The or issue. pursuant to the March 1989 plan of then Sec- bank— ‘‘(D) NO EFFECT OF BANK EXEMPTIONS ON retary of the Treasury Brady, used by such ‘‘(I) effects sales as part of a primary offer- OTHER COMMISSION AUTHORITY.—The excep- foreign government to retire outstanding ing of securities not involving a public offer- tion to being considered a broker for a bank commercial bank loans. ing, pursuant to section 3(b), 4(2), or 4(6) of engaged in activities described in subpara- the Securities Act of 1933 or the rules and ‘‘(iv) CERTAIN STOCK PURCHASE PLANS.— graphs (B) and (C) shall not affect the au- regulations issued thereunder; ‘‘(I) EMPLOYEE BENEFIT PLANS.—The bank thority of the Commission under any other ‘‘(II) at any time after the date that is 1 effects transactions, as part of its transfer provision of this Act or any other securities year after the date of enactment of the Fi- agency activities, in the securities of an law. nancial Services Act of 1999, is not affiliated issuer as part of any pension, retirement, ‘‘(E) FIDUCIARY CAPACITY.—For purposes of with a broker or dealer that has been reg- profit-sharing, bonus, thrift, savings, incen- subparagraph (B)(ii), the term ‘fiduciary ca- istered for more than 1 year in accordance tive, or other similar benefit plan for the em- pacity’ means— with this title, and engages in dealing, mar- ployees of that issuer or its subsidiaries, if— ‘‘(i) in the capacity as trustee, executor, ket making, or underwriting activities, (aa) the bank does not solicit transactions administrator, registrar of stocks and bonds, other than with respect to exempted securi- transfer agent, guardian, assignee, receiver, or provide investment advice with respect to ties; and the purchase or sale of securities in connec- or custodian under a uniform gift to minor ‘‘(III) effects transactions exclusively with act, or as an investment adviser if the bank tion with the plan; and qualified investors. ‘‘(bb) the bank’s compensation for such receives a fee for its investment advice; ‘‘(viii) SAFEKEEPING AND CUSTODY ACTIVI- plan or program consists primarily of admin- ‘‘(ii) in any capacity in which the bank TIES.— possesses investment discretion on behalf of istration fees, or flat or capped per order ‘‘(I) IN GENERAL.—The bank, as part of cus- processing fees, or both. another; or tomary banking activities— ‘‘(iii) in any other similar capacity. ‘‘(II) DIVIDEND REINVESTMENT PLANS.—The ‘‘(aa) provides safekeeping or custody serv- ‘‘(F) EXCEPTION FOR ENTITIES SUBJECT TO bank effects transactions, as part of its ices with respect to securities, including the SECTION 15(e).—The term ‘broker’ does not in- transfer agency activities, in the securities exercise of warrants and other rights on be- clude a bank that— of an issuer as part of that issuer’s dividend half of customers; ‘‘(i) was, immediately prior to the enact- reinvestment plan, if— ‘‘(bb) facilitates the transfer of funds or se- ment of the Financial Services Act of 1999, ‘‘(aa) the bank does not solicit trans- curities, as a custodian or a clearing agency, subject to section 15(e); and actions or provide investment advice with in connection with the clearance and settle- ‘‘(ii) is subject to such restrictions and re- respect to the purchase or sale of securities ment of its customers’ transactions in secu- quirements as the Commission considers ap- in connection with the plan; rities; propriate.’’. ‘‘(bb) the bank does not net shareholders’ ‘‘(cc) effects securities lending or bor- buy and sell orders, other than for programs rowing transactions with or on behalf of cus- SEC. 202. DEFINITION OF DEALER. for odd-lot holders or plans registered with tomers as part of services provided to cus- Section 3(a)(5) of the Securities Exchange the Commission; and tomers pursuant to division (aa) or (bb) or Act of 1934 (15 U.S.C. 78c(a)(5)) is amended to ‘‘(cc) the bank’s compensation for such invests cash collateral pledged in connection read as follows: plan or program consists primarily of admin- with such transactions; or ‘‘(5) DEALER.— istration fees, or flat or capped per order ‘‘(dd) holds securities pledged by a cus- ‘‘(A) IN GENERAL.—The term ‘dealer’ means processing fees, or both. tomer to another person or securities subject any person engaged in the business of buying ‘‘(III) ISSUER PLANS.—The bank effects to purchase or resale agreements involving a and selling securities for such person’s own transactions, as part of its transfer agency customer, or facilitates the pledging or account through a broker or otherwise. activities, in the securities of an issuer as transfer of such securities by book entry or ‘‘(B) EXCEPTION FOR PERSON NOT ENGAGED IN part of a plan or program for the purchase or as otherwise provided under applicable law. THE BUSINESS OF DEALING.—The term ‘dealer’ sale of that issuer’s shares, if— ‘‘(II) EXCEPTION FOR CARRYING BROKER AC- does not include a person that buys or sells ‘‘(aa) the bank does not solicit trans- TIVITIES.—The exception to being considered securities for such person’s own account, ei- actions or provide investment advice with a broker for a bank engaged in activities de- ther individually or in a fiduciary capacity, respect to the purchase or sale of securities scribed in subclause (I) shall not apply if the but not as a part of a regular business. in connection with the plan or program; bank, in connection with such activities, ‘‘(C) EXCEPTION FOR CERTAIN BANK ACTIVI- ‘‘(bb) the bank does not net shareholders’ acts in the United States as a carrying TIES.—A bank shall not be considered to be a buy and sell orders, other than for programs broker (as such term, and different formula- dealer because the bank engages in any of for odd-lot holders or plans registered with tions thereof, are used in section 15(c)(3) and the following activities under the conditions the Commission; and the rules and regulations thereunder) for any described: ‘‘(cc) the bank’s compensation for such broker or dealer, unless such carrying broker ‘‘(i) PERMISSIBLE SECURITIES TRANS- plan or program consists primarily of admin- activities are engaged in with respect to gov- ACTIONS.—The bank buys or sells— istration fees, or flat or capped per order ernment securities (as defined in paragraph ‘‘(I) commercial paper, bankers accept- processing fees, or both. (42) of this subsection). ances, or commercial bills; ‘‘(IV) PERMISSIBLE DELIVERY OF MATE- ‘‘(ix) BANKING PRODUCTS.—The bank effects ‘‘(II) exempted securities; RIALS.—The exception to being considered a transactions in traditional banking prod- ‘‘(III) qualified Canadian government obli- broker for a bank engaged in activities de- ucts, as defined in section 206(a) of the Fi- gations as defined in section 5136 of the Re- scribed in subclauses (I), (II), and (III) will nancial Services Act of 1999. vised Statutes of the United States, in con- not be affected by a bank’s delivery of writ- ‘‘(x) DE MINIMIS EXCEPTION.—The bank ef- formity with section 15C of this title and the ten or electronic plan materials to employ- fects, other than in transactions referred to rules and regulations thereunder, or obliga- ees of the issuer, shareholders of the issuer, in clauses (i) through (ix), not more than 500 tions of the North American Development or members of affinity groups of the issuer, transactions in securities in any calendar Bank; or so long as such materials are— year, and such transactions are not effected ‘‘(IV) any standardized, credit enhanced ‘‘(aa) comparable in scope or nature to by an employee of the bank who is also an debt security issued by a foreign government that permitted by the Commission as of the employee of a broker or dealer. pursuant to the March 1989 plan of then Sec- date of enactment of the Financial Services ‘‘(C) BROKER DEALER EXECUTION.—The ex- retary of the Treasury Brady, used by such Act of 1999; or ception to being considered a broker for a foreign government to retire outstanding ‘‘(bb) otherwise permitted by the Commis- bank engaged in activities described in commercial bank loans. sion. clauses (ii), (iv), and (viii) of subparagraph ‘‘(ii) INVESTMENT, TRUSTEE, AND FIDUCIARY ‘‘(v) SWEEP ACCOUNTS.—The bank effects (B) shall not apply if the activities described TRANSACTIONS.—The bank buys or sells secu- transactions as part of a program for the in- in such provisions result in the trade in the rities for investment purposes— vestment or reinvestment of bank deposit United States of any security that is a pub- ‘‘(I) for the bank; or funds into any no-load, open-end manage- licly traded security in the United States, ‘‘(II) for accounts for which the bank acts ment investment company registered under unless— as a trustee or fiduciary. May 4, 1999 CONGRESSIONAL RECORD — SENATE S4703

‘‘(iii) ASSET-BACKED TRANSACTIONS.—The extension of credit is conditioned upon the SEC. 206. DEFINITION AND TREATMENT OF BANK- bank engages in the issuance or sale to purchase or sale of a security. ING PRODUCTS. qualified investors, through a grantor trust ‘‘(2) PROCEDURES REQUIRED.—The appro- (a) DEFINITION OF TRADITIONAL BANKING or otherwise, of securities backed by or rep- priate Federal banking agencies shall jointly PRODUCT.—For purposes of paragraphs (4) resenting an interest in notes, drafts, accept- establish procedures and facilities for receiv- and (5) of section 3(a) of the Securities Ex- ances, loans, leases, receivables, other obli- ing and expeditiously processing complaints gations, or pools of any such obligations pre- against any bank or employee of a bank aris- change Act of 1934 (15 U.S.C. 78c(a) (4), (5)), dominantly originated by the bank, or a syn- ing in connection with the purchase or sale the term ‘‘traditional banking product’’ dicate of banks of which the bank is a mem- of a security by a customer, including a com- means— ber, or an affiliate of any such bank other plaint alleging a violation of the regulations (1) a deposit account, savings account, cer- than a broker or dealer. prescribed under paragraph (1), but excluding tificate of deposit, or other deposit instru- ‘‘(iv) BANKING PRODUCTS.—The bank buys a complaint involving an individual acting ment issued by a bank; or sells traditional banking products, as de- on behalf of such a broker or dealer who is (2) a banker’s acceptance; fined in section 206(a) of the Financial Serv- an associated person of such broker or deal- (3) a letter of credit issued or loan made by ices Act of 1999. er. The use of any such procedures and facili- a bank; ‘‘(v) DERIVATIVE INSTRUMENTS.—The bank ties by such a customer shall be at the elec- (4) a debit account at a bank arising from issues, buys, or sells any derivative instru- tion of the customer. Such procedures shall a credit card or similar arrangement; ment to which the bank is a party— include provisions to refer a complaint alleg- (5) a participation in a loan which the bank ‘‘(I) to or from a qualified investor, except ing fraud to the Securities and Exchange or an affiliate of the bank (other than a that if the instrument provides for the deliv- Commission and appropriate State securities broker or dealer) funds, participates in, or ery of one or more securities (other than a commissions. owns that is sold— derivative instrument or government secu- ‘‘(3) REQUIRED ACTIONS.—The actions re- (A) to qualified investors; or rity), the transaction shall be effected with quired by the Federal banking agencies (B) to other persons that— or through a registered broker or dealer; under paragraph (2) shall include the fol- (i) have the opportunity to review and as- ‘‘(II) to or from other persons, except that lowing: sess any material information, including in- if the derivative instrument provides for the ‘‘(A) establishing a group, unit, or bureau formation regarding the borrower’s credit- delivery of one or more securities (other within each such agency to receive such worthiness; and than a derivative instrument or government complaints; (ii) based on such factors as financial so- security), or is a security (other than a gov- ‘‘(B) developing and establishing proce- phistication, net worth, and knowledge and ernment security), the transaction shall be dures for investigating, and permitting cus- experience in financial matters, have the ca- effected with or through a registered broker tomers to investigate, such complaints; pability to evaluate the information avail- or dealer; or ‘‘(C) developing and establishing proce- able, as determined under generally applica- ‘‘(III) to or from any person if the instru- dures for informing customers of the rights ble banking standards or guidelines; and ment is neither a security nor provides for they may have in connection with such com- (6) any derivative instrument, whether or the delivery of one or more securities (other plaints; not individually negotiated, involving or re- ‘‘(D) developing and establishing proce- than a derivative instrument).’’. lating to— dures that allow customers a period of at (A) foreign currencies, except options on SEC. 203. REGISTRATION FOR SALES OF PRIVATE least 6 years to make complaints and that do SECURITIES OFFERINGS. foreign currencies that trade on a national not require customers to pay the costs of the Section 15A of the Securities Exchange Act securities exchange; proceeding; and (B) interest rates, except interest rate de- of 1934 (15 U.S.C. 78o–3) is amended by insert- ‘‘(E) developing and establishing proce- rivative instruments that— ing after subsection (i) the following new dures for resolving such complaints, includ- (i) are based on a security or a group or subsection: ing procedures for the recovery of losses to index of securities (other than government ‘‘(j) REGISTRATION FOR SALES OF PRIVATE the extent appropriate. securities or a group or index of government SECURITIES OFFERINGS.—A registered securi- ‘‘(4) CONSULTATION AND JOINT REGULA- securities); ties association shall create a limited quali- TIONS.—The Federal banking agencies shall (ii) provide for the delivery of one or more fication category for any associated person consult with each other and prescribe joint securities (other than government securi- of a member who effects sales as part of a regulations pursuant to paragraphs (1) and ties); or primary offering of securities not involving a (2), after consultation with the Securities public offering, pursuant to section 3(b), 4(2), and Exchange Commission. (iii) trade on a national securities exchange; and or 4(6) of the Securities Act of 1933 and the ‘‘(5) PROCEDURES IN ADDITION TO OTHER (C) commodities, other rates, indices, or rules and regulations thereunder, and shall REMEDIES.—The procedures and remedies deem qualified in such limited qualification provided under this subsection shall be in ad- other assets, except derivative instruments category, without testing, any bank em- dition to, and not in lieu of, any other rem- that— ployee who, in the 6-month period preceding edies available under law. (i) are securities or that are based on a group or index of securities (other than gov- the date of enactment of the Financial Serv- ‘‘(6) DEFINITION.—As used in this ices Act of 1999, engaged in effecting such subsection— ernment securities or a group or index of sales.’’. ‘‘(A) the term ‘security’ has the same government securities); SEC. 204. SALES PRACTICES AND COMPLAINT meaning as in section 3(a)(10) of the Securi- (ii) provide for the delivery of one or more PROCEDURES. ties Exchange Act of 1934; securities (other than government securi- Section 18 of the Federal Deposit Insurance ‘‘(B) the term ‘registered broker or dealer’ ties); or Act is amended by adding at the end the fol- has the same meaning as in section 3(a)(48) (iii) trade on a national securities ex- lowing new subsection: of the Securities Exchange Act of 1934; and change. ‘‘(s) SALES PRACTICES AND COMPLAINT PRO- ‘‘(C) the term ‘associated person’ has the (b) AMENDMENT TO THE SECURITIES EX- CEDURES WITH RESPECT TO BANK SECURITIES same meaning as in section 3(a)(18) of the Se- CHANGE ACT OF 1934.—Section 15 of the Secu- ACTIVITIES.— curities Exchange Act of 1934.’’. rities Exchange Act of 1934 (15 U.S.C. 78o) is ‘‘(1) REGULATIONS REQUIRED.—Each Federal SEC. 205. INFORMATION SHARING. amended by adding at the end the following banking agency shall prescribe and publish Section 18 of the Federal Deposit Insurance new subsection: in final form, not later than 6 months after Act is amended by adding at the end the fol- the date of enactment of the Financial Serv- lowing new subsection: ‘‘(i) TRANSACTIONS INVOLVING HYBRID PROD- ices Act of 1999, regulations which apply to ‘‘(t) RECORDKEEPING REQUIREMENTS.— UCTS.— retail transactions, solicitations, adver- ‘‘(1) REQUIREMENTS.—Each appropriate ‘‘(1) COMMISSION AUTHORITY.— tising, or offers of any security by any in- Federal banking agency, after consultation ‘‘(A) IN GENERAL.—The Commission may, sured depository institution or any affiliate with and consideration of the views of the after consultation with the Board, deter- thereof other than a registered broker or Commission, shall establish recordkeeping mine, by regulation published in the Federal dealer or an individual acting on behalf of requirements for banks relying on exceptions Register, that a bank that effects trans- such a broker or dealer who is an associated contained in paragraphs (4) and (5) of section actions in, or buys or sells, a new product person of such broker or dealer. Such regula- 3(a) of the Securities Exchange Act of 1934. should be subject to the registration require- tions shall include— Such recordkeeping requirements shall be ments of this section. ‘‘(A) requirements that sales practices sufficient to demonstrate compliance with ‘‘(B) LIMITATION.—The Commission may comply with just and equitable principles of the terms of such exceptions and be designed not impose the registration requirements of trade that are substantially similar to the to facilitate compliance with such excep- this section on any bank that effects trans- Rules of Fair Practice of the National Asso- tions. Each appropriate Federal banking actions in, or buys or sells, a product under ciation of Securities Dealers; and agency shall make any such information this subsection unless the Commission deter- ‘‘(B) requirements prohibiting (i) condi- available to the Commission upon request. mines in the regulations described in sub- tioning an extension of credit on the pur- ‘‘(2) DEFINITIONS.—As used in this subparagraph (A) that— chase or sale of a security; and (ii) any con- section the term ‘Commission’ means the Se- ‘‘(i) the subject product is a new product; duct leading a customer to believe that an curities and Exchange Commission.’’. ‘‘(ii) the subject product is a security; and S4704 CONGRESSIONAL RECORD — SENATE May 4, 1999 ‘‘(iii) imposing the registration require- section 206(a) of the Financial Services Act ment company (as defined in section 2(a)(48) ments of this section is necessary or appro- of 1999.’’. of the Investment Company Act of 1940); priate in the public interest and for the pro- (c) CLASSIFICATION LIMITED.—Classification ‘‘(iv) any small business investment com- tection of investors. of a particular product or instrument as a pany licensed by the United States Small ‘‘(2) OBJECTION TO COMMISSION REGULA- traditional banking product pursuant to this Business Administration under section 301(c) TION.— section or the amendments made by this sec- or (d) of the Small Business Investment Act ‘‘(A) FILING OF PETITION FOR REVIEW.—The tion shall not be construed as finding or im- of 1958; Board, or any aggrieved party, may obtain plying that such product or instrument is or ‘‘(v) any State sponsored employee benefit review of any final regulation described in is not a security for any purpose under the plan, or any other employee benefit plan, paragraph (1) in the United States Court of securities laws, or is or is not an account, within the meaning of the Employee Retire- Appeals for the District of Columbia Circuit agreement, contract, or transaction for any ment Income Security Act of 1974, other by filing in such court, not later than 60 days purpose under the Commodity Exchange Act. than an individual retirement account, if the (d) NO LIMITATION ON OTHER AUTHORITY TO after the date of publication of the final reg- investment decisions are made by a plan fi- CHALLENGE.—Nothing in this section or the ulation, a written petition requesting that duciary, as defined in section 3(21) of that amendments made by this section shall af- Act, which is either a bank, savings and loan the regulation be set aside. fect the right or authority of the Board of association, insurance company, or reg- ‘‘(B) TRANSMITTAL OF PETITION AND Governors of the Federal Reserve System, istered investment adviser; RECORD.—A copy of a petition described in any appropriate Federal banking agency, or ‘‘(vi) any trust whose purchases of securi- subparagraph (A) shall be transmitted as any interested party under any other provi- ties are directed by a person described in soon as possible by the Clerk of the Court to sion of law to object to or seek judicial re- clauses (i) through (v) of this subparagraph; an officer or employee of the Commission view as to whether a product or instrument ‘‘(vii) any market intermediary exempt designated for that purpose. Upon receipt of is or is not appropriately classified as a tra- under section 3(c)(2) of the Investment Com- the petition, the Commission shall file with ditional banking product under paragraphs pany Act of 1940; the court the regulation under review and (1) through (6) of section 206(a). any documents referred to therein, and any (e) INCORPORATED DEFINITIONS.—For pur- ‘‘(viii) any associated person of a broker or other relevant materials prescribed by the poses of this section— dealer other than a natural person; court. (1) the term ‘‘appropriate Federal banking ‘‘(ix) any foreign bank (as defined in sec- ‘‘(C) EXCLUSIVE JURISDICTION.—On the date agency’’ has the same meaning as in section tion 1(b)(7) of the International Banking Act of the filing of the petition under subpara- 3 of the Federal Deposit Insurance Act; of 1978); graph (A), the court has jurisdiction, which (2) the term ‘‘bank’’ has the same meaning ‘‘(x) the government of any foreign coun- becomes exclusive on the filing of the mate- as in section 3(a)(6) of the Securities Ex- try; rials set forth in subparagraph (B), to affirm change Act of 1934; ‘‘(xi) any corporation, company, or part- and enforce or to set aside the regulation at (3) the term ‘‘Board’’ means the Board of nership that owns and invests on a discre- issue. Governors of the Federal Reserve System; tionary basis, not less than $10,000,000 in in- ‘‘(D) STANDARD OF REVIEW.— (4) the term ‘‘government securities’’ has vestments; ‘‘(i) IN GENERAL.—The court shall deter- the same meaning as in section 3(a)(42) of the ‘‘(xii) any natural person who owns and in- mine to affirm and enforce or set aside a reg- Securities Exchange Act of 1934, and, for pur- vests on a discretionary basis, not less than ulation of the Commission under this sub- poses of this subsection, commercial paper, $10,000,000 in investments; section, based on the determination of the bankers acceptances, and commercial bills ‘‘(xiii) any government or political subdivi- court as to whether the subject product— shall be treated in the same manner as gov- sion, agency, or instrumentality of a govern- ‘‘(I) is a new product, as defined in this ernment securities; and ment who owns and invests on a discre- subsection; (5) the term ‘‘qualified investor’’ has the tionary basis not less than $50,000,000 in in- ‘‘(II) is a security; and same meaning as in section 3(a)(55) of the Se- vestments; or ‘‘(III) would be more appropriately regu- curities Exchange Act of 1934, as amended by ‘‘(xiv) any multinational or supranational lated under the Federal securities laws or this Act. entity or any agency or instrumentality thereof. the Federal banking laws, giving equal def- SEC. 207. DERIVATIVE INSTRUMENT AND QUALI- erence to the views of the Commission and FIED INVESTOR DEFINED. ‘‘(B) ADDITIONAL AUTHORITY.—The Commis- the Board. Section 3(a) of the Securities Exchange Act sion may, by rule or order, define a ‘qualified ‘‘(ii) CONSIDERATIONS.—In making a deter- of 1934 (15 U.S.C. 78c(a)) is amended by add- investor’ as any other person, taking into mination under clause (i)(III), the court shall ing at the end the following new paragraphs: consideration such factors as the financial consider— ‘‘(54) DERIVATIVE INSTRUMENT.— sophistication of the person, net worth, and ‘‘(I) the nature of the subject new product; ‘‘(A) DEFINITION.—The term ‘derivative in- knowledge and experience in financial mat- ‘‘(II) the history, purpose, extent, and ap- strument’ means any individually negotiated ters.’’. propriateness of the regulation of the new contract, agreement, warrant, note, or op- SEC. 208. GOVERNMENT SECURITIES DEFINED. product under the Federal securities laws; tion that is based, in whole or in part, on the Section 3(a)(42) of the Securities Exchange and value of, any interest in, or any quantitative Act of 1934 (15 U.S.C. 78c(a)(42)) is amended— ‘‘(III) the history, purpose, extent, and ap- measure or the occurrence of any event re- (1) by striking ‘‘or’’ at the end of subpara- propriateness of the regulation of the new lating to, one or more commodities, securi- graph (C); product under the Federal banking laws. ties, currencies, interest or other rates, indi- (2) by striking the period at the end of sub- ‘‘(E) JUDICIAL STAY.—The filing of a peti- ces, or other assets, but does not include a paragraph (D) and inserting ‘‘; or’’; and tion by the Board or an aggrieved party pur- traditional banking product, as defined in (3) by adding at the end the following new suant to subparagraph (A) shall operate as a section 206(a) of the Financial Services Act subparagraph: judicial stay, until the date on which the of 1999. ‘‘(E) for purposes of section 15C as applied court makes a final determination under this ‘‘(B) CLASSIFICATION LIMITED.— Classifica- to a bank, a qualified Canadian government paragraph, of— tion of a particular contract as a derivative obligation as defined in section 5136 of the ‘‘(i) any Commission requirement that a instrument pursuant to this paragraph shall Revised Statutes.’’. bank register as a broker or dealer under not be construed as finding or implying that SEC. 209. EFFECTIVE DATE. this section, because the bank engages in such instrument is or is not a security for This subtitle shall take effect at the end of any transaction in, or buys or sells, the new any purpose under the securities laws, or is the 270-day period beginning on the date of product that is the subject of the petition; or is not an account, agreement, contract, or enactment of this Act. and transaction for any purpose under the Com- SEC. 210. RULE OF CONSTRUCTION. ‘‘(ii) any Commission action against a modity Exchange Act. Nothing in this Act shall supersede, affect, bank for a failure to comply with a require- ‘‘(55) QUALIFIED INVESTOR.— or otherwise limit the scope and applica- ment described in clause (i). ‘‘(A) DEFINITION.—For purposes of this bility of the Commodity Exchange Act (7 ‘‘(3) DEFINITIONS.—For purposes of this title, the term ‘qualified investor’ means— U.S.C. 1 et seq.). subsection— ‘‘(i) any investment company registered ‘‘(A) the term ‘Board’ means the Board of with the Commission under section 8 of the Subtitle B—Bank Investment Company Governors of the Federal Reserve System; Investment Company Act of 1940; Activities and ‘‘(ii) any issuer eligible for an exclusion SEC. 211. CUSTODY OF INVESTMENT COMPANY ‘‘(B) the term ‘new product’ means a prod- from the definition of investment company ASSETS BY AFFILIATED BANK. uct or instrument offered or provided by a pursuant to section 3(c)(7) of the Investment (a) MANAGEMENT COMPANIES.—Section 17(f) bank that— Company Act of 1940; of the Investment Company Act of 1940 (15 ‘‘(i) was not subject to regulation by the ‘‘(iii) any bank (as defined in paragraph (6) U.S.C. 80a–17(f)) is amended— Commission as a security under this title be- of this subsection), savings association (as (1) by redesignating paragraphs (1), (2), and fore the date of enactment of this sub- defined in section 3(b) of the Federal Deposit (3) as subparagraphs (A), (B), and (C), respec- section; and Insurance Act), broker, dealer, insurance tively; ‘‘(ii) is not a traditional banking product, company (as defined in section 2(a)(13) of the (2) by striking ‘‘(f) Every registered’’ and as defined in paragraphs (1) through (6) of Securities Act of 1933), or business develop- inserting the following: May 4, 1999 CONGRESSIONAL RECORD — SENATE S4705

‘‘(f) CUSTODY OF SECURITIES.— (2) by redesignating clause (vi) as clause ‘‘(1) IN GENERAL.—It shall be unlawful for ‘‘(1) Every registered’’; (vii); and any person, issuing or selling any security of (3) by redesignating the second, third, (3) by inserting after clause (v) the fol- which a registered investment company is fourth, and fifth sentences of such subsection lowing new clause: the issuer, to represent or imply in any man- as paragraphs (2) through (5), respectively, ‘‘(vi) any person or any affiliated person of ner whatsoever that such security or and indenting the left margin of such para- a person (other than a registered investment company— graphs appropriately; and company) that, at any time during the 6- ‘‘(A) has been guaranteed, sponsored, rec- (4) by adding at the end the following new month period preceding the date of the de- ommended, or approved by the United paragraph: termination of whether that person or affili- States, or any agency, instrumentality or of- ‘‘(6) SERVICES AS TRUSTEE OR CUSTODIAN.— ated person is an interested person, has ficer of the United States; The Commission may adopt rules and regula- loaned money or other property to— ‘‘(B) has been insured by the Federal De- tions, and issue orders, consistent with the ‘‘(I) the investment company; posit Insurance Corporation; or protection of investors, prescribing the con- ‘‘(II) any other investment company hav- ‘‘(C) is guaranteed by or is otherwise an ob- ditions under which a bank, or an affiliated ing the same investment adviser as such in- ligation of any bank or insured depository person of a bank, either of which is an affili- vestment company or holding itself out to institution. ated person, promoter, organizer, or sponsor investors as a related company for purposes ‘‘(2) DISCLOSURES.—Any person issuing or of, or principal underwriter for, a registered of investment or investor services; or selling the securities of a registered invest- management company may serve as custo- ‘‘(III) any account for which the investment company that is advised by, or sold dian of that registered management comment company’s investment adviser has bor- through, a bank shall prominently disclose pany.’’. rowing authority,’’. that an investment in the company is not in- (b) UNIT INVESTMENT TRUSTS.—Section 26 (b) CONFORMING AMENDMENT.—Section sured by the Federal Deposit Insurance Cor- of the Investment Company Act of 1940 (15 2(a)(19)(B) of the Investment Company Act of poration or any other government agency. U.S.C. 80a–26) is amended— 1940 (15 U.S.C. 80a–2(a)(19)(B)) is amended— The Commission may adopt rules and regula- (1) by redesignating subsections (b) (1) by striking clause (v) and inserting the tions, and issue orders, consistent with the through (e) as subsections (c) through (f), re- following new clause: protection of investors, prescribing the man- spectively; and ‘‘(v) any person or any affiliated person of ner in which the disclosure under this para- (2) by inserting after subsection (a) the fol- a person (other than a registered investment graph shall be provided. lowing new subsection: company) that, at any time during the 6- ‘‘(3) DEFINITIONS.—The terms ‘insured de- ‘‘(b) The Commission may adopt rules and month period preceding the date of the depository institution’ and ‘appropriate Fed- regulations, and issue orders, consistent termination of whether that person or affili- eral banking agency’ have the same mean- with the protection of investors, prescribing ated person is an interested person, has exe- ings as in section 3 of the Federal Deposit In- the conditions under which a bank, or an af- cuted any portfolio transactions for, engaged surance Act.’’. filiated person of a bank, either of which is in any principal transactions with, or dis- SEC. 215. DEFINITION OF BROKER UNDER THE an affiliated person of a principal under- tributed shares for— INVESTMENT COMPANY ACT OF 1940. writer for, or depositor of, a registered unit ‘‘(I) any investment company for which the Section 2(a)(6) of the Investment Company investment trust, may serve as trustee or investment adviser or principal underwriter Act of 1940 (15 U.S.C. 80a–2(a)(6)) is amended custodian under subsection (a)(1).’’. serves as such; to read as follows: (c) FIDUCIARY DUTY OF CUSTODIAN.—Sec- ‘‘(6) The term ‘broker’ has the same mean- tion 36(a) of the Investment Company Act of ‘‘(II) any investment company holding ing as in section 3 of the Securities Exchange 1940 (15 U.S.C. 80a–35(a)) is amended— itself out to investors, for purposes of invest- Act of 1934, except that such term does not (1) in paragraph (1), by striking ‘‘or’’ at the ment or investor services, as a company re- include any person solely by reason of the end; lated to any investment company for which fact that such person is an underwriter for (2) in paragraph (2), by striking the period the investment adviser or principal under- one or more investment companies.’’. at the end and inserting ‘‘; or’’; and writer serves as such; or (3) by inserting after paragraph (2) the fol- ‘‘(III) any account over which the invest- SEC. 216. DEFINITION OF DEALER UNDER THE IN- VESTMENT COMPANY ACT OF 1940. lowing: ment adviser has brokerage placement dis- Section 2(a)(11) of the Investment Com- ‘‘(3) as custodian.’’. cretion,’’; (2) by redesignating clause (vi) as clause pany Act of 1940 (15 U.S.C. 80a–2(a)(11)) is SEC. 212. LENDING TO AN AFFILIATED INVEST- amended to read as follows: MENT COMPANY. (vii); and ‘‘(11) The term ‘dealer’ has the same mean- Section 17(a) of the Investment Company (3) by inserting after clause (v) the fol- ing as in section 3 of the Securities Exchange Act of 1940 (15 U.S.C. 80a–17(a)) is amended— lowing new clause: Act of 1934, but does not include an insurance (1) by striking ‘‘or’’ at the end of paragraph ‘‘(vi) any person or any affiliated person of company or investment company.’’. (2); a person (other than a registered investment (2) by striking the period at the end of company) that, at any time during the 6- SEC. 217. REMOVAL OF THE EXCLUSION FROM THE DEFINITION OF INVESTMENT paragraph (3) and inserting ‘‘; or’’; and month period preceding the date of the determination of whether that person or affili- ADVISER FOR BANKS THAT ADVISE (3) by adding at the end the following new INVESTMENT COMPANIES. ated person is an interested person, has paragraph: (a) INVESTMENT ADVISER.—Section ‘‘(4) to loan money or other property to loaned money or other property to— 202(a)(11) of the Investment Advisers Act of such registered company, or to any company ‘‘(I) any investment company for which the 1940 (15 U.S.C. 80b–2(a)(11)) is amended in sub- controlled by such registered company, in investment adviser or principal underwriter paragraph (A), by striking ‘‘investment com- contravention of such rules, regulations, or serves as such; pany’’ and inserting ‘‘investment company, orders as the Commission may prescribe or ‘‘(II) any investment company holding except that the term ‘investment adviser’ in- issue consistent with the protection of inves- itself out to investors, for purposes of invest- cludes any bank or bank holding company to tors.’’. ment or investor services, as a company re- the extent that such bank or bank holding SEC. 213. INDEPENDENT DIRECTORS. lated to any investment company for which company serves or acts as an investment ad- (a) IN GENERAL.—Section 2(a)(19)(A) of the the investment adviser or principal under- viser to a registered investment company, Investment Company Act of 1940 (15 U.S.C. writer serves as such; or but if, in the case of a bank, such services or 80a–2(a)(19)(A)) is amended— ‘‘(III) any account for which the invest- actions are performed through a separately (1) by striking clause (v) and inserting the ment adviser has borrowing authority,’’. identifiable department or division, the de- following new clause: (c) AFFILIATION OF DIRECTORS.—Section partment or division, and not the bank ‘‘(v) any person or any affiliated person of 10(c) of the Investment Company Act of 1940 itself, shall be deemed to be the investment a person (other than a registered investment (15 U.S.C. 80a–10(c)) is amended by striking adviser’’. company) that, at any time during the 6- ‘‘bank, except’’ and inserting ‘‘bank (to- (b) SEPARATELY IDENTIFIABLE DEPARTMENT month period preceding the date of the de- gether with its affiliates and subsidiaries) or OR DIVISION.—Section 202(a) of the Invest- termination of whether that person or affili- any one bank holding company (together ment Advisers Act of 1940 (15 U.S.C. 80b–2(a)) ated person is an interested person, has exe- with its affiliates and subsidiaries) (as such is amended by adding at the end the fol- cuted any portfolio transactions for, engaged terms are defined in section 2 of the Bank lowing: in any principal transactions with, or dis- Holding Company Act of 1956), except’’. ‘‘(26) The term ‘separately identifiable de- tributed shares for— (d) EFFECTIVE DATE.—The amendments partment or division’ of a bank means a ‘‘(I) the investment company; made by this section shall take effect at the unit— ‘‘(II) any other investment company hav- end of the 1-year period beginning on the ‘‘(A) that is under the direct supervision of ing the same investment adviser as such in- date of enactment of this subtitle. an officer or officers designated by the board vestment company or holding itself out to SEC. 214. ADDITIONAL SEC DISCLOSURE AU- of directors of the bank as responsible for investors as a related company for purposes THORITY. the day-to-day conduct of the bank’s invest- of investment or investor services; or Section 35(a) of the Investment Company ment adviser activities for one or more in- ‘‘(III) any account over which the invest- Act of 1940 (15 U.S.C. 80a–34(a)) is amended to vestment companies, including the super- ment company’s investment adviser has bro- read as follows: vision of all bank employees engaged in the kerage placement discretion,’’; ‘‘(a) MISREPRESENTATION OF GUARANTEES.— performance of such activities; and S4706 CONGRESSIONAL RECORD — SENATE May 4, 1999

‘‘(B) for which all of the records relating to (b) SECURITIES EXCHANGE ACT OF 1934.— ‘‘(3) SAFE HARBOR.—No investment adviser its investment adviser activities are sepa- Section 3(a)(12)(A)(iii) of the Securities Ex- to a registered investment company or any rately maintained in or extractable from change Act of 1934 (15 U.S.C. affiliated person of such investment adviser such unit’s own facilities or the facilities of 78c(a)(12)(A)(iii)) is amended to read as fol- shall be deemed to have acted unlawfully or the bank, and such records are so maintained lows: to have breached a fiduciary duty under or otherwise accessible as to permit inde- ‘‘(iii) any interest or participation in any State or Federal law solely by reason of act- pendent examination and enforcement by the common trust fund or similar fund that is ing in accordance with clause (i), (ii), or (iii) Commission of this Act or the Investment excluded from the definition of the term ‘in- of paragraph (1)(B). Company Act of 1940 and rules and regula- vestment company’ under section 3(c)(3) of ‘‘(4) CHURCH PLAN EXEMPTION.—Paragraph tions promulgated under this Act or the In- the Investment Company Act of 1940;’’. (1) does not apply to any investment adviser vestment Company Act of 1940.’’. (c) INVESTMENT COMPANY ACT OF 1940.—Sec- to a registered investment company, or an SEC. 218. DEFINITION OF BROKER UNDER THE tion 3(c)(3) of the Investment Company Act affiliated person of that investment adviser, INVESTMENT ADVISERS ACT OF 1940. of 1940 (15 U.S.C. 80a–3(c)(3)) is amended by holding shares in such a capacity, if such in- Section 202(a)(3) of the Investment Advis- inserting before the period the following: ‘‘, vestment adviser or such affiliated person is ers Act of 1940 (15 U.S.C. 80b–2(a)(3)) is if— an organization described in section amended to read as follows: ‘‘(A) such fund is employed by the bank 414(e)(3)(A) of the Internal Revenue Code of ‘‘(3) The term ‘broker’ has the same mean- solely as an aid to the administration of 1986.’’. trusts, estates, or other accounts created and ing as in section 3 of the Securities Exchange SEC. 223. CONFORMING CHANGE IN DEFINITION. Act of 1934.’’. maintained for a fiduciary purpose; ‘‘(B) except in connection with the ordi- Section 2(a)(5) of the Investment Company SEC. 219. DEFINITION OF DEALER UNDER THE IN- nary advertising of the bank’s fiduciary serv- Act of 1940 (15 U.S.C. 80a–2(a)(5)) is amended VESTMENT ADVISERS ACT OF 1940. by striking ‘‘(A) a banking institution orga- Section 202(a)(7) of the Investment Advis- ices, interests in such fund are not— ‘‘(i) advertised; or nized under the laws of the United States’’ ers Act of 1940 (15 U.S.C. 80b–2(a)(7)) is and inserting ‘‘(A) a depository institution amended to read as follows: ‘‘(ii) offered for sale to the general public; and (as defined in section 3 of the Federal De- ‘‘(7) The term ‘dealer’ has the same mean- posit Insurance Act) or a branch or agency of ing as in section 3 of the Securities Exchange ‘‘(C) fees and expenses charged by such fund are not in contravention of fiduciary a foreign bank (as such terms are defined in Act of 1934, but does not include an insurance section 1(b) of the International Banking Act company or investment company.’’. principles established under applicable Fed- eral or State law’’. of 1978)’’. SEC. 220. INTERAGENCY CONSULTATION. The Investment Advisers Act of 1940 (15 SEC. 222. INVESTMENT ADVISERS PROHIBITED SEC. 224. CONFORMING AMENDMENT. FROM HAVING CONTROLLING IN- U.S.C. 80b–1 et seq.) is amended by inserting Section 202 of the Investment Advisers Act TEREST IN REGISTERED INVEST- of 1940 (15 U.S.C. 80b–2) is amended by adding after section 210 the following new section: MENT COMPANY. at the end the following new subsection: ‘‘SEC. 210A. CONSULTATION. Section 15 of the Investment Company Act ‘‘(c) CONSIDERATION OF PROMOTION OF EFFI- ‘‘(a) EXAMINATION RESULTS AND OTHER IN- of 1940 (15 U.S.C. 80a–15) is amended by add- CIENCY, COMPETITION, AND CAPITAL FORMA- FORMATION.— ing at the end the following new subsection: ‘‘(1) The appropriate Federal banking agen- ‘‘(g) CONTROLLING INTEREST IN INVESTMENT TION.—Whenever pursuant to this title the cy shall provide the Commission upon re- COMPANY PROHIBITED.— Commission is engaged in rulemaking and is quest the results of any examination, re- ‘‘(1) IN GENERAL.—If an investment adviser required to consider or determine whether an ports, records, or other information to which to a registered investment company, or an action is necessary or appropriate in the such agency may have access with respect to affiliated person of that investment adviser, public interest, the Commission shall also the investment advisory activities— holds a controlling interest in that reg- consider, in addition to the protection of in- ‘‘(A) of any— istered investment company in a trustee or vestors, whether the action will promote ef- ‘‘(i) bank holding company; fiduciary capacity, such person shall— ficiency, competition, and capital forma- ‘‘(ii) bank; or ‘‘(A) if it holds the shares in a trustee or fi- tion.’’. ‘‘(iii) separately identifiable department or duciary capacity with respect to any em- SEC. 225. EFFECTIVE DATE. division of a bank, that is registered under ployee benefit plan subject to the Employee This subtitle shall take effect 90 days after section 203 of this title; and Retirement Income Security Act of 1974, the date of enactment of this Act. ‘‘(B) in the case of a bank holding company transfer the power to vote the shares of the Subtitle C—Securities and Exchange Com- or bank that has a subsidiary or a separately investment company through to another permission Supervision of Investment Bank identifiable department or division reg- son acting in a fiduciary capacity with re- Holding Companies istered under that section, of such bank or spect to the plan who is not an affiliated per- bank holding company. son of that investment adviser or any affili- SEC. 231. SUPERVISION OF INVESTMENT BANK ‘‘(2) The Commission shall provide to the ated person thereof; or HOLDING COMPANIES BY THE SECU- appropriate Federal banking agency upon re- ‘‘(B) if it holds the shares in a trustee or fi- RITIES AND EXCHANGE COMMIS- SION. quest the results of any examination, re- duciary capacity with respect to any person ports, records, or other information with re- or entity other than an employee benefit (a) AMENDMENT.—Section 17 of the Securi- spect to the investment advisory activities plan subject to the Employee Retirement In- ties Exchange Act of 1934 (15 U.S.C. 78q) is of any bank holding company, bank, or sepa- come Security Act of 1974— amended— rately identifiable department or division of ‘‘(i) transfer the power to vote the shares (1) by redesignating subsection (i) as sub- a bank, any of which is registered under sec- of the investment company through to— section (l); and tion 203 of this title. ‘‘(I) the beneficial owners of the shares; (2) by inserting after subsection (h) the fol- ‘‘(b) EFFECT ON OTHER AUTHORITY.—Noth- ‘‘(II) another person acting in a fiduciary lowing new subsections: ing in this section shall limit in any respect capacity who is not an affiliated person of ‘‘(i) INVESTMENT BANK HOLDING COMPA- the authority of the appropriate Federal that investment adviser or any affiliated NIES.— banking agency with respect to such bank person thereof; or ‘‘(1) ELECTIVE SUPERVISION OF AN INVEST- holding company, bank, or department or di- ‘‘(III) any person authorized to receive MENT BANK HOLDING COMPANY NOT HAVING A vision under any provision of law. statements and information with respect to BANK OR SAVINGS ASSOCIATION AFFILIATE.— ‘‘(c) DEFINITION.—For purposes of this sec- the trust who is not an affiliated person of ‘‘(A) IN GENERAL.—An investment bank tion, the term ‘appropriate Federal banking that investment adviser or any affiliated holding company that is not— agency’ has the same meaning as in section person thereof; ‘‘(i) an affiliate of a wholesale financial in- 3 of the Federal Deposit Insurance Act.’’. ‘‘(ii) vote the shares of the investment stitution, an insured bank (other than an in- SEC. 221. TREATMENT OF BANK COMMON TRUST company held by it in the same proportion stitution described in subparagraph (D), (F), FUNDS. as shares held by all other shareholders of or (G) of section 2(c)(2), or held under section (a) SECURITIES ACT OF 1933.—Section 3(a)(2) the investment company; or 4(f), of the Bank Holding Company Act of of the Securities Act of 1933 (15 U.S.C. ‘‘(iii) vote the shares of the investment 1956), or a savings association; 77c(a)(2)) is amended by striking ‘‘or any in- company as otherwise permitted under such ‘‘(ii) a foreign bank, foreign company, or terest or participation in any common trust rules, regulations, or orders as the Commis- company that is described in section 8(a) of fund or similar fund maintained by a bank sion may prescribe or issue consistent with the International Banking Act of 1978; or exclusively for the collective investment and the protection of investors. ‘‘(iii) a foreign bank that controls, directly reinvestment of assets contributed thereto ‘‘(2) EXEMPTION.—Paragraph (1) shall not or indirectly, a corporation chartered under by such bank in its capacity as trustee, ex- apply to any investment adviser to a reg- section 25A of the Federal Reserve Act, ecutor, administrator, or guardian’’ and in- istered investment company, or any affili- may elect to become supervised by filing serting ‘‘or any interest or participation in ated person of that investment adviser, that with the Commission a notice of intention to any common trust fund or similar fund that holds shares of the investment company in a become supervised, pursuant to subpara- is excluded from the definition of the term trustee or fiduciary capacity if that reg- graph (B) of this paragraph. Any investment ‘investment company’ under section 3(c)(3) istered investment company consists solely bank holding company filing such a notice of the Investment Company Act of 1940’’. of assets held in such capacities. shall be supervised in accordance with this May 4, 1999 CONGRESSIONAL RECORD — SENATE S4707 section and comply with the rules promul- ‘‘(II) an assessment of the consolidated with the purposes of this subsection, the gated by the Commission applicable to su- capital of the supervised investment bank Commission may adopt capital adequacy pervised investment bank holding compa- holding company; rules for supervised investment bank holding nies. ‘‘(III) an independent auditor’s report at- companies. ‘‘(B) NOTIFICATION OF STATUS AS A SUPER- testing to the supervised investment bank ‘‘(B) METHOD OF CALCULATION.—In devel- VISED INVESTMENT BANK HOLDING COMPANY.— holding company’s compliance with its in- oping rules under this paragraph: An investment bank holding company that ternal risk management and internal control ‘‘(i) DOUBLE LEVERAGE.—The Commission elects under subparagraph (A) to become su- objectives; and shall consider the use by the supervised in- pervised by the Commission shall file with ‘‘(IV) reports concerning the extent to vestment bank holding company of debt and the Commission a written notice of intention which the company or affiliate has complied other liabilities to fund capital investments to become supervised by the Commission in with the provisions of this title and any reg- in affiliates. such form and containing such information ulations prescribed and orders issued under ‘‘(ii) NO UNWEIGHTED CAPITAL RATIO.—The and documents concerning such investment this title. Commission shall not impose under this sec- bank holding company as the Commission, ‘‘(B) USE OF EXISTING REPORTS.— tion a capital ratio that is not based on ap- by rule, may prescribe as necessary or appro- ‘‘(i) IN GENERAL.—The Commission shall, to propriate risk-weighting considerations. priate in furtherance of the purposes of this the fullest extent possible, accept reports in ‘‘(iii) NO CAPITAL REQUIREMENT ON REGU- section. Unless the Commission finds that fulfillment of the requirements under this LATED ENTITIES.—The Commission shall not, such supervision is not necessary or appro- paragraph that the supervised investment by rule, regulation, guideline, order or other- bank holding company or its affiliates have priate in furtherance of the purposes of this wise, impose any capital adequacy provision been required to provide to another appro- section, such supervision shall become effec- on a nonbanking affiliate (other than a priate regulatory agency or self-regulatory tive 45 days after the date of receipt of such broker or dealer) that is in compliance with organization. written notice by the Commission, or within applicable capital requirements of another ‘‘(ii) AVAILABILITY.—A supervised invest- such shorter time period as the Commission, Federal regulatory authority or State insur- ment bank holding company or an affiliate by rule or order, may determine. ance authority. of such company shall provide to the Com- ‘‘(2) ELECTION NOT TO BE SUPERVISED BY THE ‘‘(iv) APPROPRIATE EXCLUSIONS.—The Com- mission, at the request of the Commission, mission shall take full account of the appli- COMMISSION AS AN INVESTMENT BANK HOLDING any report referred to in clause (i). COMPANY.— cable capital requirements of another Fed- ‘‘(C) EXAMINATION AUTHORITY.— ‘‘(A) VOLUNTARY WITHDRAWAL.—A super- eral regulatory authority or State insurance ‘‘(i) FOCUS OF EXAMINATION AUTHORITY.— vised investment bank holding company that regulator. The Commission may make examinations of ‘‘(C) INTERNAL RISK MANAGEMENT MODELS.— is supervised pursuant to paragraph (1) may, any supervised investment bank holding upon such terms and conditions as the Com- The Commission may incorporate internal company and any affiliate of such company risk management models into its capital mission deems necessary or appropriate, in order to— elect not to be supervised by the Commission adequacy rules for supervised investment ‘‘(I) inform the Commission regarding— bank holding companies. by filing a written notice of withdrawal from ‘‘(aa) the nature of the operations and fi- ‘‘(5) FUNCTIONAL REGULATION OF BANKING Commission supervision. Such notice shall nancial condition of the supervised invest- AND INSURANCE ACTIVITIES OF SUPERVISED IN- not become effective until one year after re- ment bank holding company and its affili- VESTMENT BANK HOLDING COMPANIES.—The ceipt by the Commission, or such shorter or ates; Commission shall defer to— longer period as the Commission deems nec- ‘‘(bb) the financial and operational risks ‘‘(A) the appropriate regulatory agency essary or appropriate to ensure effective su- within the supervised investment bank hold- with regard to all interpretations of, and the pervision of the material risks to the super- ing company that may affect any broker or enforcement of, applicable banking laws revised investment bank holding company and dealer controlled by such supervised invest- lating to the activities, conduct, ownership, to the affiliated broker or dealer, or to pre- ment bank holding company; and and operations of banks, and institutions de- vent evasion of the purposes of this section. ‘‘(cc) the systems of the supervised invest- scribed in subparagraph (D), (F), and (G) of ‘‘(B) DISCONTINUATION OF COMMISSION SU- ment bank holding company and its affili- section 2(c)(2), or held under section 4(f), of PERVISION.—If the Commission finds that any ates for monitoring and controlling those supervised investment bank holding com- risks; and the Bank Holding Company Act of 1956; and pany that is supervised pursuant to para- ‘‘(II) monitor compliance with the provi- ‘‘(B) the appropriate State insurance regu- graph (1) is no longer in existence or has sions of this subsection, provisions governing lators with regard to all interpretations of, ceased to be an investment bank holding transactions and relationships between any and the enforcement of, applicable State in- company, or if the Commission finds that broker or dealer affiliated with the super- surance laws relating to the activities, con- continued supervision of such a supervised vised investment bank holding company and duct, and operations of insurance companies investment bank holding company is not any of the company’s other affiliates, and and insurance agents. consistent with the purposes of this section, applicable provisions of subchapter II of ‘‘(6) DEFINITIONS.—For purposes of this sub- the Commission may discontinue the super- chapter 53, title 31, United States Code (com- section and subsection (j)— vision pursuant to a rule or order, if any, monly referred to as the ‘Bank Secrecy Act’) ‘‘(A) the term ‘investment bank holding promulgated by the Commission under this and regulations thereunder. company’ means— section. ‘‘(ii) RESTRICTED FOCUS OF EXAMINATIONS.— ‘‘(i) any person other than a natural person ‘‘(3) SUPERVISION OF INVESTMENT BANK The Commission shall limit the focus and that owns or controls one or more brokers or HOLDING COMPANIES.— scope of any examination of a supervised in- dealers; and ‘‘(A) RECORDKEEPING AND REPORTING.— vestment bank holding company to— ‘‘(ii) the associated persons of the invest- ‘‘(i) IN GENERAL.—Every supervised invest- ‘‘(I) the company; and ment bank holding company; ment bank holding company and each affil- ‘‘(II) any affiliate of the company that, be- ‘‘(B) the term ‘supervised investment bank iate thereof shall make and keep for pre- cause of its size, condition, or activities, the holding company’ means any investment scribed periods such records, furnish copies nature or size of the transactions between bank holding company that is supervised by thereof, and make such reports, as the Com- such affiliate and any affiliated broker or the Commission pursuant to this subsection; mission may require by rule, in order to keep dealer, or the centralization of functions ‘‘(C) the terms ‘affiliate’, ‘bank’, ‘bank the Commission informed as to— within the holding company system, could, holding company’, ‘company’, ‘control’, and ‘‘(I) the company’s or affiliate’s activities, in the discretion of the Commission, have a ‘savings association’ have the same mean- financial condition, policies, systems for materially adverse effect on the operational ings as in section 2 of the Bank Holding monitoring and controlling financial and or financial condition of the broker or deal- Company Act of 1956; operational risks, and transactions and rela- er. ‘‘(D) the term ‘insured bank’ has the same tionships between any broker or dealer affil- ‘‘(iii) DEFERENCE TO OTHER EXAMINATIONS.— meaning as in section 3 of the Federal De- iate of the supervised investment bank hold- For purposes of this subparagraph, the Com- posit Insurance Act; ing company; and mission shall, to the fullest extent possible, ‘‘(E) the term ‘foreign bank’ has the same ‘‘(II) the extent to which the company or use the reports of examination of an institu- meaning as in section 1(b)(7) of the Inter- affiliate has complied with the provisions of tion described in subparagraph (D), (F), or national Banking Act of 1978; and this Act and regulations prescribed and or- (G) of section 2(c)(2), or held under section ‘‘(F) the terms ‘person associated with an ders issued under this Act. 4(f), of the Bank Holding Company Act of investment bank holding company’ and ‘as- ‘‘(ii) FORM AND CONTENTS.—Such records 1956 made by the appropriate regulatory sociated person of an investment bank hold- and reports shall be prepared in such form agency, or of a licensed insurance company ing company’ mean any person directly or and according to such specifications (includ- made by the appropriate State insurance indirectly controlling, controlled by, or ing certification by an independent public regulator. under common control with, an investment accountant), as the Commission may require ‘‘(4) HOLDING COMPANY CAPITAL.— bank holding company. and shall be provided promptly at any time ‘‘(A) AUTHORITY.—If the Commission finds ‘‘(j) COMMISSION BACKUP AUTHORITY.— upon request by the Commission. Such that it is necessary to adequately supervise ‘‘(1) AUTHORITY.—The Commission may records and reports may include— investment bank holding companies and make inspections of any wholesale financial ‘‘(I) a balance sheet and income statement; their broker or dealer affiliates consistent holding company that— S4708 CONGRESSIONAL RECORD — SENATE May 4, 1999

‘‘(A) controls a wholesale financial institu- 4(f), of the Bank Holding Company Act of (b) AUTHORIZED PRODUCTS.—For the pur- tion; 1956— poses of this section, a product is authorized ‘‘(B) is not a foreign bank; and ‘‘(i) the Comptroller of the Currency, in if— ‘‘(C) does not control an insured bank the case of a national bank or a bank in the (1) as of January 1, 1997, the Comptroller of (other than an institution permitted under District of Columbia examined by the Comp- the Currency had determined in writing that subparagraph (D), (F), or (G) of section troller of the Currency; national banks may provide such product as 2(c)(2), or held under section 4(f), of the Bank ‘‘(ii) the Board of Governors of the Federal principal, or national banks were in fact law- Holding Company Act of 1956) or a savings Reserve System, in the case of a State mem- fully providing such product as principal; association, ber bank of the Federal Reserve System or (2) no court of relevant jurisdiction had, by and any affiliate of such company, for the any corporation chartered under section 25A final judgment, overturned a determination purpose of monitoring and enforcing compli- of the Federal Reserve Act; of the Comptroller of the Currency that na- ance by the wholesale financial holding com- ‘‘(iii) the Federal Deposit Insurance Cor- tional banks may provide such product as pany with the Federal securities laws. poration, in the case of any other bank the principal; and ‘‘(2) LIMITATION.—The Commission shall deposits of which are insured in accordance (3) the product is not title insurance, or an limit the focus and scope of any inspection with the Federal Deposit Insurance Act; or annuity contract the income of which is sub- under paragraph (1) to those transactions, ‘‘(iv) the Commission in the case of all ject to tax treatment under section 72 of the policies, procedures, or records that are rea- other such institutions.’’. Internal Revenue Code of 1986. sonably necessary to monitor and enforce (2) Section 1112(e) of the Right to Financial (c) DEFINITION.—For purposes of this sec- compliance by the wholesale financial hold- Privacy Act of 1978 (12 U.S.C. 3412(e)) is tion, the term ‘‘insurance’’ means— ing company or any affiliate with the Fed- amended— (1) any product regulated as insurance as eral securities laws. (A) by striking ‘‘this title’’ and inserting of January 1, 1997, in accordance with the ‘‘(3) DEFERENCE TO EXAMINATIONS.—To the ‘‘law’’; and relevant State insurance law, in the State in fullest extent possible, the Commission shall (B) by inserting ‘‘, examination reports’’ which the product is provided; use, for the purposes of this subsection, the after ‘‘financial records’’. (2) any product first offered after January 1, 1997, which— reports of examinations— Subtitle D—Studies ‘‘(A) made by the Board of Governors of (A) a State insurance regulator determines SEC. 241. STUDY OF METHODS TO INFORM INVES- the Federal Reserve System of any wholesale shall be regulated as insurance in the State TORS AND CONSUMERS OF UNIN- in which the product is provided because the financial holding company that is supervised SURED PRODUCTS. product insures, guarantees, or indemnifies by the Board; Not later than 1 year after the date of en- against liability, loss of life, loss of health, ‘‘(B) made by or on behalf of any State reg- actment of this Act, the Comptroller General or loss through damage to or destruction of ulatory agency responsible for the super- of the United States shall submit a report to property, including, but not limited to, sur- vision of an insurance company of any li- the Congress regarding the efficacy, costs, ety bonds, life insurance, health insurance, censed insurance company; and and benefits of requiring that any depository title insurance, and property and casualty ‘‘(C) made by any Federal or State banking institution that accepts federally insured de- insurance (such as private passenger or com- agency of any bank or institution described posits and that, directly or through a con- mercial automobile, homeowners, mortgage, in subparagraph (D), (F), or (G) of section tractual or other arrangement with a broker, commercial multiperil, general liability, 2(c)(2), or held under section 4(f), of the Bank dealer, or agent, buys from, sells to, or ef- professional liability, workers’ compensa- Holding Company Act of 1956. fects transactions for retail investors in se- tion, fire and allied lines, farm owners ‘‘(4) NOTICE.—To the fullest extent pos- curities or consumers of insurance to inform multiperil, aircraft, fidelity, surety, medical sible, the Commission shall notify the appro- such investors and consumers through the malpractice, ocean marine, inland marine, priate regulatory agency prior to conducting use of a logo or seal that the security or in- and boiler and machinery insurance); and an inspection of a wholesale financial insti- surance is not insured by the Federal De- (B) is not a product or service of a bank tution or institution described in subpara- posit Insurance Corporation. graph (D), (F), or (G) of section 2(c)(2), or that is— SEC. 242. STUDY OF LIMITATION ON FEES ASSO- (i) a deposit product; held under section 4(f), of the Bank Holding CIATED WITH ACQUIRING FINAN- Company Act of 1956. CIAL PRODUCTS. (ii) a loan, discount, letter of credit, or ‘‘(k) AUTHORITY TO LIMIT DISCLOSURE OF Not later than 1 year after the date of en- other extension of credit; INFORMATION.—Notwithstanding any other actment of this Act, the Comptroller General (iii) a trust or other fiduciary service; provision of law, the Commission shall not of the United States shall submit a report to (iv) a qualified financial contract (as de- be compelled to disclose any information re- the Congress regarding the efficacy and ben- fined in or determined pursuant to section quired to be reported under subsection (h) or efits of uniformly limiting any commissions, 11(e)(8)(D)(i) of the Federal Deposit Insur- (i) or any information supplied to the Com- fees, markups, or other costs incurred by ance Act); or mission by any domestic or foreign regu- customers in the acquisition of financial (v) a financial guaranty, except that this latory agency that relates to the financial or products. subparagraph (B) shall not apply to a product that includes an insurance component operational condition of any associated per- TITLE III—INSURANCE son of a broker or dealer, investment bank such that if the product is offered or pro- holding company, or any affiliate of an in- Subtitle A—State Regulation of Insurance posed to be offered by the bank as principal— vestment bank holding company. Nothing in SEC. 301. STATE REGULATION OF THE BUSINESS (I) it would be treated as a life insurance this subsection shall authorize the Commis- OF INSURANCE. contract under section 7702 of the Internal sion to withhold information from Congress, The Act entitled ‘‘An Act to express the in- Revenue Code of 1986; or or prevent the Commission from complying tent of the Congress with reference to the (II) in the event that the product is not a with a request for information from any regulation of the business of insurance’’ and letter of credit or other similar extension of other Federal department or agency or any approved March 9, 1945 (15 U.S.C. 1011 et credit, a qualified financial contract, or a fi- self-regulatory organization requesting the seq.), commonly referred to as the nancial guaranty, it would qualify for treat- information for purposes within the scope of ‘‘McCarran-Ferguson Act’’) remains the law ment for losses incurred with respect to such its jurisdiction, or complying with an order of the United States. product under section 832(b)(5) of the Inter- of a court of the United States in an action SEC. 302. MANDATORY INSURANCE LICENSING nal Revenue Code of 1986, if the bank were brought by the United States or the Commis- REQUIREMENTS. subject to tax as an insurance company sion. For purposes of section 552 of title 5, No person or entity shall provide insurance under section 831 of that Code; or United States Code, this subsection shall be in a State as principal or agent unless such (3) any annuity contract, the income on considered a statute described in subsection person or entity is licensed as required by which is subject to tax treatment under sec- (b)(3)(B) of such section 552. In prescribing the appropriate insurance regulator of such tion 72 of the Internal Revenue Code of 1986. regulations to carry out the requirements of State in accordance with the relevant State SEC. 305. TITLE INSURANCE ACTIVITIES OF NA- this subsection, the Commission shall des- insurance law, subject to section 104. TIONAL BANKS AND THEIR AFFILI- ATES. ignate information described in or obtained SEC. 303. FUNCTIONAL REGULATION OF INSUR- (a) AUTHORITY.—Notwithstanding any pursuant to subparagraphs (A), (B), and (C) ANCE. other provision of this Act or any other law, of subsection (i)(5) as confidential informa- The insurance sales activity of any person no national bank, and no subsidiary of a nation for purposes of section 24(b)(2) of this or entity shall be functionally regulated by tional bank, may engage in any activity in- title.’’. the States, subject to section 104. volving the underwriting of title insurance, (b) CONFORMING AMENDMENTS.— SEC. 304. INSURANCE UNDERWRITING IN NA- other than title insurance underwriting ac- (1) Section 3(a)(34) of the Securities Ex- TIONAL BANKS. tivities in which such national bank or sub- change Act of 1934 (15 U.S.C. 78c(a)(34)) is (a) IN GENERAL.—Except as provided in sec- sidiary was actively and lawfully engaged amended by adding at the end the following tion 305, a national bank and the subsidiaries before the date of enactment of this Act. new subparagraphs: of a national bank may not provide insur- (b) INSURANCE AFFILIATE.—In the case of a ‘‘(H) When used with respect to an institu- ance in a State as principal except that this national bank which has an affiliate which tion described in subparagraph (D), (F), or prohibition shall not apply to authorized provides insurance as principal and is not a (G) of section 2(c)(2), or held under section products. subsidiary of the bank, the national bank May 4, 1999 CONGRESSIONAL RECORD — SENATE S4709

and any subsidiary of the national bank may ‘‘(A) apply to retail sales practices, solici- ‘‘(C) ADJUSTMENTS FOR ALTERNATIVE METH- not engage in any activity involving the un- tations, advertising, or offers of any insur- ODS OF PURCHASE.—In prescribing the re- derwriting of title insurance pursuant to ance product by any insured depository in- quirements under subparagraphs (A) and (D), subsection (a). stitution or wholesale financial institution necessary adjustments shall be made for pur- (c) INSURANCE SUBSIDIARY.—In the case of a or any person who is engaged in such activi- chase in person, by telephone, or by elec- national bank which has a subsidiary which ties at an office of the institution or on be- tronic media to provide for the most appro- provides insurance as principal and has no half of the institution; and priate and complete form of disclosure and affiliate which provides insurance as prin- ‘‘(B) are consistent with the requirements acknowledgments. cipal and is not a subsidiary, the national of this Act and provide such additional pro- ‘‘(D) CONSUMER ACKNOWLEDGMENT.—A re- bank may not engage in any activity involv- tections for consumers to whom such sales, quirement that an insured depository insti- ing the underwriting of title insurance pur- solicitations, advertising, or offers are di- tution shall require any person selling an in- suant to subsection (a). rected as the agency determines to be appro- surance product at any office of, or on behalf (d) ‘‘AFFILIATE’’ AND ‘‘SUBSIDIARY’’ DE- priate. of, the institution to obtain, at the time a FINED.—For purposes of this section, the ‘‘(2) APPLICABILITY TO SUBSIDIARIES.—The consumer receives the disclosures required terms ‘‘affiliate’’ and ‘‘subsidiary’’ have the regulations prescribed pursuant to paragraph under this paragraph or at the time of the same meanings as in section 2 of the Bank (1) shall extend such protections to any sub- initial purchase by the consumer of such Holding Company Act of 1956. sidiaries of an insured depository institu- product, an acknowledgment by such con- SEC. 306. EXPEDITED AND EQUALIZED DISPUTE tion, as deemed appropriate by the regu- sumer of the receipt of the disclosure re- RESOLUTION FOR FEDERAL REGU- lators referred to in paragraph (3), where quired under this paragraph with respect to LATORS. such extension is determined to be necessary such product. (a) FILING IN COURT OF APPEALS.—In the to ensure the consumer protections provided ‘‘(2) PROHIBITION ON MISREPRESENTATIONS.— case of a regulatory conflict between a State by this section. A prohibition on any practice, or any adver- insurance regulator and a Federal regulator ‘‘(3) CONSULTATION AND JOINT REGULA- tising, at any office of, or on behalf of, the as to whether any product is or is not insur- TIONS.—The Federal banking agencies shall insured depository institution, or any sub- ance, as defined in section 304(c), or whether consult with each other and prescribe joint sidiary as appropriate, which could mislead a State statute, regulation, order, or inter- regulations pursuant to paragraph (1), after any person or otherwise cause a reasonable pretation regarding any insurance sales or consultation with the State insurance regu- person to reach an erroneous belief with re- solicitation activity is properly treated as lators, as appropriate. spect to— preempted under Federal law, either regu- ‘‘(b) SALES PRACTICES.—The regulations ‘‘(A) the uninsured nature of any insurance lator may seek expedited judicial review of prescribed pursuant to subsection (a) shall product sold, or offered for sale, by the insti- such determination by the United States include anticoercion rules applicable to the tution or any subsidiary of the institution; Court of Appeals for the circuit in which the sale of insurance products which prohibit an or State is located or in the United States insured depository institution from engaging ‘‘(B) in the case of a variable annuity or Court of Appeals for the District of Columbia in any practice that would lead a consumer other insurance product that involves an in- Circuit by filing a petition for review in such to believe an extension of credit, in violation vestment risk, the investment risk associ- court. of section 106(b) of the Bank Holding Com- ated with any such product. (b) EXPEDITED REVIEW.—The United States EPARATION OF BANKING AND NON- Court of Appeals in which a petition for re- pany Act Amendments of 1970, is conditional ‘‘(d) S BANKING ACTIVITIES.— view is filed in accordance with subsection upon— ‘‘(1) REGULATIONS REQUIRED.—The regula- (a) shall complete all action on such peti- ‘‘(1) the purchase of an insurance product tions prescribed pursuant to subsection (a) tion, including rendering a judgment, before from the institution or any of its affiliates shall include such provisions as the Federal the end of the 60-day period beginning on the or subsidiaries; or banking agencies consider appropriate to en- date on which such petition is filed, unless ‘‘(2) an agreement by the consumer not to sure that the routine acceptance of deposits all parties to such proceeding agree to any obtain, or a prohibition on the consumer is kept, to the extent practicable, physically extension of such period. from obtaining, an insurance product from (c) SUPREME COURT REVIEW.—Any request an unaffiliated entity. segregated from insurance product activity. for certiorari to the Supreme Court of the ‘‘(c) DISCLOSURES AND ADVERTISING.—The ‘‘(2) REQUIREMENTS.—Regulations pre- United States of any judgment of a United regulations prescribed pursuant to sub- scribed pursuant to paragraph (1) shall in- States Court of Appeals with respect to a pe- section (a) shall include the following provi- clude the following requirements: tition for review under this section shall be sions relating to disclosures and advertising ‘‘(A) SEPARATE SETTING.—A clear delinea- filed with the Supreme Court of the United in connection with the initial purchase of an tion of the setting in which, and the cir- States as soon as practicable after such judg- insurance product: cumstances under which, transactions in- ment is issued. ‘‘(1) DISCLOSURES.— volving insurance products should be con- (d) STATUTE OF LIMITATION.—No action ‘‘(A) IN GENERAL.—Requirements that the ducted in a location physically segregated may be filed under this section challenging following disclosures be made orally and in from an area where retail deposits are rou- an order, ruling, determination, or other ac- writing before the completion of the initial tinely accepted. tion of a Federal regulator or State insur- sale and, in the case of clause (iii), at the ‘‘(B) REFERRALS.—Standards which permit ance regulator after the later of— time of application for an extension of cred- any person accepting deposits from the pub- (1) the end of the 12-month period begin- it: lic in an area where such transactions are ning on the date on which the first public no- ‘‘(i) UNINSURED STATUS.—As appropriate, routinely conducted in an insured depository tice is made of such order, ruling, determina- the product is not insured by the Federal De- institution to refer a customer who seeks to tion, or other action in its final form; or posit Insurance Corporation, the United purchase any insurance product to a quali- (2) the end of the 6-month period beginning States Government, or the insured deposi- fied person who sells such product, only if on the date on which such order, ruling, de- tory institution. the person making the referral receives no termination, or other action takes effect. ‘‘(ii) INVESTMENT RISK.—In the case of a more than a one-time nominal fee of a fixed (e) STANDARD OF REVIEW.—The court shall variable annuity or other insurance product dollar amount for each referral that does not decide an action filed under this section which involves an investment risk, that depend on whether the referral results in a based on its review on the merits of all ques- there is an investment risk associated with transaction. tions presented under State and Federal law, the product, including possible loss of value. ‘‘(C) QUALIFICATION AND LICENSING REQUIRE- including the nature of the product or activ- ‘‘(iii) COERCION.—The approval of an exten- MENTS.—Standards prohibiting any insured ity and the history and purpose of its regula- sion of credit may not be conditioned on— depository institution from permitting any tion under State and Federal law, without ‘‘(I) the purchase of an insurance product person to sell or offer for sale any insurance unequal deference. from the institution in which the application product in any part of any office of the insti- SEC. 307. CONSUMER PROTECTION REGULA- for credit is pending or any of its affiliates or tution, or on behalf of the institution, unless TIONS. subsidiaries; or such person is appropriately qualified and li- The Federal Deposit Insurance Act (12 ‘‘(II) an agreement by the consumer not to censed. U.S.C. 1811 et seq.) is amended by adding at obtain, or a prohibition on the consumer ‘‘(e) DOMESTIC VIOLENCE DISCRIMINATION the end the following new section: from obtaining, an insurance product from PROHIBITION.— ‘‘SEC. 45. CONSUMER PROTECTION REGULA- an unaffiliated entity. ‘‘(1) IN GENERAL.—In the case of an appli- TIONS. ‘‘(B) MAKING DISCLOSURE READILY UNDER- cant for, or an insured under, any insurance ‘‘(a) REGULATIONS REQUIRED.— STANDABLE.—Regulations prescribed under product described in paragraph (2), the sta- ‘‘(1) IN GENERAL.—The Federal banking subparagraph (A) shall encourage the use of tus of the applicant or insured as a victim of agencies shall prescribe and publish in final disclosure that is conspicuous, simple, di- domestic violence, or as a provider of serv- form, before the end of the 1-year period be- rect, and readily understandable, such as the ices to victims of domestic violence, shall ginning on the date of enactment of the Fi- following: not be considered as a criterion in any deci- nancial Services Act of 1999, consumer pro- ‘‘(i) ‘NOT FDIC–INSURED’. sion with regard to insurance underwriting, tection regulations (which the agencies ‘‘(ii) ‘NOT GUARANTEED BY THE BANK’. pricing, renewal, or scope of coverage of in- jointly determine to be appropriate) that— ‘‘(iii) ‘MAY GO DOWN IN VALUE’. surance policies, or payment of insurance S4710 CONGRESSIONAL RECORD — SENATE May 4, 1999 claims, except as required or expressly per- this section, the Board of Governors of the (2) establish uniform continuing education mitted under State law. Federal Reserve System, the Comptroller of requirements for licensed insurance pro- ‘‘(2) SCOPE OF APPLICATION.—The prohibi- the Currency, and the Board of Directors of ducers; tion contained in paragraph (1) shall apply to the Federal Deposit Insurance Corporation (3) establish uniform ethics course require- any insurance product which is sold or of- determine jointly that the protection af- ments for licensed insurance producers in fered for sale, as principal, agent, or broker, forded by such provision for consumers is conjunction with the continuing education by any insured depository institution or any greater than the protection provided by a requirements under paragraph (2); person who is engaged in such activities at comparable provision of the statutes, regula- (4) establish uniform criteria to ensure an office of the institution or on behalf of tions, orders, or interpretations referred to that an insurance product, including any an- the institution. in subparagraph (A) of any State, such provi- nuity contract, sold to a consumer is suit- ‘‘(3) SENSE OF THE CONGRESS.—It is the sion of the regulations prescribed under this able and appropriate for the consumer based sense of the Congress that, by the end of the section shall supersede the comparable pro- on financial information disclosed by the 30-month period beginning on the date of en- vision of such State statute, regulation, consumer; and actment of the Financial Services Act of order, or interpretation. (5) do not impose any requirement upon 1999, the States should enact prohibitions ‘‘(h) INSURANCE PRODUCT DEFINED.—For any insurance producer to be licensed or oth- against discrimination with respect to insur- purposes of this section, the term ‘insurance erwise qualified to do business as a non- ance products that are at least as strict as product’ includes an annuity contract the in- resident that has the effect of limiting or the prohibitions contained in paragraph (1). come of which is subject to tax treatment conditioning that producer’s activities be- ‘‘(4) DOMESTIC VIOLENCE DEFINED.—For pur- under section 72 of the Internal Revenue cause of its residence or place of operations, poses of this subsection, the term ‘domestic Code of 1986.’’. except that counter-signature requirements violence’ means the occurrence of 1 or more SEC. 308. CERTAIN STATE AFFILIATION LAWS imposed on nonresident producers shall not of the following acts by a current or former PREEMPTED FOR INSURANCE COM- be deemed to have the effect of limiting or family member, household member, intimate PANIES AND AFFILIATES. conditioning a producer’s activities because partner, or caretaker: Except as provided in section 104(a)(2), no of its residence or place of operations under ‘‘(A) Attempting to cause or causing or State may, by law, regulation, order, inter- this section. threatening another person with physical pretation, or otherwise— (c) RECIPROCITY REQUIRED.—States shall be harm, severe emotional distress, psycho- (1) prevent or significantly interfere with deemed to have established the reciprocity logical trauma, rape, or sexual assault. the ability of any insurer, or any affiliate of required to satisfy subsection (a)(2) if the ‘‘(B) Engaging in a course of conduct or re- an insurer (whether such affiliate is orga- following conditions are met: peatedly committing acts toward another nized as a stock company, mutual holding (1) ADMINISTRATIVE LICENSING PROCE- person, including following the person with- company, or otherwise), to become a finan- DURES.—At least a majority of the States out proper authority, under circumstances cial holding company or to acquire control of permit a producer that has a resident license that place the person in reasonable fear of an insured depository institution; for selling or soliciting the purchase of in- bodily injury or physical harm. (2) limit the amount of an insurer’s assets surance in its home State to receive a li- ‘‘(C) Subjecting another person to false im- that may be invested in the voting securities cense to sell or solicit the purchase of insur- prisonment. of an insured depository institution (or any ance in such majority of States as a non- ‘‘(D) Attempting to cause or causing dam- company which controls such institution), resident to the same extent that such pro- age to property so as to intimidate or at- except that the laws of an insurer’s State of ducer is permitted to sell or solicit the pur- tempt to control the behavior of another per- domicile may limit the amount of such in- chase of insurance in its State, if the pro- son. vestment to an amount that is not less than ducer’s home State also awards such licenses ‘‘(f) CONSUMER GRIEVANCE PROCESS.—The 5 percent of the insurer’s admitted assets; or on such a reciprocal basis, without satisfying Federal banking agencies shall jointly estab- (3) prevent, significantly interfere with, or any additional requirements other than lish a consumer complaint mechanism, for have the authority to review, approve, or submitting— receiving and expeditiously addressing con- disapprove a plan of reorganization by which (A) a request for licensure; sumer complaints alleging a violation of reg- an insurer proposes to reorganize from mu- (B) the application for licensure that the ulations issued under this section, which tual form to become a stock insurer (wheth- producer submitted to its home State; mechanism shall— er as a direct or indirect subsidiary of a mu- (C) proof that the producer is licensed and ‘‘(1) establish a group within each regu- tual holding company or otherwise) unless in good standing in its home State; and latory agency to receive such complaints; such State is the State of domicile of the in- (D) the payment of any requisite fee to the ‘‘(2) develop procedures for investigating surer. appropriate authority. such complaints; SEC. 309. PUBLICATION OF PREEMPTION OF (2) CONTINUING EDUCATION REQUIREMENTS.— ‘‘(3) develop procedures for informing con- STATE LAWS. A majority of the States accept an insurance sumers of rights they may have in connec- Section 5244 of the Revised Statutes of the producer’s satisfaction of its home State’s tion with such complaints; and United States (12 U.S.C. 43) is amended— continuing education requirements for li- ‘‘(4) develop procedures for addressing con- (1) by inserting ‘‘or Federal savings asso- censed insurance producers to satisfy the cerns raised by such complaints, as appro- ciation’’ after ‘‘national bank’’ each place States’ own continuing education require- priate, including procedures for the recovery that term appears; and ments if the producer’s home State also rec- of losses to the extent appropriate. (2) in subsection (c)(3)(B)(i), by inserting ognizes the satisfaction of continuing edu- ‘‘(g) EFFECT ON OTHER AUTHORITY.— ‘‘or savings associations’’ after ‘‘banks’’. cation requirements on such a reciprocal ‘‘(1) IN GENERAL.—No provision of this sec- Subtitle B—National Association of basis. tion shall be construed as granting, limiting, Registered Agents and Brokers (3) NO LIMITING NONRESIDENT REQUIRE- or otherwise affecting— SEC. 321. STATE FLEXIBILITY IN MULTISTATE LI- MENTS.—A majority of the States do not im- ‘‘(A) any authority of the Securities and CENSING REFORMS. pose any requirement upon any insurance Exchange Commission, any self-regulatory (a) IN GENERAL.—The provisions of this producer to be licensed or otherwise quali- organization, the Municipal Securities Rule- subtitle shall take effect unless, not later fied to do business as a nonresident that has making Board, or the Secretary of the Treas- than 3 years after the date of enactment of the effect of limiting or conditioning that ury under any Federal securities law; or this Act, at least a majority of the States— producer’s activities because of its residence ‘‘(B) except as provided in paragraph (2), (1) have enacted uniform laws and regula- or place of operations, except that any authority of any State insurance com- tions governing the licensure of individuals countersignature requirements imposed on missioner or other State authority under and entities authorized to sell and solicit the nonresident producers shall not be deemed to any State law. purchase of insurance within the State; or have the effect of limiting or conditioning a ‘‘(2) COORDINATION WITH STATE LAW.— (2) have enacted reciprocity laws and regu- producer’s activities because of its residence ‘‘(A) IN GENERAL.—Except as provided in lations governing the licensure of non- or place of operations under this section. subparagraph (B), regulations prescribed by resident individuals and entities authorized (4) RECIPROCAL RECIPROCITY.—Each of the a Federal banking agency under this section to sell and solicit insurance within those States that satisfies paragraphs (1), (2), and shall not apply to retail sales, solicitations, States. (3) grants reciprocity to residents of all of advertising, or offers of any insurance prod- (b) UNIFORMITY REQUIRED.—States shall be the other States that satisfy such para- uct by any insured depository institution or deemed to have established the uniformity graphs. wholesale financial institution or to any per- necessary to satisfy subsection (a)(1) if the (d) DETERMINATION.— son who is engaged in such activities at an States— (1) NAIC DETERMINATION.—At the end of office of such institution or on behalf of the (1) establish uniform criteria regarding the the 3-year period beginning on the date of institution, in a State where the State has in integrity, personal qualifications, education, enactment of this Act, the National Associa- effect statutes, regulations, orders, or inter- training, and experience of licensed insur- tion of Insurance Commissioners shall deter- pretations, that are inconsistent with or ance producers, including the qualification mine, in consultation with the insurance contrary to the regulations prescribed by the and training of sales personnel in commissioners or chief insurance regulatory Federal banking agencies. ascertaining the appropriateness of a par- officials of the States, whether the uni- ‘‘(B) PREEMPTION.—If, with respect to any ticular insurance product for a prospective formity or reciprocity required by sub- provision of the regulations prescribed under customer; sections (b) and (c) has been achieved. May 4, 1999 CONGRESSIONAL RECORD — SENATE S4711

(2) JUDICIAL REVIEW.—The appropriate (3) RESUMPTION OF ELIGIBILITY.—Paragraph (1) IN GENERAL.—The Association shall es- United States district court shall have exclu- (2) shall cease to apply to any insurance pro- tablish an office of consumer complaints sive jurisdiction over any challenge to the ducer if— that shall— National Association of Insurance Commis- (A) the State insurance regulator renews (A) receive and investigate complaints sioners’ determination under this section the license of such producer in the State in from both consumers and State insurance and such court shall apply the standards set which the license was suspended or revoked; regulators related to members of the Asso- forth in section 706 of title 5, United States or ciation; and Code, when reviewing any such challenge. (B) the suspension or revocation is subse- (B) recommend to the Association any dis- (e) CONTINUED APPLICATION.—If, at any quently overturned. ciplinary actions that the office considers time, the uniformity or reciprocity required (b) AUTHORITY TO ESTABLISH MEMBERSHIP appropriate, to the extent that any such rec- by subsections (b) and (c) no longer exists, CRITERIA.—The Association shall have the ommendation is not inconsistent with State the provisions of this subtitle shall take ef- authority to establish membership criteria law. fect 2 years after the date on which such uni- that— (2) RECORDS AND REFERRALS.—The office of formity or reciprocity ceases to exist, unless (1) bear a reasonable relationship to the consumer complaints of the Association the uniformity or reciprocity required by purposes for which the Association was es- shall— those provisions is satisfied before the expi- tablished; and (A) maintain records of all complaints re- ration of that 2-year period. (2) do not unfairly limit the access of ceived in accordance with paragraph (1) and (f) SAVINGS PROVISION.—No provision of smaller agencies to the Association member- make such records available to the NAIC and this section shall be construed as requiring ship. to each State insurance regulator for the that any law, regulation, provision, or action (c) ESTABLISHMENT OF CLASSES AND CAT- State of residence of the consumer who filed of any State which purports to regulate in- EGORIES.— the complaint; and surance producers, including any such law, (1) CLASSES OF MEMBERSHIP.—The Associa- (B) refer, when appropriate, any such com- regulation, provision, or action which pur- tion may establish separate classes of mem- plaint to any appropriate State insurance ports to regulate unfair trade practices or es- bership, with separate criteria, if the Asso- regulator. tablish consumer protections, including ciation reasonably determines that perform- (3) TELEPHONE AND OTHER ACCESS.—The of- countersignature laws, be altered or amend- ance of different duties requires different fice of consumer complaints shall maintain a ed in order to satisfy the uniformity or reci- levels of education, training, or experience. toll-free telephone number for the purpose of procity required by subsections (b) and (c), (2) CATEGORIES.—The Association may es- this subsection and, as practicable, other al- unless any such law, regulation, provision, tablish separate categories of membership ternative means of communication with con- or action is inconsistent with a specific re- for individuals and for other persons. The es- sumers, such as an Internet home page. quirement of any such subsection and then tablishment of any such categories of mem- only to the extent of such inconsistency. SEC. 326. BOARD OF DIRECTORS. (g) UNIFORM LICENSING.—Nothing in this bership shall be based either on the types of (a) ESTABLISHMENT.—There is established section shall be construed to require any licensing categories that exist under State the board of directors of the Association State to adopt new or additional licensing laws or on the aggregate amount of business (hereafter in this subtitle referred to as the requirements to achieve the uniformity nec- handled by an insurance producer. No special ‘‘Board’’) for the purpose of governing and essary to satisfy subsection (a)(1). categories of membership, and no distinct supervising the activities of the Association SEC. 322. NATIONAL ASSOCIATION OF REG- membership criteria, shall be established for and the members of the Association. ISTERED AGENTS AND BROKERS. members which are insured depository insti- (b) POWERS.—The Board shall have such (a) ESTABLISHMENT.—There is established tutions or wholesale financial institutions or powers and authority as may be specified in the National Association of Registered for their employees, agents, or affiliates. the bylaws of the Association. Agents and Brokers (hereafter in this sub- (d) MEMBERSHIP CRITERIA.— (c) COMPOSITION.— title referred to as the ‘‘Association’’). (1) IN GENERAL.—The Association may es- (1) MEMBERS.—The Board shall be com- (b) STATUS.—The Association shall— tablish criteria for membership which shall posed of 7 members appointed by the NAIC. (1) be a nonprofit corporation; include standards for integrity, personal (2) REQUIREMENT.—At least 4 of the mem- (2) have succession until dissolved by an qualifications, education, training, and expe- bers of the Board shall have significant expe- Act of Congress; rience. rience with the regulation of commercial (3) not be an agent or instrumentality of (2) MINIMUM STANDARD.—In establishing lines of insurance in at least 1 of the 20 the United States Government; and criteria under paragraph (1), the Association States in which the greatest total dollar (4) except as otherwise provided in this shall consider the highest levels of insurance amount of commercial-lines insurance is Act, be subject to, and have all the powers producer qualifications established under the placed in the United States. conferred upon a nonprofit corporation by licensing laws of the States. (3) INITIAL BOARD MEMBERSHIP.— the District of Columbia Nonprofit Corpora- (e) EFFECT OF MEMBERSHIP.—Membership (A) IN GENERAL.—If, by the end of the 2- tion Act (D.C. Code, sec. 29y–1001 et seq.). in the Association shall entitle the member year period beginning on the date of enact- SEC. 323. PURPOSE. to licensure in each State for which the ment of this Act, the NAIC has not appointed The purpose of the Association shall be to member pays the requisite fees, including li- the initial 7 members of the Board of the As- provide a mechanism through which uniform censing fees and, where applicable, bonding sociation, the initial Board shall consist of licensing, appointment, continuing edu- requirements, set by such State. the 7 State insurance regulators of the 7 cation, and other insurance producer sales (f) ANNUAL RENEWAL.—Membership in the States with the greatest total dollar amount qualification requirements and conditions Association shall be renewed on an annual of commercial-lines insurance in place as of can be adopted and applied on a multistate basis. the end of such period. basis, while preserving the right of States to (g) CONTINUING EDUCATION.—The Associa- (B) ALTERNATE COMPOSITION.—If any of the license, supervise, and discipline insurance tion shall establish, as a condition of mem- State insurance regulators described in sub- producers and to prescribe and enforce laws bership, continuing education requirements paragraph (A) declines to serve on the Board, and regulations with regard to insurance-re- which shall be comparable to or greater than the State insurance regulator with the next lated consumer protection and unfair trade the continuing education requirements greatest total dollar amount of commercial- practices. under the licensing laws of a majority of the lines insurance in place, as determined by SEC. 324. RELATIONSHIP TO THE FEDERAL GOV- States. the NAIC as of the end of such period, shall ERNMENT. (h) SUSPENSION AND REVOCATION.—The As- serve as a member of the Board. The Association shall be subject to the su- sociation may— (C) INOPERABILITY.—If fewer than 7 State pervision and oversight of the National Asso- (1) inspect and examine the records and of- insurance regulators accept appointment to ciation of Insurance Commissioners (here- fices of the members of the Association to the Board, the Association shall be estab- after in this subtitle referred to as the determine compliance with the criteria for lished without NAIC oversight pursuant to ‘‘NAIC’’). membership established by the Association; section 332. SEC. 325. MEMBERSHIP. and (d) TERMS.—The term of each director (a) ELIGIBILITY.— (2) suspend or revoke the membership of an shall, after the initial appointment of the (1) IN GENERAL.—Any State-licensed insur- insurance producer if— members of the Board, be for 3 years, with 1⁄3 ance producer shall be eligible to become a (A) the producer fails to meet the applica- of the directors to be appointed each year. member in the Association. ble membership criteria of the Association; (e) BOARD VACANCIES.—A vacancy on the (2) INELIGIBILITY FOR SUSPENSION OR REV- or Board shall be filled in the same manner as OCATION OF LICENSE.—Notwithstanding para- (B) the producer has been subject to dis- the original appointment of the initial Board graph (1), a State-licensed insurance pro- ciplinary action pursuant to a final adjudica- for the remainder of the term of the vacating ducer shall not be eligible to become a mem- tory proceeding under the jurisdiction of a member. ber if a State insurance regulator has sus- State insurance regulator, and the Associa- (f) MEETINGS.—The Board shall meet at the pended or revoked such producer’s license in tion concludes that retention of membership call of the chairperson, or as otherwise pro- that State during the 3-year period preceding in the Association would not be in the public vided by the bylaws of the Association. the date on which such producer applies for interest. SEC. 327. OFFICERS. membership. (i) OFFICE OF CONSUMER COMPLAINTS.— (a) IN GENERAL.— S4712 CONGRESSIONAL RECORD — SENATE May 4, 1999

(1) POSITIONS.—The officers of the Associa- (A) IN GENERAL.—Proceedings instituted by member of such charges, give the member an tion shall consist of a chairperson and a vice the NAIC with respect to a proposed rule or opportunity to defend against the charges, chairperson of the Board, a president, sec- amendment pursuant to paragraph (2) shall— and keep a record. retary, and treasurer of the Association, and (i) include notice of the grounds for dis- (2) SUPPORTING STATEMENT.—A determina- such other officers and assistant officers as approval under consideration; tion to take disciplinary action shall be sup- may be deemed necessary. (ii) provide opportunity for hearing; and ported by a statement setting forth— (2) MANNER OF SELECTION.—Each officer of (iii) be concluded not later than 180 days (A) any act or practice in which such mem- the Board and the Association shall be elect- after the date of the Association’s filing of ber has been found to have been engaged; ed or appointed at such time and in such such proposed rule or amendment. (B) the specific provision of this subtitle, manner and for such terms not exceeding 3 (B) DISPOSITION OF PROPOSAL.—At the con- the rules or regulations under this subtitle, years as may be prescribed in the bylaws of clusion of any proceeding under subpara- or the rules of the Association which any the Association. graph (A), the NAIC shall, by order, approve such act or practice is deemed to violate; and (b) CRITERIA FOR CHAIRPERSON.—Only indi- or disapprove the proposed rule or amend- (C) the sanction imposed and the reason for viduals who are members of the NAIC shall ment. such sanction. be eligible to serve as the chairperson of the (C) EXTENSION OF TIME FOR CONSIDER- (e) NAIC REVIEW OF DISCIPLINARY AC- board of directors. ATION.—The NAIC may extend the time for TION.— concluding any proceeding under subpara- SEC. 328. BYLAWS, RULES, AND DISCIPLINARY AC- (1) NOTICE TO THE NAIC.—If the Association TION. graph (A) for— orders any disciplinary action, the Associa- (i) not more than 60 days if the NAIC finds (a) ADOPTION AND AMENDMENT OF BY- tion shall promptly notify the NAIC of such good cause for such extension and sets forth LAWS.— action. its reasons for so finding; or (1) COPY REQUIRED TO BE FILED WITH THE (2) REVIEW BY THE NAIC.—Any disciplinary (ii) for such longer period as to which the NAIC.—The board of directors of the Associa- action taken by the Association shall be sub- Association consents. tion shall file with the NAIC a copy of the ject to review by the NAIC— (4) STANDARDS FOR REVIEW.— proposed bylaws or any proposed amendment (A) on the NAIC’s own motion; or (A) GROUNDS FOR APPROVAL.—The NAIC to the bylaws, accompanied by a concise gen- (B) upon application by any person ag- shall approve a proposed rule or amendment eral statement of the basis and purpose of grieved by such action if such application is if the NAIC finds that the rule or amend- such proposal. filed with the NAIC not more than 30 days ment is in the public interest and is con- after the later of— (2) EFFECTIVE DATE.—Except as provided in sistent with the purposes of this Act. paragraph (3), any proposed bylaw or pro- (i) the date the notice was filed with the (B) APPROVAL BEFORE END OF NOTICE PE- posed amendment shall take effect— NAIC pursuant to paragraph (1); or RIOD.—The NAIC shall not approve any pro- (A) 30 days after the date of the filing of a (ii) the date the notice of the disciplinary posed rule before the end of the 30-day period action was received by such aggrieved per- copy with the NAIC; beginning on the date on which the Associa- (B) upon such later date as the Association son. tion files proposed rules or amendments in (f) EFFECT OF REVIEW.—The filing of an ap- may designate; or accordance with paragraph (1), unless the (C) upon such earlier date as the NAIC may plication to the NAIC for review of a discipli- NAIC finds good cause for so doing and sets nary action, or the institution of review by determine. forth the reasons for so finding. (3) DISAPPROVAL BY THE NAIC.—Notwith- the NAIC on the NAIC’s own motion, shall (5) ALTERNATE PROCEDURE.— standing paragraph (2), a proposed bylaw or not operate as a stay of disciplinary action (A) IN GENERAL.—Notwithstanding any pro- unless the NAIC otherwise orders. amendment shall not take effect if, after vision of this subsection other than subpara- public notice and opportunity to participate (g) SCOPE OF REVIEW.— graph (B), a proposed rule or amendment re- (1) IN GENERAL.—In any proceeding to rein a public hearing— lating to the administration or organization (A) the NAIC disapproves such proposal as view such action, after notice and the oppor- of the Association shall take effect— tunity for hearing, the NAIC shall— being contrary to the public interest or con- (i) upon the date of filing with the NAIC, if trary to the purposes of this subtitle and (A) determine whether the action should be such proposed rule or amendment is des- taken; provides notice to the Association setting ignated by the Association as relating solely forth the reasons for such disapproval; or (B) affirm, modify, or rescind the discipli- to matters which the NAIC, consistent with nary sanction; or (B) the NAIC finds that such proposal in- the public interest and the purposes of this volves a matter of such significant public in- (C) remand to the Association for further subsection, determines by rule do not require proceedings. terest that public comment should be ob- the procedures set forth in this paragraph; or tained, in which case it may, after notifying (2) DISMISSAL OF REVIEW.—The NAIC may (ii) upon such date as the NAIC shall for dismiss a proceeding to review disciplinary the Association in writing of such finding, good cause determine. require that the procedures set forth in sub- action if the NAIC finds that— (B) ABROGATION BY THE NAIC.— section (b) be followed with respect to such (A) the specific grounds on which the ac- (i) IN GENERAL.—At any time within 60 tion is based exist in fact; proposal, in the same manner as if such pro- days after the date of filing of any proposed posed bylaw change were a proposed rule (B) the action is in accordance with appli- rule or amendment under subparagraph cable rules and regulations; and change within the meaning of such sub- (A)(i) or clause (ii) of this subparagraph, the section. (C) such rules and regulations are, and NAIC may repeal such rule or amendment were, applied in a manner consistent with (b) ADOPTION AND AMENDMENT OF RULES.— and require that the rule or amendment be (1) FILING PROPOSED REGULATIONS WITH THE the purposes of this subtitle. refiled and reviewed in accordance with this SEC. 329. ASSESSMENTS. NAIC.— paragraph, if the NAIC finds that such action (a) INSURANCE PRODUCERS SUBJECT TO AS- (A) IN GENERAL.—The board of directors of is necessary or appropriate in the public in- SESSMENT.—The Association may establish the Association shall file with the NAIC a terest, for the protection of insurance pro- such application and membership fees as the copy of any proposed rule or any proposed ducers or policyholders, or otherwise in fur- Association finds necessary to cover the amendment to a rule of the Association therance of the purposes of this subtitle. which shall be accompanied by a concise costs of its operations, including fees made (ii) EFFECT OF RECONSIDERATION BY THE general statement of the basis and purpose of reimbursable to the NAIC under subsection NAIC.—Any action of the NAIC pursuant to (b), except that, in setting such fees, the As- such proposal. clause (i) shall— sociation may not discriminate against (B) OTHER RULES AND AMENDMENTS INEFFEC- (I) not affect the validity or force of a rule smaller insurance producers. TIVE.—No proposed rule or amendment shall change during the period such rule or amend- (b) NAIC ASSESSMENTS.—The NAIC may as- take effect unless approved by the NAIC or ment was in effect; and otherwise permitted in accordance with this sess the Association for any costs that the (II) not be considered to be a final action. NAIC incurs under this subtitle. paragraph. (c) ACTION REQUIRED BY THE NAIC.—The (2) INITIAL CONSIDERATION BY THE NAIC.— NAIC may, in accordance with such rules as SEC. 330. FUNCTIONS OF THE NAIC. Not later than 35 days after the date of publi- the NAIC determines to be necessary or ap- (a) ADMINISTRATIVE PROCEDURE.—Deter- cation of notice of filing of a proposal, or be- propriate to the public interest or to carry minations of the NAIC, for purposes of mak- fore the end of such longer period not to ex- out the purposes of this subtitle, require the ing rules pursuant to section 328, shall be ceed 90 days as the NAIC may designate after Association to adopt, amend, or repeal any made after appropriate notice and oppor- such date, if the NAIC finds such longer pe- bylaw, rule or amendment of the Associa- tunity for a hearing and for submission of riod to be appropriate and sets forth its rea- tion, whenever adopted. views of interested persons. sons for so finding, or as to which the Asso- (d) DISCIPLINARY ACTION BY THE ASSOCIA- (b) EXAMINATIONS AND REPORTS.— ciation consents, the NAIC shall— TION.— (1) EXAMINATIONS.—The NAIC may make (A) by order approve such proposed rule or (1) SPECIFICATION OF CHARGES.—In any pro- such examinations and inspections of the As- amendment; or ceeding to determine whether membership sociation and require the Association to fur- (B) institute proceedings to determine shall be denied, suspended, revoked, or not nish to the NAIC such reports and records or whether such proposed rule or amendment renewed (hereafter in this section referred to copies thereof as the NAIC may consider nec- should be modified or disapproved. as a ‘‘disciplinary action’’), the Association essary or appropriate in the public interest (3) NAIC PROCEEDINGS.— shall bring specific charges, notify such or to effectuate the purposes of this subtitle. May 4, 1999 CONGRESSIONAL RECORD — SENATE S4713

(2) REPORT BY ASSOCIATION.—As soon as for the Board to the President by January 15 SEC. 334. COORDINATION WITH OTHER REGU- practicable after the close of each fiscal of each subsequent year. If the NAIC fails to LATORS. year, the Association shall submit to the provide a list by that date, or if any list that (a) COORDINATION WITH STATE INSURANCE NAIC a written report regarding the conduct is provided does not include at least 6 rec- REGULATORS.—The Association shall have of its business, and the exercise of the other ommended candidates or comply with the re- the authority to— rights and powers granted by this subtitle, quirements of section 326(c), the President, (1) issue uniform insurance producer appli- during such fiscal year. Such report shall in- with the advice and consent of the Senate, cations and renewal applications that may clude financial statements setting forth the shall make the requisite appointments with- be used to apply for the issuance or removal financial position of the Association at the out considering the views of the NAIC. of State licenses, while preserving the abil- end of such fiscal year and the results of its (C) PRESIDENTIAL OVERSIGHT.— ity of each State to impose such conditions operations (including the source and applica- (i) REMOVAL.—If the President determines on the issuance or renewal of a license as are tion of its funds) for such fiscal year. The that the Association is not acting in the inconsistent with section 333; NAIC shall transmit such report to the terests of the public, the President may re- (2) establish a central clearinghouse President and the Congress with such com- move the entire existing Board for the re- through which members of the Association ment thereon as the NAIC determines to be mainder of the term to which the members may apply for the issuance or renewal of li- appropriate. of the Board were appointed and appoint, censes in multiple States; and SEC. 331. LIABILITY OF THE ASSOCIATION AND with the advice and consent of the Senate, (3) establish or utilize a national database THE DIRECTORS, OFFICERS, AND new members to fill the vacancies on the for the collection of regulatory information EMPLOYEES OF THE ASSOCIATION. Board for the remainder of such terms. concerning the activities of insurance pro- (a) IN GENERAL.—The Association shall not (ii) SUSPENSION OF RULES OR ACTIONS.—The ducers. be deemed to be an insurer or insurance pro- President, or a person designated by the (b) COORDINATION WITH THE NATIONAL ASSO- ducer within the meaning of any State law, President for such purpose, may suspend the CIATION OF SECURITIES DEALERS.—The Asso- rule, regulation, or order regulating or tax- effectiveness of any rule, or prohibit any ac- ciation shall coordinate with the National ing insurers, insurance producers, or other tion, of the Association which the President Association of Securities Dealers in order to entities engaged in the business of insurance, or the designee determines is contrary to the ease any administrative burdens that fall on including provisions imposing premium public interest. persons that are members of both associa- taxes, regulating insurer solvency or finan- (c) ANNUAL REPORT.—As soon as prac- tions, consistent with the purposes of this cial condition, establishing guaranty funds ticable after the close of each fiscal year, the subtitle and the Federal securities laws. and levying assessments, or requiring claims Association shall submit to the President SEC. 335. JUDICIAL REVIEW. settlement practices. and to the Congress a written report relative (a) JURISDICTION.—The appropriate United (b) LIABILITY OF THE ASSOCIATION, ITS DI- to the conduct of its business, and the exer- States district court shall have exclusive ju- RECTORS, OFFICERS, AND EMPLOYEES.—Nei- cise of the other rights and powers granted ther the Association nor any of its directors, risdiction over litigation involving the Asso- by this subtitle, during such fiscal year. ciation, including disputes between the Asso- officers, or employees shall have any liabil- Such report shall include financial state- ity to any person for any action taken or ciation and its members that arise under ments setting forth the financial position of this subtitle. Suits brought in State court omitted in good faith under or in connection the Association at the end of such fiscal year with any matter subject to this subtitle. involving the Association shall be deemed to and the results of its operations (including have arisen under Federal law and therefore SEC. 332. ELIMINATION OF NAIC OVERSIGHT. the source and application of its funds) for be subject to jurisdiction in the appropriate (a) IN GENERAL.—The Association shall be such fiscal year. United States district court. established without NAIC oversight and the SEC. 333. RELATIONSHIP TO STATE LAW. (b) EXHAUSTION OF REMEDIES.—An ag- provisions set forth in section 324, sub- grieved person shall be required to exhaust sections (a), (b), (c), and (e) of section 328, (a) PREEMPTION OF STATE LAWS.—State laws, regulations, provisions, or other ac- all available administrative remedies before and sections 329(b) and 330 of this subtitle the Association and the NAIC before it may shall cease to be effective if, at the end of tions purporting to regulate insurance producers shall be preempted as provided in sub- seek judicial review of an Association deci- the 2-year period beginning on the date on sion. which the provisions of this subtitle take ef- section (b). (c) STANDARDS OF REVIEW.—The standards fect pursuant to section 321— (b) PROHIBITED ACTIONS.—No State shall— set forth in section 553 of title 5, United (1) at least a majority of the States rep- (1) impede the activities of, take any ac- States Code, shall be applied whenever a rule resenting at least 50 percent of the total tion against, or apply any provision of law or or bylaw of the Association is under judicial United States commercial-lines insurance regulation to, any insurance producer be- review, and the standards set forth in section premiums have not satisfied the uniformity cause that insurance producer or any affil- 554 of title 5, United States Code, shall be ap- or reciprocity requirements of subsections iate plans to become, has applied to become, plied whenever a disciplinary action of the (a), (b), and (c) of section 321; and or is a member of the Association; Association is judicially reviewed. (2) the NAIC has not approved the Associa- (2) impose any requirement upon a member tion’s bylaws as required by section 328 or is of the Association that it pay different fees SEC. 336. DEFINITIONS. unable to operate or supervise the Associa- to be licensed or otherwise qualified to do For purposes of this subtitle, the following tion, or the Association is not conducting its business in that State, including bonding re- definitions shall apply: activities as required under this Act. quirements, based on its residency; (1) HOME STATE.—The term ‘‘home State’’ (b) BOARD APPOINTMENTS.—If the repeals (3) impose any licensing, appointment, in- means the State in which the insurance pro- required by subsection (a) are implemented, tegrity, personal or corporate qualifications, ducer maintains its principal place of resi- the following shall apply: education, training, experience, residency, or dence and is licensed to act as an insurance (1) GENERAL APPOINTMENT POWER.—The continuing education requirement upon a producer. President, with the advice and consent of the member of the Association that is different (2) INSURANCE.—The term ‘‘insurance’’ Senate, shall appoint the members of the As- from the criteria for membership in the As- means any product, other than title insur- sociation’s Board established under section sociation or renewal of such membership, ex- ance, defined or regulated as insurance by 326 from lists of candidates recommended to cept that counter-signature requirements the appropriate State insurance regulatory the President by the National Association of imposed on nonresident producers shall not authority. Insurance Commissioners. be deemed to have the effect of limiting or (3) INSURANCE PRODUCER.—The term ‘‘insur- (2) PROCEDURES FOR OBTAINING NATIONAL conditioning a producer’s activities because ance producer’’ means any insurance agent ASSOCIATION OF INSURANCE COMMISSIONERS AP- of its residence or place of operations under or broker, surplus lines broker, insurance POINTMENT RECOMMENDATIONS.— this section; or consultant, limited insurance representa- (A) INITIAL DETERMINATION AND REC- (4) implement the procedures of such tive, and any other person that solicits, ne- OMMENDATIONS.—After the date on which the State’s system of licensing or renewing the gotiates, effects, procures, delivers, renews, provisions of subsection (a) take effect, the licenses of insurance producers in a manner continues or binds policies of insurance or NAIC shall, not later than 60 days thereafter, different from the authority of the Associa- offers advice, counsel, opinions or services provide a list of recommended candidates to tion under section 325. related to insurance. the President. If the NAIC fails to provide a (c) SAVINGS PROVISION.—Except as provided (4) STATE.—The term ‘‘State’’ includes any list by that date, or if any list that is pro- in subsections (a) and (b), no provision of State, the District of Columbia, American vided does not include at least 14 rec- this section shall be construed as altering or Samoa, Guam, Puerto Rico, and the United ommended candidates or comply with the re- affecting the continuing effectiveness of any States Virgin Islands. quirements of section 326(c), the President law, regulation, provision, or other action of (5) STATE LAW.—The term ‘‘State law’’ in- shall, with the advice and consent of the any State which purports to regulate insur- cludes all laws, decisions, rules, regulations, Senate, make the requisite appointments ance producers, including any such law, reg- or other State action having the effect of without considering the views of the NAIC. ulation, provision, or action which purports law, of any State. A law of the United States (B) SUBSEQUENT APPOINTMENTS.—After the to regulate unfair trade practices or estab- applicable only to the District of Columbia initial appointments, the NAIC shall provide lish consumer protections, including shall be treated as a State law rather than a a list of at least 6 recommended candidates countersignature laws. law of the United States. S4714 CONGRESSIONAL RECORD — SENATE May 4, 1999 TITLE IV—UNITARY SAVINGS AND LOAN by or for the benefit of members of the same ‘‘Sec. 1002. Definitions. HOLDING COMPANIES family, or their spouses, who are lineal de- ‘‘Sec. 1003. Privacy protection for customer SEC. 401. PREVENTION OF CREATION OF NEW scendants of common ancestors who con- information of financial insti- S&L HOLDING COMPANIES WITH trolled, directly or indirectly, such savings tutions. COMMERCIAL AFFILIATES. association on March 4, 1999, or a subsequent ‘‘Sec. 1004. Administrative enforcement. (a) IN GENERAL.—Section 10(c) of the Home date, pursuant to an application pending be- ‘‘Sec. 1005. Civil liability. Owners’ Loan Act (12 U.S.C. 1467a(c)) is fore the Office of Thrift Supervision on or ‘‘Sec. 1006. Criminal penalty. amended by adding at the end the following before March 4, 1999; and ‘‘Sec. 1007. Relation to State laws. new paragraph: ‘‘(ii) at the time at which such trust be- ‘‘Sec. 1008. Agency guidance. ‘‘(9) PREVENTION OF NEW AFFILIATIONS BE- comes a savings and loan holding company, ‘‘SEC. 1002. DEFINITIONS. TWEEN S&L HOLDING COMPANIES AND COMMER- such ancestors or lineal descendants, or ‘‘For purposes of this title, the following CIAL FIRMS.— spouses of such descendants, have directly or definitions shall apply: ‘‘(A) IN GENERAL.—Notwithstanding para- indirectly controlled the savings association ‘‘(1) CUSTOMER.—The term ‘customer’ graph (3), no company may directly or indi- continuously since March 4, 1999, or a subse- means, with respect to a financial institu- rectly, including through any merger, con- quent date, pursuant to an application pend- tion, any person (or authorized representa- solidation, or other type of business coming before the Office of Thrift Supervision on tive of a person) to whom the financial insti- bination, acquire control of a savings asso- or before March 4, 1999.’’. tution provides a product or service, includ- ciation after March 4, 1999, unless the com- (b) CONFORMING AMENDMENT.—Section ing that of acting as a fiduciary. pany is engaged, directly or indirectly (in- 10(o)(5)(E) of the Home Owners’ Loan Act (15 cluding through a subsidiary other than a ‘‘(2) CUSTOMER INFORMATION OF A FINANCIAL U.S.C. 1467a(o)(5)(E)) is amended by striking INSTITUTION.—The term ‘customer informa- savings association), only in activities that ‘‘, except subparagraph (B)’’ and inserting are permitted— tion of a financial institution’ means any in- ‘‘or (c)(9)(A)(ii)’’. formation maintained by a financial institu- ‘‘(i) under paragraph (1)(C) or (2); or SEC. 402. OPTIONAL CONVERSION OF FEDERAL ‘‘(ii) for financial holding companies under tion which is derived from the relationship SAVINGS ASSOCIATIONS TO NA- between the financial institution and a cus- section 6(c) of the Bank Holding Company TIONAL BANKS. tomer of the financial institution and is Act of 1956. Section 5(i) of the Home Owners’ Loan Act identified with the customer. ‘‘(B) PREVENTION OF NEW COMMERCIAL AF- (12 U.S.C. 1464(i)) is amended by adding at ‘‘(3) DOCUMENT.—The term ‘document’ FILIATIONS.—Notwithstanding paragraph (3), the end the following new paragraph: means any information in any form. no savings and loan holding company may ‘‘(5) CONVERSION TO A NATIONAL BANK.—Not- ‘‘(4) FINANCIAL INSTITUTION.— engage directly or indirectly (including withstanding any other provision of law, any ‘‘(A) IN GENERAL.—The term ‘financial in- through a subsidiary other than a savings as- Federal savings association chartered and in stitution’ means any institution engaged in sociation) in any activity other than as de- operation before the date of enactment of the business of providing financial services scribed in clauses (i) and (ii) of subparagraph the Financial Services Act of 1999, with to customers who maintain a credit, deposit, (A). branches in 1 or more States, may convert, trust, or other financial account or relation- ‘‘(C) PRESERVATION OF AUTHORITY OF EXIST- with the approval of the Comptroller of the ship with the institution. ING UNITARY S&L HOLDING COMPANIES.—Sub- Currency, into 1 or more national banks, ‘‘(B) CERTAIN FINANCIAL INSTITUTIONS SPE- paragraphs (A) and (B) do not apply with re- each of which may encompass one or more of CIFICALLY INCLUDED.—The term ‘financial inspect to any company that was a savings and the branches of the Federal savings associa- stitution’ includes any depository institu- loan holding company on March 4, 1999, or tion in 1 or more States, but only if the re- tion (as defined in section 19(b)(1)(A) of the that becomes a savings and loan holding sulting national bank or banks will meet any Federal Reserve Act), any loan or finance company pursuant to an application pending and all financial, management, and capital company, any credit card issuer or operator before the Office of Thrift Supervision on or requirements applicable to a national of a credit card system, and any consumer before that date, and that— bank.’’. reporting agency that compiles and main- ‘‘(i) meets and continues to meet the re- SEC. 403. RETENTION OF ‘‘FEDERAL’’ IN NAME OF quirements of paragraph (3); and CONVERTED FEDERAL SAVINGS AS- tains files on consumers on a nationwide ‘‘(ii) continues to control not fewer than 1 SOCIATION. basis (as defined in section 603(p)). savings association that it controlled on Section 2 of the Act entitled ‘‘An Act to ‘‘(C) FURTHER DEFINITION BY REGULATION.— March 4, 1999, or that it acquired pursuant to enable national banking associations to in- The Board of Governors of the Federal Re- an application pending before the Office of crease their capital stock and to change serve System may prescribe regulations fur- Thrift Supervision on or before that date, or their names or locations’’, approved May 1, ther defining the term ‘financial institution’, the successor to such savings association. 1886 (12 U.S.C. 30), is amended by adding at in accordance with subparagraph (A), for ‘‘(D) CORPORATE REORGANIZATIONS PER- the end the following new subsection: purposes of this title. MITTED.—This paragraph does not prevent a ‘‘(d) RETENTION OF ‘FEDERAL’ IN NAME OF ‘‘SEC. 1003. PRIVACY PROTECTION FOR CUS- transaction that— CONVERTED FEDERAL SAVINGS ASSOCIATION.— TOMER INFORMATION OF FINAN- ‘‘(i) involves solely a company under com- ‘‘(1) IN GENERAL.—Notwithstanding sub- CIAL INSTITUTIONS. mon control with a savings and loan holding section (a) or any other provision of law, any ‘‘(a) PROHIBITION ON OBTAINING CUSTOMER company from acquiring, directly or indi- depository institution the charter of which INFORMATION BY FALSE PRETENSES.—It shall rectly, control of the savings and loan hold- is converted from that of a Federal savings be a violation of this title for any person to ing company or any savings association that association to a national bank or a State obtain or attempt to obtain, or cause to be is already a subsidiary of the savings and bank after the date of enactment of the Fi- disclosed or attempt to cause to be disclosed loan holding company; or nancial Services Act of 1999 may retain the to any person, customer information of a fi- ‘‘(ii) involves solely a merger, consolida- term ‘Federal’ in the name of such institu- nancial institution relating to another tion, or other type of business combination tion if such depository institution remains person— as a result of which a company under com- an insured depository institution. ‘‘(1) by knowingly making a false, ficti- mon control with the savings and loan hold- ‘‘(2) DEFINITIONS.—For purposes of this sub- tious, or fraudulent statement or representa- ing company acquires, directly or indirectly, section, the terms ‘depository institution’, tion to an officer, employee, or agent of a fi- control of the savings and loan holding com- ‘insured depository institution’, ‘national nancial institution with the intent to de- pany or any savings association that is al- bank’, and ‘State bank’ have the same mean- ceive the officer, employee, or agent into re- ready a subsidiary of the savings and loan ings as in section 3 of the Federal Deposit In- lying on that statement or representation holding company. surance Act.’’. for purposes of releasing the customer infor- ‘‘(E) AUTHORITY TO PREVENT EVASIONS.— TITLE V—FINANCIAL INFORMATION ANTI- mation; The Director may issue interpretations, reg- FRAUD ‘‘(2) by knowingly making a false, ficti- ulations, or orders that the Director deter- tious, or fraudulent statement or representa- SEC. 501. FINANCIAL INFORMATION ANTI-FRAUD. mines necessary to administer and carry out tion to a customer of a financial institution The Consumer Credit Protection Act (15 the purpose and prevent evasions of this with the intent to deceive the customer into U.S.C. 1601 et seq.) is amended by adding at paragraph, including a determination that, relying on that statement or representation the end the following: notwithstanding the form of a transaction, for purposes of releasing the customer infor- the transaction would in substance result in ‘‘TITLE X—FINANCIAL INFORMATION mation or authorizing the release of such in- a company acquiring control of a savings as- PRIVACY PROTECTION formation; or sociation. ‘‘SEC. 1001. SHORT TITLE; TABLE OF CONTENTS. ‘‘(3) by knowingly providing any document ‘‘(F) PRESERVATION OF AUTHORITY FOR FAM- ‘‘(a) SHORT TITLE.—This title may be cited to an officer, employee, or agent of a finan- ILY TRUSTS.—Subparagraphs (A) and (B) do as the ‘Financial Information Anti-Fraud cial institution, knowing that the document not apply with respect to any trust that be- Act of 1999’. is forged, counterfeit, lost, or stolen, was comes a savings and loan holding company ‘‘(b) TABLE OF CONTENTS.—The table of fraudulently obtained, or contains a false, with respect to a savings association, if— contents for this title is as follows: fictitious, or fraudulent statement or rep- ‘‘(i) not less than 85 percent of the bene- ‘‘TITLE X—FINANCIAL INFORMATION resentation, if the document is provided with ficial ownership interests in the trust are PRIVACY PROTECTION the intent to deceive the officer, employee, continuously owned, directly or indirectly, ‘‘Sec. 1001. Short title; table of contents. or agent into relying on that document for May 4, 1999 CONGRESSIONAL RECORD — SENATE S4715 purposes of releasing the customer informa- Administration with respect to any Federal of a financial institution shall be liable to tion. credit union. such financial institution or the customer to ‘‘(b) PROHIBITION ON SOLICITATION OF A PER- ‘‘(2) VIOLATIONS OF THIS TITLE TREATED AS whom such information relates in an amount SON TO OBTAIN CUSTOMER INFORMATION FROM VIOLATIONS OF OTHER LAWS.—For the purpose equal to the sum of the amounts determined FINANCIAL INSTITUTION UNDER FALSE PRE- of the exercise by any agency referred to in under each of the following paragraphs: TENSES.—It shall be a violation of this title paragraph (1) of its powers under any Act re- ‘‘(1) ACTUAL DAMAGES.—The greater of— to request a person to obtain customer infor- ferred to in that paragraph, a violation of ‘‘(A) the amount of any actual damage sus- mation of a financial institution, knowing or this title shall be deemed to be a violation of tained by the financial institution or cus- consciously avoiding knowing that the per- a requirement imposed under that Act. In tomer as a result of such failure; or son will obtain, or attempt to obtain, the in- addition to its powers under any provision of ‘‘(B) any amount received by the person formation from the institution in any man- law specifically referred to in paragraph (1), who failed to comply with this title, includ- ner described in subsection (a). each of the agencies referred to in that para- ing an amount equal to the value of any non- ‘‘(c) NONAPPLICABILITY TO LAW ENFORCE- graph may exercise, for the purpose of en- monetary consideration, as a result of the MENT AGENCIES.—No provision of this section forcing compliance with this title, any other action which constitutes such failure. shall be construed so as to prevent any ac- authority conferred on such agency by law. ‘‘(2) ADDITIONAL DAMAGES.—Such addition by a law enforcement agency, or any of- ‘‘(c) STATE ACTION FOR VIOLATIONS.— tional amount as the court may allow. ficer, employee, or agent of such agency, to ‘‘(1) AUTHORITY OF STATES.—In addition to ‘‘(3) ATTORNEYS’ FEES.—In the case of any obtain customer information of a financial such other remedies as are provided under successful action to enforce any liability institution in connection with the perform- State law, if the chief law enforcement offi- under paragraph (1) or (2), the costs of the ance of the official duties of the agency. cer of a State, or an official or agency des- action, together with reasonable attorneys’ ‘‘(d) NONAPPLICABILITY TO FINANCIAL INSTI- ignated by a State, has reason to believe fees. TUTIONS IN CERTAIN CASES.—No provision of that any person has violated or is violating this section shall be construed to prevent ‘‘SEC. 1006. CRIMINAL PENALTY. this title, the State— any financial institution, or any officer, em- ‘‘(a) IN GENERAL.—Whoever violates, or at- ‘‘(A) may bring an action to enjoin such ployee, or agent of a financial institution, tempts to violate, section 1003 shall be fined from obtaining customer information of such violation in any appropriate United States in accordance with title 18, United States financial institution in the course of— district court or in any other court of com- Code, or imprisoned for not more than 5 ‘‘(1) testing the security procedures or sys- petent jurisdiction; years, or both. ‘‘(b) ENHANCED PENALTY FOR AGGRAVATED tems of such institution for maintaining the ‘‘(B) may bring an action on behalf of the CASES.—Whoever violates, or attempts to confidentiality of customer information; residents of the State to recover damages of violate, section 1003 while violating another ‘‘(2) investigating allegations of mis- not more than $1,000 for each violation; and law of the United States or as part of a pat- conduct or negligence on the part of any offi- ‘‘(C) in the case of any successful action tern of any illegal activity involving more cer, employee, or agent of the financial insti- under subparagraph (A) or (B), shall be than $100,000 in a 12-month period shall be tution; or awarded the costs of the action and reason- fined twice the amount provided in sub- ‘‘(3) recovering customer information of able attorney fees as determined by the section (b)(3) or (c)(3) (as the case may be) of the financial institution which was obtained court. section 3571 of title 18, United States Code, or received by another person in any manner ‘‘(2) RIGHTS OF FEDERAL REGULATORS.— imprisoned for not more than 10 years, or described in subsection (a) or (b). ‘‘(A) PRIOR NOTICE.—The State shall serve both. ‘‘(e) NONAPPLICABILITY TO CERTAIN TYPES prior written notice of any action under OF CUSTOMER INFORMATION OF FINANCIAL IN- paragraph (1) upon the Federal Trade Com- ‘‘SEC. 1007. RELATION TO STATE LAWS. STITUTIONS.—No provision of this section mission and, in the case of an action which ‘‘(a) IN GENERAL.—This title shall not be shall be construed to prevent any person involves a financial institution described in construed as superseding, altering, or affect- from obtaining customer information of a fi- section 1004(b)(1), the agency referred to in ing the statutes, regulations, orders, or in- nancial institution that otherwise is avail- such section with respect to such institution terpretations in effect in any State, except able as a public record filed pursuant to the and provide the Federal Trade Commission to the extent that such statutes, regulations, securities laws (as defined in section 3(a)(47) and any such agency with a copy of its com- orders, or interpretations are inconsistent of the Securities Exchange Act of 1934). plaint, except in any case in which such with the provisions of this title, and then ‘‘SEC. 1004. ADMINISTRATIVE ENFORCEMENT. prior notice is not feasible, in which case the only to the extent of the inconsistency. ‘‘(b) GREATER PROTECTION UNDER STATE ‘‘(a) ENFORCEMENT BY FEDERAL TRADE COM- State shall serve such notice immediately LAW.—For purposes of this section, a State MISSION.—Except as provided in subsection upon instituting such action. statute, regulation, order, or interpretation (b), compliance with this title shall be en- ‘‘(B) RIGHT TO INTERVENE.—The Federal is not inconsistent with the provisions of forced by the Federal Trade Commission in Trade Commission or an agency described in this title if the protection such statute, reg- the same manner and with the same power subsection (b) shall have the right— ulation, order, or interpretation affords any and authority as the Commission has under ‘‘(i) to intervene in an action under para- person is greater than the protection pro- the Fair Debt Collection Practices Act to en- graph (1); vided under this title. force compliance with that title. ‘‘(ii) upon so intervening, to be heard on all ‘‘(b) ENFORCEMENT BY OTHER AGENCIES IN matters arising therein; ‘‘SEC. 1008. AGENCY GUIDANCE. CERTAIN CASES.— ‘‘(iii) to remove the action to the appro- ‘‘In furtherance of the objectives of this ‘‘(1) IN GENERAL.—Compliance with this priate United States district court; and title, each Federal banking agency (as de- title shall be enforced under— ‘‘(iv) to file petitions for appeal. fined in section 3(z) of the Federal Deposit ‘‘(A) section 8 of the Federal Deposit Insur- ‘‘(3) INVESTIGATORY POWERS.—For purposes Insurance Act) shall issue advisories to de- ance Act, in the case of— of bringing any action under this subsection, pository institutions under the jurisdiction ‘‘(i) national banks, and Federal branches no provision of this subsection shall be con- of the agency, in order to assist such deposi- and Federal agencies of foreign banks, by the strued as preventing the chief law enforce- tory institutions in deterring and detecting Office of the Comptroller of the Currency; ment officer, or an official or agency des- activities proscribed under section 1003.’’. ‘‘(ii) member banks of the Federal Reserve ignated by a State, from exercising the pow- SEC. 502. REPORT TO CONGRESS ON FINANCIAL System (other than national banks), ers conferred on the chief law enforcement PRIVACY. branches and agencies of foreign banks officer or such official by the laws of such Not later than 18 months after the date of (other than Federal branches, Federal agen- State to conduct investigations or to admin- enactment of this Act, the Comptroller Gen- cies, and insured State branches of foreign ister oaths or affirmations or to compel the eral of the United States, in consultation banks), commercial lending companies attendance of witnesses or the production of with the Federal Trade Commission, the owned or controlled by foreign banks, and documentary and other evidence. Federal banking agencies, and other appro- organizations operating under section 25 or ‘‘(4) LIMITATION ON STATE ACTION WHILE priate Federal law enforcement agencies, 25A of the Federal Reserve Act, by the FEDERAL ACTION PENDING.—If the Federal shall submit to the Congress a report on— Board; Trade Commission or any agency described (1) the efficacy and adequacy of the rem- ‘‘(iii) banks insured by the Federal Deposit in subsection (b) has instituted a civil action edies provided in the amendments made by Insurance Corporation (other than members for a violation of this title, no State may, section 501 in addressing attempts to obtain of the Federal Reserve System and national during the pendency of such action, bring an financial information by fraudulent means nonmember banks) and insured State action under this section against any defend- or by false pretenses; and branches of foreign banks, by the Board of ant named in the complaint of the Federal (2) any recommendations for additional Directors of the Federal Deposit Insurance Trade Commission or such agency for any legislative or regulatory action to address Corporation; and violation of this title that is alleged in that threats to the privacy of financial informa- ‘‘(iv) savings associations the deposits of complaint. tion created by attempts to obtain informa- which are insured by the Federal Deposit In- ‘‘SEC. 1005. CIVIL LIABILITY. tion by fraudulent means or false pretenses. surance Corporation, by the Director of the ‘‘Any person, other than a financial insti- TITLE VI—MISCELLANEOUS Office of Thrift Supervision; and tution, who fails to comply with any provi- SEC. 601. GRAND JURY PROCEEDINGS. ‘‘(B) the Federal Credit Union Act, by the sion of this title with respect to any finan- Section 3322(b) of title 18, United States Administrator of the National Credit Union cial institution or any customer information Code, is amended— S4716 CONGRESSIONAL RECORD — SENATE May 4, 1999 (1) in paragraph (1), by inserting ‘‘Federal to exceed 2 years, in the aggregate) if the SEC. 605. SERVICE OF MEMBERS OF THE BOARD or State’’ before ‘‘financial institution’’; and Secretary determines that such extension is OF GOVERNORS OF THE FEDERAL (2) in paragraph (2), by inserting ‘‘at any in the public interest and is appropriate to RESERVE SYSTEM. time during or after the completion of the achieve an orderly reorganization of the As- Notwithstanding the first undesignated investigation of the grand jury,’’ before sociation or to prevent market disruptions paragraph of section 10 of the Federal Re- ‘‘upon’’. in connection with such reorganization; serve Act, the vice chairman of the Board of SEC. 602. SENSE OF THE COMMITTEE ON BANK- ‘‘(iii) the Association will not purchase or Governors of the Federal Reserve System ING, HOUSING, AND URBAN AFFAIRS extend credit to, or guarantee or provide may serve as a member of the District of Co- OF THE SENATE. credit enhancement to, any obligation of the lumbia Financial Responsibility and Man- (a) FINDINGS.—The Committee on Banking, depository institution; agement Assistance Authority established Housing, and Urban Affairs of the Senate by section 101 of the District of Columbia Fi- ‘‘(iv) the operations of the Association will finds that— nancial Responsibility and Management As- be separate from the operations of the depos- (1) financial modernization legislation sistance Act of 1995. itory institution; and should benefit small institutions as well as ‘‘(v) until the dissolution date (as that SEC. 606. PROVISION OF TECHNICAL ASSISTANCE large institutions; TO MICROENTERPRISES. term is defined in section 440(i)(2) of the (2) the Congress made the subchapter S (a) IN GENERAL.—Title I of the Riegle Com- Higher Education Act of 1965) has occurred, election of the Internal Revenue Code of 1986, munity Development and Regulatory Im- such depository institution will not use the available to banks in 1996, reflecting a desire provement Act of 1994 (12 U.S.C. 4701 et seq.) trade name or service mark ‘Sallie Mae’ in by the Congress to reduce the tax burden on is amended by adding at the end the fol- connection with any product or service it of- community banks; lowing new subtitle: (3) large numbers of community banks fers, if the appropriate Federal banking agency for the depository institution deter- ‘‘Subtitle C—Microenterprise Technical have elected or expressed interest in the sub- Assistance and Capacity Building Program chapter S election; and mines that— (4) the Committee on Banking, Housing, ‘‘(I) the depository institution is the only ‘‘SEC. 171. SHORT TITLE. and Urban Affairs of the Senate recognizes institution offering such product or service ‘‘This subtitle may be cited as the ‘Pro- that some obstacles remain for community using the Sallie Mae name; and gram for Investment in Microentrepreneurs banks wishing to make the subchapter S ‘‘(II) the use of such name would result in Act of 1999’, also referred to as the ‘PRIME election. the depository institution having an unfair Act’. (b) SENSE OF THE COMMITTEE.—It is the competitive advantage over other depository ‘‘SEC. 172. DEFINITIONS. sense of the Committee on Banking, Hous- institutions. ‘‘For purposes of this subtitle— ing, and Urban Affairs of the Senate that— ‘‘(B) TERMS AND CONDITIONS.—In approving ‘‘(1) the term ‘Administrator’ has the same (1) the small business tax provisions of the any arrangement referred to in subparagraph meaning as in section 103; Internal Revenue Code of 1986, should be (A), the Secretary may impose any terms ‘‘(2) the term ‘capacity building services’ more widely available to community banks; and conditions on the arrangement that the means services provided to an organization (2) legislation should be passed to amend Secretary considers appropriate, including— that is, or is in the process of becoming a the Internal Revenue Code of 1986, to— ‘‘(i) imposing additional restrictions on the microenterprise development organization or (A) increase the allowed number of S cor- issuance of debt obligations by the Associa- program, for the purpose of enhancing its poration shareholders; tion; or ability to provide training and services to (B) permit S corporation stock to be held ‘‘(ii) restricting the use of proceeds from disadvantaged entrepreneurs; in individual retirement accounts; the issuance of such debt. ‘‘(3) the term ‘collaborative’ means 2 or (C) clarify that interest on investments ‘‘(C) ADDITIONAL LIMITATIONS.—In the event more nonprofit entities that agree to act held for safety, soundness, and liquidity pur- that the Holding Company (or any subsidiary jointly as a qualified organization under this poses should not be considered to be passive of the Holding Company) enters into such an subtitle; income; arrangement, the value of the investment ‘‘(4) the term ‘disadvantaged entrepreneur’ (D) provide that bank director stock is not portfolio of the Association shall not at any means a microentrepreneur that is— treated as a disqualifying second class of time exceed the lesser of— ‘‘(A) a low-income person; stock for S corporations; and ‘‘(i) the value of such portfolio on the date ‘‘(B) a very low-income person; or (E) improve the tax treatment of bad debt of enactment of the Financial Services Act ‘‘(C) an entrepreneur that lacks adequate and interest deductions; and of 1999; or access to capital or other resources essential (3) the legislation described in paragraph ‘‘(ii) the value of such portfolio on the date for business success, or is economically dis- (2) should be adopted by the Congress in con- on which such an arrangement is con- advantaged, as determined by the Adminis- junction with any financial modernization summated. trator; ‘‘(5) the term ‘Fund’ has the same meaning legislation. ‘‘(D) ENFORCEMENT.—The terms and condi- SEC. 603. INVESTMENTS IN GOVERNMENT SPON- tions imposed under subparagraph (B) may as in section 103; SORED ENTERPRISES. be enforced by the Secretary in accordance ‘‘(6) the term ‘Indian tribe’ has the same Section 18(s) of the Federal Deposit Insur- with section 440 of the Higher Education Act meaning as in section 103; ance Act (12 U.S.C. 1828(s)) is amended— of 1965. ‘‘(7) the term ‘intermediary’ means a pri- (1) by redesignating paragraph (4) as para- vate, nonprofit entity that seeks to serve ‘‘(E) DEFINITIONS.—For purposes of this graph (6); and microenterprise development organizations paragraph, the following definition shall (2) by inserting after paragraph (3) the fol- and programs as authorized under section apply: lowing: 175; ‘‘(i) ASSOCIATION; HOLDING COMPANY.—Not- ‘‘(4) CERTAIN INVESTMENTS.—Paragraph (1) ‘‘(8) the term ‘low-income person’ has the withstanding any provision in section 3, the shall not apply with respect to investments same meaning as in section 103; terms ‘Association’ and ‘Holding Company’ lawfully made before April 11, 1996, by a de- ‘‘(9) the term ‘microentrepreneur’ means have the same meanings as in section 440(i) pository institution in any Government the owner or developer of a microenterprise; of the Higher Education Act of 1965. sponsored enterprise. ‘‘(10) the term ‘microenterprise’ means a ‘‘(ii) INVESTMENT PORTFOLIO.—The term ‘in- ‘‘(5) STUDENT LOANS.— sole proprietorship, partnership, or corpora- vestment portfolio’ means all investments ‘‘(A) IN GENERAL.—This subsection does not tion that— apply to any arrangement between a Holding shown on the consolidated balance sheet of ‘‘(A) has fewer than 5 employees; and Company (or any subsidiary of the Holding the Association, other than— ‘‘(B) generally lacks access to conventional Company other than the Student Loan Mar- ‘‘(I) any instruments or assets described in loans, equity, or other banking services; keting Association, hereafter in this para- section 439(d) of the Higher Education Act of ‘‘(11) the term ‘microenterprise develop- graph referred to as the ‘Association’) and a 1965 (20 U.S.C. 1087–2(d)); ment organization or program’ means a nondepository institution, if the Secretary ap- ‘‘(II) any direct non-callable obligations of profit entity, or a program administered by proves the affiliation and determines that— the United States, or any agency thereof, for such an entity, including community devel- ‘‘(i) the reorganization of the Association which the full faith and credit of the United opment corporations or other nonprofit de- in accordance with section 440 of the Higher States is pledged; or velopment organizations and social service Education Act of 1965 (20 U.S.C. 1087–3), will ‘‘(III) cash or cash equivalents. organizations, that provides services to dis- not be adversely affected by the arrange- ‘‘(iii) SECRETARY.—The term ‘Secretary’ advantaged entrepreneurs or prospective en- ment; means the Secretary of the Treasury.’’. trepreneurs; ‘‘(ii) the dissolution of the Association pur- SEC. 604. REPEAL OF SAVINGS BANK PROVISIONS ‘‘(12) the term ‘training and technical as- suant to such reorganization will occur be- IN THE BANK HOLDING COMPANY sistance’ means services and support pro- fore the end of the 2-year period beginning ACT OF 1956. vided to disadvantaged entrepreneurs or pro- on the date on which such arrangement is Section 3(f) of the Bank Holding Company spective entrepreneurs, such as assistance consummated, or on such earlier date as the for the purpose of enhancing business plan- Act of 1956 (12 U.S.C. 1842(f)) is amended to Secretary determines to be appropriate, ex- ning, marketing, management, financial cept that the Secretary may extend such pe- read as follows: management skills, and assistance for the riod for not more than 1 year at a time (not ‘‘(f) [Reserved].’’. purpose of accessing financial services; and May 4, 1999 CONGRESSIONAL RECORD — SENATE S4717 ‘‘(13) the term ‘very low-income person’ subtitle may be used for administrative ex- (2) in paragraph (4), in the first sentence, means having an income, adjusted for family penses in connection with the making of sub- by inserting before the period ‘‘and subtitle size, of not more than 150 percent of the pov- grants under paragraph (1). C’’. erty line (as defined in section 673(2) of the ‘‘(d) DIVERSITY.—In making grants under Community Services Block Grant Act (42 this subtitle, the Administrator shall ensure f U.S.C. 9902(2), including any revision re- that grant recipients include both large and quired by that section). small microenterprise organizations, serving NOTICES OF HEARINGS ‘‘SEC. 173. ESTABLISHMENT OF PROGRAM. urban, rural, and Indian tribal communities COMMITTEE ON HEALTH, EDUCATION, LABOR, ‘‘The Administrator shall establish a and racially and ethnically diverse popu- AND PENSIONS microenterprise technical assistance and ca- lations. Mr. JEFFORDS. Mr. President, I pacity building grant program to provide as- ‘‘SEC. 177. MATCHING REQUIREMENTS. would like to announce for information sistance from the Fund in the form of grants ‘‘(a) IN GENERAL.—Financial assistance of the Senate and the public that a to qualified organizations in accordance with under this subtitle shall be matched with this subtitle. funds from sources other than the Federal hearing of the Senate Committee on ‘‘SEC. 174. USES OF ASSISTANCE. Government on the basis of not less than 50 Health, Education, Labor, and Pen- ‘‘A qualified organization shall use grants percent of each dollar provided by the Fund. sions will be held on Thursday, May 6, made under this subtitle— ‘‘(b) SOURCES OF MATCHING FUNDS.—Fees, 1999, 10 a.m., in SD–628 of the Senate ‘‘(1) to provide training and technical as- grants, gifts, funds from loan sources, and Dirksen Building. The subject of the sistance to disadvantaged entrepreneurs; in-kind resources of a grant recipient from hearing is ‘‘ESEA: Safe Schools.’’ For ‘‘(2) to provide training and capacity build- public or private sources may be used to further information, please call the ing services to microenterprise development comply with the matching requirement in committee, 202/224–5375. organizations and programs and groups of subsection (a). such organizations to assist such organiza- ‘‘(c) EXCEPTION.— COMMITTEE ON ENERGY AND NATURAL tions and programs in developing micro- ‘‘(1) IN GENERAL.—In the case of an appli- RESOURCES enterprise training and services; cant for assistance under this subtitle with Mr. MURKOWSKI. Mr. President, I ‘‘(3) to aid in researching and developing severe constraints on available sources of would like to announce for the infor- the best practices in the field of microenter- matching funds, the Administrator may re- mation of the Senate and the public prise and technical assistance programs for duce or eliminate the matching require- that a hearing has been scheduled be- disadvantaged entrepreneurs; and ments of subsection (a). fore the Committee on Energy and Nat- ‘‘(4) for such other activities as the Admin- ‘‘(2) LIMITATION.—Not more than 10 percent istrator determines are consistent with the of the total funds made available from the ural Resources. purposes of this subtitle. Fund in any fiscal year to carry out this sub- The hearing will take place on Tues- ‘‘SEC. 175. QUALIFIED ORGANIZATIONS. title may be excepted from the matching re- day, May 11, 1999 and will commence at ‘‘For purposes of eligibility for assistance quirements of subsection (a), as authorized 9:30 a.m. in room SD–366 of the Dirksen under this subtitle, a qualified organization by paragraph (1) of this subsection. Senate Office Building in Washington, shall be— ‘‘SEC. 178. APPLICATIONS FOR ASSISTANCE. DC. ‘‘(1) a nonprofit microenterprise develop- ‘‘An application for assistance under this The purpose of the hearing is to re- ment organization or program (or a group or subtitle shall be submitted in such form and ceive testimony on S. 25, the Conserva- collaborative thereof) that has a dem- in accordance with such procedures as the tion and Reinvestment Act of 1999; S. onstrated record of delivering microenter- Fund shall establish. 446, the Resources 2000 Act; S. 532, the prise services to disadvantaged entre- ‘‘SEC. 179. RECORDKEEPING. preneurs; Public Land and Recreation Invest- ‘‘The requirements of section 115 shall ment Act of 1999; S. 819, the National ‘‘(2) an intermediary; apply to a qualified organization receiving ‘‘(3) a microenterprise development organi- assistance from the Fund under this subtitle Park Preservation Act and the Admin- zation or program that is accountable to a as if it were a community development fi- istration’s Lands Legacy proposal. The local community, working in conjunction nancial institution receiving assistance from hearing also will examine the role of with a State or local government or Indian the Fund under subtitle A. the Council on Environmental Quality tribe; or in the decision-making and manage- ‘‘(4) an Indian tribe acting on its own, if ‘‘SEC. 180. AUTHORIZATION. the Indian tribe can certify that no private ‘‘In addition to funds otherwise authorized ment processes of agencies under the organization or program referred to in this to be appropriated to the Fund to carry out Committee’s jurisdiction—Department paragraph exists within its jurisdiction. this title, there are authorized to be appro- of the Interior, Department of Energy, priated to the Fund to carry out this ‘‘SEC. 176. ALLOCATION OF ASSISTANCE; SUB- and the U.S. Forest Service. subtitle— GRANTS. Because of the limited time available ‘‘(1) $15,000,000 for fiscal year 2000; ‘‘(a) ALLOCATION OF ASSISTANCE.— ‘‘(2) $25,000,000 for fiscal year 2001; for each hearing, witnesses may testify ‘‘(1) IN GENERAL.—The Administrator shall ‘‘(3) $30,000,000 for fiscal year 2002; and by invitation only. However, those allocate assistance from the Fund under this wishing to submit written testimony subtitle to ensure that— ‘‘(4) $35,000,000 for fiscal year 2003. ‘‘(A) activities described in section 174(1) ‘‘SEC. 181. IMPLEMENTATION. for the hearing record should send two are funded using not less than 75 percent of ‘‘The Administrator shall, by regulation, copies of their testimony to the Com- amounts made available for such assistance; establish such requirements as may be nec- mittee on Energy and Natural Re- and essary to carry out this subtitle.’’. sources, United States Senate, 364 ‘‘(B) activities described in section 174(2) (b) ADMINISTRATIVE EXPENSES.—Section Dirksen Senate Office Building, Wash- are funded using not less than 15 percent of 121(a)(2)(A) of the Riegle Community Devel- ington, DC 20510–6150. amounts made available for such assistance. opment and Regulatory Improvement Act of For further information, please con- 1994 (12 U.S.C. 4718(a)(2)(A)) is amended— ‘‘(2) LIMIT ON INDIVIDUAL ASSISTANCE.—No tact Kelly Johnson at (202) 224–4971. single organization or entity may receive (1) by striking ‘‘$5,550,000’’ and inserting more than 10 percent of the total funds ap- ‘‘$6,100,000’’; and COMMITTEE ON ENERGY AND NATURAL propriated under this subtitle in a single fis- (2) in the first sentence, by inserting before RESOURCES cal year. the period ‘‘, including costs and expenses as- Mr. MURKOWSKI. Mr. President, I ‘‘(b) TARGETED ASSISTANCE.—The Adminis- sociated with carrying out subtitle C’’. would like to announce that on Tues- trator shall ensure that not less than 50 per- (c) CONFORMING AMENDMENTS.—Section day, May 25, 1999, the Committee on cent of the grants made under this subtitle 104(d) of the Riegle Community Development Energy and Natural Resources will are used to benefit very low-income persons, and Regulatory Improvement Act of 1994 (12 including those residing on Indian reserva- U.S.C. 4703(d)) is amended— hold an oversight hearing on State tions. (1) in paragraph (2)— Progress in Retail Electricity Competi- ‘‘(c) SUBGRANTS AUTHORIZED.— (A) by striking ‘‘15’’ and inserting ‘‘17’’; tion. The hearing will be held at 9:30 ‘‘(1) IN GENERAL.—A qualified organization and a.m. in room 366 of the Dirksen Senate receiving assistance under this subtitle may (B) in subparagraph (G)— Office Building in Washington, D.C. provide grants using that assistance to (i) by striking ‘‘9’’ and inserting ‘‘11’’; Those who wish to testify or submit qualified small and emerging microenter- (ii) by redesignating clauses (iv) and (v) as a written statement should write to prise organizations and programs, subject to clauses (v) and (vi), respectively; and the Committee on Energy and Natural such rules and regulations as the Adminis- (iii) by inserting after clause (iii) the fol- trator determines to be appropriate. lowing: Resources, U.S. Senate, Washington, ‘‘(2) LIMIT ON ADMINISTRATIVE EXPENSES.— ‘‘(iv) 2 individuals who have expertise in D.C. 20510. For further information, Not more than 7.5 percent of assistance re- microenterprises and microenterprise devel- please call Julia McCaul at (202) 224– ceived by a qualified organization under this opment;’’; and 6567. S4718 CONGRESSIONAL RECORD — SENATE May 4, 1999 SUBCOMMITTEE ON NATIONAL PARKS, HISTORIC Senate on Tuesday, May 4, 1999 at 10 ver Broncos acquired John Elway from, PRESERVATION, AND RECREATION a.m. to hold a hearing. the then Baltimore Colts in return for Mr. THOMAS. Mr. President, I would The PRESIDING OFFICER. Without offensive lineman Chris Hinton, quar- like to announce for the information of objection, it is so ordered. terback Mark Herrman, and the Bron- the Senate and the public that an over- COMMITTEE ON INDIAN AFFAIRS cos’ first round draft pick in the 1984 sight hearing has been scheduled before Mr. GRAMM. Mr. President, I ask draft. That day will go down as argu- the Subcommittee on National Parks, unanimous consent that the Senate ably the best day in Broncos’ history, Historic Preservation, and Recreation Committee on Indian Affairs be author- and one of the best in football history. of the Committee on Energy and Nat- ized to meet during the session of the I had the pleasure on January 27, 1998 ural Resources. The purpose of this Senate on Tuesday, May 4, 1999 at 9:30 hearing is to review the Youth Con- of addressing my colleagues on the a.m. to conduct an Oversight Hearing Senate floor regarding the accomplish- servation Corps and other job programs on Census 2000, Implementation in In- conducted by the National Park Serv- ments of one of the best quarterbacks dian Country. The Hearing will be held in the history of the NFL, John Elway, ice, Bureau of Land Management, For- in room 485 of the Russell Senate Office est Service, and the U.S. Fish and with Senate Resolution 167. On Feb- Building. ruary 3, 1999, I again had the honor of Wildlife Service. The PRESIDING OFFICER. Without calling to my colleagues’ attention the The hearing will take place on objection, it is so ordered. outstanding accomplishments of the Wednesday, May 19, 1999 at 2:00 p.m. in SUBCOMMITTEE ON ADMINISTRATIVE OVERSIGHT room SD–366 of the Dirksen Senate Of- Denver Broncos and John Elway for AND THE COURTS capturing another Super Bowl victory. fice Building in Washington, DC. Mr. GRAMM. Mr. President, I ask Today I have the distinct honor of con- Because of the limited time available unanimous consent that the Sub- gratulating John Elway for a remark- for the hearing, witnesses may testify committee on Administrative Over- able career and would like to thank by invitation only. However, those sight and the Courts, of the Senate Ju- him for all he contributed to Colorado wishing to submit written testimony diciary Committee, be authorized to and to our nation. for the hearing record should send two meet during the session of the Senate copies of their testimony to the Com- on Tuesday, May 4, 1999 at 2:00 p.m. to Mr. President, John Elway’s career mittee on Energy and Natural Re- hold a hearing in room 226, Senate has been packed with astonishing sta- sources, United States Senate, SD–364 Dirksen Building, on ‘‘S. 353, the Class tistics; 148 victories, the NFL record Dirksen Senate Office Building, Wash- Action Fairness Act of 1999.’’ for a quarterback; nine Pro Bowl selec- ington, DC 20510–6150. The PRESIDING OFFICER. Without tions; 5 Super Bowl starts, another For further information, please con- objection, it is so ordered. NFL record; two Super bowl Champion- tact Jim O’Toole or Shawn Taylor of SUBCOMMITTEE ON ANTITRUST, BUSINESS ships; 300 career touchdown passes; the committee staff at (202) 224–6969. RIGHTS, AND COMPETITION over 50,000 passing yards; Super Bowl f Mr. GRAMM. Mr. President, I ask XXXIII’s Most Valuable Player; the AUTHORITY FOR COMMITTEES TO unanimous consent that the Sub- NFL’s Most Valuable Player in 1987; MEET committee on Antitrust, Business the American Football Conference’s Rights, and Competition, of the Senate Most Valuable Player in 1993; and 47 COMMITTEE ON COMMERCE, SCIENCE, AND Judiciary Committee, be authorized to fourth-quarter comebacks, to name TRANSPORTATION hold a hearing during the session of the just a few of the many highlights of a Mr. GRAMM. Mr. President, I ask Senate on Tuesday, May 4, 1999 at 10 stellar career. unanimous consent that the Com- a.m. in room 226 of the Senate Dirksen mittee on Commerce, Science, and John Elway’s leadership and dedica- Office Building, on: ‘‘S. 467, the Anti- Transportation be allowed to meet on tion to excellence have benefitted the trust Merger Review Act: Accelerating Tuesday, May 4, 1999, at 9:30 a.m. on TV Broncos, the city of Denver, the state FCC Review of Mergers.’’ violence. of Colorado, and America. John Elway, The PRESIDING OFFICER. Without The PRESIDING OFFICER. Without your place in Canton, Ohio in the Pro objection, it is so ordered. objection, it is so ordered. Football Hall of Fame awaits. SUBCOMMITTEE ON INTERNATIONAL TRADE COMMITTEE ON ENERGY AND NATURAL I thank the Chair and yield the Mr. GRAMM. Mr. President, I ask RESOURCES floor.∑ Mr. GRAMM. Mr. President, I ask unanimous consent that the Sub- unanimous consent that the Com- committee on International Trade and f mittee on Energy and Natural Re- Finance of the Committee on Banking, Housing, and Urban Affairs be author- sources be granted permission to meet TRIBUTE TO JOHN ELWAY during the session of the Senate on ized to meet during the session on the Tuesday, May 4, for purposes of con- Senate on Tuesday, May 4, 1999, to con- ∑ Mr. ALLARD. Mr. President, on May ducting a full committee hearing duct a hearing on ‘‘Effects of Inter- 2, 1999, John Elway retired concluding which is scheduled to begin at 9:30 a.m. national Institutions on U.S. Agricul- one of the most remarkable sports ca- The purposes of this hearing is to re- tural Exports.’’ reers ever. After sixteen National Foot- ceive testimony on S. 25, the Conserva- The PRESIDING OFFICER. Without ball League seasons, exactly sixteen tion and Reinvestment Act of 1000; S. objection, it is so ordered. years to the day after he was traded to 446, the Resources 2000 Act; S. 532, the f the Denver Broncos by the Baltimore Public Land and Recreation Invest- ADDITIONAL STATEMENTS Colts, the Magnificent Number 7 bid ment Act of 1999; S. 819, the National farewell to the team he has led to five Park Preservation Act; and the Admin- Super Bowls and two consecutive world istration’s Lands Legacy proposal. TRIBUTE TO JOHN ELWAY championships. The PRESIDING OFFICER. Without ∑ Mr. CAMPBELL. Mr. President, on John Elway has been among the most objection, it is so ordered. Sunday, May 2nd, John Elway, who for prolific quarterbacks ever. He is the COMMITTEE ON FINANCE 16 seasons has been the uncontested all-time winningest quarterback with Mr. GRAMM. Mr. President, the Fi- leader of the Denver Broncos and a val- 148 wins as a starter. In 46 of those wins nance Committee requests unanimous uable civic leader and mentor for Elway engineered game winning fourth consent to conduct a hearing on Tues- young Americans, officially announced quarter drives. He stands second in all- day, May 4, 1999 beginning at 10:00 a.m. his retirement from the NFL. He will time passing yards and third all-time in room 215 Dirksen. be sorely missed. From extraordinary in touchdown passes. He has been elect- The PRESIDING OFFICER. Without moments like ‘‘The Drive’’ in the 1986 ed to nine Pro Bowls, starting in eight objection, it is so ordered. AFC Championship Game to countless of them. He is the only quarterback to COMMITTEE ON FOREIGN RELATIONS other picturesque instances, all we ever throw for 3,000 yards and rush for Mr. GRAMM. Mr. President, I ask have are the many memories now. How 200 in 7 consecutive seasons. Elway unanimous consent that the Com- do you replace a legend? You can’t. started in a record 5 Super Bowls, and mittee on Foreign Relations be author- Exactly 16 years from the date of his last year was elected MVP of the game. ized to meet during the session of the announcement—May 2, 1983—the Den- In addition to his peerless offensive May 4, 1999 CONGRESSIONAL RECORD — SENATE S4719 production John Elway has been the ability to transfer dreams into reality. enterprise provides marketing and sales in- model of leadership and consistency In order that others may celebrate this formation, computer support and state-of- both on and off the field. wonderful and well-deserved award and the-art, easily accessible training for its On the field Elway missed only 15 perhaps be inspired each day to realize IMDs. When asked what makes Nationwide games in 16 years due to illness or in- different from other network marketers, the American dream, Mr. President, I Case, breaking into a wide grin, responds, jury. This toughness is amazing consid- ask you to join me and our colleagues ‘‘Our IMDS don’t have to buy or keep any in- ering that in 256 career games he was in saluting the many successes of Bill ventory. There’s no quota of any kind, no sacked an NFL record 559 times. Case and the Nationwide Companies. I penalties, no competition and no levels of Former Broncos coach Dan Reeves says ask that the Money Maker’s monthly unpaid production.’’ Case adds that that it is Elway’s mental toughness article be printed in the RECORD. Nationwide’s system ‘‘pays to infinity.’’ that has allowed this consistency. Cur- The article follows: ‘‘You get paid what you are worth with Na- rent coach Mike Shanahan cites tionwide, and you only have to make two THE NATIONWIDE MIRACLE—ONE MAN’S VISION sales each year. We believe that our IMDs Elway’s competitive hunger and his PRODUCES UNIQUE NETWORK MARKETING BIZ confidence. What is clear at the end of should earn good money without unneces- Bill Case dreamed for many years of a busi- sary difficulty,’’ he says. sixteen years is that Elway’s combined ness where people could enjoy financial free- Case describes Nationwide’s management physical gifts and the mettle of his dom. He already knew that network mar- as ‘‘hands-on.’’ ‘‘We have a National Sales character have made him an American keting was the wave of the future, but con- Training Coordinator for Nationwide who icon. cluded that the industry had complications has created the lion’s share of the effective Off the field Elway has worked tire- that disillusioned many able and talented marketing tools used in the company’s train- lessly for numerous Colorado charities, people. He wanted to find the simplest way ing program. Lynda is a crown jewel,’’ says and his John Elway Foundation has that a home-based entrepreneur could earn Hendryx. ‘‘Her training expertise gives our generated more than a million dollars impressively through network marketing IMDS the head start they need in earning without spending hard-earned money on in contributions since its inception. good, solid money as quickly as possible.’’ things like inventory and also avoid obsta- One of the key players on Nationwide’s The stability and commitment of the cles like unproductive downlines. In other team is Dick Loehr, president of Loehr’s Elway Foundation insures that it will words, could you build a business where fi- Auto Consultants in Ft. Lauderdale, Fla., continue to make Colorado a better nancial freedom was obtainable through who operates the benefits company for Na- place for years to come. good, honest work? tionwide. Loehr, who once owned nine auto- In an age when so many celebrities After carefully researching other network mobile franchises, ranging from Porsche to shrink under the intensity of the spot- marketing companies and interviewing a Chrysler, has vast experience in the national light John Elway has carried himself cross-section of successful networking entre- automobile marketplace. A prote´ge´ of Lee with class and dignity. It is hard to de- preneurs throughout the country, Case found Iococca (Loehr was an advisor to Iococca at the answer. The result became The Nation- Chrysler and still wears the lapel pin award fine what John Elway means to Colo- wide Companies, his seven-year-old business rado, but it is clear to me that he is given for his service to Iococca and Chrys- that is viewed by many observers as a mir- ler), Loehr is a virtual encyclopedia of more than just a football player. He is acle in the network marketplace. knowledge of the automobile industry, in- more than just a superstar. He is a fig- ‘‘Instead of selling marked-up merchan- cluding the complicated areas of financing ure that stands for something good, dise, we sell a benefits package which gives and leasing. Nationwide recently produced a something strong and dedicated. John the owner the right to purchase popular video interview with Loehr, which is a res- Elway is the athlete you don’t mind items like cars, boats, furniture and health ervoir of vital information that any con- being a role model. It makes you feel insurance with the same group buying power sumer would need to know before buying or good to see his jersey on a kid playing and low prices enjoyed by Fortune 500 Com- leasing an automobile. panies.’’ Case emphasizes that the Nation- in the park. I believe that says far Loehr’s joining Nationwide meant coming wide Benefits Package is ‘‘a hot item be- out of retirement. ‘‘When I heard about Na- more than any statistic. cause of value in savings.’’ Case says his net- tionwide, I did my own investigation and I know that the people of Colorado work marketing business, which is knew this company was a winner,’’ says join me in wishing John Elway and his headquartered in Atlanta, is revolutionizing Loehr. With Loehr’s auto industry skills, Na- family the very best.∑ the way the American public earns and saves tionwide continues to be able to make pop- f money. Skeptics are few and far between as ular items like automobiles available to its Case and his company gladly showcase a associates through the same group buying SALUTE TO THE NATIONWIDE growing number of success stories from Cali- power enjoyed by Fortune 500 companies. COMPANIES fornia to Florida who are earning six-figure Also, Loehr’s heralded experience in the car ∑ Mr. CLELAND. Mr. President, I rise incomes. Nationwide networkers called Inde- market is invaluable to Nationwide. ‘‘I un- today to recognize an exeptional com- pendent Marketing Directors (IMDs), pub- derstand pricing of automobiles and trucks, pany based in Atlanta, GA. The Nation- licly and rather proudly state that they are and financing and leasing is almost second- enjoying genuine financial freedom as asso- hand to me,’’ says Loehr, who is not brag- wide Companies proudly established its ciates of Case’s ‘‘Team Nationwide.’’ ging, but stating fact. national headquarters in Atlanta just 7 With evangelical drive, Case welcomes ev- One of the most recent benefits available years ago, and through the progressive, eryone to visit under the umbrella of The to Nationwide associates is the availability dynamic leadership of its founder and Nationwide Companies. ‘‘We are truly one of of Program cars, which became possible president, Bill Case, it has succeeded in a kind among network marketing compa- through Loehr’s esoteric knowledge of the the marketplace from coast to coast. nies,’’ observes Case. ‘‘We have a quality automobile industry. Loehr says this makes Success earns recognition, and product that stands on its own in the mar- the Benefits Package even more valuable. ‘‘A Money Maker’s Monthly, the pres- ketplace because it allows purchasers to ob- Program car is a recent model, low mileage tigious business journal, recently tain items of genuine value.’’ He emphasizes auto in top shape from a fleet program which that the Nationwide Benefits Package can be awarded this ever-growing company we obtain for sale or lease. These are incred- purchased by anyone. It is a retail item in ible bargains available to anyone owning the the distinction as ‘‘The Company of the the truest sense of the word. The Benefits Nationwide Benefits Package.’’ Month’’ in the United States. The Package allows the owner, according to TRIBUTES FROM THE TRENCHES front-page feature, appropriately ti- Case, to buy or lease cars, trucks, RVs, Case describes his national network of tled, ‘‘The Nationwide Miracle,’’ me- boats, along with furniture, eye care, health IMD’s as ‘‘my field generals.’’ ‘‘I’m proud of insurance, and even exotic vacations. ‘‘Our ticulously describes the amazing the quality and high character of every one,’’ Benefits Package saves consumers substan- progress of Nationwide, and applauds he says. Robert and Donna Fason of Mount tial amounts of good, hard dollars. The bene- the company’s founder and president Vernon, Ark., are Nationwide’s National fits are from recognizable Fortune 500 com- Bill Case for his leadership and unques- Sales Directors who earned their lofty title panies like ‘‘the big three’’ automakers, Gen- through impressive success. ‘‘Every day is a tioned integrity. Perhaps the best de- eral Electric, United Parcel Service, Hertz vacation to us,’’ says Robert, adding, ‘‘We scription of Nationwide as a uniquely and LensCrafters, just to name a few,’’ says are making more money than ever and our American business is the conclusion in Case, adding that the Package is ‘‘one of the IMD’s are truly excited about even greater the feature that Bill Case and his combest bargains in the country!’’ earnings as we work together for financial pany are ‘‘revolutionizing the way the WITHOUT BURDENS freedom.’’ American public earns and saves Like other network marketing businesses, Two key Team Nationwide Associates, money.’’ Nationwide operates through its IMDs from says Case are Ruby and Ray Riedel of The Money Maker’s Monthly feature Hawaii to New York. From the company’s Yakima, Wash. Both are successful veteran is a tribute to a man’s vision and the Atlanta headquarters, Case’s fast-growing network marketers who left one of the big S4720 CONGRESSIONAL RECORD — SENATE May 4, 1999 names in the industry for nationwide. Their the successes of its IMDs. Many companies, like Hendryx, Loehr and Davis are driven to- story is a fascinating, personal endorsement for whatever reason, are reluctant to dis- ward their goal of financial freedom for ev- of Case’s network business dream. ‘‘Unlike close individuals with verifiable earnings, eryone who is willing to work for it. Every our previous company, we now have abso- but not Nationwide ‘‘We want people who are bit of evidence, out in the national field and lutely no inventory, monthly quotas or pen- looking for the best earnings opportunity in within their own business data in Atlanta, alties,’’ stated Ruby Riedel, ‘‘How refreshing America today to contact our folks and ask indicates that they must be taken seriously. to be part of a genuine network company and them questions,’’ Case says. ‘‘They are going Nationwide is on solid ground in the pre- to be free of all overhead, competition and to hear revelations from our people whose carious mine field we call the marketplace. no levels of unpaid production!’’ In place of lives have been transformed because of the Leadership, from Bill Case on down through these obstacles, Ruby says that IMD’s now Nationwide miracle. And, I might add, I am the chain of command, is top-notch. The de- have ‘‘value with rewards,’’ ‘‘We and all oth- talking about genuinely impressive earn- termination to grow and expand, based upon ers are paid what we’re worth without limi- ings.’’ time-honored business methods, is evidenced tations, under an amazing income system Joyce Ross, along with her husband dramatically by its affiliation with Superior that pays to infinity.’’ She hastens to add Marvin, is a Nationwide Regional Director in Bank. The respected financial institution that Nationwide’s regular training program Malden, MO. She revealed an upward trans- provides consumer loans and mortgages as deserves accolades. ‘‘The intensive and effec- formation in income during her first year one of Nationwide’s benefits. Standing on its tive support given to every IMD by people with Nationwide. ‘‘For 26 years, we owned a own, this banking relationship is a network like Jack Hendryx and Lynda Davis keeps all combination barber and beauty shop in a industry original but merits applause. of us going upward with our earnings. This lovely small town, but worked ourselves Case lives his dream everyday, only now training may be the very best in the network nearly to death with an accumulation of it’s real for others as well. His IMDs are marketing industry.’’ bills and not enough money for the work we earning handsomely through the Nationwide Perhaps no higher praise for Nationwide were doing. Then came Nationwide,’’ says miracle because Case has blended the magic has been given than the observation of inter- Joyce. ‘‘It would have taken me ten years to business ingredients of planning, managing, nationally respected and widely read author earn as a hairdresser what I have earned and training with honesty and integrity, and Alfred Huang. A Maui, Hawaii resident and with Nationwide in less than two years.’’ combined it with a valuable, unprecedented Nationwide IMD, Huang says he became an Similarly, Don Garrison of Lampe, MO dis- Benefits Package. associate of Case’s team not solely because closes that he earned over $300,000 in the first Case and his team are telling America that of its proven earnings and savings, but par- year. ‘‘This is the only way I want to live a dream becomes a reality through hard ticularly because the system ‘‘helps people and work, as a free American citizen!’’ David work. The road to financial freedom took to live a better life.’’ ‘‘The true spirit and Hervey mirrors Garrison’s success by reveal- some effort to locate, but they found it and value of Nationwide is caring of people.’’ ing that he, too, earned beyond $300,000 dur- have it available today. It’s a very rewarding Huang is a best-selling author whose next ing the past year as an associate of Team journey.∑ Nationwide. Hervey, it should be added, is a book, ‘‘The Century of the Dragon—Creating f Your Success and Prosperity in the Next Nationwide Regional Director in Jackson, Century,’’ is due for publication later this Miss. Lamar Adams, a Regional Director in TRIBUTE TO THE REVEREND Madison, Miss., earned over $10,000, he says year. He is convinced that network mar- MONSIGNOR R. DONALD KIERNAN keting will soon be the mainstream solution ‘‘. . . in just my first six months as a Nation- for financial wellness. wide IMD!’’ ∑ Mr.COVERDELL. Mr. President, I ‘‘Nationwide,’’ Huang says, ‘‘is the best Jack Hendryx, speaking from Nationwide’s rise today to pay tribute to an out- network marketing [company] I have ever Atlanta head-quarters, confirms that there standing Georgian and a good friend, are ‘‘large numbers of similar testimonials known.’’ A native of China, who was impris- the Reverend Monsignor R. Donald oned for 13 years after being wrongly con- that we are delighted to share with anyone, anytime, who has a genuine interest in Kiernan, of Dunwoody, who today cele- victed and sentenced as an American spy (his brates his 50th Anniversary of service conviction was overturned), plans to write a bettering their lives and the lives of their book about Nationwide. ‘‘I want to tell peo- families.’’ Hendryx has an abundance of ex- to the Church. ple how to change their attitude and build amples. ‘‘All of our Regional Directors have Monsignor Kiernan is a man of great their self-confidence by sharing the beauty their own earnings success stories. Jack and warmth and humor, strong compassion of Nationwide, its philosophy, its system, its Becky Hearrell, Fred and Betty Swindle, and for others, and deep devotion to God, opportunity and its loving and caring of peo- Shelby Langston deserve special recognition, the Church, and to his community. I ple.’’ as does Bob and Judi Montgomery. The team is built upon the Regional Directors’ Shoul- have been privileged to work with Mon- INCOME TESTIMONIALS ders. signor Kiernan as a member of the Se- Nationwide, according to Case, is a 100 per- Case is inseparable from his wife, Carol. It lection Committee that assists me in cent debt-free company that parallels the is more than symbolic that he includes Carol choosing nominees for appointment to American Dream of entrepreneurial success. in as many Nationwide activities as her time the United States military academies. ‘‘Just look at Jack Hendryx, says Case. ‘‘No and schedule will permit. ‘‘Carol was instru- His perception and judgment have been man in America could, I believe, exceed his mental in providing me with some of the invaluable in making those always dif- professional marketing ability and wonder- central ideas that made Nationwide pos- ful reputation for honesty.’’ As a matter of sible.’’ Case says, ‘‘She, in an admirable way, ficult selections. But that is only one fact, one of Hendryx’s presentations, which has marketing and public relations talents example of the community service that he gives live in regional meetings, and is re- that go well beyond what you might expect has distinguished his career. corded on one of Nationwide’s video pro- to find on Madison Avenue or even here on In 1962, Monsignor Kiernan was in- grams, concludes with Hendryx’ advice to ev- Peachtree Street in Atlanta. Plus, we believe strumental in founding the Georgia As- eryone, ‘‘The Benefits Package will sell in husbands and wives, along with their fam- sociation of Chiefs of Police, and itself. All you have to do is tell the truth, ilies, being the core of Team Nationwide.’’ served as that organization’s director the whole truth, and nothing but the truth. The IMD Honor Roll of Nationwide bears and chaplain for over twenty years. He the rest is easy.’’ out Case’s ‘‘family’’ vision. The Regional Di- Case’s expectations for 1999 and into the rectors are almost invariably in husband and has also served as a chaplain for the next millennium are high. ‘‘We turned the wife pairs. IMD’s everywhere, pictured on his Georgia State Patrol, the Georgia Bu- corner sometime back and this year and the large conference room walls, are there with reau of Investigation, the DeKalb next will see us explode with new sales. My their respective husbands and wives and oc- County Police Department, the At- projection is to have tens of thousands more casionally, other family members. Dick lanta office of the Bureau of Alcohol, IMD’s on board, spread evenly throughout Loehr and his wife, Mary Lou are main stays Tobacco, and Firearms, the emergency the geographical areas of America with rein the Nationwide miracle; likewise, Jack medical technicians, and several other sulting growth in sales of the Benefits Pack- and Heide Hendryx. ‘‘What a wonderful coun- organizations. Three governors have age.’’ Case revealed that new benefits are try this will continue to be if we have more scheduled to be added to the package soon, businesses like Nationwide,’’ says Case recognized his dedication to the law en- and as they are added, they will be placed ‘‘where the preservation and betterment of forcement community by appointing retroactively into Benefits Packages already the family unit is not only encouraged, but him to state commissions on crime. owned. ‘‘Remember, we are family and we made possible through the miracle of finan- He also plays leading roles as a mem- share,’’ says Case with his engaging smile cial freedom!’’ ber of the executive committee of the and twinkling eyes. Nationwide’s story is the embodiment of Atlanta Area Boy Scouts of America Every great American business pioneer has the American dream. Case believes that Na- and on the Board of Directors of the said, in one way or another, that a company tionwide is just beginning its revolution in is measured by the accomplishments of its the network marketplace. During 1999 and United Service Organization. people. Perhaps no better measure of well beyond, he is committed to making Na- The Monsignor’s many civic activi- Nationwide’s enviable position in America’s tionwide the national exemplar of true finan- ties have been an expression of his de- network marketplace can be found than in cial freedom. He and his key team players voted service to the Church itself. May 4, 1999 CONGRESSIONAL RECORD — SENATE S4721 After graduating from Mount Saint nomic growth. Not the one headed into workable resolution to this issue. I Mary’s Seminary in Emmitsburg, chaos and economic downturn. It is have cosponsored similar legislation in Maryland, he was ordained on May 4, clear that the stakes are high. the past which affirmed the right of 1949 by Richard Cardinal Cushing, Indonesia boasts the fourth largest the East Timorese to have a ref- Archbishop of Boston, at the Holy population, and is a crucial player in erendum on self-determination, en- Cross Cathedral in Boston. He was as- Asia, where American economic and couraged the Indonesian government to signed to serve as Assistant Rector at political interests overlap. In 1996, the protect human rights and fundamental the Cathedral of St. John the Baptist United States benefitted from some $3 freedoms and urged the Indonesian po- in Savannah Georgia. He went on to billion in exports to Indonesia and litical leaders to implement political serve as an assistant pastor and then American firms had invested over $5.1 and economic reforms. I will continue pastor of nearly a dozen churches billion in Indonesia’s growing econ- to support such efforts in the future. across the state of Georgia, currently omy. The Asian financial crisis re- The reforms that the Indonesian gov- serving All Saints Catholic Church in versed this course of economic expan- ernment has implemented —however Dunwoody. In 1969 he was given the sion, crippling Indonesia’s economy encouraging—do not on their own guar- title Prelate of Honor (Reverend Mon- and exposing the inherent weakness in antee free and fair elections, nor do signor) by Pope Paul VI. He was ele- Indonesia’s political structure under they help to reduce the tensions re- vated to the highest rank of Monsignor the Suharto regime. lated to East Timor’s political status. by Pope John Paul I in 1979. The resulting disintegration, which I Violence has been on the rise. The I could list many other honors and saw first-hand during my trip to Indo- world has witnessed increased hos- awards conferred upon Monsignor nesia in December, is overwhelming. tilities in recent months among groups Kiernan, but perhaps his greatest Indonesia’s GNP fell by fifteen percent that have cultural and political inter- achievement is in the many lives he in 1998, and is predicted to experience est in what the future shape of East has touched. By now he must be on the another decline this year. Unemploy- Timor will be. The Indonesian govern- third generation of performing bap- ment stands at over 20 million, up from ment has a responsibility to resolve tisms and marriages. His counsel, his 8 million last May. Forty percent of In- these tensions. I believe it can begin by example, and his leadership have been donesia’s 218 million people live below abandoning its plan to employ civilian a comfort and an inspiration to many the poverty line. But, this is not the militias to combat violence and dis- thousands of Georgians. His commu- end of it. mantling existing militias, whose nity service and his work raising Economic instability has exacerbated abuses are already heightening the po- money for the Church have benefitted the already prevalent political and so- tential for violence. The government many others. cial tensions. Student protests, attacks must help the military find means for Those of us fortunate enough to on Chinese businessmen, conflicts be- handling violent outbursts effectively, know Monsignor Kiernan are thankful tween Ambonese Christians and Mus- without abuse. that we do and so I am pleased, Mr. lims, and paramilitary violence in East Allegations of the Indonesian mili- President, to congratulate Monsignor Timor is evident across the country. tary’s direct involvement in commit- Kiernan on reaching this milestone and Separatist forces on Aceh, Irian Jaya ting human rights abuses and perpet- to thank him for his many years of and other islands in Indonesia’s multi- uating violence led me to support a re- outstanding service to our state, our ethnic archipelago are gaining sway as striction on U.S. arms sales and Inter- nation, and to God.∑ Timorese independence moves closer to national Military Education and Train- f reality. The Indonesian government ing (IMET) aid to Indonesia which was must take strong and decisive steps initiated by Congress in 1993. I was, and UPCOMING ELECTIONS IN INDO- now to reduce these tensions and build still am, concerned that the Indonesian NESIA AND THE FUTURE OF respect for the rule of law and human armed forces might use U.S. arms, EAST TIMOR rights. This is necessary and crucial in military training, and financial assist- ∑ Mr. KERRY. Mr. President, there are order to create an atmosphere condu- ance to commit human rights viola- two issues of critical importance to the cive to holding democratic elections tions against innocent civilians. It re- future of Indonesia, the region, and the and determining, peacefully, the future mains necessary to keep these restric- international community which has in- political status of East Timor. tions in place until it is clear that the terest in securing a stable and demo- I must, however, commend the ac- Indonesian military is committed to cratic future for Southeast Asia: the tions that President Habibie has taken upholding democratic principles. upcoming elections in Indonesia and thus far to open the political process I am encouraged that the leaders of the political status of East Timor. If and set the stage for democratic elec- the Indonesian military, the pro-Indo- the June national elections in Indo- tions in June. In February, 1999, he nesia militias and the pro-Independ- nesia are determined to be free, fair signed legislation that established ence rebels signed a peace agreement and transparent, the ballot for East guidelines and procedures for con- on April 21, 1999 that calls for an end to Timor’s political future has a much ducting national elections. Forty-eight the violence and a laying down of arms. better chance of being conducted under parties are now registered to compete It also establishes a Peace and Sta- the same conditions. The U.S. and the in the June election, as opposed to bility Commission which may help to international community must make a three in the Suharto era. The mili- determine the process by which full strong effort now to ensure that these tary’s representation in the parliament disarmament can occur and the polit- conditions are established and upheld. has also been reduced. Seats will be al- ical status of East Timor can be deter- For the first time in forty-five years, located by proportional representation, mined. These are significant steps for- Indonesians have a chance to partici- rather than the winner take all strat- ward and I believe lay the groundwork pate in a free and fair election and to egy which favored the Golkar party. for real stability and peace. establish a government with popular I am pleased to cosponsor legislation Mr. President, it must not stop there, support and legitimacy. For the first introduced by Senator Robert however. The Indonesian government— time in twenty-four years, the Indo- TORRICELLI which supports these ef- with the support and commitment of nesian government is willing to con- forts of the Indonesian government to its military—must continue its dia- sider an East Timor that is inde- achieve a real and peaceful transition logue with all competing factions, both pendent of Indonesian rule, pending the to democracy. This bill calls upon the those that support and those that op- decision of the East Timorese, them- government to make necessary prep- pose independence. Together, they selves. Indonesia, indeed, stands at a arations to ensure that free, fair and must seek to resolve outstanding cross-roads. transparent national elections will issues—such as disarmament and the We must be sure that the U.S. and occur in June and that there is a question that will be asked on the bal- the international community stands strong commitment to uphold the re- lot—in the most expeditious way pos- there with it to guide Indonesia down sults of them. It also asks all parties sible. I am pleased that East Timor the correct path. The path that leads involved in determining the status of groups favoring independence from In- to democracy and free-market eco- East Timor to seek an equitable and donesia have been included in recent S4722 CONGRESSIONAL RECORD — SENATE May 4, 1999 discussions regarding the future polit- communities. In my home state of We don’t go to jail very often. As a group, ical status of East Timor. It is impor- Iowa, I know many seniors who per- we have a very low crime rate. Few of us are tant for all parties to be at the table form both paid and volunteer work well druggies, abuse children, speed, rob banks or since all parties must ultimately abide into their later years. Their wisdom use excess alcohol. We don’t tie up the courts or fill the jails. by the agreement if it is to be credible and experience are a valuable resource We pay our share of sales tax. We still buy and enduring. that we should not allow to go to things locally and support the stores and While the exact details of the tri- waste. shops of Iowa. We eat out more often. while partite negotiations that occurred last Mr. Marion Tierney, of Des Moines, we may not have as much income as when we month between Indonesia, Portugal Iowa recently spoke at an Aging Com- worked, we have more disposable income. and the U.N. are not fully clear at this mittee event. He is a perfect example Most of our income is fixed, which has its time, the world community will be of an older American who continues to limitations. But on the other hand, we aren’t watching closely when they are re- be an active participant in his commu- caught in economic downturns, layoffs, un- leased. The August ballot is supposed nity. He made a career change half a employment, labor strikes and other crises to determine the political future of of the work years. Our income is limited, but lifetime ago because he was looking for dependable. East Timor. Whether the East Timor- a new challenge in sales and increased We know how to work. While it’s true we ese choose independence or continued earning potential. Today, at the age of don’t run as fast as we used to, we are steady unity with Indonesia, the voting proc- eighty, he serves nearly 100 customers and dependable and we’re not afraid to work. ess and the period following the vote of Iowa Machinery and Supply. Some of us still have business interests and must be free of violence and intimida- In a highly competitive business, Mr. work every day. When we do have a business, tion. The world community can play an Tierney says hard work is the key to we employ Iowans and contribute to the eco- active role in helping the Indonesian success. He brings know-how, experi- nomic well-being of our state. government see that this happens. ence, relationships, and trust to cus- We work for free. We volunteer. We serve on boards and committees of many commu- The Administration has pledged $30 tomers as he assists them in developing million to assist Indonesia during its nity activities and at hospitals and care cen- solutions to improve their productivity ters, libraries, churches and schools. We give national election. However, I believe through the use of his company’s in- our time; some of us almost as much as a we, and others in the international dustrial products. He stays on top of full-time job. We baby-sit our grandchildren. community, should do more to make new technology and products and re- We’re a stable population. We don’t move sure that sufficient funds are available trains frequently to effectively meet around much. Not that we don’t travel for both for a free and fair election to customer needs. In turn, his field expe- fun. We do that whenever we can, but we occur in June and to help the Indo- rience helps the company decide which aren’t job-hopping. We don’t have to prove nesian government conduct a free and ourselves anymore by buying a bigger house new product lines to acquire. or a bigger car, just to impress our peers. fair ballot for East Timor in August. His employer cites Mr. Tierney’s The United Nations already has agreed Been there, done that. We’ve been in the rat willingness to share knowledge and ex- race—we know sometimes the rat wins. to send a civilian police force to East perience with younger salesmen as a We’ve learned to rest a little, to see the Timor to monitor the vote. I believe major contribution to the business. world up close and far away. We look at sun- this is a good first step. The U.N. pres- Mr. Tierney is just one example of sets and flowers and people in a little dif- ence should, though, be supplemented the many contributions older Ameri- ferent way now. We have learned patience by international, non-governmental or- cans make to their communities. I and tolerance and we are more thankful and ganizations, or equivalent Indonesian hope you will join me in honoring Mr. appreciative of little things. groups, which can help monitor and fa- Tierney and all Older Americans for We even contribute when we are sick, which some doomsayers point out derisively cilitate the ballot process. their many contributions. Not just dur- The time is now for the U.S. and the as a negative of being old. Even our being in ing the month of May, but all year the hospital more than our younger friends international community to focus on long. contributes to the economy of Iowa. We keep Indonesia and East Timor. The na- I ask an article regarding Older people working as nurses, therapists, lab tional election for Indonesia is less Americans be printed in the RECORD. technicians and so on. We all die sometime, than six weeks away and the ballot for The article follows: and for us it’s likely to be sooner. Even that East Timor is only about eight weeks [From the Des Moines Register, Apr. 27, 1999] gives a job to someone. after that. I believe, as one long in- CELEBRATE THE ‘OLD FOLKS,’ IOWA’S ASSETS Wouldn’t any state like to have a group of honest, reliable, stable, sociable, tax-paying volved in Southeast Asia, that it is im- (By Francis Keith) citizens who are willing to work without portant for those who have interest in In recent months there have been numer- the future stability of this region to pay, who support our local businesses and ous stories about the aging of Iowa. The who never go on strike? start creating a positive atmosphere in news reporters say our older population is a Well, look around, Iowa, we’re already which both of these events can occur.∑ burden. They say that the increasing num- here. We’re your retired citizens. And we’re f bers of older people will be a liability for all working hard to keep Iowa the great state the younger people who still work and pay we choose to retire in. OLDER AMERICANS MONTH taxes in Iowa. The graying of Iowa it’s We’re nice people to have around. We know ∑ Mr. GRASSLEY. Mr. President, since called. we’re pretty darned good citizens and we There are predictions that as this trend 1963, May has traditionally been des- have our pride. We have beaten the system. continues, the problem of so many old people We have reached retirement with all its ignated Older Americans Month. I will become acute and drag the state into promises, most of which are true. Let’s cele- would like to take this opportunity to some economic quagmire that will have a brate all the ‘‘old folks’’ in Iowa, not put thank these valuable citizens and share negative effect on everyone living here. them down as a liability. an article that was recently printed in I take a different and more positive view. ∑ the Des Moines Register. The author I am retired, over 65; I was born in Iowa, I f worked my whole life in Iowa and I retired in reminds us of the many contributions JAPANESE CAR CARRIER TRADE older Americans make to our commu- Iowa. Most of my peers and close friends are nities. over 65. Many are over 70 and some over 80. ∑ Mr. HOLLINGS. Mr. President, with As we prepare for one of the largest For the most part, we ‘‘old Iowans’’ remain our trade deficit continuing to grow very active in our community and church and with Japanese vehicle manufactur- demographic shifts in the history of and we know we are an asset to the state. We our nation, we as policy makers often pay our own way and we make a contribu- ers continuing to increase exports to focus on the challenges presented by a tion. We old people are a renewable resource. the United States, I rise to remind my graying nation. However, as suggested We pay property taxes and help pay for the colleagues that competitive U.S. com- by Francis Keith in his article, ‘‘Cele- public schools, yet none of us has children panies continue to be thwarted in their brate the Old Folks, Iowa’s Assets,’’ it still in school. We don’t drive as much as efforts to break down the walls of would be a shame not to take the time when we worked and chauffeured our chil- ‘‘kereitsu’’ relationships built up over to recognize and appreciate the vital dren to school and activities. Still, we pay decades in Japan. With Prime Minister our share of the street budget and we don’t Obuchi making his first official state role that seniors play in our commu- wear out the roads. nities. We pay income taxes, like everyone else, visit to the United States, I thought it Today more than ever, seniors are on our pensions, on interest earned on our useful to review our economic relation- continuing to play active roles in their savings, even on part of our Social Security. ship, or lack thereof. May 4, 1999 CONGRESSIONAL RECORD — SENATE S4723

As my colleagues know, the Japanese hicles to the United States and refrig- all in 41⁄2 years. In addition, he was a economy has been in a recession for erated products to Japan. In times of three time member of the SEC Aca- quite some time. Unfortunately, it national emergency, the vessels would demic Honor Roll. would appear the country has sought to carry tanks, heavy trucks, and other Today, newspapers and newscasts are export its way out of the problem and military equipment, as well as substan- often filled with stories about athletes to continue to shield inefficient domes- tial amounts of live ammunition. and their brushes with the law. Bran- tic companies from international com- Unfortunately, notwithstanding sup- don became a symbol of how student petition. For instance, just last week port from the Congress and the Sec- athletes should conduct themselves. the Commerce Department determined retary of Defense, the project has met The manner in which he conducted that Japanese steel imports were being with no interest or actual resistance in himself on and off the field will be dumped by margins of up to nearly Japan. This is particularly disturbing Brandon’s legacy. He was a young man 70%. Such actions are not acceptable. because implementation of the project of great character and dedication. As the office of USTR recently said, would, at no economic cost to the Gov- While I recognize that words alone pro- [A]s its demand for imports declines and ernment of Japan, enhance the mutual vide little comfort in times such as its firms redouble their efforts to sell to security of our two nations. Especially these, I hope that Brandon’s family healthier markets abroad, the effects of Ja- at a time when the Government of knows how many lives this young man pan’s economic policies will continue to hit Japan wishes to play a greater role in has touched.∑ the United States. In 1998, the U.S. goods advancing shared defense objectives, I f trade deficit with Japan reached $64.1 billion, am disappointed that it has not given an increase of $8.4 billion (14.2 percent) from ORDERS FOR WEDNESDAY, MAY 5, more serious attention to this pro- the 1997 level. . . . U.S. merchandise exports 1999 to Japan fell to $57.9 billion, a decrease of posal. 11.9 percent from the 1997 level. . . . Japan is I hope the Administration will con- Mr. GRAMM. Mr. President, I ask more dependent on the U.S. market to ab- tinue to press the Government of unanimous consent that when the Sen- sorb its exports than it has been for many Japan to take steps to reduce our trade ate completes its business today, it years. In 1998, the United States bought deficit and enhance our mutual secu- stand in adjournment until 9:30 a.m. on about 31 percent of Japan’s exports, the rity. I also hope the Government of Wednesday, May 5. I further ask that highest level since 1990, and close to the all- Japan will use the occasion of the on Wednesday, immediately following time high of 36 percent in 1986. Prime Minister’s state visit to make the prayer, the Journal of proceedings It will come as little surprise to Sen- further commitments to doing so.∑ be approved to date, the morning hour ators who are concerned about our f be deemed to have expired, the time for steel industry and other sectors that the two leaders be reserved for their Japan accounted for approximately COMMEMORATING BRANDON use later in the day, and that the Sen- one-fourth of our entire trade deficit in BURLSWORTH ate then proceed to vote on the adop- 1998. It is a mistake to suppose that ∑ Mr. HUTCHINSON. Mr. President, it tion of S. Res. 94, which is at the desk. such huge amounts of money can con- is not often that I rise to speak about The PRESIDING OFFICER. Without tinue indefinitely to move one way specific individuals, but the individual objection, it is so ordered. across the exchange with reciprocal I want to talk about today was a man Mr. GRAMM. I now ask unanimous movement in the other direction of extraordinary character, Brandon consent that it be in order to ask for blocked. In view of this situation, the Burlsworth. the yeas and nays on S. Res. 94. USTR said in its report: ‘‘The United Last Wednesday, I was saddened to The PRESIDING OFFICER. Without States attaches top priority to opening learn about the tragic and untimely objection, it is so ordered. Japan’s markets to U.S. goods and death of Brandon Burlsworth. Brandon Mr. GRAMM. Mr. President, I now services.’’ I trust the President will was only 22 years old when a car acci- ask for the yeas and nays. share our government’s concerns in his dent ended his life. While his time on The PRESIDING OFFICER. Is there a meeting with Prime Minister Obuchi, this earth was short, his impact on our sufficient second? There is a sufficient second. and will urge him to take steps to in- world will be long lasting. Brandon was The yeas and nays were ordered. crease U.S. access to the Japanese mar- a hero to the community of Harrison, Mr. GRAMM. I ask unanimous con- ket. the Razorback family, and the entire sent that immediately following the I also believe Japan can, and should, state of Arkansas. vote, there be a period of morning busi- take additional steps to increase its de- Brandon lived the kind of life that ness until 11 a.m., with the time equal- fense sharing burden. Let me give one would make any parent proud. He led a ly divided. I further ask that the first example. In the early 1990s, Congress wholesome life, and was a devout half of the time be allocated to Senator and the Department of Defense recog- Christian who used his faith and strong COVERDELL and the second half of the nized that more needed to be done to work ethic to become a success in time to be allocated to Senator DOR- augment our strategic sealift capacity. every facet of life. GAN or his designee. Our experience in Desert Storm dem- Brandon was not a highly recruited I also ask consent that at 11 a.m. the onstrated a critical shortage of U.S.- athlete coming out of Harrison High Senate resume consideration of S. 900, flagged, U.S.-manned roll-on roll-off School. Several small colleges ex- the financial modernization bill, and strategic sealift vessels. We therefore pressed interest in him, but Brandon the pending Sarbanes amendment. undertook new construction of a fleet had his sights on walking on at Fay- I finally ask that the time until 12 of military ships of this type. Even etteville and becoming a Razorback. noon be equally divided between Sen- with this new construction, however, While the odds were long, Brandon ator GRAMM and Senator SARBANES, there will continue to be a deficiency worked hard and not only made the and that Senator GRAMM be recognized of lifting capacity. team, but went on to start for the Ra- at 12 noon to make a motion to table To meet this deficiency, under the zorbacks for three years. Last year, he the pending Sarbanes amendment to S. leadership of then-Senator Bill Cohen, earned All-American honors, while 900. Congress created the National Defense leading Arkansas to the SEC West Co- The PRESIDING OFFICER. Without Features program. Under the program, Championship and a berth in the Citrus objection, it is so ordered. U.S. companies have been invited to Bowl. Last month, the Indianapolis f build vessels equipped with special Colts selected Brandon in the third military features for operation in nor- round of the National Football League PROGRAM mal commercial service but available draft. Mr. GRAMM. For the information of in times of national emergency. Not only was Brandon a disciplined all Senators, the Senate will convene Under one proposal, a fleet of refrig- player on the field, he was an out- on Wednesday at 9:30 a.m. and will im- erated car carriers would be built in standing student in the classroom as mediately proceed to a rollcall vote on the United States for operation in the well. Brandon earned a bachelor’s de- adoption of S. Res. 94. Following the U.S.-Japan trade. In normal commer- gree in marketing management and a vote, the Senate will be in a period of cial service, the vessels would carry ve- master’s in business administration, morning business until 11 a.m. At 11 S4724 CONGRESSIONAL RECORD — SENATE May 4, 1999 a.m., the Senate will resume consider- throughout Wednesday’s session of the now ask unanimous consent that the ation of Senator SARBANES’ substitute Senate. Senate stand in adjournment under the amendment to S. 900, the Financial f previous order. Services Modernization Act, with a vote on the Gramm motion to table oc- ADJOURNMENT UNTIL 9:30 A.M. There being no objection, the Senate, curring at approximately 12 noon. Ad- TOMORROW at 7:08 p.m., adjourned until Wednes- ditional amendments are expected, and Mr. GRAMM. If there is no further day, May 5, 1999, at 9:30 a.m. therefore Senators can expect votes business to come before the Senate, I May 4, 1999 CONGRESSIONAL RECORD — Extensions of Remarks E835 EXTENSIONS OF REMARKS

THE STEEL CRISIS the threat has disappeared. Given the clear for following the ideals of Dr. Martin Luther fact that the President can no longer be count- King, Jr. I urge my colleagues to join me in HON. PETER J. VISCLOSKY ed on to do anything more than just talk about wishing Mr. Belafonte many years of contin- OF INDIANA enforcing our trade laws, instead of taking di- ued success. f IN THE HOUSE OF REPRESENTATIVES rect action, Congress must fill the void. The need for action may now be greater Tuesday, May 4, 1999 than ever. Foreign countries can now rely on DICK LATTIMER CONTRIBUTES TO ARCHERY Mr. VISCLOSKY. Mr. Speaker, here we are, the Clinton Administration's unwillingness to six weeks after we passed the Bipartisan Steel deter their attempts to flaunt our trade laws, Recovery Act by an overwhelming margin, dump steel on American markets and drive HON. JAMES A. BARCIA seven months after we called on the President American steelworkers out of work. The Sen- OF MICHIGAN to take all necessary action to end illegal steel ate must repudiate the Administration's mes- HON. DUNCAN HUNTER imports, and nearly two years after the flood of sage and finish the job we in the House began OF CALIFORNIA illegal steel imports began to hit our markets, by passing the Bipartisan Steel Recovery Act. IN THE HOUSE OF REPRESENTATIVES We have seen what the White House will, and and still the crisis continues. Tuesday, May 4, 1999 Last week, the U.S. Department of Com- will not, do if given the chance. Congress merce announced that steel imports rose from must now do what the Clinton Administration Mr. BARCIA. Mr. Speaker, many people February to March of this year by 25 percent. has proven incapable of and end the surge of never find their true life's mission. My col- During the same period imports from Japan illegal steel imports onto our shores that is league, Mr. HUNTER, and I would like to pay rose 36 percent, imports from Brazil rose 54 driving hardworking American families out of tribute to Dick Lattimer who not only found his percent, imports from Korea rose by 11 per- work and away from their dreams. mission, but has used his talents and ambition cent, and imports from Indonesia rose 339 f to promote his passion for, and share his vast percent. knowledge of, archery and bowhunting. His CONGRATULATING HARRY The problem becomes even more evident tireless efforts, endless energy, and boundless BELAFONTE when you compare March's figures to those of generosity have led many people to learn and July 1997 before the crisis began. Using that later enjoy this wonderful pastime. No one in time frame, imports from Japan are up 22 per- HON. GEORGE RADANOVICH America or the world has worked harder, nor cent, imports from Brazil are up 25 percent, OF CALIFORNIA with as much determination to promote imports from Korea are up 77 percent, and im- IN THE HOUSE OF REPRESENTATIVES bowhunting and archery as Dick. A 1957 graduate of Indiana University and ports from Indonesia are up a remarkable 889 Tuesday, May 4, 1999 native of South Bend, Dick shot his first bow percent. Mr. Speaker, this is unacceptable. Mr. RADANOVICH. Mr. Speaker, I rise in 1966 and archery became his way of life Last Thursday, the Department of Com- today to congratulate Harry Belafonte for re- ever since. Shortly after his introduction to merce announced its final determination that ceiving the 1999 Drum Major For Justice bows and arrows, Dick met and went to work Japan has been dumping steel on American Award. The Drum Major For Justice Award for Fred Bear, the father of modern archery markets. By the Administration's own words, banquet seeks to honor those Americans and bowhunting. With the support of his wife, foreign nations are breaking trade laws. Yet, whose achievements most coincide with the Alice, and under the tutelage of the master, despite the rhetoric, the Administration con- dreams of Dr. Martin Luther King, Jr. Dick set about a lifetime of advertising and tinues to stand by and do nothing but claim Mr. Belafonte was a confidant and advisor promotional work for the sport he loved. Dick's that the situation is improving, even when the to Dr. Martin Luther King, Jr. Mr. Belafonte's passion, knowledge and love for the outdoors numbers show otherwise. activity in the human rights struggle is reas well as his strong commitment to educating President Clinton declared in his State of spected world wide. He has always believed the public and networking with the sporting the Union Address in January that ``We must that his work for human rights and his artistic community made him the key player in the de- enforce our trade laws when imports unlaw- pursuits gave him the basis for a most produc- velopment of archery and bowhunting through fully flood our nation.'' He threatened Japan by tive and balanced life. the 70's and 80's. stating, ``if the nation's sudden surge of steel Harry Belafonte had been called ``the con- Following the death of his mentor, Dick left imports into our country is not reversed, Amer- summate entertainer'' an artist in every field in Bear Archery in 1991 to become the first ica will respond.'' However, it was Japan that which he has participated, including movies, President and CEO of the Archery Manufac- responded with imports in January that were Broadway, television, recording, concerts and turers and Merchants Organization (AMO). up 75 percent from pre-crisis levels. After a producing. His first album ``Calypso,'' in 1955, From his position as the point person for the brief dip in February, during which the Admin- was the first to sell more than one-million cop- entire archery and bowhunting world, Dick de- istration was fooled into believing that its ies. Among other ``firsts'' were his being the veloped the largest trade show ever convened empty rhetoric and useless posturing was ac- first African-American to win an Emmy, and dedicated to archery and bowhunting. The tually working to stem the tide, Japan resumed the first African-American television producer. AMO Archery Trade Show is now entering its dumping by increasing its March imports 36 However, it is Mr. Belafonte's dedication to 4th year and has become the pivotal gathering percent over February's numbers and 22 per- the civil rights movement that has earned him for the world's bowhunters and archers. cent over pre-crisis levels. this honor. His involvement dates back to the Mr. Speaker, in addition to his more than full Mistakenly convinced of the correctness of marches in Selma, Montgomery and Wash- time commitment to AMO, Dick has spent their own ineffectual policies, President Clin- ington. Mr. Belafonte has also been chairman countless hours volunteering for many pres- ton's advisers continue to delude him that their of the MLK Memorial Fund. He was named by tigious boards. He has served as the Execu- approach will bear fruit. The Administration President Kennedy as Cultural Advisor to the tive Director of the American Archery Council, has focused on warnings of action that no na- Peace Corps, and received the Dag Hammar- the Television Chair and Co-Chair of the Com- tion believes will ever come. As evidence, just skjold Peace Medal in 1981, and the Martin munications Committee of the International yesterday, the President said during a press Luther King, Jr. Peace Prize in 1982. In 1987 Association of Fish and Wildlife Agencies, conference, ``We will take action if steel im- he was appointed a UNICEF Goodwill Ambas- Chair of the National Archery Museum, and a ports do not return to their pre-crisis levels on sador (only the second American to hold the member of the Hunting and Conservation a consistent basis. Playing by the rules of title), and in 1990 he was host for the U.N.'s Committee, Public Affairs Committee and trade is the best way to sustain a consensus World Summit on the Child; this was attended Bowhunting Subcommittee of the National for open trade.'' After the Administration failed by heads of state from all over the world. Rifle Association. Of note for the Congress is to act on its first admonition to the Japanese, Mr. Speaker, I rise today to congratulate Dick's service as a member of the board of di- and on every warning since, the credibility of Harry Belafonte for his accomplishments and rectors of the Congressional Sportsmen's

∑ 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. E836 CONGRESSIONAL RECORD — Extensions of Remarks May 4, 1999 Foundation and his sponsorship of the Con- IN HONOR OF NOBEL PRIZE has volunteered at All Faiths Receiving Home, gressional Sportsmen's Caucus Task Force on WINNER LINUS PAULING a home for abused and neglected children. Bowhunting. In his personal life, Dick has vol- Matthew has worked hard to earn the trust of unteered his time and financial resources to HON. DAVID DREIER the children. His efforts include art projects, his community through his church and for OF CALIFORNIA games and activities to encourage the children causes such as the needs of homeless Ameri- IN THE HOUSE OF REPRESENTATIVES to communicate and regain social skills that cans. Tuesday, May 4, 1999 have been damaged by abuse. Beyond his For his lifetime of dedication to archery and own volunteer time, Matthew has recruited bowhunting, Dick was inducted to the Archery Mr. DREIER. Mr. Speaker, on May 15, the other young people to volunteer and has Hall of Fame on January 9, 1999. Dick now California Institute of Technology will host an raised money to help pay for supplies needed joins the legends of archery and bowhunting exhibit on the life and works of Linus Pauling, for projects. Matthew is committed to reducing as a peer and will forever rightfully share a the only man to have received two unshared child abuse and spreads the word through distinguished place in the history of conserva- Nobel Prizes, one for science and the other speaking engagements in the community. tion and hunting in North America. for peace. One of the most important factors in a Mr. Speaker, if we want our citizens to be The California Institute of Technology, nes- child's life is a person who cares. Matthew driven by the needs of the country and to be tled beneath the beautiful San Gabriel Moun- makes a positive difference in the lives of examples of selflessness, commitment and ac- tains in Pasadena, California, is one of the fin- many children and in our entire community. complishment, then we must continue to honor est institutions of higher learning in the world. He is one of America's top youth volunteers. and praise individuals like Dick Lattimer. We Its contributions to our understanding of the Join me in thanking Matthew Copus for the ask you and all of our colleagues to join us in universe around us, from space exploration to positive impact he has in Albuquerque, New commending Dick Lattimer as an icon of the molecular biology, are unmatched among sci- Mexico. archery and bowhunting world but also as a entific institutions throughout the world. For f great American sportsman and humanitarian. years, Linus Pauling served on its faculty, earning a reputation that has immortalized his IN HONOR OF THE LATE GORDON f contributions to science as the Father of Mod- McMILLAN ern Chemistry. REPORT FROM LaPORTE COUNTY, The exhibit is jointly sponsored by Cal Tech, INDIANA HON. MICHAEL P. FORBES the Pauling family, Oregon State University, OF NEW YORK and the Soka Gokkai International. I would IN THE HOUSE OF REPRESENTATIVES HON. DAVID M. McINTOSH note that its President, Daisaku Ikeda, is one Tuesday, May 4, 1999 OF INDIANA of the great Ambassadors for peace in the IN THE HOUSE OF REPRESENTATIVES world today, and was a close personal friend Mr. FORBES. Mr. Speaker, I rise today to of Professor Pauling. In fact, the exhibit was honor a true visionary in education and cham- Tuesday, May 4, 1999 inspired and launched by Ikeda as a tribute to pion of children, Gordon McMillan, a veteran Mr. McINTOSH. Mr. Speaker, I rise today to his friend and colleague in a manner befitting Long Island teacher who passed away re- give my ``Report from Indiana'' where I honor Pualing's life. It was this idea that led Ikeda to cently at the age of 64. distinguished Hoosiers who are actively en- propose the exhibit that would inspire and Ask any parent or student and I'm sure gaged in their communities helping others. educate young people for leadership in the they'll agree that elementary and secondary Mr. Speaker, it has always been my strong 21st century. education in this country must be reformed. belief that individuals and communities can do The exhibit is expected to attract young But the system needs more than an infusion a better job of caring for those who need help people from all over southern California. It will of money, it needs an infusion of innovative in our society than the federal government. graphically demonstrate the intimate relation- ideas as well. Innovative ideas were Gordon The wonderfully kind and committed Hoosiers ship between the search for knowledge of the McMillan's specialty. who I have met traveling around Indiana have universe and the pursuit of peace. It will also Today, and every school day, computers not changed my view. provide young people with a role model of a are being purchased, unpacked, and delivered Ruthie and I have met hundreds of individ- man whose life epitomized courage, wisdom to classrooms on Long Island and across the uals who are committed to making our com- and determination, values that will well serve country in the hope that teachers will do won- munities a better place in which to live and today's youth as they prepare to become to- derful things with those computers to assist raise our childrenÐwe call them ``Hoosier He- morrow's leaders. the educational process. The tireless efforts of roes''. It is with great joy that I announce the open- technology pioneers like Gordon McMillan I recognized this genuine Hoosier Hero in ing of the exhibit and recognize those who are made this possible. Like many teachers in our LaPorte County, Indiana recently in front of responsible for making it available to the pub- public schools, Gordon started teaching before the LaPorte County Republican Party at a Lin- lic, especially the young people of my district the era of personal computers, but unlike coln Day dinner speech. He is Keith Jones, and of southern California. other teachers, Gordon understood the power who is a very active and successful business This exhibit will run from May 16 to June 19 of change and the potential of computers as man here in LaPorte County. By working tire- on the campus of Cal Tech in the Winnett new educational tools. lessly on behalf of the less fortunate, Keith Center, and will be open to the public on Gordon was born in Cambria Heights, epitomizes a Hoosier Hero. Wednesdays from 4pm to 9pm, on Saturday's Queens, in 1935 and attended New York Keith has been awarded the `Òutstanding from 10am to 6pm. Special group and school City's public school system. After graduating in Citizen Award'' by the LaPorte Rotary Club as tours can be booked by calling (323) 938± 1952, he went to Adelphi University, where he well as the LaPorte Jaycees. Last, he also re- 8255. The exhibit is free to the public. received a bachelor of science degree in edu- ceived the ``Distinguished Award'' by the f cation in 1956. He later got his master's de- LaPorte YMCA. Incredibly, his charitable MATTHEW COPUS IS A WINNER OF gree from Hofstra University. He started his works even extend beyond his community and THE PRUDENTIAL SPIRIT AWARD teaching career at Plainview Elementary country. He is the founder of the Aruba School on Long Island, and remained with the Friends of the Handicapped and has raised school district until 1974, reaching the position over $700,000 to help people there suffering HON. HEATHER WILSON of assistant principal. Over the next six years, OF NEW MEXICO from disabilities. he worked as principal of Summitt Lane Ele- IN THE HOUSE OF REPRESENTATIVES Keith's work has given so many people the mentary School in Levittown and Thomas most precious gift possible, hope. He doesn't Tuesday, May 4, 1999 Leahey School in Greenlawn, and assistant do it for the pay, which is zilch, he does it for Mrs. WILSON. Mr. Speaker, I wish to bring principal at West Islip High School. He then the smiles and laughter. You are a true hero to your attention a young man in our commu- became principal of George Jackson Elemen- in my book, doing good works for others with nity, Matthew Copus, who has been named tary School in Jericho where he remained until no other motive than Christian charity. one of New Mexico's top youth volunteers for his retirement in 1988. Keith Jones deserves the gratitude of his 1999 in The Prudential Spirit of Community After his retirement Gordon worked as a county, state, and nation and I thank him here Award. consultant for IBM. In 1997, he once again today on the floor of the House of Representa- Matthew's volunteer efforts truly reflect the went back to his true passion and took tem- tives. spirit of community. For the past two years he porary assignments as an interim principal, CONGRESSIONAL RECORD — Extensions of Remarks E837 working stints at Southampton Intermediate Dawn Buth, Baili Camino, Traci Green, Steph- savor the variety of their celebrations. There's School and Medford Elementary School. He anie Hazlett, Whitney Laiho, Stephanie no better way to see our Bronx community. was working at River Elementary School in Nickitas and M.C. White. For its first 20 years, Professor Henry A. Patchogue Long Island at the time of his Go Gators! Skinner has coordinated the Bronx Community death. f College Hall of Fame 10K race, a healthy Mr. Speaker, Gordon embodied the type of competition which brings together runners of role model and educator that all would have IN HONOR OF THE FLYERS all ages from the five boroughs of New York liked and wanted their children to be involved City. He is also the President of Unity and with during their educational career. HON. DENNIS J. KUCINICH Strength, the organization of minority faculty, To the parents he will be remembered as OF OHIO staff and administrators of Bronx Community the innovator of bringing computers to the IN THE HOUSE OF REPRESENTATIVES College. Dr. Atlaw Belilgne of the Department schools. To the children he will also be re- Tuesday, May 4, 1999 of Mathematics and Computer Science, as the membered as a 6-foot, 2-inch, 250 pound bear 1999 Director of the race, continues this rich of a man, who once dressed as the Great Mr. KUCINICH. Mr. Speaker, I rise today to Bronx tradition. He is also Director of Self pumpkin and donned a Superman costume, honor an active, strong, and vigorous group of Help and Resource Exchange (S.H.A.R.E.). swinging onto the school's auditorium by a senior citizens, the Flyers, in Lakewood, Ohio. Mr. Speaker, I ask my colleagues to join me rope. This group of 15 senior citizens plays in in recognizing the individuals and participants Colleagues, Mr. McMillan is an educator local and national softball, basketball and who are making the Bronx Community Col- who will be sorely missed. volleyball leagues and tournaments. The lege's 21st annual Hall of Fame 10K Run pos- f group is a frequent participant in games at sible. Elmwood Park in Rocky River and also plays TRIBUTE TO THE UNIVERSITY OF f in the Lakewood League. On a national scale, FLORIDA WOMEN’S TENNIS TEAM the Flyers have played in tournaments spon- LETTER CARRIERS ADDRESS HUN- sored by Amateur Softball Association and GER BY SPONSORING NATION- HON. KAREN L. THURMAN other Senior organizations in St. Louis, Dallas WIDE FOOD DRIVE OF FLORIDA and Mississippi. The group often holds fund- IN THE HOUSE OF REPRESENTATIVES raising events to raise the money to travel to HON. GERALD D. KLECZKA Tuesday, May 4, 1999 different games across the country. OF WISCONSIN Mrs. THURMAN. Mr. Speaker, I rise today The members of the group have paid their IN THE HOUSE OF REPRESENTATIVES dues and worked hard lives, and they now are to honor the University of Florida women's Tuesday, May 4, 1999 tennis team. Last season, this fine team won enjoying their retirement and doing exactly the 1998 NCAA women's tennis champion- what they love to do. One of the group's mem- Mr. KLECZKA. Mr. Speaker, on Saturday, ship. It was the third time the University of bers. Mr. Vern Carr, would even like to see May 8, 1999, letter carriers from around the Florida won the NCAA title, and it was also the Flyers compete against teams in Europe country will be gathering nonperishable food the third time the team completed an someday. items set aside by their customers for people undefeated season. My fellow colleagues, please join me in sa- in need. Milwaukee is a compassionate com- I've been told the final game turned out to luting the Flyers and wishing them continued munity and its benevolence ranks the city, for be a war of wills with the Gators tennis team success, and most importantly a lot of fun, in the second straight year, as number one in pitted squarely against Duke at Notre Dame's their upcoming tournaments. the nation in the amount of food collected. Courtney Tennis Center. On Sunday, May 24 f The National Association of Letter Carriers, of last year, UF's team took home a hard- in conjunction with the United States Postal TRIBUTE TO THE BRONX earned 5±1 victory. Service and the United Way, will kick off this COMMUNITY COLLEGE Just ask Number One Player Dawn Buth year's food drive in Milwaukee with a press how hard it was to bring home the champion- ´ conference on Thursday, May 6th, to educate ship. UF coach Andy Brandi refers to her as HON. JOSE E. SERRANO the public about the issues of hunger and con- a real fighter and for good reason. Her match OF NEW YORK vey the importance of each citizen's involve- during the championship helped seal the IN THE HOUSE OF REPRESENTATIVES ment to stamp out hunger. Gators' victory. She was tired. She had Tuesday, May 4, 1999 I rise today, Mr. Speaker, to ask my col- cramps. Her right wrist hurt. But she kept leagues to lend a hand to this worthwhile going, and got tougher and tougher until she Mr. SERRANO. Mr. Speaker, it is with joy project by supporting the letter carriers' food clenched the 151st singles win of her UF ca- that I rise today to once again pay tribute to drives across the nation. I would also like to reer. Bronx Community College, which will hold its invite the residents of Milwaukee and Let me tell you what happened. Buth lost 21st Anniversary Hall of Fame 10K Run on Waukesha Counties to consider adding a few the first set, won the second, was losing in the Saturday, May 1, 1999. extra canned food items or nonperishables to third before coming back to win three games The Hall of Fame 10K Run was founded in their grocery carts for collection on May 8th. in a row and take the match. Afterward, she 1978 by Bronx Community College's third Let's make this year's food drive better than told a local newspaper reporter how she was President, Dr. Roscoe C. Brown. Its mission is ever. able to do it. `Ì just tried to stay focused, stay to highlight the Hall of Fame for Great Ameri- Our food pantries are counting on drives like confident and I was able to pull out the next cans, a national institution dedicated to those this to help keep their shelves filled. Let's all three games.'' That kind of attitude and perse- who have helped make America great. try to do our part to alleviate hunger. verance will undoubtedly take Dawn Buth and The tradition continues, first under the lead- f her teammates far, not only on the tennis ership of Acting President, Dr. Leo A. Corbie court but throughout their lives. and now under Dr. Carolyn G. Williams, the IN HONOR OF NATIONAL This latest victory carries on a distinguished first woman President of Bronx Community TEACHER’S DAY record for the University of Florida's women's College. Both Dr. Corbie and Dr. Williams tennis team. In addition to three NCAA cham- have endorsed and follow the commitment HON. JAY INSLEE pionships over the course of Head Coach made by Dr. Brown to promote physical well- OF WASHINGTON Andy Brandi's tenure, the Gators have also being as well as higher education. IN THE HOUSE OF REPRESENTATIVES earned 13 Southeastern Conference titles, six As one who has run the Hall of Fame 10K Tuesday, May 4, 1999 national indoor titles and finished six Run, I can attest that the excitement it gen- undefeated regular seasons. erates brings the entire City together. It is a Mr. INSLEE. Mr. Speaker, today is National Congratulations is certainly in order for celebration and an affirmation of life. It feels Teacher's Day. I do not believe educators are Brandi and last year's coaching team: Assist- wonderful to enable more than 400 people to given nearly the amount of accolades they de- ant Coach Sujay Lama, Volunteer Coach Jo- have this experienceÐone that will change the serve, and I truly appreciate the chance to Anne Russell and Athletics trainer Kellye lives of many of them. It is an honor for me simply say: thank you for the important and Mowchan. to join once again the hundreds of joyful peo- meaningful work you do. I also want to individually congratulate last ple who will run along the Grand Concourse, Mr. Speaker, I am especially proud that my year's women's tennis team: Bonnie Bleecker, University Avenue and West 181 Street and to father, brother, and brother-in-law are all E838 CONGRESSIONAL RECORD — Extensions of Remarks May 4, 1999 teachers. Teachers are on the front lines ev- A large portion of Khan’s success was due loved friends, and in turn, the guest of a eryday, preparing our children for the future. to his solid armies, both his soldiers and his household would offer kind words to the Teachers also bestow upon students the intel- horsemen. Genghis Khan’s armies were vast, hosts, and would express respect and grati- and he grouped his men into units of tens, tude by accepting foods at the table with lectual tools they need to become successful hundreds, thousands, and ten-thousands, so customary gestures. and productive members of society. they could move in to battle quickly. Khan’s The traditional religion observed by the There is nothing that impacts America's so- powerful armies were often forced to over 225 people of Mongolia is Tibetan Buddhism. cial, economic and political future more than miles of land within a day. Most of the war- Pedestals, in a Mongol’s home, hold statues the quality of learning that happens in our riors were horsemen, and they each owned of Buddha, a symbol that is prominent in Ti- schools. We should recognize the countless three to twenty horses, which they alter- betan Buddhism. After freedom of religion hours of selfless service that teachers devote nated daily to give each horse sufficient was introduced to Mongolia in 1990, Bud- time to rest. Weapons carried by the war- dhism became the most commonly practiced to the most valuable resource in this countryÐ riors were strong bows, lances, and swords. religion. The government of Mongolia of- our children. The soldiers wore heavy leather called la- fered money to support the restoration of a Let me, again, express my appreciation and mellar to shield them from the fierce swipe sacred Buddhist Monastery. thanks to the millions of educators who impart of a sword. Religion holds importance to the Mongols, their wisdom and knowledge to future genera- Many of Genghis Khan’s words provoked a yet it only occupies one level of Mongolian tions. feeling of force and fury. ‘‘The greatest life. In the rural areas of Mongolia, the peo- pleasure is to vanquish your enemies and ple’s lives revolve around hunting or herding f chase them before you rob them of their livestock. The semi-wild horses who graze in HONORING EMMA JANE wealth and see those dear to them baked in the mountains that enclose the grasslands, tears, to ride their horses,’’ he once said. are for riding and training purposes. A Mon- BLOOMFIELD Khan was fueled by experiences of the many golian horse herdsman typically makes deci- bloody battles that his armies fought. Gen- sions as to where to let the horses graze, and HON. GARY L. ACKERMAN ghis Khan relished seeing those inferior to when to move them to the next camps. Herd- him suffer, and he fought only to claim ers of any animal must eventually sell or OF NEW YORK power and to satisfy his dreams. Khan’s butcher the livestock. Herdsmen efficiently IN THE HOUSE OF REPRESENTATIVES dream was to establish a network of riders, use parts of the animals for fuel, warmth, Tuesday, May 4, 1999 used as a spy system, all over Asia. His ar- and shelter. The job of a herdsman may also mies did succeed in taking over parts of be to breed rarer animals, and sell them. Mr. ACKERMAN. Mr. Speaker, I rise to China, Middle Asia, and Europe. Khan’s em- Traditionally, hunting occupies a large honor and congratulate Emma Jane Bloom- pire stretched from Europe to Russia in the portion of Mongolian life. Many Mongol field, who recently won an award from the north, and from Vietnam to Iraq in the hunters use ancient archery techniques to Concord Rotary Club for her paper on Mongo- south. With their equipment, strength, and hunt birds. Keen dogs and cheetahs are also lian Culture. This paper was brought to my at- intelligence, the Mongol Umpire led by Gen- used to track down a hunter’s game. Occa- tention by her proud grandmother, Blanche ghis Khan seemed immortal. sionally, in earlier times, large-scale hunts Unfortunately for Mongolian society, the would be organized where beaters would Bloomfield, who resides in my district in Kings red heat of their empire soon faded to a cow- drive entire herds of antelope into the lurk- Point, NY. This essay contest demonstrates ering pink. Because they fought so many ing hunters’ bows. Falcons, too, were used to how our communities can work with our battles, the rivalries and conflicts between lead large game to the hunters. schools to further the educational goals of all Mongolia and other countries brought mis- In the rural places of Mongolia, the rural of our nation's children. I hope all of my col- fortune and an unexpected end to the Mongol life of a Mongol is chiefly filled by the needs leagues will have an opportunity to review this Empire. At that time, Russia and China of the flocks of sheep, goats, herds of horses, insightful and cogent essay and I would once began to expand and they claimed most cattle, or camels. Springtime is the season in which herdsmen have the most commitments again like to congratulate Emma on her out- power that the Mongols had once held. The collapse of the Mongol empire in 1505 scarred to the livestock. The births of animals oc- standing work. its people and society. The power supplied by cupy great spans of time, and often an entire Under the control of Genghis Khan, the Genghis Khan was humiliated, and the next family comes to the fields and helps the Mongolian people once had a forceful army, centuries were filled with tragedy and strug- herder with a difficult birth. Herdsmen scur- exploding with wrath and rage. However, the gle. While the Mongols tried to rebuild their ry around tending to the needs of animals, mounting tension between other countries economy, Russia and China prevailed over trying to establish a health start to the and the Mongolians, caused by so many bat- them and took parts of Mongolia under their herding season. Summertime is less busy, for tles, resulted in the shattering of the Mongol control. In 1990, the break-up of the Soviet herds of animals resort to pasture land and empire. Since the 1300s, they have struggled Union provided a blessing to the Mongols, the livestock doesn’t demand assistance to rebuild their society. Now that the and it offered freedom to some. However, from herdsmen. Yet in the summertime strength and anger have faded from their problems still remain in Mongolia. To sur- there is still some work to attend to: sheep community, many Mongols today believe in vive, the people have been forced to roam the are shorn for their dense wool and camels a strong emphasis on politeness and hospi- grasslands, hunting with bow and arrow, and goats are combed for their velvety tality. Mongols live on the seeping grass- taming horses, and raising livestock. The under-wool. The autumn winds dry the mois- lands of Asia and they use their environment Mongols’ strength has only re-emerged ture from the grasslands, and as winter ap- to satisfy many needs. In the rural areas of through their formation of a government proaches groups of herdsmen collect their Mongolia, many men are herdsmen who su- while they have squirmed out of the reach of livestock. The animals are confined to graze pervise the wild horses and yaks that roam Russian and Chinese power. in small pens and barns, and hay becomes the Mongols’ homeland. The history of the Having rebuilt their society, natural and their main diet. In late autumn equipment Mongolian people has influenced their spiritual things now claim a higher rank and tools are replaced or mended for the new present culture, and their beliefs, styles of among the Mongols. Mongolians believe that births of livestock in the springtime. Mongo- life, and natural environment are still con- heaven, a home to the gods, holds an abun- lian winters come to the land quickly and tributing to the formation of their society dance of power. The Mongols honor heaven last for a long amount of time. Temperatures and identities. and all of nature under it. In fact, earlier stay low for weeks, which make each day Mongolian history is traced back to the Mongol tribes blessed and proclaimed their harder for Mongols to endure. Herdsmen stay days of power when Genghis Khan ruled the leaders as the ‘‘sons of heaven.’’ loyal to the penned animals and help them Mongol empire. Genghis Khan was a wild In their households, Mongols have always through the months of winter, so the cycle horseman and a strong warrior who inspired strongly emphasize politeness and hospi- can repeat. the bravery of his people. He had great accu- tality. In pre-modern times the Mongols’ On the grasslands outside of Ulan Bator, racy and distance when shooting a bow and homes were spread out all over the Mongols’ the capital of Mongolia, the Mongols live in arrow, and he had a keen mind that conjured land. This caused many people to travel from tent-like gers (see appendix D). These homes up strategies he used to win battles. Khan camp to camp, who would need a home for have rounded walls that slope upward to was widely known for ruthlessly attacking one night. Mongols provided shelter for visi- form a point at the top. These traditional towns and cities for the rewards of victory. tors who later would face a hike across the homes provide the Mongolian people with Genghis Khan conquered more territory than windswept grasslands. With the arrival of a warmth and protect them from blizzards anyone in Mongolian history, and he im- guest at a Mongolian’s home, the host would that may storm the grasslands. Gers are cov- posed his reputation on the world. Despite traditionally offer a hospitality bowl, which ered with felt, usually made by women. The the cruelty that Khan showed toward other would hold chunks of pungent cheeses, sugar process of felt-making typically takes two countries, the Mongols praised him and cubes, candies, and bordzig pastries deep weeks for enough cloth to cover an entire viewed him as the founder of their nation, fried in yak and mutton fats. Using the hos- ger. Because many Mongols are followers of creator of their people. The Mongols called pitality bowl was the style in which the animal herds, the ger satisfies the needs of Genghis Khan the ‘‘Supreme Ruler Over the Mongols welcomed their guests. Mongolians their culture, for the ger is easy to dismantle Ocean’’ and ‘‘Emperor of Emperors.’’ believed in treating visitors as old and be- and is designed to be transported from place CONGRESSIONAL RECORD — Extensions of Remarks E839 to place. A ger is most commonly moved by The Masons, officially titled the Free and CONGRATULATING BILL AND BEV a team of camels or oxen, the strongest ani- Accepted Masons, are one of the world's old- FARNSWORTH ON THEIR SILVER mals that can support a heavy weight. The est and largest fraternal organizations, dating WEDDING ANNIVERSARY placement of a ger has been influenced by Mongols’ traditions. Throughout Mongolian back to its foundation in England in the early history, the door of the ger has always faced 1700's. Throughout history the Masons have HON. GEORGE RADANOVICH southeast. Mongols believe that because sought to bring men together of all race, reli- OF CALIFORNIA winds gust from the southeast and the sacred gions and political ideology under the ideas of IN THE HOUSE OF REPRESENTATIVES sun rises in the east, gers that face in this di- charity, equality, morality and service to God. rection are blessed. Today the Masons have millions of members Tuesday, May 4, 1999 The most common animal to be seen roam- worldwide, including more than 2.5 million in Mr. RADANOVICH Mr. Speaker, I rise today ing the land of Mongolia is the yak. Mongols the United States. They have earned a reputa- to congratulate Bill and Bev Farnsworth as use the abundance of these animals to benefit their culture by herding them and using tion as highly respected businessmen, min- they celebrate their 25th wedding anniversary. the animals as a source of trade. The Mongo- isters and politicians. Great men such as Bill and Bev Farnsworth were married on lian people also dine on meat from yaks and American statesman Benjamin Franklin, Com- May 4, 1974 in Elgin, Illinois. They moved to use their fat to fuel stoves. The Mongolian poser Wolfgang Amadeus Mozart, French phi- Fresno, California in 1978 and reside there government trades yaks to other countries losopher Voltaire and U.S. President George today. Bill owns Valley Drywall Systems, a for oil, manufactured goods, and machinery, Washington have all been Brothers in the Ma- construction company. Bev is a department which are all conveniences that Mongols sonic order. manager at Gottschalk's department store in cannot process themselves. My own association as a Brother with the Fresno. Together they have raised four chil- The Mongols’ land is a tangle of many different environments. A portion of Mongolia Masons has been a great influence on me dren, Sherrie, Bryon, Kelly and Larry. includes a vast mountain range locking in throughout my career and in public life. Their Bill and Bev Farnsworth have exemplified bleak and rocky grasslands. The most promi- moral values and ethical code have been an true family values in their family and love for nent mountain range is the Altai. This clus- immeasurable help to guide me in making fair each other. They have been involved in their ter of mountains holds the only glaciers in and just decisions in my responsibilities as a community with various volunteer organiza- Mongolia, which makes for a nipping, frigid Member of this chamber. tions. Bev was a volunteer for the Clovis Com- climate. The Mongolian grasslands also bor- Mr. Speaker, it is my hope that under the munity Hospital Guild. Both Bill and Bev were der the Gobi Desert, where the climate is leadership of Worshipful Master Arnold a part of the Fresno County Republican Cen- arid and hot. Mongol culture, therefore, has adapted to living among extreme tempera- Geisler, Secretary Jack Williams and Treas- tral Committee. tures, but it revolves mostly around the urer Reinhard Kabitzke that the Harmony Bill and Bev have a saying that they hold more temperate grasslands. The Mongols Lodge will continue its good works as a model dear, ``More than yesterday, less than tomor- have proven, in the survival of their culture, organization and will continue to help those in row.'' that to this day they still have the spark and need as well as continue to be an exemplary Mr. Speaker, I want to congratulate Bill and the strength that the great Genghis Khan example of fraternal service to community for Bev Farnsworth on their Silver Wedding Anni- possessed. another 150 years. versary. I urge my colleagues to join me in f f wishing them many more years of happiness. f 150TH ANNIVERSARY OF HARMONY TRIBUTE TO THE BELLARMINE MASONIC LODGE COLLEGE MOCK TRIAL TEAM BAY MEDICAL CENTER AUXIL- IARY: A VITAL PARTNER FOR HON. BENJAMIN A. GILMAN HON. ANNE M. NORTHUP VITAL SERVICES OF NEW YORK OF KENTUCKY IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES HON. JAMES A. BARCIA Tuesday, May 4, 1999 Tuesday, May 4, 1999 OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES Mr. GILMAN. Mr. Speaker, I wish to call to Mrs. NORTHUP. Mr. Speaker, I am pleased the attention of our colleagues and the Amer- to rise today to honor constituents from Louis- Tuesday, May 4, 1999 ican people the achievements of the Brothers ville, Kentucky. Recently, the Bellarmine Col- Mr. BARCIA. Mr. Speaker, there are many of the Masonic Harmony Lodge #199 F.&A.M. lege Mock Trial Team competed in the Amer- organizations that make a huge difference in of Sparkill, New York, on their 150th anniver- ican Mock Trial Association's National Cham- our lives, and their successes are made pos- sary of fraternity and service to their commu- pionships in Des Moines, Iowa and brought sible by their support mechanisms. Bay Med- nity. The Harmony Lodge has continued the back to Louisville the National `Championship. ical Center in my Congressional District pro- Masonic tradition of promoting ``morality in The Knights of Bellarmine overcame the ef- vides outstanding health care to my constitu- which all men agree, that is, to be good men forts of Stanford and Rhodes in their march to ents, and its ability to provide this wonderful and true.'' Together with the nineteen other victory. care is a direct result of the activities of the Masonic Lodges of the Manhattan District, the This was a redeeming victory for Bellarmine Bay Medical Center Auxiliary. Harmony Lodge has continued to support the which had finished second in the competition Since 1973, the members of the Auxiliary charitable endeavors of the Masons by raising the previous four years. While compiling a have consistently acted as ambassadors for and donating millions of dollars to hospitals, record of 7±0±1 during the competition all of the hospital. Their good will and confidence homes for widows, the elderly, and orphans as the members of the championship team were has been a key factor in the many successful well as numerous scholarship funds. named All-Americans. Meanwhile, the second fund-raising campaigns over the years. In fact, The Harmony Lodge held its first meeting team for Bellarmine gained valuable experi- the Bay Medical Center Auxiliary has provided with nineteen Brothers on October 12, 1849, ence, several individual awards and finished in nearly one million dollars to the Health System and ever since then the language of their fifth place overall. I also am pleased to honor since 1990 through Gift Shop profits, proceeds meetings has always been German. The one of team's coaches the James Wagoner, from the annual Charity Ball, and other fund- Brothers of Harmony Lodge have actively par- who was honored for his outstanding service raising activities. ticipated with the other Masonic Lodges of to the American Mock Trial Association and Proceeds provided by the Auxiliary have New York to raise funds to build the German the legal profession outside of mock trial. been used for many essential activities. Cour- Masonic Lodge in Manhattan, purchase land The Bellermine championship team is made tesy vans have been provided for patients for a Masonic Park and Masonic home for the up of: William Armstrong, Amanda Bennett, convenience. Infant and adult ventilators, the elderly as well as aiding in the foundation of Jason Butler, Nathaniel Cadle, Ryane Conroy first electric birthing bed-chair, state of the art two other Masonic Lodges in the state of New and Vanessa Cox. The second team included: mammography equipment, an advance life York. The brothers of the Harmony Lodge take John Balenovich, David Chamberlain, Cheryl support ambulance, Life-Pac resuscitation great pride displaying German heritage, and Danner, Heather Jackson, Matt Rich, Christi equipment, fetal monitors, and cardiac reha- do so by inviting thousands of visitors each Spurlock and Sarah Wimsatt. These two fine bilitation equipment are only some of the med- August to the German Masonic Park to enjoy squads were led by James Wagoner, Ruth ical devices provided by the Auxiliary's efforts German culture, food and music entertainment Wagoner and Jason Cooper. Again, I am so that help maintain an outstanding quality of in their annual `Òompah Fest and Steer proud to honor this team, as Louisville cele- care. A number of facilities, including the Roast.'' brates its National Champion. women's resource library, waiting lounges in E840 CONGRESSIONAL RECORD — Extensions of Remarks May 4, 1999 ICU and surgery, and the main campus lobby today on the floor of the House of Representa- IN HONOR OF THE LATE MICHAEL have all been improved by the Auxiliary. Work tives. MCGARVEY on behalf of open heart programs, including f support of surgery and the heart-lung bypass HON. MICHAEL P. FORBES HELP GIVE PEACE TO THE FAM- machine, has made a life-saving difference to OF NEW YORK ILY OF ZACHARY BAUMEL—SUP- many patients. IN THE HOUSE OF REPRESENTATIVES PORT H.R. 1175 There are 213 members of the Bay Medical Tuesday, May 4, 1999 Center Auxiliary. They come from all walks of life, and work throughout the year. Many HON. DAVID DREIER Mr. FORBES. Mr. Speaker, I rise today to honor a humanitarian, a true leader, and my members have had personal exposure to the OF CALIFORNIA personal mentor, Michael McGarvey, Jr., a services of Bay medical Center, and have IN THE HOUSE OF REPRESENTATIVES joined the Auxiliary as their way of saying veteran Long Island scout master and post- Tuesday, May 4, 1999 thanks for vital services. Each member appre- man who passed away at the age of 80. ciates the importance of the Center, and Mr. DREIER. Mr. Speaker, on June 11, The first time I met Michael, I was im- knows that it takes a network of caring people 1982, Zachary Baumel, an American citizen pressed and impacted by his manner. He was such a gentle and instructive person, espe- to provide quality health care. Each and every serving in the Israeli army, was captured along cially for me as a young kid attending member wants to be a part of that network. with four other members of his tank battalion Mr. Speaker, as we look for champions in a battle with Palestinian and Syrian forces Confraternity of Christian Doctrine (CCD) les- around the nation, it is most fitting that we rec- near the Lebanese town of Sultan Yaqub. sons at the Immaculate Conception hall in ognize the members of the Bay Medical Cen- While two of the captured soldiers were later Westhampton Beach. In our community he was known as the ter Auxiliary as champions for their commu- released, Baumel and two other MIAs remain grandfather of scouting. Michael was an adult nity. I urge you and all of our colleagues to unaccounted for, despite evidence that they Scout leader for more than 47 years. He rose join me in congratulating President Lucy Horak were probably captured alive. Like any parents to the post of commissioner of the Suffolk and Past President Linda Grube, along with all living through the nightmare of a missing child, County Council, Boy Scout of America, and of the other most valuable members of the Zachary's parents, Yona and Miriam Baumel, regional chairman of the Catholic Committee have been unrelenting in the search for their Bay Medical Center Auxiliary, on their suc- on Scouting. He was so enthralled with scout- son. cess, and in wishing them many more producing that he attend board meetings until a few The Baumels have met with officials around tive years to come. months before his death last week after a long the world to follow up on leads provided by f illness. various individuals claiming to know of REPORT FROM SHELBY COUNTY In his time with scouting he was recognized Zachary's whereabouts. Unfortunately, they with numerous citations, including one for HON. DAVID M. McINTOSH have yet to reach any sort of closure. While I service to the Catholic youth of Long Island sincerely hope that their personal search represented to him by Bishop John McGann of OF INDIANA unites them with Zachary, I believe that the the Diocese of Rockville Centre. He also re- IN THE HOUSE OF REPRESENTATIVES U.S. government should make every effort to ceived a Pius X citation for teaching catechism Tuesday, May 4, 1999 determine Zachary's fate and help bring peace to the Immaculate Conception Church Mr. MCINTOSH. Mr. Speaker, I rise today to to the Baumel family. H.R. 1175, which would Confraternity in Westhampton Beach, where I give my ``Report from Indiana'' where I honor require the State Department to step up efforts was his student. distinguished Hoosiers whom are actively en- in locating and securing the return of Zachary Born in Akron, Ohio, he graduated from gaged in their communities helping others. Baumel, as well as other Israeli soldiers miss- East Akron High School and came to New Mr. Speaker, it has always been my strong ing in action, is a step in that direction. I have York in 1939 to attend the New York World's belief that individuals and communities can do cosponsored this important legislation, and I Fair in Flushing and visit with his sister, Mar- a better job of caring for those who need help urge my colleagues to support me in this ef- garet Kennedy. His sister introduced him to in our society than the federal government. fort. her friend, the former Lillian Langguth of Man- The wonderfully kind and committed Hoosiers f hattan. They were married shortly thereafter whom I have met traveling around Indiana and remained so for 56 years. PAMELA CRUZ RECEIVES THE have not changed my view. They moved to Westhampton, Long Island PRUDENTIAL SPIRIT AWARD Ruthie and I have met hundreds of individ- in 1955, where they expanded Bide-A-Wee uals who are committed to making our com- Home, the animal adoption center which they munities a better place in which to live and HON. HEATHER WILSON managed for 18 years. They were especially raise our childrenÐwe call them ``Hoosier He- OF NEW MEXICO known for taking in pets that were left over roes''. IN THE HOUSE OF REPRESENTATIVES from the summer vacationers. After that, Mi- I recognized this genuine Hoosier Hero in Tuesday, May 4, 1999 chael worked in the Riverhead Post Office Shelby County at a Lincoln Day dinner until he retired six years ago at age 74. speech. He's Assistant Police Chief Bill Mrs. WILSON. Mr. Speaker, I wish to bring I was moved by the commitment I witnessed Dwenger. His devotion to his community has to your attention a young woman in our com- Michael and Lillian have for the children of our been unfailing and why Bill epitomizes a ``Hoo- munity, Pamela Cruz, who has been named community. They also loved their church, and sier Hero''. one of New Mexico's top youth volunteers for lived the daily example of charity and love for While serving as a detective, Bill pursued 1999 in The Prudential Spirit of Community their neighbors. In this time of distance be- primarily on his own time the Shirley Sturgill Award. tween our children and their parents and murder case that had been hanging over Shel- Pamela's volunteer efforts truly reflect the church, Michael was a breath of fresh air. In byville for seven years. Due to his persever- spirit of community. She visits a local nursing many ways, he has helped shape my own life ance, the murderer was caught, tried, and home twice a week to arrange entertaining ac- and I wish I could emulate his wonderful ex- convicted to a life term. His hard work allowed tivities for the residents. Pamela recognizes ample. his neighbors to breathe a little easier knowing that the residents have contributed to our Michael will be remembered as the ultimate that their community was safe. community and should not be forgotten. By Scouter, where he brought to the position of Bill also serves on the Board of Community showing affection and being consistent with commissioner a level of dignity and respect Corrections as well as the Shelby County her visits, she has gained the trust of the nurs- that could be used as the role model for all Youth Shelter which provides a safe haven for ing home residents. Further, Pamela has re- volunteer leaders. To the people of Long Is- abused kids. Bill doesn't help children for the cruited other young people in Albuquerque to land Michael will be remembered as a Scout- pay, which is zilch, he does it for the smiles volunteer at the nursing home. She is a won- master, Postman, animal sanctuary provider, and laughter. Bill's work has given so many derful example of reaching out to others to and a neighbor that was always willing to offer people the most precious gift possible, hope make our entire community a better place to a helping hand regardless of the situation. To and peace of mind. You are a true hero in my live. me he will be remembered as a person that book doing good work for others with no other Pamela is definitely one of America's top had a profound effect on the way I conduct motive than Christian charity. youth volunteers. Join me in thanking Pamela myself in my life. Bill Dwenger deserves the gratitude of the Cruz for her contributions to old and young Colleague, Michael's warmth and dedication county, state, and nation, and I thank him here alike in Albuquerque, New Mexico. to the youth will be surely missed. CONGRESSIONAL RECORD — Extensions of Remarks E841 CONGRATULATIONS TO THE UNI- ON THE CONTINUING STEEL David, an electrical engineer. They were mar- VERSITY OF FLORIDA WOMEN’S CRISIS ried in 1932 and remained in the Bronx for SOCCER TEAM forty-one years until his death in 1973. In HON. DENNIS J. KUCINICH 1975, she moved to Staten Island to be near her daughter, son-in-law and grandson. It was HON. KAREN L. THURMAN OF OHIO IN THE HOUSE OF REPRESENTATIVES then last that she began her long career as a OF FLORIDA volunteer, which continues to this day. She is IN THE HOUSE OF REPRESENTATIVES Tuesday, May 4, 1999 truly a source of inspiration to all who know Tuesday, May 4, 1999 Mr. KUCINICH. Mr. Speaker, I rise today to her. call upon the other body to pass H.R. 975, the Mr. Speaker, I ask my colleagues to join me Mrs. THURMAN. Mr. Speaker, I rise today steel import limitation bill. The House passed in wishing a happy 90th birthday to Betty to honor the University of Florida Women's this bill by an overwhelming margin because Adelstein. Soccer Team. The Gators brought home the the policy of this Administration has failed to f 1998 NCAA Women's Soccer Championship protect the American steel industry and its in only their fourth year of existence. Women's workers from unfair competition. But a bill TRIBUTE TO SAINTS CONSTANTINE soccer is a relatively new competitive sport. does not become a law without votes from AND HELEN GREEK ORTHODOX But you would never have known that looking both Houses of Congress. CHURCH at the way these women played on Sunday, While America waits for the other side to December 6. vote on H.R. 975, steel imports have begun to HON. HERBERT H. BATEMAN That's the day these well-honed athletes will climb again. This should be an important re- OF VIRGINIA remember for the rest of their lives. They won minder that nothing the Administration is pur- IN THE HOUSE OF REPRESENTATIVES the championship game against the University suing adequately limits unfairly low priced Tuesday, May 4, 1999 of North Carolina before a record crowd of steel imports. Though the Administration is in- more than 10,500 fans. The pressure was effective in preserving the American steel in- Mr. BATEMAN. Mr. Speaker, I rise today to really on to beat the Tar HeelsÐwell recog- dustry, the Administration is actively defending recognize the First District of Virginia's Hel- nized for their 70-match unbeaten streak and the American banana industry in a trade dis- lenic community as it celebrates the 50th anni- numerous NCAA tournament wins. pute with Europe. But does the banana indus- versary of Saints Constantine and Helen Some people may have considered the try employ 160,000 American workers? No. Greek Orthodox Church in Newport News. Gators the new kids on the block. But they Does nearly every state in the Northeast and Greek immigrants have lived and worked on were out to prove themselves. And in doing Southeast and Southwest have a banana in- the Virginia Peninsula from as early as 1900. so, the Gators became the youngest program dustry? No. Are foreign bananas crowding out From its humble beginnings to today, the this decade to win a title. The program was the American banana business in the U.S.? Greek community has played a significant role formed only four years ago by coach Becky No. Those facts have not stopped the Admin- in the growth and prosperity of the Virginia Pe- Burleigh. She also made history. She became istration from pulling out every stop to protect ninsula. It also has established a number of the first woman head coach to win an NCAA a banana industry that does not exist in Amer- associations and organizations for its mem- soccer championship. ica. bers, which add to the strength of the community as a whole. The benefits of such associa- Following the winning game, the Palm Bananas did not build America. Steel did. tions are innumerable. Beach Post quoted Burleigh saying, `Ì can't The only practical solution to the steel import In 1929, a small group of Greek-American believe it.'' The coach's reaction clearly de- crisis is to make H.R. 975 into law. men on the Peninsula organized the Woodrow scribes her excitement. But I would like to f Wilson Chapter of the American Hellenic Edu- clarify the record. This talented woman knew TRIBUTE TO BETTY ADELSTEIN cational and Progressive Association (AHEPA) all along her team could do it. When she start- while a group of Greek-American women or- ed recruiting for the squad's first season, she ´ ganized the Greek Women's Penelope Soci- told her young freshmen players they would HON. JOSE E. SERRANO ety, an independent organization dedicated to go to the final Four by graduation. And that OF NEW YORK community service. The Greek community happened. IN THE HOUSE OF REPRESENTATIVES soon began meeting regularly at St. Paul's Burleigh's fine eye for recruiting talent and Tuesday, May 4, 1999 Episcopal Church on 34th Street in Newport her ability to mold and inspire took these Mr. SERRANO. Mr. Speaker, I rise today to News and by 1934 a constitution was drafted women to the top. In January, Burleigh was pay tribute to Mrs. Betty Adelstein, an out- to govern the growing community. The Hel- named coach of the year by the National Soc- standing individual who has devoted her life to lenic Educational Society also was formed in cer Coaches of America Association. Before her family and to serving the community. Mrs. 1934. This organization served as a commu- that, the same association named her the Adelstein will turn 90 on Wednesday and cele- nity board to oversee the education of the coach of the year for the Southeast region. brated May 2, 1999 at a party given her family young. And I'm sure there's much more recognition and friends. In 1944, a committee was formed to de- coming her way and the Gators' way in the fu- She is a vibrant, dynamic, caring woman velop plans to build a church. Within three ture. who drives to St. Vincent Hospital three days years, ground was broken on land near the I want to congratulate Burleigh and her a week to volunteer in the office of the Direc- Victory Arch in Newport News and Saints coaching team: Assistant Coaches Victor tor of Pediatrics. She has accumulated over Constantine and Helen was completed by Campbell and Tiffany Thompson, Volunteer 10,000 hours of volunteer service at the hos- 1949. Then Archbishop AthenagorasÐlater Coach Matthew Mitchell, Manager Scott pital and, during the past twenty years, she PatriarchÐparticipated in the dedication of the Barbee, and Athletic Trainer Michael Duck. has given of herself and her time to various church. At that time, the congregation num- I also want to individually congratulate the Staten Island organizations. Before moving to bered 50 families. There are more than 1,000 entire team: Meredith Flaherty, who was Staten Island, she spent nearly fifty years as members of the church today. named the tournament's Defensive Most Valu- a resident of the Bronx. Soon after the Saints Constantine and able Player, Danielle Fotopoulos, who was Mr. Speaker, Mrs. Adelstein was born in Helen was built, a Philoptochos Chapter was named the tournament's Offensive Most Valu- New Britain, Connecticut on May 5, 1909, a formed to assist the needy on the Peninsula. able Player, Danielle Bass, Erin Baxter, first generation American. From the age of This chapter is still in existence and the major- Keisha Bell, Christie Brady, Jill DiBerardino, five, she helped sell newspapers in her fa- ity of the church's contributions to charitable Kerri Doran, Erin Gilhart, Karyn Hall, Michelle ther's candy store. At fourteen years of age, organizations on the local, regional, national Harris, Jordan Kellgren, Genie Leonard, Alexis after the shop was closed, she was taken out and international levels originates from this MacKenzie, Kelly Maher, Heather Mitts, of school and brought to New York to help in group. Adrianne Moreira, Lisa Olinyk, Angie Olson, the vegetable store her father opened there, As the number of Greek families in the com- Lynn Pattishall, Melissa Pini, Renee Reynolds, leaving her mother, 4 brothers and a sister be- munity began to grow, so did the need for Andrea Sellers, Whitney Singer, Jill Stevens, hind. When she was sixteen, the family moved more space. In 1958, three school rooms were Katie Tullis, Abby Wambach, Tracy Ward and to the Bronx from New Britain. added to the church to provide an area for Sarah Yohe. Mrs. Adelstein finished high school at night. Sunday school classes. This provided both re- Go Gators! Several years later, she meet her husband, ligious and language education for the children E842 CONGRESSIONAL RECORD — Extensions of Remarks May 4, 1999 and any interested members of the Peninsula Michael is one of the six young students distinguished Hoosiers who are actively en- community. These efforts enhanced the spirit being honored today at the AAA's School gaged in their communities helping others. of the community by encouraging cultural Safety Patrol Lifesaving Award Ceremony in Mr. Speaker, it has always been my strong identification. Washington, D.C. This year marks the 50th belief that individuals and communities can do By 1966, land was purchased on Traverse anniversary of the Lifesaving Award, which a better job of caring for those who need help Road in Newport News to build a community recognizes those patrols who risked their own in our society than the federal government. center and a new church. The Hellenic Com- lives to save the lives of others. More than The wonderfully kind and committed Hoosiers munity Center opened in 1975 and is the cen- one-half million children serve as patrols at who I have met traveling around Indiana have terpiece of the Greek community. It also is 50,000 schools. not changed my view. one of the largest gathering places available It is a special privilege for me to represent Ruthie and I have met hundreds of individ- for groups to meet on the Peninsula. I, myself, Michael in the U.S. House of Representatives. uals who are committed to making our com- have used the center for several functions. Our halls here are filled with the statues and munities a better place in which to live and Ground was broken for a new church in July memories of American men and women who raise our childrenÐwe call them ``Hoosier He- of 1981 and within a year services were being have unselfishly given to others. I am pleased roes''. today to submit this tribute to the CONGRES- held in the new building. It was consecrated I recognized this genuine Hoosier Hero in SIONAL RECORD, to ensure that Michael's brav- by Archbishop Iacovos in 1984. Adams County, Indiana at a Lincoln Day din- ery is also recorded for history. Since 1967, Saints Constantine and Helen ner speech. He is Alan Converset, who is a has held an annual festival to share the cul- f sales manager at WZBD Adams County ture and traditions of the Greek community THE 24TH ANNIVERSARY OF THE Radio. By working tirelessly on behalf of the with Peninsula. Having attended the event for TRAGIC FALL OF SOUTH VIET- less fortunate, Alan epitomizes a ``Hoosier many years, I know first hand the enthusiasm NAM TO COMMUNISM Hero''. of our community for the celebration. I also Alan served as the president of the Decatur have witnessed the success of many of Saints Rotary Club and Chairman of the United Way Constantine and Helen's programs. HON. LORETTA SANCHEZ golf outing to raise money for those who need I take great pride in being a member of the OF CALIFORNIA a helping hand from someone who cares. He Order of AHEPA. My wife, Laura, is equally IN THE HOUSE OF REPRESENTATIVES also works on the March of Dimes Walk Amer- proud of being a member of the Daughters of Tuesday, May 4, 1999 ica Committee. Penelope. It is truly an honor to represent this Ms. SANCHEZ. Mr. Speaker, April 30, 1975 Alan's work has given so many people the outstanding segment of the community in Con- marked the beginning of a treacherous boat most precious gift possible, hope. He doesn't gress. journey for many Vietnamese who sought ref- do it for the pay which is zilch; he does it for Again, I wish to commend both Saints Con- uge in an unknown land and an uncertain fu- the smiles and laughter. You are a true hero stantine and Helen Greek Orthodox Church ture. These individuals risked everything for a in my book, doing good work for others with and the Hellenic community on the Virginia chance to live freely and provide better oppor- no other motive than Christian charity. Peninsula. They nourish each other and make tunities for their children and families. I rise Alan Coverset deserves the gratitude of the possible the success and contributions of today to pay special tribute and recognize the country, state, and nation, and I thank him each. valiant efforts to our Vietnam War Veterans here today on the floor of the House of Rep- It is my hope and expectation that the Hel- and to the Vietnamese who fought and died resentatives. lenic community on the Peninsula will continue for freedom and democracy in Viet Nam. to succeed, and that the next 50 years will be f Earlier this month, I traveled to Viet Nam to as, or more, notable than the last. meet with representatives of the U.S. and Vi- A.J. HERRERA SELECTED AS f etnamese government to express my concern PLAYER OF THE YEAR FOR PA- RADE MAGAZINE’S 21ST ANNUAL A TRIBUTE TO MICHAEL T. for the lack of human, religious and political HIGH SCHOOL BOYS SOCCER WILTSIE rights. During my visit, I met with several prominent human rights activists including Dr. TEAM Nguyen Dan Que, Tran Huu Duyen, the Ven- HON. DAVE CAMP erable Quang Do and the Archbishop of Sai- HON. HEATHER WILSON OF MICHIGAN gon, Pham Minh Man. I learned first hand that OF NEW MEXICO IN THE HOUSE OF REPRESENTATIVES despite the release of several prisoners of IN THE HOUSE OF REPRESENTATIVES Tuesday, May 4, 1999 conscience under a presidential amnesty in September 1998, public criticism of the gov- Tuesday, May 4, 1999 Mr. CAMP. Mr. Speaker, I rise today to pay ernment by dissidents is still not tolerated. The Mrs. WILSON. Mr. Speaker, I wish to bring tribute to Michael T. Wiltsie, a young man few who do speak out publicly and advocate to your attention a young man in our commu- from the 4th Congressional District whose peaceful reform continue to be harassed and nity, A.J. Herrera, who has been selected bravery I commend and whose actions I would imprisoned. Player of the Year on Parade magazine's 21st like to call to the attention of my colleagues in As we recently witnessed, the protest that the U.S. House of Representatives. has taken place in Little Saigon, Orange annual High School Boys Soccer Team. On Sept. 2, 1998, Michael was serving as a County, California is a reminder to all Ameri- A.J. Herrera has represented the United safety patrol officer near Ganiard Elementary cans how sacred human rights, freedom and States in France, Slovakia, and Russia as a School in Mount Pleasant, Mich. He and an democracy are. For many, the display of the three-year member of the U.S. National Team. adult crossing guard were stationed at the cor- communist flag is a reminder of the pain and He has hopes of playing on the U.S. Olympic ner of Broadway and Adams streets, a busy sufferings after 1975. Team. In discussions regarding his soccer intersection. Mr. Speaker, as we reflect on this tragic day ability, A.J. references the support he has re- What happened next could have been a it is our duty as Members of Congress to ceived from family, friends, teammates, and tragedy, but instead is the story of an heroic honor the memory of the individuals that coaches. Although he has an athletic gift to 12-year old whose quick thinking effectively fought for liberty and democracy in Viet Nam. play soccer, A.J.'s No. 1 priority is earning a saved the life of a 7-year-old boy. f college degree. The adult crossing guard had just walked to A.J. Herrera is an example of young people the center of the street to stop traffic when the REPORT FROM ADAMS COUNTY throughout our communities who are involved 7-year old walked around Michael's out- in sports and other extracurricular activities stretched arms to follow the crossing guard. At HON. DAVID M. McINTOSH that build character and citizenship. Learning that moment, a truck making a left-hand turn OF INDIANA lessons about setting and achieving goals, failed to stop at the stop sign and passed be- IN THE HOUSE OF REPRESENTATIVES staying physically fit and being part of a team. tween Michael and the crossing guard. Mi- The community is proud of his accomplish- chael reached out and grabbed the little boy Tuesday, May 4, 1999 ments. Join me in recognizing A.J.'s achieve- by his backpack, pulling him to safety just as Mr. MCINTOSH. Mr. Speaker, I rise today to ments and contributions to Albuquerque, New the truck sped by. give my ``Report from Indiana'' where I honor Mexico. CONGRESSIONAL RECORD — Extensions of Remarks E843 A TRIBUTE TO THEODORE TRIBUTE TO THE GRAN PARADA would you like to eat today, Shawn?’’ He BUTCHER DOMINICANA DE EL BRONX, INC. said he didn’t care, so we went where I want- ON THEIR 10TH ANNIVERSARY ed to go. Once we got there, Shawn started to complain like you wouldn’t believe, and I thought to myself, what right do you have to HON. JOSEPH R. PITTS HON. JOSE´ E. SERRANO complain? I gave you a choice, and you de- OF PENNSYLVANIA OF NEW YORK ferred to me. In America today, the constitu- IN THE HOUSE OF REPRESENTATIVES tion and our fellow citizens are asking us, IN THE HOUSE OF REPRESENTATIVES ‘‘Where do we want to go today?’’ Unfortu- Tuesday, May 4, 1999 nately, the majority of Americans are say- Tuesday, May 4, 1999 Mr. SERRANO. Mr. Speaker, it is an honor ing, ‘‘I don’t care’’. However, if you read the for me to pay tribute to a great organization, news, the majority of people do care. They Mr. PITTS. Mr. Speaker, today I rise to are just not motivated enough to do any- the ``Gran Parada Dominicana de El Bronx, honor a faithful Chester County man upon his thing about it. Oh sure they like to complain Inc.'' which celebrates its tenth anniversary of retirement from West Chester University, once they see where the country has ended celebrating Dominican culture in my South up, but complaining can’t move a speck of where he served as a faculty member and ad- Bronx Congressional District today, Monday, dust and it isn’t going to help our country. ministrator. Mr. Theodore Butcher's contribu- May 3rd, 1999. Democracy is based around participation, tions to his family, community, and country de- The Gran Parada Dominicana de El Bronx, and it is only successful when used properly. serve to be noted. Inc. was created on May 3, 1990. Each year Like a car’s engine, America can run using thousands of members and friends of the Do- only part of its cylinders, but in order for Over the past thirty years, Mr. Butcher has America to reach its highest potential, all worked tirelessly to ensure fair and equitable minican community march from Mt. Eden and parts must be working at the same time. treatment of people with regards to education, 172nd Street to East 161st Street and the Democracy is a tool just waiting to be race, religion, economics and disabilities. He Grand Concourse during the annual Great Do- picked up, but like any other tool it is use- minican Parade and Carnival of the Bronx. less until someone puts it to work. Through- has given of himself both personally and finan- Under its Founder and President, Felipe out time, it has been used by a plethora of cially to the causes in which he believes and Febles, the parade has grown in size and individuals, and now it is my time and the time of my peers. It is time for us to accept for which he works. Through his community splendor. It now brings together an increasing service with the West Chester Community the torch of America that is slowly being number of participants from all five New York passed down. We cannot let the flame die, so Center, the Community Housing Resource City boroughs and beyond. we must hold it high and let it light the way Board, the Fair Housing Council, Mental Mr. Speaker, as one who has participated in for the world. For many of my peers, action Health/Mental Retardation, The Community the parade in the past, I can attest that the ex- in Democracy will begin as they cast their Service Council of Chester Country, The citement it generates brings the entire City to- votes in this fall’s election. While I’m not Swope Foundation, the West Chester Rotary gether. It is a celebration and an affirmation of able to join others in voting at this election life. It feels wonderful to enable so many peo- because of my age, I have taken my own road Club, the YMCA, NAACP and on the original to ensure that the tool of Democracy does board of the Chester County Water Authority. ple to have this experienceÐone that will not sit idle. Since voting was not an option change the lives of many of them. It is always Clearly, this is a man with a deep commit- for me, I wanted to ensure that those who an honor for me to join the hundreds of joyful ment to his community. I can venture to say did have the right to vote were making use people who march each year and to savor the of it. I approached the county clerk and ar- that Mr. Butcher has added much value to variety of their celebrations. There's no better ranged it so that I could be their extension. West Chester University and to Chester Coun- way to see our Bronx community. Over a course of three days, I worked for ty, Pennsylvania. I am pleased to honor him The event usually features a wide variety of them and registered over fifteen new high today, and would like to submit for the entertainment for all age groups. Past years' school voters. While this really isn’t com- RECORD a letter from his daughter Joacqueline parable with running for office, it was some- festivals included the performance of Meren- thing I could do to help my country. This ac- Butcher. My congratulations and best wishes gue and Salsa bands, crafts exhibitions, and tion was just another step in my maturation go with this community servant. food typical of the Dominican Republic. as a citizen of democracy. In addition to the parade, President Febles I began my service years ago, when as a f and many organizers each year provide the child I first began to read. At first I only community with nearly two weeks of activities read simple stores, but as the years passed, I IN SUPPORT OF THE NATIONAL to commemorate the contributions of the Do- began to read and hear a much grander tale; LETTER CARRIERS FOOD DRIVE minican community, its culture and history. one of a nation that rose up around a noble theory, a nation that was to be ruled by the Mr. Speaker, it is with enthusiasm that I ask people. I learned of America. I thrived on my colleagues to join me in paying tribute to this utopian story for many years, but once HON. LOIS CAPPS the Gran Parada Dominicana de El Bronx, Inc. again as time passed the story got more and in wishing the Committee continued suc- complex. I learned of the mistakes America OF CALIFORNIA cess. and its people had made, and I learned of the IN THE HOUSE OF REPRESENTATIVES f great people who struggled to rectify these mistakes. I have absorbed many people’s Tuesday, May 4, 1999 TREVOR P. SCHMIDT WINS THE opinions over the years, and now I have my VFW’S 1999 VOICE OF DEMOC- own and I know that I can give them voice. Mrs. CAPPS. Mr. Speaker, today I rise to RACY BROADCAST Langston Hughes once wrote, ‘‘I too sing pay special tribute to our letter carriers in SCRIPTWRITING CONTEST America, I too am America.’’ This is where I Santa Barbara, California. On Saturday May 8, stand now and forever, I will sing my voice along with my fellow Americans and though our local letter carriers will be participating in HON. BILL BARRETT my voice may be lost in the chorus at times, the seventh annual ``Stamp Out Hunger'' food OF NEBRASKA I will keep singing, keep supporting my na- drive, sponsored by the National Association tion. A person singing a solo is limited to IN THE HOUSE OF REPRESENTATIVES of Letter Carriers. his/her options, but a choir combines each Tuesday, May 4, 1999 individual’s choices into a complex splendor. Our local letter carriers will be joining their Choral music depends on each member sing- fellow letter carriers in more than 10,000 cities Mr. BARRETT of Nebraska. Mr. Speaker, I'd like to call my colleagues' attention to the fol- ing his or her own distinctive part. Some- and towns across the nation in collecting non- times the chords clash, and sometimes the lowing script written by my constituent, Trevor perishable food items and donations along parts slide into near unison; always each P. Schmidt, a senior at Chadron High School their postal routes for local food banks. The part must be heard. So too with democracy, in Chadron, Nebraska. Trevor won the VFW's I must speak my opinion, but I also must Stamp Out Hunger food drive is expected to 1999 Voice of Democracy broadcast hear and accept my fellow citizen’s opinion help feed nearly thirty million needy children scriptwriting contest for Nebraska. and recognize that my nation will be nothing and adults in our communities. with just my part. One thing that is of key ‘‘MY SERVICE TO AMERICA’’ On behalf of the people on the Central importance though is that I must know my 1998–99 VFW VOICE OF DEMOCRACY SCHOLARSHIP part; therefore, my quest for knowledge Coast and across the nation, I owuld like to COMPETITION must never end. I must also encourage those thank our letter carriers for their leadership in The other day my friend Shawn and I went around me to speak their mind. Even though this very worthy cause. out to lunch. I was driving so I said, ‘‘Where I may not like what I hear, it is an essential E844 CONGRESSIONAL RECORD — Extensions of Remarks May 4, 1999 part for the success of democracy. This is Chong Padula Scholarship. The first such life, more than 20,000 individuals received an how I will serve my country. I will learn all award is scheduled to be presented in the organ transplant in 1996. that I can, I will take in others’ opinions and year 2000. However, each year, the number of organs learn from them, and then without reserva- The idea was first proposed by Lola Sablan- donated in the United States falls tragically tion I will speak my mind and let my nation know how I feel. I too am America, and I am Santos, the executive director of the Guam short of the need. Sadly, more than 55,000 not about to let anyone forget. Communications Network. Contrived with the people are on the national organ transplant full support of the Padula/Roberto family, the waiting list and about 10 will die each day as f annual event is a celebration of the life and the waiting lists continue to grow. REPORT FROM FLOYD COUNTY accomplishments of the late Connie ``Tan Organ donation is increasing, but not fast Chong'' Padula. Tan Chong was born on May enough to come close to meeting the need. In HON. DAVID M. McINTOSH 8, 1917, on the island of Guam. She moved recent years, progress has been made in cre- to the State of California and became a long- ating awareness of the need for organ dona- OF INDIANA time resident of Orange County, maintaining a tion. Most Americans indicate they support IN THE HOUSE OF REPRESENTATIVES home in Santa Ana from 1968 until 1992. organ donation. Nonetheless, only about 50 Tuesday, May 4, 1999 Her civic-mindedness, in addition to her percent of families asked to donate a loved Mr. MCINTOSH. Mr. Speaker, I rise today to kindness, generosity, and compassion, earned one's organs agree to do so. Moreover, thou- give my ``Report from Indiana'' where I honor her a very respected niche in her community. sands of opportunities to donate are missed distinguished Hoosiers who are actively en- Never one to keep to herself, Tan Chong vol- each year, either because families do not gaged in their communities helping others. unteered her services to a host of civic activi- know what their loved ones wanted, or be- Mr. Speaker, it has always been my strong ties ranging from church fundraisers to the cause potential donors are not identified for belief that individuals and communities can do manning of polling stations during elections. organ procurement organizations and their a better job of caring for those who need help As one of the founders of the Guamanian So- families are never asked. in our society than the federal government. ciety of Orange County, she spearheaded To address these barriers to donation, gov- The wonderfully kind and committee Hoosiers community activities which were almost al- ernment and private sector partnerships must who I have met traveling around Indiana have ways held at the Garden Grove Community be focused on * ** not changed my view. Center. She was widely known for her great * * * that we from government and the pri- Ruthie and I have met hundreds of individ- support to Chamorro community organizations vate sector. But most importantly, we need uals who are committed to making our com- throughout the State of California and for her volunteers willing to share the gift of life. To munities a better place in which to live and willingness to be of assistance to those in achieve this goal, there must be an emphasis raise our childrenÐwe call them ``Hoosier He- need. Sadly, she passed away in Orange on increasing consent to donation and refer- roes''. County on June 19, 1992. rals to organ procurement organizations. I recognized this genuine Hoosier Hero in This year's event will be held on the anni- However, we must also ensure that our so- Floyd County, Indiana at a Lincoln Day dinner versary of her 82nd birthday. All honorees will cial and work environments are amenable to speech. He's Kevin Boehnlein, who is a local receive a medallion especially crafted for this persons serving as donors. That is why I urge director here for junior achievement and annual event by Chamorro artist Ron Castro support of my legislation H.R. 457, the Organ whose motto is ``Looking out for the future of on Guam and the top award will be presented Donor Leave Act, which would provide federal the community''. By working tirelessly for his to the individual chosen as ``Humanitarian of employees an additional 7 days to serve as a community, Kevin epitomizes a ``Hoosier the Year.'' bone-marrow donor, and 30 days to serve as Hero''. This year's awardees in the `Àdult'' cat- an organ donor. Kevin may be young but he has a giant's egory are George Afleje, Maria ``Kitalang'' Passage of this measure would stand as a heart and he cares deeply about his commu- Borja, Heidi Chargualaf, Carmen Cruz, Pacing model for private employees to amend their nity. Kevin is in the Jeffersonville rotary club, Cruz, Perci Flores, Maria Laguana, Joaquin personnel policies to grant additional paid and has helped build homes for the needy as Naputi, Ann Pangelinan, Joe Pangelinan, leave to living donors who give bone marrow, a member of Habitat for Humanity. He is also Celia Perez, Suzanne Robert, Juana Sanchez, a kidney, or other organs. very active in his church. Kevin and his wife Juanita ``Nita'' Santos, Ernie Tajalle, and Maria Without donors, transplant surgeons cannot Kristen serve as a leadership team at Oak Tajalle. In the ``Youth'' category, Michael save even one life. With just one donor, they Park Baptist Church. They serve as coun- Maguadog, Sarah Mesa, Stefanie Mesa, can save and improve as many as 50 lives. I selors to young couples to help them maintain Bryanna ``Berry'' Quenga, Nikki Quenga, Mi- believe that we must all pledge to join the na- a strong love and faith. chael Van Langeveld, and Tara Van Meter tional community of organ and tissue sharing Kevin's work has given so many people, the were selected. The honor of being chosen as by closing the gap between donated organs most precious gift, hope. He doesn't do it for the first recipient of the Tan Chong Padula and tissue and the people who need them. the pay, which is zilch; he does it for the Humanitarian of the Year Award goes to With this commitment, we pave the way for smiles and laughter. You are a true hero in my Juana Sanchez. our nation to be able to answer the hopes and book doing good work for others with no other On behalf of the people of Guam, I con- needs of those who now wait too long for a motive than Christian charity. gratulate the organizers, honorees, and, most second chance at life. Kevin Boehnlein deserves the gratitude of of all, the Humanitarian of the Year awardee I urge support of H.R. 457 and challenge all the county, state, and nation, and I thank him of the 1st Annual Tan Chong Padula Humani- Americans to say ``yes'' to organ and tissue here today on the floor of the House of Rep- tarian Awards. Miles away from their home is- donation. resentatives. land of Guam, these folks managed to com- f f bine their resources in order to benefit the community in a manner that best represents H.R. 1660, PUBLIC SCHOOL HUMANITARIAN AWARDS our island culture. Keep up the good work! Si MODERNIZATION ACT OF 1999 Yu'os Ma'ase'. HON. ROBERT A. UNDERWOOD f HON. CHARLES B. RANGEL OF GUAM OF NEW YORK ORGAN DONATION IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES Tuesday, May 4, 1999 HON. ELIJAH E. CUMMINGS Tuesday, May 4, 1999 Mr. UNDERWOOD. Mr. Speaker, I would OF MARYLAND Mr. RANGEL. Mr. Speaker, today, along like to take this occasion to recognize the or- IN THE HOUSE OF REPRESENTATIVES with many of my colleagues, I am introducing ganizers and honorees of the 1st Annual Tan legislation, entitled the Public School Mod- Chong Padula Humanitarian Awards. The Tuesday, May 4, 1999 ernization Act of 1999, which consists of two awards night will be held on May 8, 1999, at Mr. CUMMINGS. Mr. Speaker, recently, we education tax incentives that are contained in the Garden Grove Community Center in Gar- celebrated National Organ and Tissue Donor the President's budget recommendations for den Grove, CAÐan endeavor to recognize Awareness Week and today I recognize the fiscal year 2000. I am very pleased that 88 and honor individuals of Chamorro descent for medical advances that have made organ Members have joined me as cosponsors of volunteerism and service to the community. transplantation a viable treatment option. this needed legislation. I cannot imagine a bet- Proceeds from this event will fund the Tan Thanks to those who have given the gift of ter way to honor our teachers on ``Teacher CONGRESSIONAL RECORD — Extensions of Remarks E845 Appreciation Day'' than to work toward mod- grams, like the empowerment zone legislation, Today's bill includes a provision that would ernized schools, smaller classes, and other that provide targeted incentives to encourage extend the Davis-Bacon requirements to con- educational improvements in our public economic development in depressed urban struction funded under the new program. This schools. and rural areas. While these incentives are im- provision is consistent with the policy that Fed- I will continue to work with the Administra- portant, employers in the targeted areas as- erally-subsidized construction projects should tion to introduce the President's domestic ini- sert that they are unable to hire qualified indi- pay prevailing wage rates. The bill also in- tiatives that are within the jurisdiction of the viduals to work in the jobs created by the includes provisions designed to ensure that Ways and Means Committee. I also will con- vestment programs. local workers and contractors are able to par- tinue to urge consideration by the Congress of The bill speaks to this problem by extending ticipate in the construction projects. and enhancing the education zone proposal these important proposals. Amazingly, while the concept of investing in that was enacted on a limited basis in the The most important challenge facing this human capital goes unchallenged in debate, country today is the need to improve our edu- 1997 Taxpayer Relief Act. This program is designed to create working partnerships between elected leaders are still spending more of our cational system. Expanding educational oppor- nation's limited budget resources on back-end, tunities is crucial to our country's social and public and private entities to improve education and training opportunities for students punitive programs like law enforcement and economic well being. prisons, rather than front-end investments like I have a personal interest in improving the in high poverty rural and urban areas. education and training that can really pay off quality of education for all students. Through Some have argued that the Federal govern- in increased workforce productivity. the GI bill, this country made an investment in ment should have no role in assisting the pub- my education that provided me with a needed lic school system at the K through 12 level. I Unfortunately, these skewed priorities are second chance after the Korean War. I believe disagree strongly. The federal government his- present at the local level, too. New York City that we must give all public school children a torically has provided financial resources to spends $84,000 per year to keep a young second chance so that they can make a posi- the public school system. It has done so in man in Riker's Island Prison, yet only $7,000 tive contribution to society by making the most part by providing tax-exempt bond financing each year to educate a child in Harlem. of their abilities through educational opportuni- that enables State and local governments to In addition, improving opportunities in edu- ties. fund capital needs through low-interest loans. cation is a vital link in broader U.S. economic I am very excited that the President empha- The bill that we are introducing today, in many policy, including U.S. trade policy. Ensuring size education in his State of the Union ad- respects, is very similar to tax-exempt bond fi- that our education system is strong, and that dress and that his budget recommendations nancing. This bill does not require any addi- our children's education prepares them to take contain a comprehensive program to improve tional layers of bureaucracy at the Federal or advantage of the economic opportunities our our public school system. The bill that we are State level. It provides special tax benefits to society has to offer, is essential to ensuring introducing today contains two important tax holders of certain State and and local edu- that the benefits of trade and trade agree- provisions that will help modernize our public cation bonds. The procedures used to deter- ments extend more deeply and fully through- schools, reduce class sizes, and expand edu- mine whether bonds are eligible for those spe- out our society. cation-based training opportunities for students cial benefits are substantially the same as the procedures applicable currently in determining We must change our priorities. Let's invest most in need. in the future of this country through our chil- I recognize that these tax provisions alone whether a State or local bond is eligible for tax-exempt bond financing. dren. Let's bring the same zeal to encouraging are not the total answer to our country's need and educating our children that we now apply to improve our educational system. Therefore, I also want to be very clear that this bill supports our public school system. I believe that to punishment and incarceration. I also am a strong supporter of the other edu- improving our public school system should be The following is a brief description of the cation improvements included in the Presi- our highest priority. Approximately 90 percent provisions contained in our bill. They would dent's budget. Many children today are attending school in of the students attending kindergarten through cost approximately $3.3 billion over the first 5 grade 12 attend public schools. If we can find trailers or in dilapidated school buildings. We years. the resources to provide additional tax incen- cannot expect learning to occur in those envi- EDUCATION ZONE PROVISIONS tives, those incentives should be focused on ronments. Other students are forced into huge improving the public school system that serves A. Qualified Zone Academy Bonds classes, making it difficult for students to learn such a large segment of our student popu- Section 226 of the 1997 Taxpayer Relief Act and difficult for teachers to help students on lation. I have and will continue to oppose leg- provides a source of capital at no or nominal an individual basis. Using tax credits, this bill islation, such as the so-called ``Coverdell'' leg- interest for costs incurred by certain public would provide approximately $24 billion in in- islation, that diverts scarce resources away schools in connection with the establishment terest-free funds for school modernization from our public school system. of special academic programs from kinder- projects. This bill is a meaningful first step in The Republicans are promoting a change in garten through secondary schools. To be eligi- addressing the problem of crowded and dilapi- the tax-exempt bond arbitrage rules which ble to participate in the program, the public dated school facilities. they say is a meaningful response to the prob- school must be located in an empowerment Recent events have underscored the need lem of dilapidated and crowded school build- zone or enterprise community or at least 35 for increased school safety measures in many ings. Under current law, a school district percent of the students at the school must be public schools. While these are by no means issuing construction bonds can invest the eligible for free or reduced-cost lunches under the only answers, reducing class size and pro- bond proceeds temporarily in higher-yielding the Federal school lunch program. In addition viding safe and modern schools will help chil- investments and retain the arbitrage profits if the school must enter into a partnership with dren get off to the right start and will help the bond proceeds are used for school con- one or more nongovernmental entities. teachers more easily recognize and serve struction within two years. The Republican ar- those students who may need special atten- bitrage proposal would extend the period dur- The provision provides the interest-free cap- tion. In order for our children to learn, they ing which those arbitrage profits could be ital by permitting the schools to issue special must not be afraid to attend school. Safe earned from two to four years. The Republican bonds called ``Qualified Zone Academy schools are a necessityÐand a priority. In ad- proposal does not benefit those districts with Bonds.'' Interest on those bonds will in effect dition to smaller classes, this legislation will immediate needs to renovate and construct be paid by the Federal government through a provide the means for school districts to mod- schools. It benefits only districts that can delay tax credit to the holder. ernize other safety and educational features in completion of school construction for more The bill would increase the caps on the the public schools. than 2 years. It is inadequate at best. At amount of bonds that can be issued under the We must also do more to provide education worst, it may increase costs for those districts program as shown in the following table. The and training opportunities for students who do most in need because more bonds could be bill would also permit the bonds to be used for not go on to college. We have existing pro- issued earlier. new construction.

Year Current law Additions under bill Total issuance cap

1998 ...... $400 million ...... $400 million 1999 ...... $400 million ...... $400 million 2000 ...... $1 billion ...... $1.0 billion 2001 ...... $1.4 billion ...... $1.4 billion E846 CONGRESSIONAL RECORD — Extensions of Remarks May 4, 1999 The bill would make several technical modi- [In thousands of dollars] culture and the dire need for quick action on fications to the 1997 legislation. It would re- State Estimate Allocation the Supplemental Appropriations measure. peal the provision that restricts ownership of Alabama $373,179 There is perhaps no more timely or pressing Alaska 45,552 issue facing our nation's farmers and the leg- qualified zone academy bonds to financial in- Arizona 321,189 stitutions, it would change the formula used in Arkansas 191,361 islators who represent them in Washington, and I am grateful to have the opportunity to determining the credit rate, it would provide for California 3,029,203 participate in this discussion. quarterly allowances of the credit to coincide Colorado 203,299 Connecticut 195,615 The importance of agriculture to the families with estimated tax payment dates and permit Delaware 46,746 and economy of Illinois' 19th District cannot be credit stripping in order to improve the market- District of Columbia 113,625 overstated, and I am proud to serve on the ability of the bonds, it would require a max- Florida 1,337,671 Agriculture Committee, where I look forward to imum maturity of 15 years, rather than a max- Georgia 606,081 helping to shape our nation's agriculture pol- Hawaii 49,685 icy. Every one of the communities I represent imum maturity determined under a formula, it Idaho 55,825 would change the formula for allocating the Illinois 1,125,357 is deeply impacted when agriculture experi- national limit to make it consistent with the for- Indiana 326,773 ences tough times, and these are some of the toughest in recent memory. mula used in allocating the limit on qualified Iowa 135,205 Kansas 154,208 The pork industry is still reeling from a cri- school construction bonds, and it would pro- Kentucky 344,582 sis, and prices are low for other commodities vide an indefinite carryover of any unused Louisiana 596,956 that are critical to my district, such as corn credit. Maine 76,808 and soybeans. The Natural Resource Con- Maryland 351,517 servation Service in Illinois and many other B. SPECIALIZED TRAINING CENTERS Massachusetts 402,027 states is facing a major budget shortfall that The bill also includes a provision designed Michigan 1,001,250 Minnesota 266,123 will likely necessitate office closures or fur- to encourage corporate contributions to spe- Mississippi 327,445 loughs and has already resulted in the sus- cialized training centers located in empower- Missouri 386,832 pension of CRP technical assistance services ment zones or enterprise communities. A spe- Montana 62,924 that countless farmers depend upon. Farmers cialized training center is a public school (or Nebraska 82,857 are experiencing undue delays in receiving Nevada 90,274 special program within a public school) with an disaster assistance and other USDA pay- New Hampshire 44,910 ments, and Farm Service Agency offices academic program designed in partnership New Jersey 526,789 throughout the country are understaffed and with the corporation making the contribution. New Mexico 185,062 overworked. There is a limit of $8 million per empowerment New York 2,750,541 North Carolina 390,043 I urge my colleagues to recognize the ur- zone and $2 million per enterprise community North Dakota 46,746 gency of this situation and hope we can work on the amount of contributions eligible for the Ohio 948,239 together to find both short- and long-term solu- new credit. The limit would be allocated Oklahoma 270,223 tions to the problems that plague our agri- among contributors by the local official respon- Oregon 191,113 culture community. It seems clear to me, in Pennsylvania 1,007,919 fact, that one short-term solution has already sible for the economic development program Puerto Rico 636,673 in the zone or community. Rhode Island 81,320 been found, in the form of a supplemental ap- South Carolina 261,777 propriations bill that includes $152 million for QUALIFIED SCHOOL CONSTRUCTION BONDS South Dakota 47,922 USDA. This money will allow the Department The bill would also permit State and local Tennessee 396,843 to increase loan capacity by more than $1 bil- governments to issue qualified school con- Texas 2,149,680 lion at a time when conditions in the agri- Utah 84,796 struction bonds to fund the construction or re- culture economy have increased demand for Vermont 43,847 USDA's farm loan programs by 400%. The habilitation of public schools. Interest on quali- Virginia 317,458 funding will also provide desperately-needed fied school construction bonds would in effect Washington 285,098 temporary staffing assistance for FSA offices. be paid by the Federal government through an West Virginia 177,753 Wisconsin 418,781 Unfortunately, it has been two months since annual tax credit. The credit would be pro- Wyoming 43,236 the President submitted his supplemental vided in the same manner as the credit for DAVIS-BACON REQUIREMENTS spending request, and over a month since qualified zone academy bonds. The bill includes a provision that would ex- both houses passed their bills. Farmers are al- Under the bill, a total of $11 billion of quali- tend the Davis-Bacon prevailing wage require- ready in the fields planting crops and USDA is fied school construction bonds could be issued ments to construction funded under the new receiving 150 applications for loan assistance every day. Meanwhile, conferees have only in 2000 and in 2001. Half of the annual cap program. In order to ensure the marketability this week been appointed to begin crafting a would be allocated among the States on the of the tax-subsidized financing, the Davis- Bacon requirements would be enforced by the final supplemental measure, and there is no basis of their population of low-income chil- indication that this risk is being undertaken dren, weighted the State's expenditures per Department of Labor and not through disallow- ance of tax benefits. with the urgency it requires. We simply must pupil for education (the Title I basic grant for- The bill also requires governments partici- pass this legislation now. America's farmers mula). The other half of the annual cap would pating in the new program to give priority in are counting on their representatives in Con- be allocated among the hundred school dis- awarding contracts to contractors with local gress. We cannot let them down during this tricts with the highest number of low-income workforces and to require a priority for local time of crisis. children and that allocation would be based on workers for new hires. The bill contains modi- Again, Mr. Speaker, I want to thank Mr. each district's Title I share. Before making the fications to the Workforce Investment Act to BERRY for demonstrating his commitment to American agriculture and urging us to speak allocations described above, $200 million in ensure the availability of skilled local workers out on this important issue. 2000 and 2001 would be reserved for alloca- for the construction. f tion by the Secretary of the Interior for schools f THE SMART IDEA ACT OF 1999 funded by the Bureau of Indian Affairs. REGARDING THE STATE OF The following chart shows the aggregate AMERICAN AGRICULTURE amount of qualified school construction bonds HON. ZOE LOFGREN OF CALIFORNIA and qualified zone academy bonds that could HON. DAVID D. PHELPS IN THE HOUSE OF REPRESENTATIVES be issued in each State under the bill. The OF ILLINOIS Tuesday, May 4, 1999 total includes amounts allocated to large IN THE HOUSE OF REPRESENTATIVES Ms. LOFGREN. Mr. Speaker, I rise to intro- school districts in the State. An additional Tuesday, May 4, 1999 $750 million is reserved for allocations to other duce legislation that makes the point that Con- Mr. PHELPS. Mr. Speaker, let me begin by gress doesn't need to pit the needs of dis- school districts not in the largest 100 districts. thanking my colleague Mr. BERRY for gath- abled children against the needs of non-dis- ering us here to talk about the state of agri- abled children in meeting our commitments CONGRESSIONAL RECORD — Extensions of Remarks E847 with IDEAÐthe individuals with Disabilities In 1902, Lewelyn A. Nares and Charles A. REPORT FROM WHITLEY COUNTY Education Act. There are other alternatives Laton acquired land near Kingsburg known as available. As is often the case, Mr. Speaker, ``The Laguna De Tache''. Nares and Laton HON. DAVID M. McINTOSH this Republican-controlled House lacks imagi- transferred title of their holdings to ``Laguna OF INDIANA nation when confronting important issues. Lands Limited'' and Charles A. Laton soon IN THE HOUSE OF REPRESENTATIVES It is ironic that on National Teacher's Day disappeared from the local scene. Years later, we are pitting disabled children against their a man named T.J. Saunders, an Iowa native, Tuesday, May 4, 1999 non-disabled classmates. Instead of depriving brought a group of businessmen to the area Mr. MCINTOSH. Mr. Speaker, I rise today to our schools of important funds from other fed- forming the nucleus for the city of Laton. give my ``Report from Indiana'' where I honor eral education programs, as the Republicans Laton has a rich history of community serv- distinguished Hoosiers who are actively en- suggest, I propose that we use an existing ice. That tradition is exemplified by the strong gaged in their communities helping others. federal program to meet the obligations of ongoing commitment of the Volunteer Fire De- Mr. Speaker, it has always been my strong IDEA. I think the Medicaid program is ideal for partment, the Lyon's Club, and other local or- belief that individuals and communities can do this approach. ganizations. In addition to providing a range of a better job of caring for those who need help The concept of my legislation is simple: public services, each year the Laton commu- in our society than the federal government. after any school district has spent $3,500 on The wonderfully kind and committed Hoosiers a student who is eligible for IDEA funds, the nity comes together for the Building Our Neighborhoods Drug Free (BOND) festival, who I have met traveling around Indiana have school district can receive full federal funding not changed my view. from the Medicaid program for additional re- which brings families together to celebrate Laton's drug-free environment. Community Ruthie and I have met hundreds of individ- quired services mandated under IDEA. uals who are committed to making our com- The idea behind IDEA was that children programs, including the BOND festival have munities a better place in which to live and who are disabled must receive the assistance made Laton one of the Central Valley's best raise our childrenÐwe call them ``Hoosier He- they need to achieve their academic potential. places to raise a family. roes''. That's the right thing for those children and Mr. Speaker, I ask my colleagues to join me I recognized this genuine Hoosier Hero in their families. It's also the right thing for Amer- in congratulating the city of Laton in cele- Whitley County, Indiana at a Lincoln Day din- icaÐso that every individual has the maximum brating their 100th year as a successful and ner speech. She is Genny Walter-Thomson, chance to be a contributor. prosperous community. But who pays has been a problem for many whose devotion to her community has been years. Especially problematic for cash- f unfailing. She has worked for decades to im- strapped schools are situations where extraor- prove the lives of the mentally ill. By working dinary expenses are required for a severely HONORING THE JACK C. HAYS tirelessly on behalf of the less fortunate, disabled child. These expenses can ``bust the HIGH SCHOOL REBEL BAND Genny epitomizes a Hoosier Hero. Genny's special love is for children. She has budget'' and pit the parents of disabled chil- worked hard to build the new YMCA so the dren against the parents of non-disabled chil- youth of this community can direct their ener- dren. Because of the high costs of providing HON. RON PAUL gies in a positive direction. She also serves on special assistance to the disabled, it is be- OF TEXAS the Welfare-to-Work board to help people with lieved that some school districts tend to over- IN THE HOUSE OF REPRESENTATIVES the transition from dependence to dignity. look findings that assistance is needed. That Genny's work has given many people the is counter-productive to the goal of helping Tuesday, May 4, 1999 most precious gift possible, hope. She doesn't disabled children succeed in school. But it's Mr. PAUL. Mr. Speaker, the Jack C. Hays help people for the pay, which is zilch, she hard to blame the schools. The necessary High School Rebel Band of Austin, Texas, re- does it for the smiles and laughter. You are a funding has never been provided by the state cently earned the distinct honor of being se- true hero in my book, doing good works for or federal governments for this great IDEA. lected for the 1999 Sudley ``Flag of Honor'' The use of Medicaid to fund IDEA solves others with no other motive than Christian award from the John Philip Sousa Foundation. most of these problems. Since the Federal charity. This award is the highest recognition of excel- government funds 50% of Medicaid, shifting Genny Walter-Thomson deserves the grati- lence in concert performance that a high extraordinary expenses to the Medicaid pro- tude of the country, state, and nation, and I school band can receive. During the 17 years gram would ensure that the Federal govern- thank her here today on the floor of the House the award has been in existence, only 39 ment does its part. Because the rest of Med- of the Representatives. bands from the entire United States and Can- icaid funding comes from the states, the use f ada have been selected for the Flag of Honor. of Medicaid also would ensure that states do Conductor Gerald Babbitt and his Rebel band WATER RESOURCES their fair share and don't shirk their obligations deserve our praise and recognition on the oc- DEVELOPMENT ACT OF 1999 to local schools. Adoption of this proposal casion of receiving this prestigious award. would remove the disincentive now in place SPEECH OF for schools to avoid providing help to disabled The John Philip Sousa Foundation designed children. Additionally, it would remove the ani- this award to identify and recognize high HON. TOM BLILEY mosity that can develop between the parents school concert band programs of very special OF VIRGINIA of disabled and non-disabled children for excellence at the international level. To be eli- IN THE HOUSE OF REPRESENTATIVES gible for nomination, a band must have main- scarce resources. Thursday, April 29, 1999 I think this change makes a lot of sense and tained excellence over a period of many years hope that a bipartisan majority can put solu- in several areas including concert, marching, The House in Committee of the Whole tions ahead of politics and pursue this plan. small ensemble and soloists. The director House of the State of the Union had under Let's not allow a lack of imagination and com- must have been the conductor of the band for consideration the bill (H.R. 1480) to provide passion to short-change all our kids and at least the previous seven consecutive years for the conservation and development of including the year of the award. water and related resources, to authorize the schools. United States Army Corps of Engineers to f Each recipient receives a four-by-six foot construct various projects for improvements ``Flag of Honor'' which becomes the property to rivers and harbors of the United States, A TRIBUTE TO THE CITY OF of the band, The flag is designed in red, white and for other purposes: LATON and blue and bears the logo of the John Philip Mr. BLILEY. Mr. Chairman, I rise today in Sousa Foundation. The conductor receives a support of H.R. 1480, a bill to authorize the HON. CALVIN M. DOOLEY personal plaque and each student in the band United States Army Corps of Engineers to OF CALIFORNIA receives a personalized diploma. construct various projects for improvements to IN THE HOUSE OF REPRESENTATIVES Mr. Speaker, it is indeed an honor to have rivers and harbors of the United States, and Tuesday, May 4, 1999 such an outstanding high school band in the for other purposes. Mr. DOOLEY of California. Mr. Speaker, I 14th Congressional District. I am delighted to Section 326 of the legislation, which ad- rise today to pay tribute to the community of extend my hearty congratulations to them. dresses the modification of a project on the Laton on celebrating their 100 year anniver- Their hard work and dedication is an inspira- West Bank of the Mississippi River for flood sary. tion to us all. control and storm damage reduction, contains E848 CONGRESSIONAL RECORD — Extensions of Remarks May 4, 1999 language which clarifies the application of the Sen. Ocasek's devotion to education ex- TRIBUTE TO THE ALEXANDER Comprehensive Environmental Response, tends well beyond his volunteerism with the MACOMB CHAPTER DAUGHTERS Compensation and Liability Act of 1980, com- YMCA. He co-founded the Ohio Hi-Y Youth in OF THE AMERICAN REVOLUTION monly known as ``Superfund,'' to the project. Government Model Legislature program with As you know, the Superfund statute is a mat- Governor C. William O'Neill in 1952 and su- HON. DAVID E. BONIOR ter within the jurisdiction of the Committee on pervised it throughout his service on the Ohio- OF MICHIGAN Commerce, and this provision falls within that IN THE HOUSE OF REPRESENTATIVES jurisdiction. West Virginia Board of the YMCA. He has However, I have no objection to the inclu- served on the greater Akron area boards of Tuesday, May 4, 1999 sion of this provision. I recently sent Chairman Goodwill Industries, Shelter Care, and the Sal- Mr. BONIOR. Mr. Speaker, I am honored to SHUSTER a letter indicating that I would not vation Army. He also has been a professional have the opportunity to recognize the achieve- seek a sequential referral of the bill, and ask educator in a wide variety of capacities: a ments of a very special organization. I ask my unanimous consent that the letter appear in teacher, a principal, a school superintendent, colleagues to join me in saluting the Alexander the RECORD at this point. and a professor at both the University of Macomb Chapter of the Daughters of the HOUSE OF REPRESENTATIVES, Akron and Kent State University. He was in- American Revolution as they gather for their COMMITTEE ON COMMERCE, Centennial Celebration. Washington, DC, April 27, 1999. strumental in bringing together our regional institutions of higher learning to create the In June of 1899, 12 women congregated in Hon. BUD SHUSTER, the home of Mrs. Helen Smart Skinner to or- Chairman, Committee on Transportation and Northeastern Ohio Universities' College of Infrastructure, Rayburn House Office ganize the Mount Clemens chapter of the Medicine. He capped his educational service Daughters of the American Revolution. Building, Washington, DC. with three terms on Ohio's State Board of DEAR BUD: I am writing with regard to Though their membership has grown and H.R. 1480, a bill to provide for the conserva- Education. changed, their goals have remained the same: tion and development of water and related This breadth of service to youth is impres- to dedicate their time and talents to serving resources, to authorize the United States sive by itself. But alone, it does not capture God, home and country. During the early Army Corps of Engineers to construct var- years they assisted the military by sending ious projects for improvements to rivers and Oliver Ocasek's contribution to the people of harbors of the United States, and for other Ohio. Oliver Ocasek was one of the most in- supplies to soldiers. Today, they continue to support the veterans at the Detroit V.A. Hos- purposes. Section 326 of the legislation, fluential legislators in the Statehouse, where modifying the project for flood control and pital. The chapter began marking graves of he served in the Senate for 28 years from storm damage reduction, West Bank of the soldiers from the Revolutionary War and the Mississippi River (East of Harvey Canal), 1958 to 1986. In the 1970's, he became the war of 1812. In 1986, they assumed responsi- Louisiana, contains provisions within the ju- first Senate President elected by his peers bility for the Cannon Cemetery and continue to risdiction of the Committee on Commerce. due to a change in the Ohio Constitution. mark graves when they are located. The chap- Specifically paragraph (a)(1) clarifies the ap- Along with Republican Governor James plication of the Comprehensive Environ- ter has erected many memorials to honor our mental Response, Compensation and Liabil- Rhodes and Democratic House Speaker fallen soldiers throughout the country. The ity Act (‘‘CERCLA’’) of 1980 (42 U.S.C. 9601 et Vernal Riffe, Sen. Ocasek made many of the Daughters of the American Revolution are seq.) to the project. decisions to keep state government moving dedicated to service through their member- Because of the importance of this legisla- forward. He was an expert on Ohio's complex ship. tion, I recognize your desire to bring it be- school funding system and used his knowl- During the past 100 years, members of the fore the House in an expeditious manner, I D.A.R. have contributed their time and re- edge, experience, and position to benefit local will not exercise the Committee’s right to a sources to the betterment of society. They sequential referral. By agreeing to waive its students. His enormous influence came from have generously donated flags to schools, consideration of the bill, however, the Com- his savvy and from the hard, tedious work of merce Committee does not waive its jurisdic- scouts, public parks and most recently to the tion over H.R. 1480. In addition, the Com- studying, debating, refining, and reaching deci- new Mount Clemens Court Building. The merce Committee reserves its authority to sions on difficult and often contentious state chapter has supported many schools by do- seek conferees on any provisions of the bill issues. nating books over the years as well as sup- that are within its jurisdiction during any porting their National Library. I would like to House-Senate conference that may be con- He is astute, well-steeped in history, a gifted orator and a man of heart-felt compassion. thank all of the members, past and present, vened on this legislation. I ask for your com- who have worked diligently to foster true patri- mitment to support any request by the Com- Oliver Ocasek's larger-than-life ambitions otism in the Macomb County community. merce Committee for conferees on H.R. 1480 drove him hard in politics and in civic life in or similar legislation. The members of the Macomb Chapter of I request that you include this letter as general, not in search of personal gain and the Daughters of the American Revolution are part of the Record during consideration of glory, but in order to use his talents and posi- dedicated to the preservation of patriotic prin- the legislation on the House floor. tions to care for the least of his brothers and ciples and securing the blessings of liberty for Thank you for your attention to these sisters. Last year in the Akron Beacon Jour- mankind. Please join me in offering congratu- matters. I remain, Sincerely, nal, Sen. Ocasek expressed his philosophy: lations as they celebrate 100 years of service TOM BLILEY, ``Nothing breaks my heart more than for a to God, home and country. Chairman. child to not have parents who care or to not f f have a chance for a good education. That's HONORING THE BOROUGH OF been my commitmentÐmy lifeÐto provide a A TRIBUTE TO THE HONORABLE NORTH YORK ON ITS 100TH ANNI- good education for all children.'' His leadership OLIVER OCASEK VERSARY has inspired tens of thousands of young peo- HON. THOMAS C. SAWYER ple touched by his commitment to education HON. WILLIAM F. GOODLING and to the YMCA youth programs over the last OF OHIO OF PENNSYLVANIA IN THE HOUSE OF REPRESENTATIVES half-century. IN THE HOUSE OF REPRESENTATIVES Tuesday, May 4, 1999 Today, many people disparage public serv- Tuesday, May 4, 1999 ice and doubt that one person can make a dif- Mr. SAWYER. Mr. Speaker, we rise to Mr. GOODLING. Mr. Speaker, I rise today honor Oliver OcasekÐone of Ohio's most dis- ference. Oliver Ocasek would profoundly dis- to pay tribute to the Borough of North York on tinguished citizens. On May 20, Oliver Ocasek agree. And more importantly, his efforts and the occasion of its 100th Anniversary Celebra- will receive the YMCA of the USA's Vol- their recognition by the YMCA are the evi- tion. I am pleased and proud to bring the his- unteerism AwardÐthe YMCA's highest honor. dence to the contrary. His service to the peo- tory of this fine borough to the attention of my The YMCA is honoring Ocasek for his more pleÐand particularly the youthÐof Ohio colleagues. than 50 years of service to youth organiza- shows that, with hard work and commitment, The general outlines for the borough began tions. We rise today, not only to recognize his one person can make a difference. And we in 1888 with the purchase of 63 acres of deserved selection for this award, but to rec- are grateful for the difference that he has ground by Jacob Mayer, a leading cigar ognize a lifetime of service to the people of made. maker. At that time, North York was known as Ohio. Mayersville. On April 17, 1889, the Borough of CONGRESSIONAL RECORD — Extensions of Remarks E849 North York was incorporated, encompassing For the past 15 years, Violet has served as (3) Special Philippine Scouts, called ‘‘New about 146 acres of land. The first official coun- a Wayne Township Trustee. She has given in- Scouts,’’ who enlisted in the United States cil meeting was held on May 12, 1899. valuable service to the Salvation Army and Armed Forces between October 6, 1945, and Today, the population of the Borough of June 30, 1947, primarily to perform occupa- various food pantries both providing aid to the tion duty in the Pacific following World War North York is 1689. It is a thriving community desperately poor. II. and home to many outstanding businesses. Violet's work has given so many people the (4) Members of the Philippine Common- I send my sincere best wishes as the Bor- most precious gift possible, hope. She doesn't wealth Army who on July 26, 1941, were ough of North York celebrates this milestone do it for the pay, which is zilch, she does it for called into the service of the United States in its history. I am proud to represent such a the smiles and laughter. You are a true hero Armed Forces. This group includes organized fine place and look forward to watching it grow in my book, doing good works for others with querrilla resistance units that were recog- as we enter the new millennium. no other motive than Christian charity. nized by the United States Army; and Whereas, The first two groups, Filipinos f Violet Backmeyer deserves the gratitude of who served in the regular components of the her country, state, and nation, and I thank her CONGRATULATIONS TO OUR LADY Unites States Armed Forces and Old Scouts, here today on the floor of the House of Rep- OF LOURDES ACADEMY MIAMI, are considered United States veterans and resentatives. are generally entitled to the full range of FLORIDA f United States veterans benefits; and Whereas, The other two groups, New HON. ILEANA ROS-LEHTINEN CALIFORNIA RESOLUTION TO Scouts and members of the Philippine Com- OF FLORIDA HONOR WORLD WAR II VETERANS monwealth Army, are eligible for certain veterans benefits, some of which are lower IN THE HOUSE OF REPRESENTATIVES than full veterans benefits; and Tuesday, May 4, 1999 HON. BOB FILNER Whereas, United States veterans medical Ms. ROS-LEHTINEN. Mr. Speaker, today I OF CALIFORNIA benefits for the four groups of Filipino vet- IN THE HOUSE OF REPRESENTATIVES erans vary depending upon whether the per- would like to recognize an outstanding group son resides in the United States or the Phil- of girls from Our Lady of Lourdes Academy Tuesday, May 4, 1999 ippines; and who won third place at this year's national We Mr. FILNER. Mr. Speaker, I rise today to Whereas, The eligibility of Old Scouts for the People competition. place into the CONGRESSIONAL RECORD a Res- benefits based on military service in the Sacrificing their weekends, evenings, and olution from the California State Assembly, As- United States Armed Forces has long been spending countless of hours in preparing dili- sembly Joint Resolution No. 15 relative to Fili- established; and Whereas, The federal Department of Vet- gently for the state and local tournaments pino World War II veterans: which they won, 17 students of Our Lady of erans Affairs operates a comprehensive pro- Whereas, The Philippine Islands, as a re- gram of veterans benefits in the present gov- Lourdes Academy proudly represented Miami sult of the Spanish-American War, were a ernment of the Republic of the Philippines, and the state of Florida this year in yester- possession of the United States between 1898 including the operation of a federal Depart- day's national competition on the Constitution. and 1946; and ment of Veterans Affairs office in Manila; I ask my Congressional colleagues to join Whereas, In 1934, the Philippine Independ- and me in paying tribute to devoted teacher Rosie ence Act (P.L. 73–127) set a 10-year timetable Whereas, The federal Department of Vet- Heffernan and to the following 17 young girls for the eventual independence of the Phil- erans Affairs does not operate a program of who made evidence their pride in our coun- ippines and in the interim established a gov- this type in any other country; and ernment of the Commonwealth of the Phil- try's heritage and demonstrated their vast Whereas, The program in the Philippines ippines with certain powers over its own in- evolved because the Philippine Islands were knowledge of the United States' history and of ternal affairs; and a United States possession during the period current events: Deerack Asencio, Deanna Whereas, The granting of full independence 1898–1946, and many Filipinos have served in Barkett, Melissa Camero, Carly Celmer, Cath- ultimately was delayed for two years until the United States Armed Forces, and be- erine Cone, Jessica Fernandez, Tanya Garcia, 1946 because of the Japanese occupation of cause the preindependence Philippine Com- Diana Kates, Ingrid Laos, Vivian Lasaga, the islands from 1942 to 1945; and monwealth Army was called into the service Claudia MacMaster, Tanya Nelson, Sonya Whereas, Between 1934 and the final inde- of the United States Armed Forces During pendence of the Philippine Islands in 1946, Nelson, Tatiana Perez, Flavia Romero, Me- World War II (1941–1945); and the United States retained certain sovereign Whereas, Our nation has failed to meet the lissa Sanchez, and Kristina Velez. powers over the Philippines, including the promises made to those Filipino soldiers who f right, upon order of the President of the fought as American soldiers during World United States, to call into the service of the War II; and REPORT FROM WAYNE COUNTY United States Armed Forces all military Whereas, The Congress passed legislation forces organized by the Commonwealth gov- in 1946 limiting and precluding Filipino vet- HON. DAVID M. McINTOSH ernment; and erans that fought in the service of the OF INDIANA Whereas, President Franklin D. Roosevelt, United States during World War II from re- by Executive order of July 26, 1941, brought IN THE HOUSE OF REPRESENTATIVES ceiving most veterans benefits that were the Philippine Commonwealth Army into the available to them before 1946; and Tuesday, May 4, 1999 service of the United States Armed Forces of Whereas, Many Filipino veterans have been Mr. McINTOSH. Mr. Speaker, I rise today to the Far East under the command of Lieuten- unfairly treated by the classification of their give my ``Report from Indiana`` where I honor ant General Douglas MacArthur; and service as not being service rendered in the Whereas, Under the Executive Order of United States Armed Forces for purposes of distinguished Hoosiers who are actively en- July 26, 1941, Filipinos were entitled to full benefits from the federal Department of Vet- gaged in their communities helping others. veterans benefits; and erans Affairs; and Mr. Speaker, it has always been my strong Whereas, Approximately 200,000 Filipino Whereas, All other nationals who served in belief that individuals and communities can do soldiers, driven by a sense of honor and dig- the United States Armed Forces have been a better job of caring for those who need help nity, battled under the United States Com- recognized and granted full rights and bene- in our society than the federal government. mand after 1941 to preserve our liberty; and fits, but the Filipinos, as American nationals The wonderfully kind and committed Hoosiers Whereas, There are four groups of Filipino at the time of service, were and still are de- who I have met traveling around Indiana have nationals who are entitled to all or some of nied recognition and singled out for exclu- the benefits to which United States veterans sion, and this treatment is unfair and dis- not changed my view. are entitled. These are: criminatory; and Ruthie and I have met hundreds of individ- (1) Filipinos who served in the regular Whereas, On October 20, 1996, President uals who are committed to making our com- components of the United States Armed Clinton issued a proclamation honoring the munities a better place in which to live and Forces. nearly 100,000 Filipino veterans of World War raise our childrenÐwe call them ``Hoosier He- (2) Regular Philippine Scouts, called ‘‘Old II, soldiers of the Philippine Commonwealth roes.'' Scouts,’’ who enlisted in Filipino-manned Army, who fought as a component of the I recognized this genuine Hoosier Hero in units of the United States Army prior to Oc- United States Armed Forces alongside allied Wayne County at a Lincoln Day dinner tober 6, 1945. Prior to World War II, these forces for four long years to defend and re- troops assisted in the maintenance of domes- speech. She is Violet Backmeyer, whose com- claim the Philippine Islands, and thousands tic order in the Philippines and served as a more who joined the United States Armed mitment and service to the needy has been combat-ready force to defend the islands Forces after the war; Now, therefore, be it just as strong and successful. By working tire- against foreign invasion, and during the war, Resolved by the Assembly and the Senate of lessly on behalf of the less fortunate, Violet they participated in the defense and retaking the State of California, jointly, That the Legis- epitomizes a Hoosier Hero. of the islands from Japanese occupation. lature of the State of California respectfully E850 CONGRESSIONAL RECORD — Extensions of Remarks May 4, 1999 memorializes the President and the Congress Robert passed away peacefully in his sleep Their extraordinary vision and commitment of the United States during the First Session at the age of 85 on January 28, 1999 at his bring us once again to the doorsteps of a new of the 106th Congress to take action nec- home in Glendora, California. He is survived center for education and learning in the Mis- essary to honor our country’s moral obligation to provide these Filipino veterans with by his wife of 64 years, Evelyn Rumsey; his sion District. the military benefits that they deserve, in- sister Dorothy Lawrence; his three daughters Mr. Speaker, on behalf of Congress, let us cluding, but not limited to, holding related and two sons-in-law, Charles and Judy Nich- join in celebrating our continued support for hearings, and acting favorably on legislation ols of Huntington Beach; Loretta Rojas of Po- pubic education by commending the leaders pertaining to granting full veterans benefits mona; my wife, Cathy, and me. and representatives of the San Francisco Mis- to Filipino veterans of the United States He will be deeply missed by his seven sion District community, labor community, and Armed Forces; and be it further grandchildren, six great-grandchildren, and Masonic Lodges and organizations and other Resolved, That the Clerk of the Assembly one great great-grandchild. transmit a copy of this resolution to the individuals who have contributed to this his- President and the Vice President of the Robert was born in Chicago, Illinois in 1913 toric occasion. United States, to the Speaker of the House to Silas and Nellie Rumsey. When he was five of Representatives, and to each Senator and years old, he moved to Los Angeles, Cali- f Representative from California in the Con- fornia. In 1930, Robert graduated from Manual gress of the United States. Arts High School and soon thereafter moved DALLAS COWBOYS OWNER JERRY JONES f to Detroit, Michigan where he met his beautiful wife Evelyn. The two were married on August CONSENT OF CONGRESS TO THE 21, 1934. Robert then attended the Ford HON. EDDIE BERNICE JOHNSON CHICKASAW TRAIL ECONOMIC Motor Company Trade School and graduated OF TEXAS DEVELOPMENT COMPACT with honors. He proceeded to become a mas- IN THE HOUSE OF REPRESENTATIVES ter Tool and Die Maker and Mold Maker. HON. ED BRYANT In 1941, Robert and Evelyn moved to Tuesday, May 4, 1999 OF TENNESSEE Southern California and in 1947 began build- Ms. EDDIE BERNICE JOHNSON of Texas. IN THE HOUSE OF REPRESENTATIVES ing their home in Glendora. For many years, Mr. Speaker, many of us are aware of the Tuesday, May 4, 1999 Robert worked for United Engravers in Los contributions that Dallas Cowboys owner Jerry Angeles. Mr. BRYANT. Mr. Speaker, as we move into Jones has made to the sport of football. His Services were held on Monday, February 1, the 21st Century, there is a need in our rural focus on excellence in sportmanship and suc- 1999 at Oakdale Memorial Park in Glendora, communities to find new revenue sources to cessful stewardship of the Dallas Cowboys will California. be forever cemented in the history of the keep up with the constant changes of our You will be greatly missed. high-tech and booming business community. game. f This scenario rings true in many areas of However, Mr. Jones has also made a sig- rural Tennessee. Several of the counties with- COMMEMORATING THE CORNER- nificant contribution to the history of our coun- in the seventh-district are doing what they can STONE CEREMONY FOR JOHN A. try and the ideas of Thomas Jefferson, the to attract businesses to their communities to O’CONNELL TECHNICAL HIGH third President of the United States, who draft- provide jobs and revenue to help their coun- SCHOOL ed the Declaration of Independence. ties, cities, and towns grow in the new cen- Mr. Speaker, Mr. Jones along with his wife tury. Gene, donated $1 million to a Library of Con- That is what we have in front of us today. HON. NANCY PELOSI gress program that is currently rebuilding The Chickasaw Trail Economic Development OF CALIFORNIA Thomas Jefferson's personal book collection Compact gives Congressional consent to an IN THE HOUSE OF REPRESENTATIVES that was lost in a fire. interstate compact between Tennessee and Tuesday, May 4, 1999 This gracious gift allows the Library of Con- Mississippi that will promote interstate co- Ms. PELOSI. Mr. Speaker, I rise today in gress to obtain lost copies of books destroyed operation and economic development in an recognition of the Cornerstone Ceremony for in 1851. It will be a labor and financially inten- area straddling Fayette County, Tennessee John A. O'Connell Technical High School in sive undertaking that will be helped by Mr. and Marshall County, Mississippi. San Francisco. Jones's assistance. Under the bill, the Chickasaw Compact In 1989 the Loma Prieta earthquake virtually Cicero once said that ``to be ignorant of the would conduct a study to determine the feasi- destroyed the facilities at John A. O'Connell past is to remain a child.'' Mr. Speaker, the bility of establishing an industrial park in this Technical High School, and forced them to re- donation by Mr. Jones will assure that we will area. Should that study turn out to be favor- locate the school temporarily for a period of be able to hold onto history and be less igno- able, the states would then negotiate a new ten years. In the year 2000 the John A. rant of it, while being wiser. compact implementing the details needed to O'Connell Technical High School will return to Thomas Jefferson was not only the drafter establish a 4,000 to 5,000 acre industrial park. its former site and a new building structure in of the Declaration of Independence and U.S. This location is adjacent to metro Memphis, the Mission District of San Francisco. John A. President, he was also an enlightened thinker which is shot of available land for future indus- O'Connell Technical High School will be the whose ideas helped us build this country and trial growth, and it is hoped that the develop- first San Francisco public school of the guide her through dark times. His ideas and ment would attract sophisticated high tech- Millenium. Its curriculum will be revised to re- thoughts were shaped and influenced by nology industries to the area. flect the role of technology for today's class- books. The compact has already established a rooms and workplaces as its focus moves It is appropriate that the gift from Mr. and board of directors representing the two states, from a traditional trade school to a school em- Mrs. Jones will help restore Jefferson's rare the two counties and the private sector. Finan- phasizing a curriculum that will embody a books as he helped found the Library of Con- cial support from local, state and federal ``school to career'' principle. gress. sources have allowed the project to proceed On May 10, 1999, the Cornerstone Cere- As this country still wrestles with issues of with an initial feasibility study. mony for John A. O'Connell Technical High equality and freedom well into the 21st cen- f School will be hosted by officers of the Grand tury, it is incumbent upon us to refer to the COMMEMORATE THE PASSING OF Lodge of Free and Accepted Masons of Cali- high-minded ideals of our Founding Fathers. ROBERT LAWRENCE RUMSEY fornia. It is a true reflection of our diversity of The $1 million donation to the Library of Con- interests to bring together so many organiza- gress will help this country locate those books HON. GARY G. MILLER tions in support of public education. The Ma- and remind us of our collective vision and his- sons have a rich tradition of serving our com- tory. OF CALIFORNIA munities, particularly education, and we are On behalf of the residents of the 30th Con- IN THE HOUSE OF REPRESENTATIVES grateful for their support over these many gressional District and all Americans, I would Tuesday, May 4, 1999 years. The man whose name we honor like to thank Jerry and Gene Jones for their Mr. GARY G. MILLER of California. Mr. todayÐJohn O'ConnellÐserved the San Fran- donation to the Library of Congress. For me, Speaker, I rise today on this sad occasion to cisco community as its labor leader for almost this also represents their service to our coun- commemorate someone very dear to me, my half a century as a founder of the Teamsters try, support of democratic ideas and perse- father-in-law, Robert Lawrence Rumsey. Union and the San Francisco Labor Council. vering history. CONGRESSIONAL RECORD — Extensions of Remarks E851 THE DAIRY COMPACT—WHY WE So, the way I see it, a compact benefits INTRODUCTION OF LEGISLATION NEED IT farmers and consumers. That's why I will fight TO HONOR WORLD WAR II’S for its passage. FIRST HERO, CAPTAIN COLIN P. HON. AMO HOUGHTON KELLY, JR. f OF NEW YORK IN THE HOUSE OF REPRESENTATIVES HONORING CECILE HERSHON HON. ALLEN BOYD Tuesday, May 4, 1999 OF FLORIDA Mr. HOUGHTON. Mr. Speaker, I rise today HON. DALE E. KILDEE IN THE HOUSE OF REPRESENTATIVES on behalf of H.R. 1604, a bill which would OF MICHIGAN Tuesday, May 4, 1999 allow New York State farmers to join the New IN THE HOUSE OF REPRESENTATIVES Mr. BOYD. Mr. Speaker, today, I introduced England Dairy Compact. The compact is not a Tuesday, May 4, 1999 a bill to honor World War II's first hero, and panacea for dairy problems, but it is a start. fellow Floridian, by designating the post office There are those who argue against itÐtoo Mr. KILDEE. Mr. Speaker, I stand before building in Madison, Florida the Captain Colin restrictive, anti-competitive, will increase milk you today to recognize and honor the accom- P. Kelly, Jr. Post Office. prices. Despite the nay-sayers, there are plishments of a truly remarkable woman. On Colin Kelly was born in Monticello, Florida many reasons to support this compact, and I May 5, members of the Flint, Michigan, North- on July 11, 1915. Raised in Madison, Florida support it. There are cultural reasons, eco- ern High School Alumni Association will gather he attended Madison High School until his nomic reasons, and an overriding consider- to honor five Distinguished Fellows, members graduation in 1932. In the summer of 1933, ation: our own farmers want it. of their alumni community who have contrib- The current compact in New England was Kelly entered West Point, and after graduation uted to legacy and rich history of Northern in 1937 he was assigned to flight school and established about two years ago. It provides High School, and of Flint. One Distinguished dairy farmers with a steady, predictable floor a B±17 group. Fellow to be honored is the late Ms. Cecile At the outbreak of WWII, Capt. Kelly, along price for their milk. And that is important. Dairy Hershon. farmers for the most part live so close to the with other B±17 crews, was ordered to Clark Born in Lansing, Michigan in 1920, Cecile Field, the Philippines. Shortly after the bomb- line that mild gyrations in the price they re- Hershon and her family eventually moved to ceive can be lethal. ing of Pearl Harbor, Capt. Kelly and his crew Flint, where she graduated from Northern High were ordered on a bombing mission to attack How would anyone like to run a business School in 1938. In 1944, Cecile was recruited where the price of your product in one day the Japanese fleet. After completing their by the United States Army and began her long bombing run, Capt. Kelly's plane was attacked can drop 40% and you have no control over military career as a civilian clerk in Arlington, it. Your product, your quality, your service is by two Japanese fighters while returning to Virginia. From there she went on to become a Clark Field. Kelly gave the order to abandon better than ever. Through non-economic part of the newly merged Army and Navy Sig- sources beyond your control your whole busi- the aircraft but remained at the controls to nal Services, first known as the Armed Forces maintain the plane's elevation so his crew ness stands on the brink of destitution. 5,600 Security Agency as is currently what we know New York dairy farms went that route in the could safely bail out. He did not have time to as the National Security Agency. make his escape and was killed in the line of last ten years. Cecile began to further her career with the There are three groups opposed to this life- duty on December 10, 1941. National Security Agency, becoming adept as According to Major Kenneth Gantz in a saving compact. intelligence research, analysis, and reporting, First, the large Midwestern producers who in memo for General William Hall dated Novem- and soon became a exceptional cryptog- effect control through government orders the ber 21, 1945, ``Kelly became a hero by cir- rapher. She later accepted an overseas posi- floor price of liquid milk and cheese. cumstances at the time when his country des- Second, the big city political powers who tion where she continued to perfect her skills, perately needed a hero.'' Indeed, Kelly was claim that a compact to stabilize prices will at allowing her to function in a variety of super- featured in many popular publications of the the same time increase prices to the poor. visory and management positions. Throughout day and is often considered America's first This has been disproved over and over again. her career, which spanned an incomparable hero of WWII. In addition, President Roosevelt Third, the middle menÐthose who handle, 42 years, Cecile received numerous honors awarded Capt. Kelly the Distinguished Service package and distribute the raw milk before it and commendations, including one of the Cross posthumously for his actions. reaches retail consumers. While the farmer re- agency's highest honors, the National Meri- The designation of the post office in his ceives the same price for his milk on average torious Civilian Service Award in 1986. Cecile hometown of Madison as the Capt. Colin P. as he did 20 years agoÐthis guy has jacked also became involved in WINÐWomen in Kelly, Jr. Post Office seems a fitting tribute to up the price to the consumer in this same pe- NSA, an organization dedicated to increasing this patriot, his family, and his legacy. I am riod by 35%. personal growth and development among both proud to honor this American hero. Everyone has a right to fight for his or her men and women within the NSA. As a mem- f economic interests, but not using the govern- ber of WIN, Cecile was honored with their ment as an accomplice, and not at the ex- President's Award on two separate occasions. HONORING TEACHERS HALL OF pense of those who milk the cows and She was also the first recipient of WIN's Doro- FAME INDUCTEE RONALD W. produce the basic product. Something is ter- thy T. Blum Award for excellence in personal POPLAU ribly wrong when downstream interests enrich and professional development. only themselves and prey on the vulnerability In addition to being a model employee, HON. DENNIS MOORE of smaller family farms. These plus others Cecile was an ardent humanitarian as well. OF KANSAS hold in their hands the ability to drive an im- She was constantly found extending a helping IN THE HOUSE OF REPRESENTATIVES hand to friends, colleagues, and sometimes portant part of our heritage as well as our food Tuesday, May 4, 1999 supply to the wall. mere acquaintances, sometimes at her own If government is for anything it is to protect personal or professional expense, and with no Mr. MOORE. Mr. Speaker, I rise today on those who can't protect themselves. This is thought of personal gain. Countless members behalf of my constituents to honor Ronald W. why I, along with others, am fighting for a of the NSA and the military attribute their suc- Poplau, a sociology teacher at Shawnee Mis- multi-state Dairy Compact. cess to Cecile's support and encouragement. sion Northwest High School in Shawnee, KS, The dairy business could soon be domi- There have been many accounts of people and one of only five teachers in the nation to nated by mega-farms whose only claimed ad- who were convinced by Cecile to remain in be inducted this year into the National Teach- vantage is an economy of scale. That's not the NSA, complete their education, and honor ers Hall of Fame. sufficient reason to muscle out others of lesser familial obligations. Indeed, many of our mili- Students and administrators who have size whose costs are similar, but whose deep tary are better soldiers due to the influence of worked with Ron Poplau have known for many pockets are not. If the federal government is Cecile Hershon. years that he is one of the finest the field of going to be in the dairy business at all, it bet- Mr. Speaker, Cecile Hershon lived her life in professional education has to offer. For over ter try to serve the many, not the few. a truly selfless and benevolent manner, and it 35 years, Ron Poplau has dedicated himself Is a compact the answer to all the problems goes without saying that her influence extends to giving students the tools they need not only in our dairy industry? Of course not. But it will even to this day. Her life's work, serving her to find their way in civil society, but to thrive. help preserve our family producers until a country for so long as a civilian, is com- Like many Americans, Ron Poplau has more permanent solution can evolve. manding of the highest respect. drawn inspiration from his family. Ron's father E852 CONGRESSIONAL RECORD — Extensions of Remarks May 4, 1999 immigrated from Germany at the turn of the ments and public surveys. A women's right to tegic command remains—the steward of the century, and because of prejudice and fear, choose is one that is constantly under attack. most terrible military force ever created. Be- was not able to receive a proper education. Those who fight to ensure that women main- cause of that, it was always critically important to keep the purpose of such awful power When Ron became a teacher, it was the fulfill- tain this right and have access to safe proce- foremost in mind—to preserve peace by re- ment of his father's dreams to free himself and dures, often put themselves in jeopardy for maining able to make war, for it was none others from illiteracy. their beliefs. For this, Marilyn deserves our re- other than George Washington who said, Throughout his career, Ron Poplau has respect and gratitude. ‘‘There is nothing so likely to produce peace ceived many honors and awards for his work As a longtime resident of the Town of as to be well prepared to meet an enemy.’’ in the classroom. Most recently he has re- Woodbridge, she was an active member of the I believe the old SAC motto remains just ceived the Wooster College Excellence in Woodbridge Town Committee, Woodbridge as relevant and appropriate today as it was Town Library, Planned Parenthood of Con- during the height of the cold war. But I have Teaching Award, the U.S. Army Outstanding to say, in the wake of our experience since Citizen Award, the Greg Parker Faculty necticut, and the National Coalition of Repub- the cold war ended, that peace isn’t quite Award, and has been twice recognized as the licans for Choice. From these roots, she con- what many people thought it would be. Sir U.S.D. 512 Employee of the Year. But Ron tinued her campaign with Connecticut NARAL, Michael Rose, the British general who com- Poplau's legacy goes far beyond his class- serving on their Board of Directors and as manded UN forces in Bosnia before the Day- room. chair of the state political action committee. ton agreement, put it well in the title of his Most importantly, Ron Poplau has helped Her tremendous imvolvement with the local recent book, which he calls ‘‘Fighting for thousands of students foster a lifelong commit- chapter led her to serve NARAL on the na- Peace.’’ In our ambiguous, complicated, demanding ment to community service. His Cougars Com- tional level. As a member of the Board of Di- global environment, it is critically impor- munity Commitment program puts hundreds of rectors, Foundation, Board, and the National tant that you, who are entering into the pro- students into the community every day to as- Political Action Committee, Marilyn helped to fession of arms, consider very carefully what sist the poor, needy, and elderly. It has be- shape the values and ideas the group con- it means to say ‘‘Peace is our profession.’’ It come a model for other school districts and tinues to promote today. is important first of all because you must been honored by local, state, and national Recently, the pro-choice movement sadly understand, in your hearts as in your minds, awards. lost Marilyn Savin. On May 1 Connecticut both the great difficulty and great value of Perhaps the definitive statement above Ron NARAL will hold its 1999 Choice Celebration what you are doing, even when many of your fellow citizens may not always appreciate Poplau was offered by his colleague Beth and Auction in her honor. This is a fitting trib- your efforts as well as they should. Jantsch when she said, ``What Ron has done ute to a woman who dedicated her life and Peace is difficult. It is difficult above all by the creation of this program is to leave a spirit to advocating the right of choice. Though because it is not, as some people seem to legacy of community care and involvement for her enthusiasm, energy, and commitment will think, the natural state of things. Peace generation to come . . . I can only believe be missed, the unparalleled impact of her ef- does not just happen. Peace is not the com- that this will be a better world because of the forts will not be forgotten. fortable, old rocker on the porch we would lives that have been touched and by those It gives me great pleasure to stand today in like to sink into after a hard day’s work. honor of Marilyn Savin and join with friends, Peace is much more like the progress of that will carry on the torch of caring and com- Ulysses, who sailed through storm-lashed munity involvement . . . he is our shining colleagues and family members as they re- seas only to find at each new landfall a dif- light.'' member this talented woman. Her dedication ferent challenge—whether a treacherous On behalf of the people of the Third District to this movement has truly made a difference temptation luring him from his path or an of Kansas, I want to thank Ron Poplau for car- which will be felt by women in Connecticut ever more devious and powerful foe. ing so much for the development of our na- and across the country for years to come. The short history of the post-cold war era tion's children, and for helping to strengthen f shows us one thing very clearly—that peace our community by encouraging young people can only be maintained when those with the PEACE IS OUR PROFESSION strength to do so accept their responsibility to extend their hand in friendship and service. as much as possible to resist aggression, to Mr. Speaker, please join me in congratu- define the rules of international order, and lating Ronald W. Poplau of Shawnee Mission HON. IKE SKELTON to enforce those rules when necessary. Peace Northwest High School on his induction into OF MISSOURI is something that must be built anew in ever the National Teachers Hall of Fame. IN THE HOUSE OF REPRESENTATIVES changing circumstances by the labor, the f Tuesday, May 4, 1999 will, and sometimes the blood of each generation. MARILYN SAVIN FOR OUT- Mr. SKELTON. Mr. Speaker, on April 19, We are only beginning to see what chal- STANDING LIFETIME CONTRIBU- 1999, I had the opportunity to address the lenges will face your generation. I hope and TIONS TO WOMEN’S RIGHTS United States Air Force Academy in Colorado pray that those challenges will be, in some Springs, Colorado. I spoke about the priority of ways, at least, less fearsome than those your predecessors faced. God forbid we should ever peace as the profession of the United States HON. ROSA L. DeLAURO again have to send our finest young people military. My speech to that group is set forth OF CONNECTICUT into the mechanized killing fields of the as follows: IN THE HOUSE OF REPRESENTATIVES great world wars of the past century. The Many of you, I am sure, have been to the spread of weapons of mass destruction, Tuesday, May 4, 1999 headquarters of the Strategic Command at therefore, makes me shudder—it is all the Offutt Air Force base in Nebraska. Some of Ms. DELAURO. Mr. Speaker, I am honored more important that your labor be applied to you, I know, will soon be joining that fine to rise today to remember and pay tribute to keep such awful implements from ever being organization. The motto of the strategic used. a Connecticut woman who, during her life, command, which was for many years that of The great and unique challenge you face, it worked tirelessly to advance the rights of its predecessor, the strategic air command, seems to me, is in the insidious nature of the women. Marilyn Savin devoted nearly two dec- is a simple, but profound statement: enemy before you. In the world wars, in the ades to promoting and protecting a woman's ‘‘Peace is our profession.’’ cold war, in the Persian Gulf War, even in right to choose. That statement expresses very well the Korea and Vietnam, the enemy was appar- Through her work with the National Abortion purpose of the U.S. military. The United ent. Today, I think, the enemy is harder to and Reproductive Rights Action League States does not maintain military power be- define. Through no less dangerous, it is in cause it seeks to expand its rule or dominate some ways more difficult to grapple with be- (NARAL), both locally and nationally, Marilyn other nations—the purpose of U.S. military cause it is so difficult to see clearly. Admiral became a leading activist in the pro-choice power—and the reason for the Army, Navy, Joseph Lopez, who recently retired after movement, having a particular impact in the Air Force, and Marine Corps—is to secure serving as Commander of Allied Forces in Republican Party. As a direct result of her in- the peace. Southern Europe, has said very wisely that fluence, Connecticut Republicans stand out in ‘‘Peace is our Profession’’ was especially ‘‘Instability is the Enemy.’’ the nation for their support of reproductive well-chosen as a motto for the strategic air That is a good way of defining it, above all rightsÐan outstanding illustration of the power command. I know that every one of your because it serves to emphasize the impor- predecessors who climbed into the cockpit of tance of our military engagement, in all of her commitment and dedication. a SAC bomber had to be aware of the awe- kinds of ways, with other nations around the Indeed, Marilyn was a true leader in ad- some fact that loaded on board were weapons world. But to understand that doesn’t make vancing reproductive rights, family planning, of more destructive power than had ever it any easier to cope with. One problem, ob- and women's health. Marilyn translated prin- been unleashed in all the wars of history viously, is that instability is everywhere. So ciples into action by public speaking engage- that had gone before. SAC was—and the strain trying to cope with it as best we can, we CONGRESSIONAL RECORD — Extensions of Remarks E853 are working you and your colleagues much of your age—or, for that matter, of your cut off. Don’t let yourself feel different. too hard. I have argued long and loudly that elected leaders. Let me tell you that such de- Don’t let your ingrained sense of duty make we need to stop doing that. For their part, mands for personal responsibility, for having you feel unappreciated and unhonored. If you your leaders in the Air Force are working integrity in your personal lives, will feel as seek public support, you will get it. diligently to reorganize the force in a way light as a single snowflake the first time you I think you should be taught that it is part that will make things better. Even so, I can’t are responsible for protecting the lives of of your duty as an officer in the U.S. Air promise you that the task of maintaining others. Responsibility is demanded in your Force to keep in constant touch with the this troubled peace will be much easier in profession because, at some time, so much community in which you grew up. When you the future. will be at stake in the decisions you make. go home, you should call up the president of An even more difficult problem arises from I’m not telling you this because I am wor- the local Lions club or the Rotary club and the fact some instability is more dangerous ried that you will not rise to the occasion. say ‘‘Congressman Skelton told me I ought than other instability. The question we all On the contrary, I believe that you are part to give you a call and let you know where I struggle with is this: How do we decide when of a military organization that will make am and what I’m doing in my military serv- instability is sufficiently dangerous to our you ready to do your duty well, when you are ice.’’ You will get a great response. Your long-term interests to justify putting the called upon. I am telling you this because I community wants to support you. Your combest of our young men and women—that is, am concerned, instead, that your sense of re- munity wants to know that you are there for you—at risk? sponsibility, your sense of duty, your sense them. Your community wants you to con- Let me tell you that no one in a position of honor will, at times, make you feel some- tinue to be a part of it. Your community of responsibility in this Nation takes that how cut off from the society you serve. wants to understand what it is to say, question lightly. We have a lot of frivolous I want to tell you that you cannot and ‘‘Peace is our Profession.’’ It is part of your and needlessly partisan debates in Wash- must not let that happen. You are a critical profession to contribute to their under- ington. But when it comes to a debate over part of American society. You are the bul- standing. your lives—over whether to tell you to risk wark of this society. American society can- As you progress through your military ca- your lives to defend our nation—The Con- not carry on as a free, independent, diverse, reer, it is my sincere hope that you will not gress engages the issues seriously and sol- rich society without you. But neither can only fulfill your fondest dreams, but that you succeed without the support of the emnly. We, and the President, may not al- you will, by your service, provide the peace American people. You have to work at main- ways make the right decision—but God for our country that will allow your fellow taining that support as vigorously as you knows, we all try to. American citizens to pursue their dreams. work at any other part of your profession. The difficulty for you is that there are le- Thank you for the opportunity to address Sometimes that will not be so easy. Peace gitimate, deeply held differences of view on you today. God bless. whether and when our interests and our prin- is your profession. The paradox is that the ciples are sufficiently at stake to justify put- more successful you are at your profession— f ting your lives on the line in Kosovo or Ku- the more peace you bring to our country— wait or Korea. When the enemy is as ambig- the less you are likely to be appreciated for A SALUTE TO FATHER JAMES uous as instability, it is, I am afraid, too what you do. VERNON MATTHEWS, II IN CELE- likely that your leaders will sometimes The famous British poet, Rudyard Kipling, BRATION OF HIS 25 YEARS OF wrote a poem entitled ‘‘Tommy’’ about the sound an uncertain trumpet. And that may FAITHFUL SERVICE AND COM- treatment of soldiers in time of peace. It is lead some of you very soon—and perhaps MITMENT TO OUR COMMUNITY written from the point of view of a British every one of you sooner or later—to question infantryman, dressed in his red coat, who whether the demands we are making on you was refused a pint of beer at a ‘‘Public are justifiable. For to affirm, in this histor- HON. BARBARA LEE House,’’ and he complains ical era, that peace is your profession, will OF CALIFORNIA ‘‘For it’s Tommy this, an’ Tommy that, an’ very likely require you to face some very ‘‘Chuck him out, the brute!’’ IN THE HOUSE OF REPRESENTATIVES profound questions about your commitment But its ‘‘Saviour of ’is country,’’ when the Tuesday, May 4, 1999 to duty and to country. I hope that all of you will elect to stay and Guns begin to shoot.’’ In time of war, we band together as a Na- Ms. LEE. Mr. Speaker, it gives me great serve as long and as well as you are able. Let tion. In time of peace—even in time of a very honor to rise today and bring to the attention me recall for you that your predecessors troubled and difficult peace—many of our of the United States House of Representatives have also had to face difficult personal ques- fellow citizens focus on other things. It is tions. After the war in Vietnam, I know that a man many residents in my Congressional your job to let them do that. It is your job many professional service members—at all District affectionately know as Father Jay. not to let them forget you even as they focus Father James Vernon Matthews, II was or- grades—felt abandoned if not betrayed by on other things. their country. Some left the service—but A great many thoughtful, well-informed dained as the first Black Catholic Priest in many stayed, and those who stayed man- people are concerned these days about what northern California on May 3, 1974. aged, in the end, to rebuild the American they perceive as a growing gap between mili- Born in 1948 in Berkeley, California, to military into a force that is the best we have tary and civilian society in the United Yvonne Marie Feast and James Vernon Mat- ever had. Inevitably you are going to face de- States. I, too, worry about that. thews, the Reverend Matthews graduated mands that will challenge your commit- Let me be clear about this. I don’t worry from Oakland's Skyline High School in 1966. ment. I hope you will understand that the that the military will somehow become a He received a Bachelor of Arts Degree in Hu- task you are engaged in—to keep the peace— renegade force, or that military leaders will is as important to your country as the duty defy civilian leadership. That is not a real manities and Philosophy from St. Patrick Col- asked of any soldier, sailor, marine or air- concern to me. All of you have been imbued lege, Mt. View, California in 1970, a Master of man who has gone before. with the importance of civilian control of Divinity Degree from St. Patrick Seminary, There is one other reason why I think you the military as part of your very souls. You Menlo Park, California in 1973 and attended need to consider carefully what it means to have joined the military to protect our the Continuing Education Program for Doctor say ‘‘Peace is our Profession.’’ You are part great, free society, not to try, futilely, to of Ministry (Candidate) at the Jesuit School of of a society in which your fellow citizens are control it. I don’t believe any group or insti- Theology in Berkeley, California from 1977 to often very assertive of their rights. Veterans tution can control it. are not immune to that sentiment, by the I worry, rather, that if you feel yourselves 1979. way. But that is entirely appropriate—that to be cut off from society, to be abandoned Over, the past 25 years, Father Jay has is, in part, what America is all about. by it, to feel it’s failings as somehow alien- provided our community with a tireless com- I was taught something, however, that beating—then your alienation will become a mitment to service. He has conducted comes more brilliantly clear to me with self-fulfilling reality. You will not do what is throughout the United States retreats for youth every passing year. I was taught that with needed to ensure continued public under- and workshops and retreats for African Amer- rights come responsibilities. When your fore- standing of your role and continued public ican Catholic vicariates and pastoral centers, bears lifted into the air in a bomber armed support of your vital mission. with weapons that could wreak a holocaust, American society, for good or ill—mostly participated as a team leader in Black Cultural they were accepting a grave responsibility. for the good—is absorbed in other things Weekends of the Marriage Encounter Move- When you say, ‘‘Peace is our Profession,’’ than ensuring the peace. Americans make ment and most notably in 1993, conducted the you are embracing a vocation in which you you responsible for that great task. You St. Jude Novena at the National Shrine in are going to bear a much larger share of the have to tell them about it. You cannot afford Vancouver, British Columbia, Canada. responsibilities than almost all of your fel- to feel that your great responsibility makes Father Jay's pastoral service has been as: low citizens. you somehow unique or somehow deserving Administrator and Associate Pastor of St. The need for you to act responsibly has al- of support. You are deserving of support. But ready been impressed upon you in many you have to reach out to your fellow citizens Cornelius Church, Richmond; St. Cyril Church, ways in this great institution. You have been to let them know that. Oakland and All Saints Church, Hayward; As- held to standards of personal conduct much How should you do that? Partly it is a sociate Pastor, Saint Louis Bertrand Church, more stringent than those required of others matter of attitude. Don’t let yourself feel Oakland; Deacon, Saint Columba Church, E854 CONGRESSIONAL RECORD — Extensions of Remarks May 4, 1999 Oakland: Teacher, Bishop O'Dowd High youth volunteers submitted applications for loans in low-income communities. More than School, Oakland; and Youth Minister of the Di- these awards, Gabriella Contreras and Ryan 90 percent of these loans came in the past ocese of Oakland. Leybas are among 104 students from across seven years. As a result, neighborhoods have Father Jay's professional affiliations include the United States who were chosen for this prospered, communities have flourished, small actively serving on several boards & organiza- honor. businesses have succeeded and the quality of tions, including Catholic Charities, Catechetical Gabriella Contreras, a 13-year-old 7th grad- life for many has improved. Ministries of the Diocese of Oakland, Alameda er at Roskruge Middle School in Tucson, had Today's Washington Post wrote, Cancer Society, Bay Area, Black United Fund, the additional honor of being named one of . . . Since 1977 federally insured banks have Knights of St. Peter Claver, Knights of Colum- America's top ten youth volunteers by Pruden- been subject to the Community Reinvest- bus, Catholic Daughters of the Americas, Bay tial. When she was nine, Gabriella organized ment Act, requiring them to seek business Area Urban League, NAACP, Martin Luther a community service club at her school in re- opportunities in poor areas as well as mid- King, Jr. Birthday Observance Committee, Na- sponse to a nearby high school's problems dle-class and wealthy neighborhoods. The law, a response originally to clear evidence tional Association of Black Catholic Adminis- with violence, gang activity, and drug use. Now in it's fifth year, Gabriella's ``Club of bias in lending, has worked well. It doesn’t trators, National Catholic Conference on Inter- force banks to make unprofitable loans, but racial Justice, Coordinating Committee, City of B.A.D.D.D.,'' which stands for ``Be AlertÐDon't it encourages them to look beyond tradi- Oakland Strategic Plan, Oakland Mayor's Ad- Do Drugs,'' helps students channel their time tional customers, and it’s had a beneficial ef- visory Council on Education, ChaplainÐOak- and energy into community service projects. fect on home ownership and small-business land Fire Department, Board of DirectorsÐ These projects have included clothing and lending. Comprehensive Health Improvement Project, food drives, annual ``peace'' marches, recy- Many banks share this view. John B. East Oakland Youth Development Center, and cling campaigns, schoolwide cleanups, and McCoy, President and CEO of one of the larg- is the Chairman of the Church Committee for anti-drug art gallery, and a citywide youth vol- est and profitable banks in the nation, Bank the United Negro College Fund of the East unteer summit. Club B.A.D.D.D., known as the One, testified before the House Banking Com- Bay. club that does good, now draws more than mittee on February 10 that his bank is ``work- Father Jay has been the recipient of numer- 500 people to some events and is being pro- ing effectively and successfully with CRA.'' ous awards including the Martin Luther King, moted at other schools. However, there are those in Congress who Jr. Award for Outstanding Community Service, Ryan Leybas, the other honoree from Arizo- are attempting to undermine the success of the Marcus Foster Educational Institute's Dis- na's 5th District, is an 18 year old senior at the Community Reinvestment Act, either by tinguished Alumni Award, the Rose Casanave Casa Grande Union High School. Five years refusing to expand it or calling for its outright Service Award of the Black Catholic Vicariate, ago, Ryan founded a leadership camp for jun- end. as well as service awards from the Ladies ior high students to teach them skills to suc- I hope that my colleagues were listening Auxiliary of the Knights of St. Peter Claver and ceed in school and life. With the support of the today. The Community Reinvestment Act is a the Bay Area chapter of the Xavier University, Pinal County school superintendent, what wise investment with a sure return. I applaud New Orleans Alumni Association. started out as a requirement for a Boy Scout the efforts of the Leadership Conference on Currently, Father Jay serves as Chaplain of merit badge has expanded into 120 partici- Civil Rights and join in their crusade to protect Black Catholics of the Diocese of Oakland and pants this year, with at least two students from and expand the Community Reinvestment Act. Pastor of St. Benedict Church, Oakland. almost every school in Pinal County attending f Throughout his life, Father Jay has epito- the three-day camp. Ryan, who is developing mized the ideal of a true man of God. He is the leadership camp into a model that can be PERSONAL EXPLANATION a powerful role model in his immediate com- used in other states, continues to recruit stu- munity and communities throughout the coun- dents, coordinate logistics and find motiva- HON. MATT SALMON try. The love and service he shows towards all tional guest speakers for the camp. OF ARIZONA Both of these young people have shown ex- people regardless of race, creed, or religious IN THE HOUSE OF REPRESENTATIVES background has gained him the respect of his ceptional talent in working with their peers for Tuesday, May 4, 1999 peers. the betterment of their communities and their On June 1, 1999 Father Jay will have the schools. I'd like to recognize them for their Mr. SALMON Mr. Speaker, I'm recorded as distinct privilege and honor to further his reli- achievements as Prudential Spirit of Commu- having voted ``nay'' on House rollcall vote No. gious studies at the Vatican with a one year nity State Honorees, and I look forward to 107. I intended to vote ``aye.'' Isn't it ironic that sabbatical from his current duties in the Dio- working with them as they become tomorrow's on the day that I am putting the finishing cese of Oakland. adult leaders of Arizona. touches on the revised K±12 Education Excel- It is a great honor to salute Father Jay, not f lence Now (KEEN) Act, which now explicitly just for his 25 years of service as a Catholic THE COMMUNITY REINVESTMENT offers a federal tax credit of up to $250 annu- priest but for the many years of warmth, com- ACT—MAKING AMERICA STRONGER ally for teachers who purchase school supplies passion and love he has shared with our com- for their students with their own money, I munity. The City of Oakland and its sur- HON. JANICE D. SCHAKOWSKY would make this error. rounding environs are a better place to live f OF ILLINOIS because of his firm commitment to improving IN THE HOUSE OF REPRESENTATIVES the human condition of all people. TRIBUTE TO RABBI ABRAHAM I wish Father Jay continued success as he Tuesday, May 4, 1999 KELMAN embarks upon the next 25 years of service to Ms. SCHAKOWSKY. Mr. Speaker, today, God, his country and the people of Oakland. the Leadership Conference on Civil Rights HON. ANTHONY D. WEINER f sent a clear and loud message to CongressÐ OF NEW YORK stop the attack on the Community Reinvest- IN THE HOUSE OF REPRESENTATIVES TRIBUTE TO GABRIELLA ment Act (CRA). Enough is enough. Tuesday, May 4, 1999 CONTRERAS AND RYAN LEYBAS I wholeheartedly agree. The Leadership Conference on Civil Rights Mr. WEINER. Mr. Speaker, I rise today to HON. JIM KOLBE is an impressive coalition of more than 180 invite my colleagues to pay tribute to Rabbi OF ARIZONA national organizations, representing people of Abraham Kelman on his being honored by the IN THE HOUSE OF REPRESENTATIVES color, women, children, labor unions, persons Rabbis and Congregations of Flatbush and Vi- with disabilities, older Americans, major reli- cinity on the occasion of their Annual Break- Tuesday, May 4, 1999 gious groups, gays and lesbians and civil lib- fast on behalf of the Ezras Torah Charity Mr. KOLBE. Mr. Speaker, today I met two erties and human rights groups. In a collective Fund. young people from the 5th District of Arizona voice, the Leadership Conference on Civil Rabbi Abraham Kelman is an eighth gen- who are really making a difference in their Rights, once more, made it known to those eration Rabbi in his family, a tradition which is communities. Both of them are Prudential who stubbornly want to believe otherwise, that continued today by his son, Rabbi Lieb Spirit of Community State Honorees for 1999, the Community Reinvestment Act is a suc- Kelman. The Kelman family has traditionally and were hosted in Washington, DC by Pru- cess. been involved in Chinuch and community ac- dential and the National Association of Sec- Since its enactment in 1977, financial insti- tivities as a means of helping those who are ondary School Principals. While nearly 20,000 tutions have made more than $1 trillion in unable to help themselves. CONGRESSIONAL RECORD — Extensions of Remarks E855 Before coming to New York, Rabbi Kelman ‘‘His goal is to build a consensus around incorrect, including where he allegedly told was a Rabbi in Toronto for nine years. He re- issues we should be focusing on— and those police he saw three friends beat Lenard. ceived Smicha in Toronto, as well as a B.A. are education, fighting the drug war, pro- He described being held for questioning for tecting the developmentally disabled,’’ said more than nine hours at the police station, and M.A. in Oriental Languages from the Uni- Bush’s press secretary Nicolle Devenish. where he claims he was interrogated, put versity of Toronto. In addition, Rabbi Kelman ‘‘His focus is not going to be on this political through a police lineup and told that he was was a chaplain in the Canadian army during debate right now.’’ lying when he said he did not witness the World War II. Connerly said Bush is behind a concerted beating. Rabbi Abraham Kelman is the founder and effort to keep the initiative off the Florida He said he signed the statement because Dean of Bnos Leah Prospect park Yeshiva. Ballot. police allegedly told him he could go home ‘‘I can overcome the obstacle of the sitting Since it's founding in 1952, the school has and would not be charged if he did so. He tes- governor of my party who is siccing his at- tified it was also after he heard his attor- provided thousands of youngsters with a tack dogs on me and his party against a strong secular and Jewish education. Thanks ney’s voice in the station but was not able to proposition I believe in,’’ Connerly said. ‘‘I see him. to the dedicated efforts of Rabbi Kelman, believe the establishment is wrong, is dead ‘‘I thought after I heard (the lawyer’s Bnos Leah Prospect Park Yeshiva has seen wrong on this issue.’’ voice) . . . and they didn’t let him see me, I Connerly, who also made announcements its enrollment rise to more than 1,300 stu- thought they could do whatever they wanted in Jacksonville and Altamonte Springs, said dents. He is also the Rabbi of the Yeshiva to,’’ he said. he plans to get one or more initiatives on the John O’Malley, his attorney at the time, Congregation of Prospect Park. November ballot next year or 2002. Rabbi Abraham Kelman is the author of a ‘‘It’s like an old car. It’s got a lot of mile- also testified that he was at the police sta- number of books such as ``Prospectives on age on it and it’s ready to sputter out any tion for more than two hours before he was the Parsha.'' He was instrumental in orga- minute,’’ Connerly said of affirmative ac- able to see DeSantis—and after DeSantis nizing the Prospect Park Nursing Home, a tion. ‘‘I think we should give it a graceful resigned the statement. But under questioning by Assistant State’s nonprofit facility in the Flatbush section of tirement and find a way of getting some new wheels that solves some real needs.’’ Attorney Robert Berlin, DeSantis conceded Brooklyn dedicated to meeting the needs of He said that economic-based affirmative that authorities let him read the statement our senior citizens. action should replace the raced-based pref- and make any changes before he signed it. Rabbi Abraham Kelman has long been erences that has spilled over into private Frank Caruso Jr. received an eight-year known as an innovator and beacon of good businesses and caused so much resentment in sentence after being found guilty of aggra- will to all those with whom he has come into the workplace. vated battery and committing a hate crime, contact. Through his dedicated efforts, he has ‘‘We are talking about getting rid of the but innocent of attempted murder. Victor helped improve my constituents' quality of life. marginalization that flows from race-based Jasas, 18, and Michael Kwidzinski, 21, re- affirmative action,’’ Connerly said ‘‘. . . it is ceived probation and community service In recognition of his many accomplishments all over America.’’ after accepting plea agreements. on behalf of my constituents, I offer my con- Connerly, a member of the University of Clark, now 15, cannot remember the at- gratulations to Rabbi Abraham Kelman on the California Board of Regents, would need to tack. All three defendants were accused of occasion of the Rabbis and Congregations of gather 435,073 signatures to put the measure knocking Clark from his bicycle, then kick- Flatbush and Vicinity's Annual Breakfast on on the Florida ballot. ing and pummeling him until he was uncon- behalf of the Ezras Torah Charity Fund. Rev. Jesse Jackson, who was in Miami to scious. f talk about AIDS in the black community, said Connerly was ‘‘trying to peddle fear’’ RACIAL ATTACK EXPOSING RACISM and is going to have trouble without Bush’s support. DARIEN, Conn.—A white businessman ac- ‘‘Gov. Wilson in California cooperated with cused of stabbing a black man in the face HON. BENNIE G. THOMPSON Ward Connerly,’’ said the Rev. Jesse Jack- with a pen on board a Metro North train has OF MISSISSIPPI son. ‘‘It seems like Gov. Bush will not. Flor- been given special probation in the case. IN THE HOUSE OF REPRESENTATIVES ida must avoid the mistake made by Cali- Kevin Keady was arrested by Metro North fornia.’’ police June 28, 1996, after he allegedly hurled Tuesday, May 4, 1999 Washington Gov. Gary Locke, though, op- racial slurs and his fists at Michael Moore on Mr. THOMPSON of Mississippi. Mr. Speak- posed a Connerly-backed measure in 1998 and a train. er, in my continuing efforts to document and it passed with 58 percent of the vote. Keady allegedly used a pen as a dagger to expose racism in America, I submit the fol- slash Moore’s face. Moore’s nose was broken ALLEGED WITNESS TO ATTACK SAYS and he received stitches to repair a torn ear lowing articles into the CONGRESSIONAL STATEMENT COERCED lobe, said Moore’s attorney, Charles Harris, RECORD. (By Tammy Webber) Keady was charged with intimidation by big- FLORIDA TO BECOME BATTLEGROUND STATE ON CHICAGO (AP).—The man prosecutors otry or bias and second-degree assault. RACIAL, GENDER PREFERENCES once described as their key witness to the A Superior Court judge last week granted 1997 racial beating of a 13-year-old black boy Keady accelerated rehabilitation which is available to first-time offenders who face (By John Pacenti) now claims his rights were violated during police questioning. charges that could result in prison time. If MIAMI—The California businessman who Richard DeSantis, 20, is charged with ob- the defendant successfully completes the plans to launch a ballot initiative to abolish structing justice after disappearing for eight two-year probation, all records are erased. state-sponsored racial and gender pref- months as prosecutors tried to build a case Keady denies the charges. He claimed erences in Florida attacked Gov. Jeb Bush against three men charged with beating Moore and others attacked him and uttered on Monday as a purveyor of racial politics Lenard Clark into a coma after he wandered bigoted remarks. He filed a civil lawsuit who is ‘‘siccing his attack dogs on me.’’ into their predominantly white Bridgeport against Moore in July 1998. Ward Connerly, a black conservative Re- neighborhood. Moore also has sued Keady. A Superior publican who has been successful with simi- His disappearance forced a five-month Court judge awarded him a $150,000 lien on lar propositions in California and Wash- delay in the trials before prosecutors decided Keady’s home in Darien, ruling that there is ington, said a poll he commissioned found 80 to proceed without him. One defendant was probable cause that Moore could win at least percent of Floridians support his proposal. sentenced to eight years in prison for aggra- that much. Moore’s suit seeks $15,000 in dam- Lawmakers, though, are a different story. vated battery and committing a hate crime, ages for claims of assault and battery, false ‘‘Florida doesn’t need somebody from Cali- while two others accepted plea agreements imprisonment and intimidation based on fornia to come here and tell it how to write and got probation and community service. bias or bigotry. its Constitution,’’ said U.S. Sen. Bob DeSantis on Monday claimed authorities Keady’s next scheduled court date is March Graham, D-Fla. coerced him into signing a statement and 9, 2001, after the completion of his special Connerly said politicians, particularly Re- would not allow him to speak to his attorney probation. publicans, are afraid of offending black vot- despite repeated requests. ers. He described campaigning in black The statement, therefore, should not be ad- NUMBER OF BLACK APPLICANTS TO UW LAW churches, like Bush did, as playing the ‘‘race missible in court, said attorney James SCHOOL PLUMMETS card.’’ Cutrone, who was not DeSantis’ attorney at ‘‘That is saying I want your vote on the the time he signed the statement. SEATTLE.—The number of black appli- basis of your skin color, on the basis of your Cutrone said if the Cook County Judge cants to the University of Washington Law ethnicity,’’ he said. Robert W. Bertucci grants the motion to School has plummeted since a voter-ap- Bush met with Connerly in January and suppress the statement, the county should proved ban on public affirmative action pro- later wrote a letter to him saying he felt a drop its case. Testimony is scheduled to con- grams. ballot initiative targeting affirmative action tinue today. In the first round of admissions since the would be divisive. The governor refused to Under questioning Monday, DeSantis said initiative became law in December, the num- answer questions on the matter Monday. several portions of his signed statement are ber of black applicants was down 41 percent E856 CONGRESSIONAL RECORD — Extensions of Remarks May 4, 1999 from a year earlier. Applications from Fili- ‘‘One possibility has to be that Initiative But the man who ran the initiative cam- pinos and Hispanics also are down, by 26 per- 200 has caused a chilling climate in which paign took a different tact. cent and 21 percent, respectively, while total minority men and women are reluctant to applications were off 6 percent through apply for fear they won’t be welcome at the ‘‘I think it shows that the word is getting March 5. university,’’ President Richard McCormick out on the street that the use of race-driven Although too early to say what this year’s said. admissions is becoming a thing of the past,’’ entering class will look like, university offi- ‘‘The applications are the material with John Carlson said. ‘‘Students are more apt cials say the new figures may confirm their which you have to work, and if minority ap- to apply to schools that match their skills fear that the law prohibiting race consider- plications are down, it doesn’t help with re- levels.’’ ation in admissions will make the univer- spect to the recruitment of a diverse class,’’ sity’s population less diverse. McCormick said. Daily Digest Senate Chamber Action Additional Cosponsors: Page S4680 Amendments Submitted: Pages S4682±S4717 Routine Proceedings, pages S4611–S4724 Notices of Hearings: Pages S4717±18 Measures Introduced: Eleven bills and three resolutions were introduced, as follows: S. 948–958, and Authority for Committees: Page S4718 S. Res. 93–95. Pages S4664±65 Additional Statements: Pages S4718±23 Measure Rejected: Record Votes: One record vote was taken today. U.S. Armed Forces Deployment to Kosovo: S.J. (Total—98). Page S4616 Res. 20, concerning the deployment of the United Adjournment: Senate convened at 9:30 a.m., and States Armed Forces to the Kosovo region in Yugo- adjourned at 7:08 p.m., until 9:30 a.m., on Wednes- slavia. (By 78 yeas to 22 nays (Vote No. 98), Senate day, May 5, 1999. (For Senate’s program, see the re- tabled the resolution.) Pages S4611±16 marks of the Acting Majority Leader in today’s Financial Services Modernization Act: Senate record on pages S4723–24.) agreed to the motion to proceed to the consideration of S. 900, to enhance competition in the financial Committee Meetings services industry by providing a prudential framework for the affiliation of banks, securities firms, in- (Committees not listed did not meet) surance companies, and other financial service pro- NOMINATION viders, and began consideration of the bill, taking action on the following amendments proposed there- Committee on Armed Services: Committee concluded hearings on the nomination of Carolyn L. Huntoon, to: Pages S4616±58 of Virginia, to be Assistant Secretary of Energy for Pending: Environmental Management, after the nominee fur- Sarbanes (for Daschle/Sarbanes) Amendment No. ther testified and answered questions in her own be- 302, in the nature of a substitute. Pages S4648±58 half. A unanimous-consent agreement was reached providing for further consideration of the bill and the U.S. AGRICULTURAL EXPORTS pending amendment, and that Senator Gramm be Committee on Banking, Housing, and Urban Affairs: recognized at 12 noon to make a motion to table the Subcommittee on International Trade and Finance pending Sarbanes Amendment No. 302 (listed concluded oversight hearings on the effects of inter- above), on Wednesday, May 5, 1999. Page S4723 national institutions on United States agricultural Commending Rev. Jesse Jackson—Agreement: A exports, focusing on upcoming World Trade Organi- unanimous-consent agreement was reached providing zation negotiations, International Monetary Fund for a vote on the adoption of S. Res. 94, com- funding holds, the World Bank, ‘‘fast track author- mending the efforts of the Reverend Jesse Jackson to ity’’, tariff-rate quotas, export subsidies, state trading secure the release of the soldiers held by the Federal enterprises, domestic subsidies rules, trade restricting Republic of Yugoslavia, at 9:30 a.m. on Wednesday, technical barriers, and scientific innovation, after re- May 5, 1999. Page S4723 ceiving testimony from Peter L. Scher, Special Trade Negotiator, Office of the United States Trade Rep- Messages From the House: Page S4662 resentative; August Schumacher, Jr., Under Secretary Measures Referred: Page S4662 of Agriculture for Farm and Foreign Agricultural Communications: Pages S4662±63 Services; Keith Kinzer, Idaho Grain Producers Asso- ciation, Genesee; Nels J. Smith, Wyoming Stock Petitions: Pages S4663±64 Growers Association, Sundance; Dennis Jones, AGP Statements on Introduced Bills: Pages S4665±80 Inc./CoBank, Bath, South Dakota; and Bryce Neidig, D476 May 4, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D477 Nebraska Farm Bureau Federation, Madison, on be- Wildlife Agencies; Mark Van Putten, National half of the American Farm Bureau Federation. Wildlife Federation, Vienna, Virginia; and Dennis J. YOUTH VIOLENCE Foster, Leesburg, Virginia, on behalf of the Masters of Foxhounds Association of America, and the Wild- Committee on Commerce, Science, and Transportation: life Legislative Fund of America. Committee held hearings on how the violence that Hearings continue on Tuesday, May 11. is marketed to children through media and toys is harming children’s development, learning, play, and MEDICARE/DEPARTMENT OF DEFENSE behavior, and measures that help to reduce children’s SUBVENTION exposure to entertainment violence, receiving testi- Committee on Finance: Committee held hearings on the mony from Senators Hatch and Lieberman; William status of the participation of the Department of De- J. Bennett, Empower America, former Secretary of fense in a Medicare subvention demonstration project Education, Jack Valenti, Motion Picture Association established under the Balanced Budget Act of 1997, of America, and Doug Lowenstein, Interactive Dig- and a related measure S. 445, to amend title XVIII ital Software Association, all of Washington, D.C.; of the Social Security Act to require the Secretary of Most Rev. Charles J. Chaput, Archbishop of Denver, Veterans Affairs and the Secretary of Health and Colorado; Dave A. Grossman, Arkansas State Univer- Human Services to carry out a demonstration project sity, Jonesboro; Daphne White, The Lion & Lamb to provide the Department of Veterans Affairs with Project, Bethesda, Maryland; Henry Jenkins, Massa- Medicare reimbursement for Medicare healthcare chusetts Institute of Technology, Cambridge; L. services provided to certain Medicare-eligible vet- Rowell Huesmann, University of Michigan, Ann erans, receiving testimony from Senator Specter; Arbor; and Diane Levin, Wheelock College, Boston, Togo D. West, Jr., Secretary, and Kenneth W. Massachusetts. Kizer, Under Secretary for Health, both of the De- Hearings recessed subject to call. partment of Veterans Affairs; Robert A. Berenson, OUTER CONTINENTAL SHELF REVENUES Director, Center for Health Plans and Providers, Committee on Energy and Natural Resources: Committee Health Care Financing Administration, Department resumed hearings on S. 25, to provide Coastal Im- of Health and Human Services; Rear Adm. Thomas pact Assistance to State and local governments, to F. Carrato, Director, Military Health System Oper- amend the Outer Continental Shelf Lands Act ations, Tricare Management Activity, Department of Amendments of 1978, the Land and Water Con- Defense; William J. Scanlon, Director, Health Fi- servation Fund Act of 1965, the Urban Park and nancing and Public Health Issues, and Stephen P. Recreation Recovery Act, and the Federal Aid in Backhus, Director, Veterans’ Affairs and Military Wildlife Restoration Act (commonly referred to a Health Care Issues, both of the Health, Education, the Pittman-Robertson Act) to establish a fund to and Human Services Division, General Accounting meet the outdoor conservation and recreation needs Office; James E. Woys, Foundation Health Federal of the American people, S. 446, to provide for the Services, Inc., Rancho Cordova, California; and Jo permanent protection of the resources of the United Ann K. Webb, Paralyzed Veterans of America, States in the year 2000 and beyond, S. 532, to pro- Washington, D.C. vide increased funding for the Land and Water Con- Hearings recessed subject to call. servation Fund and Urban Parks and Recreation Re- covery Programs, to resume the funding of the State BALLISTIC MISSILE DEFENSE TECHNOLOGY grants program of the Land and Water Conservation Committee on Foreign Relations: Committee resumed Fund, and to provide for the acquisition and devel- hearings on issues relating to the 1972 Antiballistic opment of conservation and recreation facilities and Missile Treaty, focusing on the technological feasi- programs in urban areas, S. 819, to provide funding bility of the United States ballistic missile defense, for the National Park System from outer Continental receiving testimony from Senator Shelby; William Shelf revenues, and the Administration’s Lands Leg- Robert Graham, National Security Research, Inc., acy Initiative, receiving testimony from Senators Fairfax, Virginia, former Director of White House Feinstein and Boxer; former Senator Malcolm Wal- Office of Science and Technology Policy; Gen. John lop, on behalf of the Frontiers of Freedom; Ron Mar- Piotrowski, Colorado Springs, Colorado, former lenee, Safari Club International, Fairfax, Virginia; Commander in Chief of Space Command; Richard L. Thomas C. Kiernan, National Parks and Conserva- Garwin, Council on Foreign Relations, New York, tion Association, and Mark L. Shaffer, Defenders of New York; and David Wright, Massachusetts Insti- Wildlife, both of Washington, D.C.; David Waller, tute of Technology Security Studies Program, Cam- Georgia Wildlife Resources Division, Social Circle, bridge. on behalf of the International Association of Fish and Hearings continue tomorrow. D478 CONGRESSIONAL RECORD — DAILY DIGEST May 4, 1999 INTERNATIONAL ANTITRUST Scarborough, Columbia, South Carolina; Richard A. ENFORCEMENT Daynard, Northeastern University School of Law, Committee on the Judiciary: Subcommittee on Anti- Boston, Massachusetts; and John H. Beisner, trust, Business Rights, and Competition concluded O’Melveny and Myers, Washington, D.C. oversight hearings on issues relating to international INDIAN CENSUS 2000 antitrust cooperation and enforcement, including positive comity agreements, the flat glass industry, Committee on Indian Affairs: Committee concluded and problems with the Japanese market, after receiv- oversight hearings to examine the Bureau of the ing testimony from Joel I. Klein, Assistant Attorney Census Year 2000 plans for testing and developing General, Antitrust Division, Department of Justice; enumeration procedures and methods for American Robert Pitofsky, Chairman, Federal Trade Commis- Indian tribes and Alaska Native villages, after receiv- sion; Gorton M. Evans, Consolidated Papers, Inc., ing testimony from Kenneth Prewitt, Director, and Wisconsin Rapids, Wisconsin; John C. Reichenbach, Belva Morrison, Team Leader, Tribal Partnership Jr., Pittsburgh Plate and Glass Industries, Inc., Program, Denver Region, both of the Bureau of the Washington, D.C.; and Peter S. Walters, Guardian Census, Department of Commerce; Curtis Zunigha, Industries Corporation; Auburn Hills, Michigan. Delaware Tribe of Indians, Bartlesville, Oklahoma, Robert Wayne Nygaard, Sault Ste. Marie Chippewa CLASS ACTION REFORM Tribe, Sault Ste. Marie, Michigan, Gregory A. Rich- Committee on the Judiciary: Subcommittee on Admin- ardson, North Carolina State Commission of Indian istrative Oversight and the Courts concluded hear- Affairs, Hollister, and Glenda Ahhaitty, Los Angeles, ings on S. 353, to provide for class action reform, California, all on behalf of the U.S. Census Bureau after receiving testimony from Senator Kohl; Eleanor Advisory Committee on American Indians and Alas- D. Acheson, Assistant Attorney General, Office of ka Native Populations; Taylor McKenzie, Navajo Policy Development, Department of Justice; John P. Nation, Window Rock, Arizona; JoAnn K. Chase, Frank, Lewis and Roca, Phoenix, Arizona; E. Donald National Congress of American Indians, Wash- Elliott, Yale Law School, New Haven, Connecticut; ington, D.C.; and Edna L. Paisano, Nez Perce Na- Stephen G. Morrison, Nelson, Mullins, Riley and tion, Idaho. h House of Representatives Transfer to the Estate of Fred Steffens: H.R. Chamber Action 509, as amended, to direct the Secretary of the Inte- Bills Introduced: 25 public bills, H.R. 1658–1682; rior to transfer to the personal representative of the 1 private bill, H.R. 1683; and 3 resolutions, H.J. estate of Fred Steffens of Big Horn County, Wyo- Res. 50, H. Con. Res. 94, and H. Res. 157, were ming, certain land comprising the Steffens family introduced. Pages H2634±36 property; and Page H2560 Reports Filed: Reports were filed today as follows: Transfer of Land to John R. and Margaret J. Report on the Suballocation of Budget Allocations Lowe: H.R. 510, to direct the Secretary of the Inte- for Fiscal Year 1999 (H. Rept. 106–124); rior to transfer to John R. and Margaret J. Lowe of H.R. 1664, making emergency supplemental ap- Big Horn County, Wyoming, certain land so as to propriations for military operations, refugee relief, correct an error in the patent issued to their prede- and humanitarian assistance relating to the conflict in Kosovo, and for military operations in Southwest cessors in interest. Pages H2560±61 Asia for the fiscal year ending September 30, 1999 Commission on Civil Rights: The Chair announced (H. Rept. 106–125); and the Speaker’s appointment, upon the recommenda- H. Res. 158, providing for consideration of H.R. tion of the Minority Leader, of Mr. Christopher F. 833, to amend title 11 of the United States Code Edley, Jr. of Cambridge, Massachusetts to the Com- (H. Rept. 106–126). Page H2634 mission on Civil Rights. Page H2563 Recess: The House recessed at 1:11 p.m. and recon- National Skill Standards Board: The Chair an- vened at 2:00 p.m. Page H2560 nounced the Speaker’s reappointment, upon the rec- Private Calendar: On the call of the Private Cal- ommendation of the Minority Leader, of Ms. Carolyn endar, the House passed the following measures: Warner of Phoenix, Arizona, and Mr. George Bliss, May 4, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D479 of Washington, D.C. to the National Skill Standards J.J. ‘‘Jake’’ Pickle Federal Building: H.R. 118, Board. Page H2563 to designate the Federal building located at 300 East Suspensions: The House agreed to suspend the rules 8th Street in Austin, Texas, as the ‘‘J.J. ‘Jake’ Pickle and pass the following measures: Federal Building’’; Pages H2594±98 IDEA Full Funding: H. Con. Res. 84, amended, Jose V. Toledo U.S. Post Office and Courthouse: urging the Congress and the President to fully fund H.R. 560, amended, to designate the Federal building located at 300 Recinto Sur Street in Old San the federal government’s obligation under the Indi- Juan, Puerto Rico, as the ‘‘Jose V. Toledo United viduals with Disabilities Education Act, (passed by States Post Office and Courthouse’’. Agreed to a yea and nay vote of 413 yeas and 2 nays with 1 amend the title; Pages H2598±H2600 voting ‘‘present’’, Roll No. 105); Pages H2563±70, H2584±85 Garza-Vela U.S. Courthouse: H.R. 686, to designate a United States courthouse in Brownsville, Increased Funding for Pell Grant Programs: H. Texas, as the ‘‘Garza-Vela United States Court- Con. Res. 88, urging the Congress and the President house’’; and Pages H2600±01 to increase funding for the Pell grant program and existing campus-based aid programs, (passed by a yea Commending the Reverend Jesse L. Jackson: H. and nay vote of 397 yeas and 13 nays with 4 voting Res. 156, amended, commending the Reverend Jesse L. Jackson, Sr. on securing the release of Specialist ‘‘present’’, Roll No. 106); Pages H2570±77, H2585±86 Steven Gonzales of Huntsville, Texas, Staff Sergeant Tribute to Our Nation’s Teachers: H. Res. 157, Andrew Ramirez of Los Angeles, California, and expressing the sense of the House of Representatives Staff Sergeant Christopher Stone of Smiths Creek, in support of America’s teachers (passed by a yea and Michigan, from captivity in Belgrade, Yugoslavia. nay vote of 408 yeas and 1 nay, Roll No. 107); Agreed to amend the title. Pages H2601±08 Pages H2577±84, H2586 Senate Messages: Message received by the Clerk on Mt. Hope Waterpower Project Deadline Exten- April 30 appears on page H2561. sion: H.R. 459, to extend the deadline under the Quorum Calls—Votes: Three yea and nay votes de- Federal Power Act for FERC Project No. 9401, the veloped during the proceedings of the House today Mt. Hope Waterpower Project; Pages H2587±88 and appear on pages H2584–85, H2585–86, and Lewis R. Morgan Federal Building and Court- H2586. There were no quorum calls. house: H.R. 1121, to designate the Federal building Adjournment: The House met at 12:30 p.m. and and United States courthouse located at 18 Green- adjourned at 10:47 p.m. ville Street in Newnan, Georgia, as the ‘‘Lewis R. Morgan Federal Building and United States Court- house’’; Pages H2588±91 Committee Meetings William H. Natcher Bridge: H.R. 1162, to des- SECTION 8 ‘‘OPT-OUTS’’ AND EMERGENCY ignate the bridge on United States Route 231 that RESIDENTS PROTECTION ACT crosses the Ohio River between Maceo, Kentucky, and Rockport, Indiana, as the ‘‘William H. Natcher Committee on Banking and Financial Services: Sub- committee on Housing held a hearing on Section 8 Bridge’’; Pages H2591±92 ‘‘Opt-Outs’’ and H.R. 1136, Emergency Residents Robert K. Rodibaugh U.S. Bankruptcy Court: S. Protection Act. Testimony was heard from William 460, to designate the United States courthouse lo- Apgar, Assistant Secretary, Housing-Federal Housing cated at 401 South Michigan Street in South Bend, Commissioner, Department of Housing and Urban Indiana, as the ‘‘Robert K. Rodibaugh United States Development; and public witnesses. Bankruptcy Courthouse’’—clearing the measure for the President; Pages H2592±94 ‘‘HOW UNIFORMITY TREATS DIVERSITY: Hurff A. Saunders Federal Building: S. 453, to DOES ONE SIZE FIT ALL?’’ designate the Federal building located at 709 West Committee on the Budget: Social Security Task Force 9th Street in Juneau, Alaska, as the ‘‘Hurff A. Saun- held a hearing on ‘‘How Uniformity Treats Diver- ders Federal Building’’—clearing the measure for the sity: Does One Size Fit All?’’ Testimony was heard President; Page H2594 from public witnesses. D480 CONGRESSIONAL RECORD — DAILY DIGEST May 4, 1999 LOSING PANAMA: THE IMPACT ON accompanying the resolution. The rule provides that REGIONAL COUNTERDRUG CAPABILITIES amendments made in order may be offered only in Committee on Government Reform: Subcommittee on the order printed in the report, may be offered only Criminal Justice, Drug Policy, and Human Re- by a Member designated in the report, shall be con- sources held a hearing on Losing Panama: The Im- sidered as read, shall be debatable for the time speci- pact on Regional Counterdrug Capabilities. Testi- fied in the report equally divided and controlled by mony was heard from Peter F. Romero, Acting As- the proponent and an opponent, shall not be subject sistant Secretary, Bureau of Western Hemisphere Af- to amendment, and shall not be subject to a demand fairs, Department of State; Ana Maria Salazar, Dep- for a division of the question in the House or in the uty Assistant Secretary, Drug Enforcement Policy Committee of the Whole. The rule allows for the and Support, Department of Defense; and public Chairman of the Committee of the Whole to post- witnesses. pone votes during consideration of the bill, and to reduce voting time to five minutes on a postponed OVERSIGHT—DOD FINANCIAL question if the vote follows a fifteen minute vote. Fi- MANAGEMENT PRACTICES nally, the rule provides one motion to recommit, Committee on Government Reform: Subcommittee on with or without instructions. Testimony was heard Government Management, Information, and Tech- from Chairman Hyde; and Representatives Gekas, nology held an oversight hearing on Financial Man- Graham, Morella, Conyers, Nadler, Watt of North agement Practices at the Department of Defense. Carolina, Jackson-Lee of Texas, Delahunt, Rothman, Testimony was heard from the following officials of Dooley of California, Moran of Virginia, Barrett of the Department of Defense: Donald Mancuso, Acting Wisconsin and Vela´zquez. Inspector General; and William Lynn, Under Sec- f retary, Chief Financial Officer; and Gene Dodaro, Assistant Comptroller General, Accounting and In- COMMITTEE MEETINGS FOR formation Management, GAO. WEDNESDAY, MAY 5, 1999 MISCELLANEOUS MEASURES (Committee meetings are open unless otherwise indicated) Committee on the Judiciary: Ordered reported the following bills: H.R. 775, amended, Year 2000 Readi- Senate ness and Responsibility Act; and H.R. 916, to make Committee on Agriculture, Nutrition, and Forestry: to hold technical amendments to section 10 of title 9, hearings on proposed legislation authorizing funds for United States Code. programs of the Commodity Exchange Act, 9 a.m., SR–328A. BANKRUPTCY REFORM ACT Committee on Appropriations: Subcommittee on Defense, Committee on Rules: The Committee granted, by voice to hold closed hearings on certain intelligence programs, vote, a structured rule on H.R. 833, Bankruptcy Re- 9:30 a.m., S–407, Capitol. form Act of 1999, providing one hour of general de- Committee on Banking, Housing, and Urban Affairs: Sub- bate to be equally divided between the chairman and committee on Financial Institutions, to hold hearings on the proposed Financial Institutions Insolvency Improve- ranking minority member of the Committee on the ment Act of 1999, 9:30 a.m., SD–538. Judiciary. The rule waives points of order against Committee on Commerce, Science, and Transportation: busi- consideration of the bill for failure to comply with ness meeting to mark up S. 305, to reform unfair and section 302 (prohibiting consideration of legislation anticompetitive practices in the professional boxing in- which exceeds a committee’s allocation of new dustry; S. 795, to amend the Fastener Quality Act to spending authority) or section 311 (prohibiting con- strengthen the protection against the sale of mismarked, sideration of legislation that would cause the total misrepresented, and counterfeit fasteners and eliminate level of new budget authority or outlays in the most unnecessary requirements; S. 296, to provide for continu- recent budget resolution to be exceeded or cause rev- ation of the Federal research investment in a fiscally sus- enues to be less) of the Congressional Budget Act. tainable way; S. 342, to authorize appropriations for the The rule provides that it shall be in order to con- National Aeronautics and Space Administration for fiscal sider as an original bill for the purpose of amend- years 2000, 2001, and 2002; and S. 376, to amend the Communications Satellite Act of 1962 to promote comment under the five-minute rule the amendment in petition and privatization in satellite communications, the nature of a substitute recommended by the Com- 9:30 a.m., SR–253. mittee on the Judiciary now printed in the bill. The Committee on Energy and Natural Resources: to resume rule waives all points of order against the committee hearings to examine damage to the national security from amendment in the nature of a substitute and amend- alleged Chinese espionage at the Department of Energy ments thereto. The rule makes in order only those nuclear weapons laboratories. (Hearings may go into a amendments printed in the Rules Committee report closed session), 9:30 a.m., SH–216. May 4, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D481

Committee on Environment and Public Works: to hold hear- Subcommittee on Postsecondary Education, Training, ings on the nomination of Timothy Fields, Jr., of Vir- and Life-Long Learning, hearing on Flexibility for Quality ginia, to be Assistant Administrator, Office of Solid Programs and Innovative Ideas for High Quality Teach- Waste, Environmental Protection Agency, 9 a.m., ers, 10:30 a.m., 2175 Rayburn. SD–406. Committee on the Judiciary, oversight hearing on Anti- Committee on Finance: to resume hearings on Medicare trust Aspects of the Ocean Shipping Reform Act of 1998, reform issues, focusing on financial obligations of tax- 10 a.m., 2141 Rayburn. payers and beneficiaries, 10 a.m., SD–215. Subcommittee on the Constitution, oversight hearing Committee on Foreign Relations: to hold hearings on issues on First Amendment and Restrictions on Political Speech, relating to the ABM Treaty, focusing on United States 2 p.m., 2237 Rayburn. strategic and arms control objectives, 10 a.m., SD–562. Subcommittee on Courts and Intellectual Property, Committee on Governmental Affairs: to hold hearings on the current state of Federal and State relations, 9 a.m., hearing on H.R. 1565, Trademark Amendments Act of SD–342. 1999, 2 p.m., 2226 Rayburn. Select Committee on Intelligence: closed business meeting Subcommittee on Immigration and Claims, oversight to mark up proposed legislation authorizing funds for fis- hearing on nonimmigrant visa fraud, 10 a.m., 2237 Ray- cal year 2000 for intelligence related programs, 3 p.m., burn. SH–219. Committee on Resources, to consider the following bills: Committee on the Judiciary: to hold oversight hearings on H.R. 359, Emigrant Wilderness Preservation Act of the programs of the Department of Justice, 9:30 a.m., 1999; H.R. 747, Arizona Statehood and Enabling Act SD–226. Amendments of 1999; H.R. 883, American Land Sov- ereignty Protection Act; H.R. 898, Spanish Peaks Wil- House derness; H.R. 1104, to authorize the Secretary of the In- Committee on Agriculture, Subcommittee on Livestock terior to transfer administrative jurisdiction over land and Horticulture, hearing to review the USDA’s final rule within the boundaries of the Home of Franklin D. Roo- for Federal Milk Marketing Order reform, 1 p.m., 1300 sevelt National Historic Site to the Archivist of the Longworth. United States for the construction of a visitor center; Committee on Commerce, Subcommittee on Finance and H.R. 1523, Forests Roads-Community Right-To-Know Hazardous Materials, to continue hearings on H.R. 10, Act; and H.R. 1524, Public Forests Emergency Act of Financial Services Act of 1999, 10 a.m., 2123 Rayburn. 1999, 11 a.m., 1324 Longworth. Committee on Education and the Workforce, Subcommittee Committee on Rules, to consider the Kosovo Emergency on Oversight and Investigations, hearing on Fiscal Year Supplemental Appropriations for Fiscal Year 1999, 1:30 1998 Audit of the Corporation for National Service, p.m., H–313 Capitol. 10:15 a.m., 2261 Rayburn. D482 CONGRESSIONAL RECORD — DAILY DIGEST

Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 9:30 a.m., Wednesday, May 5 10 a.m., Wednesday, May 5

Senate Chamber House Chamber Program for Wednesday: Senate will vote on adoption Program for Wednesday: Consideration of H.R. 833, of S. Res. 94, commending the efforts of the Rev. Jesse Bankruptcy Reform Act of 1999 (structured rule, 1 hour Jackson to secure the release of the soldiers held by the of debate). Federal Republic of Yugoslavia; following which, the Sen- ate will be in a period of morning business (not to extend beyond 11 a.m.), at which time the Senate will continue consideration of S. 900, Financial Services Modernization Act, with a vote on a motion to table Sarbanes Amend- ment No. 302.

Extensions of Remarks, as inserted in this issue

HOUSE Gilman, Benjamin A., N.Y., E839 Pelosi, Nancy, Calif., E850 Goodling, William F., Pa., E848 Phelps, David D., Ill., E846 Ackerman, Gary L., N.Y., E838 Houghton, Amo, N.Y., E851 Pitts, Joseph R., Pa., E843 Barcia, James A., Mich., E835, E839 Hunter, Duncan, Calif., E835 Radanovich, George, Calif., E835, E839 Barrett, Bill, Nebr., E843 Inslee, Jay, Wash., E837 Rangel, Charles B., N.Y., E844 Bateman, Herbert H., Va., E841 Johnson, Eddie Bernice, Tex., E850 Ros-Lehtinen, Ileana, Fla., E849 Bliley, Tom, Va., E847 Kildee, Dale E., Mich., E851 Salmon, Matt, Ariz., E854 Bonior, David E., Mich., E848 Kleczka, Gerald D., Wisc., E837 Sanchez, Loretta, Calif., E842 Boyd, Allen, Fla., E851 Kolbe, Jim, Ariz., E854 Sawyer, Thomas C., Ohio, E848 Bryant, Ed, Tenn., E850 Kucinich, Dennis J., Ohio, E837, E841 Schakowsky, Janice D., Ill., E854 Camp, Dave, Mich., E842 Lee, Barbara, Calif., E853 Serrano, Jose´ E., N.Y., E837, E841, E843 Capps, Lois, Calif., E843 Lofgren, Zoe, Calif., E846 Skelton, Ike, Mo., E852 Cummings, Elijah E., Md., E844 McIntosh, David M., Ind., E836, E840, E842, E844, E847, Thompson, Bennie G., Miss., E855 DeLauro, Rosa L., Conn., E852 E849 Thurman, Karen L., Fla., E837, E841 Dooley, Calvin M., Calif., E847 Miller, Gary G., Calif., E850 Underwood, Robert A., Guam, E844 Dreier, David, Calif., E836, E840 Moore, Dennis, Kans., E851 Visclosky, Peter J., Ind., E835 Filner, Bob, Calif., E849 Northup, Anne M., Ky., E839 Weiner, Anthony D., N.Y., E854 Forbes, Michael P., N.Y., E836, E840 Paul, Ron, Tex., E847 Wilson, Heather, N.M., E836, E840, E842

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