S4434 CONGRESSIONAL RECORD — SENATE June 25, 2012 we need a national solution that con- RESERVATION OF LEADER TIME you spend, the richer you get.’’ That tinues to secure the border, punishes The PRESIDING OFFICER. Under doesn’t meet the commonsense test in unscrupulous employers that exploit the previous order, the leadership time the Midwest of America. It was the ra- immigrants and undercut American is reserved. tionale behind President Obama’s mas- wages, improves our dysfunctional sive $800 billion stimulus bill. The bill legal immigration system, and requires f looked suspiciously like a grab bag of the 11 million people who are undocu- FLOOD INSURANCE REFORM AND pent-up Democratic spending prior- mented to register with the govern- MODERNIZATION ACT—MOTION ities, but we were told that all of this ment, pay fines and taxes, learn TO PROCEED spending was necessary to keep unem- ployment below 8 percent. Of course, as English, work, stay out of trouble, and The ACTING PRESIDENT pro tem- we all know, unemployment soon go to the end of the line to legalize pore. Under the previous order, the soared well above 8 percent and has their status. Senate will resume consideration of Democrats are ready for this chal- never dipped below 8 percent now more the motion to proceed to S. 1940, which lenge. We have been willing to craft a than 3 years later. commonsense legal solution for a long the clerk will report by title. I would say to all of those across the time, one that is fair, tough, and prac- The legislative clerk read as follows: Atlantic in Europe calling for new tical. As I have indicated, we have been Motion to proceed to Calendar No. 250, S. stimulus spending: We tried it, and it ready to do this for years. We have 1940, a bill to amend the National Flood In- didn’t work. Not only didn’t it work tried on a few occasions. The problem surance Act of 1968, to restore the financial solvency of the flood insurance fund, and for but it made things worse. All of that now and has been, Republicans will not other purposes. government spending crowded out pri- vote for immigration reform—simple vate sector activity that would have Mr. REID. Mr. President, I suggest as that. We have tried. helped the recovery and saddled our the absence of a quorum. The first step would be to pass the economy and our children with even The ACTING PRESIDENT pro tem- DREAM Act, which would create a more debt. Conversely, reining in gov- pore. The clerk will call the roll. pathway to citizenship for children ernment spending will unleash the The legislative clerk proceeded to brought to the country through no power of free enterprise to create call the roll. fault of their own. If upstanding young wealth and grow our economy in ways Mr. GRASSLEY. I ask unanimous people stay out of trouble, work hard no government central planner can consent that the order for the quorum in high school, they should have a ever accomplish. chance to serve their country in the call be rescinded. Despite the clear results of the most military, go to college, and work to- The ACTING PRESIDENT pro tem- recent American experience with stim- ward citizenship. pore. Without objection, it is so or- ulus spending, liberal pundits are now Unfortunately, Mitt Romney said he dered. blaming Europe’s current economic would veto that, the DREAM Act. THE ECONOMY troubles on efforts to reduce govern- President Obama, on the other hand, Mr. GRASSLEY. Mr. President, since ment spending. They say that savage took decisive action in halting depor- the victory of the Socialist candidate cuts by pro-austerity governments in tation of the DREAMers. His directive for the President of France, opponents countries such as Britain, France, and will protect 800,000 young people and of fiscal responsibility have found re- Spain have actually damaged their focus law enforcement resources where newed vigor for their pro-spending ide- economies. So just how deep did these they belong, on deporting criminals. ology—more stimulus, as we might call countries of Europe actually cut? As we all know, though, this is not a it here in this country. There is inter- permanent solution. But President Spain increased spending after the re- est in this country also in more fiscal cession started, then implemented Obama’s decision to defer these depor- stimulus. tations was necessary precisely be- some modest cuts but is still spending The new French President talked cause Republicans have so far refused more than it did before the recession. about choosing growth over austerity. to work with Democrats on a solution. Britain and France have continued to Many liberal pundits and politicians on Congress must consider a long-term increase spending. So much for savage this side of the Atlantic have now resolution to protect the DREAMers spending cuts. It defies common sense, begun to echo this call. When you put and tackle comprehensive immigration but, as you know, in this town smaller it that way, it barely sounds like a reform that addresses all 11 million un- increases in spending than previously choice at all. The term ‘‘austerity’’ documented people living in this coun- planned can qualify somehow as a cut sounds so severe, but almost everybody try. in spending. However, to most Ameri- But that will take cooperation from agrees that economic growth is good. cans, cutting spending actually means my Republican colleagues. That has Just what is this austerity all about? spending less than you were the year not been forthcoming. This week, we In Europe, ‘‘austerity’’ is often used to before. The fact that there have been have a lot to accomplish, and getting it describe an attempt to reduce budget no serious spending cuts in these sup- all done before the July 4 holiday will deficits by reining in unsustainable posedly pro-austerity countries is also take cooperation. By Friday, the spending. In this country, we more enough to dismiss the accusations that Senate must pass flood insurance that often talk about fiscal responsibility. spending cuts are the cause of Europe’s will allow millions of Americans to For Europeans who have grown accus- current troubles. close on new homes or new properties. tomed to generous social benefits, even But there is another part of the story We must send to the President a bill to modest reforms to government pro- that is too often ignored: Governments ease drug shortages. That is the FDA grams are apparently cause to take to that talk about the need to reduce defi- bill. We need to protect 3 millions jobs the streets and demonstrate. But for cits but are too timid to enact nec- with an agreement on transportation the millions of Americans who still be- essary spending cuts invariably turn to legislation, and the deadline to stop lieve in limited government and who tax increases. For instance, since the student loan rates from doubling for 7 do not feel entitled to programs or ben- recession started, Britain has raised million students looms at the end of efits paid for by the earnings of others, the top marginal income tax rate as this week as well. there is nothing austere about govern- well as increased the capital gains tax, I am putting my colleagues on notice ment spending within its means. the national insurance tax, and the that the Senate will stay as long as we So then what about the other aspect value-added tax. Spain has enacted have to, into the weekend if necessary, of it—growth? The implication of the hikes in personal income tax and prop- to complete this substantial workload. supposed choice between growth and erty taxes and seems to be planning We hope there will be cooperation not austerity is that we must accept irre- even more taxes. only in this body but also in the House sponsible levels of spending in order to This year the Spanish Government is of Representatives. I alert everyone, we have that economic growth. Obviously looking to address its deficit with a have a lot to do—extremely important this is absurd. The politically conven- $19.2 billion package of spending reduc- pieces of legislation. We have to com- ient economic theory was summed up tions paired with another $16 billion plete them before we leave this week. by Margaret Thatcher as, ‘‘The more worth of tax increases. Of course, to us

VerDate Mar 15 2010 01:54 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.012 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4435 here in the United States, that sounds problems. It is possible that the unique Unlike the ‘‘have your cake and eat a lot like what Democrats have been history of the Baltic countries makes it too’’ philosophy that says more gov- calling a balanced approach. And so it it easier for them to break the spend- ernment spending will somehow make is—just like giving a patient an equal ing addiction, but that doesn’t mean it us all richer, the real road to recovery dose of medicine and poison would be a can’t be done here. In fact, I will give requires real leadership and less spend- balanced approach. However, across you an example that is much closer to ing. Europe there has been a lot more em- home—Canada. Earlier in my comments I mentioned phasis on the poison of tax increases In the 1990s Canada was facing the a statement by Margaret Thatcher’s than on the medicine of spending cuts. same problem the United States is contempt for stimulus ideology. When In fact, while government spending now. It suffered a recession and had a she took office, Britain was in deep across the entire European Union fell looming debt crisis. The Canadian Gov- debt and known as ‘‘the sick man of by just 2.6 billion euros between 2010 ernment’s response was to dramati- Europe.’’ In fact, Britain had been and 2011, taxes rose by a staggering 235 cally cut spending. Again, I am not forced to go to the IMF for a bailout billion euros. talking about slowing the rate of and was regularly rocked by massive So while critics of austerity are growth but actual spending cuts. In strikes. In many ways it was the flatout wrong to blame the largely just 2 years, starting in 1995, total non- Greece of the 1970s. When Thatcher mythical spending cuts for Europe’s interest spending fell 10 percent. Cana- began making the difficult decisions economic troubles, they may have dian federal spending as a share of GDP necessary to rescue the British econ- stumbled onto something. To the ex- dropped from 22 percent in 1995 to 15 omy, many people, including some of tent that austerity really means big percent 11 years later. Canada’s federal her own party, pleaded for her to re- tax increases rather than serious debt was at 68 percent of GDP in 1995 turn to the big spending policies of pre- spending cuts, I think it identifies a and is down to just 34 percent today. vious British Governments. Her re- big part of Europe’s fiscal and eco- Now a lesson for America: Compare sponse is applicable to our country nomic problems. that to our national debt, which is today as it was to Britain back then. I These facts notwithstanding, if I more than 70 percent of GDP. Like Es- wish to quote Margaret Thatcher: couldn’t point to an example where tonia, the overwhelming emphasis in If spending money like water was the an- economic growth resulted from spend- Canada was on spending cuts rather swer to our country’s problems, we would ing restraint, my arguments would than tax increases. have no problems now. If ever a nation has ring hollow. I would sound like those Moreover, these cuts included struc- spent, spent, spent and spent again, ours has. radical intellectuals who still refuse to tural reforms. Canada’s Government Today that dream is over. All of that money has got us nowhere but it still has to come accept that Marxism has been totally fixed its version of Social Security, from somewhere. Those who urge us to relax discredited both morally and economi- which is the third rail of American pol- the squeeze, to spend yet more money indis- cally by claiming that it has never itics, as we say here. Unlike Social Se- criminately in the belief that it will help the truly been tried. However, what I am curity, the Canadian pension plan is unemployed and the small businessman, are talking about has been tried. There are solvent for the foreseeable future. not being kind or compassionate or caring. plenty of examples of where bold lead- What is really interesting is that these They are not the friends of the unemployed ership to dramatically rein in govern- reforms were not implemented by some or the small business. They are asking us to ment spending has resulted in eco- rightwing ideologues; these reforms do again the very thing that caused the prob- lem in the first place. nomic growth. There is actually a were all implemented by the Canadian prime example right in Europe and in Liberal Party, which is a center-left I leave with this proposition. Can the euro area—Estonia. party like America’s Democrats. Congress learn from the experiences of In response to the 2008 economic cri- However, when President Bush sug- Estonia, Canada, and Britain’s Thatch- sis, Estonia’s free enterprise-oriented gested fixing Social Security upon his er? If we can, we can turn this U.S. government focused on real spending reelection, the issue was relentlessly economy around—and the economy and cuts, including major structural re- demagogued by Democrats in Congress. jobs are the issue of this Presidential forms. Estonia cut private sector More recently, when PAUL RYAN un- campaign season. wages, raised the pension age, and re- veiled a plan to save Medicare, rather I suggest the absence of a quorum. The ACTING PRESIDENT pro tem- formed health benefits. When it comes than present alternative ideas, liberal pore. The clerk will call the roll. to taxes, Estonia already had a low flat groups depicted him in political adver- The assistant legislative clerk pro- tax and didn’t raise rates. While there tisements pushing grandmother off a ceeded to call the roll. was an increase in the value-added tax, cliff. Ms. MIKULSKI. Mr. President, I ask the overwhelming emphasis was on If our Democrats had shown the same unanimous consent that the order for spending cuts. As a result, the Esto- leadership the Canadian Liberals did, the quorum call be rescinded. nian economy grew at 7.6 percent last we would be in a lot better economic The PRESIDING OFFICER. Without year. And it happens that Estonia is shape right now. Instead, what we get objection, it is so ordered. the only country in the eurozone with from the other side of the aisle are de- Ms. MIKULSKI. What is the pending an actual budget surplus, and the coun- mands for more stimulus spending and business? try has a national debt that is only 6 head-in-the-sand denial about the im- The ACTING PRESIDENT pro tem- percent of GDP. Can you imagine that, pending bankruptcy of Medicare and pore. The motion to proceed to S. 1940. a debt of only 6 percent of GDP? Social Security. Ms. MIKULSKI. Mr. President, I rise Moreover, Estonia had an especially There are a lot of other examples in support of voting for cloture on the deep hole to climb out of. The Estonian where low taxes and spending restraint bill and wish to speak for as much time economy was devastated by the global have led an economic recovery after a as I may consume. financial crisis. It contracted by 18 per- downturn. In fact, a 2009 paper by two The ACTING PRESIDENT pro tem- cent, which is more than Greece. Nev- Harvard economists, Alberto Alesina pore. Without objection, it is so or- ertheless, Estonia’s economy is well on and Silvia Ardagna, reviewed 107 exam- dered. The Senator is recognized. its way back to prerecession levels. ples of fiscal adjustments in industri- FOOD AND DRUG ADMINISTRATION SAFETY AND I should add that in response to the alized countries between 1970 and the INNOVATION ACT spending cuts, Estonians didn’t riot in year 2007. They found that, statis- Ms. MIKULSKI. Mr. President, we the streets. Instead, they reelected tically, tax cuts are more likely to in- have just exchanged some parliamen- their government. crease growth than spending. They also tary lingo to essentially say we are Also, while Estonia is the most im- found that spending cuts without tax going to vote shortly to see if we can pressive example, a similar story also increases are more likely to reduce pass the Food and Drug Administration holds true for the other Baltic coun- deficits and debt than increased taxes. Safety and Innovation Act, and do it tries of Latvia and Lithuania. Perhaps The historical record is clear. We know without a filibuster. I hope we can vote their unhappy experience of Soviet what path leads to economic growth for cloture—not to muzzle, not to have domination has made them extra skep- and prosperity. However, that is not an a gag rule, but so we can move expedi- tical of big government solutions to easy path to follow. tiously on this bill.

VerDate Mar 15 2010 01:54 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.013 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4436 CONGRESSIONAL RECORD — SENATE June 25, 2012 Every single Member here should be In order to make sure we had the vide health care in a way that is safe proud of what we have accomplished in right perspective, we not only held ex- and efficacious. this FDA Safety and Innovation Act. cellent hearings in the Senate, but I Again, as I said, if we don’t act, thou- We have accomplished three major ob- went out around my own State. I am so sands of FDA people will be laid off. It jectives: No. 1, if the legislation is proud of my State. We are the home of is not about government. If those peo- passed—and it is a conference agree- life sciences. We have NIH there, which ple are laid off, it means the review ment between the House and the Sen- does incredible basic research. We ac- process for every single drug that is ate—we will be able to move pharma- tually have FDA, which reviews food now in the pipeline will come to a halt. ceuticals, biotech products, and med- safety and drug safety. At the same So we are hurting patients, thousands ical devices into clinical practice faster time, we are the home to a robust of people who need new drugs; new while maintaining our ethical stand- group of biotech companies. I wanted ways of helping them, whether it is for ards around public safety. to listen to those biotech companies. that dread C word—cancer—or diabe- No. 2, we can demonstrate we can When I went out, I said to them: Tell tes, which takes so much of our na- work together and we can govern. This me how your government is helping tional budget to manage chronic ill- is the result of the Senate working on you and tell me how your government ness. both sides of the aisle. Now, with the is impeding you. Tell me where you What about the breakthroughs on House, through the conference report, want your government to get out of the this epidemic of Alzheimer’s we have we show we can work between the Sen- way and where do you need a more or autism? We need all the help we can ate and the House. muscular government. Well, we heard develop. If America is going to con- In this time of prickly politics and quite a bit from them. The first thing tinue to be America the exceptional, political posturing when more gets said they told me is they need a Food and we have to do an exceptionally good than done, we can show we cannot only Drug Administration because when job of making sure we produce some of pass legislation but legislation that they are approved for public safety and the newest and most reliable drugs, makes a difference in people’s lives. We efficacy in the United States of Amer- biotech, and medical devices. will also show we can do it in a way ica, they can sell their products any- This is why I think we have good leg- that we will not only have a regulatory where in the world. It often means islation. Is it perfect? No. But is it framework but something in which the countries—small countries, countries pretty close to it for what business and businesses cooperated so we will have of modest means with limited GDP government and providers—the doctors regulation without strangulation. We that could never afford an FDA—know themselves—say we need? Absolutely. will have regulation that acts in the that if the United States of America I urge my colleagues today, when we interest of public safety but does not says it is OK for their citizens, any vote on this motion to proceed on clo- stifle, shackle, or impede good business other country in the world knows it is ture to have in mind—whether a col- practices. Wow. Isn’t this what we have OK for theirs. So it is very good to be league is a Democrat or a Republican— been talking about? able to export these products with con- that we don’t make the perfect the I am very proud of having been a fidence and reliability. This is fan- enemy of the good; rather, we think of member of the Health, Education, tastic, in their minds. all those people to whom we talk every Labor, and Pensions Committee that Second, they said they needed more day. We talk to them at townhall worked on this bill. I am also very help from FDA not only to expedite but meetings and out there with diners, proud of the fact that FDA is in my they wanted better communication. and they say: You know, my little boy State. In a nutshell, we are passing They also needed to be able to has leukemia; my mother has breast something called PDUFA and other incentivize development for those rare cancer; my dear father who stood up UFAs. PDUFA stands for the Prescrip- diseases we often hear about, where for me is facing the ravages of Alz- tion Drug User Fee Act. There will be there are small markets but big invest- heimer’s. We need breakthroughs. We others that we will talk about which ments to achieve in it. They outlined need help, then, for our private sector, relate to bio user fees and medical de- the fact that they needed to be viewed so it can go global and create jobs in vice user fees and generics. not in an adversarial way but a col- this country and well-being in other This bill was originally enacted in laborative way. Well, thanks to busi- 1992, and the reason for that was at countries around the world. We have to ness sitting down with FDA, and busi- be able to do it. that time there was an unduly long ness sitting down with Members of I am also pleased this bill combats wait for patients to have access to new Congress, we have been able to do ex- drug shortages, improves the safety of medicines and new medical devices. It actly that. We have improved effi- the drug supply chain, and makes per- often took close to 3 years to even re- ciency, predictability, the regulatory manent those special considerations view a drug application. So Congress environment, and, at the same time, that require that children’s needs are went to work with then-President Bill insisting on safety and efficacy. being met with both medical devices Clinton to say where the pharmacy This is going to be great for patients. and prescriptions, either in terms of could agree that, first of all, they Millions of Americans rely on drugs dosage or that a device actually fits would pay user fees to support FDA’s and biologics and on medical devices. If them. drug review program. It is a true pub- we are going to improve health care lic-private partnership. When we look and rein in the cost of health care, we I wanted to come to the floor to lay at the funding for FDA, the people who have to use drugs, biotech products, this out. I am very proud of FDA, and make pharmaceuticals, biotech, and and medical devices that improve lives I am very proud of the Congress, in- medical devices pay 60 percent of the and extend lives. cluding Senator HARKIN and Senator FDA budget. That is $712 million. The If we fail to authorize this legisla- ENZI, who pulled us together. We have remainder comes from Federal appro- tion, we are going to be in big trouble. the right legislative framework. Now priations—40 percent, which is $473 mil- How are we going to be in big trouble? let’s act and do it in a way we can all lion. So there is a partnership between Well, first of all, we will have to give be proud of. those businesses that profit—and we notice to FDA that there are going to Mr. President, I yield the floor, and I want them to do so, without profit- be layoffs. That means we would have note the absence of a quorum. eering—and, at the same time, govern- to send out notices in July telling 4,000 The ACTING PRESIDENT pro tem- ment pays its share. people: Look, we know you are the best pore. The clerk will call the roll. Since 1992, this legislation has been and the brightest and we want you to The assistant legislative clerk pro- an enormous success. More than 1,500 have integrity as well as regulatory ceeded to call the roll. new medicines have been approved, in- sensibility and a great deal of sci- Mr. HARKIN. Mr. President, I ask cluding treatments for cancer, infec- entific competence, but we couldn’t get unanimous consent that the order for tious disease, and cardiovascular dis- our act together so you are going to be the quorum call be rescinded. ease. It has decreased review times laid off. The PRESIDING OFFICER (Mr. from more than 3 years to 1 year and a Hello. We want these people out TESTER.) Without objection, it is so or- few months now. there, helping America be able to pro- dered.

VerDate Mar 15 2010 01:54 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.019 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4437 FOOD AND DRUG ADMINISTRATION SAFETY AND decade alone, from 2001 to 2010, the use But we have had great cooperation INNOVATION ACT of generic drugs saved the U.S. health from all members of our committee on Mr. HARKIN. Mr. President, after care system more than $931 billion. both sides of the aisle. many months of bipartisan negotia- This agreement will ensure that we This legislation has benefited greatly tion, I have high hopes that the Senate continue to see those savings and that from all of the diverse input: from Sen- will vote very shortly to invoke cloture patients have access to cheaper drugs ators, as I said, on both sides of the on the House message to accompany when they need them. aisle, industry stakeholders, consumer the Food and Drug Administration This bill also authorizes a new groups, patient groups, and more re- Safety and Innovation Act of 2012. biosimilars user fee agreement which cently from our colleagues in the I am pleased to report it is the prod- will further spur innovation by the ge- House. The FDA Safety and Innovation uct of excellent bipartisan collabora- neric biologic industry. This chart Act is the result of concerted efforts to tion on the Health, Education, Labor, shows again some of the savings we define our common interests, and these and Pensions Committee, which I will get. The use of generic drugs has interests will directly benefit patients chair, and productive conversations saved over $931 billion over the last and the U.S. biomedical industry. with our colleagues in the House. The decade, $158 billion just in 2010 alone. As you can see from this chart, the House passed the FDA Safety and Inno- So we can see the better we are able to bill modernizes FDA’s authority in sev- vation Act unanimously last week. get generic drugs approved and in the eral critical ways: It authorizes key Now it is our turn to do our part. The pipeline—again, safely—the better off user fee agreements to ensure timely backbone of this legislation is the user we are all going to be and more money approval of medical products. It fee agreement that FDA has negotiated that not only will we save as individ- streamlines the device approval proc- with industry. uals but our entire health care system ess. It modernizes FDA’s global drug I might just add this bill passed this will save. That is almost $1 trillion supply chain authority, which is so im- Chamber about 3 weeks ago on a vote over the last 10 years. portant. It spurs innovation and of 96 to 1. So it has strong bipartisan These agreements again, as I said, incentivizes drug development for life- support. A sizeable part of FDA’s budg- are vital to FDA’s ability to do its job, threatening conditions. It reauthorizes et comes from user fees that industry vital to the stability of the medical and improves incentives for pediatric agrees to pay to allow FDA to more products industry, and most impor- trials. It helps prevent and mitigate quickly weekly review product applica- tantly to the patients who are the pri- drug shortages, and it increases FDA’s tions. We need to authorize FDA to im- mary beneficiaries of this longstanding accountability and transparency. So it plement those agreements if we want and valuable collaboration between addresses the broad array of critical to keep FDA running at full steam, FDA and the industry. issues that we face in today’s global which is critical to preserving jobs at After months of negotiation, FDA economy. both the agency and in the industry and the industry have crafted win-win It is imperative that our regulatory and to ensuring that FDA has the re- agreements they stand behind. They system keep pace with and adapt to sources to get safe medical products to are doing their job. Now it is time for technological and scientific advances patients quickly. us to do ours. and that patient protection remains I want to be clear. These agreements It is absolutely imperative that we strong in this era of dynamic change. affect all of us by helping to maintain authorize these user fee agreements be- Keeping pace with the ever-changing and create jobs in our home States. For fore they expire. If we do not, FDA will biomedical landscape is precisely the example, in my State of Iowa, these lose 60 percent of its drug center budg- aim of the FDA Safety and Innovation agreements will support our bur- et and 20 percent of its device center Act. This bill injects greater trans- geoning bioscience sector which saw budget. They will have to lay off nearly parency into the device approval proc- employment grow by 4.5 percent be- 2,000 employees. That is why it is so ess. It bolsters FDA’s ability to help tween 2007 and 2008. The implementa- critical for us to do this at this time. U.S. manufacturers create innovative tion of these agreements will continue To be sure, the expiration does not and safe devices, while also enhancing to foster biomedical innovation and job happen until late this summer. But the FDA’s ability to determine how the de- growth in all of our States. FDA has told us if they do not get this vices perform in the real world and The bill before us reauthorizes the reauthorization done, they will have to takes appropriate measures to protect prescription drug user fee agreement start sending out pink slips at the be- patients. and the medical device user fee agree- ginning of July. That is why it is so The bill also reauthorizes and im- ment, both commonly known as imperative for us to pass this legisla- proves incentives for pediatric trials. It PDUFA and MDUFA, which will con- tion this week and send it to the Presi- creates incentives for the development tinue and improve the agency’s ability dent for his signature, so they will not of new antibiotics and authorizes new to speed market access to prescription have to go through that process of drug and device provisions to help ex- drugs and medical devices while ensur- sending out pink slips. pedite the approval of important life- ing patient safety. But we can see how important this is. saving drugs and devices without sacri- I just might add that, again, upper- If this were to happen, it would have ficing safety. most, foremost, first is patient safety. devastating consequences for patients In addition, the bill also helps ad- That does not mean we cannot do whose health and lives depend on new dress the national crisis prescription things in a better manner, get products medical treatments. We cannot let that drug shortages. For the past several more readily available, speed up the happen. That is why for more than a years, hospitals across the country and process if we have the personnel and year I worked closely with my col- in my State of Iowa have experienced the equipment to do so. That is why league, the ranking member of the an increasing number of shortages of this bill is so important. It provides HELP Committee, Senator ENZI, and life-sustaining prescription drugs. that type of support so we can hire other members of the HELP Com- These shortages directly threaten the more people to make sure we get these mittee. Our aim has been to ensure public health by denying patients ac- products to patients quickly, but to that in addition to the user fee agree- cess to medications that are indispen- make sure they are safe. ments, the other provisions in this leg- sable to their care. This bill requires The bill also authorizes a new generic islation are also the product of con- all manufacturers of certain drugs to drug user fee agreement which is ex- sensus bipartisan policymaking. notify FDA if they expect a manufac- pected to slash review time to one- We have used bipartisan working turing disruption that could lead to a third of current levels, from 30 months groups and an open, transparent proc- shortage because if FDA is aware of a to 10 months, drastically improving the ess to ensure that we had input from potential shortage early, then the speed with which generic products are our members and the stakeholder com- agency can work with manufacturers made available to patients. The new munity at large throughout negotia- and providers to find other ways to get generic user fee agreement will gen- tions on the other titles of this bill. patients the drugs they need. This bill erate significant savings for patients This is quite remarkable. We do not see also addresses drug shortages by ex- and our health care system. In the last much of it in this Congress these days. plicitly allowing FDA to expedite drug

VerDate Mar 15 2010 01:54 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.021 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4438 CONGRESSIONAL RECORD — SENATE June 25, 2012 establishment inspections and applica- new therapies for pediatric rare dis- With that, I yield the floor. tion reviews when needed to help pre- eases. The PRESIDING OFFICER. The Sen- vent or mitigate a shortage. It estab- Next, it helps make devices for rare ator from Utah. lishes an FDA drug shortage task force diseases more available by modernizing INVOKING THE LEAHY-THURMOND RULE to develop a strategic plan to address provisions relating to custom devices Mr. LEE. Mr. President, I rise today drug shortages and to improve commu- and making it easier for companies to to express my support for the minority nication and outreach to stakeholders make profits on devices for rare dis- leader’s decision to invoke the long- preparing for drug shortages. ease. standing Senate tradition, known as Another significant advance in the Lastly, it reforms the conflict of in- the Leahy-Thurmond rule. Pursuant to bill is the much needed modernization terest rules for advisory committees to this tradition and precedent, the Sen- of the FDA’s authority to ensure the make it easier for the FDA to fill pan- ate will cease confirming nominees to safety of drug products coming into the els, which will have particular impact the Federal courts of appeals until United States from abroad. This bill, regarding rare diseases because those after the Presidential election in No- No. 1, allows FDA to prioritize inspec- panels are sometimes very hard to fill. vember. Many of my colleagues from tions of both domestic and foreign I am very proud of the advances this the other side of the aisle have pre- firms based on the risk they present to legislation represents for patients with viously affirmed the propriety of this patient safety. It requires importers to orphan and rare diseases. rule and enforced its standard. For ex- demonstrate that certain high-risk Not only does the bill support the ample, in the last year of the Bush ad- drugs are safe and compliant before biomedical industry and help patients ministration, the majority leader they can be imported into the United get the medical products they need, it noted that ‘‘in a Presidential election States. It requires manufacturer ac- also reduces the deficit. According to year, it is always very tough for countability and oversight of the qual- the nonpartisan Congressional Budget judges. That is the way it has been for ity and compliance of their drug pro- Office, this legislation will reduce the a long time, and that is why we have ducers and suppliers. It enhances pen- budget deficit by more than $311 mil- the Thurmond rule.’’ The chairman of the Judiciary Com- alties for adulterating and counter- lion in the next decade. So what we mittee, who has cited the Thurmond feiting drugs. It allows FDA to detain have is not only good policy, but it is fiscally responsible by contributing to rule more frequently than any other noncompliant drugs in U.S. commerce Senator, has likewise stated that ‘‘in a to prevent them from reaching pa- deficit reduction. As I have said, well over a year of Presidential election year, after tients. It permits FDA to destroy cer- Spring, no judges go through except by tain illegal drugs at the border instead diligent, bipartisan work has gone into the legislation before us today. Neither the consent of the Republican and of releasing them back into commerce. Democratic leaders.’’ It clarifies FDA’s authority to address Democrats nor Republicans got every- thing they wanted in this bill. We Statements from several of my criminal conduct that occurs abroad Democratic colleagues likewise con- sought out consensus measures. Where and threatens the safety of U.S. con- firm that it is proper to invoke the we could not achieve consensus, we did sumers. Leahy-Thurmond rule at this point in a not allow our differences to distract us An important point to remember Presidential election year. In 2008, for from the critically important goal of about the importance of these safety example, one of my colleagues on the producing a bill everyone could sup- provisions is that weaknesses in our Judiciary Committee argued that for port. As a result, this is a true bipar- pharmaceutical supply chain not only Federal appeals court nominees, once tisan bill, and it is broadly supported affect the health of American patients, ‘‘it comes to June . . . generally every- by the patient groups and industry. In they also affect the health of American thing stops in an election year.’’ In- fact, it has wide support from medical businesses. U.S. companies that source deed, on June 12 of that same year, an- and manufacture drugs in this country associations and also from consumer other Judiciary Committee colleague should not be placed at a competitive groups and manufacturers throughout stated that the Senate was already disadvantage by foreign firms that op- the entire country—a broad base of ‘‘way past the time of the Thurmond erate with less oversight and sell sub- support. In fact, it is unique because it rule.’’ standard ingredients into this country has the full support of manufacturers, History further confirms the pro- at reduced prices. This bill will help the pharmaceutical industry, the de- priety of invoking the Leahy-Thur- ensure that businesses operate on a vice manufacturers, the FDA itself, mond rule at this time. It is extremely level playing field by holding foreign and patients groups—people concerned rare for the Senate to confirm an ap- actors to the same high standards as about patient safety, cost, and avail- peals court nominee after June of a those in the United States. ability of drugs and devices. So it has Presidential election year. In fact, it The last policy provision I will high- a broad base of support. has happened only once in almost two light is a mix of device and drug au- The FDA Safety and Innovation Act decades, when in 2000 the Republican- thorities that together can fairly be de- before us, which we will be voting on in controlled Senate confirmed one of scribed as the most significant advance a little while, authorizes the important President Clinton’s nominees. It is sim- for patients of orphan and rare diseases FDA user fee agreements, and it mod- ply not true, as comments from some since the Orphan Drug Act was passed ernizes our regulatory system to en- of my colleagues have implied, that in nearly 30 years ago. sure safety and to foster innovation in recent Presidential election years we In addition to the significant re- the medical product industry. Our bi- have confirmed appellate court nomi- sources that will be devoted to rare dis- partisan work has produced an excel- nees in July, August, or September. eases under the prescription drug user lent bill. We cannot allow unrelated Moreover, this year we have already fee agreement itself, this bill, No. 1, ex- partisan disagreements or Presi- confirmed five of President Obama’s pands the accelerated approval path- dential-election-year politics to inter- Federal appeals court nominees. This, way to therapies for rare and very rare fere or keep us from completing our incidentally, is the same number of ap- diseases, and it instructs FDA to weigh job. peals court nominees the Senate con- the rarity of a disease as a factor in its I will say it again. We must pass this firmed in 2008, the most recent Presi- approval process. vital legislation now. It is critically dential election year on record. In 2004 Next, it directs resources to prom- important to the agency, to the indus- the Senate confirmed only four such ising therapies for unmet medical try and, most importantly, to patients nominees. Indeed, dating back over 100 needs, which will receive the new that we get this done. Let’s come to- years, from President William Howard ‘‘breakthrough’’ designation. gether, Democrats and Republicans, to Taft to President Obama, the Senate Next, it requires FDA to consult with pass this legislation. Let’s have a re- has confirmed an average of just four outside experts on rare diseases. sounding vote on cloture. Hopefully we appeals court nominees during Presi- Next, it focuses on pediatric rare dis- won’t have to use the 30 hours and we dential election years. This year we eases by requiring a strategic plan re- can get to passage of the bill very rap- have already exceeded the historical garding pediatric rare diseases and cre- idly so that we can get it down to the average and confirmed five of Presi- ating a pilot program to incentivize President for his signature. dent Obama’s appeals court nominees.

VerDate Mar 15 2010 01:54 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.022 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4439 There is no reason to depart further happen when the President violates the including conservative Justices An- from the historical norm and confirm Constitution’s separation of powers thony Kennedy and John Roberts— additional nominees. and tramples on the Senate’s rightful agreed with the Obama administration The suggestion by some that applica- prerogatives in the advise and consent that a State cannot set up its own im- tion of the Leahy-Thurmond rule some- process. On January 4, 2012, at a time migration enforcement system. how affects court vacancies deemed when the Senate was conducting brief As a result, the Supreme Court ‘‘judicial emergencies’’ is false, and sessions approximately every 72 hours, struck down several parts of the Ari- recklessly so. Of the four judicial emer- President Obama nonetheless bypassed zona law, including the provision that gencies on the Federal court of appeals, the Senate and unilaterally appointed would have made it a crime in Arizona President Obama has nominated only four significant executive branch nomi- to be an undocumented immigrant and one individual, and because that nomi- nees. By asserting the power to make the provision that would have required nation was so recent, even absent the recess appointments, even when the legal immigrants to carry documents Leahy-Thurmond rule, that nominee Senate—according to its own rules— proving their legal status at all times. would not be scheduled for a vote any- was not in recess, the President simply The Supreme Court is right. States time soon. ignored the Senate’s legitimate con- do not have the right, under the Con- I also remind my colleagues that stitutional right to advise and consent stitution, to enact immigration laws Democrats enforced the Leahy-Thur- to nominees made by the President. that contradict Federal law. Many of mond rule in June 2008, during a time President Obama’s unconstitutional my colleagues on the other side of the when there were twice as many judicial appointments cut to the very heart of aisle strongly criticized the Obama ad- emergencies in the circuit courts as our Constitution’s separation of powers ministration for even challenging the there are right now. Likewise, the and the institutional prerogatives that Arizona immigration law. There was overall vacancy rate on our circuit rightfully belong right here, in this even an amendment offered to try to courts was much higher in June 2004 body. Accordingly, since the time of block the Justice Department from when President Bush was in the final those appointments, I have sought to pursuing the litigation brought to the year of his term. Yet Democrats did protect the Senate’s interests by op- Supreme Court. Fortunately, the vast not hesitate to block several qualified posing President Obama’s judicial majority of Democrats, joined by two appellate court nominees in the nominees. I have made clear I would do Republicans—Senators Johanns and months leading up to the 2004 Presi- the same were a Republican President Voinovich—blocked that amendment. dential election. to make similarly unconstitutional ap- Now the Supreme Court—including Enforcement of the Leahy-Thurmond pointments under the recess appoint- Chief Justice Roberts and Justice Ken- rule does not currently apply to dis- ments clause. nedy—has sided with the Obama ad- trict court nominees. This year the As the chairman of the Senate Judi- ministration in holding the vast major- Senate has already confirmed 23 of ciary Committee noted at a recent Ju- ity of the Arizona law unconstitu- President Obama’s district court nomi- diciary Committee hearing, I have tional. nees—many more than were confirmed stated my concern with President I am troubled the Supreme Court during comparable years during the Obama’s unconstitutional recess ap- upheld one of the provisions in that President Bush and Clinton Presi- pointments very clearly, but I have law in Arizona—section 2(B)—which re- dencies. And we will continue to con- also been, in his words, extremely re- quires Arizona police officers to check firm more qualified nominees. Applica- sponsible in my opposition and have the immigration status of suspected tion of the Leahy-Thurmond rule, be- not hindered the work of the Senate. In undocumented immigrants. But it is ginning now, will thus not implicate light of President Obama’s unconstitu- important to understand the Court’s any district court judicial emergencies. tional appointments, it is all the more decision on that section is a narrow The urgency for such vacancies lies proper we invoke the Leahy-Thurmond one. The only question for the Court not in the Senate, which to this day rule now. was whether that section—2(B)—was has acted responsibly on nominees, but I agree with the ranking member of preempted by Federal immigration with President Obama, who to this day the Senate Judiciary Committee that law. The Court said it is open to future has failed to nominate individuals for we should have invoked that rule back challenges once the law goes into ef- many of these seats. in January, at the time of the uncon- There are, I add, other good reasons stitutional appointments. By enforcing fect, and this provision may still be in addition to tradition and historical the Leahy-Thurmond rule now, we will held unconstitutional, as the other pro- precedent to enforce the Leahy-Thur- demonstrate for the historical record visions in the Arizona law. mond rule now rather than waiting the Senate did not acquiesce in Presi- According to law enforcement ex- longer to do so. Doing so now prevents dent Obama’s unconstitutional recess perts, section 2(B) is likely to encour- a particular President from packing appointments and, instead, took action age profiling, which would violate the the courts at the end of his term by ap- to protect the Senate’s institutional Equal Protection Clause of the 14th pointing influential, life-tenured appel- prerogatives. When we have done so, I amendment to the Constitution. Spe- late court judges whose service will will again be in a position to vote in cifically, section 2(B) requires police span numerous other Presidential ad- favor of qualified consensus District officers to check the immigration sta- ministrations. Court nominees. tus of any individual with whom they The Leahy-Thurmond rule also en- But I will always remain vigilant in have lawful contact if they have ‘‘rea- sures that Presidential politics during seeking to protect the Senate against sonable suspicion’’ the person is an un- an election season will not overshadow unconstitutional encroachment by the documented immigrant. or interfere with the Senate’s advice executive branch. As Members of this What is the basis for a reasonable and consent role on such judicial nomi- body, we have an institutional respon- suspicion the person they pull over is, nees. sibility to safeguard the Senate’s es- in fact, an undocumented immigrant? The last point bears special empha- sential advise and consent role and to The guidance on the law issued in the sis. The Constitution assigns to the confirm only those nominees who are State of Arizona says police officers Senate the right and the duty to advise properly qualified to serve in the posi- should consider things such as how a and consent to the President’s judicial tions for which they have been right- person is dressed or their ability to and executive branch nominees. It is fully nominated. communicate in English. essential for the Constitution’s separa- I yield the floor. Earlier this year, I held a hearing on tion of powers that the Senate protect The PRESIDING OFFICER. The Sen- racial profiling in the Judiciary’s Sub- its necessary and legitimate role in the ator from Illinois. committee on the Constitution, Civil nominations process against encroach- ARIZONA IMMIGRATION DECISION Rights and Human Rights. It was the ment by the executive branch of gov- Mr. DURBIN. Mr. President, today, first hearing on racial profiling since ernment. the U.S. Supreme Court announced its before 9/11. One of the witnesses at my Earlier this year, we witnessed a decision on S.B. 1070—the controversial hearing was Ron Davis. He is the chief troubling demonstration of what can Arizona immigration law. The Court— of police in East Palo Alto, CA, and

VerDate Mar 15 2010 01:54 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.023 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4440 CONGRESSIONAL RECORD — SENATE June 25, 2012 Chief Davis, along with 16 other law en- I see it differently and so do many President Obama understands this. forcement officials and the Major Cit- others, including GEN Colin Powell That is why he challenged the Arizona ies Chiefs of Police Association, filed a and former Defense Secretary Robert law, taking the case to the Supreme brief in the Arizona case. In their brief, Gates. They support the DREAM Act Court. That is why earlier this month I the police chiefs say: because it would make America a saluted the President for announcing The statutory standard of ‘‘reasonable sus- stronger country by giving these tal- his administration will no longer de- picion’’ of unlawful presence in the United ented immigrants the chance to serve port people, such as Angelica Her- States will as a practical matter produce a in the military and contribute to the nandez, who would be eligible for the focus on minorities, and specifically Latinos. future of America. DREAM Act. I strongly support Presi- The best way to understand the prob- Two former Arizona attorneys gen- dent Obama’s courage and his decision. eral, joined by 42 other former State lems with the Arizona immigration law It is one of the most historic, humani- attorneys general, filed an amicus brief and the need for the DREAM Act and tarian moments of our time. His deci- in the Arizona case, and they said ‘‘ap- comprehensive immigration law is to sion will give these young immigrants plication of the law requires racial hear the stories of some of the immi- profiling.’’ I agree with these law en- grant students who would be eligible the chance to finally come out of the forcement experts. I am confident sec- for the DREAM Act. They call them- shadows and be part of the only coun- tion 2(B) will eventually be struck selves DREAMers. Almost every week try they have ever called home. It was down as the other provisions of the Ar- in the session I come to the floor of the the right thing to do. izona law were. Senate to tell the story of one of these These students didn’t make the deci- The Arizona law is the wrong ap- young people. Over the years I have sion to come to this country. Angelica proach for America. It is amazing to told stories of several DREAMers from was brought here at the age of 9, and it me how this Nation of immigrants, in the State of Arizona. Under the Ari- is not the American way to punish which we are all part of the family, has zona law, these young people would be children for the wrongdoing of their struggled for so long to deal with the targets for prosecution and incarcer- parents. President Obama’s new depor- whole issue of immigration. I think it ation. Under the DREAM Act, they tation policy will make America better is wrong to treat people as criminals would be future citizens who could by giving these talented immigrants make America and Arizona stronger. simply because of their immigration the chance to contribute. status, and it is not right to make Today, I wish to introduce one of criminals of people who literally go to them from Arizona. Her name is Angel- Studies have found DREAM Act stu- work every day, cooking our food, ica Hernandez. She was brought to dents will literally boost the American cleaning our rooms, and caring for our Phoenix, AZ, when she was 9 years old. economy during their working lives. children in day care centers or caring She started school in the fourth grade, This policy is also clearly legal. for our parents and grandparents in and by the time she reached the sixth Throughout our history, the govern- nursing homes. grade, Angelica no longer took English ment has decided who to prosecute and Here is the reality: Treating immi- as a second language. She was pro- who not to prosecute based on law en- grants as criminals will not help com- ficient in the language of English. forcement priorities and availability bat illegal immigration. Law enforce- At Carl Hayden High School in Phoe- resources. Past administrations of both ment doesn’t have the time or the re- nix, AZ, Angelica served in Junior political parties have used their au- sources to prosecute and incarcerate ROTC and was president of the Na- thority to stop deportation of low-pri- every undocumented immigrant among tional Honor Society. She became a ority cases. The courts have recognized the 10 million or 11 million in this dedicated member of the school’s ro- that. country. Making undocumented immi- botics club, where she found her true grants into criminals simply drives love, engineering. Listen to what the Supreme Court them into the shadows. That is why the Angelica graduated from high school said today in the Arizona immigration Arizona Association of Chiefs of Police with a 4.5 GPA and in 2007 was named law case: opposes the Arizona law considered by Outstanding Young Woman of the Year A principal feature of the removal system the Court today. They say it will make for district 7 in Phoenix. Last year, An- is the broad discretion exercised by immigra- it more difficult for them to make Ari- gelica Hernandez graduated from Ari- tion officials. . . . Discretion in the enforce- zona a safe place. Immigrants are less zona State University—we can see her ment of immigration law embraces imme- likely to cooperate with the police if holding her graduation certificate—as diate human concerns. they fear they are going to get arrested the outstanding senior in the Mechan- The President’s plan is smart and re- ical Engineering Department, with a for even trying to help. alistic. The Department of Homeland 4.1 GPA. Instead of measures that harm law Security has to set priorities. It is not enforcement and promote racial Under the Arizona immigration law, Angelica Hernandez would be a target amnesty; it is simply a decision to profiling, such as the Arizona immigra- focus limited government resources on tion law, we need practical solutions to for prosecution and incarceration. those who have committed serious fix a broken immigration system. That Under the DREAM Act, she would be a crimes and are a threat to public safe- case was before the Supreme Court. future citizen and engineer who could ty, not the DREAM Act students. The Court made its decision today be- contribute her talents to making this a cause this body—the Senate and the better country. What a choice: to take Compare President Obama’s approach House—have failed to accept their re- this woman, who has spent virtually with the Presidential candidate from sponsibility. We have a responsibility, her entire life, as she remembers it, in another party who said the Arizona law if, in fact, immigration is a Federal America, attending our schools, excel- was a ‘‘model’’ for the rest of America. issue, for a Federal response, and we ling in those schools, being acknowl- That other Presidential party can- failed. edged as one of the better students so didate has promised that if he is elect- The first step we should take in pass- her ambition takes her to a great uni- ed President he will veto the DREAM ing comprehensive immigration reform versity, Arizona State University, Act. He has refused to say whether he is to pass the DREAM Act—legislation where she graduated at the top of her would even maintain or rescind Presi- that would allow a select group of im- class in mechanical engineering and, dent Obama’s order banning the depor- some would say, tell her now she must migrant students who grew up in this tation of DREAM Act students. That is leave America, I think is wrong. Angel- country to earn citizenship either by the wrong approach for America. attending college or serving in the ica Hernandez, and people like her, will military. make this a better country. Unlike the The administration’s new policy on Russell Pearce is the author of the Arizona immigration law, the DREAM the DREAM Act is only temporary. I Arizona immigration law. He had this Act is a practical solution to a broken understand that. The burden is still on to say about the DREAM Act: immigration system. The Arizona law us in the Senate and the House to do The DREAM Act is one of the greatest leg- would harm law enforcement and en- something about the many thousands islative threats to America’s sovereignty, courage profiling. The DREAM Act of students across America, just like national security and economic future. would make America stronger. this dynamic young lady in Arizona,

VerDate Mar 15 2010 01:54 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.024 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4441 who simply want a chance to be a part Have there been improvements? Of Mr. President, I ask unanimous con- of America and its future. Our first course there have been improvements. sent for a colloquy between myself and step: Pass the DREAM Act. Do it and Is it still going on? As long as we have the Senator from Illinois. do it now. guides sitting on mountaintops guiding The PRESIDING OFFICER. Without Justice Kennedy wrote in his opinion drug dealers, we haven’t got a secure objection, it is so ordered. today: border. That is what the people of Ari- The Senator from Illinois. The history of the United States is in part zona not only want but they also de- Mr. DURBIN. Let me say, the Sen- made of the stories, talents, and lasting con- serve. ator from Arizona is my friend, and tributions of those who crossed oceans and By the way, Mitt Romney agrees that there are many things we have worked deserts to come here. we have to address this issue in a com- on together, and I respect him very Justice Kennedy is right. Congress prehensive fashion as well as concern much. He knows, as I do, when the should reform our immigration laws so about the plight of the children who DREAM Act was called, we thought the we can once again welcome those who are brought here illegally. But I would introductory may be the easiest part of cross oceans and deserts to revitalize also point out to my friend that part of immigration reform. It was stopped by and strengthen this Nation of immi- the DREAM Act, as proposed by the a Republican filibuster. grants. Senator from Illinois, is 2 years’ serv- Mr. MCCAIN. I don’t dispute that Mr. President, I yield the floor. point, I say to my friend from Illinois. The PRESIDING OFFICER. The Sen- ice in the military. We don’t sign peo- ple up for 2 years. Average citizens, in There was no comprehensive immigra- ator from Arizona. tion reform proposal that came over Mr. MCCAIN. Mr. President, I came order to get on a path to a green card from the White House or from the to the floor to discuss another issue. and citizenship, sign up for 4 years. Democrats, as was promised by then- But since my friend from Illinois, with That is just one of the areas that need Senator Obama when running for the whom I share many of his comments, I to be worked out. Presidency. That is a fact. have to comment. The fact is that the So there will be a lot of conversation Mr. DURBIN. I would say to the Sen- irony of the Supreme Court decision about this. But I believe people who ator from Arizona, as part of this col- today said it is a Federal responsibility live inside of our country—no matter loquy, we thought that would be the to ensure our borders and not the whether it is in Arizona or Illinois—de- first step. We couldn’t get past the first States’ responsibility. The State of Ar- serve the right to live in a safe envi- step because of the Republican fili- izona acted because the Federal Gov- ronment. The people who live in the buster. ernment wouldn’t act, because our bor- southern part of our State do not have Mr. MCCAIN. I wish that when then- ders were broken, because the people in that. Senator Obama was running for Presi- the southern part of our State were liv- So I hope we can get our borders se- dent he would have said: But first I am ing in fear, because a rancher was cure and we can move forward with coming over with the DREAM Act. He killed by someone who had crossed our comprehensive immigration. didn’t. He said: My first act will be border illegally, because people are on By the way, then-Senator Obama was comprehensive immigration reform. mountaintops today guiding drug run- one of the key reasons it failed because I was invited over to the White House ners across our border into Arizona he wanted to sunset the guest worker in 2009. We talked about comprehensive with drugs ending up in Phoenix, AZ, program. That is a fact, and you can immigration reform and I said: I will and distributed all over this Nation, look it up, I say to my friend from Illi- await a proposal from the administra- $887 million wasted on a contract for a nois. Although it was killed by people tion on comprehensive immigration re- virtual fence. on this side, it was also a broken prom- form. My phone never rang. Coyotes bring these people across and ise on the part of then-Senator Obama then treat them in the most abomi- Mr. DURBIN. I say to the Senator who assured Senator Kennedy and me from Arizona, perhaps the day will nable fashion, where they are put into that he wouldn’t vote for an amend- drop houses and kept in the worst come in our lifetime when we can see ment that would impair the progress of that, and you and I can work on it to- kinds of conditions and held for ran- comprehensive reform at that time. som. gether again as we once did before. I I look forward to having further dis- Because the Federal Government would look forward to that. would not secure our borders, the State cussions with the Senator from Illinois Mr. MCCAIN. I look forward to it, of Arizona believed they had to act be- as we move forward—sooner or later— and I want to say there has been no cause people in the southern part of with comprehensive immigration re- more passionate advocate in the Sen- our State and even other parts of our form, which is absolutely needed. But ate than the Senator from Illinois. I re- State were living in fear. They are liv- we also have to ensure the security of spect him and admire him for his com- ing in fear because of the drug dealers all of our citizens and stop the flow of passion and his concern about young who are coming across, because of the drugs across our southern border, people whose lives, as he very well de- coyotes who are mistreating the people which is killing our young Americans. scribed, need to have some kind of as- they were bringing. By the way, I would say to the Sen- surance for their future since it is Of course we want to address the ator from Illinois, the price of an ounce clearly a compelling humanitarian sit- issue of children who weren’t born of cocaine on the streets of Chicago uation. I thank my friend from Illinois. here. But we also have an obligation to today is not one less penny higher than HEALTH CARE RULING have our borders secured. I repeat— it was 10 years ago, which means we Mr. President, later this week the today, I say to my friend from Illi- are not restricting the flow of drugs Supreme Court will issue its ruling on nois—there are people sitting on moun- coming into our country. As we all the health care bill, designed and nego- taintops hired by the drug cartels who know, the majority of it comes across tiated by the White House and rammed are guiding the drug runners across our from our southern border. through Congress during President borders and up to Phoenix. You can ask Finally, I would remind my friend Obama’s first year in office when the the DEA. These drugs are then distrib- from Illinois that then-Senator Obama economy was near its weakest. uted throughout the country from promised in the campaign of 2008 that Instead of focusing on recovery and Phoenix, AZ. People are murdered, and immigration reform would be his first persistent unemployment, the Presi- the violence on the other side of the priority. The Senator had 60 votes over dent and the Democratic majorities border threatens every day to spill over here and an overwhelming majority in controlling Congress squandered the to our side of the border. So I hope, as the House of Representatives in the opportunity and forced the unpopular a result of this decision, the adminis- first 2 years of the Obama administra- and potentially unconstitutional legis- tration will get serious about actually tion. I never saw a proposal come to lation on the American people. securing our border. Every expert the Senate for comprehensive immigra- Today we are voting on final passage agrees that because of the work that tion reform. Now, the DREAM Act did. on the reconciled FDA user fee bill. has been done in California and Texas Comprehensive immigration reform? During Senate consideration of this it has funneled through the State of No. That is what then-Senator Obama bill I offered an amendment to allow Arizona. promised. safe drug importation from legitimate

VerDate Mar 15 2010 03:10 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.026 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4442 CONGRESSIONAL RECORD — SENATE June 25, 2012 Canadian pharmacies. But the pharma- but industry emerged satisfied as well. ‘‘We being negotiated, ‘‘The WHdesignated folks ceutical industry spread misleading got a deal,’’ wrote Bryant Hall, then senior . . . would like us to start to define what and inaccurate information about the vice president of the pharmaceutical group. ’consensus health care reform’ means, and In July, the White House made clear that amendment, as they have done time what it might include. . . . They definitely it wanted supportive ads using the same want us in the game and on the same side.’’ and a time again. As I said then, there characters the industry used to defeat Mr. is no greater example of the influence Clinton’s proposal 15 years earlier. ‘‘Rahm More on the ‘‘WH-designated folks of special interests on this body than asked for Harry and Louise ads thru third . . .’’ in a moment. The June 11 WSJ the failure to enact an amendment party,’’ Mr. Hall wrote.’’ editorial continued: Talks came close to breaking down several that would have allowed drugs from le- In particular, the drug lobby would spend times. In May, the White House was upset $70 million on two 501(c)(4) front groups gitimate Canadian pharmacies so peo- that the industry had not signed onto a joint called Healthy Economy Now and Americans ple could purchase their much needed statement. One industry official wrote that for Stable Quality Care. In July, Mr. Hall medication at sometimes half the cost they should sign: ‘‘Rahm is already furious. wrote that ‘‘Rahm asked for Harry and Lou- of what it is in the United States of The ire will be turned on us.’’ ise ads thru third party. We’ve already con- America. I am embarrassed to this day The e-mails also detail extensive and tacted the agent. that nine of my Republican colleagues direct negotiations with PhRMA, its Other groups like the AMA were also also voted against it. drug company members, the American willing to commit their membership I don’t know if there was a sweet- Medical Association, AARP, the Amer- dollars to advertising in support of the heart deal to protect PhRMA at the ex- ican Hospital Association, unions, and legislation in exchange for their policy pense of American patients from the many more. Members of the alliance priorities. According to the Wall Street vote on my amendment. But we do all participated because they thought Journal: know that PhRMA was protected by they were getting something more val- the White House and Senate Democrats uable—revenue to their organization or ‘‘At least PhRM/I deserves backhanded from provisions they didn’t like in membership because the Federal Gov- credit for the competence of its political ObamaCare only after they offered up ernment was going to force everyone operatives—unlike, say, the American Med- advertising in exchange for more ac- ical Association. A thread running through into some form of government-designed the emails is a hapless AMA lobbyist impor- commodating policies. health insurance coverage—than what From a recent House Energy and tuning Ms. DeParle and Mr. Messina for face- they were going to have to spend on ad- to-face meetings to discuss reforming the Commerce Committee investigation, it vertising to support the legislation. Medicare physician payment formula. The is now confirmed that PhRMA orches- Some reports have the PhRMA adver- AMA supported ObamaCare in return for this trated a grand deal with the White tising commitment as high as $150 mil- ‘‘doc fix,’’ which it never got. House and Senate Democrats to oppose lion, spread out through direct adver- ‘‘We are running out of time,’’ this lob- importation and other policies. I might tising in certain important States and byist, Richard Deem, writes in October 2009. point out then-Senator Obama sup- among groups created to sound like How can he ‘‘tell my colleagues at AMA headquarters to proceed with $2m TV buy’’ ported drug importation. they were looking out for patients or This is how the New York Times de- without a permanent fix? The question an- to tout the economic benefits of scribed the deal that was done in ex- swers itself: It was only $2 million.’’ ObamaCare. change for reportedly $150 million in On June 11, 2012, the Wall Street The emails uncovered by the House advertising to support ObamaCare, Journal described the e-mails about committee also describe potentially se- June 8, 2012: the 2009 negotiations: rious conflicts of interest for senior After weeks of quiet talks, drug industry The joint venture was forged in secret in White House staff, their former busi- lobbyists were growing nervous. If they were spring of 2009 amid an uneasy mix of menace nesses, who was really writing the leg- to cut a deal with the White House on over- and opportunism. The drug makers worried islation—the White House, Congress or hauling health care, they needed to be sure that health-care reform would revert to the affected industries—and questions President Obama would stop a proposal by liberal default of price controls and drug re- his liberal allies intended to bring down about the appearance of the White importation that Mr. Obama campaigned on, medicine prices. House staff orchestrating the outside On June 3, 2009, one of the lobbyists e- but they also understood that a new entitle- advertising campaign. On June 21, 2012 mailed Nancy-Ann DeParle, the president’s ment could be a windfall as taxpayers bought the Wall Street Journal further re- top health care adviser. Ms. DeParle sent a more of their products. . . . Initially, the Obamateers and Senate Fi- ported on the 2009 secret deals: message back reassuring the lobbyists. Al- nance Chairman Max Baucus asked for $100 though Mr. Obama was overseas, she wrote, STRASSEL: AXELROD’S OBAMACARE DOLLARS billion, 90% of it from mandatory ‘‘rebates’’ she and other top officials had ‘‘made a deci- through the Medicare prescription drug ben- (By Kimberly A. Strassel) sion, based on how constructive you guys efit like those that are imposed in Medicaid. Rewind to 2009. The fight over ObamaCare have been, to oppose importation on the The drug makers wheedled them down to $80 is raging, and a few news outlets report that bill.’’ Just like that, Mr. Obama’s staff aban- billion by offsetting cost-sharing for seniors something looks ethically rotten in the doned his support for the reimportation of on Medicare, in an explicit quid pro quo for White House. An outside group funded by in- prescription medicines at lower prices and protection against such rebates and re-im- dustry is paying the former firm of senior with it solidified a growing compact with an portation. presidential adviser David Axelrod to run ads industry he had vilified on the campaign ‘‘Terms were reached in June. . .lead in favor of the bill. That firm, AKPD Mes- trail the year before. PhRMA negotiator Bryant Hall wrote on sage and Media, still owes Mr. Axelrod A president who had promised to air nego- June 12 that Mr. Obama ‘‘knows personally money and employs his son. tiations on C–SPAN cut a closed-door deal about our deal and is pushing no agenda.’’ The story quickly died, but emails recently with the powerful pharmaceutical lobby, sig- But Energy and Commerce Chairman nifying to some disillusioned liberal sup- released by the House Energy and Commerce Henry Waxman then announced that he was Committee ought to resurrect it. The emails porters a loss of innocence, or perhaps even pocketing PhRMA’s concessions and de- the triumph of cynicism. suggest the White House was intimately in- manding more, including re-importation. We volved both in creating this lobby and hiring Still, what distinguishes the Obama-indus- wrote about the double-cross in a July 16, try deal is that he had so strongly rejected Mr. Axelrod’s firm—which is as big an eth- 2009 editorial called ‘‘Big Pharma Gets ical no-no as it gets. that very sort of business as usual. Played,’’ noting that Mr. Tauzin’s ‘‘cor- Mr. Axelrod—who left the White House last Ironically, candidate Obama sang a porate clients and their shareholders may year—started AKPD in 1985. Mr. Axelrod very different tune on the campaign soon pay for his attempt to get cozy with moved to the White House in 2009 and agreed ObamaCare.’’ trail in 2008: to have AKPD buy him out for $2 million. You know, I don’t want to learn how to Mr. Hall forwarded the piece to Ms. DeParle with the subject line, ‘‘This sucks.’’ But AKPD chose to pay Mr. Axelrod in an- play the game better. I want to put an end to nual installments—even as he worked in the the game playing. The White House rode to the rescue. In Sep- tember Mr. Hall informed Mr. Kindler that West Wing. Now, PhRMA is the lobbying group deputy White House chief of staff Jim The White House and industry were work- for the pharmaceutical industry. The Messina ‘‘is working on some very explicit ing hand-in-glove to pass ObamaCare in 2009, New York Times article continued: language on importation to kill it in health and among the vehicles supplying ad support The e-mails, which the House committee care reform. This has to stay quiet.’’ was an outfit named Healthy Economy Now obtained from PhRMA and other groups, doc- ‘‘PhRMA more than repaid the favor, with (HEN). ument a tumultuous negotiation, at times a $150 million advertising campaign coordi- House emails show HEN was in fact born at transactional. . . . nated with the White House political shop. an April 15, 2009 meeting arranged by then- In the end, the White House got the sup- As one of Mr. Hall’s deputies put it earlier in White House aide Jim Messina and a chief of port it needed to pass its broader priority, the minutes of a meeting when the deal was staff for Democratic Sen. Max Baucus. The

VerDate Mar 15 2010 05:19 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\CR\FM\G25JN6.027 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4443 two politicos met at the Democratic Senato- these negotiations, and what did the White before the June 20 statement, the head of rial Campaign Committee (DSCC) and in- House obtain in exchange? PhRMA promised Messina, ‘‘we will deliver a vited representatives of business and labor. This investigation has produced further in- final yes to you by morning.’’ Meanwhile, The call was from Nick Baldick, a Demo- formation regarding the substance of the Ms. DeParle all but confirmed that half of cratic consultant who had worked on the ‘‘deal’’ between the White House and the the Legislative Branch was shut out in an Obama campaign and for the DSCC. Mr. Pharmaceutical Manufacturers of America email to a PhRMA representative: ‘‘I think Baldick started HEN. The only job of (PhRMA), the details of which have never we should have included the House in the PhRMA and others was to fund it. been fully disclosed to the public. Further, discussions, but maybe we never would have Meanwhile, Mr. Axelrod’s old firm was based on email exchanges and other primary gotten anywhere if we had.’’ hired to run the ads promoting ObamaCare. source material, it appears that deal was Given these facts, it is unclear why the At the time, a HEN spokesman said HEN had reached not solely between PhRMA and the White House did not fully disclose its in- done the hiring. But the emails suggest oth- United States Senate Finance Committee, volvement with outside stakeholders in the erwise. In email after email, the contributors but that top personnel in the White House development of the legislation. Their efforts to HEN refer to four men as the ‘‘White were involved in negotiating and approving are particularly surprising given the Presi- House’’ team running health care. this deal. The following update is based on dent’s repeated promises of transparency. After this Committee initiated its inves- In one email, PhRMA consultant Steve internal records obtained from outside tigation into the potential promises or stakeholders who engaged in negotiations McMahon calls these four the ‘‘WH-des- agreements made between PhRMA, labor outside the public’s view during the develop- ignated folks.’’ He explains to colleagues unions, insurers, medical associations, and ment and passage of PPACA. that Messrs. Grossman, Grisolano and Del other trade and advocacy organizations, the Cecato ‘‘are very close to Axelrod,’’ and that I. WAS THERE A DEAL? White House derided the Committee’s re- ‘‘they have been put in charge of the cam- The existence of an agreement or series of quest for basic information about its legisla- paign to pass health reform.’’ agreements between powerful health care in- tive efforts as ‘‘vast and expensive.’’ The A 2009 PhRMA memo also makes clear that dustry stakeholders and the authors of White House refused to produce any of the AKPD had been chosen before PhRMA joined PPACA is a widely known—albeit poorly un- requested documents and only produced to HEN. It’s also clear that some contributors derstood—aspect of the health care law. the Committee a list of meetings based on didn’t like the conflict of interest. When, in Media accounts dating back to 2009 specu- ‘‘calendar entries and other readily available July 2009, a media outlet prepared to report lated on the existence and details of such information.’’ These calendar entries do not AKPD’s hiring, a PhRMA participant said: deals leading up to the law’s enactment. provide information on the attendees or de- ‘‘This is a big problem.’’ Mr. Baldick advises: However, those accounts have lacked con- tails of discussion. For example, the calendar ‘‘just say, AKPD is not working for crete evidence of exactly what policies the provided by the White House identifies a PhRMA.’’ AKPD and another firm, GMMB, White House accepted or rejected as part of July 7, 2009, event as follows: ‘‘Meeting with would handle $12 million in ad business from these agreements, and what the interest PhRMA representatives.’’ No further infor- HEN and work for a successor 501(c)4. groups delivered in return. Moreover, media mation is provided. This investigation, how- A basic rule of White House ethics is to accounts and public statements from policy- ever, has revealed that this was not only a avoid even the appearance of self-dealing or makers at the time were often conflicting or meeting between representatives of PhRMA nepotism. Could you imagine the press fren- incomplete, failing to provide a clear picture and top White House aides; it was the crit- zy if Karl Rove had done the same after he to the American people about how this law ical meeting to solidify the deal. As a joined the White House? was being written, and by whom. PhRMA representative said at the time: ‘‘It’s Until the White House explains all this, For example, while President Obama re- just to go over the principal elements of the voters can fairly conclude that the Presi- ferred to the agreement in June 2009, reports deal w[ith] Rahm, Messina and DeParle. ’’ dent’s political team took their Chicago at the time also indicated that ‘‘many de- III. WHAT DID THE WHITE HOUSE PROMISE TO DO? brand of ethics into the White House.’’ tails of the . . . deal remained unclear.’’ A Even news stories that indicated that Mr. President, I ask unanimous con- month later, The Wall Street Journal re- there was a potential agreement with the sent to have printed in the RECORD a ported that House Democrats had been told pharmaceutical industry could not report the entirety of the agreement. The August New York Times article, June 8, 2012; a that the Administration ‘‘doesn’t feel bound’’ by the agreement. Because of in- New York Times story that reported White Wall Street Journal article, June 11, creased pressure from the Hill to scuttle the House acknowledgment of the deal ‘‘for the 2012; and June 21 Wall Street Journal agreement, eventually the White House at- first time’’ could not report any specifics editorial, and the memos about the e- tempted to publicly support the deal in early ‘‘beyond an agreed-upon $80 billion’’ in cost mails associated with this report. August when The New York Times reported savings. This investigation will show that There being no objection, the mate- that the drug industry ‘‘. . . successfully de- the agreement between the White House and rial was ordered to be printed in the manded that the White House explicitly ac- the pharmaceutical industry was much more explicit. In the coming weeks the Committee RECORD, as follows: knowledge for the first time it had com- mitted to protect drug makers. . . .’’ Yet, a intends to show what the White House MAY 16, 2012. week later reports still indicated that agreed to do as part of its deal with the phar- To: Energy and Commerce Committee Re- ‘‘[s]ince mid-July, the White House and the maceutical industry and how the full details publican Members drug industry’s lobby, PhRMA, have denied of this agreement were kept from both the From: Subcommittee on Oversight and In- any specific agreement. . . .’’ public and the House of Representatives. vestigations Majority Staff This investigation has confirmed the exist- After two years, the health care law has Re Investigation Update: Closed-Door ence of a deal between the White House and failed to lower costs while only increasing Obamacare Negotiations PhRMA that explicitly bound both parties to its unpopularity with the public. According to a PhRMA official: ‘‘[W]e got a good deal.’’ From: Messina, Jim certain commitments. As the email ex- Sent: Friday, January 15, 2010 6:04 PM The important question to answer is what change at the top of this memorandum dem- did the White House get in return. To: Bryant Hall onstrates, the deal was so clearly understood Subject: FW: TAUZIN EMAIL to be binding that White House Deputy Chief What the hell? This wasn’t part of our deal. MAY 31, 2012. of Staff Jim Messina made direct contact To: Energy and Commerce Committee Re- OVERVIEW with PhRMA’s chief lobbyist for the negotia- publican Members The purpose of this memorandum is to up- tions regarding the deal to express his dis- From: Majority Staff date Republican Members on the Energy and pleasure with an apparent violation of the Re Investigation Update: Closed-Door Commerce Committee on the Committee’s agreement more than two months before the Obamacare Negotiations legislation was given final approval by Con- ongoing investigation into the potential EXECUTIVE SUMMARY agreements made by the White House and gress. The White House negotiated a deal with II. WHY DID THE WHITE HOUSE HIDE ITS health care industry stakeholders prior to the Pharmaceutical Research and Manufac- INVOLVEMENT? passage of the Patient Protection and Af- turers of America (PhRMA) in mid-June 2009. fordable Care Act (PPACA). As reported on On June 20, 2009, the White House issued a After attempting to secure a commitment April 17, 2012, the Committee’s investigation 296-word statement from President Obama from the industry for $100 billion in payment is attempting to answer the following ques- announcing an agreement between the na- cuts, eventually the White House settled for tions: tion’s pharmaceutical companies and the approximately $80 billion in payment reduc- Were ‘‘deals’’ made between the Adminis- Senate. The statement makes no mention of tions through expanded and increased Med- tration and outside stakeholders that ex- White House involvement. icaid rebates and a new health reform fee. changed specific policy outcomes for public The investigation has determined that the PhRMA also had direct input into the actual support of the law? White House, primarily through the Office of legislative policies that produced the $80 bil- Who made these deals, and to what extent Health Reform Director Nancy Ann DeParle lion, including the proposal for closing the was Congress excluded? and Messina, with involvement from Chief of Part D doughnut hole. What specifically was negotiated by the Staff Rahm Emmanuel, was actively engaged Under the deal, ‘‘the White House and Sen- White House and these outside interests? in these negotiations while the role of Con- ator Baucus agreed’’ that neither price con- What policies are now law as a result of gress was limited. For example, three days trols nor a government-run Medicare Part D

VerDate Mar 15 2010 05:19 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.025 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4444 CONGRESSIONAL RECORD — SENATE June 25, 2012 plan would become law, the White House PhRMA’s chief lobbyist reported that tonight. Rahm will make it clear that would oppose price controls on dual eligible White House Chief of Staff Rahm Emanuel PhRMA needs a direct line of communica- beneficiaries, and that savings from a follow- asked for ‘‘Harry and Louise ads thru third tion, separate and apart from any coalition.’’ on biologics proposal would be applied to the party’’ on July 7, 2009, the same day White Nancy-Ann is Nancy-Ann DeParle, the White total $80 billion commitment. House officials met with PhRMA CEOs. House health reform director, and Rahm is, White House Office of Health Reform Di- PhRMA aired the ad a week later. of course, Rahm. rector Nancy-Ann DeParle told PhRMA’s Public revelations about the hiring of po- Terms were reached in June. Mr. Kindler’s chief lobbyist for negotiating the deal that litical firms close to the White House were chief of staff wrote a memo to her industry the White House would oppose new drug im- perceived to be a ‘‘big problem.’’ Presum- colleagues explaining that ‘‘Jeff would ob- portation policies because of ‘‘how construc- ably, because the firms producing and plac- ject to me telling you that his communica- tive’’ PhRMA had been. According to ing some of PhRMA’s advertising, including tion skills and breadth of knowledge on the PhRMA’s lobbyist, White House Deputy the advertising through both Healthy Econ- issues was very helpful in keeping the meet- Chief of Staff Jim Messina told him that the omy Now and Americans for Stable Quality ing productive.’’ Soon the White House ‘‘WH is working on some very explicit lan- Care, had also received over $340 million to leaked the details to show that reform was guage on importation to kill it in health re- handle advertising for President Obama’s making health-care progress, and lead form.’’ 2008 election campaign. PhRMA negotiator Bryant Hall wrote on According to internal e-mails, PhRMA’s The White House attempted to steer the June 12 that Mr. Obama ‘‘knows personally chief lobbyist believed the White House advertising and advocacy tactics of a number about our deal and is pushing no agenda.’’ eventually cut a deal with the pharma- of organizations, including the AFL-CIO and But Energy and Commerce Chairman ceutical industry during the week of June 20, AARP. Henry Waxman then announced that he was 2009, because the White House had suffered a pocketing PhRMA’s concessions and de- bad week politically. [From the Wall Street Journal, June 11, 2012] manding more, including re-importation. We Despite countless promises of televised ne- OBAMACARE’S SECRET HISTORY—HOW A wrote about the double-cross in a July 16, gotiations and transparent government, the PFIZER CEO AND BIG PHARMA COLLUDED 2009 editorial called ‘‘Big Pharma Gets White House met in private with PhRMA WITH THE WHITE HOUSE AT THE PUBLIC’S Played,’’ noting that Mr. Tauzin’s ‘‘cor- representatives and drug company CEOs in EXPENSE. porate clients and their shareholders may July 2009, ‘‘to look the other side in the eye soon pay for his attempt to get cozy with On Friday House Republicans released and shake their hand on whatever deal we ObamaCare.’’ more documents that expose the collusion work out.’’ Mr. Hall forwarded the piece to Ms. between the health-care industry and the The White House was not above threat- DeParle with the subject line, ‘‘This sucks.’’ White House that produced ObamaCare, and ening PhRMA to get its way. According to The duo commiserated about how unreason- what a story of crony capitalism it is. If the PhRMA’s chief lobbyist, the White House able House Democrats are, unlike Mr. Bau- trove of emails proves anything, it’s that the was going to have President Obama call for cus and the Senators. The full exchange is Tea Party isn’t angry enough. rebating all of Medicare Part D, a policy among the excerpts from the emails printed Over the last year, the Energy and Com- PhRMA staunchly opposed, in his Weekly nearby. merce Committee has taken Nancy Pelosi’s Radio Address unless PhRMA cut a deal with Then New York Times reporter Duff Wil- advice to see what’s in the Affordable Care the White House to support health reform. son wrote to a PhRMA spokesman, ‘‘Tony, Act and how it passed. The White House re- you see the WSJ editorial, ‘Big Pharma Gets fused to cooperate beyond printing out old JUNE 8, 2012. Played’ ’’? I’m doing a story along that line press releases, but a dozen trade groups To: Energy and Commerce Committee Re- for Monday.’’ The drug dealers had a prob- turned over thousands of emails and other publican Members lem. files. A particular focus is the drug lobby, From: Majority Staff The White House rode to the rescue. In President Obama’s most loyal corporate ally Re: Investigation Update: Closed-Door September Mr. Hall informed Mr. Kindler in 2009 and 2010. Obamacare Negotiations that deputy White House chief of staff Jim The business refrain in those days was that Messina ‘‘is working on some very explicit EXECUTIVE SUMMARY if you’re not at the table, you’re on the language on importation to kill it in health As part of its agreement with the White menu. But it turns out Big Pharma was also care reform. This has to stay quiet.’’ House, the Pharmaceutical Research and serving as head chef, maˆ tre d’hotel and dish- PhRMA more than repaid the favor, with a Manufacturers of America (PhRMA) needed washer. Though some parts of the story have $150 million advertising campaign coordi- to undertake a ‘‘significant public cam- been reported before, the emails make clear nated with the White House political shop. paign.’’ PhRMA was willing to spend as that ObamaCare might never have passed As one of Mr. Hall’s deputies put it earlier in much as $150 million on advertising, with without the drug companies. Thank you, the minutes of a meeting when the deal was nearly $70 million spent on two 501(c)(4) Pfizer. being negotiated, ‘‘The WH-designated folks groups that could spend unlimited corporate The joint venture was forged in secret in . . . would like us to start to define what money with little public disclosure: Healthy spring 2009 amid an uneasy mix of menace ‘consensus health care reform’ means, and Economy Now and Americans for Stable and opportunism. The drug makers worried what it might include. . . . They definitely Quality Care. that health-care reform would revert to the want us in the game and on the same side.’’ Healthy Economy Now was created after a liberal default of price controls and drug re- In particular, the drug lobby would spend meeting at the Democratic Senatorial Cam- importation that Mr. Obama campaigned on, $70 million on two 501(c)(4) front groups paign Committee (DSCC) organized in part but they also understood that a new entitle- called Healthy Economy Now and Americans by White House Deputy Chief of Staff Jim ment could be a windfall as taxpayers bought for Stable Quality Care. In July, Mr. Hall Messina. Participants were told that the more of their products. The White House wrote that ‘‘Rahm asked for Harry and Lou- White House wanted to see ads linking the wanted industry financial help and knew ise ads thru third party. We’ve already con- poor economy to the need for health care that determined business opposition could tacted the agent.’’ legislation, with one attendee remarking tank the bill. Mr. Messina—known as ‘‘the fixer’’ in the that ‘‘given who is behind this ask’’ their Initially, the Obamateers and Senate Fi- West Wing—asked on December 15, 2009, group should support the effort. nance Chairman Max Baucus asked for $100 ‘‘Can we get immediate robo calls in Ne- In early June 2009, PhRMA representatives billion, 90% of it from mandatory ‘‘rebates’’ braska urging nelson to vote for cloture?’’ met with ‘‘the team that is working with the through the Medicare prescription drug ben- Ben Nelson was the last Democratic holdout White House on health care reform’’ to learn efit like those that are imposed in Medicaid. toward the Senate’s 60-vote threshold, and, about White House messaging and ‘‘how our The drug makers wheedled them down to $80 as Mr. Messina wrote, ‘‘We are at 59, we have effort can be consistent with that.’’ The billion by offsetting cost-sharing for seniors to have him.’’ They got him. team was a who’s who of Democratic strate- on Medicare, in an explicit quid pro quo for At least PhRMA deserves backhanded cred- gists that included a previous head of the protection against such rebates and re-im- it for the competence of its political DSCC; the producer of the 2008 Democratic portation. As Pfizer’s then-CEO Jeff Kindler operatives—unlike, say, the American Med- National Convention; and two partners at put it, ‘‘our key deal points . . . are, to some ical Association. A thread running through AKPD Message and Media, the advertising extent, as important as the total dollars.’’ the emails is a hapless AMA lobbyist impor- firm founded by then Senior Advisor to the Mr. Kindler played a more influential role tuning Ms. DeParle and Mr. Messina for face- President David Axelrod. than we understood before, as the emails to-face meetings to discuss reforming the When PhRMA’s representative indicated show. Medicare physician payment formula. The that PhRMA was not prepared to run adver- Thus began a close if sometimes dysfunc- AMA supported ObamaCare in return for this tisements before seeing how the health care tional relationship with the Pharmaceutical ‘‘doc fix,’’ which it never got. legislation developed, the White House team Research and Manufacturers of America, or ‘‘We are running out of time,’’ this lob- specifically referred to a meeting the PhRMA, as led by Billy Tauzin, the Lou- byist, Richard Deem, writes in October 2009. PhRMA CEOs had with Jim Messina the day isiana Democrat turned Republican turned How can he ‘‘tell my colleagues at AMA before and to White House efforts on drug lobbyist. As a White House staffer put it in headquarters to proceed with $2m TV buy’’ importation policy which had been commu- May 2009, ‘‘Rahm’s calling Nancy-Ann and without a permanent fix? The question an- nicated to PhRMA’s chief lobbyist that day. knows Billy is going to talk to Nancy-Ann swers itself: It was only $2 million.

VerDate Mar 15 2010 05:19 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.031 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE June 25, 2012 CONGRESSIONAL RECORD — SENATE S4445 Mr. Waxman recently put out a rebuttal On June 3, 2009, one of the lobbyists e- ‘‘Throughout his campaign, President memo dismissing these email revelations as mailed Nancy-Ann DeParle, the president’s Obama was clear that he would bring every routine, ‘‘exactly what Presidents have al- top health care adviser. Ms. DeParle sent a stakeholder to the table in order to pass ways done to enact major legislation.’’ message back reassuring the lobbyist. Al- health reform, even longtime opponents like Which is precisely the point—the normality though Mr. Obama was overseas, she wrote, the pharmaceutical industry,’’ Mr. Pfeiffer is the scandal. In 2003 PhRMA took a similar she and other top officials had ‘‘made deci- said. ‘‘He understood correctly that the un- road trip with the Bush Republicans to cre- sion, based on how constructive you guys willingness to work with people on both ate the Medicare drug benefit. That effort in- have been, to oppose importation on the sides of the issue was one of the reasons why cluded building public support by heavily bill.’’ it took a century to pass health reform.’’ funding a shell outfit called Citizens for a Just like that, Mr. Obama’s staff aban- In a statement, PhRMA said that its inter- Better Medicare. doned his support for the reimportation of actions with Mr. Obama’s White House were Of course Democrats claim to be above this prescription medicines at lower prices and part of its mission to ‘‘ensure patient ac- kind of merger of private profits and polit- with it solidified a growing compact with an cess’’ to quality medicine and to advance ical power, as Mr. Obama did as a candidate. industry he had vilified on the campaign medical progress. ‘‘The pharmaceutical industry wrote into trail the year before. Central to Mr. Obama’s ‘‘Before, during and since the health care the prescription drug plan that Medicare drive to overhaul the nation’s health care debate, PhRMA engaged with Congress and could not negotiate with drug companies,’’ system was an unlikely collaboration with the administration to advance these prior- he said in 2008. ‘‘And you know what? The the pharmaceutical industry that forced un- ities,’’ said Matthew Bennett, the group’s chairman of the committee who pushed the appealing trade-offs. senior vice president. law through’’—that would be Mr. Tauzin— The e-mail exchange that day three years Representative Henry Waxman of Cali- ‘‘went to work for the pharmaceutical indus- ago was among a cache of messages obtained fornia, the top Democrat on the House com- try making $2 million a year.’’ from the industry and released in recent mittee and one of those who balked at Mr. Outrage over this kind of cronyism is what weeks by House Republicans—including a Obama’s deal in 2009, now defends it as tradi- animates the Tea Party and Occupy Wall new batch put out on Friday morning detail- tional Washington lawmaking. Street, whose members aren’t powerful ing the industry’s advertising campaign in ‘‘Presidents have routinely sought the sup- enough to get special dispensations from the favor of Mr. Obama’s proposal. The broad port and lobbying clout of private industry government—or even a fair hearing from contours of the president’s dealings with the in passing major legislation,’’ Mr. Waxman’s their putative representatives. drug industry were known in 2009 but the committee staff said in a memo released in In one email, an AARP lobbyist writes the newly public e-mails open a window into the response to the e-mails. ‘‘President Obama’s White House to say ‘‘We really need to talk,’’ compromises underlying a health care over- actions, for example, are no different than noting that calls from seniors are running 14 haul now awaiting the judgment of the Su- those of President Lyndon B. Johnson in en- to one against ObamaCare. But she isn’t call- preme Court. acting Medicare in 1965 or President George ing to say that AARP is withdrawing sup- Mr. Obama’s deal-making in 2009 rep- W. Bush in expanding Medicare to add a pre- port—only that the White House needs to ad- resented a pivotal moment in his young pres- scription drug benefit in 2003.’’ just its messaging. This is how a bill passes idency, a juncture where the heady idealism Still, what distinguishes the Obama-indus- over the objections of most Americans. of the campaign trail collided with the try deal is that he had so strongly rejected The lesson for Republicans if they do end messy reality of Washington policymaking. that very sort of business as usual. During up running the country next year is that A president who had promised to air negotia- his campaign for president, he specifically their job is to restore the free and fair mar- tions on C-Span cut a closed-door deal with singled out the power of the pharmaceutical ket that creates broad-based economic the powerful pharmaceutical lobby, signi- industry and its chief lobbyist, former Rep- growth. The temptation will be to return for fying to some disillusioned liberal supporters resentative Billy Tauzin, a Democrat-turned- the sake of power to the methods of Tom a loss of innocence, or perhaps even the tri- Republican from Louisiana, as examples of DeLay and Jack Abramoff. If they do, voters umph of cynicism. what he wanted to change. will return the GOP to private life as surely But if it was a Faustian bargain for the ‘‘The pharmaceutical industry wrote into as they did the Democrats in 2010. president, it was one he deemed necessary to the prescription drug plan that Medicare The warning to business is also funda- forestall industry opposition that had could not negotiate with drug companies,’’ mental. Crony capitalism undermines public thwarted efforts to cover the uninsured for Mr. Obama said in a campaign advertise- trust in capitalism itself and risks blowback generations. Without the deal, in which the ment, referring to Mr. Bush’s 2003 legisla- that erodes the free market that private industry agreed to provide $80 billion for tion. ‘‘And you know what? The chairman of companies need to prosper and that underlies health reform in exchange for protection the committee who pushed the law through the productivity and competitiveness of the from policies that would cost more, Mr. went to work for the pharmaceutical indus- U.S. economy. The political benefits of cro- Obama and Democratic allies calculated he try making $2 million a year. nyism are inherently temporary, but the might get nowhere. ‘‘Imagine that,’’ Mr. Obama continued. damage it does is far more lasting. ‘‘There was no way we had the votes in ei- ‘‘That’s an example of the same old game As for Big Pharma, the lobby ultimately ther the House or the Senate if PhRMA was playing in Washington. You know, I don’t staved off Mr. Waxman’s revolt and avoided opposed—period,’’ said a senior Democratic want to learn how to play the game better. some truly harmful drug policies—for now. official involved in the talks, referring to the I want to put an end to the game playing.’’ But over the long term their products are far Pharmaceutical Research and Manufacturers After arriving at the White House, though, more vulnerable to the command-and-con- of America, the drug industry trade group. he and his advisers soon determined that one trol central planning that will erode medical Republicans see the deal as hypocritical. reason Mr. Clinton had failed to pass health innovation, and their $80 billion fillip is ‘‘He said it was going to be the most open care reform was the resilient opposition of merely the teaser rate. and honest and transparent administration industry. Led by Rahm Emanuel, his chief of Mr. Kindler resigned from Pfizer in Decem- ever and lobbyists won’t be drafting the staff and a former House leader, and Jim ber 2010 under pressure from directors, its bills,’’ said Representative Michael C. Bur- Messina, his deputy, White House officials stock having lost 35% of its value since he gess of Texas, one of the Republicans on the set out to change that dynamic. became CEO. Mr. Tauzin left PhRMA in Feb- House Energy and Commerce subcommittee The e-mails, which the House committee ruary 2010, with the Affordable Care Act a that is examining the deal. ‘‘Then when it obtained from PhRMA and other groups month from passage. came time, the door closed, the lobbyists after the White House declined to provide The truth is that this destructive legisla- came in and the bills were written.’’ correspondence, document a tumultuous ne- tion wasn’t inevitable and far better reforms Some of the liberals bothered by the deal- gotiation, at times transactional, at others were possible. They still are, though they making in 2009 now find the Republican criti- prickly. Each side suspected the other of be- might have gained more traction in 2009 and cism hard to take given the party’s long- traying trust and operating in bad faith. 2010 with the right support. The miracle is standing ties to the pharmaceutical indus- The White House depicted in the message that, despite this collusion of big govern- try. traffic comes across as deeply involved in ment and big business, ObamaCare has re- ‘‘Republicans trumpeting these e-mails is the give-and-take, and not averse to pressure ceived the public scorn that it deserves. like a fox complaining someone else raided tactics, including having Mr. Obama publicly the chicken coop,’’ said Robert Reich, the assail the industry unless it gave in on key [From the New York Times, June 8, 2012] former labor secretary under President Bill points. In the end, the White House got the LOBBY E-MAILS SHOW DEPTH OF OBAMA TIES Clinton. ‘‘Sad to say, it’s called politics in an support it needed to pass its broader pri- TO DRUG INDUSTRY era when big corporations have an effective ority, but industry emerged satisfied as well. (By Peter Baker) veto over major legislation affecting them ‘‘We got a good deal,’’ wrote Bryant Hall, WASHINGTON.—After weeks of quiet talks, and when the G.O.P. is usually the bene- then senior vice president of the pharma- drug industry lobbyists were growing nerv- ficiary. In this instance, the G.O.P. was out- ceutical group. ous. If they were to cut a deal with the White foxed. Who are they to complain?’’ Mr. Bryant, now head of his own firm, de- House on overhauling health care, they need- Dan Pfeiffer, the White House communica- clined to comment. So did Mr. Emanuel, now ed to be sure President Obama would stop a tions director, said the collaboration with mayor of Chicago; Mr. Messina, now the proposal by his liberal allies intended to industry was in keeping with the president’s president’s campaign manager; and Ms. bring down medicine prices. promise to build consensus. DeParle, now a White House deputy chief of

VerDate Mar 15 2010 03:12 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.026 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE S4446 CONGRESSIONAL RECORD — SENATE June 25, 2012 staff. Mr. Tauzin, who has left his post as the agreement somehow passed muster with the Axelrod’s former firm, they contributed to industry’s lobbyist, did not respond to mes- Office of Government Ethics, though the sit- his son’s salary as well as to the ability of sages. uation at the very least should have walled the firm to pay Mr. Axelrod what it still The latest e-mails released on Friday un- off AKPD from working on White-House pri- owed him. Could you imagine the press fren- derscore the detailed discussions the two orities. zy if Karl Rove had done the same after he sides had about an advertising campaign sup- It didn’t. The White House and industry joined the White House? porting Mr. Obama’s health overhaul.‘‘They were working hand-in-glove to pass Messrs. Axelrod and Messina are now in plan to hit up the ‘bad guys’ for most of the ObamaCare in 2009, and among the vehicles Chicago running Mr. Obama’s campaign. Mr. $,’’ a union official wrote after an April supplying ad support was an outfit named Axelrod, the White House and a partner for meeting with Mr. Messina and Senate Demo- Healthy Economy Now (HEN). News stories AKPD didn’t respond to requests for com- cratic aides. ‘‘They want us to just put in at the time described this as a ‘‘coalition’’ ment on their role in HEN, the tapping of enough to be able to put our names in it—he that included the Pharmaceutical Research Mr. Baldick, and the redolent hiring of is thinking @100K.’’ and Manufacturers of America (PhRMA), the AKPD. Until the White House explains all In July, the White House made clear that American Medical Association, and labor this, voters can fairly conclude that the it wanted supportive ads using the same groups—suggesting these entities had start- President’s political team took their Chi- characters the industry used to defeat Mr. ed and controlled it. cago brand of ethics into the White House. Clinton’s proposal 15 years earlier. ‘‘Rahm House emails show HEN was in fact born at Mr. MCCAIN. Mr. President, I know asked for Harry and Louise ads thru third an April 15, 2009 meeting arranged by then- my other colleagues are waiting to party,’’ Mr. Hall wrote. White House aide Jim Messina and a chief of speak, but last month when we voted Industry and Democratic officials said pri- staff for Democratic Sen. Max Baucus. The down this amendment to allow drug re- vately that the advertising campaign was an two politicos met at the Democratic Senato- importation from pharmacies that are outgrowth of the fundamental deal, not the rial Campaign Committee (DSCC) and in- accredited by both the Canadian and vited representatives of business and labor. goal of it. The industry traditionally adver- American Governments, my statement tises in favor of legislation it supports. A Service Employees International Union Either way, talks came close to breaking attendee sent an email to colleagues noting was, and I will repeat it: down several times. In May, the White House she’d been invited by the Baucus staffer, ex- In a normal world, this would probably re- was upset that the industry had not signed plaining: ‘‘Also present was Jim Messina. quire a voice vote. But what we are about to onto a joint statement. One industry official . . . They basically want to see adds linking see is the incredible influence of the special wrote that they should sign: ‘‘Rahm is al- HC reform to the economy . . . there were interests, particularly PhRMA, here in ready furious. The ire will be turned on us.’’ not a lot of details, but we were told that we Washington. By June, it came to a head again. ‘‘Barack would be getting a phone call. Well that call What you are about to see [as I predicted Obama is going to announce in his Saturday came today.’’ just before the vote] is the reason for the radio address support for rebating all of D The call was from Nick Baldick, a Demo- cynicism the American people have about unless we come to a deal,’’ Mr. Hall wrote, cratic consultant who had worked on the the way we do business in Washington. PhRMA—one of the most powerful lobbies in referring to a change in Medicare Part D Obama campaign and for the DSCC. Mr. Washington—will exert its influence again at that would cost the industry. Baldick started HEN. The only job of the expense of average low-income Ameri- In the end, the two sides averted the public PhRMA and others was to fund it. cans who will, again, have to choose between confrontation and negotiated down to $80 bil- Meanwhile, Mr. Axelrod’s old firm was medication and eating. lion from $100 billion. But the industry be- hired to run the ads promoting ObamaCare. lieved the White House was rushing an an- At the time, a HEN spokesman said HEN had In response the Senator from New nouncement to deflect political criticism. done the hiring. But the emails suggest oth- Jersey said, in opposition to my ‘‘It’s pretty clear that the administration erwise. In email after email, the contributors amendment: has had a horrible week on health care re- to HEN refer to four men as the ‘‘White It is not the special interests that have form, and we are now getting jammed to House’’ team running health care. They in- caused the Senate countless times to reject make this announcement so the story takes cluded John Del Cecato and Larry Grisolano this policy. . . . . a positive turn before the Sunday talk shows (partners at AKPD), as well as Andy Gross- This is about the health and security of the beat up on Congress and the White House,’’ man (who once ran the DSCC) and Erik American people. That is why time after wrote Ken Johnson, a senior vice president Smith, who had been a paid adviser to the time the Senate has rejected it. It is why it of the pharmaceutical organization. Obama presidential campaign. should be rejected once again. In the end, House Democrats imposed some In one email, PhRMA consultant Steve He was correct. It was rejected. The additional costs on the industry that by one McMahon calls these four the ‘‘WH-des- ignated folks.’’ He explains to colleagues American people were rejected in favor estimate pushed the cost above $100 billion, of one of the most powerful special in- but the more sweeping policies the firms that Messrs. Grossman, Grisolano and Del wanted to avoid remained out of the legisla- Cecato ‘‘are very close to Axelrod,’’ and that terest lobbies in Washington and it is a tion. Mr. Obama signed the bill in March. He ‘‘they have been put in charge of the cam- shame. had the victory he wanted. paign to pass health reform.’’ Ron Pollack, I suggest the absence of a quorum. whose Families USA was part of the HEN co- The PRESIDING OFFICER (Mr. [From the Wall Street Journal, June 22, 2012] alition, explained to colleagues that ‘‘the MANCHIN). The clerk will call the roll. team that is working with the White House STRASSEL: AXELROD’S OBAMACARE DOLLARS The assistant legislative clerk pro- on health-care reform. . . . [Grossman, ceeded to call the roll. (By Kimberley A. Strassel) Smith, Del Cecato, Grisolano] . . . would Mr. REID. Mr. President, I ask unan- Emails suggest the White House pushed like to get together with us.’’ This would imous consent that the order for the business to the presidential adviser’s former provide ‘‘guidance from the White House quorum call be rescinded. firm to sell the health-care law. about their messaging.’’ The PRESIDING OFFICER. Without Rewind to 2009. The fight over ObamaCare According to White House visitor logs, Mr. is raging, and a few news outlets report that Smith had 28 appointments scheduled be- objection, it is so ordered. something looks ethically rotten in the tween May and August—17 made through Mr. f White House. An outside group funded by in- Messina or his assistant. Mr. Grossman ap- FLOOD INSURANCE REFORM AND dustry is paying the former firm of senior pears in the logs at least 19 times. Messrs. presidential adviser David Axelrod to run ads Del Cecato and Grisolano of AKPD also vis- MODERNIZATION ACT in favor of the bill. That firm, AKPD Mes- ited in the spring and summer, at least twice Mr. REID. Mr. President, I ask unan- sage and Media, still owes Mr. Axelrod with Mr. Axelrod, who was deep in the imous consent that the remaining time money and employs his son. health-care fight. postcloture be yielded back and the The story quickly died, but emails recently A 2009 PhRMA memo also makes clear that Senate adopt the motion to proceed to released by the House Energy and Commerce AKPD had been chosen before PhRMA joined S. 1940. Committee ought to resurrect it. The emails HEN. It’s also clear that some contributors The PRESIDING OFFICER. Is there suggest the White House was intimately in- didn’t like the conflict of interest. When, in volved both in creating this lobby and hiring July 2009, a media outlet prepared to report objection? Mr. Axelrod’s firm—which is as big an eth- AKPD’s hiring, a PhRMA participant said: Without objection, it is so ordered. ical no-no as it gets. ‘‘This is a big problem.’’ Mr. Baldick advises: The motion was agreed to. Mr. Axelrod—who left the White House last ‘‘just say, AKPD is not working for The PRESIDING OFFICER. The year—started AKPD in 1985. The firm earned PhRMA.’’ AKPD and another firm, GMMB, clerk will report the bill by title. millions helping run Barack Obama’s 2008 would handle $12 million in ad business from The assistant legislative clerk read campaign. Mr. Axelrod moved to the White HEN and work for a successor 501(c)4. as follows: House in 2009 and agreed to have AKPD buy A basic rule of White House ethics is to The bill (S. 1940) to amend the National him out for $2 million. But AKPD chose to avoid even the appearance of self-dealing or Flood Insurance Act of 1968, to restore the fi- pay Mr. Axelrod in annual installments— nepotism. If Mr. Axelrod or his West Wing nancial solvency of the flood insurance fund, even as he worked in the West Wing. This chums pushed political business toward Mr. and for other purposes.

VerDate Mar 15 2010 03:12 Jun 26, 2012 Jkt 019060 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\CR\FM\A25JN6.027 S25JNPT1 pwalker on DSK7TPTVN1PROD with SENATE