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

Vol. 144 WASHINGTON, TUESDAY, MAY 12, 1998 No. 59 Senate The Senate met at 9:30 a.m, and was time agreement can be reached with this bill. This is something we should called to order by the President pro the D’Amato bill. do for the defense of our country. The tempore [Mr. THURMOND]. At 11 a.m., under a previous order the American people, I find, when I go Senate will proceed to the consider- around and talk about missile defense, PRAYER ation of the agriculture research con- are shocked to learn that we don’t have The Chaplain, Dr. Lloyd John ference report. The time until 12:10 will a National Missile Defense System in Ogilvie, offered the following prayer: be divided among several Members for place. So this bill is very important, I Lord God, You have given us con- debate on that conference report. Fol- believe. I appreciate the work that has sciences so that the beliefs, values, and lowing that debate, the Senate will been done by my colleague from Mis- truths You have worked into the fiber proceed to the consideration of the Na- sissippi. of our character may be worked out in tional Science Foundation reauthoriza- the specific challenges and decisions of tion bill, again under a short time The next 2 weeks obviously will be this day. Help us to be true to You, agreement. A rollcall vote will occur extremely busy as Members attempt to ourselves, and our patriotism. Give us on passage of that bill, the National complete action on several important sterling, unflinching integrity in all Science Foundation reauthorization, at pieces of legislation. There are a num- matters. Speak to us through our con- approximately 12:15 or so. Therefore ber of conferences that we hope to have sciences. We claim the promise of Members should be aware that the first completed and voted on before the Me- Proverbs 11:3, ‘‘The integrity of the up- vote of today’s session will occur at morial Day recess, including the right will guide them.’’ Give us peace 12:15. Then the Senate will recess after ISTEA II, the highway transportation of soul when our thoughts and plans that vote for the weekly policy cau- bill, the education conference report, are right; conversely, disturb us when cuses. the IRS reform and restructuring con- we drift from what is best. When the Senate reconvenes at 2:15, ference report. We also have a vote al- Thank You for this new day. Show us Senator GRAMM of Texas will be recog- ready agreed to with regard to Russia- each step of the way. Guide us in all we nized to move to recommit the agri- Iran missile technology transfer, which do and say. You are the Potter, we are culture research conference report. is a continuing concern. Progress is not the clay. We want to do Your will with- There will be 1 hour of debate equally being made sufficiently, and I do ex- out delay. Through our Lord and Sav- divided on the motion. At the conclu- pect that there will be a vote on this ior. Amen. sion of that debate, the Senate will before the end of the next week. f proceed to vote on or in relation to the motion. Following the vote, it is hoped There are a number of other very im- RECOGNITION OF THE MAJORITY that a short time agreement can be portant bills now that Members are LEADER reached with respect to the agriculture getting cleared through committees or The PRESIDENT pro tempore. The research conference report. Any of sev- that Members are seeking to have able majority leader, Senator LOTT of eral high-tech bills or other legislative voted on. We will try to schedule as Mississippi, is recognized. or executive items also may be taken many of those as we can. Obviously, we Mr. LOTT. Good morning, Mr. Presi- up today, if they can be cleared. will need the cooperation of all Mem- dent. I did have a good conversation late bers as we try to get through this proc- f on Monday afternoon with Senator ess before the end of the May recess for DASCHLE. I believe we are going to be Memorial Day. SCHEDULE able to clear at least three of those I again emphasize we do have prob- Mr. LOTT. Mr. President, on Monday high-tech bills. All of them are broadly ably three high-tech bills that we have a good deal of work was done and the supported and I believe will have an cleared: we have the agriculture con- predicate was laid for a number of bills overwhelming vote once we get to a ference report, we have the missile de- to be considered this week. We will vote. I won’t list them now, but we will fense bill that Senator COCHRAN has begin the morning with morning busi- make some further announcement on been working on, and the National ness until 10 a.m. I observe that there that later on today. Science Foundation reauthorization are at least a couple of Senators who Finally, as a reminder to all Mem- bill. And we are going to try to clear wish to take advantage of that. bers, a cloture vote will occur on Following morning business, Senator Wednesday on the motion to proceed to some Executive Calendar nominations, too. D’AMATO will be recognized to intro- the missile defense bill. Senator COCH- duce a bill regarding patient care for RAN handled this debate on the floor on So, again, thank you for your co- breast cancer. It is hoped that a short Monday. He has done excellent work on operation. These are all very important

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

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VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4640 CONGRESSIONAL RECORD — SENATE May 12, 1998 bills for the American people and I test a 1,500-kilometer range missile. Mr. DASCHLE addressed the Chair. hope we can continue the good progress What has happened? They have had as- The PRESIDING OFFICER. The that we have made over the last 3 sistance from other countries. Some Democratic leader. weeks. When you look back at what we say it was China who provided the f have been able to get through the Sen- technology and wherewithal to come HEALTH CARE LEGISLATION ate, in terms of education, the NATO up with this new, longer range missile. treaty enlargement, and also last week Some say it was North Korea. Pakistan Mr. DASCHLE. Mr. President, there the IRS reform—if we can have another says it was developed from within with is no one from the Republican side of week and complete the week with the their own technology, their own sci- the aisle on the floor at this moment, DOD Department of Defense authoriza- entists. so I do not want to propound the re- tion bill I think we can feel very good Whatever the reason and however quest until someone is available. But I about what we have accomplished over this came to be, it is alarming, and do want to put our colleagues on notice the last month. now we see India reacting to that new that I would like very much to be able I yield the floor. development by testing a nuclear weap- to propound a unanimous consent re- The PRESIDING OFFICER (Mr. on that is twice as powerful as the quest within the next few minutes that HUTCHINSON). The Senator from Mis- atomic bomb that was used in World would do two things: First, it would sissippi. War II by the United States against ask that Senator D’AMATO be recog- f Japan. nized to offer a bill regarding inpatient The point is, this is a very, very dan- hospital care for breast cancer with a AMERICAN MISSILE PROTECTION gerous situation that we see developing time limit of 2 hours for debate on the ACT in that part of the world, but in other bill, with no amendments or motions in Mr. COCHRAN. Mr. President, let me countries, too. In Iran. We have seen order thereto, and that when all time say, first of all, that I appreciate very demonstrated in Iraq the capacity to is used or yielded back, the Senate pro- much the majority leader calling up almost put a satellite in orbit with a ceed to vote on passage of the D’Amato the missile defense bill on yesterday. missile launch vehicle 10 years ago. bill, and that immediately upon dis- At his authorization and direction, a That surprised the United States. That position of the D’Amato bill, the Sen- cloture motion was filed on the motion surprised our intelligence-gathering ate then proceed to the immediate con- to proceed to consider that bill when agencies. sideration of the Daschle-Kennedy Pa- an objection was raised by the ranking I am hopeful that the Senate will no- tient Protection Act with a time limit Democrat on the Armed Services Com- tice that the time has come for us to of 2 hours for debate, with no amend- mittee and the ranking Democrat, Sen- stop playing politics with missile de- ments or motions in order thereto, and ator LEVIN, on the International Secu- fense and national security and work that when all time is used or yielded rity, Proliferation and Federal Serv- together in a bipartisan way to develop back, the Senate proceed to vote on the ices Subcommittee that I chair. and deploy, as soon as technology per- passage of the bill with all time equal- Last year, we had a series of hearings mits, a national missile defense system ly divided and controlled in the usual looking into the growing proliferation to protect the security of the United form, and that the above occur without problem in the development of weapons States. intervening action or debate. I would We will have that vote on cloture, as of mass destruction and missile sys- ask that those bills begin to be consid- the majority leader pointed out, on tems to deliver those weapons by coun- ered at 11 o’clock. tries that many in our Nation probably Wednesday—cloture on the motion to As I said, Mr. President, I will not weren’t aware were developing the so- proceed to consider the bill, not on the ask unanimous consent at this time phistication in long-range missile sys- bill itself. It will still be open for simply in deference to our colleagues. amendment. It will still be open for de- tems that were being developed. But let me again explain what it is we bate by Senators who want to discuss I think yesterday the announcement are attempting to do here. It is our this issue, but I hope the Senate will in India of the detonation of a nuclear hope this week, in a very limited time- invoke cloture so that we can proceed device as a test confirms once again frame, that we can pass two bills of to consider the bill, to discuss the issue what a dangerous environment we are great concern and importance to this further, particularly in view of these in, in terms of proliferation of capabili- country, first and foremost, a bill that developing events that confirm what a ties, of having nuclear weapons, of hav- many of us have cosponsored dealing dangerous proliferation situation we ing missile systems that can deliver with the need to protect patients in an find ourselves in in the world today, those weapons over a long range. To array of different health circumstances and we are defenseless against long- put that in context yesterday, Paki- that they face. More and more, the range or intercontinental ballistic mis- stan, just a few weeks ago, tested a American people are saying they are siles. new missile that our security analysts victimized, not assisted, by HMOs. and our intelligence agencies weren’t f More and more, they are saying that aware that they had—another example RESERVATION OF LEADER TIME managed care is not working as it is of how we cannot predict with any de- The PRESIDING OFFICER. Under supposed to. More and more, they are gree of certainty or accuracy how soon the previous order, the leadership time saying that we are facing some critical countries are going to develop missile is reserved. decisions that we must make if we are systems, nuclear weapons with the ca- going to ensure that managed care and f pability of delivering those weapons HMOs work right. systems over long ranges. The Paki- MORNING BUSINESS Day after day, our caucus has come stani missile that was tested was a The PRESIDING OFFICER. Under to the Senate floor recognizing the im- 1,500-kilometer range missile—five the previous order, there will now be a portance of calling the attention of times greater in capability than a re- period for the transaction of morning this country to victims of our current port that was filed by the Defense De- business for not to extend beyond the managed care system. These victims partment said that Pakistan had in No- hour of 10 a.m., with Senators per- have lost their health, and in some vember of 1997. Think about that. mitted to speak therein for up to 5 cases, their lives as a result of very We get an annual report from the De- minutes. Under the previous order, the critical decisions being made erro- fense Department using the intel- Senator from Maryland is recognized neously by people sitting at computers ligence capabilities of our CIA, the De- to speak for up to 15 minutes. instead of by doctors and nurses in the fense Intelligence Agency, National Se- Ms. MIKULSKI. I thank the Pre- hospital rooms and clinics of this coun- curity Agency—all of the resources siding Officer. try. that our country has, to put together (The remarks of Ms. MIKULSKI and We have introduced legislation that this report for the Congress. And in No- Mr. DASCHLE pertaining to the intro- would provide protections to patients. vember of 1997 they said that Pakistan duction of S. 2064 are located in today’s It recognizes that in this HMO, man- had in its inventory a 300-kilometer RECORD under ‘‘Statements on Intro- aged care environment we have to do a range missile, and then in April they duced Bills and Joint Resolutions.’’) lot better job of focusing on patients,

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4641 and not on bottom-line calculations islation and pass it today. And if not they face that procedure. I don’t think that are oftentimes used regardless of today, at a time certain. If we cannot there is going to be any opposition to patients needs. The Patient Protection do it for some reason at 11 o’clock this that bill, and there should not be. Act is absolutely essential to that ef- morning, we are prepared to set a The Senator from South Dakota fort. We also recognize that there is a time—perhaps June 15—perhaps right makes a point—and I think we should need, as part of the legislation, to deal after we get back from the Memorial make the point—that in this debate with the problem of premature release Day recess. If we are doing the tobacco there are many other potential injus- of patients when they have bill next week, and we have technology tices, and injustices in the health care mastectomies. bills this week, 4 hours today seems to system. One should consider the fact Senator D’AMATO and Senator FEIN- me to be a reasonable period of time to that most Americans say, first and STEIN and others have made a real ef- debate both of these bills and pass foremost, they want to choose their fort to highlight that particular prob- them. If we cannot do it today, I think own doctors, and many women say, ‘‘I lem. And we are very supportive of it is incumbent upon the Senate to want to be able to make certain during that effort. So we hope we can pass pass this legislation at a time certain— the course of my pregnancy that I have both bills. Let us pass the Patient Pro- to agree to a debate at a time certain. a doctor, an obstetrician who I can be tection Act. Let us pass the Feinstein- I am sure that will happen. confident in, and one who will give me D’Amato mastectomy bill. Let us do it Mr. KENNEDY. Will the Senator advice every time I come in for a en bloc. Let us do it: 2 hours and 2 yield? visit.’’ There are families who worry hours. We are prepared to do it this Mr. DASCHLE. I yield to the Senator that when their children are brought morning. We can get on with that and from Massachusetts. into a doctor’s office, they will be re- also the array of other very important Mr. KENNEDY. Is it the position of ferred to the right specialist, the one technological bills that we will be the Senator that this really is the most best for that child. They don’t want bringing up. I thank very much the important health issue that is before that decision being made by an insur- Senator from Montana for affording me the families of America today? Is it un- ance company. They want it being the opportunity to make my presen- derstood that we have been unable to made by a doctor. tation. As I noted, just as soon as we consider this legislation in the Labor The irony here is that we are saying find a Republican colleague on the and Human Resources Committee, and doctors should make that decision. floor I will pose this unanimous con- so this is the only way and only means These doctors who have been chosen by sent request. by which we can have the kind of de- the insurance companies to be part of Mr. DORGAN. Will the Senator bate that families across this country their plans should be trusted, and their yield? want? Is it the opinion of the Senator judgment should be trusted. What the Mr. DASCHLE. I will be happy to. from South Dakota that this really is a Senator from South Dakota is saying Mr. DORGAN. Mr. President, as I un- compelling issue, perhaps the most im- is, let’s move forward on the Feinstein derstand the minority leader, he is portant health care issue that families bill, on this important mastectomy talking about the desire to bring to the in South Dakota and across this Nation protection; but let’s extend this protec- floor of the Senate for a vote the pa- care most deeply about—to make sure tion to so many other Americans and tients’ bill of rights. As the Senator that doctors and not insurance agents families and women in other cir- knows, we have every day brought to are going to be making decisions on cumstances who are being disadvan- the floor of the Senate a discussion health care? taged by insurance companies and about the specific problems that pa- Mr. DASCHLE. Mr. President, I tell HMOs that are unresponsive to families tients are encountering out in this the Senator from Massachusetts that, and their needs. country who have been hurt by man- just last week, a family from South I think the Senator from South Da- aged care institutions or organizations Dakota told me that if there is one kota puts a challenge to the Senate and find that their health care deci- thing the U.S. Senate should do this today. Will we do one small, but impor- sions are all too frequently not made year—this year—it is pass the Patient tant, part? Or will we take a look at by the doctor in the doctor’s office or Protection Act. It is to deal with the the whole picture and make certain in the hospital but by some insurance problems they are having with man- that we can return home after this ses- accountant someplace 500 or 1,000 miles aged care. And it is to deal with the sion with the kind of legislation that away. And the result has been cata- recognition that there is a growing the American people will support? I strophic for some of the patients in problem out there. In poll after poll hope the Republicans will join us. This this country who have not been able to after poll, the American people are ought to be bipartisan. What is the get the health care they need. As I un- saying: We don’t care what else you do, controversy here when we say patients derstand it, this piece of legislation do this and do it this year. and their families should come first, talks about the ability to get the So I think it is very clear that the in- and protecting the patients when it health care you need from the doctor tensity level is as high as it can be. comes to important medical decisions? you choose, the ability to get to an People care about this issue, and they I thank the Senator from South Da- emergency room when you need one, recognize the problem. People know kota. I hope we can get the assurance and a full range of similar concerns how difficult it is today to face man- from the Republican leadership today that affect patients. aged care organizations that, in large that we will not only consider the Is it the request of the minority lead- measure, are not addressing these prob- Feinstein-D’Amato bill, but also the er that we have an opportunity to vote lems as they should. So the Senator patient protection that Senators on that legislation this morning? And from Massachusetts raises the right DASCHLE and KENNEDY will offer. if not this morning, at least at a time question. Do the American people want Mr. DASCHLE. Mr. President, I certain at some point this year? As I us to address this issue? The answer is thank the Senator from Illinois for his understand it, there are some who not only yes, but yes with an excla- very good statement. He raises an in- don’t ever want us to have an oppor- mation point. teresting point that I failed to men- tunity to deal with this issue, because Mr. DURBIN. Will the Democratic tion. Oftentimes, we talk about this as the insurance industry and some oth- leader yield? a matter simply of urgency and con- ers, who certainly don’t want anybody Mr. DASCHLE. I yield to the Senator cern for victims. Indeed, that is the tampering with the circumstances at from Illinois. greatest concern—the degree to which all, prefer we not vote on this. But the Mr. DURBIN. Mr. President, I thank victims come to us with stories that American people understand we have a the Senator for raising this issue. I they believe call out for attention to serious problem here that needs to be hope that we put it in context. This is this matter. But there are now over a addressed. Is it the intention of the an important procedure that Senators hundred organizations—organizations Senator to get a vote on this today or FEINSTEIN and D’AMATO bring to the of all kinds—our doctors, our nurses, at some specific point in the future? floor. It addresses the issue of mastec- an array of working organizations in Mr. DASCHLE. It is our desire to see tomy. It makes certain that women this country, including education, you if we can find a way to take up this leg- and families have peace of mind when name it—organizations that have come

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4642 CONGRESSIONAL RECORD — SENATE May 12, 1998 forward to say that this isn’t just a The PRESIDING OFFICER. Is there grams and projects, et cetera, many of health issue, this is a worker issue, objection? them that have arguments on both this is a quality of life issue. This is an Mr. D’AMATO. Mr. President, reserv- sides. To say that we are going to give array of organizations that rarely ing the right to object. Mr. President, one 2 hours and the other 2 hours, come together on any issue. Philo- let me simply state that tying these which is so complex, is just absolutely sophically, they go from left to right. two requests together—and I appre- using the procedure to stifle this But the fact is, they care about this ciate the position of the Senate minor- straightforward bill which says we will issue because they know how critical it ity leader—is unacceptable for the ma- give women the right without having is that we solve it this year. jority. Therefore, I will object. to appeal to various boards, et cetera, So, as the Senator said, this should We can have some discussion as to to reconstructive surgery and to know not take very long. Indeed, it is impor- the merits of attempting to tie the two that they are not going to be forced to tant that we get on with moving this together. I know the minority leader leave a hospital before it is the right legislation. has been speaking. I might even sup- time to do so. Ms. MIKULSKI. Will the Senator port the Patients’ Bill of Rights, but to That is what we are talking about yield? tie it together in this way is unaccept- here. So we are forced to object. I am Mr. DASCHLE. I yield to the Senator able. So I am forced to object. sorry that the distinguished leader on from Maryland. The PRESIDING OFFICER. Objec- the other side is using that as a cover Ms. MIKULSKI. Mr. President, I ask tion is heard. for precluding—and by the way, we the Senator from South Dakota, our Several Senators addressed the may have some Members on the Repub- Democratic leader, a question. In all of Chair. lican side, I might want to add, who his research on the bill, has he not The PRESIDING OFFICER. The will seek to amend this, who are out of found that this is a very compelling Democratic leader. line, I believe, and who will hide behind issue for women and for children, that Mr. DASCHLE. Let me just say I am this and do not have the courage to there has essentially been a ‘‘moat’’ very disappointed. We are not tying come down here and to vote up or around access to medical treatment them together in any way other than down. And I would like to see them and, therefore, leaving it to the Senate by procedure. We are simply saying, offer amendments because I have had or legislative bodies to make correc- let’s debate the D’Amato bill for 2 some colleagues—let’s be very candid— tions, one procedure at a time, like hours, and then let’s debate the to say, ‘‘We are going to offer a killer drive-by deliveries, dumping of mastec- Daschle-Kennedy bill for 2 hours. They amendment.’’ both deal with protections for patients. tomy patients? Would it not be better Why? Let me give you the argument They both deal with the need to con- to take down the ‘‘moat’’ around med- on the other side. ‘‘We don’t want man- front the array of problems we are fac- ical treatment and do this in a com- dates.’’ Let me give you another one. ing in managed care today. So I am prehensive way, especially a way that One of my distinguished colleagues very disappointed the majority has it affects the women and children? Has says, ‘‘We shouldn’t have legislation by chosen to take this action, and I hope the Senator found that? body part.’’ Well, it is too bad, he is if we can’t do it today, perhaps we can Mr. DASCHLE. The Senator from right, that we would have to reach this do it on the 15th. So let me ask unani- Maryland is absolutely right. She said time and this place that it demands mous consent that on a date no later it very succinctly. That is, in essence, that. How much longer should the than June 15, both bills be considered what this legislation will do. This isn’t women of America have to wait? How in the order that I have just described. the broad array of health care reforms many years, how many months do we The PRESIDING OFFICER. Is there that we could be addressing. This very really tie it up? And let me say this to narrowly focuses on one of the biggest objection? Mr. D’AMATO. Mr. President, reserv- you: This Senator is going to go for- problems we have in health care deliv- ward. I know that my colleagues on the ery today. I appreciate very much her ing the right to object, again let me say it is one thing to say they are not Democrat side, and there are many of calling attention to that fact. them, feel equally passionate, and we Ms. MIKULSKI. I thank the Demo- being tied together, but that is exactly what is taking place. Let me take the are going to go forward and we are cratic leader. going to have a vote on this amend- f time to point out, if I might, that the legislation that has been crafted with ment. It is a straightforward piece of UNANIMOUS CONSENT REQUEST— the help and consultation of my col- legislation. S. 249 AND S. 1890 league, Senator FEINSTEIN from Cali- I see my colleague, Senator FEIN- Mr. DASCHLE. Mr. President, now fornia, from the beginning is not con- STEIN, is seeking to speak on this, and that we do have a Republican colleague troversial, absolutely not controversial I am going to—— on the floor, let me propound the fol- and is necessary. To take a bill that is Mr. DASCHLE. Mr. President, did the lowing unanimous consent request: so straightforward and tie it up in pro- Senator from New York object? I ask unanimous consent that at 11 cedural knots—and that is what is hap- Mr. D’AMATO. I object. o’clock on Tuesday, May 12, Senator pening here—so that the women of The PRESIDING OFFICER. Objec- D’AMATO be recognized to offer a bill America, because of these procedures tion is heard. regarding inpatient hospital care for today, are being denied health care Mr. D’AMATO. I call for regular breast cancer, with a time limit of 2 that they need, reconstructive surgery, order, Mr. President. hours for debate on the bill, with no drive-by mastectomies, being put on Mr. DASCHLE addressed the Chair. amendments or motions in order there- the streets or being told we are not Mr. D’AMATO. I now call for regular to, that when all time is used or yield- going to pay for more than 24 hours or order with respect to the continued ed back, the Senate proceed to a vote 48 hours or whatever the policy limits time. on passage of the bill, and immediately may be, regardless of the medical ne- upon disposition of the D’Amato bill, cessity, we are not going to pay for re- f the Senate proceed to the immediate constructive surgery because, as one consideration of the Daschle-Kennedy plan said and a doctor told me, ‘‘It CONCLUSION OF MORNING Patients’ Bill of Rights bill with a time doesn’t serve a bodily function so BUSINESS limit of 2 hours for debate, with no therefore we don’t have to have recon- amendments or motions in order there- structive surgery,’’ is absolutely The PRESIDING OFFICER. I would to, and that when all time is used or wrong. remind the Senate of the previous yielded back, the Senate proceed to This is an issue that everyone can order so that we are at the point, past vote on passage of the bill, with all support and should support, and we the point, where morning business is time equally divided and controlled in should not tie it down with legislation closed. the usual form, and that the above by its very nature that is so com- The PRESIDING OFFICER. Under occur without intervening action or de- prehensive as the Patients’ Bill of the previous order, the Senator from bate. Rights that takes in a myriad of pro- New York is recognized.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4643 UNANIMOUS-CONSENT REQUEST— But the point of the matter is that there is one person here who could ob- S. 249 we are linking the two. We are saying ject to, and that is, length of stay Mr. D’AMATO. Mr. President, I ask we are not going to consider whether should be determined by the medical unanimous consent that the Finance women should have that right. Where I necessity of the procedure; and, second, Committee be discharged from further don’t believe there is one Senator here that reconstructive surgery should be a consideration of S. 249 regarding inpa- who feels they should not have, not woman’s right. She should not have to tient care for breast cancer, and there one, why should we link the two, with go to appeal to some board or some in- be 2 hours for debate equally divided one bill 109 pages, which 90 percent of surance plan because ERISA prevents with one relevant amendment in order the Members have not read, have not States from having legislation that to be offered by Senator D’Amato, and studied, have not gone through. Again, would order this. following the disposition of the amend- it is linkage, and therefore I am com- Let me say this. We have had a hear- ment the bill be advanced to third pelled to say that notwithstanding the ing on S. 249, and we have had two reading and a vote occur on its pas- good intents of my friend, it is linkage. votes to attempt to get it. Senator sage, all without intervening action or Mr. DASCHLE addressed the Chair. FEINSTEIN, myself, and others—and I debate. The PRESIDING OFFICER. The Sen- might say our bill has broad, bipar- Mr. DASCHLE addressed the Chair. ator from North Dakota. tisan support. There is not one Member The PRESIDING OFFICER. The Sen- Mr. DASCHLE. Continuing to reserve on the Patients’ Bill of Rights from the ator from North Dakota. the right to object, since my colleague Republican Party. You can say that Mr. DASCHLE. Reserving the right from New York did now object to my you are not linking, you can say you to object, let me just say how dis- counterproposal, I am flabbergasted. I are not blocking, but that is exactly appointed I am that the Senator from am absolutely flabbergasted that the what has happened. The women of New York continues to persist in his Senator from New York would say, America are being denied a right to erroneous conclusion that somehow since we have not seen action on our something that they should have—that these are melded together. I will put bill, we should take up his bill. And we should enact into law, and we forward a new proposal for my col- why are we taking up his bill under should be proud, and all 100 Senators league and friend from New York. I these circumstances? Because the Fi- should come down and vote for this and would propose that we take up the nance Committee has not acted. That sponsor this—because we want the Pa- D’AMATO bill today, that we debate it is the reason. We are going to go tients’ Bill of Rights to be heard at a as he suggests so long as by June 15, or around the Finance Committee to go particular time and we are linking the at any date in June that would be of straight to the floor, and he is saying two. That is exactly what is happening. his choosing, we can take up and de- we shouldn’t go around the Labor Com- I could support various provisions in bate the Patient Protection bill for mittee to go straight to the floor for the Patients’ Bill of Rights—the clin- whatever time it takes. If it is com- the Patient Protection Act. ical trials. I think we should have plex, let’s debate it. If it ought to be So let there not be any confusion them. I want to support them. But to amended, let’s debate it. If the Senator here as to what is going on. Everyone say that we should deny the women of from New York is prepared to give me ought to know this. This is as glaring that opportunity, to say in June we America an opportunity to be heard on as the lights themselves. Our Repub- will take up patient protections with this and to have a vote on this is coun- lican colleagues, for whatever reason, amendments, we will have the debate terproductive; it is wrong. It is a are denying the opportunity to con- on his bill today and my bill in June. I shame that the Senate operates in this sider a Patient Protection Act, today, would make that proposal to the Sen- manner. tomorrow or any other day. And they ator from New York, reserving the But everyone has a right to be heard. are hiding behind the mastectomy bill right to object. Everyone has a right to make their ob- Mr. D’AMATO. I understand that, to do it. jections. I think it is unfortunate. My and let me respond by saying that I Well, let’s not hide behind any legis- friend and colleague from California, wish I could and did have the authority lation. Let’s strip away all the rhet- Senator FEINSTEIN, has been waiting to accept that because I would do it, oric. They do not want to do it. They very patiently. If I might— because I think we should have a full simply do not want to do it. I don’t Several Senators addressed the debate and a full discussion on the Pa- know why they don’t want to do it, Chair. tients’ Bill of Rights. And I think it given that about 80 or 90 percent of the Mr. DASCHLE. Mr. President, I will not be limited, should not be lim- American people are demanding we do think the unanimous-consent request ited to 2 hours. I thank my colleague, it, but they can explain it. is still pending. Reserving the right to the Senate minority leader, for recog- No one should be misled here. The object. nizing the complexity of the bill that problem is not that we are combining The PRESIDING OFFICER. The is, I don’t know how many pages. It is the two bills. I have just released them. Democratic leader. voluminous. And it is important. There isn’t any connection anymore. Mr. DASCHLE. Reserving the right Here it is. I don’t know whether it We will take up the Feinstein-D’Amato to object, let me just say the Senator has even had a hearing. It is 109 pages. bill today and take up the Patient Pro- from New York has said on several oc- It is controversial, to say the least. tection Act in the next couple of casions now that this has not been the And there are many parts of this bill months. Just let us take it up. That is subject of any hearings. The Labor which I would be supporting. There is all we are asking. Committee has dealt with this issue at absolutely no doubt about it. So, Mr. President, I am really as- more than seven hearings, hearings Mrs. FEINSTEIN. Will the Senator tounded at that logic and that ration- that have brought people in from yield? ale. But I don’t think anybody is mis- around the country, talking about this Mr. D’AMATO. However, we are link- led here. They don’t want to take up particular problem and about how seri- ing the two together. By suggesting the patient protection legislation, and ous it is. There has been one meeting that in order to get this straight- I am very disappointed, and I think the in the subcommittee of the Finance forward bill, this legislation that says American people would be as well. Committee on his bill. no more drive-by mastectomies and The PRESIDING OFFICER. The Sen- So let’s talk about hearings. Let’s that women will be guaranteed the ator from New York. talk about the array of people who right to have reconstructive surgery Mr. D’AMATO. Mr. President, let’s have come forth and said, ‘‘Why are where there is a radical mastectomy, it look at this in perspective. I have you waiting? Why aren’t you moving is linking the two together. I think asked staff has there been a hearing ahead with this legislation?’’ I don’t that is unfortunate. I might be willing with respect to S. 1890, a bill that is have an answer to that. Our caucus is to come and join my colleagues and over 100 pages, the complexities of attempting to promote the opportunity battle for a date certain or to fight for which, everyone has to admit, go well for all people to be heard on this issue. hearings at least. I don’t know whether beyond a very straightforward, very The Senator from New York also we have had hearings. I don’t think we limited bill which we believe guaran- made mention of the fact that his bill have. I see Senator KENNEDY here. tees women a right that I don’t think deals with mastectomy, and it is a very

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4644 CONGRESSIONAL RECORD — SENATE May 12, 1998 important contribution. I applaud Sen- As I recall, we introduced this manner that has sought to eliminate ator FEINSTEIN and others for making amendment as a bill on January 30, politics and think about the women of the effort, as they have, to get to this 1997. That was 16 months ago. The Pa- America and the families of America, point. But his legislation is very, very tients’ Bill of Rights, I believe, was in- because we are talking about a disease narrowly focused. troduced on March 31st of this year. Is and procedures that are hurting, harm- He said he supports clinical trials. that not correct? ing the families of America. We want to give him the opportunity Mr. D’AMATO. Would the Sen- Mrs. FEINSTEIN. I would like the to vote for it. He says he supports ac- ator—— Senator from New York to know that I cess to specialists. We want to give him Mrs. FEINSTEIN. My question about am a cosponsor, also, of the Patients’ the opportunity to vote for it. He when we introduced this bill, a bill Bill of Rights Act. I understand the im- wants to protect the information, the that would give a woman and her phy- portance of this bill. I would very much records of patients. Let’s give him and sician the right to determine the welcome floor time to consider this bill others a chance to vote for it. That is length of a hospital stay when she has as well. what our bill does. It goes way beyond a mastectomy, and quite possibly a However, I did indicate in our Demo- simply the right, that a woman surely radical mastectomy. The length of stay cratic caucus that absent that oppor- should have, to be more confident in the hospital would be the decision of tunity, and because women all across about her ability to get the proper her physician, not the HMO; we intro- this Nation are going through some of treatment when in a situation as sen- duced this bill 16 months ago. Correct? the same events that two women who sitive as a mastectomy. But let’s pro- The Patients’ Bill of Rights was intro- brought this to my attention 3 years vide them the protection through clin- duced in March of this year. Is that not ago in California went through, and ical trials. Let’s ensure that they can correct? that is to show up to have a radical see necessary specialists. Let’s ensure Mr. D’AMATO. That is correct. The mastectomy at 7:30 in the morning, and that their records are going to be pro- Senator is correct. We introduced this then to be pushed out on the street at tected. Let’s do it all. Let’s not do half on January 30, 1997. 4:30 that afternoon with drains in a job, let’s do the whole job. That is Mrs. FEINSTEIN. And, am I correct them, the effects of anesthetics still what we are talking about here. in that the Senate Finance Committee upon them, really unable even to So I object. held a hearing on our bill on November walk—is it not true that what we The PRESIDING OFFICER. Objec- 5, 1997? strive to do is make a simple reform tion is heard. Mr. D’AMATO. That is also correct. and say that no woman without the Several Senators addressed the And the Senator testified—the Senator permission of her physician will be sub- Chair. from California came and gave some ject to this kind of treatment ever Mr. D’AMATO. I call for the regular very cohesive and forceful testimony as again in the United States of America? order. to the need for this legislation. Mr. D’AMATO. The Senator from The PRESIDING OFFICER. The Sen- Mrs. FEINSTEIN. Is it not true that California is absolutely correct. ator from New York has the floor. Let me say that we worked long and we have filed this bill to be considered hard on this. We have many of our col- f by the Senate two times and you of- leagues who, because of their commit- WOMEN’S HEALTH AND CANCER fered it in the Finance Committee two ment to deal with this—it is tragic RIGHTS ACT times? On March 16, we filed it as an when it hits a family it has so much of amendment to H.R. 2646, the Parent Mr. D’AMATO. I yield 10 minutes to an impact—said you have to have at and Students Savings Account Plus the Senator from California, Senator least 48 hours. In other words, 72 hours. FEINSTEIN. Act. Is that not correct? And we finally have been working with Mr. D’AMATO. Absolutely. The Sen- The PRESIDING OFFICER. Is there the people in the medical community, ator is absolutely correct. objection? and I must say we built a consensus Mrs. FEINSTEIN. On May 6, we filed Mr. BAUCUS addressed the Chair. where we recognize that we should not it as an amendment to H.R. 2676, the The PRESIDING OFFICER. The Sen- put any time limitation whatsoever. ator from Montana. IRS restructuring bill. Is that not cor- If I might, Mr. President, we have the Mr. D’AMATO. Regular order. I be- rect? Senator from Montana who is waiting lieve under the regular order I control Mr. D’AMATO. That is absolutely to make a statement. Might I propound up to an hour. correct. a unanimous consent request that he The PRESIDING OFFICER. The Sen- Mrs. FEINSTEIN. And on March 31 be permitted to speak for up to 3 or 4 ator is correct. and on February 10 of this year, did my Mr. BAUCUS. Mr. President, I make minutes as if in morning business, and colleague not offer it as an amendment that might we also have an additional a point of order. in the Finance Committee? Mr. D’AMATO. Mr. President, I yield 5 minutes then—we started late—so Mr. D’AMATO. I did. I did. My col- that he could make his statement, and to the Senator from California, for up league is right. We brought it to a vote. to 10 minutes, for a question. then without my losing the right to Mrs. FEINSTEIN. Is it not true that continue and to hold the floor and con- Mr. FORD. Mr. President, take the Senator has been unable to get the charge and give direction to these Sen- tinue our discussion with respect to Finance Committee to move this bill this? ators. to the floor? The PRESIDING OFFICER. The Sen- Mr. KENNEDY. Reserving right to Mr. D’AMATO. Absolutely true. ator from New York has been recog- object, I don’t want to object. I would Again, procedurally this is raised, just nized under the regular order. The Sen- like to have a very brief time to be as an analogy, as is being done here— ator from New York does not control able to respond. I think, as I under- there they raised germaneness, and, the floor. If he seeks to yield time, that stand it, at 11 o’clock under the con- unfortunately, they kept the women of requires a unanimous consent. sent agreement we are going to the ag- Is there objection to yielding time? America from having the opportunity ricultural matter. Mr. D’AMATO. Mr. President, my to have this bill considered at that Mr. D’AMATO. That is why I asked colleague from California has a ques- time. That is correct. for an additional 5 minutes. tion. I would like to yield for a ques- Mrs. FEINSTEIN. Is it not true that Mr. KENNEDY. I would like to see if tion to the Senator from California. the D’Amato-Feinstein mastectomy we could have, say, 15 minutes to be Mrs. FEINSTEIN addressed the bill has 21 cosponsors, including a bi- able to respond to that time. Chair. partisan group of women Senators— Mr. D’AMATO. Unfortunately, I am The PRESIDING OFFICER. The Sen- Senators SNOWE, MOSELEY-BRAUN, not in a position to agree to that. Let ator from New York has a right to HUTCHISON, MIKULSKI, and BOXER? me say this to Senator KENNEDY. Let’s yield for a question. The Senator from Mr. D’AMATO. Absolutely. It is a bi- say that in one-half hour we would California. partisan effort. It has been that way. I yield to the Senator from New York 10 Mrs. FEINSTEIN. Mr. President, I applaud my colleague from California minutes. Is that fine? would like to ask the Senator from for her leadership in this matter. We Mr. KENNEDY. That would be very New York a question. have done this and conducted this in a generous.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4645 Mr. D’AMATO. Could Senator BAU- Mr. President, frankly, I have to Its provisions are included in the Pa- CUS’ remarks be contained in morning share a great level of frustration, and tients’ Bill of Rights. I was an original business without interrupting the de- to be candid, anger at where we find cosponsor of Senator DASCHLE’s legisla- bate for up to 5 minutes? ourselves this morning: unable to move tion, which preceded the legislation au- The PRESIDING OFFICER. Is there forward with the breast cancer legisla- thored by my colleague from New objection? Without objection, it is so tion for which there is broad bipartisan York, that guaranteed breast cancer ordered. support and little controversy. I have patients a minimum length of stay in Mr. BAUCUS. Mr. President, I thank more than simply a public policy con- the hospital following a mastectomy. all Senators very much for accommo- cern about this issue. I have a personal And I worked with the breast cancer dating me. concern in my own family, having gone community—patients and providers— First of all, I hope that the bill to be through my wife’s breast cancer chal- to write and introduce a bill that offered by the Senator from California lenge over the past 2 years. She is would require plans that cover and the Senator from New York will be doing very well. But we had a situation mastectomies to also cover reconstruc- brought up quickly and passed. I think where she remained in the hospital for tive surgery, prostheses and treatment every Member of the Senate does. I one night following surgery. She went for lymphedema, a complication of the very much favor it. At the same time, home with the drains, and the other surgery. In fact, Senator D’AMATO I very strongly believe the Patients’ complications. We were able to do that modified his original bill, which cov- Bill of Rights, the basic protection bill, all right because we don’t have small ered only reconstructive surgery, to we have to pass that. It is very regret- children at home. We had no complica- conform it more closely to mine. We table, frankly, that we are at logger- tions. But I know of other women in share a commitment to this legisla- heads. We need to get that bill passed. my State of South Dakota who have tion. I think we should work that out fairly small children at home who cannot But his proposal does not include soon. Frankly, it is in the interest of take a great amount of time from other provisions that are in our bill the American people we get this passed work, who have no extra help, who and which are equally important to very quickly. But it is not going to be have extra complications, and who breast cancer patients, their families resolved right now. have all sorts of matters that are de- and their doctors. The following pro- By unanimous consent, the remarks bilitating that cause complications. tections, all of which are in the Pa- of Mr. BAUCUS pertaining to ‘‘Montana And 24 hours for many of them is sim- tients’ Bill of Rights remain Pole Vaulters’’ are printed in today’s ply not adequate. We have an oppor- unaddressed in the legislation proposed RECORD under ‘‘Morning Business.’’ tunity here to correct that problem. by Senator D’AMATO: It does not guarantee access to spe- Mr. D’AMATO. Mr. President, might This doesn’t correct everything. cialists—provisions that would allow I ask unanimous consent that Senator I share the support of the Senator an oncologist to act as a cancer pa- JOHNSON from South Dakota be given 3 from California for the Patients’ Bill of tient’s care coordinator, or would allow minutes to speak on this issue? Rights. I am frustrated, as well, that a patient to see an oncologist directly, Mr. DORGAN. Mr. President, reserv- we haven’t made greater progress without first making an unnecessary ing the right to object, my under- there. I hope that before this session is standing is that the order by unani- visit to a so-called ‘‘gatekeeper.’’ over we will in fact deal with the more It does not ensure for a smooth tran- mous consent at 10 o’clock required comprehensive health care reform leg- sition between new and existing doc- that Senator D’AMATO be recognized to islation. tors for breast cancer patients and sur- propound a unanimous consent request; I applaud Senator DASCHLE’s leader- vivors whose employers change plans not that Senator D’AMATO be recog- ship on the Patients’ Bill of Rights leg- or whose plans change providers in the nized between 10 and 11 o’clock. I am islation. But I do not want to make the network. wondering. Am I correct on that? perfect the enemy of the good. What we It does not include access to and cov- Mr. D’AMATO addressed the Chair. have here is a piece of legislation erage of participation in clinical trials, The PRESIDING OFFICER. The which we should be able to pass this which can so often mean the difference order provides for the recognition of very day. between life and death for patients Senator D’AMATO of New York. It is certainly my hope, while we with nowhere else to turn. Mr. D’AMATO. I believe I was going have the continued discussion about a It does not establish the right to an to be recognized, and indeed I am at- more comprehensive approach to man- independent and timely appeal—a crit- tempting to accommodate this. I could aged care and ensuring the rights of all ical feature for those times when cov- speak for this 1 hour. I am attempting patients, that before this session of the erage decisions fall into a grey area. to accommodate the needs of my col- 105th Congress expires—and we are run- It does not create access to prescrip- leagues. That is why I yielded 10 min- ning out of time quickly—that, in fact, tion drugs that are not on the for- utes. I am prepared to yield 10 minutes we get this breast cancer bill to the mulary, if they are medically indicated to Senator KENNEDY. The time is floor and deal with it in an expeditious in the case at hand. clicking off here. fashion. It does not guarantee that emergency Mr. DORGAN. I will not object. But Again, I simply want to applaud the care will be covered, provided a my understanding of the UC was that leadership of the Senators from Cali- layperson believed they were in an the Senator from New York would be fornia and New York on this issue, one emergency. recognized to propound a unanimous that we really should not allow to be With the limited exception for post- consent request at which point the delayed longer than it already has. mastectomy length-of-stay determina- floor would be open. I guess I under- I yield my time. tions, it does not fully restore the doc- stand the Senator from New York in- Mr. D’AMATO addressed the Chair. tor-patient relationship by returning tends to retain the floor until 11 and The PRESIDING OFFICER. The Sen- treatment decisions to the attending simply by consent allow others to ator from New York. physician. speak for a certain amount of time. Mr. D’AMATO. Mr. President, I ask Finally, it does not allow patients to Mr. D’AMATO. Yes. unanimous consent that the time be hold health plans accountable for their Mr. DORGAN. He certainly has that extended until 11:05, because we did not medical decision-making. right. Under the unanimous consent start nearly on time, and I further ask Clearly, the problems are not with agreement he has the right of recogni- unanimous consent that Senator KEN- what is in the bill, but with what is not tion. So I will not object. NEDY be recognized now for up to 10 in the bill. The PRESIDING OFFICER. The Sen- minutes. We are effectively precluded from in- ator from South Dakota. The PRESIDING OFFICER. Without cluding these particular provisions in Mr. JOHNSON. Mr. President, I objection, it is so ordered. the D’Amato proposal. And that is why thank the Senator from New York and Mr. KENNEDY. Mr. President, I yield these matters are linked, Mr. Presi- the Senator from California for their myself 7 minutes. dent. The items contained in our Pa- extraordinary work on this important Mr. President, let me be clear: I am tient Protection Act are critically im- legislation. all in favor of Senator D’AMATO’s bill. portant to breast cancer patients and

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4646 CONGRESSIONAL RECORD — SENATE May 12, 1998 survivors. Our bill has the broad sup- cratic leader. Bring it up in 2 days. But what happens when she is out of port from virtually all the various can- Bring it up in 2 weeks. Bring it up in a hope a couple of years later, and she cer groups and breast cancer groups. month. But give us a time to bring this needs to get into a clinical trial where But, if we move forward on only those up. That is what this issue is all about, she can have access to certain drugs included in the D’Amato proposal, we and that is where we are going, Mr. because nothing else is working? The effectively preclude movement on the President. We will bring this issue up mastectomy bill is narrow, it doesn’t rest of the provisions. time in and time out, again and again. address that. The broader patient One can say, ‘‘Well, we are still mak- We may be foreclosed now, but the rights bill addresses it. ing some progress.’’ I understand, but American people are going to demand I want to speak to the issue of the there is no reason in the world—none, it. Those women who have or have had dates when these various bills were put no reason—that we cannot include breast cancer are going to understand into the hopper, because Senator FEIN- these particular provisions for women it and demand it as well. STEIN made a good point on that. How- today—none, make no mistake about I yield the remaining time to the ever, Senator KENNEDY had a bill that it. Senator from California. was offered before the drive-through We have had eight hearings on the I thank the Senator from New York mastectomy bill. Others had bills that issues relating to the Patients’ Bill of for granting the time. were offered before as well. We don’t Rights. I introduced the original legis- Mrs. BOXER. Mr. President, how need to have this argument which pits lation on this issue more than a year much time remains? one against the other. We should be ago—over a year ago. The President’s The PRESIDING OFFICER. Four able to pass this bill banning drive- advisory commission, which included minutes 15 seconds. through mastectomies, and allow it to among its members representation Mrs. BOXER. Mr. President, I say to be amended to take up these broader from the business community and in- my colleague, I will reserve 2 minutes issues, so that if someone has chest surance industry, reported unani- for him. pains and goes to the emergency room, mously last November about what Sometimes we set up false fights, and they are not going to be told by their ought to be included in a patients’ bill it is a real false fight between those HMO that they can’t qualify for a pay- of rights. We have incorporated their who want to ban drive-through ment because, guess what, they didn’t recommendations in our bill. They are mastectomies, which I would guess is actually die and have a heart attack, needed today by women across this every single Senator in this Chamber, they actually lived. But it was a pru- country. and those who want to go even further dent person who made that decision to All we are asking is for the oppor- and grant patients protections across walk into that emergency room. Why tunity to have the Senate debate and the board for breast cancer patients, should they be penalized? go on record with regard to these kinds prostate cancer patients, children, the I am very hopeful we will pass this of protections. But we are foreclosed elderly, anyone who gets sick. There is drive-through mastectomy bill, but from acting today. We are denied doing no fight. Why are we having a fight? also a broader Patients’ Bill of Rights it. We cannot even get a reasonable pe- We are having a fight because, as the for breast cancer patients, for prostate riod of time. The Republican leadership Senator from Massachusetts has said, cancer patients, for Alzheimer’s pa- is sitting somewhere in this building. we are unable to make this a broader tients, for all the patients, and let’s They could have listened to the ex- bill. not set up a false argument here. We change that was done by the Demo- I am very proud to be a sponsor of can do both. Somebody once said you cratic leader and the Senator from New the D’Amato-Feinstein bill, and I am should be able to walk and chew gum York. They know what is going on on going to be very excited when this bill at the same time. Well, we should be the floor of the U.S. Senate. They can becomes law, and it will become law. able to do this very narrow bill and just come out here and say, ‘‘All right, We need to do more, and there is no then debate a broader bill and give all you got it, you are going to have an op- reason why the leadership of the Sen- of our patients the protection they so portunity to debate this issue; we ate won’t give us that opportunity, ex- richly deserve. I yield the remaining time to Senator won’t have a time limitation, call the cept that there are many special inter- KENNEDY. roll and let’s have a debate on what is ests who don’t want us to do more, who The PRESIDING OFFICER. The time the No. 1 issue before American fami- are pocketing—into deep pockets— of the Senator has expired. lies.’’ But, no, we are precluded from profits on a HMO system that short- Mr. D’AMATO. Mr. President, I ask that. changes patients, and that is wrong. unanimous consent that my colleague You don’t have to be around here a I was visited by a man named Harry from California, Senator FEINSTEIN, be great deal of time to understand what Christie. I have told his story on the recognized for 5 minutes. is going on. We are effectively excluded Senate floor before. His daughter was The PRESIDING OFFICER. The Sen- because of the power of the insurance diagnosed with a rare tumor in her kid- ator from California. industry. Do you hear that? We are ex- ney. She was 9 years old. There were Mrs. FEINSTEIN. I thank the Sen- cluded from having an opportunity to two doctors who had experience oper- ator from New York. debate this because of the power of the ating on that type of tumor. His HMO I must say that I think what is hap- insurance industry. That is what is said, ‘‘That’s too bad, you have to go pening here is unfortunate. I think going on here. That is the issue this with a general surgeon.’’ what we are seeing overwhelmingly all morning on the floor of the U.S. Sen- He said, ‘‘This is my only child.’’ across the United States is a state of ate. And they said, ‘‘You’re out of luck.’’ medical care and health insurance in The industry does not want to pro- Fortunately, Mr. Christie was able to this country that is becoming much vide patients with the protections to come up with the $50,000 he needed, and more oriented toward business and which they are entitled and have paid he saved his daughter’s life. Six years much less oriented toward medicine. for, and their allies in the Senate are later, she is alive and, yes, the HMO And this is prompting, I think, all holding this up, Mr. President, by was fined a hefty sum by the State of across this land a terrible situation for using parliamentary techniques to California. If Mr. Christie had listened physicians and for patients. deny us the chance to consider this leg- to the HMO, he might not have his What prompted me to introduce this islation. We cannot get a report out of daughter today. bill was two California women who our Labor and Human Resources Com- All the Senator from Massachusetts wrote to me. I want to read them to mittee. We cannot take it up on the and the Democratic leader are saying you and enter their full statements in floor of the U.S. Senate. It is time for is we love this mastectomy bill, we the RECORD. action, and we are denied an oppor- want to help you get this bill through, One was from a woman in Newark, tunity, not just today, not just tomor- but help us, help us do more. We can CA. And she wrote—and this was al- row, not just June, but anytime what- stop a woman from having to go most 21⁄2 years ago—that she had a soever—whatsoever. through a horrific, outrageous, de- modified radical mastectomy as an We are asking the Republican leader- meaning, dangerous drive-through outpatient at the Fremont Kaiser out- ship to give us a time. Call the Demo- mastectomy, and we will with this bill. patient clinic. She was operated on at

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4647 11:30 in the morning and was released bill. We did have a hearing. We have ilized country in the world has mastec- at 4:30 that afternoon, with no attempt tried to get the job done before, but tomy as an outpatient procedure.’’ made to see if she could even walk to hopefully it will get done this morning. These are but two examples of what, the bathroom. She was 60 years old. As an original cosponsor of S. 249, the unfortunately, is symptomatic of a And the discovery of cancer and the Women’s Health and Cancer Rights growing trend and a national night- subsequent surgery were extremely Act, I am pleased to sponsor the mare—insurance plans interfering with draining both emotionally and psycho- amendment on mastectomy hospital professional medical judgment and ar- logically. length of stay that Senator D’AMATO is bitrarily reducing care without a med- That is one case. Same day. Let me urging the Senate to consider. It is ical basis. read you about another case. time to pass it. Premature discharges for mastec- My mastectomy and lymph node removal Senator D’AMATO and I introduced tomy, with insurance plans strong- took place at 7:30 a.m., November 13. I was this amendment as a bill on January arming physicians to send women released at 2:30 p.m. that same day. I re- 30, 1997, 16 months ago. The Senate Fi- home, are one glaring example of the ceived notice, the day before surgery, from nance Committee held a hearing on the growing torrent of abuses faced by pa- my doctor that mastectomy was an out- bill, S. 249, on November 5, 1997. We tients and physicians who have to patient procedure at Kaiser and I’d be re- have filed this as an amendment, to be ‘‘battle’’ with their HMOs to get cov- leased the same day. Shocked by this news, considered by the Senate, three times: erage of the care that physicians be- I told my surgeon of my previous complica- lieve is medically necessary. tions with anesthesia and the fact that I On March 16, we filed it as an amend- ment to H.R. 2646, the Parent and Stu- Increasingly, insurance companies have a cervical spine condition, which adds are reducing inpatient hospital cov- an additional consideration for any surgery. dent Savings Account PLUS Act. On May 6, we filed it as an amend- erage and pressuring physicians to dis- Then she goes on and she says: ment to H. R. 2676, the IRS restruc- charge patients who have had While in a groggy, postoperative daze, turing bill. mastectomies. This is beyond the pale. swimming in pain and nausea, I was given It is unconscionable. some perfunctory instructions on how to On March 31 and on February 10 of this year, Senator D’AMATO offered it The Wall Street Journal on Novem- empty the two bloody drains attached to my ber 6, 1996, reported that ‘‘some health body. I was told to dress myself and go home. as an amendment in the Finance Com- My doctor’s written chart instructions for a mittee. maintenance organizations are cre- room assignment, if I developed acute nau- In sum, we have made numerous ef- ating an uproar by ordering that sea or pain, were ignored by the nursing forts to get the Senate to consider this mastectomies be performed on an out- staff. bill. patient basis. At a growing number of This is the problem we are trying to The D’Amato-Feinstein mastectomy HMOs, surgeons must document ‘med- stop right here and now. I frankly am bill has 21 cosponsors, including a bi- ical necessity’ to justify even a one- sorry that the bill isn’t broader. But partisan group of women Senators: night hospital admission.’’ this is something whose cost is small— Senators SNOWE, MOSELEY-BRAUN, KAY A July 7, 1997 study by the Con- $100 million. We know it can be accom- BAILEY HUTCHISON, MIKULSKI and necticut Office of Health Care Access found the average hospital length of modated. We know we can get the job BOXER. done. This amendment has four important stay for breast cancer patients under- This bill is simple. It requires every provisions: For treatment of breast going mastectomies decreased from insurance plan in the United States of cancer: three days in 1991 and 1993 to two days in 1994 and 1995. This study said, ‘‘The America to cover the hospital length of 1. It requires insurance plans to cover the percentage of mastectomy patients dis- stay determined by the physician to be hospital length of stay determined by the charged after one-day stays grew about medically necessary. It does not pre- physician to be medically necessary. Impor- 700 percent from 1991 to 1996.’’ scribe a fixed number of days. It does tantly, our bill does not prescribe a fixed number of days or set a minimum. It leaves In the last ten years, the length of not set a minimum. It leaves the the length of hospital stay up to the treating overnight hospital stays for length of the hospital stay for the mas- physician. mastectomies has declined from 4 to 6 tectomy up to the treating physician. 2. It requires health insurance plans to days to 2 to 3 days to, in some cases, Secondly, it requires health insur- cover breast reconstruction following a mas- ‘‘no days.’’ The average cost of one day ance plans to cover breast reconstruc- tectomy. in a community hospital in 1995 nation- tion following a mastectomy. 3. It requires insurance plans to cover breast prostheses and complications of mas- wide was $968.00. In California, in 1997, Thirdly, it requires insurance plans the average cost for one day was to cover breast prostheses and com- tectomy, including lymphodemas. For treat- ment of all cancers: $1,329.77. When insurance plans refuse plications of mastectomy, including 4. It prohibits insurance plans from finan- to cover a hospital stay, most Califor- lymphedema. cially penalizing or rewarding a physician nians have difficulty coughing up And, finally, it prohibits insurance for providing medically necessary care or for $1,300.00. They are forced to go home. plans from financially penalizing or re- referring a patient for a second opinion In 1997, over 180,000 women (or one in warding a physician for providing Let me share with you two firsthand every 8 American women) were diag- medically necessary care or for refer- experiences, two California women de- nosed with invasive breast cancer and ring a patient for a second opinion. scribing their treatment by insurance 44,000 women died from breast cancer. This is a simple bill. It is a direct companies in having a mastectomy. Only lung cancer causes more cancer bill. It is going to directly benefit the Nancy Couchot, age 60, of Newark, deaths in American women. 2.6 million lives of tens of thousands of women. I California, wrote me that she had a American women are living with breast regret that it isn’t more comprehen- modified radical mastectomy on No- cancer today. sive. But we know it is doable, we vember 4, 1996, at 11:30 a.m. and was re- In my state, this year, 19,399 women know what it does, and we know leased by 4:30 p.m. She could not walk will be diagnosed with breast cancer women will immediately be better off and the hospital staff did not help her and 4,585 will die. The San Francisco because of it. ‘‘even walk to the bathroom.’’ She Bay Area has some of the highest rates So I am very proud to stand here says, ‘‘Any woman, under these cir- of breast cancer in the world. Accord- with my colleague from New York and cumstances, should be able to opt for ing to the Northern California Cancer with others in the Senate. The great an overnight stay to receive profes- Center, San Francisco’s 9-county area’s bulk of women Senators are supporting sional help and strong pain relief.’’ rate of breast cancer in 1994 was 50 per- this. This is tangible; it is doable. We Victoria Berck, of Los Angeles, wrote cent higher than most European coun- believe it can become law quickly. And that she had a mastectomy and lymph tries and 5 times higher than Japan. In we say, let us seize the moment and let node removal at 7:30 a.m. on November September 1997, the Northern Cali- us accomplish at least this for women 13, 1996, and was released from the hos- fornia Cancer Center gave us some of America. pital 7 hours later, at 2:30 p.m. Ms. mixed news: ‘‘The good news is we’re So I thank my colleague from New Berck was given instructions on how to seeing the rates go down. The bad news York for his authorship. I was very empty two drains attached to her body is we don’t know why,’’ said Angela proud to be an original sponsor on this and sent home. She concludes, ‘‘No civ- Witt

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4648 CONGRESSIONAL RECORD — SENATE May 12, 1998 Prehn. But officials there say, the bot- Our amendment today tries to re- notice, the day before surgery, from my doc- tom line is that incidence rates are store professional medical decision- tor that mastectomy was an outpatient pro- still higher than national rates. making to medical doctors, those cedure at Kaiser and I’d be released the same After a mastectomy, patients must day. Shocked by this news, I told my surgeon whom we trust to take care of us. It of my previous complications with anes- cope with pain from the surgery, with should not take an act of Congress to thesia and the fact that I have a cervical drainage tubes and with psychological guarantee good health care, but unfor- spine condition, which adds an additional loss—the trauma of an amputation. tunately that is where we are today. As consideration for any surgery. The pleasant These patients need medical care from the National Breast Cancer Coalition doctor assured me that I’d be admitted, for trained professionals, medical care wrote us on March 12, ’’. . . until guar- the night, if I experienced excessive pain or that they cannot provide themselves at anteed access to quality health care nausea. This was noted in my chart. In the recovery room and the holding area, home. coverage and service is available for all A woman fighting for her life and her I felt like a wounded soldier in a hospital women and their families, there are tent during the Civil War. I was surrounded dignity should not also be saddled with some very serious patient concerns by moaning patients and placed directly next a battle with her health insurance that must be met. Without meaningful to a screaming infant. When I finally found plan. A physician trying to provide health care reform, market forces pro- a voice, I shouted, ‘‘Get me out of here!’’ A medically necessary care pel the changes in the health care sys- nurse flitted by, shot me a disapproving As the National Breast Cancer Coali- tem and women are at risk of being glance, and commented, ‘‘Some folks just tion wrote me on March 12, 1998: ‘‘The don’t know when to be grateful.’’ This was forced to pay the price by having inap- the ultimate humiliation. NBCC applauds this effort and believes propriate limits placed on their access this compromise will put an end to the While in a groggy, postoperative daze, to quality health care.’’ swimming in pain and nausea, I was given dangerous health insurance practices This amendment is an important pro- some perfunctory instructions on how to that allow cost and not medical evi- tection for millions of Americans who empty the two bloody drains attached to my dence to determine when a woman face the fear, the reality and the costs body. I was told to dress myself and go home. leaves a hospital after breast cancer of cancer every day. When any cancer My doctor’s written chart instructions for a surgery.’’ room assignment, if I developed acute nau- strikes, it is not just the victim who Insurance plans also refuse to cover sea or pain, were ignored by the nursing breast reconstruction and breast pros- suffers. It becomes a family matter. staff. Obviously, the reassurance had been Today I say, enough is enough. It is theses. Our bill requires coverage. given to placate me at the time of my discus- Joseph Aita, Executive Vice Presi- time for this Senate, for this Congress sion with the doctor but everyone knew an dent and Medical Director of Life- to send a strong message to insurance overnight stay was against Kaiser hospital rules. Everyone knew, except me. I had no Guard, was quoted in the San Jose, companies that we must put care back into health care. Medical decisions time to mourn the loss of my breast or re- California, Mercury News, as saying gain a sense of composure. ‘‘Looking normal is not medically nec- must be made by medical professionals, This experience was especially shocking essary.’’ not anonymous insurance clerks. because four years previously, I had under- Let me contradict Mr. Aita. Looking I ask unanimous consent to have gone a hysterectomy and received excellent normal is medically necessary. Breast items I referred to previously printed treatment and a four-night stay at the very reconstruction is important to recov- in the RECORD. same Kaiser facility. We women can allow ourselves to be dis- ery. According to Dr. Ronald Iverson, a There being no objection, the mate- rial was ordered to be printed in the counted or we can demand more from the Stanford University surgeon, ‘‘Breast HMOs. No civilized country in the world has reconstruction is a reconstructive and RECORD, as follows: mastectomy as an outpatient procedure. not a cosmetic procedure.’’ NEWARK, CA, NOVEMBER 16, 1996. VICTORIA BERCK. He cites a study which found that 84 Senator FEINSTEIN. Mrs. FEINSTEIN. I yield the floor. percent of plastic surgeons reported up Senator BOXER. Mr. D’AMATO. Mr. President, I ask to 10 patients each who were denied in- I recently called your office to express my anger at having been forced on Nov. 4 to unanimous consent that the Senator surance coverage for reconstruction of have a modified radical mastectomy as an from Maine, Senator SNOWE, be recog- the removed breast. This could mean outpatient at the Fremont Kaiser Outpatient nized to speak for up to 5 minutes. 40,000 cases per year. Clinic. I was operated on at 11:30 am and was The PRESIDING OFFICER. The Sen- Commendably, my state has enacted released by 4:30 with no attempt made to see ator from Maine is recognized. a law requiring coverage of breast re- if I could even walk to the bathroom. Ms. SNOWE. Thank you. construction after a mastectomy. We I am 60 years old and the discovery of can- Mr. President, I thank Senator need a national standard, covering all cer and the subsequent surgery was ex- D’AMATO for yielding me such time. I insurance policies. Let’s follow Califor- tremely draining both emotionally and psy- want to applaud him for his leadership nia’s need. chologically. I feel that Kaiser completely on this very important issue for women Finally, our amendment prohibits in- disregarded these feelings, along with my fear of coming home so soon with no profes- in America. And I thank my colleague, surance plans from including financial sional help. We received a call from Kaiser Senator FEINSTEIN, for her leadership or other incentives to influence the the following morning but visit by a home as well and commitment that she has care a doctor’s provides, similar to a health nurse. demonstrated on this issue. law passed by the California legislature Any woman, under these circumstances, Mr. President, I regret that we have last year. Many physicians have com- should be able to opt for an overnight stay to reached a point here where we cannot plained that insurance plans include fi- receive professional help and strong pain re- pass one bill because it is being held nancial bonuses or other incentives for lief. hostage to another. No one disagrees cutting patient visits or for not refer- I am interested in your view of this issue. with the Senator from Massachusetts Contact me if you want further details. ring patients to specialists. Our bill NANCY COUCHOT. in terms of the importance of some of bans financial incentives linked to how Sorry I am still wobbly writing. the issues that he has raised with re- a doctor provides care. Our intent is to spect to a Patients’ bill of rights. But restore medical decision-making to [From the Los Angeles Times, Nov. 21, 1996] this legislation should not be held hos- health care. OUTPATIENT MASTECTOMY SURGERY tage to that legislation. For example, a California physician My thanks to Ellen Goodman for ‘‘The We all know that there are many wrote me, ‘‘Financial incentives under Latest HMO Outrage: Drive-Thru Mastec- questions with respect to the approach managed care plans often remove ac- tomy’’ (Commentary, Nov. 18). Last week I that he has taken—relevant questions, cess to pediatric specialty care.’’ A became an uninformed victim of this inhu- understandable concerns—that should June 1995 report in the Journal of the mane practice at Kaiser-Permanente, Los be appropriately discussed and explored National Cancer Institute cited the Angeles. in the committee process and then ulti- suit filed by the husband of a 34-year I want to acquaint women with my first- mately here on the floor. But this old California woman who died from hand experience of this degradation and urge should not hold up this particular bill. my fellow HMO patients to contact their colon cancer, claiming that HMO in- Washington legislators. And Senator D’AMATO is absolutely centives encouraged her physicians not My mastectomy and lymph node removal correct, we should move forward, be- to order additional tests that could took place at 7:30 a.m., Nov. 13. I was re- cause this has strong bipartisan sup- have saved her life. leased at 2:30 p.m. that same day. I received port.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4649 There is not a Senator on the floor encouraged outpatient masectomies. Alaskan women are particularly vul- who would not support this legislation. Therefore, he called on Congress in nerable to this disease. We have the So the women of America should not be January of 1997 to pass this legislation. second highest rate of breast cancer in held hostage because of internal divi- The PRESIDING OFFICER. The time the nation: 1 in 7 Alaska women will sions, because of parliamentary maneu- of the Senator has expired. get breast cancer and tragically it is vers, because of legislative gridlock. Ms. SNOWE. I thank Senator the Number One cause of death among This legislation has the support of D’AMATO for his leadership. I urge the Native Alaskan women. Democrats as well as Republicans. We Senate to move this legislation for- Mr. President, these tragic Alaska have 180,000 women every year who are ward. We will have another day to raise deaths are not inevitable. Health ex- diagnosed with breast cancer. One in the issues raised by the Senator from perts agree that the best hope for low- eight women in their lifetime will be Massachusetts. ering the death rate is early detection detected with breast cancer. We have Mr. D’AMATO. Mr. President, I ask and treatment. It is estimated that now discovered that, in many in- unanimous consent that the Senator breast cancer deaths can be reduced by stances, mastectomies are being per- from Alaska be recognized for 2 min- 30 percent if all women avail them- formed on an outpatient basis, and we utes. selves of regular clinical breast exam- need to take action to prevent that. The PRESIDING OFFICER. The Sen- ination and mammography. Mastectomies are very complicated ator from Alaska is recognized. But for many Alaska women, espe- surgical procedures. Mr. MURKOWSKI. Let me commend cially native women living in one of There is no way that that is a deci- the chairman on his efforts to bring our 230 remote villages, regular screen- sion that should be made by a bureau- this to the floor. This is the second or ing and early detection are often hope- crat; but rather, the length of a wom- third time he has done it. I am cer- less dreams. an’s stay in a hospital, how that proce- tainly pleased to be a cosponsor of the For more than 20 years, my wife dure will be handled, should be deter- Women’s Health and Cancer Rights Nancy has recognized this problem and mined by her as well as her doctor. Act. tried to do something about it. In 1974, Those are the only two individuals who In our State of Alaska, we have an ef- she and a group of Fairbanks’ women created the Breast Cancer Detection ought to be making that decision. It fort relative to awareness being put on Center, for the purpose of offering should not be a bureaucrat’s bottom by the Breast Cancer Detection Center mammographies to women in remote line. of Alaska, which has provided 25,000 areas of Alaska—regardless of a wom- We have found time and time again women in 81 villages throughout the an’s ability to pay. women who have had to endure this State an opportunity for free mammo- procedure on an outpatient basis. The Now, the Center uses a small port- grams. This has been done not with able mammography unit which can be physical scars left by mastectomy, government support but with private which can be complicated and difficult flown to remote areas of Alaska, offer- support. We have raised about $830,000 ing women in the most rural of areas to care for, often require supervision. through a series of fishing tournaments easy access to mammographies at no Women prematurely released may not each year, which some Senators have cost. Additionally, the Center uses a have the information they need, let been a party to. 43-foot-long, 14-foot-high and 26,000- alone the care. And dangerous com- Mr. President, I think that the sig- pound mobile mammography van to plications have arisen hours after the nificance of this bill, which means so travel through rural areas of Alaska. operation. And all of this is occurring much to so many, is that it would put The van makes regular trips, usually within the context of a traumatic cir- an end to the ‘‘drive-through’’ by river barge, to remote areas in Inte- cumstance, and that is having a mas- mastectomies, as we know them today. rior Alaska such as Tanana. tectomy. We want to make sure that Many of my colleagues have already Julie Roberts, a 42-year-old woman of this decision is made appropriately spoken on this issue. The bill ensures Tanana, who receives regular within the confines of medical super- that mastectomy patients would have mammographies from the mobile mam- vision and medical providers. access to reconstruction surgery. mography van, knows the importance We have also found that breast recon- Scores of women have been denied this of early screening: structive surgery is considered cos- procedure because insurers have There’s a lot of cancer here (in Tanana)— metic surgery. Well, it is not. Forty- deemed this procedure to be ‘‘cos- a lot of cancer. That’s why it’s important to three percent of women who want to metic.’’ Far too often, breast cancer have the mobile van here . . . I know that if undergo breast reconstructive surgery victims who believe they have ade- I get checked, I can catch it early and can cannot because it is deemed cosmetic. quate health coverage have become probably save my life. I have three children And that is wrong. Breast reconstruc- horrified when they learn that recon- and I want to see my grandchildren. tive surgery is designed to restore a struction is not covered. I am proud to say that the Fairbanks woman’s wholeness. Fortunately, my In my State of Alaska, of the 324 Center now serves about 2,200 women a State has passed legislation to guard mastectomies and lumpectomies per- year and has provided screenings to against that and to require health in- formed in Alaska in 1996, reconstruc- more than 25,000 Alaska women in 81 surance companies to consider it as tion only occurred on 11 of the pa- villages throughout the state. To help breast reconstructive surgery. But un- tients. That means that only 3.4 per- fund the efforts of the Fairbanks Cen- fortunately for those who are employed cent of the women who have a breast ter, each year Nancy and I sponsor a by those who are self-insured, they do removed have reconstructive surgery, fishing tournament to raise money for not receive this kind of coverage. compared to the national average of 23 the operation of the van and mobile That is why this legislation that is percent. mammography unit. After just three offered by Senator D’AMATO is so es- The reason is cost, Mr. President. years, donations from the tournament sential. We cannot allow women to And if we look at one of the physicians have totalled $830,000. have to endure this kind of decision- in my State, Dr. Troxel, of Providence Mr. President, Nancy and I are com- making under the most arduous cir- Hospital in Anchorage, who states: mitted to raising more funds for this cumstances because of the indecision Women who are not able to receive recon- important program so that every and the difficulties that have arisen structive surgery suffer from depression, a women in Alaska can benefit from the here. sense of loss, and need more cancer survivor advances of modern technology and re- This legislation had a hearing back counseling. . . .Additionally, reconstructive duce their risk of facing this killer dis- in November of 1997 before the Senate surgery can be preventive medicine—women ease. Finance Committee. We are entitled to who don’t have reconstructive surgery often The importance of mammography get this legislation through the legisla- develop back problems and other difficulties. and screening cannot be stressed tive process. In fact, the President, Mr. President, one out of nine Amer- enough—however, there has long been during his State of the Union Address ican women will suffer the tragedy of a tragic result of the disease that Con- in January of 1997, had a physician in breast cancer. It is today the leading gress has either ignored or failed to the gallery who drew attention to the cause of death for women between the recognize—and that is the so-called need to change the guidelines that had ages of 35 to 54. ‘‘drive-through’’ mastectomy.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4650 CONGRESSIONAL RECORD — SENATE May 12, 1998 Currently victims of breast cancer surgery can be preventative medicine— time essential to healing—if a woman who receive mastectomies are being women who don’t have reconstructive sur- needs to be supported as she decides forced to get out of their surgery bed gery often develop back problems and other what to do for her breast cancer, I say and vacate the hospital only hours difficulties. give them all the time they need! after their surgery. The reason? Be- Mr. President, insurance companies I rise to support Senator D’AMATO’S cause far too often it is the practice of commonly provide reconstructive sur- bill today. We need to support our doc- insurance companies to treat the pro- gery for other types of cancers that tors and our women and their families. cedure of a mastectomy as merely an alter or disfigure the surface of the Mr. D’AMATO. Mr. President, I be- ‘‘out-patient service.’’ skin—such as melanomas and all skin lieve my colleague from California has Here’s the horror that many insur- cancers. a question. ance companies cause: Here is why federal legislation is Mrs. FEINSTEIN. Mr. President, I Nancy Couchot, a 60-year-old woman needed: Thirty-four states, including have a question for the author, the had a radical mastectomy at 11:30 a.m. Alaska have no state law requiring Senator from New York. I believe this She was released from the hospital breast reconstruction after surgery. bill has strong support and a low cost. only hours later at 4:30 p.m.—even And in addition, 70 million Americans Its cause is just and correct, and it though she was not able to walk or use receive health benefits through feder- would be passed by this body over- the rest room without assistance. ally regulated self-funded ERISA plans whelmingly. When might we expect a Victoria Berck, had a mastectomy which are not covered by state insur- vote on this bill? and lymph node removal at 7:30 a.m. ance requirements. Mr. D’AMATO. Mr. President, I am and was released at 2:30 p.m. She was These issues are not partisan issues. glad my colleague raised that question. given instructions on how to empty We may have our differences regarding Let me say this: It is disingenuous to two drains attached to her body and managing and financing health reform, say that the women of America are sent home. Ms. Berck concludes, ‘‘No but I think we all endorse accessible being denied proper health care here civilized country in the world has a and affordable health care that pre- when something so basic and elemen- mastectomy as an out-patient service.’’ serves patient choice and physician dis- tary is being tied up by procedures. Mr. President that is why I am proud cretion. Cancer does not look to see the That is exactly what is taking place. to co-sponsor of S. 249, the Women’s politics of its victims. This legislation would stop the kind of Health and Cancer Rights Act. This bill Mr. President, I urge my colleagues abuse we see taking place every day. I would put an end to the drive-through to support this important legislation. have women calling and saying they mastectomies. Mr. FAIRCLOTH. Mr. President, I are being denied reconstructive sur- Specifically, the Act will require rise to support the efforts of my good gery, being denied the kind of health health insurance companies to allow friend Senator D’AMATO in his efforts care that everybody agrees on. We have physicians to determine the length of a to assure that women who need surgery found a methodology of paying for this, mastectomy patient’s hospital stay ac- for breast cancer will be able to do so and it is not right to tie it to some- cording to medical necessity. In other in the hospital if that’s what they de- thing so comprehensive and say, ‘‘un- words, the bill makes it illegal to pun- sire. less we get this one, we are not going ish a doctor for following good medical I’m disturbed by the recent trend to get the other.’’ judgment and sound medical treat- that takes choice away from patients The women of America are being de- ment. and their doctors in the name of cost nied this. I intend to hold hostage, Another important provision of this savings. with my colleagues, important legisla- bill ensures that mastectomy patients There are some things we just can’t tion that moves through until we get a will have access to reconstructive sur- sacrifice. Patient’s rights to seek care vote on this—whether it is on a defense gery. Scores of women have been de- from specialty doctors and have access bill, a tobacco bill, appropriations nied reconstructive surgery following to cherished healers is a basic right we bills. When we come down to the floor mastectomies because insurers have need to protect. and— deemed the procedure to be ‘‘cosmetic’’ Breast cancer is a traumatic enough The PRESIDING OFFICER. The time and, therefore, not medically nec- experience for a woman and her family of the Senator has expired. essary. to suffer through. These families need Mr. D’AMATO. I ask unanimous con- Mr. President, far too often breast our help in gaining as much support sent for an additional 5 minutes. cancer victims, who believe that they from our medical care system as they The PRESIDING OFFICER (Mr. ROB- have adequate health care coverage, can get to bring them through this ter- ERTS). Is there objection? become horrified when the learn that rible time in their lives. Mr. HARKIN. Reserving the right to reconstruction is not covered in their This bill is simple. It simply guaran- object, Mr. President. By unanimous health plan. tees a woman’s right to a proper length consent, yesterday, we were supposed In Alaska, the problem is even more of time in the hospital following her to come up with the research bill at 11 tragic. Of the 324 mastectomies and surgery. It guarantees the right to o’clock. We are up against kind of a lumpectomies performed in Alaska in have a complete reconstruction of her time problem here. I would like to have 1996, reconstruction only occurred on breast to restore her body and sense of some idea as to how soon that will hap- 11 of the patients. That means that self-esteem. pen. I see the chairman of the Agri- only 3.4% of women who have their The bill gives every person diagnosed culture Committee is here. We are here breast removed have reconstructive with cancer the right to a second opin- to begin our debate. I wonder how surgery, compared to the national av- ion, and would direct the HMO to pay much longer can we expect to wait. erage of 23 percent. for this second opinion. Also, the bill Mr. D’AMATO. Mr. President, I will The simple reason for this tragically directs HMO’s to pay for a specialist withdraw my request and ask that I be low figure is simple: women can’t af- even if that doctor happens to be out- given just 2 minutes, because I have ford the procedure. side the plan. yielded more time to more people. I Breast reconstruction costs average Lastly, and most importantly, this want to set the stage. about $5,000 for just the procedure. If bill prohibits HMO’s from paying doc- The PRESIDING OFFICER. Is there hospital, physician and other costs are tors to reduce or limit their patient objection to the Senator’s request? included—the cost averages around care. Mr. KENNEDY. For 2 minutes? $15,000. This is managed care’s dirty little se- The PRESIDING OFFICER. Yes. Dr. Sarah Troxel, of Providence hos- cret. They pay doctors to limit the Mr. KENNEDY. No. pital in Anchorage, states the impor- time spent with their patients and pay The PRESIDING OFFICER. Without tance of reconstruction: doctors not to provide care. objection, it is so ordered. Women who are not able to receive recon- I’ve heard from many, many, many Mr. D’AMATO. Mr. President, let me structive surgery suffer from depression, a constituents and doctors who are frus- say that we have been thwarted time sense of loss, and need more cancer survivor trated with this situation. If a doctor and time again, procedurally—by both counseling . . . Additionally, reconstructive needs to spend time with a patient— sides, I might say. But now I find what

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4651 took place today absolutely horren- host of agricultural, nutrition and reli- An important part of the answer to dous. gious organizations. this global crisis is our bill, S. 1150. It Again, it is disingenuous to suggest I point out that we had a good con- devotes $600 million over the next 5 that we would have to consider both ference with our House colleagues. This years in mandatory funding to the ini- when one is so clear cut, and the need is complex legislation. This is not the tiative for future agriculture and food is so necessary, and women are being first time the Congress has had a con- systems. These funds will be competi- denied. That is what is going on here. ference report. It is usual, at least in tively awarded to scientists who will It is wrong. So when we have a bill that matters of this variety, for the report undertake cutting-edge research in pri- is going to be acted on, I will come to to attract less attention. But ours is ority areas such as genome studies, the floor—I hope with a number of my important. And I appreciate this oppor- biotechnology, precision agriculture, colleagues—to offer this legislation as tunity to highlight that importance and other critical fields of work. The an amendment and get a vote. Let the this morning. new funds will augment the $1.8 billion people of America see this. The people Our initiatives will help farmers in existing annual budget for research are going to be so full of pride that we this country to produce food for the within the Department of Agriculture. world’s people and to do so at a profit will not allow something that is so ob- To make certain the existing budget while guarding the environment of this viously necessary that they are going is spent in the most efficient way, S. to hold it hostage, because that is what country and the world. S. 1150 also re- solves a funding crisis for the Federal 1150 also makes a number of reforms to is taking place with this legislation. It Crop Insurance Program, preventing the Nation’s research and extension has been held hostage, and it is dis- the loss of coverage for farmers in statutes. These reforms will establish ingenuous to come down here and say every State. The bill extends an impor- benchmarks and set new requirements you have to take this great big piece of tant initiative from the 1996 farm bill for coordination of work among univer- legislation or we can’t even let the that provides resources for rural devel- sities, placing new emphasis on activi- women of America have freedom from opment and research priorities. And, fi- ties that cut across several disciplines, the fear that they will be denied that nally, S. 1150 allows food stamp bene- involve multiple institutions, and inte- which they should have—reconstruc- fits to be provided to limited groups of grate research with public dissemina- tive surgery and to stay in the hospital the disabled, the elderly, political refu- tion of those results. until their doctor says now is the time gees, and children who immigrated to S. 1150 will provide $200 million per to go home, not a bean counter, some- this country legally. year in mandatory spending to con- one who limits you to 24 or 48 hours. Many of our colleagues have called tinue fully funding the Federal Crop I hope my colleagues will join with for dramatic increases in funding for Insurance Program. These funds, which me in this endeavor, making it a bipar- Federal scientific research. This advo- under current law would need to be ap- tisan fight to see that the women and cacy is altogether appropriate. Unfor- propriated from discretionary ac- families of America get justice. tunately, agricultural research has re- counts, are an integral part of the Mrs. FEINSTEIN. Mr. President, I ceived much less attention. Funding agreement between private insurers certainly will. I thank the Senator for has declined in real terms for some and the Agriculture Department that his leadership and commitment to this years, and Mr. President, has declined allows affordable crop insurance to be issue. in some areas to a point that we are no afforded to the Nation’s farmers. Cur- f longer prepared to resist some of the rent caps on discretionary spending do AGRICULTURE RESEARCH, EXTEN- insect and other disease pests that en- not take these expenses into account. SION, AND EDUCATION REFORM danger our food supply. Therefore, if the conference report is ACT OF 1998—CONFERENCE RE- It took visionaries like Nobel Peace not approved soon, Congress will either PORT Prize winner Dr. Norman Borlaug who search for discretionary accounts in came before our committee and elo- USDA and other agencies that can be The PRESIDING OFFICER. Under quently pointed out how agricultural sacrificed to provide the crop insurance the previous order, the Senate will now research is the future of mankind. It is funding, or, failing that, contemplate proceed to the conference report. the basis upon which mankind will be the prospect of insurance policies being The clerk will report. able to persist by the year 2050. Mil- canceled for thousands of farmers who The bill clerk read as follows: lions of people are now alive who would annually face the uncertainty of how The committee on conference on the dis- have died from malnutrition had it not the weather will affect their crops. agreeing votes of the two Houses on the been for the food productivity gains amendment of the House to the bill (S. 1150), S. 1150 offsets about half of these from people like Dr. Borlaug, and the crop insurance costs. For the remain- have agreed to recommend and do rec- thousands of other scientists. Whether ommend to their respective Houses this re- ing half, the conferees found reforms port, signed by all of the conferees. it is through the ‘‘Green Revolution’’ and spending cuts within the Crop In- of the 1960s, or today’s biotechnology, surance Program itself that saved the The Senate proceeded to consider the researchers have found ways to coax conference report. requisite amount of money. These cuts, more food from each acre, tapping such as reducing the level of reim- (The conference report is printed in more fully the potential of plant and the House proceedings of the RECORD of bursement provided for companies’ ad- animal food sources. ministrative costs, set the stage for April 22, 1998.) Further gains in output are not only further reform and improvement of the The PRESIDING OFFICER. Under possible but they are essential if the crop insurance system in the future. the previous order, the Senator from food needs of the 21st century are to be Indiana is recognized to speak for up to met. An increasing world population The conference report also provides 30 minutes. with rising incomes will require more for $100 million in new funding for Mr. LUGAR. Mr. President, I will and better food, feed and fiber. It is es- Funds for Rural America, recognizing consume much of my time at this junc- timated, as a matter of fact, that their the pressing needs of those in rural ture, reserve the balance, and yield to demand will be three times the demand areas and working to improve the qual- other colleagues. for food which we now have in this ity of life for those living in rural I am very pleased that the Senate is year. America. now prepared to debate the conference Not every farm around the globe is The conference report restores food report on S. 1150, the Agriculture Re- well suited for food production. We stamp benefits to about 250,000 legal search, Extension and Education Re- have an interest in avoiding the fur- immigrants who otherwise would be in- form Act of 1998. ther deforestation and the exploitation eligible for this portion of the Nation’s I thank especially Senator TOM HAR- of rain forests around the world and safety net. Generally, the categories of KIN, the ranking minority member of other sensitive ecosystems that will be immigrants covered by S. 1150 cor- the committee, and all committee farmed only at a terrible environ- respond to those who last year re- members for their efforts to work to- mental price. Production must be gained access to the Supplemental Se- gether to fashion legislation to garner trimmed in areas most appropriate for curity Income—the SSI Program— the support of 74 Senators and a large agriculture such as the United States. under separate legislation; namely, the

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4652 CONGRESSIONAL RECORD — SENATE May 12, 1998 balanced budget amendment. These im- across the Rio Grande or the Canadian Christians are persecuted for their be- migrants, the elderly, the disabled, po- border or some other nefarious way. liefs: Parts of the former Soviet Union litical refugees, and seekers of asylum, They are persons who, by definition, and Sudan; or Somalia where the cen- were either in the United States le- the State Department—and by direc- tral government is dissolved and the gally before the passage of the historic tion of the President, working with the land is ruled by myriad petty warlords. 1996 welfare reform law—and that is Judiciary Committees of Congress—has In recognition of the difficult cir- the case for the elderly, the children, permitted to enter because they are cumstances of their departure from and the disabled—or in the case of being persecuted for their religious be- their home countries and their lack of asylees and refugees, were subject to liefs. Asylees are immigrants who meet sponsors in the United States, the Im- political persecution for other cir- the same standards as refugees except migration and Nationality Act does cumstances that makes their residence they have made it to the United States not require refugees and asylees to re- here less than fully voluntary. In addi- on their own and applied for permission frain from becoming public charges tion, immigrant children under 18 who to stay to avoid having to return to a here. Indeed, a specific program of cash were in the United States legally be- dangerous situation of jeopardy in and medical assistance is authorized to fore the passage of welfare reform will their country of origin. support newly arrived refugees. Lim- also become eligible. There was no cor- It is not easy to gain either category ited appropriations have forced this responding restoration of SSI benefits status. In order to gain admission as a program to serve only as an adjunct to last year since children are generally refugee or asylee, someone ordinarily the basic Federal benefit programs not eligible for SSI. must show that he or she has ‘‘a well- such as Medicaid and food stamps. As I mentioned before, the agricul- Senate bill 1150 fully offsets all costs. founded fear of persecution in his or tural research conference report, one in It reduces expenditure of mandatory her own country of origin.’’ The mere which we are involved, did not make funds for computer acquisition by fact the would-be immigrant’s native all of this up from scratch. We simply USDA, a practice generally not avail- country is repressive or enmeshed in civil war is insufficient to support ap- have adopted precisely the sections of able to other departments or even to last year’s Balanced Budget Act on most agencies within USDA. The bill plication for refugee or asylum status. The applicant must be able to show in- which we all voted, and at that time at scales back some recent increases in least there was a recognition that peo- dividually that he or she is specifically employment and training funds within ple who are in these difficult straits and personally at risk. Many people the Food Stamp Program. really ought to be treated in a humane who have not been able to satisfy this Finally, the bulk of savings in S. 1150 manner. Among the provisions of the strict standard have been imprisoned are achieved by correcting an uninten- Balanced Budget Act that the ag re- or killed by oppressive regimes as they tional provision in the welfare reform search bill would apply to food went back, sadly enough. The casualty law which would otherwise allow stamps—and we have already adopted list of those who failed the test individ- States to be paid twice for the same ad- it once before—is a 2-year extension, ually, a very rigid test, is very long ministrative costs of providing food from 5 years to 7 years, of the eligi- stamp benefits determining eligibility and death occurred to many of these bility for benefits of refugees and and performing other such functions. people as they were forced to return. asylees for the food stamp situation. S. 1150 is the result of lengthy nego- Now, a somewhat more lenient stand- The 1996 welfare law set the exemp- tiations, careful thought, and dedi- ard currently exists for applicants from tion for refugees and asylees at 5 years cated work. It will help our Nation in- Vietnam, Laos, and Cambodia and for to correspond roughly with the earliest crease its food supply at a profit to our Jews and Evangelical Christians from date that most refugees and asylees farmers. The bill shores up the crop in- the former Soviet Union. Under the can apply. So, Mr. President, we philo- surance system in a timely way, allow- Lautenberg amendment, these persons sophically already have crossed that ing producers to manage risks intel- must only show that they have a ‘‘cred- bridge in the Welfare Act quite apart ligently. It gives access to the Food ible basis’’ for their fear of persecution from the Balanced Budget Act—refu- Stamp Program to vulnerable individ- in their homeland. The Lautenberg gees, the same people, asylees, 5 years. uals who reside in this country legally. amendment liberalized the ability of The argument is whether that 5 years A large coalition of organizations persons from these countries to seek should become 7 years; it is not wheth- who support this conference report are refugee status, but it is scheduled to er we should be paying these refugees actively seeking Senate passage. Com- expire at the end of the current fiscal and asylees support in a humane way. modity groups, bankers, those involved year. Most refugees and asylees cannot in the crop insurance industry, sci- Although some Members may wish to apply to naturalize until they have entific societies, and nutrition advo- extend this amendment, CBO has said been in our country for 4 years and 9 cates, religious organizations, and 67 an extension would have a cost. But I months. That limit soon proved unreal- land grant colleges and universities point out that even as we discuss this istic because of long, long backlogs in have voiced their support for this legis- conference report today, the House of Immigration Service processing and lation. Representatives is about to take up a adjudication of applications to natu- Mr. President, I appreciate that religious liberty and freedom situation. ralize and in swearing in successful ap- many Senators who have written in In the Foreign Relations Committee, plicants—no fault of the refugees and favor of this legislation by petition or we will have a hearing on the very the asylees, Mr. President, an adminis- through individual letters to the ma- same subject today. And I would just trative hassle at INS. In a number of jority leader have indicated strong sup- say that those who are rigorous in INS offices, the backlog exceeds 2 port for all of these provisions. But ob- rooting out food stamps need to con- years. If a refugee’s and asylee’s eligi- viously there are Senators—and we sider Jews and Evangelical Christians. bility ended after only 5 years in our shall have a debate this afternoon on Specifically, we are talking about country, they could be left without re- the specific question of refugees and those in other fora. We don’t need to course while their applications to natu- asylees and food stamps for these per- talk about them in the Chamber. And ralize are in the INS pipeline. sons as legal immigrants. these are very important issues, leav- The extension of their eligibility for Let me dwell for just a moment on ing aside ag research, crop insurance, SSI and Medicaid to allow them to re- the particulars of that issue. and whatever brought us to this point. ceive benefits during their first 7 years Refugees are immigrants whom the Now, the overwhelming majority of in the country was not controversial State Department has permitted to refugees come from just a handful of last year. It was included in all major enter the United States for the purpose countries, and I want to go through Republican and Democratic proposals of escaping persecution in their home these specifically. Communist coun- for legal immigrants. I repeat that—all country based upon their political or tries: Vietnam, Cuba, Laos; countries Democratic and Republican proposals. religious beliefs. making difficult, often violent, transi- The change was not made applicable to I want to underline that, Mr. Presi- tions: The former Soviet Union and food stamps technically, because the dent. These are not persons seeking ac- Bosnia; brutal authoritarian regimes: money for restoring benefits to immi- cess to our country illegally, coming Iraq and Iran; and countries where grants was allocated to the Finance

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4653 Committee and the Agriculture Com- refugees admitted, and a further exten- is try to find out, if we can, how to tri- mittee has jurisdiction over food sion is likely to cause the administra- ple our food supply so our acres are stamps, and on that basis a change tion to raise the refugee quotas by more productive, our farmers are more that clearly would have automatically about 18,000 per year. productive, and so the rest of the world flowed did not occur. The number of refugees admitted in will not starve. Finally, Mr. President, it should be the early 1990s as described above in- I believe that is a very important un- noted that this provision does not as- cludes refugees admitted under the dertaking. I hope all Senators will see sure refugees and asylees of receiving 7 Lautenberg amendment. CBO esti- the wisdom of this and support this hu- years of benefits; it only exempts them mates the increased number admitted mane and farsighted measure. from the new restrictions on legal im- will increase Federal costs for means- I yield the floor and reserve the re- migrants’ eligibility during their first 7 tested programs, but three-quarters of mainder of my time. years. Refugees and asylees will still the cost will come in the Medicaid and The PRESIDING OFFICER. Under have to meet all the criteria for every- SSI Program. the previous order, the Senator from one else in America to qualify for the Let me point out, Mr. President, and Texas, Mr. GRAMM, is recognized to benefits. Even refugees and asylees who there is no way that Members would speak for up to 10 minutes. are self-sufficient for much of their know this without the research of our The Senator is recognized. first 7 years in the country will lose committee, but it is unlikely that the Mr. GRAMM. Mr. President, I rise the benefit of that exemption after 7 modest amounts of money available in today in opposition to the pending con- years. They cannot carry it over in the food stamp benefits would make, ference report. At 2:15, I will be recog- terms of months of eligibility beyond under any circumstances, coming to nized to offer a motion to recommit. the 7-year time. By conforming food America more appealing for prospec- What I would like to do in my limited stamp rules to those already adopted tive refugees. The average monthly time today is sort of outline how a for Medicaid last summer, the ag re- food stamp benefit for these persons good bill goes bad through the legisla- search bill will avoid imposing mul- will be under $72 per month, less than tive process. tiple inconsistent eligibility rules on one-fifth of the SSI benefit, which is We passed, in the Senate, a bill fund- State and local agencies that finally now estimated by CBO as roughly $411 ing ag research. The House passed a have the responsibility to administer per month. It is estimated the fiscal bill funding ag research. These were all of this. cost of the refugee situation will be $50 not controversial matters, although The number of refugees entering the million a year. the method of funding the Senate bill country is controlled primarily by ceil- I conclude this part of the argument was to some degree controversial. But ings—ceilings, Mr. President—adopted by saying the distinguished occupant what happened is when the two Houses by the President each year in consulta- of the Chair, as chair of the House Ag- met, a simple bill to fund ag research tion with the Judiciary Committees riculture Committee, and I, worked to- for $517 million suddenly became a $1.9 prior to the beginning of each fiscal gether on a farm bill which, in conjunc- billion program. Three brand new man- year. These ceilings have been declin- tion with welfare reform, cut food datory, or entitlement, programs—de- ing and are expected to decline to re- stamp costs by roughly $24 billion. pending on which term you prefer— flect generally improved world condi- There are many in the Finance Com- were created, and suddenly we are vot- tions since the collapse of the former mittee who deserve great credit for re- ing in a conference report which is Soviet Union. For example, in fiscal arranging the circumstances of wel- technically unamendable on provisions year 1992, some 114,000 refugees were fare. But when it comes to significant that were never voted in either House admitted under the quotas. But by 1996, changes in the cost of welfare in this of Congress. this number had declined to just under country, significant reform of food One of my predecessors, Lyndon 75,000. stamps, there are no persons, in my Johnson, used to say, ‘‘I deeply resent In fiscal year 2000 and thereafter, judgment, better able to address this a deal that I’m not part of.’’ And I un- CBO now estimates the annual quota problem than the distinguished occu- derstand how these things happen, but will be 65,000; approximately 15,000 ad- pant of the Chair and myself. We were I simply want to talk about the prob- ditional people are granted asylum there. That was the bill that created lems with this bill and focus on the big each year. So, Mr. President, this is a the entire framework for savings under problem with the bill, which is related total of 80,000 persons—or 90,000, as of welfare reform, created the entire to overturning welfare reform. 1996. framework for fairness, for oversight. Going back to where we started, we Each year, many more people apply I think that simply needs to be said, had an ag research bill in the House, for admission as refugees than can be at a time when we are talking about, we had an ag research bill in the Sen- accommodated under the quotas. Thus, at most, 80,000 persons escaping perse- ate. We went to conference, and we an increase of immigrants seeking ad- cution, and as to whether they should ended up with a bill that funds crop in- mission as refugees would not increase be given an extension of 2 more years surance, which was in neither original the number admitted; it would merely due to INS hassles and administration, bill, and not only funds it but, for the swell the backlog and the waiting lists. to become citizens. I think that is a first time ever, makes it a mandatory The only significant exception to these very serious point. program which Congress will not vote quotas is Cubans escaping Castro’s re- Finally, some have raised the ques- on again, funding will be automatic gime and admitted under the Cuban tion that this is an entitlement pro- over the next 5 years as a result of this Entrant Program. That number has gram. I point out that the proposals we program. fluctuated in recent years from a low are making do not entitle anyone to The original bill had no hint of food of 3,000 in 1991 to a high of 19,000 in anything. Essentially, we have several stamps in it. The issue was never de- 1996. multiyear proposals in the farm bill of bated. I do not believe that a similar The number of refugees and asylees 1996. They include the Conservation provision, if brought to the floor of the coming to the United States is con- Reserve Program. They include pay- Senate under our rules for full debate, trolled by Congress and the adminis- ments, annually, to farmers who are could have possibly passed. And, yet, in tration. The major current example of now leaving various crops, or maybe a simple bill on ag research, we now this, as I pointed out, an exception, is farming altogether, as the case may be, have $818 million of funding for food the Lautenberg amendment, which al- but without regard to planting. In es- stamps. All of these food stamps go to lows the southeast Asians, Jews, and sence, for years we have adopted immigrants who have come to the Evangelical Christians to gain admis- multiyear programs in farm bills be- country and who now have legal status. sion as refugees under more lenient cause it was the preference of the Con- We had, through the welfare reform rules than those applied to other appli- gress not to return to agricultural leg- bill, eliminated these benefits in a bill cants. CBO has concluded enactment islation annually. We are, in this bill, which passed both Houses of Congress and repeated extension of this provi- mandating that for 5 years we should overwhelmingly and, by the way, is, in sion has prompted the administration do something very important, at the terms of the public’s mind, the most to increase the quota on the number of rate of $120 million per year, and that popular bill that we have passed in the

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4654 CONGRESSIONAL RECORD — SENATE May 12, 1998 last 3 years. This bill, in a provision Now, look, my concern is adverse se- tory program—always. In 1996, a small that was voted on in neither House of lection. My concern is that we are portion of it was made discretionary, Congress, overturns a substantial por- going to be attracting people to come but the basis of crop insurance has al- tion of our welfare reform bill and to America to go on welfare. I think it ways been mandatory. So this is not gives $818 million of food stamps to im- is a destructive policy to have active some change in that program. migrants. enticements to draw people to America Thirdly, I tell the Senator from The bill also sets up a brand new for the purpose of going on welfare Texas that food stamps has always funding mechanism for the Fund for rather than for the purpose of going to been a part of this bill. It was a part of Rural America and provides a $100 mil- work. this bill when it passed our committee, lion entitlement, which spends out I don’t have any doubt that this pro- and it was a part of the bill when it very slowly, but it ultimately spends vision will affect the decision of people passed the Senate. Food stamps was out every penny of $100 million. So we to come to America to try to live off used as an offset to pay for the re- now have four entitlement programs in the fruits of someone else’s labor. search portion of the bill. So it was a a simple bill that set out to fund ag re- There are millions of people who go to part of the bill as an offset. The admin- search. And every program that be- bed every night dreaming the Amer- istration said if we are going to use it comes an entitlement, since we are ican dream. They want to come to as an offset, we had to replace some of under a spending cap on discretionary America. They want to share what we the nutrition programs, which I will spending—every penny that would have have shared. Many Members of the get to. been spent on these programs is now Senate are Members whose grand- I also point out that the Senate- free to spend on other programs. So, in fathers and grandmothers or great passed bill had nutrition provisions in addition to creating four new entitle- grandfathers and great grandmothers it. It was not just a research bill, as the ment programs, we have, in this bill, came to America looking for oppor- Senator from Texas has said. It had a broken our commitment to limit the tunity. I don’t believe that process provision in there to expand some child growth of discretionary spending, be- should end. But I think it is suicidal nutrition programs with an expanded cause we have taken discretionary pro- for a nation to set up procedures that breakfast grant program. That was grams and funded them as entitle- attract people to come to its shores, taken out in conference, but it was in ments, so that now new spending can not with a dream of opportunity, not the Senate-passed bill. Lastly, I point out that in terms of occur in the discretionary area. with a dream of achievement, but with the mandatory programs the Senator is The biggest problem with the bill is a dream of benefiting from the fruits of it puts a great big neon sign on the bor- talking about, the Fund for Rural someone else’s labor. America was part of the bill as passed der of the United States of America, My wife’s grandfather came to this in October, for which the Senator and the neon sign says: ‘‘Come to country from Korea. He didn’t know voted. It was in the bill at $300 million. America and get welfare. We have a the language. He didn’t know a single Now it is only $100 million. So if the welfare office on every corner.’’ That is soul here. He certainly did not come Senator from Texas supported it at $300 the biggest problem with this bill. here looking for welfare or food I remind my colleagues that when a million, he shouldn’t be too upset that stamps. He came here looking for op- it is now at $100 million. I wanted to Member of the minority tried to reduce portunity and freedom, and he found the level of immigration, I helped lead make those corrections in the RECORD. both. I made my opening statement yester- the effort to kill limiting legal immi- From the period of the Civil War to day on the bill itself in terms of the gration. I believe in legal immigration. the turn of the century, we had 20 mil- important research and crop insurance I do not believe America is full. I don’t lion people come to America, most of provisions that are in it. Again, I com- want to tear down the Statue of Lib- them desperately poor. But they came mend my chairman, Senator LUGAR, erty. The story of the immigrant is the here with willing hands and willing for all of his hard work in getting the story of America, and I don’t think hearts, they rolled up their sleeves, and whole research program revamped and that story is finished telling. I believe they built a great nation in the proc- restructured to meet the needs of the that we need to let people with a new ess. next century. Senator LUGAR has been vision and new energy come to Amer- My strong objection to the provisions a leader in this effort. I was pleased to ica as long as they don’t violate our in this bill really boils down to a series join him, and, again, I thank Senator laws and they come legally, but I want of things: Should we be creating four LUGAR for his close cooperation and for them to come with their sleeves rolled new permanent, mandatory entitle- working together to get a really good up ready to go to work, rather than ment programs? I say no. And sec- research bill passed. with their hands held out going on wel- ondly, should we be changing the law I also commend Senator LUGAR for fare. to say to people all over the world, his leadership in getting the necessary I will offer a motion to recommit ‘‘Come to America and we will give you wherewithal to extend our Crop Insur- with instructions at 2:15 p.m. That is a 7 years of food stamps″? I want people ance Program for the next 5 years. I very simple motion. All it says is one to come to America, but I want them daresay, without his strong leadership, little provision in this bill, which I to come to work. we would not have the provisions that think is a relatively minor cost, be- The PRESIDING OFFICER (Mr. our farmers could rely on for their crop cause we are scoring the bill over 5 LUGAR). The time of the Senator from insurance this year. years, but it is clearly the most de- Texas has expired. Again, if, in fact, this motion to re- structive element in this bill, and that The Senator from Iowa is recognized commit is successful, that is the end of is we have an element in this bill that for 10 minutes under the previous this bill. Make no mistake about it, says that no matter how far in the fu- order. this is not just some motion to recom- ture you come to America, if you come Mr. HARKIN. Mr. President, I was mit to change a little bit. This is a mo- 75 or 100 years from now, under the pro- trying to listen to the remarks of the tion to recommit to kill this bill. If visions of this bill, if you come as a ref- Senator from Texas. It is hard to know this goes back to conference, I don’t ugee, you can get food stamps for 7 where to begin to correct the mistakes know that the votes are there to take years. That is a new provision of law in that he made in his statements because out the food stamp provisions. Even if place in this conference report. there were so many. they are, it will never pass the House It is a provision where we are moving First of all, I say to the Senator from of Representatives, and certainly the in exactly the opposite direction of the Texas that this was not a $500 million Senator from Texas knows that. This is welfare reform bill, and we now make bill when it started. As a matter of a careful compromise, a careful bal- it permanent law that anyone who fact, when it passed the Senate, it was ance that was worked out in this bill. comes to America in the future as a a $1.3 billion bill and, in fact, it passed Let me get to the issue of the food refugee can be guaranteed they are unanimously, so the Senator from stamps themselves. The Senator says it going to be able to apply for and get al- Texas obviously voted for it. is like putting a big neon sign out most immediately 7 years of food Secondly, I also point out that crop there, ‘‘Come to America.’’ Well, let us stamps. insurance has always been a manda- take a look at that.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4655 What are we doing in this bill? What that these individuals typically come to the As a result, many start in low paying jobs we are saying is that for refugees and U.S. with few, if any, resources. They have where they need food stamps to get an ade- asylees from religious persecution and no sponsors to rely on and may have dif- quate diet. political persecution, who cannot exist ficulty working because of disabilities. Congress set the exemption at 5 years to Those that can work may find that the train- correspond roughly with the earliest date in their homelands because they are ing and skills they gained in their home that most refugees and asylees can apply to going to be tortured or killed, we say countries are inadequate for most jobs here. become a U.S. citizen. This time-line has to them that if you come to America As a result, many start in low paying jobs proven to be unrealistic because of the back- under a quota—we have a quota every [so] they need food stamps to get an ade- log in processing naturalization applica- year; not every refugee gets into this quate diet. tions. In many INS offices, it may take over country; we have a quota—but if you That is just it. These are refugees 2 years from the date of application to a per- get in under that quota, right now as a and asylees. They do not have spon- son’s naturalization ceremony. If refugees refugee you are eligible for food stamps sors. A lot of them come with a shirt and asylees are left without access to food on their back. Let me give you one ex- stamps after 5 years, they would be punished and Medicaid and SSI. You are eligible and left without any nutritional support be- for food stamps for the first 5 years, ample. Mr. Wang Dan, the young Chi- cause of government inefficiency. but you are not after that. And so what nese man who we have all been reading For these reasons, I again urge you to op- it says is that you can come in, you about, who has now come to this coun- pose Senator Gramm’s motion to recommit can get Medicaid, you can get SSI for try, came with a shirt on his back. We the S. 1150 to the conference committee. up to 7 years, but you cannot get food know how he was persecuted and im- Thank you. stamps after 5 years. As a refugee, it prisoned in China. What this amend- Sincerely, takes 4 years and 9 months to be able ment says to Wang Dan is, OK, up to 5 DIANA AVIV, years, if you fall on hard times—you Associate Executive Vice President to apply for citizenship. We know that, for Public Policy. because of the backlog at INS, it takes have to otherwise qualify; you do not automatically get food stamps—but at least 2 more years, maybe 3 years to OFFICE OF THE CARDINAL, get full citizenship. otherwise if you fall on hard times, New York, NY, April 29, 1998. Let me also point out something else. yes, you can get some food stamps. But Hon. ALFONSE M. D’AMATO, These food stamps are not automatic. after 5 years—you have worked here; U.S. Senate, Hart Building, It does not mean because you are a ref- you have worked hard; you have ap- Washington, DC. ugee and you are here that you get plied for citizenship; it is in the bill; DEAR SENATOR D’AMATO: I write to request food stamps. No. You still have to meet you are going to become a citizen in 2 your support for making legal immigrants the requirements, the work require- or 3 years—all of a sudden you lose once again eligible for food stamps and re- your job, you get sick, you fall on some storing $818 million in Food Stamp benefits. ments and the income requirements, to This would permit 250,000 children, elderly be able to qualify for food stamps like hard times, sorry, no food stamps. Is and disabled persons and refugees to seek anyone else. So we are not talking that a neon sign? Not in any way. Not Food Stamp assistance if they are in need. I about automatic food stamps. in any way. am told that the provisions to do this are The 5-year period, the Senator is cor- That is why, Mr. President, we have contained in the conference Report on rect, was set in the welfare reform bill. this letter from the Council of Jewish S. 1150/H.R. 2534, the Agriculture Research, But it did provide an exception for ref- Federations, which I ask unanimous Extension and Education Reauthorization ugees and persons granted asylum. consent to have printed in the RECORD, Act of 1997. Since 1984, as Archbishop of New York, I They would be able to receive food and also a letter from John Cardinal O’Connor, Archbishop of New York, have been privileged to assist immigrants stamps for 5 years. from almost every country in the world. In the Balanced Budget Act that we also asking us to support the restora- These many immigrants have enriched the passed last year, we extended that for tion of food stamp eligibility in this Catholic Church of New York and other the elderly, the disabled, and the chil- bill. churches, just as they have enriched the New dren of legal immigrants who were here There being no objection, the mate- York metropolitan area. (In our Catholic in 1996. And then we looked at what we rial was ordered to be printed in the churches alone, every Sunday our Divine did. We looked at the 5-year period and RECORD, as follows: Services are held in 30 different languages.) From my own experience I know those who said, this is unrealistic because a ref- COUNCIL OF JEWISH FEDERATIONS, New York, NY, May 12, 1998. migrate to the United States today are es- ugee who is here, as I said, has to be sentially no different from our parents and here 4 years and 9 months—and it takes DEAR SENATOR: This morning, Senator Phil Gramm (R–TX) is expected to offer a motion grandparents who came to America fifty or a 3, sometimes 4 more years to become a to recommit the Conference Report on the Ag- hundred years ago. The vast majority of im- citizen. And it is impossible for a ref- riculture Research, Extension, and Education migrants are individuals who come to this ugee to complete the citizenship proc- Reform Act, S. 1150, with instructions to limit country seeking opportunity for themselves ess in less than 7 years. the provision extending food stamps for and their families. Unfortunately some im- As I said, the Balanced Budget Act asylees and refugees from 5 to 7 years to only migrants—just as those born in this coun- last year provided that in the case of those individuals who were in the country try—fall on hard times. prior to August 22, 1996. On behalf of the Under the 1996 Personal Responsibility and Medicaid and SSI, refugees and asylees Work Act, legal immigrants needing assist- would be eligible to receive benefits for Council of Jewish Federations, I am asking that you oppose Senator Gramm’s motion. ance to feed themselves are ineligible for up to 7 years if they qualify. Not auto- Senator Gramm’s motion would impose support from the very program their tax dol- matic. There is no neon sign. It says, if undue hardship on people who have been lars help fund. Many are now forced to find you qualify. forced to flee persecution in their home- emergency and unstable ways to feed them- There was bipartisan agreement on lands. These are people who were persecuted, selves and their families. Catholic Charities this point. Food stamps were not in- and in some cases tortured, for their polit- has been supporting an emergency ecumeni- cluded because that bill came out of ical or religious beliefs. In their homelands, cal food pantry in the Washington Heights the Finance Committee, and food they were subjected to persecution ranging section of New York City—the home and hope of so many newly arriving Dominican stamps is not under the jurisdiction of from harassment to beatings and job loss to having their homes burnt down. The U.S. has immigrants. During the past year, the num- the Finance Committee. They are a long history of providing a ‘‘safe haven’’ to ber of those served at this pantry has dou- under the jurisdiction of the Agri- refugees and asylees and Congress has re- bled—at least in part due to the changes in culture Committee. And that is why we peatedly stood up in support of this tradi- the 1996 laws. While we try to treat those had to fix it here. tion. who come to the pantry with dignity, the Let me read from a letter from the The welfare law provided a 5 year exemp- availability of food stamps to tide people Council of Jewish Federations that tion from the bar on food stamps for refugees over the rough times is much more dignified came to our office just today asking and asylees because Congress acknowledged than having mothers and children line up in that these individuals typically come to the the street at food pantries and soup kitch- that we oppose Senator GRAMM’s mo- U.S. with few, if any, resources. They have ens. tion. Let me just read one paragraph. no sponsors to rely on and may have dif- I urge you to take this opportunity to ame- It says: ficulty working because of disabilities. liorate some of the more severe impacts of The welfare law provided a 5 year exemp- Those that can work may find that the train- that 1996 legislation by supporting the res- tion from the bar on food stamps for refugees ing and skills they gained in their home toration of food stamp eligibility for legal and asylees because Congress acknowledged countries are inadequate for most jobs here. immigrants.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4656 CONGRESSIONAL RECORD — SENATE May 12, 1998 With gratitude for your consideration, and discuss the problems caused by wheat ance? No. There are changes and re- Faithfully in Christ, scab. This bill provides funding for re- forms that are still needed in the pro- JOHN CARDINAL O’CONNOR, search on fighting this disease that has gram. With the most important issue Archbishop of New York. ravaged the wheat crop in many areas facing us—the funding shortfall—now The PRESIDING OFFICER. The Sen- of the northern plains. solved, the chairman and I, Senator ator’s time has expired. Let us talk about food safety. We KERREY, and others, in a bipartisan Mr. HARKIN. It is the fair and decent have heard an awful lot of comment in way, will confront this, and we will thing to do. Let us not kill this bill be- the press and concern—understandable work to achieve the needed crop insur- cause of doing the fair and decent concern—about E. coli. This bill pro- ance reform in the next session of Con- thing. vides funding for research on the im- gress. The PRESIDING OFFICER. The Sen- plementation of the Hazard Analysis Rather than going into the food ator from Kansas is now recognized, and Critical Control Point Systems stamp issue, which the chairman has under previous order, for 10 minutes. (HACCP). It addresses the problem of addressed, Senator GRAMM expressed Mr. ROBERTS. Mr. President, I rise E. coli. today in strong support of the con- The bill provides funding for impor- his concern, and the distinguished ference report to the Agricultural Re- tant research into discovering and ana- ranking member, Senator HARKIN, has search, Extension, and Education Act lyzing trade barriers that prohibit the addressed, I will go on and point out of 1998. I would like to associate myself movement of U.S. ag products on the several other important facts in regard with the remarks of the distinguished world market. With the Asian flu to this bill. chairman. This is going to be the most today, and our markets declining, Well, let me say this in regard to important bill to be passed in the 105th nothing could be more important. This food stamps. The very first thing we Congress in relation to agriculture. I research will provide important infor- did in the House Agriculture Com- commend the chairman, the ranking mation to help us move toward these mittee 3 years ago, when we started to member, and the members of the con- goals in regard to becoming much more address the farm bill, was take up the ference for their efforts in reaching market oriented and competitive. issue of food stamps. That is the first what I consider to be a good and a very Let me talk about the environment. hearing we had. Billions and billions of bipartisan bill. The one thing that agriculture can do dollars were being spent on food This bill has been in the making for through precision agriculture is to con- stamps—a program out of control and 2 years. Due to time constraints and tribute to being more and better stew- obviously in need of reform. Working the need to more thoroughly evaluate ards of the soil and the environment. with the distinguished chairman of the the future direction of agricultural re- Precision agriculture will become one Senate Agriculture Committee, and search, these programs, the research of the most important tools available others, we had hearings. We exposed $3 programs, were not dealt with in the to producers in the future. It allows billion to $5 billion in fraud and abuse new farm bill back in 1996. But we them to protect the environment by and organized crime in the program. promised our farmers and our ranchers, using satellite technology to determine We instilled reforms, and we saved $23 all of us involved in agriculture, all of the proper rates of pesticide and fer- billion to $24 billion, plus $10 billion in the land grant universities and con- tilizer applications to the square foot. regard to savings with the farm com- sumers, that Congress would move to This has implications all over the modity programs. There isn’t any complete this important piece of the ag world. other segment of Government that has policy puzzle as soon as possible. I am pleased also that this bill will gone through that kind of savings. No After 2 long years, we will soon vote provide important funding for the Fed- member of any committee of this Sen- to ‘‘reform’’ our agriculture research eral Crop Insurance Program. The Crop ate or of the House previously has ever programs. We will not only vote to ex- Insurance Program is currently facing achieved those kinds of significant cuts tend these programs and commit funds a $200 million funding shortfall in each and reform in the Food Stamp Program to feed America, and a very troubled of the coming 5 years. or any other program. So the chairman Let me just say that this lack of and hungry world, but to reform them is right. We would like to think we funding is a ‘‘train wreck’’ waiting to as well to make them more competi- know a little bit about it. happen for American agriculture. With- tive. We are also going to provide im- out full funding of this program, farm- The 1996 welfare reforms eliminated portant funding for crop insurance and ers could face cancellation of hundreds benefits from 800,000 to 950,000 to illegal rural development and, yes, limited of thousands of crop insurance policies. immigrants. I know that. This bill ex- food stamp benefits to a specified Let me repeat that. Hundreds of thou- tends the benefits back to children, el- group of legal immigrants. sands of farmers, this spring, are facing derly, and the disabled who were in the The distinguished chairman, the dis- the cancellation of their crop insur- country before August 22 of 1996. It also tinguished ranking minority member, ance. That would be devastating. extends benefits to refugees and and the distinguished Senator from Obviously, many farmers are re- asylees who may have entered after the Texas have talked about that at quired to maintain their crop insur- August 22 date. Benefits will be re- length. I am going to try to briefly ad- ance coverage in order to obtain loans turned to approximately 250,000 peo- dress the importance of funding in each from their rural banks. Without crop ple—not 900,000, but 250,000 people. The of these areas. insurance policies backing these loans, trend line is down in regard to refu- First of all, this bill provides $600 many loans would be recalled, and it gees. million in new funding for agriculture could send agriculture into a credit and research. Why is that important? Mr. I point out that a refugee is defined financing crisis. Farmers and ranchers as ‘‘a person who is fleeing because of President, in the last several decades were also promised increased access to we have seen the population double in persecution or a well-founded fear of viable risk management tools with the persecution on account of race, reli- this world, and yet we continue to feed passage of the 1996 farm bill. Crop in- this country and, as I have said before, gion, nationality, membership in a par- surance ranks at the top of the list of ticular social group, or political opin- a troubled and hungry world on the these important and necessary tools. ion, and who is of special humanitarian same amount of ground. That is a mod- This bill provides approximately $500 concern to the United States.’’ ern miracle. People used to get peace million in new funding for crop insur- prizes for that. And the main reason is ance over the next 5 years. It also With all due respect, I don’t think agriculture research. When we passed makes internal changes in the pro- that is a beacon. I think they are flee- that new farm bill, producers were gram. This $1 billion in combined fund- ing, and I think it is certainly within promised that funding would be pro- ing changes solves the funding short- the boundaries of the United States vided to help develop new crops, higher fall in the program and ensures pro- and what the Statue of Liberty is all yields and stronger resistance to dis- ducers access to adequate crop insur- about that we consider that. There is a ease and pests. ance. cap. Most of the European numbers are In recent weeks, we have heard our Are all the changes made that we used largely for Soviet, religious mi- colleagues from the northern plains need to make in regard to crop insur- norities, and Bosnians. The East Asian

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4657 numbers are for former Vietnamese re- the way the Department of Agriculture colleges and universities in support of education camp detainees, and Lao- awarded grants to colleges and univer- the conference agreement be printed in tians. As I have indicated, these num- sities around the country and funded the RECORD. bers are down. It has gone from 100,000 research programs at Agricultural Re- There being no objection, the letter in 1980 to 75,000 in 1998. search Service facilities. That study was ordered to be printed in the In closing, let me say this. This agri- was undertaken throughout 1997. I RECORD, as follows: culture research bill and this crop in- think it began in March of last year. MAY 4, 1998. surance bill will likely be the most im- The committee held a series of hear- Hon. THAD COCHRAN, portant piece of legislation we pass for ings and reviewed suggestions and op- U.S. Senate, our farmers and ranchers during the tions for improving these programs. Washington, DC. 105th Congress. This conference report is the product of DEAR SENATOR COCHRAN: We are writing to During the debate on the 1996 farm ask you to vote ‘‘yes’’ on the conference re- that study and that carefully developed port for S. 1150, the Agricultural Research, bill, we promised our farmers, ranch- improvement to the Agricultural Re- Extension, and Education Reform Act of ers, and researchers, who depend on the search Service programs that are fund- 1998, when it is considered on the floor. This markets, a more market-oriented agri- ed by the Department of Agriculture. legislation has succeeded in balancing sev- culture. We promised to get the Gov- I am convinced that we will do a bet- eral competing interests and will help pre- ernment out of our decisionmaking, no ter job under this conference report of pare the agriculture and food industries for longer do you put the seed in the identifying the priorities in production the challenges in the next Century. ground as dictated by Washington. In agriculture, in food production, and in This conference report addresses a number return for less government support, we management of our resources in agri- of issues that are vitally important to pro- ducers, processors, and consumers of food said we would provide the research and culture than we ever have before under and fiber. The bill provides funding for agri- the risk management tools. That was a the way we were handling the funding cultural research and rural development pro- promise. We will endanger the signifi- of these programs. grams. It provides funding for crop insurance cant reforms that we made in the new That is the driving force behind this that otherwise will create a severe strain on farm bill if this bill is not passed. conference report. The reason it is so discretionary budget accounts. Finally, the Let me make one other observation. important for the Senate to approve legislation restores food stamp benefits for The amendment by the distinguished this conference report is that it puts some legal immigrants. These funds are fully Senator from Texas to recommit is, in this in place now. offset, and the bill is budget neutral. Mr. President, if that were all this The House and Senate Committees on Ag- fact, a killer amendment; $1.7 billion in riculture have worked long and diligently regards to the way that States are ad- legislation accomplished, some may developing this much needed legislation. We ministering the program, based on the say that this legislation is unneces- believe they have done a remarkable job, and reform we passed, will disappear. We do sary, but it does more. It also provides we thank them for their accomplishments. not have the money in the appropria- $600 million over the next five years for We respectfully request your assistance in tions bill to pay for the research or the new competitive agricultural research passage of this important legislation, Its im- crop insurance, and we will face an ag- grants at federal laboratories and col- pact on the future of our nation will be sig- riculture crisis. leges and universities. nificant. Our appropriations process is begin- Sincerely, Mr. President, during the debate on Alabama Farmers Federation. the 1996 Farm bill, we promised our ning at this point. We have the job of American Farm Bureau Federation. farmers, ranchers, and researchers that allocating, under the discretionary American Beekeeping Federation. we would pass this bill and provide the funding allocations that our appropria- American Honey Producers Association. tools needed to feed a troubled and tions subcommittee will receive, funds American Sheep Industry Association. hungry world. It is unconscionable that for these agriculture research pro- American Soybean Association. at a time when producers are facing grams. With the guidance of this legis- Grocery Manufacturers of America. lation, it will be a much more coherent National Association of Wheat Growers. low commodity prices, reduced inter- National Barley Growers Association. national markets due to the Asian Cri- process and an orderly process, and I National Broiler Council. sis, and new crop diseases, this bill has can’t contemplate what a mess we National Cattlemen’s Beef Association. languished. The tools included in this would be in if this conference report National Corn Growers Association. bill allow producers and researchers to were not agreed to. National Cotton Council. directly address these issues. Under current law, about $200 million National Council of Farmer Cooperatives. I applaud and thank the Chairman, of the delivery expenses for cata- National Farmers Union. strophic crop insurance must be pro- National Food Processors Association. ranking member, and the greater ma- National Grain Sorghum Producers. jority of the members of the Agri- vided annually in the agriculture ap- National Milk Producers Federation. culture Committee for their work on propriations bill. This legislation National Peanut Growers Group. this bill. would provide full mandatory funding National Pork Producers Council. The PRESIDING OFFICER (Mr. SES- for those expenses over the next five USA Rice Federation. SIONS). The time of the Senator has ex- years. This conversion from discre- American Association of Crop Insurers. pired. tionary to mandatory spending will en- American Bankers Association. Mr. ROBERTS. I urge my colleagues sure that farmers will not have to be American Society of Farm Managers and concerned with the uncertainty of an- Rural Appraisers. to oppose the motion to recommit and Crop Insurance Agents of America. support the bill. nual funding bills and whether cata- Farm Credit Council. The PRESIDING OFFICER. The Sen- strophic crop insurance protection will Independent Bankers Association of Amer- ator from Mississippi has 5 minutes. be available in the coming growing sea- ica. Mr. COCHRAN. Mr. President, I am son. Norwest Corporation. pleased to join the distinguished chair- In addition to the support this bill Norwest Ag Credit. man of the Agriculture Committee, has from the agriculture community, it Rural Community Insurance Services. Agicultural Research Institute. Senator LUGAR from Indiana, and my also enjoys support from those inter- American Association of Veterinary Med- good friend from Kansas, the distin- ested in the provisions which will bring ical Colleges. guished Senator who was formerly parity between the Food Stamp Pro- American Phytopathological Society. chairman of the House Agriculture gram and the Supplemental Security American Society of Agronomy. Committee, in asking the Senate today Income Program for those immigrants American Society of Animal Science. to support this conference report. legally residing in the United States. American Society of Plant Physiologists. Senators may remember that when This was an important component of American Veterinary Medical Association. the 1996 farm bill was written, it reau- the compromise we reached with the Coalition on Funding Agricultural Re- thorized agriculture research programs House of Representatives. search Missions. Council of Scientific Society Presidents. for only 1 year. There was included in This bill has received support from Council on Food, Agricultural, and Re- the committee report a suggestion that almost every sector of agriculture. I source Economics. there be a thorough reevaluation made ask unanimous consent that a letter I Entomological Society of America. by the committees of jurisdiction of received from over 100 organizations, Crop Science Society of America.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4658 CONGRESSIONAL RECORD — SENATE May 12, 1998 Federaltion of American Societies of Food New Mexico State University, College of fraught with fraud. According to the Animal Sciences. Agriculture & Home Economics. General Accounting Office (GAO), the Illinois Council for Food & Agricultures North Carolina A&T State University, Social Security Administration sends Research. School of Agriculture. out $27 billion in SSI checks annually. Society of Nematologists. North Carolina State University, College Soil Science Society of America. of Agriculture & Life Sciences. Approximately $4 billion in checks are Weed Science Society of America. North Dakota State University, College of sent out erroneously. Immigrants, who Alabama A&M University, School of Agri- Agriculture. make up just 6 percent of the popu- culture & Home Economics. Oklahoma State University, Division of lation, currently receive over half the University of Alaska, Fairbanks, College of Agricultural Sciences & Natural Resources. cash benefits from the SSI program. Natural Resource Development & Manage- The Ohio State University, College of The agriculture research bill we are ment. Food, Agricultural & Environmental debating today restores food stamp eli- Alcorn State University, School of Agri- Sciences. gibility for the elderly and the dis- culture. Oregon State University, College of Agri- University of Arizona, College of Agri- abled, and for children, as long as they cultural Sciences. were in the United States before Au- culture. Pennsylvania State University, College of University of Arkansas, Dale Bumpers Col- Agricultural Sciences. gust 22, 1996. But, the agriculture re- lege of Agricultural, Food & Life Sciences. Prairie View A&M University, Department search bill also includes the restora- University of Arkansas, Pine Bluff, College of Agriculture. tion of food stamp benefits for all im- of Agriculture and Home Economics. Purdue University, School of Agriculture. migrants who were in the country as of Auburn University, College of Agriculture. University of Rhode Island, College of Re- August 22, 1996, but who become dis- University of California Systemwide, Divi- source Development. abled in the future. The Congress is sion of Agriculture & Natural Resources. Rutgers—The State University of New Jer- Clemsom University, Public Service & Ag- going to spend approximately $800 mil- sey, College of Agriculture & Natural Re- lion to restore all of these benefits. The riculture. sources. Colorado State University, College of Agri- South Carolina State University, 1890 Re- food stamp program, like the SSI pro- cultural Sciences. search & Extension Programs. gram, does not require that an indi- University of Connecticut, College of Agri- South Dakota State University, College of vidual have contributed to the Social culture & Natural Resources. Agriculture & Biological Sciences. Security base. And, the food stamp pro- Cornell University, College of Agriculture Southern University A&M College, College gram is also susceptible to fraud and & Life Sciences. of Agriculture and Home Economics. Delaware State University, School of Agri- abuse—in a just released GAO report, it Tennessee State University, School of Ag- is estimated that recipients were over- culture, Natural Resources, Family & Con- riculture & Home Economics. sumer Sciences. paid an estimated $1.5 billion, or 7 per- University of Tennessee—Knoxville, Col- cent of the approximately $22 billion University of Delaware, College of Agri- lege of Agriculture. culture & Natural Resources. Texas A&M University, College of Agri- food stamps program. And, that is only Florida A&M University, College of Engi- culture & Life Sciences. the fraud that is quantifiable by the neering Sciences, Technology & Agriculture. Tuskegee University, School of Agri- government. The GAO believes there University of Florida Agriculture & Nat- culture & Home Economics. are other forms of fraud in the food ural Resources. Utah State University, College of Agri- Fort Valley State University, School of stamp program that are too difficult to culture. Agriculture. quantify. University of Vermont, Division of Agri- University of Georgia, College of Agricul- As a result of the 1997 Budget and culture, Natural Resources & Extension. tural & Environmental Sciences. this bill, those individuals who were in Virginia Polytechnic Institute & State University of Guam, College of Agriculture the country and disabled on August 22, University, College of Agriculture & Life & Life Sciences. 1996 will continue to be eligible for SSI University of Hawaii at Manoa, College of Sciences. Virginia State University, School of Agri- and for food stamps. But, the Congress Tropical Agriculture & Human Resources. has to draw the line somewhere. The University of Idaho, College of Agriculture. culture Science & Technology. University of Illinois at Urbana-Cham- Washington State University, College of sponsors of currently healthy immi- paign, College of Agricultural, Consumer & Agriculture & Home Economics. grants who entered the country before Environmental Sciences. West Virginia University, College of Agri- August 22, 1996 should be responsible Iowa State University, College of Agri- culture, Forestry & Consumer Sciences. for those immigrants’ care should they culture. University of Wisconsin-Madison, College fall on hard times. That has always Kentucky State University, Land-Grant of Agricultural & Life Sciences. University of Wyoming, College of Agri- been the law. In fact, since the early Programs. part of the century any immigrant who University of Kentucky, College of Agri- culture. becomes a public charge can actually culture. Mr. COCHRAN. So, Mr. President, be removed from the United States. Langston University, Research and Exten- Senators should know it’s very impor- sion. For those individuals who do become tant that the conference report be disabled and for whom there is no spon- Lincoln University, College of Agriculture, adopted. It is a good compromise be- Applied Sciences & Technology. sor support, the Immigration and Nat- Louisiana State University Agricultural tween the Senate and the House. It in- uralization Service already has the au- Center. volves other provisions that have been thority to waive the normal require- University of Maine, College of Natural Re- discussed eloquently and forcefully by ments of becoming a citizen. By be- sources, Forestry & Agriculture. my friends who have spoken before me. University of Maryland, College Park, Col- coming a citizen, such individuals I urge the Senate to approve this con- would automatically be eligible for SSI lege of Agriculture & Natural Resources. ference report. University of Maryland, Eastern Shore, and for food stamps should they qual- School of Agricultural & Natural Science. Mr. KYL. Mr. President, when Con- ify. University of Massachusetts—Amherst, gress passed the Personal Responsi- Mr. President, now is not the time to College of Food & Natural Resources. bility and Work Responsibility Rec- reverse our course on welfare reform, Michigan State University, College of Ag- onciliation Act of 1996, it ended public as such reform applies both to our U.S. riculture & Natural Resources. welfare for most aliens who had not citizens and to our immigrants. Amer- University of Minnesota, College of Agri- worked to earn their benefits. ica is a land of immigrants, yes. But, cultural, Food & Environmental Sciences. The 1997 Balanced Budget Act re- Mississippi State University, Division of we must not perpetuate dependence on Agriculture, Forestry & Veterinary Medi- versed some of the provisions of that public benefits. Our nation must be one cine. bill by reinstating eligibility for the of opportunity for our immigrants, not University of Missouri—Columbia, College Supplemental Security Income (SSI) one that skirts the law by providing a of Agriculture, Food & Natural Resources. program for disabled and elderly immi- loophole for some immigrants to be- Montana State University, College of Agri- grants who were in the country before come dependent on public assistance in culture. August 22, 1996, the day the omnibus the future. The Senate should remove University of Nebraska, Agriculture & Nat- welfare reform package passed into ural Resources. the provisions of the conference report University of Nevada, College of Agri- law. But the act also reinstated SSI for that continue food stamp benefits for culture. immigrants who were in the country as immigrants in the future. University of New Hampshire, College of of August 22, 1996 and become disabled Mr. KENNEDY. Mr. President, later Life Sciences & Agriculture. in the future. The SSI program is today, we are voting on a motion by

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4659 Senator GRAMM to recommit the con- not apply for naturalization until they preserve that in a humane way. Provi- ference report on the Agricultural Re- have lived in the United States for five sions that were made under SSI for in- search bill. I strongly oppose Senator years, there will be a gap in their food come for the very persons who are GRAMM’S motion. stamp eligibility, depending on how being talked about today—the elderly, The 1996 welfare law allows refugees long the naturalization backlog is at the children, the disabled, and those to receive federal benefits, including the time they apply. who have come with a well found sense SSI, Medicaid and food stamps, for The naturalization backlog is ex- of persecution to escape torture—will, their first five years in the United pected to increase without an increase in fact, be aided in a humane way that States. It made this exception because in INS funding. Record numbers of I believe all Senators would want to refugees and asylum-seekers generally legal immigrants are applying for support. come to the United States with little citzenship—more than a million per I thank the Chair. more than the shirts on their backs year. This number is not expected to after escaping persecution abroad. decrease. f They have no sponsors. The may have Few actions are a more important NATIONAL SCIENCE FOUNDATION disabilities which make it difficult to part of our time-honored commitment AUTHORIZATION ACT OF 1997 work. They need time to get on their to freedom around the world than feet, and begin to recover from the per- opening America’s doors to those who The PRESIDING OFFICER. Under secution they fled in their former coun- are denied freedom and face persecu- the previous order, there will now be 10 try. tion in their own lands. minutes of debate equally divided on S. After five years in the United States, Whether it is Vietnamese fleeing 1046, which the clerk will report. refugees can apply for citizenship. Un- communism, Bosnians exiled by ethnic The assistant legislative clerk read fortunately, there are serious backlogs cleansing, Jews from the former Soviet as follows: of naturalization applications at INS. Union fleeing anti-semitism, Burmese A bill (S. 1046) to authorize appropriations In many parts of the country, it takes seeking safe haven from oppression, or for fiscal years 1998 and 1999 for the National two years to complete the naturaliza- Africans escaping political retribution Science Foundation, and for other purposes. tion process and obtain citizenship— and genocide, our refugee program The Senate proceeded to consider the and these backlogs are not expected to stands ready to aid, protect, and reset- bill. go down in the near future. Often, the tle those who need our help. Part of Mr. JEFFORDS addressed the Chair. earliest a refugee will gain citizenship such help is ensuring that these refu- The PRESIDING OFFICER. The Sen- is after seven years in the United gees’ needs are met in their new home ator from Vermont. States. in this country. Those needs will not be AMENDMENT NO. 2386 As we did last year with SSI and met if their eligibility for food stamps (Purpose: To authorize appropriations for fis- Medicaid, the Agricultural Research is not extended to seven years. cal years 1998, 1999, and 2000 for the Na- bill extends the time that a refugee can I urge my colleagues to oppose Sen- tional Science Foundation, and for other receive food stamps from five to seven ator GRAMM’s motion. purposes) years. Senator GRAMM wants to deny Mr. LUGAR addressed the Chair. Mr. JEFFORDS. I understand there this extension to refugees who entered The PRESIDING OFFICER. The Sen- is a substitute amendment at the desk. the United States after the welfare law ator from Indiana. I ask for its immediate consideration. was enacted. Mr. LUGAR. Mr. President, I want to The PRESIDING OFFICER. The If we do not extend this time limit summarize our debate—which has been clerk will report. from five to seven years, thousands of a good one this morning—by saying The assistant legislative clerk read refugees who have applied for citizen- that it is very important that we act as follows: ship could lose food stamps as they today to pass the conference report. As The Senator from Vermont (Mr. JEF- wait in the naturalization backlog for the distinguished Senator from Mis- FORDS), for Mr. MCCAIN, Mr. HOLLINGS, Mr. their applications to be processed. sissippi stated eloquently and cor- JEFFORDS, Mr. KENNEDY, Mr. FRIST, Mr. This group includes refugees like rectly, failure to do that will throw ROCKEFELLER, and Ms. COLLINS, proposes an Dien Nwin, who fled Vietnam in 1992 into chaos farmers who are now plant- amendment numbered 2386. with his wife and children. Dien fought ing and who count upon crop insur- Mr. JEFFORDS. Mr. President, I ask on the side of the United States during ance, reformed albeit as we have re- unanimous consent that reading of the the Vietnam War and was imprisoned formed it, as an underlying safety net amendment be dispensed with. in a Communist re-education camp for in the year of El Nino, remarkable The PRESIDING OFFICER. Without 9 and-a-half years. He was worked hard weather circumstances, it is unthink- objection, it is so ordered. and supported his family for over five able simply to kick away that safety (The text of the amendment is print- years. He applied for citizenship, but net through our indifference. ed in today’s RECORD under ‘‘Amend- he’s stuck in the backlog. Secondly, Mr. President, the agri- ments Submitted.’’) Now, Dien and his family have fallen culture research, which has been char- Mr. MCCAIN. Mr. President, I rise to on hard times. In the past two years, acterized as an entitlement, along with offer an amendment to the S.1046, the Dien has developed nasal cancer and crop insurance and other provisions, of National Science Foundation Author- lung cancer. He has been unable to course, is a 5-year program, as is our ization Act of 1998. This amendment work since then, and his family has farm bill program. authorizes the National Science Foun- had to use food stamps to survive. Dien We have payments to farmers and dation for a period of three fiscal years, is lucky. He entered the United States Conservation Reserve Program pay- 1998, 1999 and 2000. before the passage of the welfare bill. ments for the environment. We have I am very pleased to see that this Under Senator GRAMM’s motion to re- designated $120 million for vital re- amendment represents a bi-partisan ef- commit, Dien would be cut off from re- search which we believe is necessary fort by both the Commerce and the ceiving food stamps after his initial simply to fight back the pest diseases Labor Committees. These two Commit- five years in the United States. that are now jeopardizing our growth. tees share jurisdiction of the National Last year, over 25,000 refugees came Mr. President, the yield of wheat in Science Foundation. I would also like to the United States fleeing religious our country has been flat in yield per to thank the co-sponsors of this persecution in the Former Soviet acre over the last 15 years of time. The amendment, Senators JEFFORDS, HOL- Union. These refugees included Jews, breakers are not occurring, and we LINGS, KENNEDY, FRIST and ROCKE- Evangelical Christians, Mormons and must triple and not have a zero gain. FELLER, for their support of this other religious minorities fleeing the Finally, let me simply say that there amendment. restriction of their religious liberties. will not be people lined up all over the The National Science Foundation Under Senator GRAMM’s amendment, world trying to get into America to (NSF) plays a critical role in the devel- these refugees will only be eligible for ruin our welfare reform. As a matter of opment of much of this country’s food stamps for their first five years in fact, welfare reform has brought about science and technology infrastructure. the United States. Since refugees can- a better America. This bill will help Its efforts cover a variety of issues

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4660 CONGRESSIONAL RECORD — SENATE May 12, 1998 such as education—from the kinder- foundation contained within S. 1046 engineering and environmental science garten to the post-doctorate levels—re- and contains improvements proposed at colleges and universities. Equally search and development, and Internet by both Committees. This legislation important to the future of our Nation, development. will make an important investment in NSF became a catalyst for the reform Given that half of the new economic our nation’s scientific and techno- of math and science education. growth in the economy is due to tech- logical future. The manager’s amendment which we nological advancements, the role of the S. 1046, as amended, will authorize are bringing to the floor authorizes National Science Foundation in basic more than $9 billion for research and more than $11 billion for research and research is an important one. Many development activities, and $2 billion development activities at NSF over the companies in the private sector have for math and science education activi- next three years—$3.5 billion in fiscal indicated that they cannot afford to ties over the next 3 years. The bill will year 1998, $3.7 billion in fiscal year 1999, conduct the long term basic research support more than 19,000 projects at and nearly $3.9 billion in fiscal year required for many of these techno- 2,000 colleges, universities, primary, el- 2000. This Federal funding will be very logical advances. They have come to ementary, and secondary schools well invested. Although the National rely upon the basic research of the Na- across the Nation. Science Foundation’s budget accounts tional Science Foundation and other This authorization bill also recog- for only 4 percent of Federal research government agencies as the basis for nizes that the future of science in this and development funding, NSF pro- many of their commercial products. country will be determined by our vides 25 percent of Federal support to For it is through the commercializa- basic educational policy. Two billion academic institutions for research. tion process of these research results dollars is authorized over the next 3 NSF grants support more than 19,000 that the government and the American years for K through 12 math and research and education projects at 2,000 public benefits. From this process, new science systematic reform, under- colleges, universities, primary, elemen- industries are started, jobs are created, graduate science education activities, tary, and secondary schools, busi- and many new products are generated graduate education, and efforts to ad- nesses, and other research institutions. to improve our quality of life of all vance the public understanding of Competition for these grants is fierce. people. science. These efforts will continue to NSF funds only about one-third of the Because of the research at the Na- contribute to improvements in the edu- 30,000 proposals it reviews annually and tional Science Foundation, we have the cation we offer to our children and the grants that survive this review Internet today. The growth of the maintain a strong cadre of scientific process represent the finest proposals Internet and the role it is playing in leaders needed to remain competitive that the research community can put electronic commerce today is far be- well into the next century. forward. The importance of this investment in yond anyone’s expectations when the S. 1046 provides a strong bipartisan basic research cannot be exaggerated. project was started. We look forward to response to the research and science Over the past decade, private sector in- the National Science Foundation’s in- education challenges facing the Na- vestment in research and development volvement in the Next Generation tion. The strong bipartisan support which has eclipsed Federal investment in Internet project. public science. However, the Federal In a time when we are hearing of the NSF enjoys is a reflection of its his- investment in basic science is a major terrible performance of America’s stu- toric contribution to both our national contributor to industrial innovation in dents in math and science education, it security and our economic competi- the United States. A recent review of is important that we do our jobs as tiveness. The prominent role of science American industrial patent applica- members of the Senate and authorize in the American war effort during World War II left us with a new appre- tions revealed that the Government or agencies’ such as the National Science nonprofit foundations supported 75 per- Foundation to ensure that the federal ciation of the importance of research in establishing and preserving eco- cent of the main papers cited as the government is doing its share to im- foundation for new industrial innova- prove upon the lives of all Americans nomic and military security. Federally funded research led to the development tion. through education and other related A few of NSF’s contributions illus- of radar, sonar, blood plasma, sulfa- research activities. trate the importance of our investment nilamide, penicillin and the atomic I urge the other members of the Sen- in basic research and development: ate to support this amendment and the bomb. In 1944, President Roosevelt The Internet—Over the past decade, final passage of the bill. Again, I would charged Vannevar Bush, his chief NSF has transformed the Internet from like to thank the co-sponsors of this science adviser, with evaluating the a tool used by a handful of researchers amendment for their support and hard most effective way to harness this at the Department of Defense to the work. technological infrastructure in peace- backbone of this Nation’s university Mr. JEFFORDS. Mr. President, I time. The Bush report—Science—The research infrastructure. Today the know of no objection to the amend- Endless Frontier—established a strat- Internet is on the verge of becoming ment. I urge its adoption. egy and rationale for Federal support the Nation’s commercial marketplace. The PRESIDING OFFICER. Without of basic research. The report argued, Nanotechnology and ‘‘Thin Film’’—50 objection, the amendment is agreed to. and argued correctly, that ‘‘a nation years ago scientists developed the tran- The amendment (No. 2386) was agreed which depends upon others for its new sistor and ushered in the information to. basic scientific knowledge will be slow revolution. Today 3 million transistors Mr. JEFFORDS. Mr. President, it is in its industrial progress and weak in can fit on a chip no larger than the a great pleasure to come before you its competitive position in world trade first fingernail-sized individual tran- today to seek Senate approval of S. regardless of its mechanical skill.’’ sistor. NSF’s investments in nanotech- 1046, the National Science Foundation This report provided the blueprint for nology and ‘‘thin films’’ are expected Authorization Act of 1998. I introduced creation of the National Science Foun- to generate a further 1,000-fold reduc- this legislation, along with my col- dation. tion in size for semiconductor devices leagues Senators KENNEDY, FRIST, and NSF was established in 1950 to ‘‘de- with eventual cost-savings of a similar COLLINS, on July 22, 1997. The bill was velop and encourage the pursuit of a magnitude. reported unanimously by the Senate national policy for the promotion of Genetics—A great deal of attention is Committee on Labor and Human Re- basic research and education in the paid to the effort conducted by the NIH sources on October 15, 1997. This bipar- sciences.’’ Following the 1957 Soviet to map the Human Genome. What is tisan proposal will be further enhanced launch of the Sputnik satellite, this often overlooked; however, is the crit- by the manager’s package I am bring- mission was expanded to provide great- ical role played by NSF in supporting ing to the floor on behalf of my col- er support for science education and the basic research that leads to the leagues Senators MCCAIN, HOLLINGS, literacy. Over the next three decades, breakthroughs for which NIH justly re- KENNEDY, FRIST, ROCKEFELLER, and NSF became the primary Federal spon- ceives so much credit. Research sup- COLLINS. This package reflects similar sor of basic research in mathematics, ported by NSF was key to the develop- bipartisan cooperation, builds upon the physical sciences, computer science, ment of the polymerase chain reaction

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4661 and a great deal of the technology used sources directorate over the next three collaboration, NSF has elected to ex- for sequencing. years. This directorate has primary re- tend the award for an additional five Magnetic Resonance Imaging—MRI sponsibility for NSF’s education and years. In addition, Trinity College was technology is widely utilized to diag- training activities. In contrast with this year awarded $1.2 million to im- nose a wide array of illnesses. The de- the programs of the Department of prove the instruction of math and velopment of this technology was made Education, NSF science and math edu- science in our primary, secondary, and possible by combining information cation programs are experiments which elementary schools. gained through the study of the spin link learning and discovery. Proposals This legislation builds upon partner- characteristics of basic matter, re- are selected by outside peer review ships like that forged with the State of search in mathematics, and high flux panels on the basis of their potential to Vermont. It provides a strong bipar- magnets. The Next Generation Nuclear provide long-lasting and broad impact. tisan response to the research and Magnetic Resonance Imager, currently NSF has made notable contributions in science education challenges facing our under construction, will allow for the the areas of curriculum and instruc- Nation. I also want to note that it re- identification of the 3-dimensional tional material development, profes- flects the hard work of staff for both structures of the 100,000 proteins whose sional development, and improved the Committees. I particularly want to ex- genes are being sequenced by the HGP. participation in science research and press my appreciation for the work of Buckeyballs—One of the most excit- science education of women, minori- Scott Giles of my staff, Danielle ing recent discoveries in the world of ties, and individuals with disabilities. Ripich, Marianna Pierce and Jonathan material science was the discovery of The legislation before you strengthens Halpern of Senator KENNEDY’s staff, carbon-60. Although this occurs in na- and enhances these efforts. Floyd DesChamps of Senator MCCAIN’s ture, its discovery (which won the re- The Education and Human Resources staff and Lila Helms of Senator HOL- searchers a Nobel prize) was the prod- Directorate also provides funding for LINGS’ staff and I urge all my col- uct of work by astronomers. This in the Experimental Program to Stimu- leagues to support this package. turn led to the discovery of the late Competitive Research. As noted in I urge all of my colleagues to support nanotube which has been found to be the Committee report, this program this package. 100 times stronger than steel and a plays an important role in ensuring Mr. KENNEDY addressed the Chair. fraction of the weight. Nanotubes may that small states, like Vermont, build The PRESIDING OFFICER. The Sen- produce cars that weigh no more than the capacity to more fully participate ator from Massachusetts. 100 pounds. in NSF’s research programs. The pro- Mr. KENNEDY. Mr. President, I CD Players—CD players rely on data gram has been particularly successful strongly support passage of the Na- compression algorithms that were de- in developing infrastructure in those tional Science Foundation Authoriza- veloped using an NSF grant. These al- states where a limited research base tion Act. It is a privilege to join Sen- gorithms were first used in the trans- has made the attraction and retention ator JEFFORDS, Senator MCCAIN, and mission of satellite data and now pro- of young faculty, equipment purchases, Senator HOLLINGS in sponsoring this vide the foundation for new develop- network connections, human resource bipartisan legislation, which looks to ments in data storage. development, research project develop- the future by strengthening our na- Jet Printers—The mathematical ment, and technology transfer dif- tional commitment to research and de- equations that describe the behavior of ficult. Such infrastructure building re- velopment. It also ensures the contin- fluid under pressure provided the foun- mains a crucial part of guaranteeing ued success of the teacher training and dation for developing the ink jet print- that the participating states are com- professional development programs of er. petitive and must be continued. the NSF. In addition, it will improve Plant Genome—Research into the ge- The Foundation has initiated a new science and math education from kin- nome of a flower plant with no pre- co-funding effort which is designed to dergarten to graduate school, and help vious commercial value, led to the dis- integrate the research community in maintain America’s competitive edge covery of ways to increase crop yields, the EPSCoR states more completely into the 21st century. the production of plants with seeds into the larger research community. As Few federal agencies deliver as much having lower polyunsaturated fats and research funding for NSF increases in ‘‘bang for the buck’’ as the National to the development of crops that general, I expect that the matching re- Science Foundation. It is now funding produce a biodegradable plastic. quirements for cofunding will not re- 20,000 peer-reviewed science and edu- Artificial Retina—Researchers at sult in the displacement of non- cation projects at more than 2,000 col- North Carolina State University have EPSCoR NSF funding which institu- leges, universities, schools, businesses designed a computer chip that may tions would otherwise receive. I look and research facilities in all parts of pave the way for creation of an artifi- forward to working closely with the the United States. cial retina. Problems with bio-compat- Foundation to ensure continued Last year, these projects involved ibility have been solved by researchers growth in the co-funding initiative 27,000 senior scientists, 21,000 graduate at Stanford who developed a synthetic without reducing the amount available students, 28,000 undergraduates, 110,000 cell membrane that adheres to both for standard grants. precollege teachers, and 14,000 students living cells and silicon chips. And finally, I want to proudly note from kindergarten through the twelfth Cam Corders—Virtually all cam- the partnership that has been forged grade. Almost 15 million people are af- corders and electronic devices using between the National Science Founda- fected by NSF activities through muse- electronic imaging sensors are based on tion and the State of Vermont. NSF ums, television programs, videos, jour- charge-coupled devices. These devices, currently supports over 74 projects in nals, and outreach activities. sensitive to a single photon of light, the Green Mountain State. Grants have NSF accounts for 4 percent of total were developed and transformed by as- been provided to the Barre Town Ele- federal research and development fund- tronomers interested in maximizing mentary School, Middlebury College, ing. But it provides 25 percent of basic their capacity for light gathering. Mountshire Museum of Science, research support at academic institu- I could go on at length about the Woodbury College, Cabot School, tions. It provides as much as half of all many technological advances that we Charlestown Elementary School, St. federal funding for research in fields enjoy today that are attributable to Michael’s College, JOHNSON State Col- such as mathematics, computer basic research supported by NSF. lege, Trinity College, and the Univer- science, environmental science, and These advances would not be possible, sity of Vermont. In 1992, the Vermont the social sciences. however, if we as a nation did not con- Institute for Science, Math and Tech- NSF also plays an important role in tinue to train and support a cadre of nology received a five-year award of training teachers and developing math the world’s most talented researchers. $7.9 million to establish a collaborative and science curricula to prepare stu- S. 1046 recognizes the importance of statewide education reform effort link- dents for tomorrow’s challenges. It pro- maintaining an investment in human ing business, higher education, govern- motes innovative education programs resources and authorizes more than $2 ment, and community sectors. This in partnerships with colleges, univer- billion for the education and human re- year, as a result of the success of this sities, elementary and secondary

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4662 CONGRESSIONAL RECORD — SENATE May 12, 1998 schools, science museums, and state that scientists can undertake longer- likewise cultivated strong university- and local governments. These programs range projects. industry affiliations with centers fo- encourage the discovery of new knowl- The legislation also strengthens ef- cused on specific research areas related edge and its application to real-world forts to improve science, mathematics, to industry needs. For example, the problems. engineering, and technology training modern Internet browser was developed NSF support for basic research and for teachers and students. In addition, at the NSF National Center for Super- science education has also had an im- it authorizes the Office of Science and computing Applications at the Univer- portant role in encouraging economic Technology Policy in the White House sity of Illinois; a turbomachinery com- growth over the last fifty years. Ac- to prepare a report analyzing indirect putational model developed at the En- cording to a recent study, each dollar costs, which play a vital but little un- gineering Research Center for Com- that the federal government spends on derstood role in federal R&D spending. putational Field Simulation at Mis- basic research contributes 50 cents or The National Science Foundation is sissippi State University is now used more to the national output each year. doing an outstanding job in fulfilling by all jet engine manufacturers; the In other words, investing in NSF pays its missions. Passage of this bill will Center for Molecular Biotechnology at for itself in two years. These benefits strengthen America’s leadership in the University of Washington is devel- are spread throughout the economy, science and technology, and I urge all oping tools for industry use to analyze enhancing the productivity of the na- of my colleagues to support this impor- and interpret the information content tion’s workforce and improving the tant legislation. of biological molecules such as DA and quality of life for all Americans. I congratulate our chairman for proteins, to analyze and interpret the At the Massachusetts Institute of bringing us to this point in the legisla- information content to biological mol- Technology, for example, NSF funds tive process. ecules; and the Center for High Pres- have enabled scientists to explore the Mr. MCCAIN. Mr. President, I would sure Research at the State University commercial applications of their re- like to engage Senator LOTT, Senate of New York at Stony Brook works search. Technology developed at MIT Majority Leader, and Senator JEF- with several companies to develop new had a role in the launching of 13 com- FORDS, Chairman of the Labor and ways that industry can use high-pres- panies in 1995. They manufacture prod- Human Resources Committee, in a col- sure technology to produce exotic ma- loquy on certain programs within the ucts ranging from computer chips to terials, such as industrial-grade dia- National Science Foundation. communication networks. These enter- monds. Hundreds of similar contribu- Mr. LOTT. I would be pleased to join prises have bolstered the state and tions can be cited from these and other Senator MCCAIN and Senator JEFFORDS local economies, and provided jobs and NSF-funded university centers. in a colloquy on this subject. I believe this program should be opportunities for many citizens. In Mr. MCCAIN. As Chairman of the fact, a 1997 report by BankBoston greatly expanded and that the NSF Commerce Committee, I have noted should become even more active in en- found that research and development with great pleasure the success and im- at MIT has created 125,000 jobs in Mas- suring the development of long-term pact on the NSF’s program to establish vision and strategic planning of each sachusetts. outstanding research and education In our state, NSF is funding a wide center. Further, NSF should build on centers at colleges and universities in successful centers and seek ways to range of other projects on the cutting partnership with industry. These cen- edge of research. NSF grants have been sustain the investment with continual ters are making great contributions to support when appropriate. Areas that instrumental in building the state’s research, science, and technology edu- biotechnology industry, mapping the show great potential for the future in- cation, and the economic development clude: computation engineering, bio- oceans at the Woods Hole Oceano- and global competitiveness of our na- graphic Institute, developing new technology and bioengineering, manu- tion. facturing, and industrial systems, elec- superconductors at the Material Re- Mr. JEFFORDS. As Chairman of the search Science and Education Center tronics and communications systems, Labor Committee, I too have been a materials processing including poly- at Harvard, and creating cooperative strong supporter of the NSF’s efforts to partnerships with schools, parents, mers and composite materials, manu- strengthen research and education ef- facturing systems, remote sensing sys- businesses, and community organiza- forts at colleges and universities across tems and technologies, and optical sys- tions to strengthen math and science the nation. NSF provides support to tems as well as ship building, tele- education. over 2000 colleges and universities and Nationwide, NSF grants cover a communications and super-computing nearly 17,000 researchers nation-wide. supercomputer technology for univer- broad range of projects from providing Mr. LOTT. A particular success is the health care to fighting crime to pro- sity research centers. Engineering Research Centers Program Mr. MCCAIN. I thank the distin- tecting the environment. Specific which has stimulated focused univer- guished Majority Leader and the Labor grants are improving the treatment of sity-industry partnerships in research Committee Chairman, for their in- arrhythmia, facilitating more accurate and education, and has served as a cat- sights into these matters and how im- identification of crime suspects, devel- alyst for economic development within portant research and education is to oping new biotechnology techniques to the United States. Much success can be the overall National economy. cleanup hazardous waste sites, enhanc- attributed to the Foundation’s leader- Mr. JEFFORDS. The distinguished ing the speed of semiconductors in ship in ensuring each center estab- Majority Leader should be commended processing information, and even ana- lishes a clear vision and conducts care- for his strong support for basic sci- lyzing the Antarctic meteorite to de- ful strategic planning involving their entific and engineering research and I termine whether life existed on Mars. industry partners. Among the impacts look forward to working with him to NSF funds benefit the humanities as of this program are: Next generation strengthen the engineering research well. The Next Generation Internet engineering systems developed from centers program. Project will give researchers access to new knowledge discoveries and new Mr. LOTT. I also would like to thank information from the world’s libraries technological developments; Tech- Senator MCCAIN and Senator JEFFORDS and museums at rates that are 100 to nology transferred to hundreds of com- for their leadership in these areas of 1,000 times faster than today’s Inter- panies and governmental agencies; science and technology. net. Technical assistance and training pro- f This authorization Act will put re- vided for industry and government; search and development on a more se- Thousands of undergraduate and grad- SMALL BUSINESS INNOVATION cure footing over the next two years. It uate students involved in the research RESEARCH PROGRAM will increase NSF funding by 10 percent of the centers and exposed to next gen- Mr. ENZI. I would like to raise an in FY1999 and 3 percent in FY2000, eration systems research and develop- issue that has been brought to my at- which are consistent with the levels ment; and Outreach to K–12 and to tention since the Labor Committee re- recommended in President Clinton’s underrepresented groups. ported this bill in October. It relates to FY1999 budget. The increased funding NSF Science Technology Centers and the Small Business Innovative Re- will provide larger award amounts, so other NSF university centers have search (SBIR) program and I want to

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4663 highlight the fact that recent NSF de- with SBA is critical to ensuring a pect to become a champion for the Na- cisions may have a negative effect on strong SBIR program? tional Science Foundation and for sci- this very successful program. I have Mr. BURNS. I believe the NSF and entific research, education and tech- worked closely on small business issues all agencies participating in the SBIR nology. But, I quickly became a strong with my friend from Montana, Senator program should coordinate with the supporter. SBA in determining their extramural CONRAD BURNS, who also serves on the I have seen what this agency can do, research budgets. This is what the GAO Small Business Committee with me. It and its importance to the people in our is not my intention to hold up this leg- recommend. Mr. ENZI. I thank the Senator from states. NSF is about seeking new sci- islation by offering an amendment at entific knowledge and using that this time, but I want the Chairman, Montana and I thank you, Senator JEF- knowledge. It is about helping the re- Senator JEFFORDS, to know that it is a FORDS, for considering this important searchers and teachers in our colleges very important issue for me. I would issue. and universities and helping them to like to yield to Senator BURNS for a Mr. HOLLINGS. Mr. President, I rise make certain that their students re- minute and ask him to describe the sit- today to encourage my colleagues to ceive a good education, with scientific, uation. support passage of S. 1046, the National Mr. BURNS. On August 8, 1997, Ms. Science Foundation Authorization Act mathematical, engineering and techno- Linda G. Sundro, Inspector General for of 1998. University research continues logical opportunities. It is about offer- the National Science Foundation (NSF) to be a great American success story, ing better training and materials for recommended that NSF reduce their and NSF can be proud of its role in our K-12 teachers. And, it is about de- SBIR set-aside by approximately $2.5 helping to create and sustain this great veloping infrastructure, such as ad- million by excluding certain education research enterprise. We continue to ask vanced telecommunication and com- and training costs, as well as program much of NSF and our universities be- puting opportunities. Such infrastruc- support overhead costs from their total cause we know what this system has ture is particularly important for rural extramural R&D budget. Although contributed to the Nation in the past, states, such as Montana. funded by the Congress as part of their and we know that greater contribu- NSF has funded research which led to overall R&D budget, the Inspector Gen- tions await us in the future. Montana State University’s Jack eral concluded that these costs could Mr. President, by themselves, univer- Horner’s now famous work on dino- be excluded because they do not fit the sities cannot solve our national prob- saurs. It has helped us start new pro- statutory definition of R&D as set lems such as technological competi- gram in computational biology. It has forth in the Small Business Research tiveness, the environment, and social funded an Engineering Research Cen- and Development Enhancement Act of issues like crime, poverty, and edu- ter, which has undertaken cutting edge 1992, (Public Law No. 102.564, 15 U.S.C. cation. However, the research and research in networking connection and Part 638(e)(5)). trained young people provided by our supported other networking and tele- The Inspector General’s rec- universities will continue to play a communications programs. There is in- ommendation does not take into con- major role in addressing these pressing terest in new research opportunities on sideration the guidance provided by the issues. S. 1046 authorizes the continu- life in extreme environments, which Congress in determining the calcula- ation of the vital programs of NSF that could include the Yellowstone area, tion. The legislation requires each support these efforts, including and in the plant genome initiative. EPSCoR which has helped strengthen agency ‘‘which has an extramural I also want to say a few words about science and technology in many of our budget for research or research and de- a program that is of particular impor- smaller states. velopment’’ (15 U.S.C. Part 638(f)(1)) to tance to my state—the Experimental I would like to take a moment and set-aside a percentage for the SBIR Program to Stimulate Competitive Re- thank Senator MCCAIN, Senator KEN- program. The legislation clearly de- search (EPSCoR). EPSCoR was created NEDY, and Senator JEFFORDS for their fines extramural budget as ‘‘the sum of to assist states such as Montana be- efforts in getting this bill passed. The the total obligations minus amounts come more competitive in the federal managers’ amendment before the Sen- obligated for such activities by em- R&D arena. Unfortunately, federal ate today reflects agreement by the ployees of the agency in or through R&D funds are highly concentrated in Commerce Committee and the Labor Government-owned, Government-oper- a few universities in a few states. That Committee on many issues relating to ated facilities * * *’’ (15 U.S.C. Part 638 is not justifiable. Today’s global econ- NSF’s programs and funding. The two (e)(1)). Under existing law, the only ex- omy requires that all parts of our na- committees worked well together with- clusion from the calculation is for tion share in scientific and technology in the guidelines set forth in the stand- funds dedicated to intramural R&D ef- development if we are to keep our en- ing order of March 3, 1988. Because of forts. tire nation and its industries and work- In its April 17, 1998 report on the this bipartisan effort to address issues force competitive. Today, we know SBIR program, the General Accounting that are within the jurisdiction of the that scientific and technological prob- Office identified the calculation of the two committees, this is a good bill, and lems and issues in one area of the coun- extramural budget as an issue for the I encourage my colleagues to support try are likely to affect people in other SBIR program. Their analysis found its passage. areas. And, we know that we cannot that each participating agency was uti- Mr. BURNS. Mr. President, I am have a healthy national science and lizing different methodologies in the pleased to support the National technology system unless there is calculation. The GAO recommended Science Foundation (NSF) authoriza- widespread support throughout our that the SBA issue guidance to the par- tion bill, which is before us today. country for it. ticipating agencies to ensure consist- Prior to this Congress, when I became ency across the program. The SBA chairman of the Communications Sub- The EPSCoR program is the base for agreed with this recommendation. committee, I served as chairman of the much of our rural states’ scientific and Accordingly, I believe the NSF In- Subcommittee on Science, Technology technological activities. It helps Mon- spector General’s recommendation is and Space, which has jurisdiction over tana and 17 other states develop infra- inconsistent with the current law and the authorizations for the NSF. I con- structure. It helps us develop new pro- would ask that the Director of the Na- ducted several hearings on NSF during grams and take advantage of special tional Science Foundation hold the that time. I am also a member of the opportunities. It has recently been as- recommendation in abeyance until Senate Appropriations Subcommittee sisting our states on participating such time as the SBA issues guidance on VA-HUD Independent Agencies, more fully in other NSF programs. to the participating SBIR agencies. which funds the NSF. As a result, I And, it was instrumental in ensuring Mr. ENZI. Would the Senator yield have had the opportunity to get to that the EPSCoR states participate in for a question? This is clearly a very know this agency and its program as the vBNS connections program and the important issue for members of the well. Next Generation Internet initiative. I Small Business Committee. Would the I will have to tell you that when I believe in the EPSCoR program, and Senator agree that NSF’s coordination came to the U.S. Senate, I did not ex- would like to see the program expanded

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4664 CONGRESSIONAL RECORD — SENATE May 12, 1998 in terms of financial assistance, espe- the bill was passed, and I move to lay They looked at Joyce’s profile and they cially when NSF funding overall is in- that motion on the table. decided: A healthy woman in her thir- creasing and also since the co-found- The motion to lay on the table was ties, we can’t spend more than $28 a ing, which is scheduled to increase in agreed to. month on Joyce. this budget year, should be matched by Mrs. BOXER addressed the Chair. I will conclude with this, Mr. Presi- a similar increase in the base EPSCoR The PRESIDING OFFICER. The Sen- dent. The HMO’s accountants decided program. ator from California. that Joyce should cost the HMO $28 a I know that the report prepared last Mrs. BOXER. Mr. President, I ask month, and they told the doctor, ‘‘If fall by the Senate Labor and Human unanimous consent that I may speak she costs you any more than that, your Resources Committee endorsed by as in morning business for 3 minutes. clinic will have to pay out of its own EPSCoR program, and we on the Sen- The PRESIDING OFFICER. Without pocket.’’ So there was a deal made to ate Commerce, Science, and Transpor- objection, it is so ordered. give incentives to that clinic not to tation Committee are equally sup- f treat this woman, and she is gone. She portive. PATIENTS’ BILL OF RIGHTS is gone forever from the lives of her The PRESIDING OFFICER. Under husband and her beautiful son, and she the previous order, S. 1046 is deemed Mrs. BOXER. Mr. President, earlier died at 34. read a third time, the Labor Com- this morning, some of us were on the I have to say, when we stand up here mittee is discharged from further con- floor urging the Senate to bring up the day after day with these cases, it is not sideration of H.R. 1273 and the Senate Patients’ Bill of Rights, a very impor- to hear the sound of our own voices, be- will now proceed to its consideration. tant bill that would essentially protect cause there are thousands and thou- Under the previous order, all after the patients from decisions made by ac- sands of stories like this, and people enacting clause is stricken, the text of countants and bureaucrats in insur- want action. They want decisions made S. 1046, as amended, is inserted in lieu ance companies and have their health by physicians. They want patients and thereof, and the bill is deemed read a care decisions made by physicians. physicians to be honest with each third time. I was talking with the Senator from other. They don’t want incentive pay- The bill (H.R. 1273), as amended, was North Dakota who has been presenting ments to doctors so that they will not deemed read a third time. a number of cases that proves our point be treated. This is a tragedy that you Mr. JEFFORDS. Mr. President, I ask as to why this legislation is needed, cannot even measure, Mr. President. I for the yeas and nays. and he shared with me a most extraor- call on the leadership to allow us to The PRESIDING OFFICER. Is there a dinary case coming out of California. I bring up the Patients’ Bill of Rights. I sufficient second? am going to tell the Senate about this yield the floor. There is a sufficient second. case, because we cannot close our eyes The yeas and nays were ordered. to what is happening. f The PRESIDING OFFICER. The I share with you the case of Joyce RECESS UNTIL 2:15 P.M. question is, Shall the bill pass? On this Ching from Agoura, CA. Joyce Ching The PRESIDING OFFICER. Under question, the yeas and nays have been lived with her husband David and 5- the previous order, the Senate will ordered, and the clerk will call the year-old son Justin. In 1992, when stand in recess until 2:15 p.m. role. David switched jobs, he was offered an The legislative clerk called the roll. Thereupon, at 12:47 p.m., the Senate array of plans, but Joyce convinced Mr. NICKLES. I announce that the recessed until 2:15 p.m.; whereupon, the him to join an HMO because she want- Senator from Oklahoma (Mr. INHOFE) is Senate reassembled when called to ed the entire family to go to the same necessarily absent. order by the Presiding Officer (Mr. place to get their care. The result was announced—yeas 99, COATS). nays 0, as follows: In the summer of 1994, Joyce got f [Rollcall Vote No. 127 Leg.] sick. She began to suffer from severe YEAS—99 abdominal pain and from rectal bleed- AGRICULTURAL RESEARCH, EX- ing. The pain was so excruciating that Abraham Faircloth Lott TENSION, AND EDUCATION RE- Akaka Feingold Lugar some days she couldn’t even get out of FORM ACT OF 1998—CONFERENCE Allard Feinstein Mack bed to be with her son. She visited her REPORT Ashcroft Ford McCain HMO doctor and was refused referral to Baucus Frist McConnell a specialist. The Senate continued with the con- Bennett Glenn Mikulski sideration of the conference report. Biden Gorton Moseley-Braun I am not a physician, but I know Bingaman Graham Moynihan enough people who have had problems, The PRESIDING OFFICER. Under Bond Gramm Murkowski and when you have rectal bleeding, the previous order, the hour of 2:15 hav- Boxer Grams Murray that is a sign that something is amiss. ing arrived, the Senator from Texas is Breaux Grassley Nickles recognized to move to recommit the Brownback Gregg Reed Yet, this HMO did not refer her to a Bryan Hagel Reid specialist. Do you know what her doc- conference report accompanying S. Bumpers Harkin Robb tor in the HMO told her? That her 1150. Burns Hatch Roberts Mr. ROBERTS addressed the Chair. Byrd Helms Rockefeller symptoms would be alleviated by a Campbell Hollings Roth change in diet. The PRESIDING OFFICER. The Sen- Chafee Hutchinson Santorum She changed her diet, and the symp- ator from Kansas. Cleland Hutchison Sarbanes toms were not alleviated. Fearing that Mr. ROBERTS. I suggest the absence Coats Inouye Sessions of a quorum. Cochran Jeffords Shelby her illness could hamper her chances of Collins Johnson Smith (NH) having a second child, she continued to The PRESIDING OFFICER. The Conrad Kempthorne Smith (OR) complain to the physician that her clerk will call the roll. Coverdell Kennedy Snowe The legislative clerk proceeded to Craig Kerrey Specter pain was getting worse, and the doctor D’Amato Kerry Stevens said, ‘‘Give your diet time,’’ and still call the roll. Daschle Kohl Thomas would not refer her to a specialist. Mr. WELLSTONE. Mr. President, I DeWine Kyl Thompson Finally, after nearly 3 months and ask unanimous consent that the order Dodd Landrieu Thurmond for the quorum call be rescinded. Domenici Lautenberg Torricelli countless visits, she was referred to a Dorgan Leahy Warner gastroenterologist, but it was too late. The PRESIDING OFFICER. Without Durbin Levin Wellstone Joyce, 34 years old, was diagnosed in objection, it is so ordered. Enzi Lieberman Wyden the final stages of colon cancer. PRIVILEGE OF THE FLOOR NOT VOTING—1 What is so shocking about this case Mr. WELLSTONE. Mr. President, I Inhofe is that her doctor never really listened ask unanimous consent that Mikki The bill (H.R. 1273), as amended, was to her concerns and never sent her to a Holmes, an intern, be allowed on the passed. specialist. When you find out why, it floor for the duration of this debate. Mr. JEFFORDS. Mr. President, I will send chills up and down your The PRESIDING OFFICER. Without move to reconsider the vote by which spine. There was a deal in that HMO. objection, it is so ordered.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4665 Mr. WELLSTONE. I suggest the ab- The major provision that I want to big dreams to come to America. But I sence of a quorum. address in this motion to recommit want the dream to be of working and The PRESIDING OFFICER. The with instruction is the provision hav- succeeding, not getting on welfare and clerk will call the roll. ing to do with food stamps. My col- food stamps. The legislative clerk proceeded to leagues will remember that while we What my amendment simply says is call the roll. had a contentious debate on welfare re- that the one provision of this bill that Mr. GRAMM. Mr. President, I ask form, when it came time to call the is prospective whereby providing food unanimous consent that the order for roll on August 22, 1996, we passed a stamps into the future for seven years the quorum call be rescinded. comprehensive welfare reform bill on would be stricken. However, the refu- The PRESIDING OFFICER. Without an overwhelming bipartisan vote. Part gees and asylees who are already here objection, it is so ordered. of that welfare reform process was set- on August 22, 1996, would be able to re- The Senator is recognized under the ting much higher standards on food ceive food stamps for seven years. previous order. stamps and eliminating the Our colleagues are going to say that MOTION TO RECOMMIT attractiveness of welfare in general, the world is coming to an end if we go Mr. GRAMM. Mr. President, I send a and food stamps in particular. We were back to conference and that somehow motion to the desk and ask for its im- this bill will die. Everybody in the Sen- trying to change the law to eliminate a mediate consideration. I will have it ate and everybody in the House knows situation where, over the last 25 years, read. that ag research is not going to die. we had seen a change in the welfare The PRESIDING OFFICER. The Everybody in the House and everybody law. People were actually being at- clerk will report the motion. in the Senate knows that crop insur- tracted to America not with their The legislative clerk read as follows: ance is not going to die. sleeves rolled up, but with their hands The Senator from Texas [Mr. GRAMM] If we send the bill back to con- moves to recommit the conference report on held out seeking benefits paid for by ference, we have an opportunity to S. 1150, the Agricultural Research, Exten- someone else’s labor. begin to correct problems with the bill. This bill, unfortunately, takes a sion, and Education Reform Act of 1998 to Both the Speaker and the majority the committee on conference with instruc- major step backward. This bill re-insti- leader of the House have said, in one tions to the managers on the part of the Sen- tutes $818 million worth of food stamps ate to insist that the expansion of Food forum or another, that they are not in that were eliminated in the welfare re- favor of this bill being considered in Stamp eligibility in Title V, Subtitle A, sec- form bill. I remind my colleagues that tion 503 shall only apply to refugees and the House. By sending it back to con- asylees who were lawfully residing in the the Senate did not vote on the food ference, we have an opportunity to United States on August 22, 1996. stamp provisions in this bill. In addi- begin the system of inducing modera- The PRESIDING OFFICER. The Sen- tion, the bill, as it was voted on in the tion into the bill, which I believe can ator from Texas. House, did not contain these food speed up the day we obtain funding for Mr. GRAMM. Mr. President, it is stamp provisions. Yet, in conference, agriculture research and crop insur- clear to me, from the debate we had as part of the age-old logrolling process ance. earlier, that it is going to be somewhat of putting a bill together to be a grab Let me say again that I support agri- difficult to get people to debate this bag for everybody, a provision was culture research, and crop insurance. I issue. However, let me try by being added that provided $818 million worth don’t think we should have to pay trib- frank and yet fair to everybody. I of food stamps for immigrants. The ute every time we put together a pro- would like to outline what happened to President was a major supporter of this gram to try to promote job creation this bill in conference, and why I be- provision. In fact, yesterday, our dis- and economic growth in America. I lieve it is important that this motion tinguished ranking member, Senator don’t think that every time we have an pass. HARKIN, called this provision a major agricultural bill that tries to move us First of all, let me remind my col- step toward fulfilling a promise that toward a more competitive agricul- leagues that the Senate adopted a bill was made by our President. tural system, we should have to pay to promote ag research. It is a bill that Well, our President was not for wel- tribute to people who always want an I would assume 100 Members of the fare reform when it was debated and add-on such as the food stamp provi- Senate support. basically was shamed into signing it. sions in this bill. The provision adding My State is a very substantial bene- What he said at the time was that he food stamps was little more than a ficiary of ag research. The institution intended to go back and undue major tribute for allowing this bill to move which I love more than anything, other parts of it. This provision, in fact, ful- forward. than my family, Texas A&M, is a major fills part of that commitment. We can pass this bill without the food ag research institution. Needless to This motion is drafted very, very stamp provisions, but I am suggesting say, no one should be surprised that I narrowly. It simply says to not touch that we deal with one narrow part of am in favor of ag research. In addition, the welfare benefits added back for the bill. I urge my colleagues to sup- I am a supporter of research in general. people that were already here on Au- port this provision, because in this pro- In 1965, we were spending 5.7 cents gust 22, 1996. Go ahead and take those vision we don’t take any benefits away out of every dollar we spent in the provisions, but don’t set out a provi- from the restoration contained in the budget on general research. That is sion in law that is giving new food bill for immigrants who were here now down to 1.9 percent of the budget stamps to people who might choose to when we passed the welfare bill in 1996. on research, because rather than in- come in the future. Certain legal immigrants who were vesting money in new technology, new There is a provision in this bill that here when the welfare bill passed will products, and new science for the next would give 7 years of eligibility for have benefits restored by this provi- generation, we are being driven by poli- food stamps to people who come and sion. This motion, if defeated, would tics to invest in the next election by who declare themselves refugees in the send the signal that we want to create spending money on programs that have future. Under the provision in the bill, new benefits in the future that would big constituencies in the next election whether they come next year or 20 allow you to come to America and can rather than beneficiaries in the next years from now, they can come and de- obtain food stamps. generation. Again, I support agri- clare themselves refugees and qualify That, I think, is the wrong signal. It culture research. The Senate bill went for 7 years of food stamps. Mr. Presi- is not a signal I want to send. It is a to conference on a unanimous vote, and dent, I think that is providing the signal that I think is destructive for the House passed a bill that was an ag wrong incentive for people to come to those of us who believe in legal immi- research bill. However, the nature of America. gration. the bill changed in conference, and it Let me also say that I am a strong So I urge my colleagues to support changed dramatically. Many other pro- supporter of legal immigration. I don’t this motion to recommit with instruc- visions were added to the conference want to tear down the Statue of Lib- tions. I remind my colleagues that the report that were never voted on in the erty. I don’t want to build a wall conference has not been discharged. We Senate and never voted on in the around America. There is still room for can go back to conference this after- House. hard-working, dedicated people with noon, and this provision can be voted

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4666 CONGRESSIONAL RECORD — SENATE May 12, 1998 on. If it is adopted in conference, it can I yield the floor. from Texas whose concern I share. I come back to the Senate, and it would The PRESIDING OFFICER. Who certainly don’t want any social welfare probably pass unanimously. If it is re- yields time? program, food stamps or otherwise, to jected in conference, we at least know Mr. ROBERTS addressed the Chair. be a beacon for people to come to this there has been a vote in conference. Mr. LUGAR. Let me inquire of the country when they wouldn’t otherwise. The point is, this bill is not going to distinguished Senator from Kansas. But we are talking about refugees, die if we adopt this motion. I want peo- Does the Senator require time at this and a refugee is defined as follows: A ple to look at this provision and vote moment? person who is fleeing because of perse- on it on its merits. If they will do that, Mr. ROBERTS. I tell my distin- cution, or well-founded fear of persecu- I will be satisfied. guished chairman, if he could yield to tion, on account of race, religion, na- I reserve the remainder of my time. me maybe 5 minutes. tionality, membership in a particular Mr. LUGAR. I yield 5 minutes to the Mr. LUGAR addressed the Chair. social group or political opinion, and The PRESIDING OFFICER. The Sen- distinguished Senator from Kansas. The PRESIDING OFFICER. The Sen- who is of special humanitarian concern ator from Indiana. to the United States. Mr. LUGAR. Mr. President, I yield 3 ator from Kansas is recognized. I don’t think people choose to be a minutes to the Senator from Min- Mr. ROBERTS. Mr. President, I sup- refugee. That is just not the case. Peo- nesota. pose that some of what I am going to The PRESIDING OFFICER. The Sen- say is repetitive in that most of this ple are not fleeing their country to ator from Minnesota is recognized for 3 was discussed during the general de- come to the U.S. with a beacon held minutes. bate. But I feel compelled to speak out there saying ‘‘I am coming because Mr. WELLSTONE. Mr. President, I again because of the strong personal of food stamps.’’ And we have a cap on will try to do this in 3 minutes. First of interest in this in behalf of myself and the number of refugees. It will be 75,000 all, I say to my colleague from Texas, many of my colleagues who served on admissions for the fiscal year as of what he is now willing to do is hold up, the House Agriculture Committee, and 1999. Who are these people? The Euro- delay, and potentially kill, crop insur- for that matter the Senate Agriculture pean numbers are used largely for So- ance, which is extremely important to Committee back in 1996. viet religious minorities and Bosnians. farmers in Minnesota and across the There has been a real success story in East Asian numbers are for former Vi- country, and research on alternative regards to the Food Stamp Program etnamese, reeducation, camp detain- uses for agriculture products, crop dis- and reforms that have been initiated. ees, and Laotians. I could keep on ease, and research on scab disease in In 1996, with all due respect to that going down here. Basically, refugee ad- northwest Minnesota. program and others who supported it, missions have fallen significantly from He is willing to do this because he it was a program out of control. It over 100,000 per year during fiscal year thinks there is some terrible wrong in couldn’t even be audited. The inspector 1989. Now they are down to 75,000, and this bill. I think it is a right. I think general came in, an inspector general they are headed further downward. we are doing something that lives up to from New York—a tough cop, by the Here is the difference. The agri- the very best in America. I say to my way, named Roger Viadero, who has culture research bill’s food stamp pro- colleague and to people in the country, done an outstanding job, basically said visions mirror the SSI provisions of my colleague from Texas wants to hold that the Food Stamp Program could last year’s Balanced Both Houses have this bill up because he finds it to be an not even be audited due to the fraud, approved that. offensive proposition that we should abuse, and organized crime involve- Let’s go back to the original food say that for legal immigrants we will ment. As a matter of fact, he had a stamp reform that was passed in 1996 make sure there is some assistance for tape that we showed during the Com- that I just talked about. These welfare those people who are elderly, disabled, mittee hearings which ended up on 60 reforms eliminated the benefits for and for small children. Minutes. And we know all the stories anywhere from 800,000 to 950,000 non- The Physicians for Human Rights re- about the Food Stamp Program, about citizens. This bill extends those bene- leased a report this past week finding the waiting in line, people with food fits back to the children, the elderly, an alarming amount of hunger and stamps exchanging them for cash and and the disabled who were in the coun- malnutrition among these legal immi- then buying things that obviously did try before August 22. That is the day of grants. Food stuff use is on the rise. In not represent a nutritious market bas- enactment of the bill. And, yes, it does the United States of America today at ket of food. also extend the benefits to refugees and the peak of our economic performance They got a new inspector general. We asylees who may have entered after the we have people who are hungry and in exposed the fraud and abuse on 60 Min- August 22, 1996, debate. That means the jeopardy. What we ought to do here is utes and saved $3 billion to $5 billion in total of the benefits will be restored to restore some assistance for these legal regard to the fraud and abuse. Then we 250,000 people, not 900,000. I do not immigrants. These asylees and refugees instituted major reforms. I am talking think this represents a step back from are people who have fled oppression in about the Senate Agriculture Com- the far-reaching food stamp reforms countries like Indonesia, China, you mittee and the House Agriculture Com- that were passed back in 1996. name it. They come to our country in mittee—$24 billion, as the distin- I think if you take a hard look at the hope that we would be willing to guished chairman has pointed out. I these people, I don’t think the Food extend a helping hand. just do not think that is a success Stamp Program represents a beacon in My colleague from Texas talks about story that can be equaled. regard to any kind of a reason that that as if it is a bad thing to do. I As a matter of fact, as to the person they would come to the United States. thought that is what we were about— in charge of the Food Stamp Program I have already read the definition. people who fled persecution, people there were many allegations made in I thank the distinguished chairman who were legal immigrants. Many of regard to the performance of duty. She for yielding me this time. them were parents. My dad fled perse- resigned. It is in better hands. Then we Mr. LUGAR. Mr. President, I yield 5 cution from Russia. For the U.S. Sen- gave these reforms to the States. The minutes to the distinguished Senator ate to say, ‘‘Look, we want to correct States have come back with adminis- from North Dakota. the harshness. We want to make sure trative savings. That is where the $1.7 The PRESIDING OFFICER. The Sen- there is some assistance for you to billion comes in that has been referred ator from North Dakota. make sure you don’t go hungry if you to in terms of entitlement. And that Mr. CONRAD. I thank the Presiding are elderly, if you are disabled, if you money, I think, should be used for agri- Officer, and I thank especially the are a small child, if you fled persecu- culture research, and I believe it also chairman of our committee. tion from a country.’’ That is the right should be used for crop insurance and Mr. President, I rise to speak on be- thing to do. Certainly we ought not to risk management. And, yes, there is half of the research bill that we have be holding up the agriculture research some limited assistance in regard to before us. It has the title of ‘‘agricul- bill, which is so important to agri- food stamps. tural research.’’ I think that is really culture in our country and so impor- But let me refer to the comments somewhat misleading because this bill tant to farmers in Minnesota. made by the distinguished Senator has a lot more in it than agricultural

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4667 research, although agricultural re- That is not true. Those of us who are legal immigrants—many of whom have search is critically important. Some on the Budget Committee understand worked and paid U.S. taxes. I urge my who are not in agriculture may won- what is at stake here. We understand colleagues to oppose the motion to re- der: ‘‘Why is it so important?’’ Let me that there is a budget resolution that commit and support the Conference Re- just give them an example from my has already passed this Chamber and is port on S. 1150. home State of North Dakota, one of over in the other Chamber, and it takes Mr. LEVIN. Mr. President, I am the most agricultural States in the Na- a big chunk of the savings that are pleased to support the conference re- tion, traditionally one of the largest from the Agriculture Committee and port to accompany S. 1150, the Agricul- wheat producers, one of the largest uses them for another purpose. If this tural Research, Extension, and Edu- barley producers, one of the largest bill does not get passed and get passed cation Reform Act of 1998. This legisla- sunflower and sugar beet-producing quickly, we may lose these funds from tion contains very important provi- States in the Nation, and the State agriculture altogether, and that would sions that will help improve the deliv- that produces the vast majority of the be a tragedy. ery of safe, healthy, and value-added durum wheat that goes to make pasta I thank the Chair and yield the floor. agricultural products to the American which is enjoyed by all of America. Mr. REED. Mr. President, I rise and world marketplace, and keep rural Last year, we lost a third of the crop today to express my support for the America strong. in North Dakota to a disease. That dis- Conference Report on S. 1150, the Agri- The conference report contains a pro- ease is called scab. Scab is a fungus. In cultural, Research, Extension, and vision very similar to one in S. 1597, a North Dakota we have had 5 years of Education Reform Act of 1998. Cer- measure I introduced as a companion extremely wet conditions. People may tainly, there are a number of impor- to a bill introduced in the House by recall that last year we had an extraor- tant issues addressed in this bill, but Congresswoman STABENOW. This provi- dinary set of disasters in North Da- none more critical than the provisions sion directs the Department of Agri- kota. That is just the continuation of a that would restore food stamp benefits culture to assemble FEMA-like Crisis very severe weather pattern. Because to many elderly, children, and disabled Management Teams to respond to of those overly wet conditions this fun- legal immigrants. emergencies, like threats to human gus is growing in the crops of North While I am pleased that over 70 Sen- health from food-borne pathogens. And, Dakota; this scab. It destroyed a third ators joined the effort to bring this USDA must work with other agencies of the crop last year. That is stunning. Conference Report to the floor, I am to ensure coordinated information and That is a loss of $1.1 billion just in my disappointed that action on such an actions in the event of such a crisis. little State of North Dakota in 1 year. important and bipartisan bill has been This is a very important and non-regu- In this bill there is a provision to needlessly delayed. My colleagues have latory way for the Federal government provide $26 million over 5 years on scab demonstrated overwhelming support to identify, correct, and prevent future research so we can attack this prob- for this Conference Report. food supply contamination. lem. That is a reason that this bill is Like many of my colleagues, I was S. 1150 contains a host of other im- important. That is not the only reason. deeply concerned about provisions of portant provisions, not the least of There are many other important ag- the 1996 welfare reform law which de- which is a funding mechanism to en- ricultural research priorities to keep nied benefits to legal immigrants, par- sure that these new authorizations are America on the cutting edge and on the ticularly children, the disabled, and paid for. USDA will be the site of a new leading edge of production agriculture. the elderly. The welfare reform law was Food Safety Research Information Of- It is very important for our people to necessary to help people move from de- fice that will centralize and make pub- lic research and scientific data on food understand that our chief competitors pendency to work, but it was not per- are spending far more supporting their safety issues. Wheat scab, which has fect. That is why we worked to restore producers than we are spending sup- been a multi-billion problem in Michi- Supplemental Security Income and porting ours. In Europe they are spend- gan and in other barley and wheat pro- Medicaid to legal immigrants in last ing about $47 billion a year to support ducing states in the North Central re- year’s balanced budget agreement. their producers. We are spending about With the Agricultural Research Con- gion, will be the subject of a new re- search initiative. The crop insurance $5 billion. ference Report, we take another impor- So we are asking our farmers to go system will be made solvent. Precision tant step to address the needs of our out and compete against their farmers agriculture, which uses high tech- most vulnerable legal immigrants. with their farmers having a substantial nology to reduce inputs like fertilizer Some states, including my home state competitive edge. and pesticides, will get new emphasis. of Rhode Island, have provided tem- It is critically important that we not And, USDA will conduct focused re- porary benefits to fill the void created take everything away that our farmers search to help diversify the crops that by the welfare reform law, but a per- are using to try to stay ahead of the make up our main food supply, so that manent and uniform federal solution is competition. it will be less vulnerable to disruptions needed for this group of immigrants. In addition, in this bill is the money due to weather, pests or disease. to shore up the crop insurance system, Under the Conference Report, food Mr. President, this is an important also critically important to those areas stamp benefits would be restored to bill and I hope my colleagues will not that are experiencing losses as a result those legal immigrants who were in the vote to recommit the conference re- of these unusual weather patterns we United States when the welfare reform port. That would send the wrong mes- are experiencing. Here on the east law went into effect on August 22, 1996, sage to a major sector of our economy coast we have had, I think it is now, 13 if they met certain conditions such as: and call into question Congress’ com- days of rain. We have already had 50 (1) they are or become disabled; (2) mitment to a safe and abundant food percent more rain at this time of the they are children; or (3) they were over supply. year than is normal. And that is affect- 65 years old at the time the welfare re- Mr. LUGAR. Mr. President, I yield ing crops as well, because just like form law was enacted. In addition, the myself 7 minutes. overly dry conditions have an adverse Conference Report restores food stamp The PRESIDING OFFICER. The Sen- effect, so do overly wet conditions. eligibility to Hmong immigrants. ator from Indiana is recognized for 7 That is what we are seeing, a very odd While this Conference Report does not minutes. weather pattern across America this restore benefits to all legal immi- Mr. LUGAR. Mr. President, the re- year. The crop insurance system needs grants, it is a positive and essential port with regard to the conferees on to be strengthened and preserved. The first step. agriculture reform is supported by 17 funds to do it are in this bill. Mr. President, our nation has pros- out of the 18 members of our com- Now, our colleague from Texas comes pered from the tremendous contribu- mittee. I make that point because the along and he tells all of us, ‘‘I want to tions of immigrants who have 17 have written to our leader asking send this bill back to committee. I strengthened our economy and brought him for this debate. They are grateful want to get some changes made. It vitality to our communities. Today, we for that opportunity. The 18th was pre- won’t really endanger the legislation have the opportunity to restore bene- dictably our colleague and a very val- at all.’’ fits to children, elderly, and disabled ued

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4668 CONGRESSIONAL RECORD — SENATE May 12, 1998 member of the committee, the Senator benefits, who retained those, eligible tion will continue to lead the world in farm from Texas, Mr. GRAMM, who objects to now for 7 years of Social Security in- production and help bolster the stability of the conference report and has offered come and Medicaid. our rural areas. this recommittal motion as a way, in Mr. President, you might ask, while I concur with that. This is not a my judgment, of defeating the con- we were at it we all passed this bill, the question of an entitlement. It is the ference report. balanced budget amendment with en- question of our commitment in the Let me just offer a word of clarifica- thusiasm. Why did we not change the farm bill. tion. As the chairman of the conference food stamp provision from 5 years, We committed to America’s farmers, and one of the conferees, along with which the refugees and asylees had, to for a 7-year period of time, a propo- Senator COCHRAN and Senator COVER- 7 years to conform with what we were sition—freedom to farm, the idea to DELL on the Republican side, we sup- doing on income and the rest? Well, we manage your own land and plant for ported the conference report after did not because the Finance Com- the future. And American farmers have meeting with House colleagues who mittee had jurisdiction over that par- responded to that. They have planted had very considerable enthusiasms of ticular money. The Agriculture Com- over 10 million more acres. They have their own. This is not the first time mittee has jurisdiction over food raised their income. They have raised that the Senate and House have met in stamps. We were not in the picture. We exports for America. But we said there a conference and have had to wrestle are today. The intent of the motion of will be a safety net in this transition with issues that were distinctly dif- the Senator from Texas is in essence from the old days of supply manage- ferent in the bills and have come to a over the idea that the 5 years the refu- ment. It includes payments to farmers compromise which, in my judgment, is gees and asylees already had should that decrease over the next 5 years. It a sound one, which was supported im- not go to 7 years, and we should go includes the CRP, the Conservation Re- mediately by all the conferees in the back to conference to apparently serve Program, that tries to protect House and the Senate in both parties knock back the 7 to 5. It is something the environment for a 5-year period of time. We believe it needs to include and by 74 United States Senators who which most Members find incompre- farm research during this same period have written to the majority leader hensible. of the next 5 years, and crop insurance supporting this conference report. The distinguished Senator has a larg- with those guarantees. The argument They do so because it is extremely er point, I believe, in his motion. He is, it could be done year by year, but timely. There are farmers in the field believes that however you phrase the this is not of great assurance to our now dependent upon the crop insurance food stamp situation, it is a beacon of hope for persons to come to our coun- farmers. provisions. So, for all these reasons, I ask the If we are not successful today, of try, as he says, for years, for decades. Gramm amendment be defeated and we course, we will return to the con- Well, perhaps, but the asylees and the move on, then, to prompt passage of ference, but I have already turned to refugees are not swarming across our borders. They are people one by one the conference report. I yield the floor. the conferees and they are unanimous The PRESIDING OFFICER. The Sen- who must present themselves and say that we should proceed with the same ator from Texas. bill and we will be back in the Chamber and affirm: I am a potential victim of Mr. GRAMM. Mr. President, let me delayed by days or weeks as the case persecution, well-founded, and they explain why the amendment does make may be. The Senate may then pass the have to prove that. If they do not prove sense. And let me do it by going back conference report. Perhaps the distin- it, they do not get in. And frequently to our welfare reform bill. I would like guished Senator from Texas is correct people who had not gotten in went to remind my colleagues, not that pub- that this is going to pass by a very back and were killed. There are con- lic popularity is the be-all and end- large majority. But is it any more cer- sequences to those decisions. all—it can often be misleading in the tain that this same conference report The people presenting themselves are short term—but I am sure many of my will pass days and weeks hence, if we Evangelical Christians; they are Jews colleagues are aware that when asked can get floor time, than today? I doubt from the former Soviet Union; they are what action by Congress in the last 4 it. Cubans who have tried to escape Cas- years they most approved of, the Amer- Now, the reason why conferees will tro; they are people who have fled from ican people, in a set of polls taken last not change the conference report is Somalia and from racial persecution in month, said ‘‘welfare reform.’’ What we that the distinguished Senator from Bosnia recently. These are tough cases, did in welfare reform is, we set higher Texas has asked for a very narrow and we recognized that in the welfare standards for welfare and we defined change that does not make a lot of reform bill. We said keep them with a work as the norm, and we defined wel- sense. Let me review, Mr. President, safety net because they do not have fare programs as temporary programs respectfully, why I make that com- sponsors. They come with the shirts on to help people help themselves. ment. their backs. And we have done so be- When we wrote the welfare reform Before welfare reform, all legal aliens cause we are a humane people. What bill in 1996, and I was active in it and were eligible for food stamps, for SSI, sort of people are we to think about de- was a conferee, this provision with re- the Social Security income payments, nying persons who have come in these gard to refugees was a hard-fought pro- and for Medicaid. Before welfare re- circumstances to our shores? This is vision. Prior to the 1996 bill, there was form, all of these persons were eligible. not a neon sign advertisement. It is no limit on the amount of time that a With the passage of welfare reform, simply a fact of the kind of country we refugee could get food stamps. Many most legal aliens became ineligible are. people, including myself, wanted to set until such time as they became citi- To send all of this back to conference a strict limit on it, again with the idea zens. over the fact that 5 years of eligibility that we were talking about transi- But, Mr. President, follow carefully if these people now have should be tional help, but we wanted people to you will. Refugees and asylees contin- changed to 7 seems to me to be an item come to America, as millions have ued under welfare reform to be eligible the Senate should reject and do so deci- come—and millions of Americans have for SSI, for food stamps, and for Med- sively. come as refugees; millions of Ameri- icaid. No new entitlement here. Wel- Finally, let me just simply say that cans have come as refugees since World fare reform simply continued their eli- LARRY CRAIG, the distinguished Sen- War II. gibility from the pre-welfare reform ator from Idaho, has said: We know that many of these refugees days. This is more than just a reauthorization are really economic refugees but they Now, the balanced budget amend- bill. Legislation before the Senate today is claim to be political refugees, and ment restored Social Security to some an investment in the future and represents often it is very difficult to tell the dif- of the legal aliens; namely, to children, our commitment to America’s farm families. By providing the technical assistance and ex- ference because countries that have elderly, the disabled who were in this tension activities that help expand farm in- bad political systems normally have country on August 22, 1996, when we come, improve resource management, and bad economic systems. passed welfare reform. And it made develop new crop varieties, federally funded So, after a real battle in conference, asylees and refugees who already had agricultural research assures that our Na- endless days of negotiations, we settled

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4669 on a 5-year limit. Now, in this bill, in So, to some people this may look like In effect, it says, a bill that, when it was considered in a small issue. We are not talking about Welcome to America. Come on, you don’t the Senate where it was amendable, much money, because this bill is a 5- have to be productive. You know when you there was no food stamp provision, year bill. Obviously, there are very few leave where you are and come to this coun- there was no debate on this issue. people—since you can get food stamps try that you are going to be eligible for food When it was considered in the House, now for 5 years, extending it to 7 will stamps for 7 years, and by the time you get there was no provision expanding food settled in, we will change the law where you affect only a few people in the last year will be eligible and you won’t ever have to stamps, no debate, no ability to amend of the bill. But the principle is a big work because we will feed you. it. Now we have a conference agree- principle, and the principle is, ‘‘what We already restored SI payments. ment that adds $818 million back in kind of America do you want, and what Now we are throwing food stamps for food stamps that were denied as part of kind of American do you want?’’ I want another $80 million. welfare reform. This bill is a major people from all over the world, from all We also said that the welfare reform step toward overturning the welfare re- kinds of backgrounds, who share one bill ended welfare as we know it. Unfor- form bill. thing—a dream of having the oppor- tunately, this agricultural research bill I have singled out this provision be- tunity to come to America and work cause I think it is critically important. is welfare reform as we did it. These and build their dream and the Amer- changes to the welfare reform law Whenever proponents of the provision ican dream. That is what I am for. in the bill debate it, they always like come at the insistence of President That is what this provision is about. to talk about children, disabled, and el- Clinton. He vetoed the first two welfare I would like now, Mr. President, to reform bills, and he has succeeded in derly—and don’t we all?—because, ob- yield 5 minutes to the Senator from viously, that is where we can focus our rewriting the one that he signed. If he North Carolina. concern. But the provision that I am was going to start trying to rewrite it The PRESIDING OFFICER. The Pre- before the ink dried on it, he never trying to deal with here has nothing to siding Officer will inform Senators do with children, disabled, elderly, who should have signed it. that the Senator from Texas has 12 were in the country on the day we I want the agricultural research bill minutes 10 seconds remaining on his passed the welfare reform bill. The pro- without the food stamp provision to time. The Senator from Indiana has 8 vision that I am trying to deal with is pass. Nobody is more in support of ag- minutes. the prospective provision which simply ricultural research and the whole agri- The Senator from North Carolina is tries to draw a line and says that we cultural bill than I am. It is critical to recognized. North Carolina, but the food stamp passed a welfare reform bill, we nego- Mr. FAIRCLOTH. Mr. President, I tiated this out, and here we are, 2 years provision is a another step toward re- have few superlatives that I can claim after it went into effect, raising the versal of the welfare reform bill. as a Member of the Senate, but one of number of years that you can be on Mr. President, the Statue of Liberty them is that I have spent 52 years in food stamps under the new welfare bill holds a torch of freedom, not a book of active agriculture, farming, and in all as an immigrant by an additional 2 food stamps and a lifetime right to not phases of it. I would be hard pressed to years. to have to work. That is the flag we are Why are we doing it? To quote one of find the crop or the livestock interest waving to people coming into this the proponents, ‘‘It provides seamless that I have not, at one time or another, country: ‘‘Sit down, relax, you are protections so people can come, get been involved in. home free.’’ The Senator from Texas is food stamps, become citizens, and con- North Carolina is home to some of doing the right thing, and I am proud tinue to get food stamps.’’ the most productive and largest farms to support him. I thank the Chair. I want people to come to America to in the Nation and the finest agricul- The PRESIDING OFFICER (Mr. go to work. I want our assistance pro- tural research universities, by far, in KEMPTHORNE). Who yields time? gram not to be a way of life. We de- the Nation. I don’t think that I play Mr. LUGAR. Mr. President, I yield 3 bated this issue 3 years ago, and those second fiddle to any Senator in support minutes to the distinguished Senator who believe that welfare should not be for reauthorization of the agricultural from Missouri. a way of life won on an overwhelming extension bill. It is critical to the The PRESIDING OFFICER. The Sen- vote. Yet, over and over and over farmers of this country and to the uni- ator from Missouri is recognized for 3 again, in little parts and parcels, we versities and the ag research univer- minutes. are undoing one of the major legisla- sities. But the bill also makes impor- Mr. BOND. Mr. President, I rise in tive activities that we have undertaken tant reforms to the Crop Insurance strong support of the conference report in this decade. This bill is such an ac- Program that will benefit farmers and and urge my colleagues to oppose the tivity. taxpayers. Planting season is here, and motion to recommit. For those in agri- So, I am not for the food stamp pro- we need to get it settled, and I am culture, it is critical that we move this vision, but I am not asking my col- ready and anxious to do it. in a prompt and expedited fashion and leagues to strike it out. I am asking However, despite what I have just avoid any additional delay. The time my colleagues to ask the conference to said, let me add, I don’t play second for passage is now. reconvene and to remove the prospec- fiddle to any Senator in my support of I congratulate Chairman LUGAR, Sen- tive provision which says that anyone real welfare reform. Workfare, not wel- ator HARKIN and their staffs who have coming in the future can qualify as a fare, was the platform I ran on for the labored for months to bring this legis- refugee and get 7 years of food stamps. Senate in 1992. The 1996 welfare reform lation before us. Simply put, agri- I believe that we are, through this pro- bill, although watered down, was a real culture needs this now. Included in it vision, taking a step to go back to the accomplishment for the 104th Congress. are urgent reforms and funding nec- days, which we have recently put be- I preferred the first two bills that were essary to avoid a crisis which would hind us, where we were asking people vetoed by the President, but the third undermine the viability of crop insur- to come to America, not with their was still a good bill. That is why I am ance—a safety net that farmers in my sleeves rolled up ready to go to work, so disturbed that we are gutting the State and across the country cannot do but with their hand held out ready to welfare reform and doing it in an agri- without. This legislation is fully offset go on welfare. cultural research bill. and paid for and is supported by a This is a little issue. We are not talk- This bill restores food stamps for united agriculture industry. After ing about big amounts of money, but 250,000 immigrants. We sit here and say months of careful and deliberate nego- we are talking about a big principle: very nicely, ‘‘But it doesn’t amount to tiations, a bipartisan agreement with What do you want the beacon drawing much; it is only 2 years on to 5, so let the administration has been developed. people to America to be? Do you want the 2 years go.’’ Will next year be at 10? It was an agreement with the adminis- the beacon to be welfare and food In the following session of Congress, do tration and it takes into account the stamps? Or do you want the beacon to we go to infinity? That is the reason need to get the President’s signature be the opportunity to live and work in we have a $5.5 trillion debt today, be- on it. I believe the work of the con- the greatest country in the history of cause 2 years wasn’t very much, but 3 ferees should be applauded and en- the world? would be fine, and we kept going. dorsed with our support today.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4670 CONGRESSIONAL RECORD — SENATE May 12, 1998 I am particularly interested in the those who have watched over the years Mr. DOMENICI. Will the Senator give research title. We expect to see the as a greater and greater percentage of me 2 minutes, and that will be enough. world’s population double in the next USDA funds have gone to welfare, Mr. GRAMM. Let me repeat my re- 30 years. The demand for food is ex- often at the expense of programs that quest. Since the Senator is not going pected to triple in the next 50 years. assist farmers and conservation, this to engage in the debate before us, but The world’s population wants more legislation moves $1 billion back to ag- has relevant comments about the bill food, cheaper food, more nutritious riculture. before us, and we hope, obviously an- food, safer food, food that is easier to While I understand that some here other motion, infinite number of mo- prepare and they want it produced on today would like to see less money for tions are in order, but we hope this will less land with fewer chemicals and in a food stamps for legal immigrants, oth- settle the order, I make a unanimous more environmentally sensitive man- ers would like to see more. I recall that consent request that the Senator have ner. the Administration proposed in their 5 minutes. Those individuals who produce food budget that all this administrative sav- The PRESIDING OFFICER. Is there and fiber for this world today—encum- ings go for legal immigrants and have objection? bered with what otherwise would be threatened to veto crop insurance and Mr. LUGAR. Reserving the right to conflicting mandates—have never faced research if it didn’t also include fund- object, I renew my request that Sen- a greater challenge. Technology is the ing for food stamps for legal immi- ator DOMENICI have 5 additional min- answer. grants. utes and I have 5 additional minutes. Remarkably, plant technology in this The food stamp provisions of this act The PRESIDING OFFICER. Is there half-century has helped make it pos- are an essential step to providing much objection? sible for the farmer, who in 1940 fed 19 needed assistance to certain legal im- Mr. GRAMM. I would like 5 addi- people, to feed 129 people today. migrants. Attempts to undo this care- tional minutes, then, as well. Nobel prize-winning chemist Robert fully-crafted bipartisan compromise Mr. LUGAR. I object. The PRESIDING OFFICER. Objec- F. Curl of Rice University proclaimed will result in delay and ultimately un- tion is heard. Who yields time? that: ‘‘* * * it is clear that the 21st will dermine the entire bill. Mr. GRAMM. Mr. President, I sug- be the century of biology.’’ The March The bipartisan leaders have worked gest the absence of a quorum. hard to craft a bill that the President 27 article in Science Magazine entitled: The PRESIDING OFFICER. The will accept. There should be no further ‘‘A Third Technological Revolution,’’— clerk will call the roll. after the Industrial and Computer- delay and I urge my colleagues to re- The assistant legislative clerk pro- based revolutions—contends that: ‘‘Ul- ject the motion to recommit and move ceeded to call the roll. timately, the world will obtain most of swiftly to final adoption of the con- Mr. GRAMM. Mr. President, I ask its food, fuel, fiber, chemicals and some ference report. unanimous consent that the order for of its pharmaceuticals from genetically The PRESIDING OFFICER. Who the quorum call be rescinded. altered vegetation and trees.’’ yields time? The PRESIDING OFFICER. Without The possibilities are breathtaking Mr. DOMENICI addressed the Chair. objection, it is so ordered. and the U.S. is poised to lead the third The PRESIDING OFFICER. The Sen- Mr. GRAMM. Mr. President, I yield technological revolution as we unlock ator from New Mexico. the Senator from Alabama 3 minutes. the secrets plant-by-plant and now, ge- Mr. DOMENICI. I don’t have any The PRESIDING OFFICER. The Sen- nome-by-genome. time, but I ask if somebody will give ator from Alabama is recognized for 3 Simply put, this research is about me a couple minutes. minutes. meeting the world’s growing nutri- The PRESIDING OFFICER. Who Mr. SESSIONS. Mr. President, I am tional needs, protecting U.S. jobs and yields time to the Senator from New very, very reluctant to rise in opposi- preserving the environment. Mexico? tion to this conference report as it is Mr. GRAMM. How much time do we The legislation before us looks ahead presently constituted, and in support have on both sides? to the challenges of the 21st century by of the motion to return this legislation The PRESIDING OFFICER. The Sen- providing additional funding on what to the conference committee. I believe, ator from Texas has 6 minutes, 47 sec- all of us back home say is a priority; however, that returning this legisla- onds; the Senator from Indiana has 4 research. It provides $600 million for tion to the conference committee is minutes, 43 seconds. the Initiative for Future Agriculture Mr. DOMENICI. Do we have a time the proper and appropriate thing to do. and Food Systems. This will augment certain to vote, or when the time ex- Having said that, I feel that there are our federal commitment to undertake pires? some marvelous provisions contained cutting-edge research in priority areas The PRESIDING OFFICER. The vote within this bill. For example, agricul- such as genome studies, biotechnology, will occur when all debate time has ex- tural research is very important, and food safety, precision agriculture and pired. this legislation will strengthen and im- new use development. Mr. GRAMM. I ask unanimous con- prove the work being done to advance I cite as an example, the University sent that the Senator might have 5 this field. Similarly, crop insurance of Missouri has just tested a new hy- minutes. will be made sound under this legisla- brid corn which when fed to swine re- The PRESIDING OFFICER. Is there tion. Both are matters of critical im- duces phosphorous in manure by a objection? portance to me. whopping 37 percent. The Monsanto Mr. HARKIN. Mr. President, reserv- I do not believe that sending the leg- Company, in my State, is using bio- ing the right to object, and I won’t ob- islation back to the conference com- technology to produce cotton plants ject, but I hope if we are going to go mittee to fix this bill’s entitlement ex- with genes that produce colors to re- down this path that the other side be pansion in the Food Stamp Program duce the need for chemical dyeing. afforded equal opportunity to have ad- will kill this bill or extraordinarily From the corn plant, they have pro- ditional time, if so requested. I don’t delay it or in any way jeopardize the duced a human-like antibody that request it, but in case somebody does fundamental reforms that are con- holds promise for allowing cancer pa- request it. tained in it. Sending the bill back to tients to tolerate more frequent doses Mr. DOMENICI. Mr. President, I say conference simply reflects routine of a tumor-shrinking drug. The possi- to the Senator from Indiana, what does business practices in this Senate. bilities are breathtaking and the U.S. he think about this? Does he want 5 Under this legislation’s expansion of is leading the charge. minutes himself if I get 5? the food stamp entitlement, 250,000 new Let me say one thing to those who Mr. LUGAR. Yes, Mr. President. Can people will be added to the food stamp represent agriculture states. Almost 70 we amend the request that there be an rolls. In my last campaign, I talked percent of the USDA budget is not for additional 5 minutes for me to speak? about the fact that the President had research or export promotion or con- Mr. GRAMM. Mr. President, the Sen- committed to undermining the welfare servation or for subsidies to farmers— ator is not going to speak on behalf of reform bill that was passed several it is for food and nutrition programs, my amendment; he just wants to speak years ago. These provisions have prov- primarily the food stamp program. For on the bill itself. en that statement to be true. This bill

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4671 expands from 5 to 7 years the amount settled it in the Balanced Budget Act expressed themselves in writing that of time noncitizens can draw food last year. this is their will. I hope we will have an stamps. It is an expansion of that pol- All we are doing now is making food opportunity to manifest it in passage icy, and it is the kind of expansion I stamps compatible with Medicaid and of the report. think is not justified. Will we next year SSI. So I hope the Senator would not I yield back our remaining time. come back for 10 years? Will it be 15 hold our farmers hostage, because that The PRESIDING OFFICER. The Sen- years? What will be the next revision? is what is happening. We know full ator from Texas has 3 minutes 23 sec- There will always be pressure for us well, if this goes back to conference, it onds remaining. to expand and expand and expand. I is dead. We have hundreds of thousands Mr. GRAMM. Mr. President, I yield 2 think we have to show some integrity of farmers who need crop insurance minutes to the Senator from New Mex- and some fortitude on this issue. And this summer. Over 106,000 winter wheat ico. so, with great reluctance, I have to say policies right now will be up on Sep- The PRESIDING OFFICER. The Sen- to the distinguished chairman of the tember 30. Farmers all over the plains ator from New Mexico is recognized for committee and the members of that States will not be able to renew their 2 minutes. committee that I cannot vote for this policies. Many farmers use their crop Mr. DOMENICI. I thank Senator bill. I cannot vote for it because I told insurance policies as collateral in order GRAMM. the people of Alabama I was not com- to secure an operating loan. So if we do I did not really think my few words ing up here and voting for the under- not have that, thousands of farmers would be this controversial, but I want mining of the welfare bill that was will not have access to the credit they to share with the Senate a concern. It passed last time. I cannot justify this need to get the crop in. That is why we is not just about this bill. But it seems expansion of the Food Stamp Program. need to pass this bill. to me that every day or so we are talk- So if we cannot send it back, I will be The PRESIDING OFFICER. Who ing about an approach here in the U.S. forced to vote no. I will hate to have to yields time? Senate which essentially wipes out last do that. I think supporting this motion Mr. LUGAR addressed the Chair. year’s budget agreement. The corner- to recommit the bill is the best way to The PRESIDING OFFICER. The Sen- stone to last year’s budget agreement address this issue. ator from Indiana. was the caps we placed on discre- I thank the Senator from Texas for Mr. LUGAR. How much time do I tionary spending, both defense and do- his leadership and courage in raising have remaining? mestic. That means, written in the law this important issue, because we have The PRESIDING OFFICER. The Sen- are numbers that we said we will not to get to a point in this country where ator from Indiana has 2 minutes 40 sec- violate; that we will not exceed this we can contain our spending ten- onds. level of spending. dencies, and if we do not, we will never Mr. LUGAR. I yield myself that time. Everybody who is getting anything maintain a balanced budget. Mr. President, let me make as clear from Government would like to turn Thank you, Mr. President. as I can the parliamentary situation. those discretionary programs into The PRESIDING OFFICER. Who We have tried, in the Ag Committee mandatory programs, so they are not yields time? since last fall, to pass a sound research subject to the caps. Everybody would Mr. LUGAR. Mr. President, I yield 2 bill. We succeeded last fall. The House like to have a guarantee that their pro- minutes to the ranking member. did not act finally until the end of the gram is going to get funded. That is The PRESIDING OFFICER. The Sen- session and did not appoint conferees what we call an entitlement or a man- ator from Iowa is recognized for 2 min- until a short time ago. datory program. We are talking about utes. It has been a very difficult con- that in this bill. We are talking about Mr. HARKIN. I thank my colleague ference—not the first time such a thing that in the tobacco bill in a very big and compliment him on his leadership has occurred. Conferences in the Con- way. on this bill and all aspects of the bill, gress have occurred frequently. Com- What is happening now is that we are on research on crop insurance and food promises are made. absolutely breaking the agreement we stamps. Mr. President, to suggest glibly that made, which was so solemn, about get- I listened with some amusement to we can go back to conference if the mo- ting our budget under control. Every my friend and colleague from Texas tion made by the Senator from Texas time the budget bites and it squeals a talking about this issue, saying that it passes, simply excise what he wishes, little because a decision is tough, we is principle, that he is doing this on and return to the Senate with a bill, is find a way to avoid it and spend the principle. I know we passed the Bal- inaccurate. I have tested the conferees, money in another way. It is money anced Budget Act last year in the Sen- and they will not change. The Senator nonetheless, and it is adding to the size ate. That extended from 5 to 7 years from Texas may not change. Further- of Government nonetheless. Medicaid and SSI to the same refugees more, if changes are made, the Sec- Frankly, I do not agree with Senator and asylees we are talking about. I do retary of Agriculture has written to GRAMM’s position on this bill in terms not recall the Senator from Texas then the committee that he will recommend of the food stamps provisions. But I, offering an amendment to strike it out the President veto the bill. Now we can frankly, do not believe we ought to of the Balanced Budget Act. all estimate, Is the President bluffing? shut our eyes to a tendency that could Mr. GRAMM. I voted no, I would like Is the Secretary accurate? Will some- become a very big stream. We are for- the Senator to be aware of that. body weaken on the House side—maybe getting about appropriated accounts Mr. HARKIN. I believe the RECORD many people—and suddenly see the and caps, understandings and agree- will show the Senator from Texas light? Conceivably, Mr. President. And ments, and finding brand new ways to voted when the Balanced Budget Act I pledge I will try. Patiently, for 6 fund programs that will be on auto- passed the Senate. months, I have tried, and if need be, I matic pilot. Mr. GRAMM. I did. And I voted no. will continue to do that. I submit to you, from the taxpayers’ Mr. HARKIN. I believe the Senator My prediction is, there will be a con- standpoint, there is absolutely no dif- voted aye when the Balanced Budget siderable delay with regard to crop in- ference. If you are using a dollar of tax- Act passed the Senate—maybe not on surance, probably a year or 2 delay in payers’ money to break the caps that the conference report but when it terms of research, and in due course I we agreed upon or if you are spending passed the Senate. And that provision have no idea what will happen on the a dollar for a new entitlement pro- was in the Senate bill to extend it to 7 food stamp issue. gram, it is the same effect. years. But, Mr. President, let me simply I hate to make this statement on this Secondly, the Senator from Texas say, we have a remarkable possibility bill because I am not necessarily say- may be philosophically opposed to food for achievement here today that I hope ing the bill should go down to defeat. stamps. That is fine. That is his posi- will not be defeated on a very narrow But I want to warn the Senate—and I tion—that may be his position. That is point. I understand the objections of am going to warn the Senate on every another debate for another time. We our colleagues, but I understand an bill that circumvents the caps—that settled that in welfare reform, and we overwhelming majority, 74 Senators, this is not the way we got to balance.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4672 CONGRESSIONAL RECORD — SENATE May 12, 1998 This is not what we promised the Kohl Moseley-Braun Santorum The welfare law provisions restricting American people and the marketplace Landrieu Moynihan Sarbanes legal immigrant access to food stamps Lautenberg Murkowski Smith (OR) in terms of where we were going as a Leahy Murray Specter went too far. Congress, and I plan to call that to ev- Levin Reed Stevens Legal immigrants pay taxes and eryone’s attention on a regular basis. Lieberman Reid Torricelli serve in our armed forces. They are not Lugar Robb I yield the floor and thank the Sen- Warner granted all the privileges of U.S. citi- Mack Roberts Wellstone McConnell Rockefeller zenship, but are expected to fulfill ator for time. Wyden Mr. GRAMM. How much time do I Mikulski Roth most of the responsibilities of citizen- have? The motion was rejected. ship. The ban on food stamps for elder- The PRESIDING OFFICER. There is Mr. LUGAR. Mr. President, I move to ly, disabled and other needy legal im- 1 minute remaining. reconsider the vote. migrants from food stamps was harsh Mr. GRAMM. Mr. President, I think Mr. HARKIN. I move to lay that mo- and unfair. Senator LUGAR put his finger on the tion on the table. While myself and others argued that situation when he said that the Presi- The motion to lay on the table was point during debate on the welfare bill dent would veto the agriculture re- agreed to. in 1996, the majority of us have learned search bill and crop insurance if the Mr. LUGAR addressed the Chair. it since then. In any case, we should all bill didn’t contain $818 million worth of The PRESIDING OFFICER. The Sen- feel confident that we are doing the new food stamps adding 250,000 people ator from Indiana. right thing today by voting for this to the food stamp rolls. I believe that Mr. LUGAR. Mr. President, I have re- bill. is piracy. I do not believe the President quests from other Senators wanting to Mr. President, my support for the would veto this bill. Further, I am con- speak on other subjects. I would ask food stamps restoration is particularly fident that we would override his veto, the Chair, is it possible we could move heart-felt due to my concern for the and I think it is imperative that we to disposition of the business before us? Hmong and other legal immigrants start standing up and defending the The PRESIDING OFFICER. Is there from Laos and their families. As my major actions we take, and welfare is further debate on the conference re- colleagues may know, the Hmong one of those actions. port? fought along side our American men This bill is going to effectively raise Is there further debate on the con- and women in the Vietnam War. They the level of spending in the Federal ference report? risked their lives on behalf of all that Mr. KOHL. Yes. Government by $1.86 billion, because we hold dear in this country—freedom The PRESIDING OFFICER. The Sen- we are going to pay for four entitle- from oppression, democracy and the ator from Wisconsin is recognized. ment programs in this bill, and we are pursuit of happiness—and fled to the Mr. KOHL. Mr. President, I rise going to free up $1.86 billion to be spent United States following the War out of today in strong support of the Agri- on discretionary spending. I intend to fear of persecution. To them, we truly culture Research conference report. A oppose the bill. I hope my colleagues owe a debt of gratitude. great deal of thanks and appreciation will vote for this motion. There are 250,000 Hmong and Lao peo- is due to Senators LUGAR and HARKIN ple living in the United States, ap- I yield the floor. for their hard work and efforts to re- proximately 40,000 of whom live in Wis- The PRESIDING OFFICER. All time form and prioritize USDA’s agriculture consin. Of those 40,000, roughly 7000 having expired, the question occurs on research, extension and education ac- lost eligibility for food stamps under the motion to recommit the conference tivities. the welfare law. And 75 percent of report to the committee on conference This conference report is extremely those individuals who have lost food with instructions offered by the Sen- important to the agricultural commu- stamps in Wisconsin live in households ator from Texas, Mr. GRAMM. nity. It invests $1.7 billion in agricul- with children. Mr. GRAMM. Mr. President, I ask for tural research to develop the new tech- The Hmong and highland people have the yeas and nays. nology that will be used by farms in enriched our country and enriched Wis- The PRESIDING OFFICER. Is there a the next five to ten years, to solve the consin. They have worked hard to sup- sufficient second? projected shortfall in crop insurance port their families and give back to There is a sufficient second. funding, and to support the Fund for their communities. Simply put, we are The yeas and nays were ordered. Rural America. thankful for all they did and thankful The PRESIDING OFFICER. The The nation’s Land-Grant Universities for the contributions they continue to clerk will call the roll. work with the USDA on issues ranging make. The assistant legislative clerk called from the international competitiveness Last year, we took steps to restore the roll. of our family farms, to new food borne SSI benefits to the Hmong and other The result was announced—yeas 23, illness problems, to ground water con- worthy immigrants, and today we are nays 77, as follows: tamination. We need to support their right to take this step with respect to [Rollcall Vote No. 128 Leg.] efforts with a robust research budget in food stamps. YEAS—23 line with other agencies’ research I urge my colleagues to support the Abraham Hollings Sessions budgets. This bill puts us on the track conference report. Allard Hutchinson Shelby to do that, and I support it. The PRESIDING OFFICER. Is there Ashcroft Hutchison Smith (NH) I am also pleased to speak in strong further debate on the conference re- Enzi Inhofe Snowe support of the provisions of this bill re- port? Faircloth Kyl Thomas storing food stamps to legal immi- The Senator from South Dakota. Gramm Lott Thompson Gregg McCain Thurmond grants. Mr. JOHNSON. Mr. President, I rise Helms Nickles Mr. President, I supported the 1996 today to discuss the importance of NAYS—77 welfare reform law. The time had passing the Conference Report on the Akaka Coats Frist clearly come for radical change. We Agricultural Research Bill, S. 1150. Baucus Cochran Glenn rightly concluded that nothing erodes This bill has the overwhelming sup- Bennett Collins Gorton the human spirit more readily than de- port of over 70 Senators, yet we have Biden Conrad Graham pendence on handouts, and we insti- continued to struggle here in the Sen- Bingaman Coverdell Grams Bond Craig Grassley tuted reforms based upon the principles ate to get this critically important leg- Boxer D’Amato Hagel of personal responsibility and hard islation passed. Breaux Daschle Harkin work. In recent years, American agri- Brownback DeWine Hatch Bryan Dodd Inouye But in some cases, a helping hand is culture has greatly changed. Because Bumpers Domenici Jeffords truly necessary, and sometimes so of the 1996 Farm Bill, our producers Burns Dorgan Johnson much help is needed that only the Fed- rely greatly on the crop insurance pro- Byrd Durbin Kempthorne eral government is capable of providing gram to protect them from production Campbell Feingold Kennedy Chafee Feinstein Kerrey it. This is clearly the case with respect risk. The reforms in agricultural re- Cleland Ford Kerry to certain classes of legal immigrants. search programs included in S. 1150

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4673 provide a roadmap for the future of ag- research program for tribal colleges, authorization, 1994 institutions would riculture. As importantly, it includes a otherwise known as the 1994 institu- be permitted to enter into cooperative funding stream to fund important new tions. agreements with any 1862 or 1890 insti- investments in agricultural research Unlike the significant research pro- tution in the United States, rather and rural development by creating and grams that have existed for decades for than being limited to agreements with funding The Initiative for Future Agri- 1862 and 1890 land-grant institutions, only the 1862 in their state. culture and Food Systems and by ex- the 1994 institutions currently do not This provision is important to the ef- tending the Fund for Rural America. have authorization for an agriculture fort to create productive, cost-efficient And yes, to the chagrin of some, this research program, and thus are not full extension programs in Indian Country. legislation reinstates food stamp bene- partners in the land-grant system. Under current law, to participate in ex- fits for our most vulnerable legal im- This legislation mitigates this in- tension programs, 1994 institutions are migrants. I would hasten to point out equity by establishing a modest, com- required to enter into cooperative that these provisions are modeled on petitive research program for the 1994 agreements with the 1862 institution in sections of last year’s Balanced Budget institutions. Funded research would their state, and funding for the pro- Act that restored eligibility for Sup- address high priority concerns of local gram goes to the 1862 institutions rath- plemental Security Income and Med- tribal, national, and multi-state sig- er than the 1994 institutions. icaid to some legal immigrants. nificance and would be conducted In the case of Sitting Bull College, I applaud the Chairman of the Senate through cooperative agreement with which straddles the border of North Agriculture Committee and Senator 1862 and 1890 land-grant institutions. and South Dakota, and Din College, HARKIN for their leadership in crafting Although it is true that some tribal which has campuses in Arizona and the balanced compromise inherent in colleges are not yet ready to conduct New Mexico, this restrictive language this legislation. Attempts to derail this research, many of them have the capa- could seriously hamper efforts to cre- compromise put at risk the important bility. Some current research includes: ate the most productive extension pro- investments in agriculture and the (1) Water quality research: Conducted gram possible for the relevant service sound research and crop insurance re- through contracts with Indian Tribes, area. forms included in the bill. which are required to meet certain This clarification simply makes good Living in a state like South Dakota, standards under the federal Clean business sense. Why should a 1994 or an I know first hand, and as most of you Water Act. 1862 institution be prohibited, for fiscal saw during last year’s disaster, what (2) Wildlife research: Conducted by a or bureaucratic reasons, from continual flooding can do to our pre- handful of tribal colleges to evaluate partnering with an institution that has cious farm land. Again, this year, eight and find solutions for the adverse im- the expertise and resources that are counties in northeastern South Dakota pact of pesticides on local wild bird and most beneficial to the students and are again experiencing severe flooding deer populations, and to research prob- communities the institution serves? conditions. lems associated with amphibians and To correct this problem, the legisla- Without a strong safety net, crop in- irrigation project lines. tion states that 1994 institutions may surance remains as the only safety net (3) Native plant research: Conducted enter into cooperative agreements with for producers to protect them from the because new development on and near any 1862 or 1890 institution in the vagaries of nature. This bill provides tribal lands is taking a serious toll on United States, rather than being lim- nearly $500 million for partial funding wetland areas. This impacts the niche ited to an agreement with only the 1862 for this important risk management environment of native plants, which in their state. Further, the bill directs tool. are traditionally used for medicinal the Secretary of Agriculture to fund I have been informed by several crop and other purposes. This is an example the 1994 institutions directly, rather insurance agents in South Dakota that of the kind of research that most larg- than passing the funding through the Agricultural Research Bill must be er institutions would not focus on be- mainstream institutions. passed soon or many producers face the cause it will not lead to large-scale Again, Mr. President, passage of the possible cancellation of their policies. production agriculture. Without the re- Agricultural Research Bill is crucial to Keep in mind, these policies, are in search currently being conducted at the future of American agriculture. many cases, the only protection pro- Salish Kootenai College in Pablo, Mon- Our Nation’s farmers and ranchers ducers have from disasters which are tana, the nation risks losing some of work hard each and every day. Not not of their acts of mismanagement our native plants. only do they produce an abundant sup- but as acts of nature. (4) Range cattle research: Currently ply of food, they produce it at the most The bill covers all facets of federally underway at several tribal colleges, to inexpensive price to consumers in the funded agricultural research, includ- address problems of range cattle tra- entire world. ing: the Agriculture Research Service versing streams and impacting water With the support of over 70 Senators, of USDA; the Cooperative Extension quality (and possibly impacting native this bill has enough support to pass Service; Land Grant Universities such trout and other fish populations). In with wide-ranging support. This bill as South Dakota State University and addition, one tribal college is con- enjoys the support of constituencies— competitive research and extension ducting research and development on a both urban and rural, both—nutritional programs open to other entities. new strain of more rigorous cattle. advocates and crop insurers. It would S. 1150 includes comprehensive re- This is just a sampling of the kind of be a great travesty to allow this bill to search provisions for our nation’s land research currently ongoing at the trib- fall victim to the philosophical grant universities. For example, South al colleges. The primary focus of this ideologies of a very few. Dakota State University (SDSU) and research is on the use of niche products If we do not act on this immediately, other small state schools are protected to develop and expand reservation it will show our lack of leadership to in this bill by allowing a great deal of economies; the preservation and cul- help some of our most valuable as well flexibility in how SDSU will meet new tivation of land; and the strengthening as our most vulnerable members of our requirements that direct a percentage of families and communities. society. of all research and extension funds to- The tribal colleges have not asked for I urge my colleagues to pass this bill. ward multi-state, disciplinary, and in- millions and millions of dollars to con- Mr. LEAHY. Mr. President, I appre- tegrated research and extension activi- duct costly basic research. Rather, ciate the efforts of the chairman of the ties. For example, if SDSU is working they ask for research authority to pro- Agriculture, Nutrition and Forestry on a project that may need expertise tect and improve the earth on which Committee, Senator LUGAR and the from the University of South Dakota, they live and to ensure the viability of Ranking Member, Senator HARKIN, on they will be able to include that to- the plants and animals with which the research conference report. ward meeting the multi-state research they co-exist. I want to highlight that over 70 Sen- component. Another provision of this legislation ators—including myself—signed a let- I am also pleased that the conferees addresses an inequity in the 1994 land- ter to the majority leader urging him have agreed to authorize a competitive grant extension program. Under the re- to give us an opportunity to vote on

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4674 CONGRESSIONAL RECORD — SENATE May 12, 1998 this conference report as soon as pos- that all other people have to meet to tural research. Research will lead sible. qualify for benefits. American agriculture into the next The conference agreements we By conforming food stamp rules to century and keep American farmers worked out represent a very good pack- those already adopted for Medicaid last and ranchers at the forefront of global age with four major components: crop summer, the Agricultural Research food and fiber production. Research, insurance funding, agricultural re- Conference Report would avoid impos- global food production, global trade search funding, rural development ini- ing multiple inconsistent eligibility and farming profits are all connected. tiatives and food stamp assistance for rules on state and local agencies that Crop insurance is also vital to the legal immigrants. administer both programs. long-term health of American agri- I know that farmers who need crop I urge my colleagues to support Sen- culture. Farming and ranching in- insurance are very worried—and with ator LUGAR and Senator HARKIN in volves risk. That’s a fact of life in good reason—that crop insurance poli- their efforts to get the agricultural re- American agriculture. Crop insurance cies will be canceled if this report does search conference report passed as provides a very important management not pass. quickly as possible. America’s rural tool for our agricultural producers to I know that the agricultural research areas, its farmers and the research withstand fluctuations in the market community, with its Land Grant Uni- community are eagerly awaiting pas- and changes in weather and production versity system, very strongly supports sage of this report. conditions. this research funding so that America Mr. HAGEL. Mr. President, I rise For example, in recent years, severe can be more competitive in world mar- today in support of the Conference weather conditions have forced some kets. Agreement on S. 1150, the Agricultural Nebraska farmers to face the loss of In addition to benefiting farmers and Research, Extension, and Education their crops and livestock. Protecting the agricultural research community, Reform Act of 1998. This measure will farmers and the agri-businesses that the report benefits all rural residents solidify the financial foundation for depend on them from suffering major thorough its rural development pro- crop insurance and agriculture re- losses is what crop insurance alter- grams. search well into the next century. Ag- natives do for America’s producers. Sometimes it is forgotten that most riculture research and crop insurance Comprehensive crop insurance plans rural Americans are not farmers—this are vital to America’s farming and will minimize losses for many agricul- effort benefits both farmers and other ranching livelihood. tural producers so that the economic rural Americans. Research, crop insurance, regulatory damage from diminished crop yields is I also want to speak briefly on the relief, and expanded markets play a not overwhelming for our rural towns food stamp changes. The food stamp vital role in moving federal farm policy and communities. This conference re- changes simply restore benefits for cer- away from government intrusion and port provides 500 million dollars to par- tain level immigrants. The changes are toward a free market through the Fed- tially fund crop insurance delivery ex- modeled on last year’s Balanced Budg- eral Agriculture Improvement and Re- penses. et Act that restored eligibility for SSI form Act of 1996. Farmers and ranchers Research and crop insurance are and Medicaid to some legal immi- now have greater flexibility in their interconnected with agricultural pro- grants. crop and livestock production efforts. duction and basic farm and ranch in- For example, the conference report Crop insurance and research efforts are come. Research keeps American agri- would apply the provisions in the Bal- both tools that will help farm pro- culture on the leading edge of produc- ance Budget Act—that extended bene- ducers become more competitive as tion technology. Crop insurance mini- fits from 5 years, to 7 years, for refu- they move toward a greater reliance on mizes the many risks involved with gees and asylum seekers for SSI and the free market and less upon the fed- producing food and fiber for the world’s Medicaid—to the food stamp program. eral treasury. growing population. The 1996 welfare law made an excep- No country in the world can match I strongly support S. 1150 and urge tion for these types of refugees because America’s efficiency in agricultural my colleagues to support its adoption. they typically come to this country production. Not only is this a result of Mr. KERREY. Mr. President, I rise with very little after escaping persecu- American ingenuity and hard work, it’s today to voice my support for the Agri- tion abroad. They often have no spon- also the result of our investment in culture Research Reauthorization bill. sors. cutting edge research. Our research ef- This bill reaffirms our commitment In the past many of them fought forts have led to more efficient produc- to American agriculture in a number of along with U.S. troops against our tion, better products, new uses for our ways. It reauthorizes existing research common enemies. Some may have es- products—all of which have led to new programs at our land grant universities caped from enemy prisoner of war markets where we can sell our prod- and goes one step further in creating a camps. ucts. S. 1150 provides 600 million dol- new, competitive research initiative to That 5-year limit proved unrealistic lars for the Initiative for Future Agri- study some of the most cutting edge because of long backlogs at the INS. In culture and Food Systems. agricultural issues of the day: food a number of INS offices, these backlogs The global demand for our agricul- safety, agricultural biotechnology, pre- exceeded two years. If the eligibility of tural goods will continue to grow as cision agriculture and the competitive- these refugees ended after five years in the world’s population increases and as ness of small and medium sized farms. the country, they could be left without more nations achieve higher standards As well, it maintains our commit- recourse while their applications to of living, resulting in a demand for bet- ment to the federal crop insurance pro- naturalize were in the INS ‘‘pipeline.’’ ter diets. Research allows American gram, perhaps the most successful pub- The extension of eligibility for SSI agriculture to meet the world’s demand lic-private partnership our government and Medicaid to allow them to receive for food and fiber. Under S. 1150, re- has to boast of. benefits during their first seven years search dollars will go toward new and And just as importantly, it restores in this country was not controversial alternative uses of agricultural com- our commitment to legal immigrants last year: it was included in all major modities and products, agricultural who are elderly, disabled, or children. Republican and Democratic proposals biotechnology, agricultural genome re- Restoring food stamp benefits to these for legal immigrants. search, natural resource management, groups of people is simply the right It should not be controversial this precision agriculture, food safety, and thing to do. year. food technology and human nutrition. But while I commend the conferees It should be noted that this provision These dollars will help our agriculture for their work in satisfying many par- does not assure that these refugees will research facilities, such as the Univer- ties with their work on this bill, I rise receive benefits for two more years— sity of Nebraska, to continue to lead to say it does not go far enough. they still have to be otherwise eligible the world in crop and livestock produc- We have perhaps no more important for food stamps. tion sciences. research need than that of agricultural Refugees and asylum seekers still Expanded markets and increased research. It represents 2% of the total would have to meet the same criteria trade are a clear byproduct of agricul- federal research budget. Yet, between

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4675 today and thirty years from now, we which increase the accountability of research dollars we will be voting on are going to add 5 billion people to the these research projects, making them today may mean that family farmers planet. And all those people are going subject to competition, requiring more in Southern Oregon may be able to to need to be fed. And they are likely stakeholder input, peer and merit re- squeeze enough productivity out of to be fed on less acres, not more. view, and greater collaboration their land to hold onto their farms for The caloric requirement to feed those amongst the research institutions in- a few more seasons. Or it may mean additional 5 billion people will be more volved. Further, the benefits of other that a grass seed farmer in the Willam- than the caloric consumption for the important provisions contained in this ette Valley can export more grass past 10,000 years. It is a huge increase bill, such as funding for crop insurance, straw to Japan due to a quality assur- in consumption requirements. And our rural development, and restoration of ance program. Or it may mean a farm- research is the key to solving that food stamps to certain legal immi- er in the Columbia Basin can use fewer problem. There is a tremendous grants, far outweigh the arguments pesticides on pea plants due to new, amount at stake here for those who against this legislation. I am especially more pest resistant strains or new worry about peace and prosperity. pleased with the food stamp provision growing techniques. For them, the We take this agricultural research which allows the resources of private components of this bill represent the for granted. Indeed, we take all of agri- charitable groups, such as the Oregon American research and technological culture too much for granted. But agri- Food Bank, to reach a wider spectrum know-how that has kept them ahead of cultural research has added so much of our communities. What better way the curve—and hopefully, with your value to our productive capacities, as to use these funds than to enhance our support today, will continue to do so well as to the quality of our lives, that food production, feed our nation’s hun- into the future. it is ridiculous to be struggling to pay gry, and protect America’s farmland? Let’s give our farmers the tools they for it as we are right now. Currently, some of the most impor- need to continue to produce a safe and At the same time, we are going to tant work in the area of agriculture re- bountiful food supply for our families. double the funding for the National In- search is being done in my state, where The conference report before us reaf- stitute of Health, and double the fund- more than 140,000 jobs are tied to farm firms the traditionally strong Congres- ing for the National Science Founda- production, In just one example, re- sional support for American agricul- tion. I support both of those things. search at Oregon State University fa- tural leadership. This legislation en- But it won’t do us any good at all to cilities on wheat strains and diseases joys overwhelming bipartisan support live longer through NIH investments if has resulted in an estimated $8 million and I urge my colleagues to join me in we short agricultural research and we in increased wheat productivity per casting a vote in favor of S. 1150. aren’t able to feed ourselves. And year. Results of their studies are Mr. KENNEDY. Mr. President, at that’s precisely what will happen if we shared with other states like Idaho, long last, we are about to pass the Ag- don’t come up with some satisfactory Montana, Utah, Kansas, and Colorado, ricultural Research, Extension and way to guarantee a long-term funding presented at national and international Education Reform Act conference re- of ag research at higher levels than we symposiums, published in scientific port. I support all its provisions, but I have provided in the past. journals, and communicated through want to speak briefly about one of the Mr. SMITH of Oregon. Mr. President, industry newsletters. Again, this is most important—the restoration of I rise today to speak in support of the just one of the many valuable research food stamps for legal immigrants Agricultural Research, Extension, and projects undertaken in my state by whose benefits were unfairly elimi- Education Reform Act of 1998. The con- OSU through this partnership of fed- nated by the harsh 1996 welfare law. Al- ference report before us reauthorizes eral and state funds. though the amount in this conference various agriculture research programs Agriculture in my state is diverse— report is less than half of the $2 billion at land-grant colleges and universities reflecting the varied geography, soil, proposed in the President’s budget, it through 2002. In addition, it provides an climate types of Oregon’s beautiful is at least a down-payment toward re- for $600 million over five years for a mountains, valleys, coastline, deserts, storing food stamps to the nation’s new competitive grants program for re- and forests. There really is no such neediest legal immigrants. search in key areas such as agricul- thing as an average farmer in my state. The food stamp program was cut by tural genome, food safety, nutrition, He or she may be a large scale wheat $25 billion over 5 years in the 1996 law. new and alternative uses of agricul- grower, a small orchardist, a producer That reduction was clearly unfair. Ac- tural commodities and products, bio- of high quality nursery plants, or a cording to the Department of Agri- technology, natural resource manage- family farmer maintaining cranberry culture, at least 935,000 low-income ment, and farm efficiency. This bill bogs. Despite the varied backgrounds legal immigrants lost their federal food also contains important provisions of Oregon’s farmers, all of them, and I stamps as a result of the 1996 welfare which authorize funding for crop insur- think this would apply to farmers law. Nearly two-thirds are families ance, rural development, and to restore across the country as well, are working with children. Two years later, we are food stamps to certain legal immi- hard to maintain America’s leadership finally remedying a significant part of grants. in agricultural production despite un- this injustice. The critics of S. 1150 most often ques- relenting pressure from all sides—pres- This bill restores food stamps only to tion the costs of the various provisions sure to continue to produse the world’s the most needy legal immigrants—ref- included in the conference report. How- safest food supply while competing ugees, the disabled, and some poor chil- ever, it is important to note that our with imports that may be heavily sub- dren. It helps only 250,000 out of the investment in agricultural research sidized, produced with pesticides illegal 935,000 immigrants cut off from the provides a tremendous return to our in the U.S., or even, as was widely re- food stamp rolls. No one should think economy, generating economic growth ported in the media just yesterday, not our work is done with the passage of and tax revenue through increased ag- even meeting our food safety stand- this bill. ricultural productivity. This return is ards. The effect of the food stamp termi- estimated to be between 35% and 50% For the small family farmer, who nations is not limited to immigrants. nationwide—and even greater in Or- still exists in my state, this pressure is Their children born here are American egon. Additionally, in terms of con- compounded by the struggle to main- citizens, but they too are facing sharp stant dollars, federal spending on agri- tain the way of life which fed our reductions in their food stamps. These culture research has declined over the grandparents and their parents before children remain eligible for food last ten years while other non-defense them. Everyday they defend their stamps themselves, but the removal of research spending in such areas as farm, perhaps part of their family for their parents from the program means health, space exploration, and the envi- generations, for encroaching develop- that, as a practical matter, the food ronment has increased. As an added as- ment, inheritance taxes, and com- stamp benefits for their families have surance that these funds will be spent plicated and ever increasing govern- been cut by 50 to 70 percent in many in the most efficient way possible, the mental regulations. Breakthroughs cases. 600,000 poor children who are conference report contains provisions brought about as a direct result of the American citizens live in families

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4676 CONGRESSIONAL RECORD — SENATE May 12, 1998 where food stamp benefits have been legislation is before the Senate for con- The FARAD program successfully links unfairly lost. These children will not sideration and passage of the Con- producers, veterinarians and the gen- be helped by this bill. ference Report. eral public to an informational re- Many elderly immigrants will also This Act is the result of more than a source network that enables us to receive no assistance from this bill. We year of hard work and can boast broad produce the safest food in the world. cannot forget about their plight. We bipartisan support. By providing $1.7 Agricultural Research Service. I am can and must do more in the future. It billion in agricultural research and ex- most proud of the work conducted at is unconscionable that their benefits tension activities at institutions of the Agricultural Research Service sta- continue to be denied. higher learning across the nation, this tions in Sidney, Montana and Fort So I regard this legislation as an im- Act commits the U.S. government to Keogh at Miles City. I strongly believe portant step, but only a first step. supporting a strong future for agri- that their efforts are of tremendous Mr. SPECTER. Mr. President, I am culture in Montana and across the na- importance to our food industry as well pleased to support the Agricultural Re- tion. as our agricultural trade. The future of search, Extension, and Education Re- I would like to recognize four areas agriculture is in their very capable form Act of 1998. This legislation pro- that affect Montana: hands. They enjoy strong support from vides funding for the federal crop insur- The Montana State University Agri- the agricultural community because ance program, important agricultural culture Extension Service. We have one they are a part of that community. research programs and the restoration of the finest examples of an ag exten- Whenever I am in these towns, I stop of food stamp benefits to approxi- sion service in the country, centered at by and visit these facilities because the mately 250,000 legal immigrants. Montana State University in Bozeman, people that work there, and the com- I have long been a strong supporter Montana. The College of Agriculture, munity that supports them, are very of federal nutrition programs that help led by Dean Tom McCoy, has produced proud of the great work that they do to combat hunger. On November 24, numerous innovative projects worthy for our ag industry. This bill will con- 1997, Senator HARKIN and I sent a letter of recognition. Research at Montana tinue the critical work at these loca- to Secretary of Agriculture Dan Glick- State University has led to more pest- tions. man and Director of the Office of Man- resistant, higher yielding varieties of I would also like to recognize that agement and Budget Franklin Raines, barley and wheat. MSU scientists have this bill supports many other worthy which was signed by forty-five of our improved the value of barley as a feed- projects, including the National Food Senate colleagues. Our letter urged the stock for cattle. And they are using the Genome Strategy, an assistive tech- Administration to provide funding for remarkable power of biotechnology to nology program for farmers with dis- food stamp benefits for some of the develop the answers to the ag chal- abilities, the important Fund for Rural most vulnerable members of our soci- lenges of the next century. The agri- America, Precision Agricultural re- ety: legal immigrants who are children, culture research bill provides the fund- search, and research of wheat and bar- elderly, or disabled. ing necessary for our scientists to ley diseases caused by scab. As the Agricultural Research bill was carry out, continue and build upon This Act is worthy of our immediate sent to conference, I joined with four of their mission to serve our agriculture action. I urge my colleagues to pass my colleagues in a March 23, 1998 letter industry. the Agricultural Research, Extension, urging the conferees to provide relief This bill will also continue funding and Education Reform Act of 1998 and to poor legal immigrants and refugees for the good work demonstrated by our recommend that President Clinton sign who previously were eligible but had country extension agents. Their efforts it without hesitation. lost federal food stamps under the 1996 on behalf of Montana’s agricultural in- Ms. SNOWE. Mr. President, I rise welfare law. I am pleased that the final dustry go above and beyond to provide today in support of the Agricultural conference report restores these bene- resources that help our producers meet Research Conference Report. The bill, fits. I also joined seventy of my col- their bottom line, improve their yield, S. 1150 reauthorizes our agricultural re- leagues in an April 24, 1998 letter urg- and enhance their competitiveness in search programs and provides $600 mil- ing that the conference report be the world marketplace. lion in funding on a competitive grant brought to the floor for a vote as soon Crop Insurance. Today, while we de- basis for new and alternative uses of as possible. bate the passage of this bill, several agricultural commodities and prod- Besides providing food stamp benefits counties in Montana are under severe ucts, natural resources management, to vulnerable legal immigrants, this drought and fire alert. Farmers have farm efficiency and profitability, agri- bill also provides critical funding for waited helplessly for rain while their culture biotechnology, and food safety, the federal crop insurance program, crops wither and die. This is surely a technology and nutrition. which will allow affordable crop insur- make it or break it year due to low This is good news for our scientists ance to be offered to our nation’s farm- prices, a dry winter, and unfair grain and the agriculture community in ers. Agriculture is Pennsylvania’s dumping from our foreign competitors. Maine. They know their chances of re- number one industry, and it is vital The mere threat of crop insurers can- ceiving more competitive research that we provide insurance to our farm- celing policies is an obstacle that many funding are excellent because they ers who work so hard to provide our producers simply cannot overcome. For know they can compete head to head country and the world with a stable that reason, I am pleased that this Act with agriculture researchers from all food supply. The legislation will also contains provisions to strengthen crop around the country. This bill gives provide $600 million over the next five insurance—just when our producers them that opportunity. years in funding for agricultural re- need it most. Clearly, we must take the As the Chairman of the Committee is search programs, which are critical to final step and pass this conference re- aware, I do have some concerns with our country’s efforts to produce enough port. provisions in this conference report food for an ever-increasing world popu- Food Animal Residue Avoidance that were not part of either the House lation. Database. I would like to thank Chair- or Senate passed bills. In addition to The Agricultural Research, Exten- man LUGAR for including my bill, the the food stamp provisions, which have sion, and Education Reform Act is an Food Animal Residue Avoidance Data- been widely discussed on the floor important piece of legislation, for legal base, more commonly known as today, I am concerned with addition of immigrants, our nation’s agricultural FARAD, in this Act. I am pleased that the research title of the Northern For- community, and the nation as a whole. the Conference report authorizes the est Stewardship Act that was included I am therefore pleased to support this Secretary of Agriculture to make in conference. I voted to recommit the legislation. three-year grants to colleges and uni- report to the conference committee in Mr. BAUCUS. Mr. President, I rise versities to operate the FARAD pro- hopes that these two provisions, which today to join my colleagues in support gram. FARAD is critical in our food- are unrelated to the important agricul- of the Agricultural Research, Exten- safety regime. Its database provides in- tural research, would be removed from sion, and Education Reform Act of 1998. valuable information about dangerous the report. Since the vote to recommit At long last, this important piece of residues that affect our food supply. failed, I will vote for the report, and

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4677 will continue to work with Chairman healthy measure of peace of mind to areas. In Maine, the annual total con- LUGAR to address my concerns. Maine’s wild blueberry industry, who, tribution in forest products manufac- I have been working with the Chair- until recently, could not participate in turing is over $5 billion. man and Subcommittee Chairman the program. This report will allow the Mr. President, our agricultural com- SANTORUM to obtain a field hearing in wild blueberry industry to renew their munities, some of the best stewards of Maine on the Northern Forest Steward- contracts for crop insurance, giving our land, produce the safest, the most ship Act (NFSA) before any action was them protection against an economi- nutritious and reasonably priced food taken by the full Senate. I requested cally devastating total crop loss caused products in the entire world. Fur- this hearing because many people in by circumstances beyond their control. thering the competitive grants re- Maine are both interested and con- Research for the potato industry is search system through the Agricul- cerned with the potential impact of being conducted on new chemical-re- tural Research bill before us will go a this bill on the economies of their rural sistant strains of late blight, now de- long way towards the continued im- communities. tected in virtually every major potato provement of our nation’s bountiful I was dismayed, therefore, when I growing state, and the last blight fun- harvests and the continued health and learned that the research title from the gus is quickly developing into the most productivity of our nation’s forests. NFSA bill was included in the Agri- serious threat to potato production in Mr. GRAMS. Mr. President, I rise in culture Research conference report. the United States. History reminds of support of the Conference Report to ac- Also the language inserted in the re- us the great potato famine in Ireland company S. 1150, the Agricultural, Re- port does not include the provision in the last century caused by late search, Extension, and Education Act which requires that a governor’s re- blight, and today’s research helps us to of 1998. For the purposes of this debate, quest is required before federal assist- never again realize such an devastating I will focus on only the research and ance can be made available to the experience. federal crop insurance provisions con- state. This language is fundamental be- In Maine, late blight has already re- tained in this conference report. These cause it involves an elected state offi- sulted in millions of dollars in crop are two of the primary issues impor- cial in the process, ensuring that the losses since 1993, which is not only a tant to farmers and those involved in state controls its land use decisions. I concern for our largest agriculture in- agriculture. Among the important research provi- will be working to restore the role of dustry, but for potato states through- sions provided for in this conference re- the states in making the request for out the eastern U.S. since Maine is the port is funding for Fusarium Head federal assistance, and I thank the primary source of seed potatoes for Blight, or Scab, research. This disease Chairman of the Agriculture Com- these states. has had a devastating impact on pro- Comprehensive late blight Integrated mittee for his offer of assistance in this ducers in Minnesota and North Dakota Pest Management research programs matter. and has caused severe economic losses Historically, our state has been de- through current grants and future over the past five years. The con- fined by our agriculture—from the nat- competitive research grants offered in ference report now before us is an im- ural resources of its extensive forests, the bill before us today will continue portant step in continuing the public/ to the potatoes crops of Aroostook to prevent a full-scale epidemic from private partnership that has evolved as occurring in our region. Needless to County and to the Wild blueberries of we attempt to find a scab-resistant va- say, this is one initiative in which a the Down East area of Maine. The Wild riety of wheat. lowbush blueberry is unique to Maine, modest federal investment will help Also contained within this report is and one of only three berries native to prevent a very costly crop disaster. funding for genome research. This is the U.S. that are utilized commer- The Hatch Act and the McIntire- important in mapping specific traits of cially. Stennis Act are the cornerstones of the corn and other commodities. Isolating Virtually all of the commercial U.S. cooperative/federal/state research ef- those traits which are resistant to lowbush blueberries are produced in fort that has made the U.S. agriculture drought and other natural enemies our state, with 99 percent of the blue- and forestry industries the world’s could maximize yields and enhance berries being processed and used as a leaders. Under these programs, and producer efficiency. The flexibility it nutritious ingredient in many food under broad federal guidelines, states provides to research is reason enough products throughout the country. The can continue to further identify their to pass this legislation in a timely industry is concentrated in the Down local research priorities. manner. East region of Maine, which is an eco- Additional competitive research However, some of my colleagues have nomically depressed region that relies grants for the McIntire-Stennis Pro- expressed concern over the federal crop heavily on natural resource based jobs, gram will provide continued funding to insurance provisions contained in this such as those in the Wild blueberry in- 62 universities nationwide, including conference agreement. While I cer- dustry. the University of Maine, that conduct tainly understand their point, it is im- An increase in competitive research research, teaching, and extension pro- portant that we look at the ‘‘big pic- grants funding will help to continue a grams in forestry and related natural ture.’’ Currently, there is a budget series of research projects that target resource areas. The research focuses on shortfall in the program which jeopard- critical aspects of lowbush blueberry the biology of forest organisms, forest izes the ability of farmers and agri- culture and processing challenges, and ecosystem health, management of for- culture lenders to make management transferring research solutions to the ests for wood, and forest product devel- decisions for the upcoming year. I have growers and processors. Much of the re- opment. Each dollar of McIntire-Sten- spoken with hundreds of individuals in- search completed to date provides nis funding is now matched with five volved in agriculture who have urged techniques for a sustainable approach dollars from nonfederal sources for me to support this funding fix, and I to production with environmental ben- these university programs. am confident they will be just as forth- efits. Wood utilization research contrib- coming as we explore options to pro- Research objectives include imple- utes to research at six land-grant Re- vide producers with greater risk-man- mentation of a research program that gional Research Centers, including agement tools. It is important to re- is designed to ensure a consistently Maine. The work conducted at these member that the conference report productive, high quality, low input universities specializes in the efficient does not contain any major program crop that is successfully marketed in use of wood resources, developing new reforms. It allows for five years of the U.S. and worldwide, with ongoing structural applications for wood, ex- mandatory funding while market-ori- projects for such as pesticide reduction/ ploiting wood chemical extractives for entated reforms are phased-in. Once efficacy, pollination alternatives, ef- safer and less expensive alternatives to the crop insurance budget issue is re- fects and reduction of low temperature current pesticides, preservatives, and solved, we can begin the process of injury, micro nutrient fertility require- adhesives, and exploring the pharma- achieving substantive reform of the ments, and fruit quality improvements. cological properties of trees. Wood uti- federal crop insurance program. The bill also funds the federal crop lization research is particularly impor- Mr. President, we must design alter- insurance program that will give a tant to forest-based economies in rural natives that encourage innovation and

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4678 CONGRESSIONAL RECORD — SENATE May 12, 1998 competition among insurers with an search assures that our nation will would destroy the economy of the en- eye towards moving crop insurance in continue to lead the world in farm pro- tire region. It is in all of our interest the direction of privately developed duction and help bolster the stability to provide our nation’s agriculture pro- policies. I have already begun this of our rural areas. ducers with the means to insulate their process with agriculture leaders in I encourage all my colleagues to sup- businesses and the local economies of Minnesota. I look forward to working port its adoption. which they are an essential part with Senator LUGAR and my colleagues Mr. DASCHLE. Mr. President, I want against conditions like those we expe- in crafting a program which benefits to express my strong support for the rienced statewide last year, and that all taxpayers, while providing farmers Conference Report on S. 1150, the Agri- our northeast corner is fighting now. the opportunity to craft a risk-man- cultural Research, Extension, and Edu- I also want to stress the tremendous agement policy that fits their oper- cation Reform Act of 1998, and to importance of the research reauthor- ation. thank Senator LUGAR and Senator ization in this conference report. We I urge my colleagues to join me in HARKIN for the tremendous effort they owe much of the credit for this coun- supporting this important legislation have devoted to this important legisla- try’s agricultural success to our net- and I look forward to its immediate tion. work of land grant institutions, state passage. Immediate passage of the conference agriculture experiment stations, Mr. CRAIG. Mr. President, I rise report is critical for agriculture re- USDA’s Agricultural Research Service, today in support of the Agricultural search funding, crop insurance, and nu- and hundreds of county extension of- Research, Extension, and Education trition funding for legal immigrants. fices. These entities work together in a Reform Act of 1998. As a member of the The legislation represents desperately wide range of ways to produce cutting- Senate Committee on Agriculture, Nu- needed investment in agricultural re- edge research and then convert it into trition, and Forestry, I have worked search, essential to the continuing pro- improved practices and technology with Chairman LUGAR and the Com- duction of safe, plentiful, diverse, and meaningful to producers. This report mittee for two years to see this Act affordable food and fiber. Furthermore, places increased emphasis on collabo- crafted and passed. I am pleased that failure to pass this legislation will re- ration among institutions and dis- the Leader has allowed it to come to sult in massive reductions in crop in- ciplines, and encourages pursuit of the floor and encourage my colleagues surance delivery around the country, goals benefiting more than one region to support its adoption. especially in high risk areas such as or state. Mr. President, the bill reforms and the Northern Great Plains. The land grant university in my reauthorizes discretionary agricultural Not only will terminated policies ex- state, South Dakota State University, research programs that play an impor- pose farmers to tremendous risk of currently has a highly regarded record tant role in keeping our nation’s farm- crop loss due to events beyond their of strong interdisciplinary and multi- ers competitive in the ever expanding control, such as weather, but without state cooperative work. I am extremely world market. These programs and ex- crop insurance, producers will not be proud of the fine research and exten- tension activities have experienced able to take out operating loans essen- sion SDSU produces, and I am pleased dramatic returns—in the form of better tial to planting crops. This will hit that this legislation will foster their land management, environmentally young, beginning farmers hardest, efforts. It helps level the playing field sound farm practices, increased crop which is terrible for agriculture—los- for small schools competing for limited yield, improved crop varieties, and ing these young producers truly threat- research funds, and it is sensitive to countless other ways—and represent a ens the future of the industry. the relative importance of formula sound investment in the future. The When the last farm bill was passed, funds for institutions in agrarian bill’s reforms will ensure more collabo- farmers nationwide were promised in- states with low populations. ration and efficiency in federally fund- creased access to risk management I am pleased that this legislation pre- ed research and provide for greater ac- tools. This promise was made in ex- serves existing programs that target countability to the American tax- change for the elimination of a wide emerging and critical issues such as payers. range of commodity and disaster pro- the Fund for Rural America. The Fund The bill also provides $600 million grams that had, until then, provided for Rural America was designed to pro- over the next five years in mandatory producers some protection against the vide immediate, flexible, and applied funding to the Initiative for Future Ag- potentially devastating shocks that research and support to people in rural riculture and Food Systems. This new occur in agriculture. areas who are adjusting to rapid mandatory spending will provide $120 Last year, the Dakotas were dev- changes in the agricultural sector since million per year on a competitive astated by extended below freezing the last farm bill. grant basis for six high priority mis- temperatures, winter storms that The Fund also promotes value-added sion areas: agricultural genome re- dumped record levels of snow, and processing, which is vital to successful search; food safety, food technology, spring flooding worse than anyone liv- rural economic development. Our rural and human nutrition; new and alter- ing had ever seen. Even with the ben- communities must capture more of the native uses of agricultural commod- efit of crop insurance we lost hundreds revenue their locally produced com- ities and products; agricultural bio- of producers and farms that had been modities ultimately generate. Value- technology; natural resource manage- in families for over 100 years. I cannot added processing keeps that revenue ment, including precision agriculture; imagine what would be left of the agri- local, which will be critical to the fu- and farm efficiency and profitability. culture industry in South Dakota ture of those communities. In addition, the bill addresses the im- today had we not at least had the ben- In conclusion, I cannot overempha- mediate concerns facing all those who efit of crop insurance last year. size the importance of this legislation rely on federal crop insurance, provides The northeast region of South Da- and its prompt passage. If we are to for the Fund for Rural America, and kota is currently experiencing severe maintain our place in the world as a funds food stamps for the elderly, dis- flooding that is not likely to subside leader in agriculture production and abled, and children of the nation’s for some time. This is in an area that technology, we absolutely must invest poorest immigrants. has been characterized by good farm in agriculture research today. If we are Mr. President, more than just a reau- land for as long as anyone can remem- to have a vital and diverse agriculture thorization bill, the legislation before ber. No one could have anticipated that sector in the future, we also must en- the Senate today is an investment in the farms in these counties and so sure producers have access to reliable the future and represents our commit- many of the roads that connect them and affordable risk management tools ment to America’s farm families. By would be under water today. A strong like the federal crop insurance pro- providing the technical research and and affordable crop insurance program gram. extension activities that help expand will be critical to producers in this The overwhelming bipartisan support farm income, improve resource man- area who are struggling to stay in busi- for the agriculture conference report is agement, and develop new crop vari- ness. Without it, there would be an ex- a tribute to the commitment Senator eties, federally funded agricultural re- odus from this part of my state, which LUGAR and Senator HARKIN have made

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4679 to assuring passage of this critical leg- wise good-government approach taken There being no objection, the mate- islation. I urge my colleagues to ap- by the conferees. rial was ordered to be printed in the prove the report in its current form. Mr. President, most disturbing RECORD, as follows: Mr. MCCAIN. Mr. President, I intend among the objectionable provisions in OBJECTIONAL SPENDING PROVISIONS IN S. 1150, to vote for this conference agreement. this bill is Section 401, which estab- AGRICULTURAL RESEARCH, EXTENSION, AND For the most part, the bill provides lishes a new entitlement program, EDUCATION REFORM ACT OF 1998 funding to address legitimate needs of called the Initiative for Future Agri- Section 241 requires the Secretary of Agri- farmers and the agriculture industry cultural and Food Systems, which is culture to establish an Agricultural Genome for crop insurance, research, and exten- funded at $120 million per year for five Initiative to study the genetic makeup of sion and education programs. I applaud years. Although the grants under this crops. the conferees for including provisions new program will be competitively Section 242 directs the Secretary of Agri- throughout the bill which establish culture to study the control, management, awarded and recipients must provide and eradication of imported fire ants, and es- competitive, merit-based, or peer-re- matching funds, I am concerned that tablishes high priority for 26 specific re- viewed selection procedures for award- the conferees would find it advisable to search and extension programs, including po- ing grants and contracts and allocating establish a brand new mandatory tato blight, ethanol, deer tick ecology, grain funds for various programs. spending program without regard to its sorghum ergot, prickly pear, wood, wild The bill also requires most recipients effect on other high-priority agri- pampas, sheep scrapie, and tomato spotted of funds to contribute matching culture programs. wilt. amounts from non-federal sources. It Section 245 directs the Secretary of Agri- Clearly, this new entitlement is in- culture to cede responsibility for awarding also broadens the scope of many estab- tended to bypass the spending caps lished programs to require a national, grants to develop an agriculture tele- that limit how much is spent on agri- communications network to a consortium regional, or multi-state focus or ben- culture program grants in the annual called A*DEC, which is made up of private efit. appropriations process. It violates the universities and land grant colleges and un- While the bill contains language re- spirit and intent of the budget process specified international members, with lan- garding the establishment or continu- that has resulted, finally, in a pro- guage specifying that grants are to be award- ation of several specific programs, it jected federal budget surplus for this ed competitively regardless of the grant seeker’s membership in A*DEC. does not require the Secretary of Agri- year. culture to comply with the direction in Section 252 requires $60 million each year Mr. President, I intend to take a very the bill, in most cases. For example, for five years to be transferred to the Fund careful look at the appropriations bill the bill authorizes, but does not re- for Rural America. for agriculture programs this year. If, Section 401 establishes a new entitlement quire, the Secretary of Agriculture to as in previous years, another $100 mil- program, the Initiative for Future Agri- acquire and operate the National Swine lion or more is allocated for the same culture and Food Systems, to provide agri- Research Center in Ames, Iowa—an in- programs that are to be funded under culture research grants at a level of $120 mil- stitution which has received ear- lion annually for five years. this new entitlement program, I will be marked funds in appropriations bills Section 405 directs the Secretary of Agri- offering an amendment to remove that for as long as I can remember. I would culture to establish the Thomas Jefferson duplicative funding from the appro- hope that the Secretary would exercise Initiative for Crop Diversification, to coordi- priations bill. I hope to have my col- the discretion provided in this bill and nate public and private research and pro- leagues’ support to prevent this effort motion of new and non-traditional agricul- resist the temptation to expand the to circumvent the budget prioritization tural products. federal bureaucracy to include this process and essentially double the Section 604 directs the Secretary of Agri- wholly unnecessary swine research fa- funding for these types of programs. culture to continue the operation of the cility. Food Animal Residue Avoidance Database Let me also take a moment to ex- Other objectionable provisions in the Program through a program of grants to col- press my support for the provisions in bill establish new bureaucracies and leges and universities. Title V of the bill that make food boards to coordinate activities which Section 614 directs the Secretary of Agri- stamps available to certain categories should be within the capabilities of the culture to establish an Office of Pest Man- of legal immigrants who may fall on existing Department of Agriculture bu- agement Policy to coordinate pest research reaucracy. One such provision estab- and use of management tools. hard times. These provisions simply re- Section 615 orders the Secretary of Agri- store eligibility for food stamps to cer- lishes a Thomas Jefferson Initiative for Crop Diversification, a program coordi- culture to establish a Food Safety Research tain categories of immigrants who Information Office at the National Agricul- were eligible for assistance prior to Au- nated by a nonprofit center to coordi- tural Library, with the direction that the of- gust 22, 1996, when sweeping welfare re- nate cooperative research by public fice sponsor a national conference on food form legislation was enacted. Only ref- and private entities on new and non- safety research priorities within 120 days of ugees and asylees, disabled and elderly traditional crops. Another is the provi- enactment of the bill and every year there- immigrants, children of legal immi- sion authorizing a grant program for after for four years. grants, certain Indians, and certain precision agriculture programs and es- Mr. MCCAIN. Because of the inclu- Hmong and Highland Laotians, all of tablishing precision agriculture part- sion of these low priority, unnecessary, whom had to be lawfully residing in nerships. Other provisions include the and wasteful programs, I voted in favor the United States on August 22, 1996, establishment of an Office of Pest Man- of Senator GRAMM’s motion to recom- are again eligible for food stamps. agement Policy and a Food Safety Re- mit the bill to conference so that these In these times of economic pros- search Information Office, and a man- provisions could be addressed again perity, Americans can certainly afford date to continue the operation of the and, hopefully, deleted from the bill or to be compassionate to our most vul- Food Animal Residue Avoidance Data- revised to prevent the waste of tax- nerable immigrants. Last year, the base program. payer dollars. Congress restored to these same cat- Funding for these new programs is Unfortunately, the motion to recom- egories of immigrants eligibility for subject to future appropriations and mit was defeated by a wide margin. Supplemental Security Income and participants are required to provide However, since I believe the many posi- Medicaid. Finally, it should be noted non-federal matching funds. However, tive aspects of this bill outweigh these that the cost of providing assistance to the parameters and criteria specified in onerous provisions, I intend to support an estimated 250,000 individuals is off- the bill will require new regulations the conference agreement. set in its entirety by reductions in the and bureaucracies for implementation. The PRESIDING OFFICER. Is there administrative expenses of the food These efforts have both monetary costs further debate on the conference re- stamp program and other programs. and potentially negative effects on port? Again, I thank the conferees for in- other agriculture priorities. The Senator from Iowa. cluding these many excellent provi- Mr. President, I ask unanimous con- Mr. HARKIN. Mr. President, let me sions in this bill. sent that a list of objectionable provi- just wrap up by again thanking Sen- However, as usual, there are a num- sions in the bill be printed in the ators for the overwhelming vote that ber of glaring exceptions to the other- RECORD. we just had. I think that vote will send

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4680 CONGRESSIONAL RECORD — SENATE May 12, 1998 a clear signal to the House to move I also thank all the staff who worked Mr. LUGAR. I ask for the yeas and very rapidly on the bill. We will get it very hard for a long time, for well over nays on the conference report. down to the President and hopefully a year now, to get us to this point: The PRESIDING OFFICER. Is there a get this important conference report Randy Green, our staff director; and sufficient second? signed in very short order. Dave Johnson, chief counsel; Ms. Terri There is a sufficient second. I can just tell you, there will be a Nintemann on the majority side; on The yeas and nays were ordered. giant sigh of relief among the agri- the minority side, Dan Smith, Mark The PRESIDING OFFICER. Is there culture community from coast to coast Halverson, Phil Schwab and Richard further debate on the conference re- and border to border as soon as this bill Bender. There are a number of other port? If not, the question is on agreeing gets signed, because then we can get on staff. These are our leaders. They did a to the conference report. The yeas and to the business of getting our crop in- great job of pulling this bill together, nays have been ordered. The clerk will surance policies renewed around the keeping us on course and making sure call the roll. country and we can get on with the we got to conference and got it all The assistant legislative clerk called business of revamping, revising, and wrapped up. We are very blessed with a the roll. strengthening agricultural research very good and very capable staff. I The PRESIDING OFFICER. Are there throughout America. But the most im- thank them for all the long hours and any other Senators in the Chamber de- portant and most vital aspect of the hard work they put in. siring to vote? bill in the immediate future is the Crop Mr. President, I yield the floor. The result was announced—yeas 92, Insurance Program. Farmers will be as- The PRESIDING OFFICER. The Sen- nays 8, as follows: sured right away that they will be able ator from Indiana. [Rollcall Vote No. 129 Leg.] Mr. LUGAR. Mr. President, the rank- to continue their protection against YEAS—92 disaster losses. ing member, Senator HARKIN, was char- acteristically gracious and generous, Abraham Durbin Lott Mr. President, let me again com- Akaka Enzi Lugar pliment and thank my chairman, Sen- and I appreciate his comments. I want Allard Faircloth Mack ator LUGAR, first for his leadership on to tell him how much I have appre- Ashcroft Feingold McCain ciated working with him and with all Baucus Feinstein McConnell the ag research provisions of the bill. Bennett Ford Mikulski He has said many times that, entering of our colleagues on what I believe is a Biden Frist monumental advance for not only Moseley-Braun the new century, we need to have a new Bingaman Glenn Moynihan approach, and new ways of doing our American agriculture, but for feeding Bond Gorton Murkowski the world in the next 50 years, as well Boxer Graham Murray research in agriculture. He is abso- Breaux Grams Reed as the assurance of our farmers imme- Brownback Grassley lutely right. I was happy and proud to Reid diately in crop insurance and humane Bryan Hagel support him in those efforts. It took Robb Bumpers Harkin quite a while to get the bill worked measures with regard to nutrition pro- Roberts grams. Burns Hatch through the hearing processes, through Byrd Hollings Rockefeller I simply mention, Mr. President, that Roth negotiations in conference, getting all Campbell Hutchinson Dave Johnson and Terri Nintemann Chafee Hutchison Santorum the issues worked out on research, but Sarbanes have been mentioned. Of course, our Cleland Inouye Shelby it was done, and we had good, bipar- distinguished Randy Green, who does Coats Jeffords tisan support. Cochran Johnson Smith (OR) so much on the majority side in like- Snowe I believe the chairman has fashioned Collins Kempthorne wise guiding all of the committee staff Conrad Kennedy Specter an Ag research bill that is really going efforts. But I also will mention Marcia Coverdell Kerrey Stevens to help us move ahead in the next cen- Thomas Asquith, Beth Johnson, Andy Morton, Craig Kerry tury in producing new kinds of crops, D’Amato Kohl Thompson Michael Knipe, Bob Sturm, Debbie new products from and uses for crops, Daschle Landrieu Thurmond Schwertner, Carol Dubard, Kate DeWine Lautenberg Torricelli in biotechnology, in improving agricul- Wallem, Kathryn Boots, Chris Salis- Dodd Leahy Warner tural productivity and natural resource Domenici Levin Wellstone bury, Danny Spellacy, Terri Snow, Dorgan Lieberman Wyden protection. So I believe we will see a Whitney Mueller, and Jennifer whole new focus and revitalization of Cutshall, because this has been a 2-year NAYS—8 our agricultural research. It is long effort on the part of all of these indi- Gramm Inhofe Sessions overdue, but this bill will move us in Gregg Kyl Smith (NH) viduals and they have contributed Helms Nickles that direction. highly. I thank the chairman also for his I have consulted with the distin- The conference report was agreed to. leadership on crop insurance, in mak- guished majority leader, TRENT LOTT, Mr. HARKIN addressed the Chair. ing sure that we addressed this need to and with the distinguished ranking The PRESIDING OFFICER. The Sen- provide that critical element of a safe- member, TOM HARKIN, and it will be ator from Iowa. ty net for farmers, because, as we all our request that there be a final roll- Mr. HARKIN. Mr. President, again I know, they need this crop insurance, call vote. I alert colleagues that that thank all Senators for their strong both to cover disasters over which they will be coming, hopefully soon. vote in support of this legislation. have no control and also to make sure I appreciate very much the leader Hopefully now we can get it to the they have the collateral they need for working with us to make this time pos- President, and get his signature, and obtaining financing for their farming sible and this opportunity to debate. I again reassure farmers all over the operations. Farmers rely on crop insur- mention specifically the importance of country that they will be able to renew ance, and agricultural lenders rely on the contribution of Senator GRAMM, their crop insurance programs for next it. who is a member of our committee, year. So, this provision is going to be very, who argued well a point of view that f very meaningful to make sure that did not prevail but, at the same time, INDIA’S NUCLEAR TESTS farmers, and we here in Congress, do sharpened the focus of all of us on not have to be worrying every single those things we believe are important Mr. HARKIN. Mr. President, I under- year how we will find funding to con- in this legislation. stand that the Senate is not on any tinue crop insurance—and whether in Finally, I mention Senator DOMENICI, legislation right now. I would like to fact farmers will have crop insurance. who had only a very small speech but take just a few minutes of the Senate’s That is going to be a great relief to our an important one with regard to caps time to talk about the disturbing farming community all over America. and entitlements in the budget and events that happened in South Asia Finally, on the food stamp provi- overall considerations. We are mindful yesterday. sions, again, I thank the chairman for of what he had to say and grateful for Mr. President, to paraphrase a speech his great leadership in making sure we his support ultimately of our effort. that President Roosevelt gave 57 years produced a sound bill and held together I yield the floor. ago in the House Chamber, yesterday is our coalition encompassing agricul- The PRESIDING OFFICER (Mr. GOR- a day that will live in infamy, for the tural and nutrition matters. TON). Is there further debate? Nation of India. At a time when world

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4681 tensions are being reduced, when the thor of the law, is quoted as saying, hope they do not, although my hopes cold war is over, when nuclear arsenals ‘‘Those sanctions are mandatory,’’ and seem to be feint in light of what the are being reduced, at a time when we the only way to delay them is if the Government of India said yesterday, are on the threshold of signing a Com- President tells Congress that their im- intend to weaponize their nuclear pro- prehensive Test Ban Treaty, the Na- mediate imposition would harm na- gram. Not only have they tested these tion of India deliberately and provoca- tional security. And that delay can weapons, they seem to have sent a tively, with total disregard for world only last 30 days. Congress can only re- clear signal that they are going to in- opinion and total disregard for regional move the sanctions by passing a law or corporate these weapons in their mili- stability in South Asia, detonated joint resolution. tary arsenal both for short-range, three nuclear weapons. And to make ‘‘It would be hard to avoid the possi- medium- and obviously perhaps even matters even worse, they were deto- bility of sanctions,’’ a senior State De- for long-range purposes. nated near the border with Pakistan. partment official said. ‘‘There is no At a time when India needs to invest These tests were conducted without wiggle room in the law.’’ in education, when it needs to invest in advance warning to the international Further quoting our colleague, who its infrastructure, at a time when India community. They clearly work against is quoted again in the New York Times really needs to reach peaceful agree- the goals of nonproliferation and inter- this morning, Senator GLENN called the ments with its neighbor, Pakistan, on national stability. Indian’s Prime Min- tests ‘‘the triumph of fear over pru- the issue of Kashmir, which is still a ister’s principal secretary said after- dence, a monumental setback for ef- volatile issue. At a time when China wards that with the test, ‘‘India has a forts to halt the global spread of nu- and India need to get together to dis- proven capability for a weaponized nu- clear weapons.’’ cuss their roles in South Asia in the fu- clear program.’’ Mr. President, the Nation of India is ture, India has thumbed its nose at its Mr. President, India’s behavior is no longer the nation of Mohandas Gan- neighbors. When the Government of clearly unacceptable. These under- dhi, I am sorry to say. The Nation of Pakistan came to power under the ground tests could well trigger a nu- India has embarked on a new and dan- Prime Minister Nawaz Sharif, it clear arms race in the region. gerous course in South Asia, one that I reached out to India, to the previous I believe that the United States think has ominous foreboding for all of government. Prime Minister Sharif should be prepared to exercise the full their neighbors in that area, and also held out the olive branch. He asked range and depth of sanctions available for us here in the United States. that talks be conducted, that they take under law. For example, the Nuclear Of course, it is my fervent hope that steps to reduce the tensions in the re- Proliferation Prevention Act of 1994 re- India’s neighbors will show restraint. It is my hope and my desire that Paki- gion. quires the President to cut off almost Those talks proceeded, tensions were stan and China and other nations in all U.S. Government aid to India, bar reduced, and then elections were held that region will recognize the impor- American banks from making loans to in India and a new government was the Government, stop exports of Amer- tance of caution despite this dan- elected. The hopes and the dreams, the ican products with military uses such gerous, inflammatory and provocative actions taken by the Prime Minister of as machine tools and computers, and, move by India. Again, they should not Pakistan, Nawaz Sharif, and others in most importantly, oppose aid to India follow the lead of India but recognize the region are now dashed and doomed by the World Bank and the Inter- the importance of restraining a nuclear if India doesn’t make a quick U-turn in national Monetary Fund. arms race. An article that appeared this morn- I believe that this Senate should also its policies. But India has already ing in the New York Times pointed out press for appropriate action by the taken its actions, and its actions, I am that, ‘‘India is the world’s largest bor- international community. The inter- afraid, will have very serious repercus- rower from the World Bank, with more national community should join with sions. than $44 billion in loans; it is expecting the United States in bringing to bear But, again, we cannot give up. I know about $3 billion in loans and credits whatever sanctions it can, especially in that Pakistan several times called for this year.’’ the World Bank to cut off all loans to restraint, to call for talks. Well, I think it is time for the United India. Well, I call on Pakistan and the other States to exercise its voice and vote in Again, what India has done under- nations of the region not give up on the World Bank, and let India know scores the need for a nuclear test ban their efforts to pursue a peaceful path, that no longer can it come and get that treaty. But now it becomes clear why, to again reach out to India to begin the kind of money if all it is going to do is in August of 1996, after years of dif- long and arduous task of negotiations spend its money on developing and ficult negotiations, we finally got a to reduce tensions and to reduce the testing not only fission weapons but final treaty supported by all countries nuclear arsenal in that area of the yesterday a thermonuclear weapon, a for a comprehensive test ban, India re- world. hydrogen bomb. fused to sign. Maybe now we know why. I remain fearful not only because of Further quoting from this article, The treaty was endorsed by a 158-to- Pakistan but because of China. What Monday’s tests ‘‘came as a complete 3 margin at the United Nations. How- will China do now? Will China believe shock, a bolt out of the blue’’ to the ever, India walked out and said they that it must now proceed to further White House, one senior administra- weren’t going to sign. test its nuclear weapons to show India tion official said. ‘‘It’s a fork in the We cannot give up. We cannot let that it is not going to be intimidated? road.’’ ‘‘Will India and Pakistan be this action by the Government in India No, Mr. President, what India did yes- locked in a nuclear arms race? Will the deter us from our goal of a comprehen- terday will live in infamy, and it is sad Chinese resume nuclear testing now?’’ sive test ban. because India has made great progress What is also disturbing is that our I do not in any way mean my re- in the last 50 years. I note at this time intelligence agencies obviously did not marks today to implicate all of the the President has recalled our ambas- pick up any signs that the tests were wonderful people of India, many of sador to India. I compliment him for imminent and reported that activities whom I have counted as my friends, that action. at the test site appeared to be routine. many of whom worked very hard on Quite frankly, I hope this sends an- Let’s see now. How much did we the issues of human rights, social jus- other strong signal to India that it is spend on our intelligence agencies last tice, ending child labor. But I do wish not going to be business as usual with year? About thirty billion dollars? And by my remarks today to implicate and the U.S. Government because of what they can’t even tell us when one of the condemn in the strongest possible lan- they did yesterday. It cannot be said largest nations on Earth is going to ex- guage permitted in this body the ac- too strongly that India took a terrible, plode nuclear weapons? You wonder tions by the Government of India. This terrible step yesterday and only India what that $30 billion is going for. I was its decision. This was its deliberate can undo it. I hope they will. But their think a thorough review needs to be decision to conduct these tests in clear words and their actions indicate to me made of our intelligence operation. disregard for the opinion of the world. they may and probably will not. I feel Back to the point, Senator JOHN So the Government of India bears a sorry for India. I feel sorry for the peo- GLENN, our colleague, who is the au- heavy responsibility for what follows. I ple of India. I feel sorry for the kids

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4682 CONGRESSIONAL RECORD — SENATE May 12, 1998 that are working in the plants and the My colleague from California, DIANNE provided no money. This stamp will factories and the carpet looms who FEINSTEIN, introduced this legislation raise money for all the women and want a better future and a better edu- here in the Senate as Congressman VIC families afflicted by this dread disease. cation. I feel sorry for the millions of FAZIO did in the House of Representa- Let’s prove the post office wrong and people in poverty who want a little bit tives. While popular, the bill needed a make the sale of this stamp a record- better life in India but are now going vehicle to get it passed. I decided that setting event. to have to struggle because more and if the Post Office could sell a Bugs I thank all my colleagues, and espe- more of their money is going into their Bunny stamp, they could sell a stamp cially Senator FEINSTEIN, for their help weapons and their nuclear arsenal. And to raise money for breast cancer re- in making this semi-postal stamp a re- I feel sorry for the people of Pakistan, search. I was able to add the proposal ality. I urge you to join with the Post- too, again, who have made great to an appropriations bill, and, along al Service, corporate sponsors, and strides in the last 50 years to build a with the support of the majority of my breast cancer groups to plan events to nation, to build an infrastructure that colleagues here in the Senate and the launch the sale of this stamp com- will allow for a moderate Islamic State House, the stamp now is born and in pletely around the country and in all to exist in that area, and I feel sorry existence. the States. It has to be a success. for the people of China. What is its The Postal Service was not excited I thank the Chair, and I yield the re- Government going to do now? about doing this stamp, and they were mainder of my time. Mr. President, we can only hope and concerned that other groups sponsoring The PRESIDING OFFICER. The Sen- pray that South Asia will now see this other diseases would be pushing for a ator from Maine. as a sign that they must get together similar stamp. I find no problem with Ms. COLLINS. Mr. President, I sug- and sign a comprehensive test ban that. I just cosponsored a bill intro- gested the absence of a quorum. treaty now, stop nuclear testing now, duced by Senator SNOWE and Senator The PRESIDING OFFICER. The stop the arms race now; that India and BURNS that would create a semi-postal clerk will call the roll. China and Pakistan must get together stamp to raise money for prostate can- The bill clerk proceeded to call the and work out their problems through cer research. I think this is a great way roll. serious peaceful negotiations and not to let the public play a much larger Mr. BROWNBACK. Mr. President, I through the bluster of provocative ac- role in helping fund medical research, ask unanimous consent that the order tions taken by India yesterday to in- and the effort should be encouraged. In for the quorum call be rescinded. crease the arms race, especially the nu- fact, the Postal Service Board of Gov- The PRESIDING OFFICER. Without clear arms race. ernors met today and selected an old objection, it is so ordered. Mr. President, I call on India to dis- friend and fellow North Carolinian, Bill Mr. BROWNBACK. Mr. President, I avow what they did yesterday, to Henderson, to serve as the next Post- ask to speak up to 3 minutes as in admit they made a mistake, to reach master General. Let me be the first to morning business. out to their neighbors in a serious at- congratulate an old friend. The PRESIDING OFFICER. Without tempt to sign the Comprehensive Test I have asked each member of the objection, it is so ordered. Ban Treaty, and to stop this madness Postal Service Board to contribute an f once and for all. additional amount to this effort by I yield the floor. THE U.S.-INDIAN RELATIONSHIP The PRESIDING OFFICER. The Sen- turning over what would normally be Mr. BROWNBACK. Mr. President, ator from North Carolina. collected for administrative costs to Mr. FAIRCLOTH. Mr. President, I the cancer research fund. In other Senator HARKIN from Iowa recently ask unanimous consent for 10 minutes words, all of the gross money would go spoke on the floor about the terrible in morning business. to cancer research. This is especially occurrence recently happening in The PRESIDING OFFICER. Without important in light of the fact that the India, the explosion of three nuclear objection, it is so ordered. Postal Rate Commission has just rec- devices, which has been roundly con- demned around the world. It is very de- f ommended that we raise the price of a first-class stamp by 1 cent. stabilizing in the Indian subcontinent THE BREAST CANCER STAMP If only 20 percent of first-class stamp and is going to trigger a set of auto- Mr. FAIRCLOTH. Mr. President, I buyers decide to buy this postal matic sanctions. would like to ask everyone to take a stamp—only 20 percent, one-fifth—we In the Foreign Relations Committee, moment to look at the most important will raise $120 million annually. That is at 2 p.m. tomorrow afternoon, we will stamp ever issued in our history, and the same amount of funding increase be holding a hearing about the actions that is the one we have the painting of we fought for in last year’s budget for taken by the Indian Government, its here on the easel. I joined the U.S. the National Cancer Institute. The consequences on the U.S.-Indian rela- Postal Service in unveiling this stamp stamp will be sold for 40 cents when it tionship, and its consequences through- in Chapel Hill, NC, yesterday, the day goes on sale in August. The difference out that subcontinent. I certainly in- after Mother’s Day, as my colleague, in price from 32 cents or 33 cents re- vite all the Members of the U.S. Senate Senator FEINSTEIN, did the day before quired to send a first-class letter, ei- and others interested to watch these in Los Angeles, CA. ther the 7 cents or 8 cents, will go di- hearings and to follow those, because For the first time in U.S. history, the rectly to the NIH and the Department this is a significant event that has oc- public will be able to play a more di- of Defense for their breast cancer re- curred. It has significant ramifications rect role in funding medical research search studies. on U.S.-India relationships and is an and setting research priorities because If I could turn this into a ‘‘Home action that is happening in one of the of this stamp. Shopping Channel’’ for a moment and most volatile regions of the world. This may look like a regular first- address all the folks who may be I think we all advise and advocate class postage stamp, but it is not. It is watching: Please, I ask that they strongly, for our allies and other a semi-postal stamp, the first of its themselves buy and urge their friends friends of ours in the neighborhood, for kind ever issued in this country. It to buy the stamp when it goes on sale there to be a calm, stable response to took an Act of Congress to create it, this August. It is a wonderful gift, and this and that there not be further test- and we did just that. It was done to when so giving it, when you make a ing to take place. We will explore these raise money for breast cancer research. gift, No. 1, you are sure the gift will be issues in the Foreign Relations Com- Incidentally, the United States is the used, and you encourage the recipients mittee tomorrow at 2 o’clock. only Nation around the world that has of the gift to in turn buy the stamp I yield the floor. not issued semi-postal stamps before, themselves after the gift supply has f but this stamp is different because part been exhausted. of the proceeds of this stamp will go di- There may be some confusion be- HIGH-TECH WEEK rectly to the NIH and the Department cause about a year ago the post office Mr. LOTT. Mr. President, I am of Defense to pay for breast cancer re- released a breast cancer awareness pleased that the Senate will be consid- search. stamp. This was a nice gesture, but it ering a series of bills that truly impact

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4683 and shape our lives in this age of ever- I want to thank my Senate col- The Senate proceeded to consider the changing technology. leagues for their diligent leadership bill which had been reported from the Many of us in this chamber can re- and keen focus on tackling these legis- Committee on Commerce, Science, and member a time when the words ‘‘Inter- lative challenges. Their willingness Transportation, with amendments, as net’’ and ‘‘intellectual property’’ had and commitment to work in a bipar- follows: no meaning in our day-to-day activi- tisan manner is the reason we are here (The parts of the bill intended to be ties. That is changing. Rapidly chang- today. Although some of the issues stricken are shown in boldface brack- ing. New, competitive markets are may be fundamentally noncontrover- ets, and the parts of the bill intended emerging, and exploding, thanks to sial, I know the issues are complex, and to be inserted are shown in italic.) continuing technological advance- I appreciate their efforts. S. 1618 ments and innovations. Mr. President, I look forward to the Be it enacted by the Senate and House of Rep- The potential benefits of such un- debate. It is also my hope that progress resentatives of the United States of America in precedented growth is exciting. Besides will be continued, and consensus Congress assembled, transforming the structure of the com- SECTION 1. IMPROVED PROTECTION FOR øCON- achieved, on other critical pieces of SUMERS AGAINST ‘‘SLAMMING’’ BY munications industry, high technology legislation to address a variety of high- TELECOMMUNICATIONS CARRIERS.¿ is literally changing the way millions technology related concerns shared by CONSUMERS. of us live and do business. many in this Chamber. (a) VERIFICATION OF AUTHORIZATION.—Sub- I would like to share a good Samari- section (a) of section 258 of the Communica- tan story about how wireless tech- f tions Act of 1934 (47 U.S.C. 258) is amended to nology does impact, and possibly save, CONSUMER ANTI-SCAMMING ACT read as follows: lives. OF 1998 ‘‘(a) PROHIBITION.— Mrs. Debbie Sanders, one of my con- ‘‘(1) IN GENERAL.—No telecommunications Mr. MCCAIN. Mr. President, I ask øcarrier shall¿ carrier or reseller of tele- stituents from the small town of Enid, unanimous consent that the Senate communications services shall submit or exe- Mississippi, is the 1998 recipient of the proceed to the consideration of S. 1618. cute a change in a subscriber’s selection of a VITA Wireless Samaritan Award for I ask further consent there be 2 hours provider of telephone exchange service or her act of heroism. On her way home telephone toll service except in accordance of general debate on the bill, equally from a long day at work as a store’s as- with this section and such verification proce- divided in the usual form. sistant manager, Debbie saw a car dures as the Commission shall prescribe. I further ask consent that the only flipped upside down in a water-filled ‘‘(2) VERIFICATION.— first-degree amendments, other than ditch. She used her wireless phone to ‘‘(A) IN GENERAL.—In order to verify a sub- committee amendments, be the fol- scriber’s selection of a telephone exchange call for help and pulled the victim from lowing, and that the first-degree service or telephone toll service provider the vehicle. Not sure of her exact loca- amendments be subject to relevant sec- under this section, the telecommunications tion on this lonely stretch of deserted, carrier or reseller shall, at a minimum, re- rural road, Debbie had to remain on ond-degree amendments: Manager’s amendment; Collins-Durbin amend- quire the subscriber— the phone for over one hour with emer- ‘‘(i) to acknowledge the type of service to gency personnel until she and the vic- ment—No. 1, liability, No. 2, penalties, be changed as a result of the selection; tim could be reached. No. 3, report slamming complaints; a ‘‘(ii) to affirm the subscriber’s intent to se- Mr. President, this is only one exam- Rockefeller amendment on Telecom; a lect the provider as the provider of that serv- ple of how high technology can en- Reed amendment on slamming; Levin ice; ø ¿ hance our world. amendment on billing information, ‘‘(iii) to affirm that the subscriber the There will be boundless opportunity surety bonds switchless; Feingold consumer is the subscriber or is authorized to select the provider of that service for the in the next century for new techno- amendment on CB interference; Fein- stein amendment on telephone privacy; telephone number in question; logical applications to evolve. With ‘‘(iv) to acknowledge that the selection of that opportunity will come an absolute McCain amendment that is relevant; a the provider will result in a change in pro- necessity for a highly skilled labor Harkin amendment on telemarketing viders of that service; and work force to ensure America’s com- fraud; and a Hollings amendment that ø‘‘(v) to acknowledge that the individual petitive standing and high-technology is relevant. making the oral communication is the sub- leadership. Our vibrant economy is di- The PRESIDING OFFICER. Is there scriber; and¿ rectly tied to this cutting-edge tech- objection? Without objection, it is or- ‘‘ø(vi)¿ (v) to provide such other informa- nology. Bills that advance our coun- dered. tion as the Commission considers appro- priate for the protection of the subscriber. Mr. MCCAIN. Upon disposition of all try’s ability to compete will strength- ‘‘(B) ADDITIONAL REQUIREMENTS.—The pro- en our future and our children’s future. amendments, the bill be read a third cedures prescribed by the Commission to Several measures will be considered, time and the Senate then proceed to verify a subscriber’s selection of a provider but I want to particularly mention the vote on passage of S. 1618 with no inter- shall— Consumer Anti-Slamming Protection vening action or debate; provided fur- ‘‘(i) preclude the use of negative option Act. We need a public policy to crack ther that Senator BRYAN be recognized marketing; down on slamming. We need to protect further to speak on the bill. ‘‘(ii) provide for verification of a change in the telephone consumer. The world in- The PRESIDING OFFICER. Is there telephone exchange service or telephone toll deed is shrinking, and we all have come objection? service provider in oral, written, or elec- tronic form; and to depend upon long distance service, Mr. DORGAN. Reserving the right to ‘‘(iii) require the retention of such not as a luxury but as a necessity. We object, did the Senator from Arizona verification in such manner and form and for want to talk to those closest to our note Senator MURRAY in his list of such time as the Commission considers ap- hearts, wherever they may be. amendments? propriate. The practice of ‘‘slamming’’—unau- Mr. MCCAIN. I say to my friend that ‘‘(3) INTRASTATE SERVICES.—Nothing in this thorized switching of long distance Senator MURRAY and Senator COATS section shall preclude any State commission telephone service carriers by com- both agreed to drop their amendments from enforcing such procedures with respect peting service providers—must stop. It on the assurance that these respective to intrastate services. ‘‘(4) SECTION NOT TO APPLY TO WIRELESS.— is abusive to the consumer, and has be- pieces of legislation will be brought up come much too frequent and too dis- This section does not apply to a provider of at a later date. commercial mobile service, as that term is ruptive. Our colleagues have told us Mr. DORGAN. I have no objection. defined in section 332(d)(1) of this Act.’’. horror stories in the past, and today we The PRESIDING OFFICER. Without (b) RESOLUTION OF COMPLAINTS.—Section will hear even more illustrations of objection, it is so ordered. 258 of the Communications Act of 1934 (47 slamming abuses. With this statute, I The clerk will report. U.S.C. 258) is amended by adding at the end thereof the following: join my colleagues in urging the FCC The bill clerk read as follows: to strengthen its enforcement program ‘‘(c) NOTICE TO SUBSCRIBER.—Whenever A bill (S. 1618) to amend the Communica- there is a change in a subscriber’s selection to stop this unscrupulous practice. tions Act of 1934 to improve the protection of of a provider of telephone exchange service Tougher penalties against companies consumers against ‘‘slamming’’ by tele- or telephone toll service, the telecommuni- that intentionally slam will be an ef- communications carriers, and for other pur- cations carrier or reseller selected shall no- fective solution. poses. tify the subscriber in writing, not more than

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4684 CONGRESSIONAL RECORD — SENATE May 12, 1998

15 days after the change is øexecuted, of the ‘‘(2) on behalf of any subscriber, any dam- ‘‘(6) EFFECT ON STATE COURT PRO- change, the date on which the change was ef- ages awarded the subscriber under this øsec- CEEDINGS.—Nothing contained in this sub- fected, and the name of the individual who tion.’’.¿ section. section shall be construed to prohibit an au- authorized the change.¿ processed by the tele- (g) CHANGE INCLUDES INITIAL SELECTION.—For thorized State official from proceeding in communications carrier or the reseller— purposes of this section, the initiation of service State court on the basis of an alleged viola- (1) of the subscriber’s new carrier; and to a subscriber by a telecommunications carrier tion of any general civil or criminal statute (2) that the subscriber may request informa- or a reseller shall be treated as a change in a of such State. tion regarding the date on which the change subscriber’s selection of a provider of telephone ‘‘(7) LIMITATION.—Whenever the Commis- was agreed to and the name of the individual exchange service or telephone toll service. sion has instituted a civil action for viola- who authorized the change. (c) STATE RIGHT-OF-ACTION.—Section 258 of tion of regulations prescribed under this sec- ‘‘(d) RESOLUTION OF COMPLAINTS.— the Communications Act of 1934 (47 U.S.C. tion, no State may, during the pendency of ‘‘(1) PROMPT RESOLUTION.— 258), as amended by subsection (b), is amend- such action instituted by the Commission, ‘‘(A) IN GENERAL.—The Commission shall ed by adding at the end thereof the fol- subsequently institute a civil action against prescribe a period of time, not in excess of lowing: any defendant named in the Commission’s ø ¿ ‘‘ø(g)¿ (h) ACTIONS BY STATES.— 120 days, for a days after a telecommuni- complaint for any violation as alleged in the ‘‘(1) AUTHORITY OF STATES.—Whenever the cations carrier or reseller receives notice, for the Commission’s complaint. attorney general of a State, or an official or telecommunications carrier or reseller to re- ‘‘(8) DEFINITION.—As used in this sub- agency designated by a State, has reason to solve a complaint by a subscriber concerning section, the term ‘attorney general’ means believe that a telecommunications carrier or an unauthorized change in the subscriber’s the chief legal officer of a State. reseller has engaged or is engaging in a pat- selection of a provider of telephone exchange ‘‘ø(h)¿ (i) STATE LAW NOT PREEMPTED.— tern or practice of changing telephone ex- service or telephone toll service. Nothing in this section or in the regulations change service or telephone toll service pro- ‘‘(B) UNRESOLVED COMPLAINTS.—If a tele- prescribed under this section shall preempt vider without authority from subscribers in communications carrier or reseller fails to re- any State law that imposes more restrictive that State in violation of this section or the solve a complaint within the time period intrastate requirements or regulations on, or regulations prescribed under this section, prescribed by the Commission, then, within which prohibits unauthorized changes in, a the State may bring a civil action on behalf 10 days after the end of that period, the tele- subscriber’s selection of a provider of tele- of its residents to enjoin such unauthorized communications carrier or reseller shall— phone exchange service or telephone toll ‘‘(i) notify the subscriber in writing of the changes, an action to recover for actual monetary loss or receive $500 in damages for service.’’. subscriber’s right to file a complaint with (d) REPORT ON CARRIERS EXECUTING UNAU- each violation, or both such actions. If the the Commission concerning the unresolved THORIZED CHANGES OF TELEPHONE SERVICE.— court finds the defendant willfully or know- complaint, the subscriber’s rights under this (1) REPORT.—Not later than October 31, 1998, ingly violated such regulations, the court section, and all other remedies available to the Federal Communications Commission shall may, in its discretion, increase the amount the subscriber concerning unauthorized submit to Congress a report on unauthorized of the award to an amount equal to not more changes; changes of subscribers’ selections of providers of than 3 times the amount available under the ‘‘(ii) inform the subscriber in writing of the telephone exchange service or telephone toll preceding sentence. procedures prescribed by the Commission for service. ‘‘(2) EXCLUSIVE JURISDICTION OF FEDERAL filing such a complaint; and (2) ELEMENTS.—The report shall include the ‘‘(iii) provide the subscriber a copy of any COURTS.—The district courts of the United following: evidence in the carrier’s or reseller’s posses- States, the United States courts of any terri- (A) A list of the 10 telecommunications car- sion showing that the change in the sub- tory, and the District Court of the United riers that, during the 1-year period ending on scriber’s provider of telephone exchange States for the District of Columbia shall the date of the report, were subject to the high- service or telephone toll service was sub- have exclusive jurisdiction over all civil ac- est number of complaints of having executed un- mitted or executed in accordance with the tions brought under this subsection. Upon authorized changes of subscribers from their se- verification procedures prescribed under sub- proper application, such courts shall also lected providers of telephone exchange service or section (a). have jurisdiction to issue writs of man- telephone toll service when compared with the ‘‘(2) RESOLUTION BY COMMISSION.—The Com- damus, or orders affording like relief, com- total number of subscribers served by such car- mission shall provide a simplified process for manding the defendant to comply with the riers. resolving complaints under paragraph (1)(B). provisions of this section or regulations pre- (B) The telecommunications carriers, if any, The simplified procedure shall preclude the scribed under this section, including the re- assessed fines under section 258(e) of the Com- use of interrogatories, depositions, dis- quirement that the defendant take such ac- munications Act of 1934 (as added by subsection covery, or other procedural techniques that tion as is necessary to remove the danger of (c)), during that period, including the amount might unduly increase the expense, for- such violation. Upon a proper showing, a per- of each such fine and whether the fine was as- mality, and time involved in the process. manent or temporary injunction or restrain- sessed as a result of a court judgment or an The Commission shall issue an order resolv- ing order shall be granted without bond. order of the Commission or was secured pursu- ing any such complaint at the earliest date ‘‘(3) RIGHTS OF COMMISSION.—The State ant to a consent decree. practicable, but in no event later than— shall serve prior written notice of any such SEC. 2. REPORT ON TELEMARKETING PRAC- ‘‘(A) 150 days after the date on which it re- civil action upon the Commission and pro- TICES. ceived the complaint, with respect to liabil- vide the Commission with a copy of its com- (a) IN GENERAL.—The Federal Communica- ity issues; and plaint, except in any case where such prior tions Commission shall issue a report within ‘‘(B) 90 days after the date on which it re- notice is not feasible, in which case the 180 days after the date of enactment of this solves a complaint, with respect to damages State shall serve such notice immediately Act on the telemarketing practices used by issues, if such additional time is necessary. upon instituting such action. The Commis- telecommunications carriers or resellers or ‘‘(3) DAMAGES AWARDED BY COMMISSION.—In sion shall have the right— their agents or employees for the purpose of resolving a complaint under paragraph ‘‘(A) to intervene in the action; soliciting changes by subscribers of their (1)(B), the Commission may award damages ‘‘(B) upon so intervening, to be heard on all telephone exchange service or telephone toll equal to the greater of $500 or the amount of matters arising therein; and service provider. actual damages. The Commission may, in its ‘‘(C) to file petitions for appeal. (b) SPECIFIC ISSUES.—As part of the report discretion, increase the amount of the award ‘‘(4) VENUE; SERVICE OF PROCESS.—Any civil required under subsection (a), the Commis- to an amount equal to not more than 3 times action brought under this subsection in a sion shall include findings on— the amount available under the preceding district court of the United States may be (1) the extent to which imposing penalties sentence. brought in the district wherein the defend- on telemarketers would deter unauthorized ‘‘(e) PENALTY.— ant is found or is an inhabitant or transacts changes in a subscriber’s selection of a pro- ‘‘(1) IN GENERAL.—Unless the Commission business or wherein the violation occurred or vider of telephone exchange service or tele- determines that there are mitigating cir- is occurring, and process in such cases may phone toll service; cumstances, violation of subsection (a) is be served in any district in which the defend- (2) the need for rules requiring third-party punishable by a fine of not less than $40,000 ant is an inhabitant or where the defendant verification of changes in a subscriber’s se- for the first offense, and not less than may be found. lection of such a provider; and $150,000 for each subsequent offense. ‘‘(5) INVESTIGATORY POWERS.—For purposes (3) whether wireless carriers should con- ‘‘(2) FAILURE TO NOTIFY TREATED AS VIOLA- of bringing any civil action under this sub- tinue to be exempt from the verification and TION OF SUBSECTION (a).—If a telecommuni- section, nothing in this section shall prevent retention requirements imposed by section cations carrier or reseller fails to comply with the attorney general of a State, or an official 258(a)(2)(B)(iii) of the Communications Act of the requirements of subsection (d)(1)(B), or agency designated by a State, from exer- 1934 (47 U.S.C. 258(a)(2)(B)(iii)). then that failure shall be treated as a viola- cising the powers conferred on the attorney (c) RULEMAKING.—If the Commission deter- tion of subsection (a). general or such official by the laws of such mines that particular telemarketing prac- ‘‘(f) RECOVERY OF FINES.—The Commission State to conduct investigations or to admin- tices are being used with the intention to may take such action as may be necessary— ister oaths or affirmations or to compel the mislead, deceive, or confuse subscribers and ‘‘(1) to collect any fines it imposes under attendance of witnesses or the production of that they are likely to mislead, deceive, or this section; and documentary and other evidence. confuse subscribers, then the Commission

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4685 shall initiate a rulemaking to prohibit the HOLLINGS of South Carolina, the distin- Microsoft’s Bill Gates, Netscape’s use of such practices within 120 days after guished Ranking Democrat on the James Barksdale, and Texas Instru- the completion of its report. Commerce Committee. Joining us as ments’ Thomas Engibous, put this Mr. MCCAIN addressed the chair. cosponsors are the distinguished Ma- point well: The PRESIDING OFFICER. The Sen- jority Leader, Senator LOTT, and Sen- Failure to increase the H–1B cap and the ator from Arizona. ators FRIST, BRYAN, JOHNSON, KERRY, limits that will place on the ability of Amer- Mr. MCCAIN. Mr. President, today ABRAHAM, SHELBY, SNOWE, FEINGOLD, ican companies to grow and innovate will the Senate begins consideration of a se- and BOB SMITH. also limit the growth of jobs available to ries of bills dealing with critical issues The Consumer Anti-Slamming Act is American workers * * * Failure to raise the raised by the transformation and rapid designed to put a stop, once and for all, H–1B cap will aid our foreign competitors by growth of the telecommunications in- to inexcusable marketing tactics that limiting the growth and innovation potential of U.S. companies while pushing talented dustry. lead to a consumers’ long-distance people away from our shores * * * [this] This transformation in telecommuni- telephone company being switched could mean a loss of America’s high tech- cations is being driven by constant without consent. Right now two con- nology leadership in the world. changes in telecommunications tech- sumers are ‘‘slammed’’ every minute of Mr. President, our competitors nology. The small mass media universe every day, which makes slamming far abroad are waiting for the opportunity of fifty years ago, occupied by a few and away the most pervasive consumer to surpass us. They can only do this if large AM radio stations, has given way problem in telecommunications today. we allow them to. We cannot allow our to an electronic marketplace teeming We will then shift our focus to Inter- high-tech industries to be hamstrung with alternative sources of information net-related issues. The information by an arbitrary cap on immigration of technology industry is estimated to ac- and entertainment. FM radio, TV, skilled workers. cable and satellite television, and the count for one-third of our real eco- The Internet has provided widespread Internet have become sometimes com- nomic growth. Currently, electronic access to enormous quantities of infor- peting, and sometimes complementary, commerce is in the neighborhood of mation. This in turn has made it nec- mass media outlets. In the world of several billion dollars per year, but essary to update our copyright laws to telecommunications, the days of Ma that figure is expected to skyrocket protect the rights of copyright holders Bell were numbered by the advent of into hundreds of billions in only a few in the Information Age. microwave radio and satellite tech- years more. S. 2037, The Digital Millennium Copy- nology. First there was competition for The growth and continued expansion right Act, is aptly named. As of the information technology industry long-distance service; then wireless digitization of commerce, education, has vastly increased the need for high- services appeared and exploded. Cel- entertainment, and a host of other on- ly-skilled individuals to work in this lular radio, paging, and now personal line applications proceeds, inter- industry. We need these workers, and communications services—all are now national copyright agreements have to their skills, to retain our nation’s lead- an indispensable part of everyday be maintained and updated. In addi- ership in Information Age technology. American life. tion, the rights of copyright owners Unfortunately, however, our country For those of you old enough to re- need to be assured as technology pro- isn’t producing them in the numbers member back twenty years—and I gresses. That not only safeguards the needed. Therefore, temporary solutions think the Presiding Officer can do copyright holder’s rights, but also that—think of how different your life must be found to enable our high-tech industries to remain competitive, assures that new material will be free- is today than it was then. Most of these ly produced and made available to all changes were due to the growth of tele- while we address problems in the edu- cational system that have led to our Internet users. communications. For those of you too Finally, Mr. President, while infor- inability to produce the needed work- young to remember that far back, I can mation technology has opened up force in this country. assure you that twenty years from S. 1723, The American Competitive- whole new avenues for commerce, now, you will look back on today and ness Act of 1998, will increase the year- learning, and education, it has also marvel at the changes you will have ly cap on H–1B immigration visas for opened up whole new approaches to seen. skilled workers, while creating new shady dealings and unfair business Today the driving force in tele- educational opportunities for Ameri- practices, and the public should be pro- communications is digital technology. cans to join the information tech- tected from these. And while we con- Digital technology has not only made nology workforce that is now so criti- tinue to work to prevent these occur- some of today’s new services possible— cally short of the skilled personnel we rences, we must also work to ensure it is also causing formerly different need. that existing consumer protection laws services to converge, and it is prom- Mr. President, I am proud to be a co- function as they were intended, and do ising Americans new and exciting serv- sponsor of this measure. I commend my not produce unintended or unfair re- ices in the future. The convergence of colleague, Senator ABRAHAM, for his sults against either consumers or com- your television and your computer is leadership on this issue, and I am panies. on the horizon. So also is a telephone proud to be a cosponsor of this bill in My colleague, Senator GRAMM, has that can simultaneously translate con- company with Senators HATCH, taken a keen interest in these issues as versations held in different languages. DEWINE, SPECTER, GRAMS, BROWNBACK, they are embodied in the Private Secu- We need no longer talk about the In- ASHCROFT, HAGEL, BENNETT, MACK, rity Litigation Reform Act signed into formation Age in the future tense. It’s COVERDELL, LIEBERMAN, BURNS, Sen- law during the 104th Congress. Senator here and now, and it’s reshaping our ator BOB GRAHAM of Florida, and Sen- GRAMM has led the Securities Sub- world. ator GORDON SMITH of Oregon. I would committee in reviewing the effective- As telecommunications technology also like to compliment Senator FEIN- ness of this law, and he and his fellow changes the way we live, our laws must STEIN for her efforts at reaching a con- Subcommittee members have found it change to keep pace. The growth of sensus on this issue with her fellow to be insufficient in some areas dealing competition in the long-distance indus- members of the Judiciary Committee. with class-action suits, particularly try now gives consumers over 500 com- Should we fail to pass this measure, those brought in state rather than fed- panies to choose from. Because of that our industry will not be able to access eral courts, and those in which a valid competition, the consumer is better the wealth of talent not currently cause of action has been fraudulently off. But the growth in long-distance available here at home. This reality or inadequately presented. competition has also given rise to cut- will have a quantifiable negative im- Although frivolous security class ac- throat marketing practices. pact on American jobs and American tions are a particular problem for the The first bill we will consider and de- industry. Without passage of this bill, high-tech industry, to the extent con- bate today is S. 1618, the Consumer we are forcing companies to shift jobs sumers have been harmed the industry Anti-Slamming Act of 1998. It is offered overseas. must be held accountable. Therefore, by myself and my good friend and dis- A letter signed by the CEOs of four- the issue of securities reform is deserv- tinguished colleague Senator FRITZ teen leading companies, including ing of debate in the Senate.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4686 CONGRESSIONAL RECORD — SENATE May 12, 1998 Mr. President, these four bills, al- ming, yet aggressive long-distance Award treble damages to wronged parties— though apparently so different, do have telemarketers continue to mislead con- providing the FCC with authority in resolv- a unifying thread just as old and new sumers. ing a complaint to increase the amount of the original award times three; and methods of communicating are united On April 21st, the Federal Commu- Punish violating carriers with severe first by a common concern. Whether we are nications Commission imposed a $5.7 and second offense fines—imposing fines of talking about telephones or advanced million fine on a small long-distance not less than $40,000 for the first offense and computer technology, analog or dig- company that had been slamming con- not less than $150,000 for each subsequent of- ital, data or video, our laws must be sumers for years. While this is by far fense, a substantial deterrent to violating sure that all segments of the tele- the largest fine the FCC has ever levied carriers. for this offense, the FCC took action AARP believes that, as competition devel- communications industry respond to ops throughout the telecommunications in- the consumers’ needs, respect con- only after receiving over 1,400 com- dustry, all telephone carriers should be sub- sumers’ rights, and provide the services plaints about this company over the ject to provisions similar to these. We also America needs to take us into the un- course of 2 years, and by now the believe that the issues attendant to the prac- imaginably exciting and challenging slammer has disappeared. This in- tice of ‘‘cramming’’ need to be addressed in future that lies before us. stance shows yet again that the FCC’s the near future. We look forward to working These bills are the first of a series of current rules are completely ineffec- with you toward that goal. In the meantime, legislative initiatives the Senate will tive in preventing slamming. the provisions of this bill move consumer protections in the right direction. The Asso- consider this session that together are S. 1618 is a bill designed to stop slam- ciation stands ready to work with you as you intended to achieve these goals. ming once and for all. This legislation seek final passage of this important piece of Mr. President, with that, I conclude establishes stringent antislamming legislation. the overview of these four bills. safeguards as well as stringent civil Sincerely, Mr. President, concerning S. 1618, the and criminal penalties that will dis- HORACE B. DEETS, Consumer Anti-Slamming Act, con- courage this practice. It prescribes de- Executive Director. sumers across the country are unfortu- finitive procedures for carriers to fol- [From USA TODAY, May 11, 1998] nately all too familiar with a practice low when making carrier changes, pro- CALLERS FALL VICTIM TO TELCOM WAR known as ‘‘slamming.’’ Slamming is vides a menu of remedies for con- COMPLAINTS OF SLAMMING, PHONY CHARGES the unauthorized changing of a con- sumers that have been slammed and sumer’s long-distance telephone com- SKYROCKET gives Federal and State authorities the (By Steve Rosenbush) pany. It is a problem that continues to power to impose tough sanctions, in- harm consumers despite efforts at the NEW YORK.—Jean Franklin, a Salem, Ore., cluding high fines and compensatory homemaker, was billed last year for several Federal and State level to fight it. punitive damages. hundred dollars worth of adult-chat phone That is why we need to ensure the pas- Mr. President, these measures, in ad- calls. sage of the slamming legislation that I dition to those that the States may de- American Billing & Collection sent the in- have introduced. The distinguished velop, will ensure that consumers are voices to her home, but the calls—which Senator from South Carolina, Senator afforded adequate protection against eventually totaled $1,100—were billed to a telephone number she and her husband, Ken- HOLLINGS, who serves as the ranking slamming. In light of the seriousness neth, canceled years earlier when they member of the Senate Commerce Com- and scope of the slamming problem, I moved. mittee, joins me in cosponsoring this urge my colleagues to support this leg- She’d been ‘‘crammed’’—billed for a phone bill. I thank him for his invaluable as- islation. service she never bought. sistance in developing this important Mr. President, I ask unanimous con- ‘‘I was surprised, but I thought it was a piece of legislation to restore and safe- sent that a letter from the AARP, mistake that could be easily corrected,’’ guard consumer rights. I also thank along with a Monday, May 11 article in Franklin says. Instead, American Billing, which declined to comment for this story, the other cosponsors of this bill: Sen- USA Today be printed in the RECORD. eventually turned the matter over to a col- ators LOTT, SNOWE, REED, FRIST, There being no objection, the mate- lection agency. BRYAN, DORGAN, JOHNSON, HARKIN, rial was ordered to be printed in the Her credit report marred by reported bad KERRY, INOUYE, ABRAHAM, BAUCUS, RECORD, as follows: debt, Franklin complained to the California SMITH, and Bob SMITH, for joining me AARP, attorney general’s office and the Federal in this effort. Washington, DC, May 11, 1998. Trade Commission. Last month, regulators Mr. President, slamming isn’t just Hon. JOHN MCCAIN, filed charges in U.S. District Court in Los persisting, it is increasing. Slamming Russell Senate Office Building, Angeles accusing American Billing and two other phone companies of using deceptive complaints are the fastest growing cat- Washington, DC. DEAR SENATOR MCCAIN: The American As- and unfair practices to bill people for adult- egory of complaints reported to the sociation of Retired Persons (AARP) com- chat services. But the bad debt is still on Federal Communications Commission, mends you for introducing S. 1618, a bill to Franklin’s record. having more than tripled in numbers improve the protection of consumers against It’s a tale from the trenches of the telecom since 1994. Last year, 44,000 consumers the unauthorized switching of long distance wars, where millions of consumers like filed slamming complaints with the telephone service providers. According to the Franklin are suffering the collateral dam- FCC. That is a 175 percent increase FCC, this practice known as ‘‘slamming,’’ is age. Armies of companies have poured into the increasingly deregulated $200 billion U.S. from the 16,000 complaints the FCC re- the fastest growing consumer complaint in telecommunications. We believe that the market, overwhelming the limited resources ceived in 1996. provisions in your bill to amend the Commu- of regulators with aggressive and sometimes The extent of the slamming problem nications Act of 1934 to curtail ‘‘slamming’’ illegal practices. is even worse than indicated by the are good for consumers. Desperate for a tactical advantage, other number of complaints filed at the FCC. S. 1618 includes most of the elements nec- companies are rushing to market with inno- According to the National Association essary to close off loopholes in the existing vative products and services that sometimes of State Utility Consumer Advocates, law that make telephone subscribers vulner- don’t work. Make an evening phone call on a slamming is now the most common able to fraudulent or deceptive practices. congested network, such as the one in Los Angeles, and seven times out of 100 it won’t consumer complaint received by many Key provisions would: Define switching verification procedures— go through on the first attempt, says State consumer advocates. It has been requiring the telecommunications carrier to Bellcore, a telecommunications research estimated that as many as 1 million receive a series of affirmations from the sub- company. AT&T says users of its directory consumers are switched annually to a scriber prior to verifying the switch; assistance get the number they ask for only different long-distance telephone com- Preclude the use of negative option mar- nine out of 10 times. Buy a prepaid calling pany without their consent. The sever- keting—ending this onerous practice of card, and there’s a good chance the call ity of the slamming problem was exem- switching subscribers for failure to tell the won’t go through. Many of the basic services plified just days ago by a new report carrier that they are not interested; and products that people took for granted in Require a detailed, written notice of the monopoly era simply don’t work—or that 4,800 residents of one small town change to subscriber—notify the subscriber don’t work well—today. Annual telephone- in Washington State, about 70 percent in writing, within 15 days after the change, related complaints and inquiries have soared of the town, were slammed at one time. of the change, the date on which the change more than tenfold since 1990; the Federal For several years, the FCC has at- was effected and the name of the individual Communications Commission logged 44,035 tempted unsuccessfully to deter slam- who authorized the change; in 1997 alone.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4687 ‘‘Here is the dark side of competition and return money they collect from slamming American Billing & Collection sent the in- choice,’’ says FCC Chairman William victims. In California, a new law requires voices to her home, but the calls—which Kennard. ‘‘Sure, life was easier when they long-distance carriers to hire a third party eventually totaled $1,100—were billed to a had no choice,’’ Kennard says. ‘‘But that is to authenticate every request for service telephone number she and her husband, Ken- not what consumers want.’’ changes. neth, canceled years earlier when they Or is it? The phone companies are policing them- moved. Long-distance rates have fallen 60% since selves, too. AT&T filed lawsuits in March She’d been ‘‘crammed’’—billed for a phone the 1984 dismantling of AT&T, and con- against three independent sales agents it service she never bought. sumers can choose from hundreds of new car- suspected of the problem. AT&T says agents riers. ‘‘But it was a lot easier to use the who account for less than 5% of the com- * * * * * phone before they broke up AT&T. And I pany’s consumer long-distance sales were re- Long-distance rates have fallen 60% since don’t think you really save that much sponsible for about two-thirds of slamming the 1984 dismantling of AT&T, and con- money now because companies charge you complaints against AT&T. sumers can choose from hundreds of new car- riers. ‘‘But it was a lot easier to use the for other things,’’ says Alan Kohn of BILLED AND BILKED phone before they broke up AT&T . . .,’’ says Woodbridge, N.J., who was dismayed when he Scams are multiplying as deregulation Allan Kohn . . . who was dismayed when he couldn’t find a pay phone that accepted his spreads. Complaints of cramming—cases like couldn’t find a pay phone that accepted his calling card. that of Jean Franklin—are the newest calling card. Statistics from phone companies, con- twists, and they are soaring. sumer advocates and state and federal regu- A host of small, independent companies are Mr. President, by far the bulk of con- lators don’t begin to capture the depth of billing customers—sometimes on their local sumer complaints at the FCC are about consumer frustration with phone services. phone bills—for information services, such as slamming, switching consumers long- HEADACHES EVERYWHERE horoscopes and sports scores, that they distance service without permission. Directory assistance costs more, often re- didn’t order. Some people are billed at ran- And it goes on to talk about the 20,000 quires a wait, and increasingly provides dom; others are the victims of carelessness and error by carriers and billing companies. complaints. wrong numbers. The toll on callers is more AT&T alone says 500,000 of its 80 mil- than $50 million a year if just 5% of the 1.5 The FCC has processed 1,123 complaints of billion long-distance information calls are cramming since it began tracking them last lion residential customers were inaccurate. Not to mention the frustration December. And last week, Bell Atlantic slammed last year. of dealing with computer-generated voices cracked down on cramming, in effect saying ‘‘I resented the fact that I had been instead of operators. Carriers like AT&T that it would no longer allow 20 smaller com- changed without notice,’’ says Jim Pringle blame local phone companies that won’t panies to place their charges on Bell Atlan- of Pittsboro, N.C. ‘‘But what I resented al- share their databases of names and phone tic bills. most more was that somebody benefited The company, which serves more than 41 numbers. from the lag between when it occurred and million customers from Virginia to Maine, Prepaid calling cards, ‘‘On the whole, they when I realized it.’’ said it is receiving hundreds of complaints a are worth it,’’ says Dan Singhani, 45, a news- day and that more than 80% are legitimate. Mr. President, I recognize on the stand owner in Manhattan who uses them Floyd Brown’s cramming case is typical. floor Senator COLLINS who has been several times a week to call relatives in Brown, 76, of Carlsbad, Calif., said American India and Hong Kong. ‘‘But some cards don’t heavily involved in this issue. And billing charged his mother earlier this year work. . . . Or you are talking and the line is after Senator DORGAN speaks, I think for $44.55 worth of information services it disconnected.’’ she will seek to address her amend- said she had purchased over the phone. ‘‘She Pay phone charges. Muriel Flore thought had been dead for a year and a half,’’ Brown ment. But I want to thank her for her she was using her calling card when she says. involvement in this issue, the hearings stopped during an interstate trip to call her And Franklin and her husband are still that she held in her subcommittee and vet and check on her sick cat. She was struggling to resolve their dispute with the the enormous contributions she has stunned several weeks later when Oncor company. The bad debt remains on their Communications billed her more than $12 for made in causing this bill to progress. credit reports, and shame has kept them I yield the floor. the five-minute call. Oncor agreed to cancel from applying for loans to buy a new car and the bill after Flore complained to the FCC. Mr. DORGAN addressed the Chair. a new house. ‘‘It’s not going to be over until The PRESIDING OFFICER (Mr. The company did not return phone calls for that item is removed from our credit re- this story. port,’’ Franklin says. SMITH of Oregon). The Senator from Fragile phones. A micro-processor-driven Mr. McCAIN. The AARP writes: North Dakota. telephone ruined by just a drop of water that Mr. DORGAN. Mr. President, let me The American Association of Retired Per- seeps through the keypad. add my congratulations to Senator ‘‘SLAMMED’’ sons (AARP) commends you for introducing S. 1618, a bill to improve the protection of COLLINS on the work that she has done, By far, the bulk of consumer complaints to consumers against the unauthorized switch- and certainly to the Senator from Ari- the FCC are about slamming: switching a ing of long distance telephone service pro- zona, Senator MCCAIN, and Senator customer’s long-distance service without viders. According to the FCC, this practice, permission. Last year, the FCC received HOLLINGS. Senator HOLLINGS has asked known as ‘‘slamming’’ is the fastest growing more than 20,000 complaints. But the actual me to be present for him. He is tending consumer complaint in telecommunications. incidence of slamming is much higher. AT&T to other Senate business at the mo- We believe that the provisions in your bill to alone says 500,000 of its 80 million residential ment. amend the Communications Act of 1934 to customers were slammed last year. curtail ‘‘slamming’’ are good for consumers. This is an important piece of legisla- ‘‘I resented the fact that I had been tion. We appreciate very much the bi- changed without notice,’’ says Jim Pringle * * * * * AARP believes that, as competition devel- partisan work that was done to bring it of Pittsboro, N.C. ‘‘But what I resented al- to the floor of the Senate. most more was that somebody benefited ops throughout the telecommunications in- from the lag between when it occurred and dustry, all telephone carriers should be sub- I would like to just, for a couple of when I realized it.’’ ject to provisions similar to these. We also moments, give an overview of where we Ronald J. Carboni thinks a disgruntled believe that the issues attendant the prac- are and then bring it to this piece of neighbor, playing a prank, switched his tice of ‘‘cramming’’ need to be addressed in legislation—and I will be rather brief— phone service from Sprint to National Tele- the near future. We look forward to working after which I will be interested in hear- phone & Communications. Carboni, 52, was with you toward that goal. In the meantime, ing from the Senator from Maine as the provisions of this bill move consumer charged $8.92, a fee National immediately well. dropped once notified of the problem. protections in the right direction. The Asso- Records show someone had forged Carboni’s ciation stands ready to work with you as you The breathtaking changes in tele- name as ‘‘Batboni.’’ National never con- seek final passage of this important piece of communications and in the tele- firmed the order. legislation. communications industry in recent Lawmakers and regulators are cracking Mr. President, yesterday there was years have been quite remarkable. No down, though slamming complaints rep- an article in the USA Today which is one could have anticipated what we resent only a fraction of the 50 million included in the RECORD, and it says: would see in technology and in oppor- changes that consumers made in their long- ‘‘Callers fall victim to telecom war, tunities that exist from the changing distance service last year. Last month the technology. FCC levied the biggest slamming fine in his- complaints of slamming, phony charges tory, a $5.7 million penalty against the skyrocket.’’ I, in a speech some while ago, held up Fletcher Cos., run by a 30-year-old fugitive Jean Franklin, a Salem, Ore., homemaker, a vacuum tube, a small vacuum tube named Daniel Fletcher. The FCC has vowed was billed last year for several hundred dol- that we are all familiar with, and then to increase penalties and force companies to lars worth of adult-chat phone calls. I held up next to it a little computer

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4688 CONGRESSIONAL RECORD — SENATE May 12, 1998 chip that was about one-half the size of Chairman of the FCC, which I think ing? Yes. Is that petty cash? No; that is my little fingernail, and I said, ‘‘The will implement the Telecommuni- grand theft. The fact is, that goes on little computer chip equals 5 million cations Act, which is very detrimental across the country all too often. vacuum tubes.’’ Sometimes we forget to high-cost areas and rural areas of Yesterday, Mr. President, on the to equate what is happening in these the country. We are going to debate floor, I held a clipping from the news- little chips and in their power and in that more in the months and years paper in North Dakota. It just so hap- their capability, but it is really quite ahead. pened that, coincidentally, the North remarkable what has happened to Let me talk specifically about the Dakota papers had a story that said speed, storage density, memory and all telecommunications area that does that the North Dakota Attorney Gen- the other things that relate to these work and works well. One of the areas eral had been the victim of slamming. breakthroughs. that works and provides the fruits and Someone had decided to change the at- The CEO of one of the large compa- benefits of competition to virtually torney general’s long-distance carrier nies, IBM as a matter of fact, in a re- every American is the competition in without asking her. port to the annual meeting that I had long-distance telephone service. This is Now, am I suggesting that slammers read, I guess, about 6 or 8 months ago, an area—long-distance telephone serv- are stupid? Well, not always. They cer- talked about the research they are ice—in which there is robust, aggres- tainly seem to steal a lot of money. doing in the area of storage density, sive competition. Anywhere you look, But is it a stupid slammer that decides which kind of relates to all this tech- you will find a telephone company en- they are going to change the long-dis- nology. And I was struck by what he gaged in selling long-distance service. tance service of an attorney general of said. He said we were on the verge of a If you don’t think so, just sit down for a State without telling them? Yes, that breakthrough with respect to storage dinner some night, and somebody will is pretty stupid. But this is not about density, such that the time was near, give you a cold call from an office being stupid or funny, it is about steal- he thought, when we would be able to somewhere in a State far away, and ing. The hearings that were held by store all of the volumes of work at the they will be trying to sell you their Senator COLLINS, and others, and the Library of Congress, which represents long-distance service. They apparently work done has been to respond to a the largest volume of recorded human only dial at mealtime—at least into very real problem that is significant. history anywhere on Earth—we would our home. But I think every American Now, the FCC complaints about this be able to store all of that, 14 million is familiar with these telephone calls— slamming—the unauthorized change of volumes of work, on a wafer the size of ‘‘Won’t you take our long-distance a long-distance service—increased from a penny. service?’’ As I indicated, up to 500 com- 2,000 five years ago, to 20,000 last year. Think of that—carrying around in panies are robustly competing for the The FCC indicates that there is a sub- your pocket to slip into a laptop a consumer dollar. What has happened to stantial amount of slamming going on, wafer the size of a penny that contains the cost of long-distance service? It has evidenced by the complaints to the 14 million volumes of work. Unthink- gone down, down, down. That rep- FCC. The GAO did a report that, in able? No. It is where technology is resents the fruit and the benefit of fact, was rather critical of the FCC’s heading. good competition. enforcement on these slamming issues, In my little high school, where I But one other thing has happened saying that the antislamming meas- graduated in a class of nine, we had a with respect to this competition. As is ures ‘‘do little to protect the con- library the size of a coat closet. That the case where there is robust competi- sumers from slamming.’’ high school now has access to the larg- tion, there are also some bad actors. In We have a problem; yet, we are not able to solve that problem with the est libraries in the world through the this case, ‘‘bad actors’’ means that peo- regulatory agency, either because it is Internet. All of this is made possible by ple get involved in this business of try- not doing what it ought to do, it the breakthroughs in technology and ing to sell a long-distance service to a doesn’t exert enough energy, or per- the telecommunications industry and customer that already has a long-dis- haps it doesn’t have enough authority. the development of the information su- tance provider but decides they are But whatever the reason—and it might perhighway. Many of us are very con- going to sell it the shortcut way—they be a combination of all of those reasons cerned, as public policy develops in all are not even going to ask the consumer —this problem is not going away; it is of these areas, that we make certain whether they want to change pro- growing much, much worse. that the benefits of all of this are viders. Through sleight of hand, they In 1997, with 20,000 complaints, the available to all Americans, that the on- are going to engage in a technological FCC obtained only 9 consent decrees ramps and off-ramps for the informa- stealing of sorts; they are going to from companies nationwide that paid a tion superhighway, yes, stop even in switch someone’s long-distance service total of $1.2 million in fines because of my hometown, in my small county. and not tell them about it. That is, in slamming. In the same year, Cali- So as we develop legislation such as fact, stealing; that is, in fact, a crimi- fornia, by comparison, suspended one the Telecommunications Act, which nal act. One might ask, is that hap- firm for 3 years because of slamming, Congress passed a couple years ago, pening a lot? Yes, it is happening a lot. and fined it $2 million, and ordered it and try to evaluate what kinds of pol- Here is a story about the king of to repay another $2 million to its cus- icy guidance we can give as this indus- slammers. I was trying to evaluate tomers. One State, the State of Cali- try grows, it is very important that we where this word ‘‘slammer’’ came from. fornia, did far more than the FCC. I do this right. Frankly, nobody knows where the word hope that this piece of legislation we I might say, as I begin, that I am ‘‘slammer’’ came from. But the defini- will pass will give the FCC the author- concerned about universal service, tion of ‘‘slammer,’’ as it is used in this ity, energy, and resources to join us about the availability of universal context, is someone who goes in and and do what we must do to respond to service—especially in telephone serv- changes someone else’s long-distance this slamming. ice—in the years ahead, in the high- carrier without telling them and with- Now, let me read what the legislation cost areas and rural areas of our coun- out authorization. It is stealing. It is does. It strengthens the antislamming try. I hope very much that the Federal criminal. laws and requires the FCC to establish Communications Commission will The king of slammers is Daniel the following consumer protections: make a U-turn with respect to some of Fletcher. Let me cite him as an exam- One, it prohibits a carrier from the policy decisions they have made ple. The head of the FCC, William changing a local subscriber’s long-dis- which I think threaten universal serv- Kennard, said, ‘‘This is truly a bad tance service, unless the carrier follows ice in the future. There is still time for actor. He is a felon who clearly had in- the minimum verification procedures them to make some recalculations and tent to violate the FCC’s rules, and prescribed by the FCC—sets up specific some different policy judgments. I have we’re hitting him hard.’’ But not too procedures that must be followed. met with Chairman Kennard and oth- hard, because they haven’t found him. Two, it requires carriers to keep an ers, and I hope very much that they He changed a half-million people’s oral, written, or electronic record of a will make some different judgments long-distance carrier, and he, appar- subscriber authorizing a change in than what we saw from the previous ently, made $20 million. Is that steal- their carrier.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4689 Three, it requires a carrier to send a The PRESIDING OFFICER. The Sen- example, often times, a consumer is written notification to the consumer ator from Arizona is recognized. slammed and does not know it until informing them of the changed service Mr. MCCAIN. Mr. President, I thank the next telephone bill arrives. Some- within 15 days of the change in service. Senator DORGAN for his kind remarks times, unscrupulous carriers provide Four, it requires carriers to provide but also for his very clear and concise service to slammed customers for a consumers with the information and depiction of the issue that we are ad- considerable time before the customer procedures necessary to file a com- dressing. I think it is important that becomes aware of the unauthorized plaint at the FCC. the record reflect the entirety of his re- switch. To prevent this, the legislation Five, it requires carriers to provide marks. requires that whenever there is a slammed customers with any evidence Mr. President, I ask unanimous con- change in the subscriber’s carrier, the that authorized that change. sent that the pending committee carrier must notify the subscriber of It allows the complaint process to amendments be agreed to and consid- the change within 15 days. A carrier impose stiff penalties, up to $150,000, ered as original text for purpose of fur- has 120 days to resolve a slamming and a range of other important issues ther amendments. complaint. If the carrier is unable to that I think will give us much more en- The PRESIDING OFFICER. Without resolve the complaint within the re- forcement against this slamming proc- objection, it is so ordered. quired timeframe, then the carrier ess and the slamming practice across The committee amendments were must notify the consumer of his or her the country. agreed to. right to file a complaint with the FCC. Once again, let me conclude by say- Mr. MCCAIN. Mr. President, I yield The FCC is required to resolve a slam- ing that this is not some minor nui- the floor. ming complaint it receives within 150 sance issue; this is an issue in which Mr. HOLLINGS. Mr. President, I rise days. some have taken advantage of con- today in support of legislation that is The bill also requires a carrier to re- sumers who are the victims. It is true necessary to stem the tide of one of the tain evidence of the consumer’s author- that the company that has been most annoying anti-consumer prac- ization to switch carriers and to inform changed is also a victim, a company tices, known as slamming. Slamming the consumer of their rights to pursue that was serving a customer and is now occurs when a preferred telecommuni- a resolution of the matter with the not serving the customer. cations service provider of the con- Federal Communications Commission But the ultimate victim here are the sumer is changed without the consent and with State authorities. Requiring consumers who only understand later of the consumer. This legislation en- carriers to store information will make after they have taken a look at a bill hances the verification and other pro- it easier to resolve slamming disputes somewhere and discover they are the cedures that carriers must use to en- that arise between the consumer and ones that have been victimized. sure that the consumer consents to the the carrier. Armed with information on This bill also, incidentally, would change in its service provider. It also how to resolve slamming disputes, we prohibit some other practices that are enhances the enforcement authority of hope that consumers will pursue their deceptive. There are a whole range of the FCC, the Department of Justice, available recourse and help us hold car- practices that have allowed people or and the State attorneys general and riers accountable for their illegal ac- persuaded people to sign a coupon in imposes greater penalties and fines to tions. exchange for having an opportunity or address the problem of slamming. In addition, the bill creates a variety a chance to get something, or get a free Slamming is not a new problem. of causes of actions and imposes still door prize, or get some sort of free gift. Many consumers have been victims of penalties on carriers. If a carrier vio- So you sign this little coupon. On the slamming, suddenly discovering that lates FCC rules, the FCC can award the bottom in tiny little script it tells you their phone service is no longer being greater of actual damages or $500 and that despite the fact that you have provided by their carrier of choice. In- has the discretion to award treble dam- never read it, you have just signed stead, it is being provided by an unau- ages. If there are no mitigating cir- away and changed your long-distance thorized carrier. We’ve all had the sales cumstances, the FCC is required to im- carrier. That is cheating. Where I come calls interrupt us at the dinner table. pose on the carrier a forfeiture of from, and I think where all of us come Regardless of what the FCC does, the $40,000 or more for the first offense and from, when you cheat and steal, some- problem persists. not less than $150,000 for each subse- body ought to be after you to get you. In a recent USA TODAY article, the quent offense. If a company fails to pay That is exactly what we want to have FCC said it received 12,000 consumer a forfeiture, the FCC can limit, deny, happen with respect to the enforce- complaints about slamming during the or revoke the company’s operating au- ment against this kind of behavior and first half of 1997. In 1996, it received thority. Where the slammer’s actions practice that is making victims of mil- more than 16,000 total slamming com- have been willful, the Department of lions of Americans all across the coun- plaints. In its Fall 1996 Common Car- Justice can bring an action to impose try. rier Scorecard, the FCC stated that fines in accordance with Title 18, This one fellow took one-half million slamming was the top consumer com- United States Code and imprison the households, changed their long-dis- plaint category handled by the En- person who submits or executes a tance carrier, got $20 million into an forcement Division’s Consumer Protec- change in willful violation of Section income stream into shell corporations tion Branch. It also stated that slam- 258. In addition, State attorneys gen- that he set up, and now he is gone. ming complaints were the fastest-grow- eral can bring actions in federal court What does this mean? It means that ing category of complaints, increasing to: impose criminal sanctions and pen- one-half million Americans were cheat- more than six-fold between 1993 and alties under Title 18 U.S. Code; recover ed. This fellow stole from not only the 1995. In its 1997 Common Carrier Score- actual damages or $500 in damages; and companies but especially the Ameri- card, the FCC indicated that nine com- recover fines of $40,000 or more for first cans who expected to have a long-dis- panies accused of slamming have en- offenses and not less than $150,000 for tance service they had contracted for tered into consent decrees and have subsequent offenses unless there are and discovered someone else changed agreed to make payments to the mitigating circumstances. Finally, this it. United States Treasury totaling bill gives the FCC authority to pursue Let me again, as I began, say thank $1,245,000. The FCC has also issued two billing agents when they place charges you to Senator COLLINS to Senator Notices of Forfeitures with combined on a consumers bill that they know the MCCAIN, and to Senator HOLLINGS and forfeiture penalties of $160,000. None- consumer has not authorized. so many other. I am a cosponsor of theless, slamming continues to be a Slamming is a troublesome problem. this, as are a good number of our col- significant problem. Slamming eliminates a consumer’s leagues in the Senate, because it is The provisions we introduce today ability to chose his or her service pro- good legislation and will do the right will hopefully stop this practice of vider. It distorts telecommunications thing for consumers in this country. slamming once and for all. The legisla- markets by enabling companies en- I yield the floor. tion places new responsibilities on car- gaged in misleading practices to in- Mr. MCCAIN addressed the Chair. riers for the benefit of consumers. For crease their customer base, revenues,

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4690 CONGRESSIONAL RECORD — SENATE May 12, 1998 and profitability through illegal chair, undertook an extensive inves- past conduct but also to prevent future means. Today hundreds of long dis- tigation of this problem. At a field violations. tance carriers compete for a con- hearing this past February in Portland, The second provision is designed to sumer’s business. If slamming is not Maine, at which I was joined by Sen- remove the financial incentive for com- addressed effectively today, it could ator DURBIN, one of the leaders in the panies to engage in slamming by giving become much more worrisome. The fight against slamming, we heard from slammed customers the option to pay changes in the telecommunications in- several consumers who were victimized their original carrier at their previous dustry will probably result in a future by this practice. Their words reflect rate. Under current law, it appears that in which local and long distance phone the public attitude toward the inten- customers are obligated to pay the services are provided by an even great- tional slammer, as they described what slammer even after they discover they er number of carriers. happened to them as ‘‘stealing,’’ have been switched without their con- It is therefore important that we ‘‘criminal,’’ and ‘‘break-in.’’ sent. That hardly acts as a deterrent, eliminate the practice of slamming. My Subcommittee recently held a something that must be changed. Consumers have the right to choose second hearing, which revealed that a The third provision will improve en- their own phone companies when they number of what are known as forcement by requiring all tele- choose. A consumer’s choice should not switchless resellers were responsible communications carriers to report slamming violations on a quarterly be curtailed by the illegal actions of for a large percentage of the inten- basis to the FCC. To avoid putting a bad industry actors and a consumer tional slamming incidents. These oper- burden on the carriers, the report need should not have to spend a significant ations use deceptive marketing prac- only be summary in nature, but it will amount of time addressing issues of tices and outright fraud to switch con- enable the FCC to identify and move sumers’ long distance service without slamming. I expect that requirements against the frequent slammer. placed by this bill will help to elimi- their consent. Deregulation of the telephone indus- nate slamming. My actions with re- One recent victim was a hospital in try may produce many benefits for con- spect to slamming reflect my contin- western Maine. This demonstrates that sumers but it also has given rise to ued efforts to protect consumers as I no one is immune from this despicable fraud where it did not previously exist. have in the past supported legislation practice. It was Congress who decided to deregu- which successfully addressed the prob- Mr. President, our hearings presented late the industry, and it is Congress lem of junk fax and ensure that compa- a case that dramatically shows the that must act to stop this fraud. Sen- nies engage in proper telemarketing need for tougher sanctions to deal with ate bill 1618 will move us in that direc- practices. this problem. I refer to an individual tion by putting a big dent in telephone I welcome my colleagues in joining by the name of Daniel Fletcher, who slamming and by protecting the right Senator MCCAIN and I as we address the fraudulently operated as a long dis- of the American people to choose with problem of slamming and ensure that tance reseller under at least eight dif- whom they wish to do business. no one is allowed to curtail a con- ferent company names, slamming thou- Again, I very much appreciate the co- sumer’s choice of phone service pro- sands of consumers, and billing them operation of the distinguished chair- vider. for at least $20 million in long distance man of the Commerce Committee and Ms. COLLINS addressed the Chair. charges. While we were struck by the his willingness to accept the Collins- The PRESIDING OFFICER. Who ease with which Mr. Fletcher carried Durbin amendments. yields time? out his activities and evaded detection, I thank the Senator, and I yield the Mr. MCCAIN. I yield such time to the we were shocked to learn about the ab- floor. Senator from Maine as she may con- sence of adequate criminal sanctions to Mr. MCCAIN. Mr. President, I thank sume. deal with his activities. Senator COLLINS again. We look for- The PRESIDING OFFICER. The Sen- Mr. Fletcher bilked America’s tele- ward to working with her on other ator from Maine is recognized. phone customers out of millions of dol- issues that are as noncontroversial as Ms. COLLINS. Mr. President, I want lars by charging them for services they these, as opposed to campaign finance to start by complimenting the chair- did not authorize and obtaining from reform which generated much more man of the Commerce Committee for them money to which he was not enti- concern. But I seriously want to note his outstanding leadership in dealing tled. Yet, we lack a statute that ex- the hard work that Senator COLLINS with a very important consumer issue, pressly makes intentional slamming a devoted in her subcommittee to this and that is telephone slamming. crime, and unless that is corrected, we issue. It was very important. I thank I also want to commend the Senator can expect many more Fletchers. Mr. the Senator. from North Dakota for his very elo- President, the time has come for the AMENDMENT NO. 2389 quent explanation of the problem and United States Congress to disconnect (Purpose: To provide a substitute that incor- the solutions. the telephone slammers. porates the Committee amendments and Mr. President, I rise to express my Given our concern about this prob- additional changes in the bill as reported by the committee) strong support for S. 1618, legislation lem, Senator DURBIN and I introduced that will provide America’s consumers slamming legislation, and I want to Mr. MCCAIN. Mr. President, I ask for the incorporation at this time of the with much needed protection against a thank Senators MCCAIN and HOLLINGS fraudulent practice known as slam- for agreeing to incorporate its three managers’ amendment to S. 1618. I ask ming—the unauthorized switching of a main provisions into a Manager’s unanimous consent that it be adopted. The PRESIDING OFFICER. The customer’s telephone service provider. Amendment to their bill. These addi- clerk will report. I want to commend Senator MCCAIN tions will help make a good bill even The assistant legislative clerk read and HOLLINGS for taking steps to at- better. as follows: tack this rapidly growing problem. The first of these provisions will get The Senator from Arizona [Mr. MCCAIN], Telephone slamming is spreading tough with the outright scam artists for himself and Mr. HOLLINGS, proposes an like wildfire. In Maine, complaints in- by establishing new criminal penalties amendment numbered 2389. creased by 100 percent from 1996 to 1997. for intentional slamming. I should em- Mr. MCCAIN. Mr. President, I ask Nationwide, slamming is the number phasize that these penalties will apply unanimous consent that reading of the one telephone-related complaint. While only to those who know that they are amendment be dispensed with. the FCC received more than 20,000 acting without the customer’s author- The PRESIDING OFFICER. Without slamming complaints in 1997, a signifi- ization and not to those who make an objection, it is so ordered. cant increase over the previous year, honest mistake or even act carelessly. (The amendment (No. 2389) is printed estimates from phone companies indi- It’s time we sent the deliberate in today’s RECORD under ‘‘Amendments cate that as many as one million peo- slammer to the slammer. In addition, Submitted.’’) ple were slammed during that 12-month anyone convicted of intentional slam- Mr. MCCAIN. Mr President, this period. ming will be disqualified from being a amendment defines ‘‘subscriber’’ in a Last fall, the Permanent Sub- telecommunications service provider, way that allows the person named on committee on Investigations, which I thereby enabling us not only to punish the billing statement or account, or

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4691 those authorized by such a person, to communications carriers that render The PRESIDING OFFICER. Without consent to carrier changes. bills to consumers and those that oper- objection, it is so ordered. It clarifies that the time period the ate as billing clearinghouses for car- The amendment is as follows: FCC prescribes for a carrier to resolve riers. It requires any billing agent that At the appropriate place, insert the fol- a slamming complaint, which is not to issues telephone bills to follow a cer- lowing: exceed 120 days, applies when a carrier tain format for the bill. The bill must SEC. ll. ENFORCEMENT OF REGULATIONS RE- receives notice directly from the sub- list telecommunications services sepa- GARDING CITIZENS BAND RADIO scriber of the complaint. EQUIPMENT. rately from other services and must Section 302 of the Communications Act of It makes clear that if a carrier does identify the names of each provider and not resolve a complaint within the pe- 1934 (47 U.S.C. 302) is amended by adding at the services they have provided. Billing the end the following: riod prescribed by the Commission, it agents also must provide information ‘‘(f)(1) Except as provided in paragraph (2), must notify the subscriber in writing to enable a consumer to contact a serv- a State or local government may enforce the of the subscriber’s rights and remedies ice provider about a billing dispute. following regulations of the Commission only under Section 258 of the Commu- This provision also prohibits billing under this section: nications Act, not under any other law. agents from submitting charges for a ‘‘(A) A regulation that prohibits a use of citizens band radio equipment not authorized It clarifies that the FCC may dispose consumer’s bill if they know or should of a slamming complaint within the by the Commission. know that the consumer did not au- ‘‘(B) A regulation that prohibits the unau- 150-day period established in the bill by thorize such charges or if the charges issuing a ‘‘decision or ruling.’’ The FCC thorized operation of citizens band radio are otherwise improper. equipment on a frequency between 24 MHz will not be required to issue a formal It given the Commission jurisdiction and 35 MHz. ‘‘order’’ each time it resolves a com- over billing agents that are not tele- ‘‘(2) Possession of a station license issued plaint. It also clarifies that the 150-day communications carriers but provide by the Commission pursuant to section 301 in period in the bill is intended to be used any radio service for the operation at issue billing services for such carriers or for by the FCC to determine if slamming shall preclude action by a State or local gov- other companies whose charges appear has occurred, and if slamming has oc- ernment under this subsection. on telephone bills. curred, the FCC has another 90 days, if ‘‘(3) The Commission shall provide tech- It instructs the FCC to include in the such additional time is necessary, to nical guidance to State and local govern- report required by Section 6 of the bill ments regarding the detection and deter- determine what damages and penalties an examination of telemarketing and mination of violations of the regulations should be assessed. specified in paragraph (1). In discussing the amount of damages other solicitation practices, such as contests and sweepstakes, used by car- ‘‘(4)(A) In addition to any other remedy au- that may be awarded by the FCC, the thorized by law, a person affected by the de- original bill referred to the FCC as ‘‘re- riers to obtain carrier changes. The cision of a State or local government enforc- solving a complaint.’’ This change re- FCC also is required to study whether ing a regulation under paragraph (1) may moves that language and the implica- a third party should verify carrier submit to the Commission an appeal of the tion that ‘‘resolving a complaint’’ re- changes and whether an independent decision on the grounds that the State or quires a finding of a violation of the third party should administer carrier local government, as the case may be, acted changes. This provision will address outside the authority provided in this sub- slamming rules. It states that the FCC section. may award damages only if slamming concerns about the possibility of anti- competitive behavior by the local ‘‘(B) A person shall submit an appeal on a has occurred. decision of a State or local government to It allows state Attorneys General to phone companies once they start to the Commission under this paragraph, if at bring an action for each alleged slam- provide long-distance service. Enforce- all, not later than 30 days after the date on ming violation to enjoin unauthorized ment of slamming rules will remain which the decision by the State or local gov- changes and to recover damages, to the responsibility of the FCC. ernment becomes final. bring an action to seek criminal sanc- Mr. MCCAIN. Mr. President, I send, ‘‘(C) The Commission shall make a deter- tions for willful violations, and to on behalf of Senator FEINGOLD, an mination on an appeal submitted under sub- amendment to the desk and ask for its paragraph (B) not later than 180 days after bring an action to seek a penalty of not its submittal. less than $40,000 for the first slamming immediate consideration. ‘‘(D) If the Commission determines under offense and not less than $150,000 for The PRESIDING OFFICER. Is the subparagraph (C) that a State or local gov- each subsequent offense. A court may amendment to the substitute amend- ernment has acted outside its authority in reduce the amount of these penalties if ment? enforcing a regulation, the Commission shall it determines that there are mitigating Mr. MCCAIN. Mr. President, before reverse the decision enforcing the regula- circumstances involved. The district asking for the reading of the amend- tion. courts shall have exclusive jurisdiction ment, I ask unanimous consent that ‘‘(5) The enforcement of a regulation by a State or local government under paragraph over all of these actions. the managers’ amendment be consid- ered as original text. (1) in a particular case shall not preclude the It clarifies that states are not pre- Commission from enforcing the regulation in empted from imposing more restrictive The PRESIDING OFFICER. Without that case concurrently. requirements, regulations, damages, objection, it is so ordered. The amend- ‘‘(6) Nothing in this subsection shall be and penalties on unauthorized changes ment is agreed to. construed to diminish or otherwise affect the in a subscriber’s telephone exchange The amendment (No. 2389) was agreed jurisdiction of the Commission under this service or telephone toll service pro- to. section over devices capable of interfering vider than are imposed under Section AMENDMENT NO. 2390 with radio communications.’’. 258 of the Communication Act, as (Purpose: To authorize the enforcement by Mr. MCCAIN. Mr. President, I have amended by this bill. State and local governments of certain reviewed the amendment with Senator It clarifies that when the FCC is re- Federal Communications Commission reg- DORGAN, and it is acceptable on both solving slamming complaints, it is not ulations regarding use of citizens band sides. I encourage its adoption. instituting a ‘‘civil action.’’ In addi- radio equipment) The PRESIDING OFFICER. Without tion, while a particular slamming com- Mr. MCCAIN. I ask now for consider- objection, the amendment is agreed to. pliant involving a particular carrier is ation of the amendment by Senator The amendment (No. 2390) was agreed pending before the FCC, no state may FEINGOLD. to. institute a civil action against the The PRESIDING OFFICER. The Mr. MCCAIN. Mr. President, I move same carrier for the same alleged vio- clerk will report. to reconsider the vote. lation. The assistant legislative clerk read Mr. DORGAN. I move to lay that mo- It allows the FCC to use the fact of a as follows: tion on the table. carrier’s nonpayment of a forfeiture for The Senator from Arizona [Mr. MCCAIN], The motion to lay on the table was a slamming or billing violation as a for Mr. FEINGOLD, proposes an amendment agreed to. basis for revoking, denying or limiting numbered 2390. Mr. FEINGOLD. Mr. President, as we that carrier’s operating authority. Mr. McCAIN. Mr. President, I ask take up this important anti-slamming It imposes duties on all billing unanimous consent that reading of the bill, which of course deals with con- agents, both those that are tele- amendment be dispensed with. sumer problems with telephone service,

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00053 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4692 CONGRESSIONAL RECORD — SENATE May 12, 1998 I am pleased that the Senate has sistance from the FCC, frequently con- begun working on this issue, my staff agreed to this amendment to provide a tact their city or town government and has also been contacted by a number of practical solution to the all too com- ask them to police the interference. other congressional offices who are mon problem of interference with resi- However, the Communications Act of also looking for a solution to the prob- dential home electronic equipment 1934 provides exclusive authority to the lem of radio frequency interference in caused by unlawful use of citizens band Federal Government for the regulation their States or districts caused by un- [CB] radios. I want to thank the Chair- of radio, preempting municipal ordi- lawful CB use. The city of Grand Rap- man of the Committee, Senator nances or State laws to regulate radio ids, MI, in particular, has contacted me MCCAIN, and the ranking member, Sen- frequency interference caused by un- about this legislation because they face ator HOLLINGS, for agreeing to include lawful use of CB radio equipment. This a persistent interference problem very this amendment in the slamming bill. has created an interesting dilemma for similar to that in Beloit. In all, FCC The problem of CB radio interference municipal governments. They can nei- receives more than 30,000 radio fre- can be extremely distressing for resi- ther pass their own ordinances to con- quency interference complaints annu- dents who cannot have a telephone trol CB radio interference, nor can ally—most of which are caused by CB conversation, watch television, or lis- they rely on the agency with exclusive radios. Unfortunately, FCC no longer ten to the radio without being inter- jurisdiction over interference to en- has the staff, resources, or the field ca- rupted by a neighbor’s illegal use of a force the very Federal law which pre- pability to investigate these com- CB radio. Unfortunately, under the empts them. plaints and localities are blocked from current law, those residents have little Let me give an example of the kind exercising any jurisdiction to provide recourse. The amendment I offered of frustrations people have experienced relief to their residents. today will provide those residents with in attempting to deal with these prob- My amendment attempts to resolve a practical solution to this problem. lems. Shannon Ladwig, a resident of this Catch-22, by allowing States and Up until recently, the FCC has en- Beloit, WI has been fighting to end CB localities to enforce existing FCC regu- forced its rules outlining what equip- interference with her home electronic lations regarding authorized CB equip- ment may or may not be used for CB equipment that has been plaguing her ment and frequencies while maintain- radio transmissions, how long trans- family for over a year. Shannon ing exclusive Federal jurisdiction over missions may be broadcast, what chan- worked within the existing system, the regulation of radio services. It is a nels may be used, as well as many asking for an FCC investigation, in- commonsense solution to a very frus- other technical requirements. FCC also stalling filtering equipment on her trating and real problem which cannot investigated complaints that a CB telephone, attempting to work with be addressed under existing law. Resi- radio enthusiast’s transmissions inter- the neighbor causing the interference, dents should not be held hostage to a fered with a neighbor’s use of home and so on. Nothing has been effective. Federal law which purports to protect electronic and telephone equipment. Here are some of the annoyances them but which cannot be enforced. FCC receives thousands of such com- Shannon has experienced. Her answer- Now this amendment is by no means plaints annually. ing machine picks up calls for which a panacea for the problem of radio fre- For the past 3 years, I have worked there is no audible ring, and at times quency interference. It is intended only with constituents who have been both- records ghost messages. Often, she can- to help localities solve the most egre- gious and persistent problems of inter- ered by persistent interference of near- not get a dial tone when she or her ference—those caused by unauthorized by CB radio transmissions in some family members wish to place an out- use of CB radio equipment and fre- cases caused by unlawful use of radio going call. During telephone conversa- equipment. In each case, the constitu- quencies. In cases where interference is tions, the content of the nearby CB ents have sought my help in securing caused by the legal and licensed oper- transmission can frequently be heard an FCC investigation of the complaint. ation of any radio service, residents and on occasion, her phone conversa- And in each case, the FCC indicated will need to resolve the interference tions are inexplicably cut off. Ms. that due to a lack of resources, the using FCC self-help measures that I Ladwig’s TV transmits audio from the Commission no longer investigates mentioned earlier. CB transmission rather than the tele- radio frequency interference com- In many cases, interference can re- vision program her family is watching. plaints. Instead of investigation and sult from inadequate home electronic Shannon never knows if the TV pro- enforcement, the FCC is able to pro- equipment immunity from radio fre- gram she taped with her VCR will actu- vide only self-help information which quency interference. Those problems the consumer may use to limit the in- ally record the intended program or can only be resolved by installing fil- terference on their own. whether it will contain profanity from tering equipment and by improving the I suppose this situation is under- a nearby CB radio conversation. manufacturing standards of home tele- standable given the rising number of Shannon did everything she could to communications equipment. complaints for things like slamming. solve the problem and a year later she The electronic equipment manufac- The resources of the FCC are limited, still feels like a prisoner in her home, turing industry, represented by the and there is only so much they can do unable to escape the broadcasting Telecommunications Industry Associa- to address complaints of radio inter- whims of a CB operator using illegal tion and the Electronics Industry Asso- ference. equipment with impunity. Shannon ciation, working with the Federal Com- Nonetheless, this problem is ex- even went to her city council to de- munications Commission, has adopted tremely annoying and frustrating to mand action. The Beloit City Council voluntary standards to improve the im- those who experience it. In many cases, responded by passing an ordinance al- munity of telephones from inter- residents implement the self-help lowing local law enforcement to en- ference. Those standards were adopted measures recommended by FCC such as force FCC regulations—an ordinance by the American National Standards installing filtering devices to prevent the council knows is preempted by Fed- Institute last year. Manufacturers of the unwanted interference, working eral law. Last year, the Beloit City electronic equipment should be encour- with their telephone company, or at- Council passed a resolution supporting aged to adopt these new ANSI stand- tempting to work with the neighbor legislation I introduced, S. 608, on ards. Consumers have a right to expect they believe is causing the inter- which my amendment is modeled, that the telephones they purchase will ference. In many cases these self-help which will allow at least part of that operate as expected without excessive measures are effective. ordinance to stand. levels of interference from legal radio However, in some cases filters and The problems experienced by Beloit transmissions. Of course, Mr. Presi- other technical solutions fail to solve residents are by no means isolated inci- dent, these standards assume legal op- the problem because the interference is dents. I have received very similar eration of radio equipment and cannot caused by unlawful use of CB radio complaints from at least 10 other Wis- protect residents from interference equipment such as unauthorized linear consin communities in the last several from illegal operation of CB equip- amplifiers. years in which whole neighborhoods ment. Municipal residents, after being de- are experiencing persistent radio fre- This amendment also does not ad- nied investigative or enforcement as- quency interference. Since I have dress interference caused by other

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00054 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4693 radio services, such as commercial sta- cations manufacturing industry, and choice. And the problem with slam- tions or amateur stations. Mr. Presi- radio service operators. This amend- ming is it denies consumers real dent, last year, I introduced S. 2025, a ment merely provides localities with choice. In effect, it tricks them into bill with intent similar to that of the the tools they need to protect their making choices that are not beneficial amendment I am offering today. The residents while preserving FCC’s exclu- to them or collectively to our society American Radio Relay League [ARRL], sive regulatory jurisdiction over the and our economy. We have to do some- an organization representing amateur regulation of radio services. thing about it. radio operators, frequently referred to I am very pleased that this amend- I am very pleased that this legisla- as ‘‘ham’’ operators, raised a number of ment has been accepted, and I hope it tion takes very pragmatic and effective concerns about that legislation. ARRL will become law along with the anti- steps to stop this curse of slamming, was concerned that while the bill was slamming bill. the illegal switching of telephone serv- intended to cover only illegal use of CB Mr. MCCAIN. Mr. President, we have, ices. And this is an enormous problem equipment, FCC-licensed amateur according to my understanding, an throughout our economy. It threatens radio operators might inadvertently be amendment by Senator FEINSTEIN, that to rob many, many consumers of the targeted and prosecuted by local law Senator DORGAN has not had a chance benefits of deregulation and of a free enforcement. ARRL also expressed con- to look at but I will ask that he review, market for services like telephone cern that local law enforcement might which is acceptable. And I understand service. The Federal Communications not have the technical abilities to dis- we have an amendment by Senator Commission indicates that slamming is tinguish between ham stations and CB ROCKEFELLER. I do not believe that their No. 1 reported fraud. In my home stations and might not be able to de- there are any other amendments that State of Rhode Island, it is the top con- termine what CB equipment was FCC- we need to consider because we have sumer issue in terms of telephone serv- authorized and what equipment is ille- dispensed with, according to the unani- ice and other consumer issues. gal. mous consent agreement, the Collins- Yet all of these very impressive sta- I have worked with the ARRL and Durbin amendment. We have dispensed tistics may be just the tip of the ice- amateur operators from Wisconsin to with the Reed amendment, the Levin berg, because press reports indicate address these concerns. As a result of amendments, Feingold amendment, that many, many more people are vic- those discussions, this amendment in- and McCain amendment, a Hollings tims of slamming, but they do not have corporates a number of provisions sug- amendment, a Harkin amendment, either the knowledge or the inclination gested by the league. First, the amend- which leaves us with the Rockefeller under present rules and regulations to report these cases of slamming. Indeed, ment makes clear that the limited en- amendment after we dispense with the one regional telephone carrier esti- forcement authority provided to local- Feinstein amendment. mated that 1 in 20 changes of telephone ities in no way diminishes or affects So I yield the floor. FCC’s exclusive jurisdiction over the Mr. DORGAN. Mr. President, I yield service is a result of fraud. Slamming is a multimillion-dollar fraud problem, regulation of radio. Second, the amend- 10 minutes to the Senator from Rhode and today, under the leadership of Sen- ment clarifies that possession of an Island, Mr. REED. FCC license to operate a radio service The PRESIDING OFFICER. The Sen- ator MCCAIN and Senator HOLLINGS, we are addressing this problem head on. for the operation at issue, such as an ator from Rhode Island is recognized. One of the aspects of the issue is that amateur station, is a complete protec- Mr. REED. I thank the Chair. there are numerous consumers who are tion against any local law enforcement I rise in strong support of S. 1618, the unaware of the fact that they are vic- action authorized by this amendment. Consumer Anti-Slamming Act of 1998, tims. Forty-one percent of these indi- Amateur radio enthusiasts are not only and I particularly commend Chairman viduals, of those who have been af- individually licensed by FCC, unlike MCCAIN and ranking member HOLLINGS fected by slamming, do not report the for the bipartisan and professional CB operators, but they also self-regu- incidents to regulatory authorities or manner in which they have considered late. The ARRL is very involved in re- anyone. When a complaint is logged, it this legislation. I am pleased to have solving interference concerns both is usually logged with a local telephone been part of this process, and I thank among their own members and between carrier; in my case, in upper Rhode Is- ham operators and residents experi- them very much for considering my land, it is Bell Atlantic. Now, these encing problems. suggestions to improve this legislation. local carriers do try to resolve the Third, the amendment also provides Last July 24, again with the assist- problem, but often they do not have for an FCC appeal process by any radio ance of Senators MCCAIN and HOLLINGS, the tools or the ability to do so, and as operator who is adversely affected by a I offered a sense-of-the-Senate resolu- a result, the consumer is left a victim local law enforcement action under tion which outlined the issue involving of the slammer. this amendment. FCC will make deter- slamming and proposed several sug- When consumers do report these minations as to whether the locality gested solutions. That resolution problems and try to take action, under acted properly within the limited juris- passed unanimously. Today, I support the present regime it is usually a long diction this legislation provides. The S. 1681 because it goes forward from and frustrating process to get any re- FCC will have the power to reverse the that resolution to incorporate very lief, if you get any relief at all. action of the locality if local law en- pragmatic resolutions to the problem Now, State attorneys general and forcement acted improperly. And of slamming that is confronting so public utility commissions throughout fourth, my legislation requires FCC to many consumers across this country. this country are annually receiving provide States and localities with tech- I would also like to thank the Na- hundreds of thousands of complaints. nical guidance on how to determine tional Association of Attorneys Gen- More than half the State attorneys whether a CB operator is acting within eral as well as the National Associa- general have tried to take steps to go the law. tion of Regulatory Utilities Commis- to court to bring to justice these Again, Mr. President, my amendment sioners for their assistance. These or- slammers using the fraud laws of their is narrowly targeted to resolve per- ganizations and their members are State. Unfortunately, these legal ac- sistent interference with home elec- fighting this epidemic of slamming at tions are cumbersome, lengthy, and tronic equipment caused by illegal CB the State level. They are doing a re- often do not really reach the heart of operation. Under my amendment, lo- markable job, and they were very help- the matter and bring the culprits to calities cannot establish their own reg- ful to me in preparing my legislation justice. ulations on CB use. They may only en- and helping me understand the scope of A smaller percentage of victims of force existing FCC regulations on au- this problem. slamming will seek relief not at the thorized CB equipment and frequencies. We have taken great strides in our State level but they will go to the Fed- This amendment will not resolve all in- economy by deregulating many of our eral Communications Commission. terference problems and it is not in- formerly regulated utilities, particu- Last year, 44,000 individuals brought tended to do so. Some interference larly the telephone companies, but all slamming complaints to the FCC. That problems need to continue to be ad- of that deregulation is for naught if we is a 175 percent increase over com- dressed by the FCC, the telecommuni- cannot give consumers real valid plaints in 1996. You can see this is an

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00055 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4694 CONGRESSIONAL RECORD — SENATE May 12, 1998 epidemic that needs to be dealt with Also, this legislation provides for AMENDMENT NO. 2391 decisively, and I am pleased that we avenues of redress for consumers. (Purpose: To modify the exception to the are doing that. First, the consumer can take the issue prohibition on the interception of wire, Now, the FCC does investigate these up with the unauthorized carrier, and oral or electronic communications to re- complaints, but they are hampered by they are required to respond appro- quire that all parties to communications with health insurance providers consent to a lack of proof concerning slamming. priately, within at least 4 months, in their interception) They are hampered by not having the terms of justifying the switch or mak- Mr. DORGAN. Mr. President, on be- kind of record that is necessary to ing some type of amends to the con- half of Senator FEINSTEIN, I send an prove definitively that an individual sumer. Second, a slamming victim can amendment to the desk and ask for its has been a victim of slamming. This take their case to the Federal Commu- immediate consideration. legislation goes a long way to ensure nications Commission. Now, the FCC The PRESIDING OFFICER. The that all of our regulatory authorities has additional authority to fine and to clerk will report. at every level of Government have the penalize slamming. Finally, a con- The assistant legislative clerk read tools to ensure that they can root out sumer who is frustrated can, once as follows: slamming in our economy. again, take his petition under State The Senator from North Dakota [Mr. DOR- First, this legislation places a more law to State commissions. Indeed, one GAN], for Mrs. FEINSTEIN proposes an amend- stringent requirement on phone compa- aspect of the legislation that is very ment numbered 2391. nies before they can switch a con- positive is, there is no preemption of Mr. MCCAIN. Mr. President, I ask sumer’s service. The bill requires State laws. We recognize that attor- unanimous consent that reading of the verification that the consumer, first, neys general and utility commissioners amendment be dispensed with. understands service will be changed; can and must have the ability to work The PRESIDING OFFICER. Without second, the consumer affirms his or her hand and hand with the Federal Gov- objection, it is so ordered. intent to change service and also indi- ernment to root out this problem of The amendment is as follows: cates that he or she is authorized to slamming. At the appropriate place, insert the fol- lowing: switch service. Altogether, this is very important We have heard lots of evidence of SEC. ll. MODIFICATION OF EXCEPTION TO PRO- legislation that provides the necessary HIBITION ON INTERCEPTION OF phone companies—slammers, really— consumer protections, that makes the COMMUNICATIONS. calling up, finding a 12- or 13-year-old goal and objective of deregulation in a (a) MODIFICATION.—Section 2511(2)(d) of child in the house, and talking to that market where consumers choose a re- title 18, United States Code, is amended by child and using that as what they adding at the end the following: ‘‘Notwith- ality, and puts up strong barriers standing the previous sentence, it shall not claim is appropriate authorization to against those who would trick con- switch service. Under this legislation, be unlawful under this chapter for a person sumers and rob them of the choice that not acting under the color of law to inter- those types of practices will not be al- deregulation offers, the choice of the cept a wire, oral, or electronic communica- lowed. Also, the legislation requires best service for them, their free choice. tion between a health insurance issuer or that the entire verification process Once again, let me commend Chair- health plan and a subscriber of such issuer or must be recorded and also provided to plan, or between a health care provider and man MCCAIN and ranking member HOL- the consumer upon request, so that if a patient, only if all of the parties to the LINGS for their work on this. I am hope- it is a 12-year-old in the house that is communication have given prior express con- ful that we can move expeditiously to giving the OK to switch, the parent can sent to such interception. For purposes of passage and that this bill will shortly the preceding sentence, the term ‘health in- quickly determine that from the re- be law and we can protect the Amer- surance issuer’ has the meaning given that corded record and make a correction. ican consumer against slamming. term in section 733 of the Employee Retire- Now, the other protection that is pro- ment Income Security Act of 1974 (29 U.S.C. vided here is that the bill requires that I yield my time. 1191b), the term ‘health plan’ means a group carriers inform a consumer in clear and Mr. MCCAIN addressed the Chair. health plan, as defined in such section of unambiguous language within 15 days The PRESIDING OFFICER. The Sen- such Act, an individual or self-insured health that a switch has been authorized. ator from Arizona. plan, the medicare program under title XVIII of the Social Security Act (42 U.S.C. 1395 et Many times, consumers do not realize Mr. MCCAIN. I yield myself 1 minute. seq.), the medicaid program under title XIX their phone service has been switched Senator HOLLINGS and I incorporated of such Act (42 U.S.C. 1396 et seq.), the State until they get, 30 days later, a bill from an amendment in the managers’ children’s health insurance program under a company that they have never heard amendment on behalf of Senator title XXI of such Act (42 U.S.C. 1397aa et of claiming that they are now their pri- seq.), and the Civilian Health and Medical SNOWE. Program of the Uniformed Services under mary telephone carrier. This amendment prevents the FCC Now, this whole verification process chapter 55 of title 10, and the term ‘health from taking any actions that would care provider’ means a physician or other will go a very long way in preventing jeopardize the current ability of con- health care professional.’’. the abuses that we have seen. No sumers to ‘‘freeze’’ their long-distance (b) RECORDING AND MONITORING OF COMMU- longer can slammers use ambiguous or carrier in place. Once the consumer NICATIONS WITH HEALTH INSURERS.— fraudulent verification scripts, essen- (1) COMMUNICATION WITHOUT RECORDING OR elects to use a freeze, the long-distance MONITORING.—Notwithstanding any other tially tricking consumers into agree- carrier of choice can only be changed ing. Additionally, slammers can’t go provision of law, a health insurance issuer, by the express authorization of the health plan, or health care provider that no- ahead and conjure up and splice to- consumer to the local phone company. tifies any customer of its intent to record or gether different bits of pieces of an au- monitor any communication with such cus- thorization or conversation to say, Long-distance carriers are concerned about how this amendment might af- tomer shall provide the customer the option ‘‘That is the proof you agreed to switch to conduct the communication without being your service.’’ Because of the require- fect their marketing efforts. But re- recorded or monitored by the health insur- ment for a recorded record, that will ports now show that two consumers are ance issuer, health plan, or health care pro- not be possible. slammed every minute. Given the se- vider. This bill clearly says and makes as a verity of the slamming problem, the in- (2) DEFINITIONS.—In this subsection: terest we have in preserving safeguards (A) HEALTH CARE PROVIDER.—The term clear standard that without proper ‘‘health care provider’’ means a physician or verification, without a record, the car- that will project consumers against any unauthorized carrier changes cer- other health care professional. rier is in violation of law if they switch (B) HEALTH INSURANCE ISSUER.—The term services and there cannot be any more tainly overrides any concerns the in- ‘‘health insurance issuer’’ has the meaning assertions by these carriers that, dustry may have about their mar- given that term in section 733 of the Em- ‘‘Well, someone told us it was OK in keting efforts. ployee Retirement Income Security Act of the house, but we don’t have the I thank Senator SNOWE for her 1974 (29 U.S.C. 1191b). amendment. (C) HEALTH PLAN.—The term ‘‘health plan’’ record. Someone authorized it, but we means— don’t know who it was.’’ They are now I reserve the remainder of my time. (i) a group health plan, as defined in sec- in a position where they have to show The PRESIDING OFFICER. The Sen- tion 733 of the Employee Retirement Income clearly that they have the verification. ator from North Dakota. Security Act of 1974 (29 U.S.C. 1191b);

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4695 (ii) an individual or self-insured health When my office contacted the top 100 patient. It’s easy to see, I think, how plan; health insurance providers in this the industry’s practice leaves the pa- (iii) the medicare program under title country, we learned that most health tient disadvantaged. XVIII of the Social Security Act (42 U.S.C. insurance companies who responded My amendment is simple. First, it re- 1395 et seq.); (iv) the medicaid program under title XIX tape or monitor calls from patients. quires express consent from patients in of such Act (42 U.S.C. 1396 et seq.); I want to share briefly some of the order to be taped or monitored by (v) the State children’s health insurance responses we received. Kaiser health insurance companies or health program under title XXI of such Act (42 Permanente is a health insurance pro- care providers. U.S.C. 1397aa et seq.); and vider that operates in 19 states and the Second, it requires health insurance (vi) the Civilian Health and Medical Pro- District of Columbia, and provides care companies or health care providers to gram of the Uniformed Services under chap- to more than 9 million members. Its give patients the option not to be taped ter 55 of title 10, United States Code. practices vary from state to state, de- or monitored. Mrs. FEINSTEIN. Mr. President, I pending on applicable state laws. Third, it applies only to health insur- offer a very simple amendment to S. Among other things, Kaiser ance companies or health care pro- 1618 that will protect the critical area Permanente may: Monitor randomly viders. It does not affect the remaining of consumer health care privacy. This selected calls, in which case it may or companies that tape or monitor cus- amendment provides that in commu- may not notify patients in advance; or tomer communications. nications with health care insurers or tape record all or randomly selected Mr. President, this amendment sim- providers, patients have the right not calls, in which case it may or may not ply ensures a basic right that most pa- to have their confidential conversa- notify patients in advance. tients believe they already enjoy. I tions recorded or monitored. United HealthCare wrote that they urge its adoption. This amendment fills a loophole in did not believe that recording or moni- Mr. DORGAN. Mr. President, my un- existing law. Federal law currently toring calls presented a privacy issue. derstanding is the amendment has been provides that at least one party must Their rationale was that they only ran- cleared on both sides. I urge the consent to the taping or monitoring of domly record calls and only after ad- amendment be agreed to. a private conversation. The federal law vising the caller that the call may be THE PRESIDING OFFICER. If there allows states to provide even more recorded. be no further debate, the question is on stringent restrictions, and require that Great-West responded that a patient agreeing to the amendment. all parties to a conversation must con- has the option of communicating in The amendment (No. 2391) was agreed sent to their taping or monitoring. writing if the patient does not want to to. However, this law provides no protec- be recorded. Well, let me say simply— Mr. McCAIN. Mr. President, I move tion to patients against unauthorized that’s not good enough for me. to reconsider the vote. taping or monitoring. Even when, as in Despite the two-party consent rule in Mr. DORGAN. I move to lay that mo- my State of California, the state law my own State of California, NYL Care tion on the table. requires all parties to consent for tap- Health Plans, Inc., responded that no The motion to lay on the table was ing or monitoring, the law fails to pro- violation of California law occurs in agreed to. tect them. Patients are construed to the absence of a ‘‘confidential commu- Mr. DORGAN. I yield 5 minutes to consent to taping or monitoring, nication.’’ Under California law, the the Senator from Illinois, Senator DUR- whether they expressly consent or not, definition of a ‘‘confidential commu- BIN. if they are informed of the taping or nication’’ does not include communica- Mr. DURBIN. I thank the Senator monitoring. This is most often accom- from North Dakota. I thank my col- plished by a recording at the beginning tions where the parties may reasonably expect that the call may be recorded. league, the Senator from Arizona, for of the telephone call. If patients refuse cosponsoring this bill with Senator to have their calls monitored, they are NYL Care asserted that, since patients HOLLINGS. told to simply take their business else- were told that their call could be mon- itored, their calls were not confidential A little over a year ago, I received a where. But there is nowhere else to go. letter in my Senatorial office in Illi- The confidentiality of details about calls. nois from a young woman who owned a our health is one of the most sensitive In my view, NYL Care’s interpreta- business right outside the City of Chi- topics imaginable. Physician-patient tion of ‘‘confidentiality’’ turns its com- cago. She told a story of having her confidentiality is a bedrock principle monly understood meaning on its head. long-distance carrier changed without that goes back literally thousands of In fact, I doubt whether any of my col- years. leagues would agree that communica- her permission, how it ended up costing Not only is this an ethical issue, it is tions about one’s own health problems her over $1,000, and she came to learn a health imperative. In fact, it can be are not confidential. there was virtually nothing she could a matter of life and death. Anything Finger Lakes Blue Cross-Blue Shield do about it. The recourse under the law less than full confidentiality com- of Upstate New York randomly tapes currently available was not practical— promises the willingness of patients to records calls from patients and is in that she would somehow hire an attor- provide the full information that treat- the process of implementing a front- ney and go to Federal court over $1,000. ing physicians need to treat them prop- end message to patients. That wasn’t going to happen. She erly. It can literally jeopardize their In the case of Blue Cross Blue Shield asked me what could we do about it, so health and their life. of the National Capital Area, a patient I prepared a piece of legislation, and a We naturally assume that intimate receives no notice that the call may be large part of it has been incorporated details that we share with our doctor monitored. Their Associate General in this good bill, and I am happy to and health care professionals are Counsel stated that in both Maryland support this bill. strictly confidential. But they are not. and the District of Columbia, no con- Since then, I have come to learn that Today, any communication we have sent was required. hers was not an isolated example. Any with a health care professional may be Not only is unauthorized taping or group of people you talk to, regardless taped and monitored. monitoring of telephone calls just of their walk of life, who have a tele- This problem is exacerbated by the plain wrong, it is simply unnecessary. phone at home, will generally tell you rising role of health insurance compa- None of the health insurers who re- that they know somebody or they per- nies in treatment. Oftentimes, it is a sponded to my office could provide a sonally have been victims of slamming. health insurance company, rather than valid reason for monitoring or taping How do they end up having their long- a trusted doctor, with whom the pa- incoming calls from patients. distance carrier changed? Some of tient must share intimate personal The standard response I received them might have been unsuspecting. health details. That health insurance from health insurers was that they They went to a carnival or county fair company may not have the same eth- monitored or tape recorded calls for or neighborhood picnic, and they had a ical and legal confidentiality obliga- ‘‘quality control.’’ Yet no one could ex- little thing handed to them. It said, tions as the patient’s treating physi- plain how the health insurer’s record of ‘‘Win a free trip to Hawaii. Fill in your cian. the information discussed protects the name and address and check the box in

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00057 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4696 CONGRESSIONAL RECORD — SENATE May 12, 1998 the bottom.’’ They didn’t flip it over to company up there.’’ You know what? to find it? You have to take the time to see the other side that said, ‘‘You just The name of the company was Long read through it. We want to make sure changed your long-distance carrier.’’ Distance Charges. So, when you are we address that abuse as well. It would happen time and time again. going through your telephone bill and Today, though, we are addressing in Folks would get these interminable you are looking at your local carrier a responsible way a very serious prob- telephone calls at night saying, ‘‘Would who sent it to you, and you get to a lem that affects consumers across you consider moving to this new serv- page which reads ‘‘Long Distance America. I salute Senator MCCAIN, as ice?’’ They say, ‘‘No, no, there is no Charges,’’ it never dawns on you that well as Senator HOLLINGS, who have way.’’ It turns out they were being you are no longer receiving long-dis- joined me in this effort through inves- taped. People were splicing together tance service from your old carrier. tigations, as well as in preparation of the tapes. When it was all said and You have a new carrier called Long amendments to this very good bill. I done, they took the spliced tapes, and Distance Charges, and you didn’t no- am happy to support it. I yield back said the person said ‘‘yes’’ when they tice that your long-distance bill just the remainder of my time. asked about the long-distance service, went up. That is the kind of chicanery Mr. CAMPBELL. Mr. President, but the person said ‘‘yes’’ when they and trickery these people are guilty of. today I want to express my support for asked about the name. They make millions of dollars at it. As the Consumer Anti-Slamming Act, S. It turns out a lot of people were a consequence, we have to treat them 1618, which addresses the unauthorized being defrauded, and it cost a lot of with the criminal penalty which is in- switching of telephone service carriers money, not just for the lady who came cluded in this bill. by competing service providers. This to see me and her business, but many I want to make an additional point abusive practice has become an in- others. This is theft. This is stealing. about the criminal penalties amend- creasing problem in my home state of This is not gaming we are dealing with ment. Creating a criminal statute for Colorado where slamming has grown at here; it is a situation where a lot of slamming in no way lessens the appli- an alarming rate. Last October, Chair- people are making money without the cability of existing laws such as wire man BURNS of the Communications permission of those whose long-dis- fraud or mail fraud that can help com- Subcommittee of the Commerce, tance service is being changed. bat slamming, too. Rather, this crimi- Science, and Transportation Com- I went up to the State of Maine with nal statute for slamming will make it mittee held a field hearing in Denver my colleague, Senator COLLINS, who easier for prosecutors, because it ap- on this issue. In addition to this hear- spoke earlier on the floor, for a hearing plies specifically to this crime. ing, anti-slamming legislation has re- on the subject and found it was lit- Finally, a third amendment agreed to cently passed the Colorado State Legis- erally a national problem. From the by Senator MCCAIN will require tele- lature. With Colorado as one of the na- coast of Maine to California and every- communications carriers to report the tion’s top five states in complaints-per- thing in between, people were going number of slamming complaints they million customers, I intend to vote for through this and we didn’t have the receive about each company to the this anti-slamming legislation. laws in place to protect the consumers. FCC. We know the incidence of slam- I also am pleased that S. 1618 incor- That is why this bill is so important— ming is on the rise. We have no way of porates provisions from my Anti-Slam- because this bill finally gives to the tracking them. This will establish it. ming Bill, S. 1051 which I introduced on consumer an opportunity to say to the Slamming has already caused tele- July 22, 1997. This language requires person who is slamming them, ‘‘You phone customers to become angry and that the FCC annually report to Con- are not going to get away with it.’’ One of the amendments which Sen- disillusioned with the entire tele- gress the ‘‘Top Ten’’ slammers for each year, as well as carriers assessed fines ator MCCAIN was nice enough to adopt communications industry. These con- and make part of the bill was offered sumers have voiced their concerns to or penalties during the same period. The ‘‘Top Ten’’ list identifies those by Senator COLLINS and myself. It said their local phone companies, to their you will never be charged more than State regulatory bodies, to the FCC. carriers subject to the highest number what your original long distance car- But they feel their complaints have not of subscriber slamming complaints rier would have charged you. So if been heard. compared to the total number of sub- somebody comes along and doubles With this legislation, we can begin to scribers they serve. This ratio ap- your rate without your permission, you restore confidence in the industry and proach ensures that large companies still don’t have to pay anything more assure consumers that the deceptive are not automatically singled out by than what was in the original rate practice of slamming will be stopped. virtue of having a large customer base. structure with your original long-dis- Long-distance telephone consumers The focus of my ‘‘Top Ten’’ amendment tance carrier. I think that makes should be able to stand up for them- is on those companies with the highest sense. I think it is only fair. selves and fight back against percentage of slamming complaints The other amendment which we slammers, to let them know their ac- relative to their total customer base. pushed for, the second amendment, cre- tions will not pay. This ‘‘Top Ten’’ list will give Con- ates criminal penalties which are nec- You have heard, during the course of gress an annual opportunity to review essary for the most egregious this debate, lengthy statistics about and publicly comment on this serious slammers. These are not little compa- the nature of the problem. I will not re- problem known as ‘‘slamming’’. I am nies with little ideas; these are devious peat them, only to tell you that it is a convinced that this approach coupled groups with a network of information serious problem addressed in a serious with the language in S. 1618, will prove which are trying to set up a network of way by this legislation. valuable in deterring carriers from en- people across the United States who In closing, one small footnote: The gaging in illegal tactics. will be changed to their long-distance outrage of slamming has now been re- Ms. SNOWE. Mr. President, I rise service just long enough for them to placed in complaints to my office by today to speak in favor of the legisla- make some money. the outrage of cramming. It turns out tion now before the Senate—S. 1618, You should have seen the hearing in the lengthy telephone bill you re- the Consumer Anti-Slamming Act—and that Senator COLLINS had before the ceived there may be an item which to urge for its adoption and enactment. Government Affairs Committee, where looks innocent enough for two or three This legislation—which was crafted she presented a bill from one of these dollars for something you never or- by the distinguished Chairman of the companies to the Chairman of the Fed- dered. Who is going to go through the Commerce Committee, JOHN MCCAIN, eral Communications Commission. She telephone bill and analyze every line? and the Ranking Member of the Com- posted it up on the board, and she said But unless you do, you may find your- mittee, ERNEST HOLLINGS—will help to the Chairman: ‘‘Take a look at this self in a predicament where they are eliminate a reprehensible practice of long-distance bill from a slamming cramming in charges you never asked unscrupulous telephone companies, and company and tell me one thing. What for. I congratulate them for their leader- is the name of the company?’’ You are paying three bucks a month ship on this issue. As a member of the The Chairman took a look at it, and every month of the year for something Senate Commerce Committee, I am he said, ‘‘I don’t see any name of the you didn’t ask for. How are you going pleased that my friend and colleague,

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00058 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4697 Chairman MCCAIN, has moved rapidly ready has the authority to combat this distance carrier of their choice at the to address the slamming epidemic that practice by assessing fines against tele- local phone company. As a result, no is occurring in Maine by bringing this phone carriers that slam. But with a 25 order to change phone companies can legislation to the floor of the Senate. percent increase in the number of be completed without the express, di- In addition, I would also like to slamming complaints that were filed in rect authorization of the customer to thank my colleague from Maine, Sen- just the past year—and even with the the local phone company. ator COLLINS, for highlighting this level of fines and penalties that have To ensure that this option is in no issue by holding oversight hearings in already been imposed on companies—it way impeded in the future, I have pre- her capacity as Chair of the Govern- is obvious that the FCC’s current ap- pared an amendment that would ensure mental Affairs Subcommittee on Per- proach is not working. And it is for that no subsequent action by the FCC manent Investigations, including a re- this reason that the legislation before can be undertaken to restrict or im- cent hearing in the State of Maine— this body is so critical. pede the customer’s ability to ‘‘freeze’’ and she has also offered legislation Mr. President, S. 1618 will put this in place the carrier of their choice. I that is designed to combat slamming. reprehensible practice to an end by understand that this amendment is ac- In case there is any doubt about the providing definitive procedures for ceptable to the manager’s of the bill, importance of this issue in Maine, the telephone companies to follow in and has now been included in the man- involvement of both Senators should changing a customers’s telephone serv- ager’s amendment. Therefore, I would put that to rest! ice; giving federal and non-federal au- like to thank the Chairman and Rank- Mr. President, as many of my col- thorities the power to impose tough ing member for addressing this issue leagues are aware, ‘‘slamming’’ is a sanctions on companies that are guilty and accepting my provision. term that has been used to describe of slamming; and providing measures Mr. President, the bottom line is, any practice that changes a consumer’s to ensure that slamming victims are slamming is a serious crime, and this is long-distance carrier without the con- fully-compensated. a serious solution. Companies engaged sumer’s knowledge or consent. A vari- Specifically, to ensure that changes in slamming will no longer be able to ety of tactics and techniques can be in phone service are made in a hide behind the anonymity of the used to accomplish this goal, including verifiable manner, the bill requires phone lines. Phone companies and their vague or inaccurate phone solicita- phone companies to obtain written, customers should reach agreements on tions; unsolicited ‘‘welcome packages’’ verbal, or electronic verification from phone services, but slamming destroys that look like an advertisement but a consumer who is changing providers. that relationship. Therefore, this bill automatically lead to a consumer To ensure that customer complaints will restore an element of trust that changing phone companies unless the are dealt with in a timely manner, car- has been lost through this abhorrent individual returns a rejection card; and riers accused of slamming will be re- practice. ‘‘drawings’’ for giveaways that also quired to defend their actions in no Mr. President, slamming is nothing serve as a means of unwittingly chang- more than 120 days, and the FCC will less than high-tech extortion, and the ing services. have no more than 150 days to resolve law must be changed to deal with this Regardless of the tactic used to slam any outstanding disputes. new criminal threat, and I hope my a customer, the bottom line is that it’s If slamming has occurred, the bill colleagues will join me in supporting an unfair and illegal practice—and it’s gives the FCC the authority to provide this important legislation. one that must be brought to a halt. Mr. HARKIN. Mr. President, every Mr. President, phone customers ex- compensatory or punitive damages to year thousands of Americans are vic- pect high-quality phone service for a consumers that companies would be re- timized by fraudulent telemarketing fair price. If a phone company is going quired to pay within 90 days. In addi- promotions. And, unfortunately, these to ‘‘reach out and touch someone,’’ it tion, provide a strong disincentive to must be done legally and with fairness potential slammers, the FCC would be scam artists prey most often on our to the customer. Consumers who are required to impose fines on phone com- senior citizens. The losses every year slammed often receive lower-quality panies that are guilty of slamming of are estimated to be in the billions of service or higher rates, and sometimes at least $40,000 for a first-time offense dollars. My amendment will help law they are not even aware that they have and $150,000 for repeat offenses. And If enforcement to more effectively com- been slammed until they get their a company refuses to pay these fines, bat these abuses. bills. This is an outrageous practice the bill provides that the FCC will also Today, its all too easy for tele- and I think we can all agree that its have the authority to prosecute marketing rip-off artists to profit from demise is long overdue. slammers. the current system. How do these rip- Last year, in my home state of Finally, if a consumer wishes to pur- offs occur? Advertisements regarding Maine, the number of slamming com- sue redress through means other than sweepstakes, contests, loans, credit re- plaints doubled to a total of 1,000 be- the FCC, this bill allows consumers to ports and other promotions appear in tween 1996 and 1997. Nationwide, more pursue their grievances in court newspapers, magazines, and other di- than 20,000 consumers filed slamming through state class-action lawsuits in- rect mail and telephone solicitations. complaints with the FCC, the largest stead of through the FCC. And in the The operators of many of these phoney category of complaints the agency re- event a specific state does not believe promotions set up a telephone boiler ceived. In 1996, it received more than these penalties are strong enough, the room for a few months in which a num- 16,000 total slamming complaints. As a bill specifically retains the rights of ber of phones are operated to receive result of these complaints, the FCC has each state to impose stiffer sanctions. calls responding to their ads. They taken enforcement action against 15 This bill and the provisions it con- steal thousands—even millions—of dol- companies for slamming violations tains are based on common sense and lars from innocent victims and then over the past two years, while assess- good policy, and I urge my colleagues they simply disappear. They take the ing more than $1 million in forfeitures to join me in supporting it. money and run—moving on to another and consent decrees with another Mr. President, while this bill is a location to start all over again. $500,000 in additional penalties pending. very sound approach to addressing the Here’s just one example. Not too long Mr. President, as these numbers slamming epidemic, there is one addi- ago, 30,000 Iowans received postcards clearly indicate, this is a serious prob- tional technique that consumers al- from an organization calling itself lem that is only going to get worse. In ready have at their disposal to prevent Sweepstakes International, Inc. The particular, the threat exists that—as slamming from occurring, and I believe postcard enticed recipients to call a competition develops in other commu- we should seek to fully-protect this 900-number and they were charged $9.95 nications markets—slamming could ex- consumer option in this bill. on their phone bill. tend into new services and become an Specifically, if customers are con- Based on a Postal Service investiga- even more onerous consumer problem cerned that they will be unwittingly tion, civil action was initiated in U.S. if it is left unchecked. tricked—or unknowingly forced—into District Court in Iowa. As a result, the As has been indicated, the Federal changing their phone company, they promotion was halted and $1.7 million Communications Commission (FCC) al- can now ‘‘freeze’’ into place the long was frozen. This represented just one

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00059 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4698 CONGRESSIONAL RECORD — SENATE May 12, 1998 and a half month’s revenue from the year have their long distance carrier or company to notify a consumer within scam! local provider switched without con- 15 days of a change in service. The no- My amendment will protect tele- sent. tification must indicate the name of marketing victims by providing law In September of 1997, the National the person who requested the change enforcement the authority to more Consumers League polled tele- and inform the consumer that he or she quickly obtain the name, address, and communications consumers in Mil- may request further information about physical location of businesses sus- waukee, Wisconsin, Chicago, Illinois, when and how the change was author- pected of telemarketing fraud. Phone and Detroit/Grand Rapids, Michigan. ized. It must also contain information companies would have to provide law The poll showed that of the 1500 indi- about how to pursue a complaint if the enforcement officials only the name, viduals surveyed, three out of 10 re- customer believes he or she has been address and physical location of a tele- ported that they, or someone they slammed. marketing business holding a phone know, had been slammed. In Mil- Penalties are also significantly in- number if the officials submitted a for- waukee, of those who said they had ex- creased in this bill. The FCC may mal written request for this informa- perience with slamming, 41% said their award damages of $500 or the actual tion relevant to a legitimate law en- own telephone carrier had been damages incurred, whichever is great- forcement investigation. It will make changed without their consent. Even er, directly to the consumer. And the it easier for officers to identify and lo- more disturbing, the survey provided FCC can fine carriers who violate the cate these operations. This is similar evidence that slammers appear to be anti-slamming regulations $40,000 for a to the procedure that is already in targeting consumers who have high first offence and $150,000 for additional place for post office box investigations. long distance bills, raising privacy con- offences. These significant penalties Mr. President, it is necessary to cerns regarding billing information. should eliminate the economic incen- crack down on serious consumer fraud. Mr. President, this is consumer fraud tives to engage in these illegal prac- With this change, we will have many of monstrous proportions. It causes tices. more successful efforts to shut down extra cost and inconvenience to con- Mr. President, the information age these rip-offs artists like several recent sumers, and it also distorts tele- has now arrived. Technological ad- cases in my home state of Iowa. communications markets and discour- vances hold out great promise for mak- Mr. FEINGOLD. Mr. President, today ages legitimate competitive practices. ing our daily lives easier and more en- I rise to speak in support of the anti- The prevalence of slamming and the joyable. Competition is the driving slamming bill, S. 1618. I want to com- lack of any strong disincentives force in bringing those advances to the mend Senator MCCAIN, Senator HOL- against it rewards companies that use consumer at ever more affordable LINGS, and the rest of the Commerce this fraudulent practice and penalizes prices. Allowing consumers to choose Committee for bringing this bill to the those that seek new customers through between competing long distance and floor, and I am proud to be a cosponsor legitimate and honest means. local service providers should improve of the bill. The 1996 Telecommunications Act service and lower prices. But when irre- Slamming is an important and wide- recognized the slamming problem and sponsible or even criminal elements spread consumer problem, and it is broadened the scope of FCC’s regu- seek to take advantage of unsuspecting high time that the Congress takes ac- latory authority over slamming to consumers through activities like tion to stop it. Slamming, as most peo- cover all telecommunications carriers slamming, forceful regulation is nec- ple now know, is a practice carried out rather than just long distance service essary. by some telecommunications compa- providers. The Act also provided that a The unethical and illegal practices of nies to switch a consumer’s long dis- carrier that violates the FCC’s companies who seek to victimize con- tance or local exchange carrier without verification requirements is liable to sumers to enhance their own profits the consumer’s knowledge or consent. the customer’s original carrier for all must not be tolerated. Protecting con- Only a few years ago this practice, charges paid by the customer after he sumers from those who engage in these while persistent and frustrating for or she had been slammed. practices is one of my most important some consumers, appeared limited in The FCC now has rules prohibiting responsibilities as a United States Sen- scope. However, in more recent years slamming and requires companies to ator. I believe that this bill gives the this type of consumer fraud appears to verify the customer’s authorization of FCC the tools it needs to crack down have grown into a common profit-mak- any switch in carriers, but these rules on the slamming problem once and for ing scheme of some telecommuni- obviously haven’t done the trick. For all. I am proud to vote for it. cations companies carried out at the one thing, the penalties for slamming Ms. SNOWE. Mr. President, S. 1618 is consumer’s expense. just aren’t tough enough. While the a well-crafted bill that is designed to The rise in slamming complaints has FCC has taken enforcement action prevent the unauthorized transferring been absolutely astonishing. The Fed- against a number of telecommuni- of a customer’s phone carrier. This is eral Communications Commission re- cations companies, the tremendous accomplished through a variety of pro- ports that the 11,000 slamming com- profit opportunities from slamming visions, including the threat of strong plaints they received in 1995 rep- overwhelm the threat of FCC enforce- penalties on telephone companies that resented a sixfold increase in the num- ment. engage in slamming. ber of complaints received in 1993. By The Consumer Anti-Slamming Act While I strongly believe that the pen- 1996, slamming complaints rose by an should be an effective antidote to this alties established in this legislation additional 42 percent over 1995, with problem. It establishes minimum should be fully-enforced, I would like the FCC receiving more than 16,000 verification requirements for submit- to clarify the type of conduct that complaints. And in 1997, the FCC re- ting changes in local or long distance these penalties are being targeted to ceived 44,000 complaints from con- telephone service. The requirements address. Specifically, is it the Chair- sumers, nearly triple the 1996 total. apply when service is first requested as man’s intent that the significant finan- But these numbers only begin to tell well. The bill also bans so-called ‘‘neg- cial penalties contained in Section 1(f) the story. In Wisconsin, slamming is ative option’’ marketing—this is where be imposed for all cases of unauthor- the number one telecommunications a company sends you a letter that says ized carrier changes, including changes complaint, and telecommunications is your service will be switched unless that are accidental or innocent mis- the single largest category of consumer you send back a reply card to say no. takes, such as when an order to change complaints that the Wisconsin Depart- With all the junk mail that people now service providers in improperly keyed- ment of Agriculture, Trade and Con- receive, this is a particularly reprehen- in by a customer service agent? Or are sumer Protection received last year. sible business practice, and I am these penalties designed to address That agency reports that slamming pleased that this bill outlaws it. cases of slamming that involve willful complaints were up 400 percent in 1997. The bill also addresses the problem or intentional misconduct on the part The National Association of State Util- that many people do not even know of companies? ity Consumer Advocates estimates that that when they have been slammed by Mr. MCCAIN. I appreciate the ques- as many as one million consumers each requiring the new telecommunications tions of the Senator from Maine, and

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00060 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4699 believe it is important that the intent I would now like to speak on an issue tions (PSI), chaired by Senator COL- of this legislation be fully understood. involving more traditional communica- LINS. Slamming, the practice of chang- This bill is designed to ensure that tions, that of slamming. I have held ing a consumer’s long distance carrier companies are deterred from the rep- two field hearings in the Communica- without the consumer’s knowledge and rehensible practice of slamming, and tions Subcommittee on this important express consent, is the number one that harsh penalties are imposed as a topic, one in Billings last August and complaint received by the Federal form of punishment if the practice is one in Denver last October. Communications Commission (FCC). undertaken by an unscrupulous com- During the field hearing in Billings, I And those FCC slamming complaints pany. However, the penalties in this heard from consumers, industry rep- are on the rise—increasing almost 50% bill are not intended to be used for resentatives and regulators on a vari- from 1995 through 1997. Slamming is cases of innocent or accidental changes ety of slamming issues. I learned in also the number one complaint re- of carriers, such as the situation de- Billings that slamming is not confined ceived by the Michigan Public Service scribed by my colleague, Senator to big cities. It is reaching every part Commission. And, Michigan has the SNOWE—and the language of this bill of our country. Consumers are falling unfortunate distinction of being in the has been crafted accordingly. Specifi- prey every day to companies that in- top ten states, nationwide, for the cally, the bill provides that the Com- tentionally mislead and deceive. number of consumers who have been mission can waive the minimum pen- Today, I look forward to building on slammed. A Louis Harris survey taken alties if they determine that there are the record we started in Montana. in September 1997 ranked Detroit and mitigating circumstances, which would I should also recognize that Senator Grand Rapids among the hardest hit include cases of innocent or accidental BEN NIGHTHORSE CAMPBELL has shown cities in the country. About 25% of changes of carriers. real leadership on this issue through telephone customers in Detroit and Ms. SNOWE. I thank the Chairman his introduction of an anti-slamming Grand Rapids have either had their for clarifying this important issue and bill, particularly at the field hearing in telephone carrier switched without for crafting language that reflects this Denver, which he attended. The bill be- their permission or know someone who intent. I am very appreciative for your fore the Chamber today, S. 1618, incor- was illegally switched. leadership and efforts to curb the prac- porates language from S. 1051, Senator Slamming leaves consumers feeling tice of slamming, and commend the CAMPBELL’s slamming bill. The amend- vulnerable and angry. Consumers have Senator for crafting legislation that ment including Senator CAMPBELL’s the right to use any long distance car- will forcefully attack this growing language was passed unanimously out rier they choose and to change carriers problem. of the Commerce Committee on March whenever they wish. But they want to Mr. BURNS. Mr. President, I rise to 12 of this year. be in control. Slamming takes choices support the Consumer Anti-Slamming This language requires that the FCC away from consumers without their Act, as it addresses a severe problem will annually report to Congress the knowledge, and rewards companies that has arisen as an unintended con- ‘‘Top Ten’’ slammers for that year, as that engage in deceptive and mis- sequence of additional competition in well as carriers assessed fines or pen- leading marketing practices. the telecommunications marketplace: alties during the same period. The Slammers use deceptive marketing the unauthorized switching of cus- ‘‘Top Ten’’ list would identify those practices such as getting subscribers to tomers’ telephone service providers. I carriers subject to the highest number sign a misleading authorization form, also understand that the managers’ of subscriber slamming complaints falsifying tape recordings to make it amendment of the bill includes lan- compared to the total number of sub- appear that the consumer has verbally guage that addresses another serious, scribers they serve. This ratio ap- agreed to the change, or posing as the unintended problem posed by the proach ensures that large companies subscriber’s currently authorized car- growth of information technology: the are not automatically singled out by rier. Unscrupulous carriers have been explosion of junk e-mail, or virtue of having a large customer base. known to forge letters of authorization ‘‘spamming.’’ The focus is on those companies with or even pull subscribers’ numbers from I congratulate Senators MURKOWSKI the highest percentage of slamming a telephone book and submit them to and TORRICELLI for their hard work on complaints relative to their total cus- the local exchange carrier for a long dealing with the issue of spamming. S. tomer base. distance carrier change. Unscrupulous 1618 as amended includes language that This ‘‘Top Ten’’ list represents the resellers generally bill higher rates would require commercial e-mailers to core of Senator CAMPBELL’s anti-slam- once the subscriber is switched. identify themselves. This language is ming bill. Having held two field hear- In one case in Michigan, the slammer simply a ‘‘Truth in Advertising Amend- ings in the Communications Sub- used the device of a contest—the oppor- ment.’’ As any of us who use e-mail are committee on this important topic, I tunity to win a trip or a car—to get finding out, millions of junk e-mails am convinced that Senator CAMPBELL’s consumers to sign a card that would are sent out with fake e-mail addresses approach will prove very valuable in then be used to change the long dis- which prevent citizens from requesting deterring carriers from engaging in il- tance service. The Michigan consumer that they not be sent any further clut- legal tactics. who filed a complaint with the Michi- ter from the same sources. The amend- As competition develops in new com- gan Attorney General reported that ment also requires that a junk e-mailer munications markets, we could see her 14 year old daughter was ap- must honor requests from individuals slamming migrate to new areas and be- proached several times in a shopping to be deleted from mailing lists. come an even bigger problem. Clearly, mall to sign the card under the aus- I should add that the problem of junk something must be done soon to pro- pices of participating in the contest. e-mail is particularly important to tect consumers and to protect good, The daughter kept trying to resist— customers in rural areas such as Mon- clean competition. telling the slammer that she was un- tana. Often, rural residents must pay I am confident that the Consumer derage for the contest. The slammer fi- long distance charges to receive these Anti-Slamming Act as amended will nally prevailed, and the 14 year old unwanted solicitations, many of which accomplish this goal and I urge my col- daughter entered what she thought to contain fraudulent messages. leagues to support it. be a contest or drawing. However, a ‘‘Spamming’’ is truly the bane of the Mr. LEVIN. Mr. President, the man- week or so later, this constituent was information age. This problem has be- gers’ amendment included two amend- notified that her long distance carrier come so pervasive that entire new net- ments to S. 1618 which I authored and had been changed—unbeknownst to works have had to be constructed to which I appreciate the managers of the her. She wrote in her letter to the At- deal with it, when resources would be bill accepting. I am joined in offering torney General: ‘‘I am very upset that far better spent on educational or com- these amendments by cosponsors Sen- this is happening not only to me but to mercial needs. I welcome the inclusion ator GLENN and Senator DURBIN. others as well. It’s a scam and it needs of this language as a much-needed step These amendments are the product of to stop now!’’ forward in dealing with this increas- hearings held on slamming in the Per- Although the large telecommuni- ingly serious problem. manent Subcommittee on Investiga- cations companies, called facilities

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00061 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4700 CONGRESSIONAL RECORD — SENATE May 12, 1998 based carriers because they own exten- substitute requires full disclosure of antislamming legislation before us. I sive telephone lines and equipment, the long distance services and pro- believe that this bill, S. 1618, is a bill have engaged in slamming, according viders on the local phone bill. We that we must act on quickly and deci- to a recent GAO report, most inten- learned, Mr. President, in the hearing sively. I am happy that when the Sen- tional slamming is perpetrated by on slamming that some switchless re- ate concludes its business today, we switchless resellers. Switchless re- sellers go to great lengths to disguise will have passed the legislation and for sellers have no equipment; they pur- the fact that they have taken over a good reason. The problem which this chase network facilities from large consumer’s long distance service. One legislation seeks to address described, I long distance companies at a bulk rate reseller, for example, incorporated guess, by the euphemism ‘‘slamming,’’ and resell the service either to con- under the name ‘‘Phone Calls.’’ An- is one that is a growing concern to peo- sumers or to other resellers. Currently other used the name, ‘‘Long Distance ple in my State and, I suspect, to al- a switchless reseller can enter into the Services.’’ Those names, then, appeared most all the other States represented telecommunications business without on the consumers’ phone bills, and no in this body. any proof of financial capability. All a one would have paid attention to those In Michigan, during the last year, person has to do is strike a deal with a names. Anyone looking at such a phone complaints about this practice, which long distance carrier to use that car- bill would have assumed those were not is the changing of an individual’s or rier’s lines and facilities, get a billing the names of the unexpectedly new customer’s long-distance service with- company to provide billing services long distance carriers, but the identi- out their knowledge and approval, has and develop a customer base. The fication of the item being listed below risen from relative obscurity to becom- switchless reseller is then in business —the phone calls. The consumer would ing, next to billing problems, the sec- and can use unscrupulous practices to continue to assume that his or her long ond largest source of complaints re- switch the long distance providers of distance carrier had not been switched. ceived by Michigan’s Public Service innocent consumers from the carrier To make it perfectly clear to con- Commission. sumers who their long distance pro- the consumer has been using to the The nature of the complaints are, of switchless reseller. The reseller then vider is, the provision requires that the local telephone bill explicitly state the course, pretty obvious and have been charges higher long distance rates. depicted very well by Chairman Many switchless resellers operate le- name, address and toll-free number of MCCAIN and others in the discussion so gitimately; but there are a surprising the long distance telephone provider far today. People find that through no number who don’t. Currently there is and the specific services provided. This act of their own, or certainly no inten- nothing in the law that screens out the hopefully will address the problem of tional act of their own, they have had scam artists from the legitimate re- hidden or disguised switching—where a their long-distance service changed sellers. S. 1618 increases civil penalties, consumer gets a bill and can’t tell that usually with negative consequences. In creates new criminal penalties and in- his or her long distance carrier has our State, the negative consequences cludes disincentives to eliminate the been switched. This provision gives the usually fall into two categories, often profit for slammers. I am supportive of FCC the authority to make telephone both happen simultaneously: On the those provisions and ask unanimous bills absolutely clear so slammers one hand, people find that their service consent that I be added as a cosponsor. can’t hide behind vague or confusing But, Mr. President, we also need to phone bills. level and quality is diminished; on the try to keep the scam artists out of the Mr. President, I want to commend other hand, they find that their bills system—to keep consumers from being Senator MCCAIN and Senator HOLLINGS are getting higher. slammed in the first place. My amend- for their good work in getting this im- The latter happens for a variety of ment would require switchless re- portant piece of consumer legislation reasons. First, because frequently the sellers—those resellers who have no to the floor so quickly. I also want to new company, in fact, just simply has switching facilities under their owner- commend Senator COLLINS and Senator higher bills and charges higher rates. ship or control—to post a bond with DURBIN from the PSI subcommittee for In addition, they find it happens be- the FCC before they can engage in the their energy and commitment to publi- cause they have found themselves the business of selling long distance serv- cizing and helping to solve this prob- victim of slamming on several separate ice. The bond would be in an amount lem. occasions during a billing period. They set by the FCC, and the amendment S. 1618, with my amendments, will have moved from one company to a would prohibit a billing agent of a provide important consumer safe- second and sometimes to even a third switchless reseller from billing sub- guards, Mr. President, to help keep and fourth. Many of the current rate scribers of long distances services on slammers out of the system. Legiti- practices engaged in with respect to behalf of the switchless reseller unless mate resellers will be able to conduct long-distance rates give people a re- the billing agent has confirmed that their businesses without ruthless duced rate if they stay with a service a the reseller has furnished the bond. In slammers tarnishing the reseller busi- certain period of time. this way, a switchless reseller cannot ness. However, as a result of slamming, get someone to bill on its behalf unless Mr. MCCAIN addressed the Chair. people change from one to a second to The PRESIDING OFFICER. The Sen- it has posted a bond with the FCC. The a third to even a fourth company dur- ator from Arizona. proceeds of that bond can be used to ing a billing period or a period during Mr. MCCAIN. Mr. President, I yield pay for any damages to a consumer which a rate is being determined based myself such time as I may consume. on continuity of service. Individuals awarded by the Commission to reim- We have one amendment remaining discover that their long-distance calls burse the consumer for excess charges of Senator ROCKEFELLER. We are await- that they expect to have been charged incurred as a result of slamming. The ing his arrival on the floor. I hope that at a very low rate are, in fact, being requirement for a bond should keep the Senator ROCKEFELLER will arrive pret- billed at very high rates. unscrupulous resellers out of the busi- ty quickly, because we have another ness. Take for example, David Fletch- bill to do tonight. In the meantime, I For all of these reasons, we need to er, possibly the most notorious suggest the absence of a quorum. take action now. I mentioned that in slammer. He started his slamming The PRESIDING OFFICER. The our State, the slamming practice has business, apparently, with no resources clerk will call the roll. become the second most widely voiced and managed to bill up to $20 million in The legislative clerk proceeded to complaint heard by our Public Service long distance services. He couldn’t call the roll. Commission. Our local telephone serv- start his business and no billing agent Mr. ABRAHAM. Mr. President, I ask ice carrier, Ameritech, the principal or phone company could have con- unanimous consent that the order for carrier in Michigan, reports that they tracted with him to do his billing un- the quorum call be rescinded. are receiving complaints. People think less he had posted a bond with the FCC, The PRESIDING OFFICER. Without somehow they are responsible. Last under my amendment. objection, it is so ordered. year alone they received 37,000 such The other amendment which the Mr. ABRAHAM. Thank you, Mr. complaints of slamming practices oc- Managers have incorporated in their President. I rise today to address the curring.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00062 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4701 In order to find out more about this, The PRESIDING OFFICER. The their e-mail boxes. Under this provi- I went back to Michigan during a re- clerk will call the roll. sion, citizens will know exactly who cent recess and began meeting with in- The legislative clerk proceeded to the sender is and have the option of dividuals who were themselves the vic- call the roll. turning that sender away from their tims of slamming. What I discovered Mr. MURKOWSKI. Mr. President, I inbox. was that, in fact, the practices used by ask unanimous consent that the order The provision further requires that a these long-distance companies border for the quorum call be rescinded. junk e-mailer must honor the request on outright fraud, and in some cases, The PRESIDING OFFICER. Without of an individual who asks that his or go over the line to actual fraud. objection, it is so ordered. her name be deleted from the mailing People have been called up and asked Mr. MURKOWSKI. I ask unanimous list permanently. It’s as simple as that. if they want ‘‘direct billing’’ for their consent that I may be allowed to speak I doubt if there is anyone among us long-distance service. They answer yes for about 21⁄2 minutes. here today who would argue against and find the ‘‘Direct Billing’’ is, in The PRESIDING OFFICER. Without someone’s wish to simply be left alone fact, the name of a new long-distance objection, it is so ordered. by junk e-mailers. service company and that their answer Mr. MURKOWSKI. I thank the chair. The amendment permits the Federal is being used as a basis for the chang- JUNK E-MAIL Trade Commission, the State Attor- ing of their service. Mr. MURKOWSKI. Mr. President, I neys General, and Internet service pro- In other cases, people engage in a am pleased that the chairman is in- viders to protect consumers from Inter- conversation of someone calling over cluding in the manager’s amendment net junk e-mail by allowing them to the telephone, an innocuous conversa- language that I offered along with my sue those junk e-mailers who fail to tion, but find the information has been colleague, Senator TORRICELLI. identify themselves properly or refuse rescripted in such a fashion as to give Mr. President, one of the downsides to remove a person’s name from a mail- a basis for changing the long-distance of the technological revolution that is ing list. service. symbolized by communications today Mr. President, junk e-mail has be- The bottom line, Mr. President, is on the Internet is the growing mul- come so pervasive that some have sug- that this practice is wrong. It is hurt- titude of junk e-mail. Junk e-mail has gested a complete ban on such unsolic- ing consumers across America, and we quickly become the scourge of the ited advertisements. I believe that have an obligation to stop it. I believe Internet. It clogs America’s inboxes Internet users should control what the legislation before us now does so. and raises costs to all Internet users. comes into their electronic mailboxes, I am glad we were able to pass it so Among those who are regular e-mail not the government. And I wish to em- quickly and so overwhelmingly users, junk e-mail is known as ‘‘spam,’’ phasize that. This debate should not be through the Commerce Committee, and which many suggest is an insult to the about the government controlling the I look forward to the vote today where Hormel Corporation. I originally recog- content of individual electronic mail- I am confident we will, once again, nized spam as a spinoff of the Second boxes, but about individual users tak- send a signal that we are not going to World War where food was given to sol- ing control of their own mailboxes. I tolerate these practices any longer. diers, commonly referred to as C ra- think my provision will sufficiently re- The additional penalties that are part tions, that implied a mixture of food duce the problems of junk e-mail, and of this legislation, in my judgment, set products. In any event, it is the name thus show that banning is unnecessary. us in the right direction. Not only will Finally, I thank the floor managers that has been adopted for junk e-mail. they send a strong message, but I be- Rural residents of our Nation and my for their attention to this issue, as well as the efforts of America Online and lieve they dramatically deter anyone State of Alaska are forced to pay long- the Center for Democracy and Tech- from engaging in these practices. The distance charges to receive these un- procedures in this legislation should nology. wanted solicitations, the majority of Mr. TORRICELLI. Mr. President, I hopefully provide those who are vic- which contain fraudulent or porno- want to thank Senator MCCAIN and tims with a relatively quick resolution graphic messages. Not only are these Senator HOLLINGS for agreeing to in- of their problems. junk e-mails objectionable, but they so For these reasons, I rise in support of clude the Murkowski-Torricelli junk E- clog the transmission network that the legislation. I am a cosponsor and mail amendment to this bill. And I Internet service providers are forced to am pleased to be part of it. I thank want to thank my distinguished col- spend tens of millions of dollars to ex- Senator MCCAIN and his staff for work- league from Alaska for join with me in pand their networks to handle all of ing not only on this legislation but this effort. these messages. other technology bills that we will be Last year, Senator MURKOWSKI and I America Online reports that up to 30 addressing over the next day or so. I each recognized the growing threat to percent of daily incoming e-mail is close by expressing my support, once Internet commerce posed by the pro- junk e-mail. This volume has forced it again, for S. 1618. I look forward to its liferation of unsolicited commercial e- and other Internet service providers, passage today and ultimately for its mail, known by its Internet slang as the ISPs, to buy more equipment and passage through the Congress in gen- ‘‘Spam.’’ Although we initially had divert staff to handle users’ com- eral and it being signed into law by the somewhat different approaches to this plaints. These resources could be better President. problem, we recognized that something I yield the floor and suggest the ab- spent by ISPs on improving service or had to be done. sence of a quorum. even reducing monthly fees. The amendment we have today is the The PRESIDING OFFICER (Mr. My provision, Mr. President, is a product of a good faith effort involving modified version of legislation that I BROWNBACK). The clerk will call the privacy groups, marketers, online serv- roll. introduced last year—S. 771. When I in- ice providers, and others to achieve a The legislative clerk proceeded to troduced the bill, I put it up on the result that will rein in these destruc- call the roll. Web and asked for e-mail comments on tive e-mail practices, while protecting Mr. MCCAIN. Mr. President, I ask the bill. So far, I have received over the first amendment rights of all who unanimous consent that the order for 1,500—the vast majority of which have wish to send and receive legitimate e- the quorum call be rescinded. been supportive of my efforts. mail. Before I address what our amend- The PRESIDING OFFICER. Without So this provision is really a Truth in ments does, I want to briefly discuss objection, it is so ordered. Advertising provision. It will simply the problem of unsolicited commercial Mr. MCCAIN. Mr. President, as I require commercial e-mailers to iden- junk e-mail. mentioned earlier, we are still waiting tify who they are, their addresses, and Junk E-mail, or so called spamming, for the final amendment. I hope we can their telephone numbers. The reason is an unfortunate side effect of the bur- get it done very quickly. We have an- we have included this provision is that geoning world of Internet communica- other bill to address tonight, and we millions of junk e-mails are sent out tion and commerce. Like many other are still working on that. with phony e-mail addresses which Americans, I have an account on Amer- So I again suggest the absence of a make it impossible for citizens to re- ica Online and am inundated with un- quorum. quest that the sender stop cluttering solicited messages, peddling every item

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00063 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4702 CONGRESSIONAL RECORD — SENATE May 12, 1998 under the sun. Similarly, I receive junk The PRESIDING OFFICER. The (1) the reduction in charges or fees for each e-mail daily at my official Senate e- clerk will call the roll. class of customers (including customers of mail address, as well as the complaints The legislative clerk proceeded to residential basic service, customers of other call the roll. residential services, small business cus- of dozens of constituents who forward tomers, and other business customers) re- me the Spam that they are sent. Mr. DORGAN. Mr. President, I ask sulting from any regulatory action of the The incentive to abuse the Internet unanimous consent that the order for Federal Communications Commission; is obvious, E-mailing ten million peo- the quorum call be rescinded. (2) total monthly charges, usage charges, ple can cost as little as a couple of hun- The PRESIDING OFFICER. Without percentage charges, and premiums for each dred dollars. And because the senders objection, it is so ordered. class of customers (including customers of residential basic service, customers of other of these e-mails are generally un- AMENDMENT NO. 2392 residential services, small business cus- known, they avoid any possible ret- (Purpose: Require truth in billing procedures tomers, and other business customers); ribution for consumers. for telecommunications carriers) (3) notify consumers one billing cycle in Today, unsolicited commerical e- Mr. DORGAN. Mr. President, on be- advance of any charges in existing charges or mailers are hiding their identities, fal- half of Senator ROCKEFELLER, Senator imposition of new charges; and (4) disclose, upon subscription, total sifying their return addresses and re- SNOWE, Senator KERREY, and myself, monthly charges, usage charges, percentage fusing to accept complaints or removal Senator DORGAN, I send an amendment requests. Their actions approach fraud, charges, and premiums for each class of cus- to the desk. tomers (including residential basic service, but our current law doesn’t seem The PRESIDING OFFICER. The customers of other residential service, small strong enough to stop them. clerk will report. business customers, and other business cus- I have long been concerned about ex- The legislative clerk read as follows: tomers). cessive—indeed any—government regu- The Senator from North Dakota [Mr. DOR- Ms. SNOWE. Mr. President, I rise lation of the Internet. Many of the best GAN], for Mr. ROCKEFELLER, for himself, Ms. today to join my good friend and col- qualities of American life are rep- SNOWE, Mr. KERREY and himself, proposes an league from West Virginia JAY ROCKE- resented and enhanced by the Internet, amendment numbered 2392. FELLER, in offering the Consumer Pro- and I fear government regulation has Mr. MCCAIN. I ask unanimous con- tection Act as an amendment to the the possibility to stifle the creativity sent reading of the amendment be dis- Consumer Anti-Slamming bill. and development of cyberspace. pensed with. Just as the slamming bill is designed However, a failure to address this The PRESIDING OFFICER. Without to protect consumers from unscrupu- problem now poses a greater threat to objection, it is so ordered. lous phone companies that change a the Internet than do these minimal re- The amendment is as follows: customer’s phone service without con- quirements. Junk e-mail is estimated At the appropriate place, insert the fol- sent, this amendment will protect con- to take up 30 percent of all Internet lowing: sumers from misleading or inaccurate traffic and is increasingly responsible SEC. . CONSUMER TRUTH IN BILLING DISCLO- billing practices by phone companies. for slowdowns, and even breakdowns, of SURE ACT. Therefore, I urge that my colleges sup- Internet services. Let me be clear, this (a) FINDINGS.—Congress makes the fol- port this pro-consumer amendment legislation is not a de facto regulation lowing findings— that complements the underlying pro- of the Internet. In fact, it does not go (1) Billing practices by telecommuni- consumer Anti-Slamming Act. as far as some have suggested. It does cations carriers may not reflect accurately Mr. President, our nation’s $260 bil- not ban all unsolicited e-mail because the cost or basis of the additional tele- lion telecommunications industry is we wanted to avoid any inference of communications services and benefits that consumers receive as a result of the enact- undergoing a period of rapid growth government interference. However, it ment the Telecommunications Act of 1996 and change. This change is being driv- is a first and needed step in making (Public Law 104–104) and other Federal regu- en by the enactment and progressive cyberspace saner. latory actions taken since the enactment of implementation of the Telecommuni- The Murkowski-Torricelli amend- that Act. cations Act of 1996—a law that is ment takes some important and nec- (2) The Telecommunications Act of 1996 gradually shifting the industry from essary steps. First, it requires senders was not intended to allow providers of tele- being one that is heavily-regulated to of unsolicited commercial e-mail to communications services to misrepresent to one that is open and competitive. identify themselves and provide a valid customers the costs of providing services or the services provided. As would be expected for an industry return e-mail address. Second, it re- (3) Certain providers of telecommuni- of this size, the transition from a regu- quires senders to inform recipients cations services have established new, spe- lated environment to a competitive en- that they have the right to reply and cific charges on customer bills commonly vironment has not been entirely stop any future messages by typing known as ‘‘line-item charges’’. smooth, nor has it been as rapid as ‘‘remove’’ on the subject line. Third, it (4) Certain providers of telecommuni- many of us would prefer. requires junk e-mail to honor any re- cations services have described such charges To date, there have been countless quest to remove someone from their as ‘‘Federal Universal Service Fees’’ or simi- proceeding at the FCC to restructure mailing list. Fourth, it authorizes the lar fees. the way that services are delivered to (5) Such charges have generated significant FTC to enforce these requirements confusion among customers regarding the consumers and the way that tele- with civil fines and injunctive relief. nature of and scope of universal service and communications companies pay each And finally, it requires the FTC to es- of the fees associated with universal service. other for these services. In response to tablish a web site to accept consumer (6) The State of New York is considering these restructuring efforts, there have complaints and list its enforcement ac- action to protect consumers by requiring been a variety lawsuits filed in court tions. telecommunications carriers to disclose by telecommunications companies, and Put simply, our amendment strikes a fully in the bills of all classes of customers members of Congress have weighed-in balance that will help consumers pre- the fee increases and fee reductions resulting when they believe the new rules do not vent unwanted and unsolicited elec- from the enactment of the Telecommuni- cations Act of 1996 and other regulatory ac- accurately reflect the intent of the tronic mail, without creating a burden- tions taken since the enactment of that Act. law. some regulatory system or unneces- (7) The National Association of Regulatory And—as would be expected in an sarily restricting free speech. It recog- Utility Commissioners adopted a resolution emerging competitive market—there is nizes that the government should not in February 1998 supporting action by the non-stop haggling between the tele- hastily and haphazardly regulate pass Federal Communications Commission and communications companies that are legislation to regulate the Internet. the Federal Trade Commission to protect now able to tread on each other’s turf However, it also recognizes that some consumers of telecommunications services after years of being statutorily limited practices are simply too destructive to by assuring accurate cost reporting and bill- to their own market niche. But don’t ing practices by telecommunications car- ignore. riers nationwide. get me wrong...that’s not a bad Mr. President, I urge my colleagues (b) REQUIREMENTS.—Any telecommuni- thing—that’s what competition is all to support this amendment. cations carrier that includes any change re- about. Mr. President, I yield the floor and sulting from Federal regulatory action shall Mr. President, during this time of suggest the absence of a quorum. specify in such bill— rapid transition and daunting change,

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00064 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4703 it is critical that we not forget the in- stand to reap substantial benefits as I would like to thank my friend from dividuals for whom the Telecommuni- new markets are opened for competi- West Virginia for offering this amend- cations Act of 1996 was crafted in the tion. As companies are allowed to enter ment today, and urge that my col- first place: the American consumers. the markets that were previously leagues support this bipartisan, pro- Afterall, this landmark law was not closed to them, those that are competi- consumer amendment. passed because Congress simply wanted tive will reap substantial profits that Mr. KERREY. Mr. President, the to deregulate an industry—rather, it can greatly benefit their customers— Telecommunications Act of 1996 was was passed because competition will but you’d never know this from reading clear; competition and consumer bring consumers a wide array of new a company’s bill. choice are to be the hallmarks of the and advanced telecommunications To remove the confusion that these new telecommunication’s market. services at lower prices. line-items have generated—and to en- However, the transition to competition The amendment we are offering sure that companies exercise full dis- has been anything but clear to con- today is specifically designed to pro- closure on the impact of deregulation— sumers. The growing pains of the tele- tect consumers during this time of the amendment we are offering does communications industry have proved transition in the telecommunications three things. to be very confusing to customers who industry. Specifically, the Consumer First, it directs the Federal Trade lack full information about the various Protection Act will require ‘‘truth-in- Commission (FTC) and the Federal costs associated with telecommuni- billing’’—a guarantee to consumers Communications Commission (FCC) to cations services. that what they see on their phone bills investigate the billing practices of the This lack of information is very trou- is thorough and accurate. telecommunications industry to ensure blesome for customers who are trying Mr. President, as my colleagues have that all fees are being fairly described to make sense of the telecommuni- undoubtedly heard from their constitu- on bills. If any company is found to be cations market. In order to help con- ents—and may be experiencing them- using misleading billing practices, sumers through this confusing morass selves—there is a great deal of confu- these agencies would be directed to of information, I recently joined Sen- sion being generated by new line-item consider disciplinary actions against ators ROCKEFELLER and SNOWE to in- charges that have been added to phone that company. troduce S. 1897 the Consumer Protec- bills in recent months. Since January, Second, the bill ensures that if a tion Act. Today, Senator DORGAN joins many telephone companies have start- company puts a new line-item charge us as cosponsor of this legislation in ed to place new line-item charges on on a phone bill that are attributed to the form of an amendment to S. 1618 customer phone bills for a variety of federal actions, it must also include purposes and under a variety of names, the Consumer Anti-Slamming Protec- line-items that delineate the benefits including ‘‘national access charges,’’ tion Act. of federal actions as well. Customers Under the provisions of this amend- ‘‘universal service charges,’’ or both. deserve to know the whole story when ment, if a company chooses to depict While the descriptions for these charges that are linked to federal pol- charges vary, the central theme is that it comes to federal regulatory ac- these new fees are being imposed be- tions—not just the side of the story icy on their bills, then the company cause of recent federal actions stem- that is in the company’s best interests. will be required to depict the benefits Third, to ensure that the federal reg- ming from the Telecommunications of that action on the same bill. This re- ulator of telephone service has all rel- Act of 1996. quirement allows customers to see In response to these new charges, evant documents available for review, what they are paying for so that they telephone customers are understand- the bill requires that companies submit can gain a better understanding of the ably confused and angry, and want to the same financial disclosure forms to costs associated with a national tele- know why Congress would pass a law— the FCC that they now submit to the communications network. and the President would sign a law— Securities and Exchange Commission As we transition from the rigid world that imposed a host of new costs on (SEC). This requirement won’t impose of monopoly to a competitive market them with no apparent benefits. They a new, excessive burden on phone com- where consumers have choice, we must were told that this legislation would panies—rather, it simply requires that make sure that customers have all of bring competition and lower prices, but they make a photocopy of the forms the facts. Competition depends upon all they see is new charges on their that are already being sent to the SEC free flowing information and the Con- phone bills. They want to know what and mail them to the FCC. sumer Protection Act gives consumers happened to the benefits of deregula- Overall, this bill ensures that accu- the facts they need to make good tion! rate information is being depicted on choices in a competitive market. Mr. President, customers deserve an phone bills—and that customers are I strongly urge my colleagues to sup- answer to these questions and they de- told the whole story about federal ac- port this amendment. serve to know that what they see on tions, not just the side that companies Mr. MCCAIN. Mr. President, I must their phone bills is accurate. And the would like to tell. respectfully oppose the amendment of- simple fact is that the implementation The bottom line is that changes are fered by my good friend and colleague, of the Telecommunications Act has occurring as part of the transition to a Senator ROCKEFELLER. brought—and will continue to bring— more competitive telecommunications Let me explain why I am opposed. I countless benefits to consumers, and market that will bring substantial ben- take no issue with the Senator’s com- they deserve to know about them. efits to consumers and phone compa- mitment to the principles of universal For instance, in July 1997, access nies alike—but some companies would telephone service. And I most certainly charges—which are the fees paid by only like to tell their customers half of take no issue with the principle that long distance companies to local phone the story. That’s simply not fair. consumers have a right to clear and companies for use of their networks— The amendment that we are offering correct information about material ad- were reduced by $1.7 billion. The long is fair. It is a fair for companies, and justments to their bills. I also believe distance companies state that these re- fair for consumers. that companies have an absolute right ductions have been passed on to con- Of critical importance, our amend- to inform consumers about increases to sumers in the form of reduced rates, ment does not re-regulate the tele- their bills that companies have made and I won’t dispute their contention. communications industry—the compa- in response to federal and nonfederal The problem is that their customers nies will still decide for themselves if requirements. don’t know the first thing about this they want to use line items. Our But, with all due respect, that’s not federal action to benefit customers—all amendment simply ensures that if a what’s really at issue here. they know is that new line-items for company does want to use a line-item Mr. President, what’s really at issue various charges prescribed to the fed- for costs, it also will include line-items here is an attempt to rationalize the eral government have been added to for benefits. In addition, it ensures rate adjustments imposed by the Tele- their bills! that the billing practices of companies communications Act of 1996. Unlike By the same token, consumers have are properly examined and improper Senator ROCKEFELLER, I didn’t vote for no idea that the phone companies practices are eliminated. that act, in part because I thought it

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I yield the floor. try is built on a very complex system Having said why it’s unrealistic to Mr. McCAIN. That completes our of implicit internal subsidies. Making try and explain every single thing that amendments. I ask for the yeas and them explicit, while at the same time has an impact on every single con- nays. adjusting them for the advent of com- sumer telecom bill, I emphatically en- The PRESIDING OFFICER. Is there a petition, makes adjustments in con- dorse the proposition that consumers sufficient second? There is a sufficient sumer bills inevitable. Now add these have a right to be told why their bills second. further facts: the Telecom Act creates have gone up—especially when an in- The yeas and nays were ordered. a whole new multibillion-dollar sub- crease is results from a federal or State The PRESIDING OFFICER. The sidy, and it requires local telephone levy. I would like to offer my own question is on the engrossment and companies and interexchange compa- amendment to assure consumers have third reading of the bill. nies to expend billions of dollars to im- access to that information. The bill was ordered to be engrossed plement the Act’s supposedly pro-com- The PRESIDING OFFICER. The for a third reading and was read the petitive provisions. question is on agreeing to the amend- third time. So here are the bottom-line facts. ment. The PRESIDING OFFICER. The First of all, given this hideously con- The amendment (No. 2392) was agreed question is, Shall the bill pass? On this voluted situation, complete ‘‘truthful’’ to. question, the yeas and nays have been disclosure of all the adjustments inher- Mr. ROCKEFELLER. Mr. President, ordered. ent in a consumer’s monthly phone bill first of all, I want to thank the chair- The clerk will call the roll. would add pages and pages to a bill man of the Commerce Committee for Mr. FORD. I announce that the Sen- without necessarily doing much to en- accepting this amendment which I was ator from Delaware (Mr. BIDEN) is nec- lighten the consumer. For example, if a rushing to the floor to eloquently and essarily absent. requirement like this were currently in brilliantly explain, and it has been ac- The result was announced—yeas 99, effect, a consumer might today be nays 0, as follows: reading something like this: cepted. That is really what one prays for in this institution. I hope it sur- The result was announced—yeas 99, Your long-distance bill might have been nays 0, as follows: lower if your long-distance carrier’s reduc- vives the conference. I am sure that it [Rollcall Vote No. 130 Leg.] tion in access charge payments to your local will. carrier had been reflected in your long-dis- Basically, the theory of it was—and I YEAS—99 tance bill instead of being used to help pay think that the chairman understood it Abraham Feingold Lott for the schools’ and libraries’ wiring subsidy. as well as the Senator from North Da- Akaka Feinstein Lugar Then again, of course, the FCC, your long- Allard Ford Mack kota—that we should be honest with Ashcroft Frist McCain distance carrier, and your local carrier dis- consumers. A lot of people don’t know agree on whether your long-distance carrier Baucus Glenn McConnell is really lowering your bills as much as it what a lot of the prices are on the tele- Bennett Gorton Mikulski phone long-distance bill. Charges have Bingaman Graham Moseley-Braun might, and maybe someday we’ll know the Bond Gramm Moynihan answer—or maybe not. In the meantime, gone down from an average of 34 cents Boxer Grams Murkowski you’re being assessed a per-subscriber line per minute since deregulation of AT&T Breaux Grassley Murray charge which may or may not reflect the to about 16 cents per minute now. We Brownback Gregg Nickles real cost of your service, but the FCC’s should tell them when we bill them, if Bryan Hagel Reed working on it. Of course, if you live in the Bumpers Harkin Reid suburbs you should also know that a portion the prices go up on certain items, they Burns Hatch Robb of your bill goes to subsidize rural areas and also go down on others. Byrd Helms Roberts As an example, recently there was a Campbell Hollings Rockefeller another portion subsidizes low-income sub- Chafee Hutchinson Roth scribers. And be aware that starting next $1.5 billion access charge reduction, so Cleland Hutchison Santorum year there’s going to be another substantial actually the cost to the consumer on Coats Inhofe Sarbanes increase in some local phone bills as local their residential rate bill was going to Cochran Inouye Sessions phone companies start passing along the go down, but the companies only want- Collins Jeffords Shelby costs of implementing local number port- Conrad Johnson Smith (NH) ability, which may or may not accurately re- ed to show the part that had a $675 mil- Coverdell Kempthorne Smith (OR) flect all their true costs, which will other- lion increase—$675 million increase, Craig Kennedy Snowe $1.5 billion decrease; obviously, the net D’Amato Kerrey Specter wise be recovered by***. Daschle Kerry Stevens And on and on and on. of the decrease wins big time, but they DeWine Kohl Thomas I would also note that the Senator’s are not going to be told that. Dodd Kyl Thompson bill would require the FCC to examine I think this is a very useful amend- Domenici Landrieu Thurmond ment that the chairman of the Com- Dorgan Lautenberg Torricelli the bills of all telecommunications car- Durbin Leahy Warner riers. This would not only require the merce Committee has accepted. It isn’t Enzi Levin Wellstone FCC to investigate the bills of the over about reregulation, it is about treating Faircloth Lieberman Wyden 500 long-distance telephone companies consumers fairly. It is also, frankly, NOT VOTING—1 that currently exist; it would also re- about something which is very com- Biden quire them to investigate the bills ren- plicated that consumers don’t under- The bill (S. 1618), as amended, was dered by the thousands upon thousands stand, nor should they be expected to passed, as follows: of wireless paging, cellular telephone, understand, nor do many of us under- and PCS companies too. This would re- stand as we should—things like pre- S. 1618 quire an enormous expansion of the scribed interchange carrier charge, Be it enacted by the Senate and House of Rep- current FCC bureaucracy. called PICC. That is a very big thing in resentatives of the United States of America in Mr. President, you get the picture: all of this. Congress assembled, given the complexities of pricing off- Even where universal service pro- SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Anti-slam- sets in changing telephone industry ec- tects high-cost areas, the whole con- ming Amendments Act’’. onomics, this attempt at so-called cept of universal service is not under- TITLE I—SLAMMING truthful disclosure won’t work. It will stood by most voters or many in the SEC. 101. IMPROVED PROTECTION FOR CON- only confuse the consumer to no useful Congress itself. SUMERS. purpose and wind up involving the FCC We have to be fair. We have to level (a) VERIFICATION OF AUTHORIZATION.—Sub- and the FTC in neverending regulatory with them. We have to be straight and section (a) of section 258 of the Communica- micromanagement in an effort to as- honest. That is what this amendment tions Act of 1934 (47 U.S.C. 258) is amended to certain the unascertainable. attempts to do. That is one of the rea- read as follows:

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‘‘(a) PROHIBITION.— ‘‘(A) IN GENERAL.—A subscriber whose tele- there has been a violation of subsection (a), ‘‘(1) IN GENERAL.—No telecommunications phone exchange service or telephone toll it shall issue a decision or ruling deter- carrier or reseller of telecommunications service is changed in violation of the provi- mining the amount of the damages and pen- services shall submit or execute a change in sions of this section, or the procedures pre- alties at the earliest practicable date, but in a subscriber’s selection of a provider of tele- scribed under subsection (a), may elect to no event later than 90 days after the date on phone exchange service or telephone toll pay the carrier or reseller previously se- which it issued its decision or ruling under service except in accordance with this sec- lected by the subscriber for any such service subparagraph (A). tion and such verification procedures as the received after the change in full satisfaction ‘‘(3) DAMAGES AWARDED BY COMMISSION.—If Commission shall prescribe. of amounts due from the subscriber to the a violation of subsection (a) is found by the ‘‘(2) VERIFICATION.— carrier or reseller providing such service Commission, the Commission may award ‘‘(A) IN GENERAL.—In order to verify a sub- after the change. damages equal to the greater of $500 or the scriber’s selection of a telephone exchange ‘‘(B) PAYMENT RATE.—Payment for service amount of actual damages for each violation. service or telephone toll service provider under subparagraph (A) shall be at the rate The Commission may, in its discretion, in- under this section, the telecommunications for such service charged by the carrier or re- crease the amount of the award to an carrier or reseller shall, at a minimum, re- seller previously selected by the subscriber amount equal to not more than 3 times the quire the subscriber— concerned.’’. amount available under the preceding sen- ‘‘(i) to affirm that the subscriber is author- (c) RESOLUTION OF COMPLAINTS.—Section tence. ized to select the provider of that service for 258 of the Communications Act of 1934 (47 ‘‘(e) DISQUALIFICATION AND REINSTATE- the telephone number in question; U.S.C. 258) is amended by adding at the end MENT.— ‘‘(ii) to acknowledge the type of service to thereof the following: ‘‘(1) DISQUALIFICATION FROM CERTAIN AC- ‘‘(c) NOTICE TO SUBSCRIBER.—Whenever be changed as a result of the selection; TIVITIES BASED ON CONVICTION.— there is a change in a subscriber’s selection ‘‘(iii) to affirm the subscriber’s intent to ‘‘(A) DISQUALIFICATION OF PERSONS.—Sub- of a provider of telephone exchange service select the provider as the provider of that ject to subparagraph (C), any person con- or telephone toll service, the telecommuni- service; victed under section 2328 of title 18, United cations carrier or reseller selected shall no- ‘‘(iv) to acknowledge that the selection of States Code, in addition to any fines or im- tify the subscriber in a specific and unambig- prisonment under that section, may not the provider will result in a change in pro- uous writing, not more than 15 days after the carry out any activities covered by section viders of that service; and change is processed by the telecommuni- 214. ‘‘(v) to provide such other information as cations carrier or the reseller— ‘‘(B) DISQUALIFICATION OF COMPANIES.—Sub- the Commission considers appropriate for ‘‘(1) of the subscriber’s new carrier or re- ject to subparagraph (C), any company sub- the protection of the subscriber. seller; and stantially controlled by a person convicted ‘‘(B) ADDITIONAL REQUIREMENTS.—The pro- ‘‘(2) that the subscriber may request infor- under section 2328 of title 18, United States cedures prescribed by the Commission to mation regarding the date on which the Code, in addition to any fines or imprison- verify a subscriber’s selection of a provider change was agreed to and the name of the in- ment under that section, may not carry out shall— dividual who authorized the change. any activities covered by section 214. ‘‘(i) preclude the use of negative option ‘‘(d) RESOLUTION OF COMPLAINTS.— ‘‘(C) REINSTATEMENT.— marketing; ‘‘(1) PROMPT RESOLUTION.— ‘‘(i) IN GENERAL.—The Commission may ‘‘(ii) provide for a complete copy of ‘‘(A) IN GENERAL.—The Commission shall verification of a change in telephone ex- prescribe a period of time for a telecommuni- terminate the application of subparagraph change service or telephone toll service pro- cations carrier or reseller to resolve a com- (A) to a person, or subparagraph (B) to a vider in oral, written, or electronic form; plaint by a subscriber concerning an unau- company, if the Commission determines that ‘‘(iii) require the retention of such thorized change in the subscriber’s selection the termination would be in the public inter- verification in such manner and form and for of a provider of telephone exchange service est. such time as the Commission considers ap- or telephone toll service not in excess of 120 ‘‘(ii) EFFECTIVE DATE.—The termination of propriate; days after the telecommunications carrier or the applicability of subparagraph (A) to a ‘‘(iv) mandate that verification occur in reseller receives notice from the subscriber person, or subparagraph (B) to a company, the same language as that in which the of the complaint. A subscriber may at any under clause (i) may not take effect earlier change was solicited; and time pursue such a complaint with the Com- than 5 years after the date on which the ap- ‘‘(v) provide for verification to be made mission, in a State or local administrative or plicable subparagraph applied to the person available to a subscriber on request. judicial body, or elsewhere. or company concerned. ‘‘(2) CERTIFICATION REQUIREMENT.—Any per- ‘‘(3) ACTION BY UNAFFILIATED RESELLER NOT ‘‘(B) UNRESOLVED COMPLAINTS.—If a tele- IMPUTED TO CARRIER.—No telecommuni- communications carrier or reseller fails to son described in subparagraph (A) of para- cations carrier may be found to be in viola- resolve a complaint within the time period graph (1), or company described in subpara- tion of this section solely on the basis of a prescribed by the Commission, then, within graph (B) of that paragraph, not reinstated violation of this section by an unaffiliated 10 days after the end of that period, the tele- under subparagraph (C) of that paragraph reseller of that carrier’s services or facili- communications carrier or reseller shall— shall include with any application to the ties. ‘‘(i) notify the subscriber in writing of the Commission under section 214 a certification ‘‘(4) FREEZE OPTION PROTECTED.—The Com- subscriber’s right to file a complaint with that the person or company, as the case may mission may not take action under this sec- the Commission and of the subscriber’s be, is described in paragraph (1)(A) or (B), as tion to limit or inhibit a subscriber’s ability rights and remedies under this section; the case may be. ‘‘(f) CIVIL PENALTIES.— to require that any change in the sub- ‘‘(ii) inform the subscriber in writing of the ‘‘(1) IN GENERAL.—Unless the Commission scriber’s choice of a provider of inter- procedures prescribed by the Commission for determines that there are mitigating cir- exchange service not be effected unless the filing such a complaint; and cumstances, violation of subsection (a) is change is expressly and directly commu- ‘‘(iii) provide the subscriber a copy of any punishable by a forfeiture of not less than nicated by the subscriber to the subscriber’s evidence in the carrier’s or reseller’s posses- $40,000 for the first offense, and not less than existing telephone exchange service pro- sion showing that the change in the sub- $150,000 for each subsequent offense. vider. scriber’s provider of telephone exchange ‘‘(2) FAILURE TO NOTIFY TREATED AS VIOLA- ‘‘(5) APPLICATION TO WIRELESS.—This sec- service or telephone toll service was sub- TION OF SUBSECTION (a).—If a telecommuni- tion does not apply to a provider of commer- mitted or executed in accordance with the cations carrier or reseller fails to comply cial mobile service.’’. verification procedures prescribed under sub- with the requirements of subsection (b) LIABILITY FOR CHARGES.—Subsection (b) section (a). (d)(1)(B), then that failure shall be treated as of such section is amended— ‘‘(2) RESOLUTION BY COMMISSION.— a violation of subsection (a). (1) by striking ‘‘(b) LIABILITY FOR ‘‘(A) DETERMINATION OF VIOLATION.—The ‘‘(g) RECOVERY OF FORFEITURES.—The Com- CHARGES.—Any telecommunications carrier’’ Commission shall provide a simplified proc- mission may take such action as may be nec- and inserting the following: ess for resolving complaints under paragraph essary— ‘‘(b) LIABILITY FOR CHARGES.— (1)(B). The simplified procedure shall pre- ‘‘(1) to collect any forfeitures it imposes ‘‘(1) IN GENERAL.—Any telecommunications clude the use of interrogatories, depositions, under this section; and carrier or reseller of telecommunications discovery, or other procedural techniques ‘‘(2) on behalf of any subscriber, to collect services’’; that might unduly increase the expense, for- any damages awarded the subscriber under (2) by designating the second sentence as mality, and time involved in the process. this section. paragraph (3) and inserting at the beginning The Commission shall determine whether ‘‘(h) CHANGE INCLUDES INITIAL SELECTION.— of such paragraph, as so designated, the fol- there has been a violation of subsection (a) For purposes of this section, the initiation of lowing: and shall issue a decision or ruling at the service to a subscriber by a telecommuni- ‘‘(3) CONSTRUCTION OF REMEDIES.—’’; and earliest date practicable, but in no event cations carrier or a reseller shall be treated (3) by inserting after paragraph (1), as des- later than 150 days after the date on which it as a change in a subscriber’s selection of a ignated by paragraph (1) of this subsection, received the complaint. provider of telephone exchange service or the following: ‘‘(B) DETERMINATION OF DAMAGES AND PEN- telephone toll service.’’. ‘‘(2) SUBSCRIBER PAYMENT OPTION.— ALTIES.—If the Commission determines that (d) CRIMINAL PENALTY.—

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(1) IN GENERAL.—Chapter 113A of title 18, violation occurred or is occurring, and proc- (A) A list of the 10 telecommunications United States Code, is amended by adding at ess in such cases may be served in any dis- carriers or resellers that, during the 1-year the end thereof the following: trict in which the defendant is an inhabitant period ending on the date of the report, were ‘‘§ 2328. Slamming or where the defendant may be found. subject to the highest number of complaints ‘‘Any person who submits or executes a ‘‘(5) INVESTIGATORY POWERS.—For purposes of having executed unauthorized changes of change in a provider of telephone exchange of bringing any civil action under this sub- subscribers from their selected providers of service or telephone toll service not author- section, nothing in this section shall prevent telephone exchange service or telephone toll ized by the subscriber in willful violation of the attorney general of a State, or an official service when compared with the total num- the provisions of section 258 of the Commu- or agency designated by a State, from exer- ber of subscribers served by such carriers or nications Act of 1934 (47 U.S.C. 258), or the cising the powers conferred on the attorney resellers. procedures prescribed under section 258(a) of general or such official by the laws of such (B) The telecommunications carriers or re- that Act— State to conduct investigations or to admin- sellers, if any, assessed forfeitures under sec- ‘‘(A) shall be fined in accordance with this ister oaths or affirmations or to compel the tion 258(f) of the Communications Act of 1934 title, imprisoned not more than 1 year, or attendance of witnesses or the production of (as added by subsection (d)), during that pe- both; but documentary and other evidence. riod, including the amount of each such for- ‘‘(B) if previously convicted under this ‘‘(j) STATE LAW NOT PREEMPTED.— feiture and whether the forfeiture was as- paragraph at the time of a subsequent of- ‘‘(1) IN GENERAL.—Nothing in this section sessed as a result of a court judgment or an fense, shall be fined in accordance with this or in the regulations prescribed under this order of the Commission or was secured pur- title, imprisoned not more than 5 years, or section shall preempt any State law that im- suant to a consent decree. both, for such subsequent offense.’’. poses more restrictive requirements, regula- SEC. 102. ADDITIONAL ENFORCEMENT AUTHOR- (2) CONFORMING AMENDMENT.—The chapter tions, damages, costs, or penalties on ITY. analysis for chapter 113A of title 18, United changes in a subscriber’s service or selection Section 504 of the Communications Act of States Code, is amended by adding at the end of a provider of telephone exchange service 1934 (47 U.S.C. 504) is amended by adding at thereof the following: or telephone toll services than are imposed the end thereof the following: ‘‘Notwith- under this section. ‘‘2328. Slamming’’. standing the preceding sentence, the failure ‘‘(2) EFFECT ON STATE COURT PRO- (e) STATE RIGHT-OF-ACTION.—Section 258 of of a person to pay a forfeiture imposed for CEEDINGS.—Nothing contained in this section the Communications Act of 1934 (47 U.S.C. violation of section 258(a) may be used as a shall be construed to prohibit an authorized 258), as amended by subsection (c), is amend- basis for revoking, denying, or limiting that State official from proceeding in State court ed by adding at the end thereof the fol- person’s operating authority under section on the basis of an alleged violation of any lowing: 214 or 312.’’. ‘‘(i) ACTIONS BY STATES.— general civil or criminal statute of such ‘‘(1) IN GENERAL.—The attorney general of State or any specific civil or criminal stat- SEC. 103. OBLIGATIONS OF BILLING AGENTS. a State, or an official or agency designated ute of such State not preempted by this sec- (a) IN GENERAL.—Part I of title II of the by a State— tion. Communications Act of 1934 (47 U.S.C. 201 et ‘‘(A) may bring an action on behalf of its ‘‘(3) LIMITATIONS.—Whenever a complaint seq.) is amended by adding at the end thereof residents to recover damages on their behalf is pending before the Commission involving the following: under subsection (d)(3); a violation of regulations prescribed under this section, no State may, during the pend- ‘‘SEC. 231. OBLIGATIONS OF TELEPHONE BILLING ‘‘(B) may bring a criminal action to en- AGENTS. force this section under section 2328 of title ency of such complaint, institute a civil ac- 18, United States Code; and tion against any defendant party to the com- ‘‘(a) IN GENERAL.—A billing agent, includ- ‘‘(C) may bring an action for the assess- plaint for any violation affecting the same ing a telecommunications carrier or reseller, ment of civil penalties under subsection (f), subscriber alleged in the complaint. who issues a bill for telephone exchange and for purposes of such an action, sub- ‘‘(k) REPORTS ON COMPLAINTS.— service or telephone toll service to a sub- sections (d)(3) and (f)(1) shall be applied by ‘‘(1) REPORTS REQUIRED.—Each tele- scriber shall— substituting ‘the court’ for ‘the Commis- communications carrier or reseller shall sub- ‘‘(1) state on the bill— sion’. mit to the Commission, quarterly, a report ‘‘(A) the name and toll-free telephone num- ber of any telecommunications carrier or re- ‘‘(2) EXCLUSIVE JURISDICTION OF FEDERAL on the number of complaints of unauthorized seller for the subscriber’s telephone ex- COURTS.—The district courts of the United changes in providers of telephone exchange States, the United States courts of any terri- service or telephone toll service that are change service and telephone toll service; tory, and the District Court of the United submitted to the carrier or reseller by its ‘‘(B) the identity of the presubscribed car- States for the District of Columbia shall subscribers. Each report shall specify each rier or reseller; and have exclusive jurisdiction over all actions provider of service complained of and the ‘‘(C) the charges associated with each car- brought under this section. When a State number of complaints relating to such pro- rier’s or reseller’s provision of telecommuni- brings an action under this section, the vider. cations service during the billing period; court in which the action is brought has ‘‘(2) LIMITATION ON SCOPE.—The Commis- ‘‘(2) for services other than those described pendant jurisdiction of any claim brought sion may not require any information in a in paragraph (1), state on a separate page— under the law of that State. Upon proper ap- report under paragraph (1) other than the in- ‘‘(A) the name of any company whose plication, such courts shall also have juris- formation specified in the second sentence of charges are reflected on the subscriber’s bill; diction to issue writs of mandamus, or orders that paragraph. ‘‘(B) the services for which the subscriber affording like relief, commanding the defend- ‘‘(3) UTILIZATION.—The Commission shall is being charged by that company; ant to comply with the provisions of this use the information submitted in reports ‘‘(C) the charges associated with that com- section or regulations prescribed under this under paragraph (1) to identify telecommuni- pany’s provision of service during the billing section, including the requirement that the cations carriers or resellers that engage in period; defendant take such action as is necessary to patterns and practices of unauthorized ‘‘(D) the toll-free telephone number that remove the danger of such violation. Upon a changes in providers of telephone exchange the subscriber may call to dispute that com- proper showing, a permanent or temporary service or telephone toll service. pany’s charges; and ‘‘(E) that disputes about that company’s injunction or restraining order shall be ‘‘(l) DEFINITIONS.—For purposes of this sec- granted without bond. tion: charges will not result in disruption of tele- phone exchange service or telephone toll ‘‘(3) RIGHTS OF COMMISSION.—The State ‘‘(1) ATTORNEY GENERAL.—The term ‘attor- shall serve prior written notice of any such ney general’ means the chief legal officer of service; and civil action upon the Commission and pro- a State. ‘‘(3) show the mailing address of any tele- communications carrier or reseller or other vide the Commission with a copy of its com- ‘‘(2) SUBSCRIBER.—The term ‘subscriber’ plaint, except in any case where such prior means the person named on the billing state- company whose charges are reflected on the notice is not feasible, in which case the ment or account, or any other person au- bill. State shall serve such notice immediately thorized to make changes in the providers of ‘‘(b) KNOWING INCLUSION OF UNAUTHORIZED upon instituting such action. The Commis- telephone exchange service or telephone toll OR IMPROPER CHARGES PROHIBITED.—A billing sion shall have the right— service.’’. agent may not submit charges for tele- ‘‘(A) to intervene in the action; (f) REPORT ON CARRIERS EXECUTING UNAU- communications services or other services to ‘‘(B) upon so intervening, to be heard on all THORIZED CHANGES OF TELEPHONE SERVICE.— a subscriber if the billing agent knows, or matters arising therein; and (1) REPORT.—Not later than October 31, should know, that the subscriber did not au- ‘‘(C) to file petitions for appeal. 1998, the Federal Communications Commis- thorize the charges or that the charges are ‘‘(4) VENUE; SERVICE OF PROCESS.—Any civil sion shall submit to Congress a report on un- otherwise improper.’’. action brought under this subsection in a authorized changes of subscribers’ selections (b) EFFECTIVE DATE.—The amendment district court of the United States may be of providers of telephone exchange service or made by subsection (a) applies to bills to brought in the district wherein the sub- telephone toll service. subscribers for telecommunications services scriber or defendant is found or is an inhab- (2) ELEMENTS.—The report shall include sent to subscribers more than 60 days after itant or transacts business or wherein the the following: the date of enactment of this Act.

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SEC. 104. FCC JURISDICTION OVER BILLING telecommunications carrier operating or ‘‘(C) FIRST REVIEW.—The Commission may SERVICE PROVIDERS. seeking to operate as a switchless reseller not first review the activities of a carrier Part III of title II of the Communications shall furnish to the Commission a surety under subparagraph (A) before the date that Act of 1934 (47 U.S.C. 271 et seq.) is amended bond in a form and an amount determined by is 3 years after the date on which the carrier by adding at the end thereof the following: the Commission to be satisfactory for pur- furnishes the bond concerned under this sec- ‘‘SEC. 277. JURISDICTION OVER BILLING SERVICE poses of this section. tion. PROVIDERS. ‘‘(b) SURETY.—A surety bond furnished pur- ‘‘(2) RETURN.—The Commission may return ‘‘The Commission has jurisdiction to as- suant to this section shall be issued by a sur- a surety bond as a result of a review under sess and recover any penalty imposed under ety corporation that meets the requirements this subsection. title V of this Act against an entity not a of section 9304 of title 31, United States Code. ‘‘(h) DEFINITIONS.—In this section: telecommunications carrier or reseller to ‘‘(c) CLAIMS AGAINST BOND.—A surety bond ‘‘(1) BILLING AGENT.—The term ‘billing the extent that entity provides billing serv- furnished under this section shall be avail- agent’ means any entity (other than a tele- ices for the provision of telecommunications able to pay the following: communications carrier) that provides bill- services, or for services other than tele- ‘‘(1) Any fine or penalty imposed against ing services for services provided by a tele- communications services that appear on a the carrier concerned while operating as a communications carrier, or other services, if subscriber’s telephone bill for telecommuni- switchless reseller as a result of a violation charges for such services appear on the bill cations services, but the Commission may of the provisions of section 258 (relating to of a subscriber for telecommunications serv- assess and recover such penalties only if that unauthorized changes in subscriber selec- ices. tions to telecommunications carriers). entity knowingly or willfully violates the ‘‘(2) SWITCHLESS RESELLER.—The term provisions of this Act or any rule or order of ‘‘(2) Any penalty imposed against the car- ‘switchless reseller’ means a telecommuni- rier under this section. the Commission.’’. cations carrier that resells the switched tele- ‘‘(3) Any other fine or penalty, including a SEC. 105. REPORT; STUDY. communications service of another tele- forfeiture penalty, imposed against the car- (a) IN GENERAL.—The Federal Communica- communications carrier without the use of rier under this Act. tions Commission shall issue a report within any switching facilities under its own owner- ‘‘(d) RESIDENT AGENT.—A telecommuni- 180 days after the date of enactment of this cations carrier operating as a switchless re- ship or control. Act on the telemarketing and other solicita- ‘‘(i) DETARIFFING AUTHORITY NOT IM- seller that is not domiciled in the United tion practices used by telecommunications PAIRED.—Nothing in this section is intended States shall designate a resident agent in the to prohibit the Commission from adopting carriers or resellers or their agents or em- United States for receipt of service of judi- rules providing for the permissive detariffing ployees for the purpose of changing the tele- cial and administrative process, including of long-distance telephone companies, if the phone exchange service or telephone toll subpoenas. Commission determines that such permissive service provider of a subscriber. ‘‘(e) PENALTIES.— detariffing would otherwise serve the public (b) SPECIFIC ISSUES.—As part of the report ‘‘(1) SUSPENSION.—The Commission may required under subsection (a), the Commis- suspend the right of any telecommunications interest, convenience, and necessity.’’. sion shall include findings on— carrier to operate as a switchless reseller— TITLE III—SPAMMING (1) the extent to which imposing penalties ‘‘(A) for failure to furnish or maintain the SEC. 301. REQUIREMENTS RELATING TO TRANS- on telemarketers would deter unauthorized surety bond required by subsection (a); MISSIONS OF UNSOLICITED COM- changes in a subscriber’s selection of a pro- ‘‘(B) for failure to designate an agent as re- MERCIAL ELECTRONIC MAIL. vider of telephone exchange service or tele- quired by subsection (d); or (a) INFORMATION TO BE INCLUDED IN TRANS- phone toll service; ‘‘(C) for a violation of section 258 while op- MISSIONS.— (2) the need for rules requiring third-party erating as a switchless reseller. (1) IN GENERAL.—A person who transmits verification of changes in a subscriber’s se- ‘‘(2) ADDITIONAL PENALTIES.—In addition to an unsolicited commercial electronic mail lection of such a provider and independent suspension under paragraph (1), any tele- message shall cause to appear in each such third party administration of presubscribed communications carrier operating as a electronic mail message the information interexchange carrier changes; and switchless reseller that fails to furnish or specified in paragraph (2). (3) whether wireless carriers should con- maintain a surety bond under this section (2) COVERED INFORMATION.—The following tinue to be exempt from the requirements shall be subject to any forfeiture provided information shall appear at the beginning of imposed by section 258 of the Communica- for under sections 503 and 504. the body of an unsolicited commercial elec- tions Act of 1934 (47 U.S.C. 258). ‘‘(f) BILLING SERVICES FOR UNBONDED tronic mail message under paragraph (1): (c) RULEMAKING.—If the Commission deter- SWITCHLESS RESELLERS.— (A) The name, physical address, electronic mines that particular telemarketing or other ‘‘(1) PROHIBITION.—No common carrier or mail address, and telephone number of the solicitation practices are being used with the billing agent may provide billing services for person who initiates transmission of the intention to mislead, deceive, or confuse sub- any services provided by a switchless reseller message. scribers and that they are likely to mislead, unless the switchless reseller— (B) The name, physical address, electronic deceive, or confuse subscribers, then the ‘‘(A) has furnished the bond required by mail address, and telephone number of the Commission shall initiate a rulemaking to subsection (a); and person who created the content of the mes- prohibit the use of such practices within 120 ‘‘(B) in the case of a switchless reseller not sage, if different from the information under days after the completion of its report. domiciled in the United States, has des- subparagraph (A). SEC. 106. DISCLOSURE OF CERTAIN RECORDS ignated an agent under subsection (d). (C) A statement that further transmissions FOR INVESTIGATIONS OF TELE- ‘‘(2) PENALTY.— of unsolicited commercial electronic mail to MARKETING FRAUD. ‘‘(A) PENALTY.—Any common carrier or the recipient by the person who initiates Section 2703(c)(1)(B) of title 18, United billing agent that knowingly and willfully transmission of the message may be stopped States Code, is amended by— provides billing services to a switchless re- at no cost to the recipient by sending a reply (1) striking ‘‘or’’ at the end of clause (ii); seller in violation of paragraph (1) shall be to the originating electronic mail address (2) striking the period at the end of clause liable to the United States for a civil penalty with the word ‘‘remove’’ in the subject line. (iii) and inserting ‘‘; or’’; and not to exceed $50,000. (b) ROUTING INFORMATION.—All Internet (3) adding at the end the following: ‘‘(B) APPLICABILITY.—For purposes of sub- routing information contained within or ac- ‘‘(iv) submits a formal written request rel- paragraph (A), the provision of services to companying an electronic mail message de- evant to a law enforcement investigation any particular reseller in violation of para- scribed in subsection (a) must be accurate, concerning telemarketing fraud for the graph (1) shall constitute a separate viola- valid according to the prevailing standards name, address, and place of business of a sub- tion of that paragraph. for Internet protocols, and accurately reflect scriber or customer of such provider, which ‘‘(3) COMMISSION AUTHORITY TO ASSESS AND message routing. subscriber or customer is engaged in tele- COLLECT PENALTIES.—The Commission shall (c) EFFECTIVE DATE.—The requirements in marketing (as such term is in section 2325 of have the authority to assess and collect any this section shall take effect 30 days after this title).’’. penalty provided for under this subsection the date of enactment of this Act. TITLE II—SWITCHLESS RESELLERS upon a finding by the Commission of a viola- SEC. 302. FEDERAL OVERSIGHT OF UNSOLICITED tion of paragraph (1). COMMERCIAL ELECTRONIC MAIL. SEC. 201. REQUIREMENT FOR SURETY BONDS (a) TRANSMISSIONS.— FROM TELECOMMUNICATIONS CAR- ‘‘(g) RETURN OF BONDS.— RIERS OPERATING AS SWITCHLESS ‘‘(1) REVIEW.— (1) IN GENERAL.—Upon notice from a person RESELLERS. ‘‘(A) IN GENERAL.—The Commission may of the person’s receipt of electronic mail in Part I of title II of the Communications from time to time review the activities of a violation of a provision of section 301 or 305, Act of 1934 (47 U.S.C. 201 et seq.), as amended telecommunications carrier that has fur- the Commission— by section 103 of this Act, is amended by add- nished a surety bond under this section for (A) may conduct an investigation to deter- ing at the end the following: purposes of determining whether or not to mine whether or not the electronic mail was ‘‘SEC. 232. SURETY BONDS FROM TELECOMMUNI- retain the bond under this section. transmitted in violation of such provision; CATIONS CARRIERS OPERATING AS ‘‘(B) STANDARDS OF REVIEW.—The Commis- and SWITCHLESS RESELLERS. sion shall prescribe any standards applicable (B) if the Commission determines that the ‘‘(a) REQUIREMENT.—Under such regula- to its review of activities under this para- electronic mail was transmitted in violation tions as the Commission shall prescribe, any graph. of such provision, may—

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(i) impose upon the person initiating the trict court of the United States may be (c) INTERACTIVE COMPUTER SERVICE PRO- transmission a civil fine in an amount not to brought in the district in which the defend- VIDER DEFINED.—In this section, the term exceed $15,000; ant is found, is an inhabitant, or transacts ‘‘interactive computer service provider’’ has (ii) commence in a district court of the business or wherever venue is proper under the meaning given the term ‘‘interactive United States a civil action to recover a civil section 1391 of title 28, United States Code. computer service’’ in section 230(e)(2) of the penalty in an amount not to exceed $15,000 Process in such an action may be served in Communications Act of 1934 (47 U.S.C. against the person initiating the trans- any district in which the defendant is an in- 230(e)(2)). mission; habitant or in which the defendant may be SEC. 305. RECEIPT OF TRANSMISSIONS BY PRI- (iii) commence an action in a district court found. VATE PERSONS. of the United States a civil action to seek in- (f) ACTIONS BY OTHER STATE OFFICIALS.— (a) TERMINATION OF TRANSMISSIONS.—A per- junctive relief; or Nothing in this section may be construed to son who receives from any other person an (iv) proceed under any combination of the prohibit an authorized State official from electronic mail message requesting the ter- authorities set forth in clauses (i), (ii), and proceeding in State court on the basis of an mination of further transmission of commer- (iii). alleged violation of any civil or criminal cial electronic mail shall cease the initiation statute of the State concerned. (2) DEADLINE.—The Commission may not of further transmissions of such mail to the (g) DEFINITIONS.—In this section: take action under paragraph (1)(B) with re- person making the request. (1) ATTORNEY GENERAL.—The term ‘‘attor- (b) AFFIRMATIVE AUTHORIZATION OF TRANS- spect to a transmission of electronic mail ney general’’ means the chief legal officer of MISSIONS.— more than 2 years after the date of the trans- a State. (1) IN GENERAL.—Subject to paragraph (2), a mission. (2) STATE.—The term ‘‘State’’ means any person may authorize another person to ini- (b) ADMINISTRATION.— State of the United States, the District of tiate transmissions of unsolicited commer- (1) NOTICE BY ELECTRONIC MEANS.—The Commission shall establish an Internet web Columbia, Puerto Rico, Guam, American cial electronic mail to the person. site with an electronic mail address for the Samoa, the United States Virgin Islands, the (2) AVAILABILITY OF TERMINATION.—A per- receipt of notices under subsection (a). Commonwealth of the Northern Mariana Is- son initiating transmissions of electronic lands, the Republic of the Marshall Islands, mail under paragraph (1) shall include, with (2) INFORMATION ON ENFORCEMENT.—The Commission shall make available through the Federated States of Micronesia, the Re- each transmission of such mail to a person the Internet web site established under para- public of Palau, and any possession of the authorizing the transmission under that graph (1) information on the actions taken United States. paragraph, the information specified in sec- by the Commission under subsection SEC. 304. INTERACTIVE COMPUTER SERVICE tion 301(a)(2)(C). PROVIDERS. (c) CONSTRUCTIVE AUTHORIZATION OF (a)(1)(B). (a) EXEMPTION FOR CERTAIN TRANS- TRANSMISSIONS.— (3) ASSISTANCE OF OTHER FEDERAL AGEN- MISSIONS.— (1) IN GENERAL.—Subject to paragraphs (2) CIES.—Other Federal agencies may assist the (1) EXEMPTION.—Section 301 or 305 shall not and (3), a person who secures a good or serv- Commission in carrying out its duties under apply to a transmission of electronic mail by ice from, or otherwise responds electroni- this section. an interactive computer service provider un- cally to, an offer in a transmission of unso- SEC. 303. ACTIONS BY STATES. less— licited commercial electronic mail shall be (a) IN GENERAL.—Whenever the attorney (A) the provider initiates the transmission; deemed to have authorized the initiation of general of a State has reason to believe that or transmissions of unsolicited commercial the interests of the residents of the State (B) the transmission is not made to its own electronic mail from the person who initi- have been or are being threatened or ad- customers. ated the transmission. versely affected because any person is engag- (2) CONSTRUCTION.—Nothing in this sub- (2) NO AUTHORIZATION FOR REQUESTS FOR ing in a pattern or practice of the trans- section may be construed to require an inter- TERMINATION.—An electronic mail request to mission of electronic mail in violation of a active computer service provider to transmit cease the initiation of further transmissions provision of section 301 or 305, the State, as or otherwise deliver any electronic mail of electronic mail under subsection (a) shall parens patriae, may bring a civil action on message. not constitute authorization for the initi- behalf of its residents to enjoin such trans- (b) ACTIONS BY INTERACTIVE COMPUTER ation of further electronic mail under this mission, to enforce compliance with such SERVICE PROVIDERS.— subsection. provision, to obtain damages or other com- (1) IN GENERAL.—In addition to any other pensation on behalf of its residents, or to ob- (3) AVAILABILITY OF TERMINATION.—A per- remedies available under any other provision tain such further and other relief as the son initiating transmissions of electronic of law, any interactive computer service pro- court considers appropriate. mail under paragraph (1) shall include, with vider adversely affected by a violation of a (b) NOTICE TO COMMISSION.— each transmission of such mail to a person provision of section 301 or 305 may, within 1 (1) NOTICE.—The State shall serve prior deemed to have authorized the transmission written notice of any civil action under this year after discovery of the violation, bring a under that paragraph, the information speci- section on the Commission and provide the civil action in a district court of the United fied in section 301(a)(2)(C). Commission with a copy of its complaint, ex- States against a person who violates such (d) EFFECTIVE DATE OF TERMINATION RE- cept that if it is not feasible for the State to provision. Such an action may be brought to QUIREMENTS.—Subsections (a), (b)(2), and (c)(3) shall take effect 30 days after the date provide such prior notice, the State shall enjoin the violation, to enforce compliance of enactment of this Act. serve written notice immediately on insti- with such provision, to obtain damages, or to tuting such action. obtain such further and other relief as the SEC. 306. DEFINITIONS. court considers appropriate. In this title: (2) RIGHTS OF COMMISSION.—On receiving a notice with respect to a civil action under (2) DAMAGES.— (1) COMMERCIAL ELECTRONIC MAIL.—The paragraph (1), the Commission shall have the (A) IN GENERAL.—The amount of damages term ‘‘commercial electronic mail’’ means right— in an action under this subsection for a vio- any electronic mail that— (A) to intervene in the action; lation specified in paragraph (1) may not ex- (A) contains an advertisement for the sale (B) upon so intervening, to be heard in all ceed $15,000 per violation. of a product or service; matters arising therein; and (B) RELATIONSHIP TO OTHER DAMAGES.— (B) contains a solicitation for the use of a (C) to file petitions for appeal. Damages awarded for a violation under this telephone number, the use of which connects (c) ACTIONS BY COMMISSION.—Whenever a subsection are in addition to any other dam- the user to a person or service that adver- civil action has been instituted by or on be- ages awardable for the violation under any tises the sale of or sells a product or service; half of the Commission for violation of a pro- other provision of law. or vision of section 301 or 305, no State may, (C) COST AND FEES.—The court may, in (C) promotes the use of or contains a list of during the pendency of such action, institute issuing any final order in any action brought one or more Internet sites that contain an a civil action under this section against any under paragraph (1), award costs of suit, rea- advertisement referred to in subparagraph defendant named in the complaint in such sonable costs of obtaining service of process, (A) or a solicitation referred to in subpara- action for violation of any provision as al- reasonable attorney fees, and expert witness graph (B). leged in the complaint. fees for the prevailing party. (2) COMMISSION.—The term ‘‘Commission’’ (d) CONSTRUCTION.—For purposes of bring- (3) VENUE; SERVICE OF PROCESS.—Any civil means the Federal Trade Commission. ing a civil action under subsection (a), noth- action brought under paragraph (1) in a dis- (3) the term ‘‘initiate the transmission’’ in ing in this section shall prevent an attorney trict court of the United States may be the case of an electronic mail message general from exercising the powers conferred brought in the district in which the defend- means to originate the electronic mail mes- on the attorney general by the laws of the ant or in which the interactive computer sage, and does not encompass any inter- State concerned to conduct investigations or service provider is located, is an inhabitant, vening interactive computer service whose to administer oaths or affirmations or to or transacts business or wherever venue is facilities may have been used to relay, han- compel the attendance of witnesses or the proper under section 1391 of title 28, United dle, or otherwise retransmit the electronic production of documentary or other evi- States Code. Process in such an action may mail message, unless the intervening inter- dence. be served in any district in which the defend- active computer service provider knowingly (e) VENUE; SERVICE OF PROCESS.—Any civil ant is an inhabitant or in which the defend- and intentionally retransmits any electronic action brought under subsection (a) in a dis- ant may be found. mail in violation of section 301 or 305.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00070 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4709 TITLE IV—MISCELLANEOUS PROVISIONS seq.), the medicaid program under title XIX (7) The National Association of Regulatory SEC. 401. ENFORCEMENT OF REGULATIONS RE- of such Act (42 U.S.C. 1396 et seq.), the State Utility Commissioners adopted a resolution GARDING CITIZENS BAND RADIO children’s health insurance program under in February 1998 supporting action by the EQUIPMENT. title XXI of such Act (42 U.S.C. 1397aa et Federal Communications Commission and Section 302 of the Communications Act of seq.), and the Civilian Health and Medical the Federal Trade Commission to protect 1934 (47 U.S.C. 302) is amended by adding at Program of the Uniformed Services under consumers of telecommunications services the end the following: chapter 55 of title 10, and the term ‘health by assuring accurate cost reporting and bill- ‘‘(f)(1) Except as provided in paragraph (2), care provider’ means a physician or other ing practices by telecommunications car- a State or local government may enforce the health care professional.’’. riers nationwide. following regulations of the Commission (b) RECORDING AND MONITORING OF COMMU- (b) REQUIREMENTS.—Any telecommuni- under this section: NICATIONS WITH HEALTH INSURERS.— cations carrier that includes any change re- ‘‘(A) A regulation that prohibits a use of (1) COMMUNICATION WITHOUT RECORDING OR sulting from Federal regulatory action shall citizens band radio equipment not authorized MONITORING.—Notwithstanding any other specify in such bill— by the Commission. provision of law, a health insurance issuer, (1) the reduction in charges or fees for each ‘‘(B) A regulation that prohibits the unau- health plan, or health care provider that no- class of customers (including customers of thorized operation of citizens band radio tifies any customer of its intent to record or residential basic service, customers of other equipment on a frequency between 24 MHz monitor any communication with such cus- residential services, small business cus- and 35 MHz. tomer shall provide the customer the option tomers, and other business customers) re- ‘‘(2) Possession of a station license issued to conduct the communication without being sulting from any regulatory action of the by the Commission pursuant to section 301 in recorded or monitored by the health insur- Federal Communications Commission; any radio service for the operation at issue ance issuer, health plan, or health care pro- (2) total monthly charges, usage charges, shall preclude action by a State or local gov- vider. percentage charges, and premiums for each ernment under this subsection. (2) DEFINITIONS.—In this subsection: class of customers (including customers of ‘‘(3) The Commission shall provide tech- (A) HEALTH CARE PROVIDER.—The term residential basic service, customers of other nical guidance to State and local govern- ‘‘health care provider’’ means a physician or residential services, small business cus- ments regarding the detection and deter- other health care professional. tomers, and other business customers); mination of violations of the regulations (B) HEALTH INSURANCE ISSUER.—The term (3) notify consumers one billing cycle in specified in paragraph (1). ‘‘health insurance issuer’’ has the meaning advance of any changes in existing charges ‘‘(4)(A) In addition to any other remedy au- given that term in section 733 of the Em- or imposition of new charges; and thorized by law, a person affected by the de- ployee Retirement Income Security Act of (4) disclose, upon subscription, total cision of a State or local government enforc- 1974 (29 U.S.C. 1191b). monthly charges, usage charges, percentage ing a regulation under paragraph (1) may (C) HEALTH PLAN.—The term ‘‘health plan’’ charges, and premiums for each class of cus- submit to the Commission an appeal of the means— tomers (including residential basic service, decision on the grounds that the State or (i) a group health plan, as defined in sec- customers of other residential service, small local government, as the case may be, acted tion 733 of the Employee Retirement Income business customers, and other business cus- outside the authority provided in this sub- Security Act of 1974 (29 U.S.C. 1191b); tomers). section. (ii) an individual or self-insured health The PRESIDING OFFICER. Who ‘‘(B) A person shall submit an appeal on a plan; decision of a State or local government to seeks recognition? (iii) the medicare program under title Mr. LEAHY addressed the Chair. the Commission under this paragraph, if at XVIII of the Social Security Act (42 U.S.C. all, not later than 30 days after the date on The PRESIDING OFFICER. The Sen- 1395 et seq.); ator from Vermont. which the decision by the State or local gov- (iv) the medicaid program under title XIX ernment becomes final. of such Act (42 U.S.C. 1396 et seq.); f ‘‘(C) The Commission shall make a deter- (v) the State children’s health insurance mination on an appeal submitted under sub- THE EXECUTIVE CALENDAR program under title XXI of such Act (42 paragraph (B) not later than 180 days after U.S.C. 1397aa et seq.); and Mr. LEAHY. Mr. President, I was just its submittal. (vi) the Civilian Health and Medical Pro- thinking, while we are all here, I know ‘‘(D) If the Commission determines under gram of the Uniformed Services under chap- we continue to have a number of names subparagraph (C) that a State or local gov- ter 55 of title 10, United States Code. ernment has acted outside its authority in on the Executive Calendar on nomina- enforcing a regulation, the Commission shall SEC. 403. CONSUMER TRUTH IN BILLING DISCLO- tions, and we have, let’s see, nine reverse the decision enforcing the regula- SURE ACT. judges, all of whom have been voted tion. (a) FINDINGS.—Congress makes the fol- out of the Judiciary Committee, I ‘‘(5) The enforcement of a regulation by a lowing findings: think in most cases unanimously. We State or local government under paragraph (1) Billing practices by telecommuni- have close to 100 vacancies in the Fed- cations carriers may not reflect accurately (1) in a particular case shall not preclude the eral judiciary. Among those who are on Commission from enforcing the regulation in the cost or basis of the additional tele- that case concurrently. communications services and benefits that here is Sonia Sotomayor of the second ‘‘(6) Nothing in this subsection shall be consumers receive as a result of the enact- circuit. This has been out for some construed to diminish or otherwise affect the ment of the Telecommunications Act of 1996 time now. She has been before the Sen- jurisdiction of the Commission under this (Public Law 104–104) and other Federal regu- ate for a couple of years now, I believe. section over devices capable of interfering latory actions taken since the enactment of This is a circuit where the Chief Judge with radio communications.’’. that Act. has declared a judicial emergency. I be- SEC. 402. MODIFICATION OF EXCEPTION TO PRO- (2) The Telecommunications Act of 1996 lieve it is the first time a circuit court HIBITION ON INTERCEPTION OF was not intended to allow providers of tele- COMMUNICATIONS. communications services to misrepresent to has declared a judicial emergency, I (a) MODIFICATION.—Section 2511(2)(d) of customers the costs of providing services or think maybe the first time in history title 18, United States Code, is amended by the services provided. that they have done that. adding at the end the following: ‘‘Notwith- (3) Certain providers of telecommuni- But what that means is that if you go standing the previous sentence, it shall not cations services have established new, spe- before the second circuit, you don’t be unlawful under this chapter for a person cific charges on customer bills commonly even have a panel made up of second not acting under the color of law to inter- known as ‘‘line-item charges’’. circuit judges. You have one second cept a wire, oral, or electronic communica- (4) Certain providers of telecommuni- circuit court of appeals judge and two tion between a health insurance issuer or cations services have described such charges health plan and a subscriber of such issuer or as ‘‘Federal Universal Service Fees’’ or simi- visiting judges. And yet we have two plan, or between a health care provider and lar fees. nominees for the second circuit on the a patient, only if all of the parties to the (5) Such charges have generated significant Executive Calendar, both of whom communication have given prior express con- confusion among customers regarding the could be voted on in the next 5 min- sent to such interception. For purposes of nature of and scope of universal service and utes—they went out of the Judiciary the preceding sentence, the term ‘health in- of the fees associated with universal service. Committee very easily—and it would surance issuer’ has the meaning given that (6) The State of New York is considering stop this judicial emergency. term in section 733 of the Employee Retire- action to protect consumers by requiring The reason I mention this, Mr. Presi- ment Income Security Act of 1974 (29 U.S.C. telecommunications carriers to disclose dent, is that with 100 vacancies in the 1191b), the term ‘health plan’ means a group fully in the bills of all classes of customers health plan, as defined in such section of the fee increases and fee reductions resulting Federal judiciary, nearly 100 vacancies, such Act, an individual or self-insured health from the enactment of the Telecommuni- we are finding around the country that plan, the medicare program under title XVIII cations Act of 1996 and other regulatory ac- prosecutors have to lower charges; of the Social Security Act (42 U.S.C. 1395 et tions taken since the enactment of that Act. they have to nol-pros cases; they have

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00071 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4710 CONGRESSIONAL RECORD — SENATE May 12, 1998 to plea bargain because they cannot Nobody is going to vote them down. bate on the bill equally divided in the give a speedy trial. So the police go They are all going to be confirmed, if usual form. I further ask that the only through all the work, the Federal agen- we have a vote. But these women are first-degree amendments, other than cies and everybody, to apprehend some- all being held up by somebody who will the committee-reported substitute, be body, and then because we can’t guar- not come in the Chamber and say who the following: That first-degree amend- antee a speedy trial because there are it is holding them up. But just do it. ments be subject to relevant second-de- so many vacancies in the Federal Frankly, I would like to see all of these gree amendments—Sarbanes-Bryan, se- court, somebody who has been charged people—the committees have passed on curities market; Sarbanes-Bryan, secu- with a crime suddenly sees their charge them. The committees have given rities market—three Sarbanes-Bryan, lowered. If you are a taxpayer and you them, in most cases, unanimous rec- securities market; two Bryan-Sar- pay the bill, as we all are for these ommendations and some overwhelming banes, securities market; Cleland, courts, and you have a case, a civil recommendations. class-action lawsuits; Biden, relevant case, you cannot get it heard for some- Let the Senate work its will. I think amendment; Wellstone, State laws; times 2, 3, 4, 5 years. Justice delayed is it is wrong to hold them up but espe- Feingold, dispute resolution; D’Amato, justice denied. I mention this, Mr. cially in the courts. The courts now relevant; and Dodd, relevant; that upon President; I certainly, and I understand face an enormous problem. People are the disposition of the listed amend- everybody on this side of the aisle, declining appointments to the Federal ments, the committee substitute be would be ready to go ahead and vote up judiciary because they say they are not agreed to, the bill be read a third time, or down every one of these nine judges going to sit around for 2 or 3 years and the Senate then vote on passage of right now and clear this up. while their law practices fall apart S. 1260, with no intervening action or Mr. FORD. Mr. President, will the waiting for the Senate to do what we debate, provided that Senator REID of Senator yield for a question? are paid to do. Nevada be recognized to speak for up to Mr. LEAHY. I yield without losing We have, as I said earlier, in the sec- 10 minutes. my right to the floor. Of course, I yield ond circuit, my own circuit, a judicial The PRESIDING OFFICER. Is there to the distinguished Senator from Ken- emergency, the first time ever, and yet objection? The Chair hears none, and it tucky. we have two second circuit court of ap- is so ordered. Mr. FORD. When the Senator said we peals judges voted out of the com- f had other nominees, and he only listed mittee sitting on the calendar and can- UNANIMOUS CONSENT the judicial, there are other nominees not be voted upon. It is wrong, Mr. AGREEMENT—S. 2037 on the Executive Calendar who have no President, for the Senate to try to di- Mr. MCCAIN. Mr. President, I ask reason to be held. For instance, we minish the Federal bench. unanimous consent the majority lead- have a woman who has been serving for One of the most important parts of er, after consultation with the Demo- 4 years on the Uranium Enrichment our democracy is the fact that we have cratic leader, may proceed to the con- Corporation. She came before the En- an independent judiciary. No other na- sideration of S. 2037. I further ask that ergy Committee on February 11. She tion on Earth has the ability to ap- there be 60 minutes for debate equally was given the greatest of accolades for point to a judiciary, handling as com- divided between Senator HATCH and the tremendous job she had done, and plex and varied items as ours does, and Senator LEAHY, with 15 minutes of Sen- she is caught up in the holds on every- still retain its independence. Some, I ator HATCH’s time controlled by Sen- thing else. And now 90 days have am afraid to say, on the other side of ator ASHCROFT. I further ask that the passed since she was unanimously re- the aisle and in the other body feel only amendment in order be the man- ported out of the Energy Committee. that we must start intimidating these The Uranium Enrichment Corpora- agers’ technical amendment. I finally judges—their words, that we must start ask consent that following the expira- tion is about to privatize. There is $2 holding up these judges—their words. billion, approximately, in this budget tion or yielding back of time, the bill That is wrong. This democracy is be read a third time and the Senate that will have to be voted on by that maintained and is able to remain a de- particular individual. They said—the then proceed to a vote on passage of S. mocracy, even though it is the most 2037, with no intervening action or de- ‘‘they’’ being the majority—let her powerful nation on Earth, because of bate. have a contract, just a consultant’s an independent judiciary. We hurt all The PRESIDING OFFICER. Without contract. And that means she can sit Americans. We hurt the criminal jus- objection, it is so ordered. there and listen but cannot say a word tice system; we allow people to escape Mr. MCCAIN. Mr. President, I would or cast a vote. We are about ready to for their misdeeds if we do not have the like to say now we have also only one close the deal. judges there to try the cases. And if remaining concern about the H–1 B bill So not only do we have the judicial you are a private litigant, you cannot of Senator ABRAHAM. We would like to problem, we have other nominations be heard. Even though you pay the move to it tonight. I understand that that are vitally important to my State taxes, you pay the bills, you cannot be on the Democratic side of the aisle and the State of Ohio of which we have heard because the judges are not there. there is no objection. We are working a vital interest. I want to encourage I see the distinguished senior Senator on it now. the Senator. I am about to make a from Arizona in the Chamber. I know So I would like to inform my col- unanimous consent request that we he is seeking recognition. leagues that we may move to the Abra- bring Margaret Greene up so we might I yield the floor. ham bill, which has been cleared on the try to do something here to get her The PRESIDING OFFICER. The Sen- Democratic side, if we can clear it on moving and on the board so she can ator from Arizona. the Republican side, and, if so, then continue to make decisions and do the Mr. MCCAIN. I would like to thank there will be amendments considered good work she has been complimented the Senator from Vermont for his cour- tonight. for by the Energy Committee. So I tesy. I know he is addressing a very im- f thank the Senator. portant issue and I appreciate his for- Mr. LEAHY. If I might say to my bearance while I propound a unanimous MORNING BUSINESS friend from Kentucky, the irony is that consent request. Mr. MCCAIN. While that is being Margaret Hornbeck Greene, if there f worked out, I now ask unanimous con- was to be a vote on her, would get sent that there be a period for the every vote in this place. So instead, UNANIMOUS CONSENT transaction of routine morning busi- what you have is somebody in the back AGREEMENT—S. 1260 ness until 7:15 p.m., with Senators per- recesses of a cloakroom somewhere Mr. McCAIN. Mr. President, I ask mitted to speak for up to 10 minutes. holding this woman up, as are a whole unanimous consent that the majority Mr. LEAHY. Reserving the right to lot of other women on this list being leader, after consultation with the object, and I shall not object, does that held up by people who say, ‘‘We won’t Democratic leader, may proceed to the statement by the distinguished acting vote on these women. We just won’t let consideration of S. 1260. I further ask leader mean there will be no more roll- them come to a vote.’’ consent there be 2 hours of general de- call votes tonight?

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00072 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4711 Mr. MCCAIN. In light of these agree- five million, four hundred twenty-three dairy and livestock operations. Among ments, I now announce there will be no thousand, six hundred fifty dollars and the research projects the Secretary is further rollcall votes this evening. thirty-six cents) during the past 25 authorized to conduct are: Research, The PRESIDING OFFICER. Without years. development, and on-farm education, objection, it is so ordered. f low-cost production facilities, manage- f THE AGRICULTURAL RESEARCH, ment systems and genetics appropriate MONTANA POLE VAULTERS EXTENSION AND EDUCATION RE- for these small and medium operations, FORM ACT OF 1998 research and extension on management Mr. BAUCUS. Mr. President, I rise to intensive grazing systems which reduce take a moment to share with the Sen- Mr. FEINGOLD. Mr. President, feed costs and improve farm profit- ate the remarkable accomplishments today, the Senate passed the con- ability, research and extension on inte- of some truly ‘‘high fliers.’’ ference agreement on S. 1150, the Agri- grated crop and livestock systems that All of us in this body travel to cultural Research, Extension, and Edu- strengthen the competitive position of schools and encourage tomorrow’s cation Reform Act of 1998. I am pleased small- and medium-size operations, leaders to ‘‘aim high.’’ Last week, that this important legislation, con- economic analyses and feasibility stud- three Montana pole vaulters did just taining several amendments I au- ies to identify new marketing opportu- that and the result was that collegiate thored, has seen its way to the Senate nities for small- and medium-size pro- and high school records fell. floor for proper and overdue consider- ducers, technology assessment that Three extraordinary women, all from ation and passage. compares the technological resources my hometown of Helena, made a bit of Mr. President, the agricultural provi- of large specialized producers with the history. sions of this bill are important for all technological needs of small- and me- On the collegiate level, Helena High farmers but I am especially proud of dium-size dairy and livestock oper- Graduate and University of Montana the provisions targeted to support our ations, and research to identify the freshman Nicole Zeller twice set new endangered small farmers. Big Sky Conference records in the pole Mr. President, this country is facing specific research and education needs vault, first by clearing 11 feet 10 a national farming crisis. Day after of these small operations. inches, and then, improving her own day, season after season, we are losing The provision allows the Secretary to record with a vault of 12 feet, 1⁄2 inch. small farms at an alarming rate. In carry out this new program using ex- Meanwhile, two Helena high school 1980, there were 45,000 dairy farms in isting USDA funds, facilities and tech- students—one from my and Senator Wisconsin. In 1997, there are only 24,000 nical expertise. Dairy and livestock ROTH’s alma mater, Helena High, the dairy farms. That is a loss of more producers should not be forced to be- other from Capital High—were reg- than 3 dairy farms a day-everyday for come larger in order to remain com- istering the two best vaults in the na- 17 years. And it does not begin to meas- petitive. Bigger is not necessarily bet- tion this year. One of them set a new ure the human cost to families driven ter. And in fact, M. President, expan- national record for high school pole from the land. As small farms dis- sion is often counterproductive for vaulters. appear, we are witnessing the emer- small operations, requiring them to Not only did Shannon Agee of Helena gence of larger agricultural operations. take on even greater debt. Farmers High set a new national record. She This trend toward fewer but larger need more help in determining other beat the old one by a mile. She vaulted dairy operations is mirrored in most methods of maintaining long-term 13 feet and eclipsed the old record by a States throughout the Nation. profitability. For example, small dairy full incredible five inches. Mr. President, the economic losses farmers may find adoption of manage- On the same day, Capital High senior associated with the reduction in the ment-intensive grazing systems, com- Suzanne Krings cleared 12 feet 6 inches, number of small farms go well beyond bined with a diversified cropping oper- giving her the second-best vault in the the impact on the individual farm fam- ation a profitable alternative to expan- nation this year. ilies who must wrench themselves from sion. But there has been far too little So today, Mr. President, I extend my the land. The reduction in farm num- federally funded research devoted to al- congratulations to Shannon, Suzanne bers has hurt their neighbors as well ternative livestock production sys- and Nicole for showing all of us how to and deprived the merchants on the tems. Small producers need more Fed- soar. main streets of their towns of many eral research and extension activity de- THE VERY BAD DEBT BOXSCORE lifelong customers. For many of the voted to the development of these al- MR. HELMS. Mr. President, at the rural communities of Wisconsin, small ternatives. This amendment is a good close of business yesterday, Monday, family-owned farms are the key com- first step in establishing the Federal May 11, 1998, the federal debt stood at ponent of the community. They pro- research commitment to help develop $5,487,765,423,650.36 (Five trillion, four vide economic and sound stability. and promote production and marketing hundred eighty-seven billion, seven They are good people and we need a systems that specifically address the hundred sixty-five million, four hun- system in which their farms are viable needs of small producers. dred twenty-three thousand, six hun- and their work can be fairly rewarded. dred fifty dollars and thirty-six cents). Many feel that basic research is a Using research dollars to help main- Five years ago, May 11, 1993, the fed- necessary and underutilized tool that tain the economic viability of small- eral debt stood at $4,241,563,000,000 can help to save this dying breed of and medium-size dairy and livestock (Four trillion, two hundred forty-one farmers. There have been plenty of operations has benefits beyond those billion, five hundred sixty-three mil- Federal investments in agricultural re- gained by farmers and the communities lion). search, past and present, focusing al- in which they reside. Keeping a large Ten years ago, May 11, 1988, the fed- most solely on the needs of larger scale number of small operations in produc- eral debt stood at $2,511,066,000,000 (Two agricultural producers-neglecting the tion can provide environmental bene- trillion, five hundred eleven billion, specific research needs of small pro- fits as well. As livestock operations ex- sixty-six million). ducers. This research bias has ham- pand their herd size without a cor- Fifteen years ago, May 11, 1983, the strung small farmers, depriving them responding increase in cropping acre- federal debt stood at $1,257,970,000,000 of the tools they need to adapt to age, manure storage and management (One trillion, two hundred fifty-seven changes in farming and the market- practices become more costly and more billion, nine hundred seventy million). place and accelerating the trend to- burdensome for the operator and raise Twenty-five years ago, May 11, 1973, ward increased concentration. additional regulatory concerns associ- the federal debt stood at $453,530,000,000 To address this concern, I worked ated with runoff and water quality (Four hundred fifty-three billion, five with the conference committee to in- among State and Federal regulators. hundred thirty million) which reflects clude a provision which authorizes a Research that helps dairy and live- a debt increase of more than $5 tril- coordinated program of research, ex- stock operators remain competitive lion—$5,034,235,423,650.36 (Five trillion, tension, and education to improve the and profitable without dramatic expan- thirty-four billion, two hundred thirty- viability of small- and medium-size sion will help minimize these concerns.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00073 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4712 CONGRESSIONAL RECORD — SENATE May 12, 1998 Mr. President, also incorporated into production systems, such as integrated from the President of the United the bill is language requiring the Sec- whole farm crop, livestock, and re- States submitting sundry nominations retary to fund research on the competi- source management systems, that which were referred to the appropriate tiveness and viability of small- and me- allow small farmers to reduce input committees. dium-size farms under the Initiative costs, improve profitability, and mini- (The nominations received today are for Future Agriculture and Food Sys- mize environmental impacts of agricul- printed at the end of the Senate pro- tems—a new research program author- tural production that are more appro- ceedings.) ized by S. 1150 and funded at a total of priate for smaller operations. f $600 million for fiscal years 1999 To address this concern, accepted INTRODUCTION OF BILLS AND through 2002. With the inclusion of my language allows USDA to fund studies JOINT RESOLUTIONS amendment, the Secretary is directed evaluating whether precision agri- to make grants for research projects culture technologies are applicable or The following bills and joint resolu- addressing the viability of small- and accessible to small- and medium-sized tions were introduced, read the first medium-size farming operations with farms. The amendment also allows and second time by unanimous con- funding made available under the Ini- USDA to conduct research on methods sent, and referred as indicated: tiative in fiscal years 1999–2002. This to improve the applicability of preci- By Mr. WARNER: amendment ensures that the research sion agriculture to these operations. It S. 2062. A bill to amend the Comprehensive needs of small dairy, livestock, and is critical that USDA’s research invest- Environmental Response, Compensation, and ment in this new technology not ex- Liability Act of 1980 to clarify liability under cropping operations will be addressed that Act for certain recycling transactions; under the substantial new funding pro- clude the needs of small farmers. If it to the Committee on Environment and Pub- vided for agricultural research in this does, this new research program could lic Works. bill. ultimately affect the structure of agri- By Mr. HOLLINGS (by request): Finally, Mr. President, the con- culture, potentially providing dis- S. 2063. A bill to authorize activities under ference committee also accepted im- proportionate advantages to large scale the Federal railroad safety laws for fiscal portant language regarding precision farming operations, accelerating the years 1999 through 2002, and for other pur- trend to fewer and larger farms. My poses; to the Committee on Commerce, agriculture. Precision agriculture is a Science, and Transportation. system of farming that uses very site- amendment will allow USDA to con- By Ms. MIKULSKI (for herself, Mr. specific information on soil nutrient duct research on low cost precision ag- GLENN, and Mr. SARBANES): needs and presence of plant pests, often riculture systems that do not require S. 2064. A bill to prohibit the sale of naval gathered using advanced technologies significant financial investments by vessels and Maritime Administration vessels such as global positioning systems, farmers and that may be more appro- for purposes of scrapping abroad, to establish high performance image processing, priate to small or highly diversified a demonstration program relating to the breaking up of such vessels in United States and software systems to determine the farming operations. Mr. President, I appreciate the co- shipyards, and for other purposes; to the specific fertilizer, pesticide and other Committee on Armed Services. input needs of a farmer’s cropland. operation of the chairman, Mr. LUGAR, By Mr. MURKOWSKI (for himself and This technology may have the benefit and the ranking member, Mr. HARKIN, Mr. STEVENS): of lowering farm production costs and of the Agriculture Committee and their S. 2065. A bill to amend the Internal Rev- increase profitability by helping the staff in addressing the important re- enue Code of 1986 to clarify the tax treat- producer reduce agricultural inputs by search needs of small- and medium-size ment of Settlement Trusts established pur- suant to the Alaska Native Claims Settle- applying them only where needed. In farms by maintaining these amend- ments during conference committee ment Act; to the Committee on Finance. addition, reducing agricultural inputs By Mr. CHAFEE: may minimize the impact of crop pro- consideration of this bill. S. 2066. A bill to reduce exposure to envi- duction on wildlife and the environ- These amendments will ensure that ronmental tobacco smoke; to the Committee research money is directed at the in- ment. While precision agriculture, gen- on Environment and Public Works. terests of the small farmer providing erally defined, encompasses a broad By Mr. ASHCROFT (for himself, Mr. the tools to make these operations via- LEAHY, Mr. BURNS, Mr. CRAIG, Mrs. range of techniques from high-tech- ble to survive the riggers of farming in BOXER, Mr. FAIRCLOTH, Mr. WYDEN, nology satellite imaging systems to the next century. Mr. KEMPTHORNE, Mrs. MURRAY, and manual soil sampling, it is most fre- Mrs. HUTCHISON): quently discussed in terms of the use of f S. 2067. A bill to protect the privacy and capital intensive advanced tech- SHANNEL QUARLES—KANSAS constitutional rights of Americans, to estab- nologies. YOUTH OF THE YEAR lish standards and procedures regarding law enforcement access to decryption assistance Precision agriculture may result in Mr. BROWNBACK. Mr. President, production efficiencies and improved for encrypted communications and stored today, I rise to recognize an out- electronic information, to affirm the rights profitability for some farms, yet many standing high school student from of Americans to use and sell encryption in agriculture are concerned that, be- Wichita, KS. Shannel Quarles won the products, and for other purposes; to the Com- cause of the capital intensive nature of Kansas Youth of the Year award for mittee on the Judiciary. precision agriculture systems, this new 1998–1999. Along with this award, By Mr. THOMPSON (for himself and technology will not be applicable or ac- Mr. GLENN): Shannel will receive a four-year schol- S. 2068. A bill to clarify the application of cessible to small or highly diversified arship to the college of her choice, farms. It is unclear whether precision the Unfunded Mandates Reform Act of 1995, sponsored by Oprah Winfrey’s Angel and for other purposes; to the Committee on agriculture services, even if provided Network. the Budget and the Committee on Govern- by input suppliers, will be available at Mr. President, I am proud to recog- mental Affairs, jointly, pursuant to the affordable rates to small farms. Fur- nize the outstanding accomplishment order of August 4, 1977, with instructions thermore, some observers are con- of this high school sophomore. She is that if one Committee reports, the other cerned that private firms may find that an exemplary role model for young peo- Committee have thirty days to report or be marketing efforts directed at small ple in our nation. I congratulate discharged. farms are not lucrative enough and By Mr. DORGAN (for himself and Mr. Shannel and her family and wish her CONRAD): thus may avoid efforts to apply the continued success. S. 2069. A bill to permit the leasing of min- technology to small operations. f eral rights, in any case in which the Indian In addition to concerns about the ap- owners of an allotment that is located with- plicability and accessibility of preci- MESSAGES FROM THE PRESIDENT in the boundaries of the Fort Berthold In- sion agriculture to small farms, many Messages from the President of the dian Reservation and held in trust by the are concerned that precision agri- United States were communicated to United States have executed leases to more culture may not be the most appro- the Senate by Mr. Williams, one of his than 50 percent of the mineral estate of that priate production system for small secretaries. allotment; to the Committee on Indian Af- fairs. EXECUTIVE MESSAGES REFERRED farms given the costs of acquiring new By Mr. DEWINE: technology or contracting for addi- As in executive session the Presiding S. 2070. A bill to provide for an Under- tional services. There may be other Officer laid before the Senate messages ground Railroad Educational and Cultural

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00074 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4713 Program; to the Committee on Labor and I must advise the Senate that the mantle a destroyer—to $1 million for Human Resources. way we do this is not being done in an an aircraft carrier. SUBMISSION OF CONCURRENT AND honorable, environmentally sensitive, They buy the rights to Navy ships, then SENATE RESOLUTIONS efficient way. I believe that when we sell the salvaged metal. . . . Because of environmental violations and The following concurrent resolutions have ships that have defended the United States of America, that were other issues, the Navy has had to take back and Senate resolutions were read, and 20 ships in yards in North Carolina, Rhode Is- referred (or acted upon), as indicated: floating military bases, they should be retired with honor. When I unfold to land and California. . . . Of the 58 ships sold for scrapping since 1991, only 28 have been By Mrs. FEINSTEIN (for herself, Mr. you the horror stories that the Sun BROWNBACK, and Mr. GLENN): finished. paper found, you will be shocked, and I S. Res. 227. A resolution to express the And, oh, my God, how they have been hope you will join in the cosponsorship sense of the Senate regarding the May 11, finished. 1998 Indian nuclear tests; to the Committee of my bill. I would like to turn to my hometown on Foreign Relations. Let me recite from the Sun paper: By Mr. WARNER (for himself and Mr. of Baltimore. Mr. President, this is As the Navy sells off obsolete warships at what the Coral Sea looked like while it FORD): the end of the cold war, a little known indus- S. Res. 228. A resolution to authorize the try has grown up in America’s depressed was being dismantled in the Baltimore printing of a document entitled ‘‘Washing- ports, and where the shipbreaking industry harbor. It looks like it was ravaged, ton’s Farewell Address’’; considered and goes, pollution and injured workers are left like it was cannibalized. It looks like a agreed to. in its wake. tenement in a Third World area. By Ms. MOSELEY-BRAUN (for herself The Sun paper continues: and Mr. DURBIN): Headline No. 1. No. 2: S. Res. 229. A resolution commemorating The Pentagon repeatedly deals with In Baltimore, torch handlers worked with- the 150th anniversary of the establishment of shipbreakers with dismal records, then fails out other men on fire watch and without fire the Chicago Board of Trade; considered and to keep watch as they leave health, environ- hoses.... agreed to. mental and legal problems in America’s Picture yourself going out there try- By Mr. DODD (for himself and Mr. ports. ing to do that in the early morning. GRASSLEY): In terms of our own communities on The Coral Sea’s dismal end has been S. Con. Res. 95. A concurrent resolution ex- the border in Brownsville, TX: pressing the sense of Congress with respect marked by stubborn fires and dumping of oil to promoting coverage of individuals under In this U.S. shipbreaking capital on the in the harbor, by lawsuits and repeated long-term care insurance; to the Committee Mexican border, where labor and life are delays—but most of all, by the mishandling on Finance. cheap, scrapping thrives amid official indif- of asbestos. ference. f Let me tell you that it was so bad And, I might say, danger. that even a Navy inspector who came STATEMENTS ON INTRODUCED Also, even more horrendous is the to look at what they were doing was BILLS AND JOINT RESOLUTIONS way we use the Third World to dump scared to death to go on that ship be- By Ms. MIKULSKI (for herself, American ships: In India, the Sun cause he was afraid it was too dan- Mr. GLENN, and Mr. SARBANES): paper found: gerous. S. 2064. A bill to prohibit the sale of On a fetid beach, 35,000 men scrap the I am quoting the Sun paper. naval vessels and Maritime Adminis- world’s ships with little more than their bare On September 16, 1993, [the military] sent tration vessels for purposes of scrap- hands. Despite wretched conditions— its lone inspector—— ping abroad, to establish a demonstra- And dangerous environmental situa- One inspector for the United tion program relating to the breaking tions. States—— up of such vessels in United States I point out what this means close to On his first visit to the Seawitch Salvage shipyards, and for other purposes; to home. Let me tell you some stories. In yard in Baltimore.... But Evans didn’t in- the Committee on Armed Services. Baltimore: spect [it because].... He thought it was too NAVAL VESSELS LEGISLATION Workers have been toiling in air thick with dangerous. Ms. MIKULSKI. Mr. President, I wish asbestos dust. In Baltimore, laborers scrap- The next day, a 23-year-old worker named to bring to the attention of the Senate ping the USS Coral Sea ripped asbestos insu- Alfio Leonardi Jr. found out how unsafe it that today I am introducing legislation lation from the aircraft carrier with their would be. to change the way we dispose of Navy bare hands. At times they had no respirators, He walked on a flight deck up in that ships that are no longer needed. I am standard equipment for asbestos work. [As situation and dropped 30 feet from the we all know,] inhaling asbestos fibers can hangar. proud to say that this bill is being co- have . . . lethal consequences. sponsored by my senior Senator, PAUL I felt a burning feeling inside.... There It was not limited to Baltimore. At SARBANES, as well as the distinguished was blood coming out of my month. I didn’t Terminal Island, CA, 20 laborers were Senator from Ohio, Senator JOHN think I was going to live. fired when they told Federal investiga- GLENN. He suffered a ruptured spleen, frac- With the end of the cold war, the tors how asbestos was being improperly tured pelvis, fractured vertebrae, and number of ships to be disposed of in the stripped from Navy ships. In Balti- he broke his arms in several places. military arsenal is growing. There are more, workers were ordered to stuff as- The inspector was new to the job 180 Navy and Maritime Administration bestos into a leaky barge to hide it when the accident occurred. He had ships waiting to be scrapped. These from inspectors. only 20 hours of training on environ- ships are difficult and dangerous to dis- Dangerous substances from scrapped ships mental issues. He was not appro- mantle. They usually contain asbestos, have polluted harbors, rivers and shorelines. priately trained, and he didn’t even PCBs, and lead paint. They were built The Sun paper goes on to say: know what shipbreaking was. At the long before we understood all of the en- A scrapyard along the Northeast Cape Fear same time, we had repeated fires vironmental hazards associated with River in Wilmington, NC, was contaminated breaking out. these materials. by asbestos, oil and lead. ‘‘That site looked In November of 1996, a fire broke out I am prompted to offer this legisla- like one of Dante’s levels of hell,’’ said David in the Coral Sea engine room. There tion because an issue was brought to Heeter, a North Carolina assistant attorney was no one standing fire watch, no hose general. my attention by a Pulitzer Prize-win- Ship scrappers frustrate regulators by con- nearby. The blaze burned quickly out ning series of articles that appeared in structing a maze of corporate names and of control, and for the sixth time, Bal- the Baltimore Sun written by reporters moving frequently. The Defense Department timore City’s fire department had to Gary Cohn and Will Englund. They has repeatedly sent ships to scrappers who come in and rescue the shipyard. At conducted a very thorough and rig- have records of bankruptcies, fraud [and] the same time, the owner of this ship- orous investigation into the way we payoffs. . . . yard had a record of environmental dispose of our Navy and maritime Because of downsizing, the Navy violations for which he ultimately ships. They traveled around the coun- promised that this would be a bonanza, went to jail. try and around the world to see first- for amounts ranging from $15,000 to We cannot tolerate this in the Balti- hand how our ships are dismantled. dismantle a destroyer—15 grand to dis- more harbor. If you look there, that is

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00075 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4714 CONGRESSIONAL RECORD — SENATE May 12, 1998 where it is, right across from Ft. it in a particular and unique way. They amended to permit Native Corpora- McHenry that defended the United have the ingenuity and the technical tions to establish settlement trusts to States of America and won the second competence, but they lack the will and hold lands and investments for the ben- battle in the war of 1812. And look at the resources. What I hope my legisla- efit of current and future generations it. That is what it looks like. It is a na- tion will do is give them both the will of Alaska Natives. Assets in these tional disgrace that that was in the and the resources to dismantle this in trusts are insulated from business ex- harbor as well as a national environ- a way that retires our ships with posure and risks and can be invested to ment danger. honor. I knew that when the Senate provide distributions of income to Na- Right down the road was the Balti- saw those pictures they would be as tive shareholders and their future gen- more City Shipyard, the Bethlehem taken aback as I have been. erations. Steel Shipyard that was foraging for I thank the Sun paper for their out- Although the 1987 amendments were work. Another fighting lady from standing series in bringing this to not designed to facilitate the development Maryland, Helen Bentley, our former only my attention but to America’s at- of settlement trusts, many Native Cor- Congresswoman—she and I and Senator tention. They won the Pulitzer Prize. porations have been stymied in their PAUL SARBANES worked for Baltimore But I want the United States of Amer- efforts because the tax law, in many to be a home port. We were desperate ica to be sure that we win an environ- cases, imposes onerous penalties on the for work in our shipyard—desperate. mental victory here. But no; do you think the Navy turned So, Mr. President, I am going to be Native shareholders when the trusts to shipyards like Bethlehem Steel? introducing my legislation today as we are created. For example, when assets They turned to the rogues, the crooks, speak. In fact, I send my legislation to are transferred to the trust, they are the scum, the scams, to dismantle our the desk and ask that it be referred to treated as a de facto distribution of as- Navy ships. the appropriate committees. I just sets directly to the shareholders them- I think the ships deserve more. I want to close by saying that when we selves to the extent of the corpora- think the Baltimore harbor deserves close military bases, we do it the right tion’s earnings and profits. more. And I think the United States of way, we pay to clean them up, we close Even though the current share- America deserves more. That is why I them down and find other basic ways of holders receive no actual income at the am introducing legislation to create a recycling their use. time of the transfer into the trust, pilot project on how we can dispose of Every weekend I am around veterans they are liable for income taxes as if these ships, and in a way that is effi- who wear the ships on which they they received an actual distribution. cient, is orderly, and environmentally sailed. They have the U.S.S. Coral Sea; This not only requires the shareholder safe, and keeps the work in American they have a variety of the ships that to come up with money to pay taxes on shipyards, because while this was so they sailed on. They are proud of those a distribution he or she never received, terrible in my own home of Baltimore, ships, and I am proud of those ships. but also can result in a situation where MD, let me show you what was going And I am proud of the military. I con- a trust fund beneficiary is required to on in the Third World. clude by saying, I thank Secretary prepay taxes on his share of the entire This is the U.S. Navy ships being dis- Cohen for his leadership as well as Sec- trust corpus, which may be substan- mantled in India. Thirty-five thousand retary Perry. They have done more en- tially more in taxes than the amount people work on a beach, often with no vironmentally positive things for the of cash benefits he or she will actually shoes, dismantling ships with their military than we have ever had done. receive in the future. bare hands. This is so dangerous, in But this is the next step. terms of what they are doing, that I be- I yield the floor, and I thank the Sen- Our legislation remedies this in- lieve it is an international disgrace. I ate for its kind attention. equity by requiring that a beneficiary was appalled we were also exporting The PRESIDING OFFICER. The bill of a settlement trust will be subject to our environmental problems overseas. will be received and appropriately re- taxation with respect to assets con- Mr. President, I called upon Sec- ferred. veyed to the trust only when the ac- retary Cohen, when I read this series, The Democratic leader. tual distribution is received by the to immediately stop what we were Mr. DASCHLE. Mr. President, let me beneficiary. Moreover, the legislation doing and to take a look. He did it. I thank the distinguished Senator from provides that distributions from the want to thank him for his prompt re- Maryland for her eloquent statement. I trust will be taxable as ordinary in- sponse. He analyzed what they should appreciate her leadership. Her state- come even if the distribution rep- do, and they made recommendations. ment this morning is one that I wish resents a return of capital. In addition, But the recommendation was more en- the whole country could hear. Her lead- to ensure that these trusts do not accu- forcement of the same old way of doing ership and her willingness to be in- mulate excessive levels of the corpora- business. Well, more enforcement of volved in this issue is critical to all of tion’s earnings, the legislation requires the same old way of doing business will us. And I appreciate so much her elo- that the trust must annually distribute still end up with the same old way of quence and the studious way in which at least 55 percent of their taxable in- doing business—occupational safety she has pursued this matter. come. dangers, environmental catastrophes, Mr. President, Alaska Native Cor- and a national disgrace. By Mr. MURKOWSKI (for himself porations are unique entities. Unlike So that is why I am introducing my and Mr. STEVENS): Native American tribes in the lower 48, S. 2065. A bill to amend the Internal own legislation. The first section of the Alaska Native corporations are subject Revenue Code of 1986 to clarify the tax legislation will absolutely ban the to income tax. But unlike ordinary C treatment of Settlement Trusts estab- shipping, the sending of our 180 Navy corporations, Alaska Native corpora- lished pursuant to the Alaska Native ships overseas to be dismantled in such tions have diverse purposes, one of Claims Settlement Act; to the Com- despicable situations. The other part which is to preserve and protect the mittee on Finance. establishes a pilot project for the U.S. heritage of the Native shareholders. Navy to look at how it could put our ALASKA NATIVE SETTLEMENT TRUST TAX The settlement trust concept is well LEGISLATION ships out for dismantling bids in Amer- suited to the special needs of Alaska’s ican shipyards that meet environ- Mr. MURKOWSKI. Mr. President, I Natives. As the Conference Committee mental and occupational standards. am pleased to be joined by Senator Report to ANSCA amendments of 1987 Those shipyards, like the ones in my STEVENS in introducing legislation stated: own hometown of Baltimore, that are that will allow Alaska Native Corpora- fit for duty. They know how to build a tions to establish settlement trusts de- Trust distributions may be used to fight signed to promote the health, edu- poverty, provide food, shelter and clothing ship. They know how to convert a ship. and served comparable economic welfare They know how to dismantle a ship. cation, welfare and cultural heritage of purposes. Additionally, cash distributions of I think the Navy can do better. The Alaska Natives. trust income may be made on an across-the- Navy has an outstanding record of dis- Mr. President, in 1987, the Alaska Na- board basis to the beneficiary population as mantling nuclear submarines. They do tive Claims Settlement Act was part of the economic welfare function.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00076 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4715 Settlement trusts will ensure that This bill has a few other provisions. THORNE, Mrs. MURRAY, and Mrs. for generations to come, Native Alas- It affirmatively states that there is no HUTCHISON): kans will have a steady stream of in- federal preemption of State or local ef- S. 2067. A bill to protect the privacy come on which to continue building an forts to address ETS. It would ban and constitutional rights of Americans, economic base. The current tax rules smoking on international flights that to establish standards and procedures discourage the creation of such trusts originate or terminate in the United regarding law enforcement access to with the result that Native corpora- States. It also would extend and codify decryption assistance for encrypted tions are under extreme pressure to the President’s Executive Order ban- communications and stored electronic distribute all current earnings rather ning smoking in federal buildings. My information, to affirm the rights of than prudently reinvesting for the fu- good friend, Senator WARNER, in his ca- Americans to use and sell encryption ture. pacity as Chairman of the Senate Rules products, and for other purposes; to the Mr. President, it is my hope that we Committee, is working to ban smoking Committee on the Judiciary. will be able to see this legislation from the public areas of the Senate. I THE E-PRIVACY ACT adopted into law this year. For the applaud this effort and encourage my Mr. ASHCROFT. Mr. President, I rise long-term benefit of Alaska Natives, colleagues to support it. My legislation to speak today on an issue that I find this tax law change is fundamentally would complement his efforts in other very important to the future of this necessary. federal buildings. country’s leading position in the tech- This bill does not address the ques- nology, and that is encryption. This By Mr. CHAFEE: tion of smoking in private workplaces. issue has been under consideration S. 2066. A bill to reduce exposure to Up to 3,000 adults die each year from since I first came to Capitol Hill, and environmental tobacco smoke; to the lung cancer caused by ETS. Because of for more than three years nothing has Committee on Environment and Public this statistic, some have argued that been accomplished by way of assistance Works. the federal government should ban to law enforcement, or to industry, or ENVIRONMENTAL TOBACCO SMOKE LEGISLATION smoking in nearly every building in most importantly to the users of encryption in this country. Mr. CHAFEE. Mr. President, today I the nation. Most legislative proposals am introducing legislation regarding My first involvement in this entire on this issue would subject every dress discussion came about as a result of one small aspect of the national to- shop and church hall in the nation to bacco debate. This bill addresses the the need for protection and privacy. If federal smoking regulations. we are to operate at our highest and problem of second-hand smoke, also Ironically, most of those bills exempt known as Environmental Tobacco best in the information age, instead of bars and restaurants and other places settling for something very far below Smoke, or ETS for short. It is my hope where smoking can be common. That our potential, we are going to need pri- that the ideas contained in this bill can means they ignore the few places where vacy and protection, and we are going be incorporated into any tobacco legis- employees faced a substantial threat to need the ability to operate with in- lation acted on by the Senate. from ETS while regulating every other tegrity on the Internet. The Internet The Committee on Environment and workplace. I believe that there is a has to be something more than speak- Public Works recently held a hearing more efficient way to address work- ing on the public square, it has to have on ETS at which we learned that the places with dangerous levels of ETS. the ability to allow individuals to com- principal victims of second-hand smoke We should allow State and local gov- municate with each other. It has to are children who live with smokers. ernments to take the lead on this mat- have the same kind of rights and pro- Tobacco smoke has devastating con- ter, but we also should help them to tections that are accorded to other as- sequences for children under 18 months solve the problem. Some towns and pects of communication. Without this of age. Annually, up to 15,000 infants States have taken action already. We privacy, the potential of the Internet is are hospitalized for lung infections can encourage more of them to do so destroyed. In my judgment, the Inter- caused by ETS such as bronchitis and by expanding the grant program de- net would be destined to become just a pneumonia. These severe lung infec- scribed in my bill to reward States sort of international bull session, noth- tions claim the lives of hundreds of that reduce dangerous levels of ETS in ing more than an international party children each year. the workplace. Incentive grants would line of commentary, or an inter- Second-hand smoke is also respon- allow States to tailor their solutions to national broadcast device. I do not be- sible for less severe lung infections in address local concerns. Some States lieve it will fulfill its potential as a 300,000 infants, 26,000 new cases of asth- could seek a gradual ban while others communication, entertainment, com- ma among children, millions of middle may establish protective ventilation mercial and educational opportunity ear infections, and roughly half the standards. unless Internet communications are se- cases of Sudden Infant Death Syn- Any rule that requires changing a cure and the right of privacy is re- drome (SIDS). These preventable ill- habit as deeply ingrained as smoking spected. nesses, but 40 percent of children in one will be met with resistance. In contrast The Internet allows for the most multi-State study were found to be to a federal one-size-fits-all approach, participatory form of communications routinely exposed to tobacco smoke. State and local efforts can be tailored ever. In order for us to be able to both The bill I am introducing today more easily to local concerns, and will, invite participation by everyone, and would assign some of the funds col- therefore, be more effective. to be able to take advantage of it, we lected under any national tobacco set- I did not address smoking in the have to be able to exclude some parties tlement approved by Congress to a workplace in my bill because I hope to from a particular communication. I do state grant program to educate parents work with other interested members to not know of any more successful exclu- about the dangers of smoking in the develop language that will be support- sion technique in the electronic world home. The statistics I just recited are able on both sides of the aisle. Such a than encryption, especially when so not widely known by parents. Once provision must both avoid rigid federal much information is going to be trans- aware of the profound risk ETS poses mandates and provide real incentives mitted digitally, much of it through for their child, most parents will go to for States to address those workplaces space as well as over hard lines of com- great lengths to protect their child, with dangerous levels of ETS. I will munication. and I believe that even includes par- continue to work with interested par- We have a tremendous potential for ents who smoke. ties in an effort to devise such a provi- commerce on the Internet: everything With the grant funds from this bill, sion. In the meantime, I wanted to from selling clothes, to real estate, to States could provide information about offer the balance of my proposal for the software itself. Electronic commerce ETS to pediatricians and other child Senate’s consideration. has not reached its full potential, but care professionals for distribution to it can. I think we’ve got a big agenda parents. States also could develop ad- By Mr. ASHCROFT (for himself, there, not just encryption but we’ve vertising aimed at parents. We only Mr. LEAHY, Mr. BURNS, Mr. got to have legally binding signature need to arm parents with information. CRAIG, Mrs. BOXER, Mr. FAIR- legislation and therefore solid They will do the rest. CLOTH, Mr. WYDEN, Mr. KEMP- encryption.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00077 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4716 CONGRESSIONAL RECORD — SENATE May 12, 1998 Resisting efforts for mandatory do- able to speak with them confidentially Business Week has recently reported mestic key recovery is also crucial. We and communicate with them, and the that 61 percent of adults responded have to remind ourselves that the government is making it impossible for that they would be more likely to go Internet is like so much of the rest of us to send the encryption that we can on-line if the privacy of their informa- the culture—government can’t solve all use domestically. We can’t send it to tion and communications would be pro- the problems. At least we have to plead our office in Singapore because we are tected. Mr. President, simply put, for restraint by those who would harm ineligible to export it.’’ I don’t want strong encryption means a strong econ- this technology. As I have said before, the situation to be such that I have to omy. Mandatory access, by contrast, now is the time to draw a bright line say, ‘‘Well, go to Seimens in Ger- means weaker encryption and a less se- against federal regulation of the com- many.’’ From Seimens you can buy the cure, and therefore less valuable, net- puter industry. Washington must not encryption that can be sent into the work. start down the road of dreaming up United States and from Seimens in I ask for unanimous consent that the regulations to fix problems that may Germany it can be sent to Singapore entire bill be printed in the RECORD. or may not exist. Two things can be and so you can have your cake and eat There being no objection, the bill was predicted with confidence about con- it too by dealing with a non-domestic ordered to be printed in the RECORD, as gressional meddling in this sector of firm. For us to have a policy which follows: the economy. First, legislation will be provides for the slitting of our own S. 2067 obsolete on the day it is passed. Sec- throats, in a technology arena, where Be it enacted by the Senate and House of Rep- ond, it will hurt consumers, workers, we have held the lead and must con- resentatives of the United States of America in shareholders, and the economy. If Con- tinue to hold the lead, I think is fool- Congress assembled, gress had helped set up the transpor- hardy to say the least. If we are to SECTION 1. SHORT TITLE; TABLE OF CONTENTS. tation industry, there still might be a mark the next century as an ‘‘Amer- (a) SHORT TITLE.—This Act may be cited as livery stable in every town, and buggy ican Century,’’ or even to celebrate the ‘‘Encryption Protects the Rights of Indi- whip factories in large cities. this week as high technology week in viduals from Violation and Abuse in Cyber- The irrationality of limiting the the Senate, we must be forward think- space (E–PRIVACY) Act’’. United States to levels of encryption ing and acting. This bill moves us away (b) TABLE OF CONTENTS.—The table of con- tents for this Act is as follows: which are far below what the world from antiquated export laws to a fu- market is demanding and supplying in ture in which American companies will Sec. 1. Short title; table of contents. Sec. 2. Purposes. other settings, has been mind boggling. be able to compete in the international Sec. 3. Findings. This legislation declares that Amer- marketplace without having one hand Sec. 4. Definitions. ican companies will be full and active tied behind their back by the federal TITLE I—PRIVACY PROTECTION FOR participants in the encryption indus- government. COMMUNICATIONS AND ELECTRONIC try. Today, numerous editions of lead- This bill also clarifies the proper ap- INFORMATION ing American designed and manufac- proach for encryption domestically as Sec. 101. Freedom to use encryption. tured software bears the stamp, ‘‘Not we move ahead in the digital age. The Sec. 102. Purchase and use of encryption for sale outside the United States,’’ be- Administration and the FBI first indi- products by the Federal Gov- cause the software features robust cated support for language that would ernment. encryption. That stamp does nothing mandate key recovery for all domestic Sec. 103. Enhanced privacy protection for in- to make Americans more secure, but it encryption and now support several formation on computer net- does provide aid and comfort to foreign suggested approaches that would make works. Sec. 104. Government access to location in- competitors of American business. This using domestic key escrow a prac- formation. legislation would eliminate that stamp tical—though not legal—necessity. Di- Sec. 105. Enhanced privacy protection for once and for all. rector Freeh has gone so far as to men- transactional information ob- Encryption, of course, is the most tion the need for a new Fourth Amend- tained from pen registers or important issue to the future of elec- ment that considers the realities of the trap and trace devices. tronic commerce and if we are to foster digital age. I think we need a new and TITLE II—LAW ENFORCEMENT the integrity of the Internet we must improved approach to domestic ASSISTANCE have the means of communication do- encryption, not a new updated version Sec. 201. Encrypted wire or electronic com- mestically and international. I have to of the Fourth Amendment. I, for one, munications and stored elec- reaffirm that we must allow the soft- am not eagerly awaiting the FBI’s new tronic communications. ware industry to compete in an inter- release of Fourth Amendment 2.0 or TITLE III—EXPORTS OF ENCRYPTION national market where robust First Amendment ’98. PRODUCTS encryption already takes place. Months I think we have to work together to Sec. 301. Commercial encryption products. ago I went to a Commerce Committee find a reasonable alternative to the Sec. 302. License exception for mass market meeting and took with me an ad from current Administration policy and I products. the Internet, which was from Seimens think we have to ensure secure trans- Sec. 303. License exception for products without encryption capable of company in Germany advertising ro- actions. That’s a clear responsibility. working with encryption prod- bust 128 bit encryption, saying that We can’t have a situation where we ucts. you can’t get this from a U.S. manufac- don’t have security and integrity in Sec. 304. License exception for product sup- turer. The advertisement also indi- our business transactions. We have to port and consulting services. cated, however, that if you buy this be able to compete effectively in a Sec. 305. License exception when comparable you can use it in the United States and worldwide marketplace. For us to limit foreign products available. you can use it overseas as well, and, so our own potential in terms of competi- Sec. 306. No export controls on encryption products used for nonconfiden- if you want to have robust encryption tion makes no sense. We have to make tiality purposes. buy it from Seimens. The Administra- sure that we don’t allow those who Sec. 307. Applicability of general export con- tion has decided to tie the hands of the would use information improperly or trols. U.S. encryption industry. To me that’s illegally to have access to it. That has Sec. 308. Foreign trade barriers to United a disaster, but it is also compounded by to do with securing the transactions, States products. people beginning to develop relation- and the integrity of the Internet as SEC. 2. PURPOSES. ships with foreign software providers well. The purposes of this Act are— as a result of the unavailability of 128 This legislation is the solution to the (1) to ensure that Americans have the max- bit or robust encryption on the part of problem. It is well thought out and at- imum possible choice in encryption methods U.S. providers. tempts to address the legitimate con- to protect the security, confidentiality, and To see the Germans eagerly pro- cerns of all affected parties. I will seek privacy of their lawful wire and electronic communications and stored electronic infor- moting this potential, and to have peo- passage of this legislation in this Con- mation; ple from my own jurisdiction, from the gress and will commit the resources of (2) to promote the privacy and constitu- state of Missouri, say, ‘‘John, we have my office that may be needed to tional rights of individuals and organizations an office in Singapore, we have to be achieve this end. in networked computer systems and other

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00078 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4717 digital environments, protect the confiden- is rapidly emerging as the preferred method uct’s encryption capabilities supplied by the tiality of information and security of crit- of distribution of computer software and re- manufacturer, that an encryption product ical infrastructure systems relied on by indi- lated information; works as represented. viduals, businesses and government agencies, (13) a national encryption policy is needed (12) UNITED STATES PERSON.—The term and properly balance the needs of law en- to advance the development of the national ‘‘United States person’’ means any— forcement to have the same access to elec- and global information infrastructure, and (A) United States citizen; or tronic communications and information as preserve the right to privacy of Americans (B) any legal entity that— under current law; and and the public safety and national security (i) is organized under the laws of the (3) to establish privacy standards and pro- of the United States; United States, or any State, the District of cedures by which investigative or law en- (14) Congress and the American people Columbia, or any commonwealth, territory, forcement officers may obtain decryption as- have recognized the need to balance the or possession of the United States; and sistance for encrypted communications and right to privacy and the protection of the (ii) has its principal place of business in stored electronic information. public safety with national security; the United States. SEC. 3. FINDINGS. (15) the Constitution of the United States TITLE I—PRIVACY PROTECTION FOR COM- Congress finds that— permits lawful electronic surveillance by in- MUNICATIONS AND ELECTRONIC INFOR- (1) the digitization of information and the vestigative or law enforcement officers and MATION the seizure of stored electronic information explosion in the growth of computing and SEC. 101. FREEDOM TO USE ENCRYPTION. only upon compliance with stringent stand- electronic networking offers tremendous po- (a) IN GENERAL.—Except as otherwise pro- ards and procedures; and tential benefits to the way Americans live, vided by this Act and the amendments made (16) there is a need to clarify the standards work, and are entertained, but also raises by this Act, it shall be lawful for any person and procedures by which investigative or law new threats to the privacy of American citi- within the United States, and for any United enforcement officers obtain decryption as- zens and the competitiveness of American States person in a foreign country, to use, sistance from persons— businesses; develop, manufacture, sell, distribute, or im- (A) who are voluntarily entrusted with the (2) a secure, private, and trusted national port any encryption product, regardless of means to decrypt wire and electronic com- and global information infrastructure is es- the encryption algorithm selected, munications and stored electronic informa- sential to promote economic growth, protect encryption key length chosen, existence of tion; or privacy, and meet the needs of American key recovery or other plaintext access capa- (B) have information that enables the citizens and businesses; bility, or implementation or medium used. decryption of such communications and in- (3) the rights of Americans to the privacy (b) PROHIBITION ON GOVERNMENT-COM- formation. and security of their communications and in PELLED KEY ESCROW OR KEY RECOVERY the conducting of personal and business af- SEC. 4. DEFINITIONS. ENCRYPTION.— fairs should be promoted and protected; In this Act: (1) IN GENERAL.—Except as provided in (4) the authority and ability of investiga- (1) AGENCY.—The term ‘‘agency’’ has the paragraph (3), no agency of the United States tive and law enforcement officers to access meaning given the term in section 6 of title nor any State may require, compel, set and decipher, in a timely manner and as pro- 18, United States Code. standards for, condition any approval on, or vided by law, wire and electronic commu- (2) COMPUTER HARDWARE.—The term ‘‘com- condition the receipt of any benefit on, a re- nications, and stored electronic information puter hardware’’ includes computer systems, quirement that a decryption key, access to a necessary to provide for public safety and equipment, application-specific assemblies, decryption key, key recovery information, or national security should also be preserved; smart cards, modules, and integrated cir- other plaintext access capability be— (5) individuals will not entrust their sen- cuits. (A) given to any other person, including sitive personal, medical, financial, and other (3) COMPUTING DEVICE.—The term ‘‘com- any agency of the United States or a State, information to computers and computer net- puting device’’ means a device that incor- or any entity in the private sector; or works unless the security and privacy of that porates 1 or more microprocessor-based cen- (B) retained by any person using information is assured; tral processing units that are capable of ac- encryption. (6) businesses will not entrust their propri- cepting, storing, processing, or providing (2) USE OF PARTICULAR PRODUCTS.—No etary and sensitive corporate information, output of data. agency of the United States may require any including information about products, proc- (4) ENCRYPT AND ENCRYPTION.—The terms person who is not an employee or agent of esses, customers, finances, and employees, to ‘‘encrypt’’ and ‘‘encryption’’ refer to the the United States or a State to use any key computers and computer networks unless scrambling (and descrambling) of wire com- recovery or other plaintext access features the security and privacy of that information munications, electronic communications, or for communicating or transacting business is assured; electronically stored information, using with any agency of the United States. (7) America’s critical infrastructures, in- mathematical formulas or algorithms in (3) EXCEPTION.—The prohibition in para- cluding its telecommunications system, order to preserve the confidentiality, integ- graph (1) does not apply to encryption used banking and financial infrastructure, and rity, or authenticity of, and prevent unau- by an agency of the United States or a State, power and transportation infrastructure, in- thorized recipients from accessing or alter- or the employees or agents of such an agen- creasingly rely on vulnerable information ing, such communications or information. cy, solely for the internal operations and systems, and will represent a growing risk to (5) ENCRYPTION PRODUCT.—The term telecommunications systems of the United national security and public safety unless ‘‘encryption product’’— States or the State. the security and privacy of those informa- (A) means a computing device, computer (c) USE OF ENCRYPTION FOR AUTHENTICA- tion systems is assured; hardware, computer software, or technology, TION OR INTEGRITY PURPOSES.— (8) encryption technology is an essential with encryption capabilities; and (1) IN GENERAL.—The use, development, tool to promote and protect the privacy, se- (B) includes any subsequent version of or manufacture, sale, distribution and import curity, confidentiality, integrity, and au- update to an encryption product, if the of encryption products, standards, and serv- thenticity of wire and electronic commu- encryption capabilities are not changed. ices for purposes of assuring the confiden- nications and stored electronic information; (6) EXPORTABLE.—The term ‘‘exportable’’ tiality, authenticity, or integrity or access (9) encryption techniques, technology, pro- means the ability to transfer, ship, or trans- control of electronic information shall be grams, and products are widely available mit to foreign users. voluntary and market driven. worldwide; (7) KEY.—The term ‘‘key’’ means the vari- (2) CONDITIONS.—No agency of the United (10) Americans should be free to use law- able information used in or produced by a States or a State shall establish any condi- fully whatever particular encryption tech- mathematical formula, code, or algorithm, tion, tie, or link between encryption prod- niques, technologies, programs, or products or any component thereof, used to encrypt or ucts, standards, and services used for con- developed in the marketplace that best suits decrypt wire communications, electronic fidentiality, and those used for authentica- their needs in order to interact electroni- communications, or electronically stored in- tion, integrity, or access control purposes. cally with the government and others world- formation. SEC. 102. PURCHASE AND USE OF ENCRYPTION wide in a secure, private, and confidential (8) PERSON.—The term ‘‘person’’ has the PRODUCTS BY THE FEDERAL GOV- manner; meaning given the term in section 2510(6) of ERNMENT. (11) government mandates for, or otherwise title 18, United States Code. (a) PURCHASES.—An agency of the United compelled use of, third-party key recovery (9) REMOTE COMPUTING SERVICE.—The term States may purchase encryption products systems or other systems that provide sur- ‘‘remote computing service’’ has the mean- for— reptitious access to encrypted data threatens ing given the term in section 2711(2) of title (1) the internal operations and tele- the security and privacy of information sys- 18, United States Code. communications systems of the agency; or tems; (10) STATE.—The term ‘‘State’’ has the (2) use by, among, and between that agency (12) American companies should be free to meaning given the term in section 3156(a)(5) and any other agency of the United States, compete and sell encryption technology, pro- of title 18, United States Code. the employees of the agency, or persons op- grams, and products, and to exchange (11) TECHNICAL REVIEW.—The term ‘‘tech- erating under contract with the agency. encryption technology, programs, and prod- nical review’’ means a review by the Sec- (b) INTEROPERABILITY.—To ensure that se- ucts through the use of the Internet, which retary, based on information about a prod- cure electronic access to the Government is

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00079 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4718 CONGRESSIONAL RECORD — SENATE May 12, 1998 available to persons outside of and not oper- SEC. 105. ENHANCED PRIVACY PROTECTION FOR 2510, has the meaning given the term in sec- ating under contract with agencies of the TRANSACTIONAL INFORMATION OB- tion 2510. TAINED FROM PEN REGISTERS OR United States, the United States shall pur- ‘‘§ 2802. Unlawful use of encryption chase no encryption product with a key re- TRAP AND TRACE DEVICES. covery or other plaintext access feature if Subsection 3123(a) of title 18, United States ‘‘Any person who, during the commission such key recovery or plaintext access feature Code, is amended to read as follows: of a felony under Federal law, knowingly and would interfere with use of the product’s full ‘‘(a) IN GENERAL.—Upon an application willfully encrypts any incriminating com- encryption capabilities when interoperating made under section 3122, the court may enter munication or information relating to that with other commercial encryption products. an ex parte order— felony, with the intent to conceal that com- ‘‘(1) authorizing the installation and use of munication or information for the purpose of SEC. 103. ENHANCED PRIVACY PROTECTION FOR a pen register or a trap and trace device avoiding detection by a law enforcement INFORMATION ON COMPUTER NET- within the jurisdiction of the court if the agency or prosecutor— WORKS. court finds, based on the certification by the ‘‘(1) in the case of a first offense under this Section 2703 of title 18, United States Code, attorney for the Government or the State section, shall be imprisoned not more than 5 is amended by adding at the end the fol- law enforcement or investigative officer, years, fined under this title, or both; and lowing: that the information likely to be obtained by ‘‘(2) in the case of a second or subsequent ‘‘(g) ACCESS TO STORED ELECTRONIC INFOR- such installation and use is relevant to an offense under this section, shall be impris- MATION.— ongoing criminal investigation; and oned not more than 10 years, fined under this ‘‘(1) DISCLOSURE.— ‘‘(2) directing that the use of the pen reg- title, or both. ‘‘(A) IN GENERAL.—Subject to subparagraph ister or trap and trace device be conducted in ‘‘§ 2803. Access to decryption assistance for (B), a governmental entity may require the such a way as to minimize the recording or communications disclosure by a provider of a remote com- decoding of any electronic or other impulses that are not related to the dialing and sig- ‘‘(a) CRIMINAL INVESTIGATIONS.— puting service of the contents of an elec- ‘‘(1) IN GENERAL.—An order authorizing the tronic record in networked electronic stor- naling information utilized in call proc- essing.’’. interception of a wire or electronic commu- age only if the person who created the record nication under section 2518 shall, upon re- is accorded the same protections that would TITLE II—LAW ENFORCEMENT quest of the applicant, direct that a provider be available if the record had remained in ASSISTANCE of wire or electronic communication service, that person’s possession. SEC. 201. ENCRYPTED WIRE OR ELECTRONIC or any other person possessing information ‘‘(B) NETWORKED ELECTRONIC STORAGE.—In COMMUNICATIONS AND STORED capable of decrypting that communication, addition to the requirements of subpara- ELECTRONIC COMMUNICATIONS. other than a person whose communications graph (A) and subject to paragraph (2), a gov- (a) IN GENERAL.—Part I of title 18, United are the subject of the interception, shall ernmental entity may require the disclosure States Code, is amended by inserting after promptly furnish the applicant with the nec- of the contents of an electronic record in chapter 123 the following: essary decryption assistance, if the court networked electronic storage only— ‘‘CHAPTER 124—ENCRYPTED WIRE OR finds that the decryption assistance sought ‘‘(i) pursuant to a warrant issued under the ELECTRONIC COMMUNICATIONS AND is necessary for the decryption of a commu- Federal Rules of Criminal Procedure or STORED ELECTRONIC INFORMATION nication intercepted pursuant to the order. equivalent State warrant, a copy of which ‘‘(2) LIMITATIONS.—Each order described in ‘‘Sec. warrant shall be served on the person who paragraph (1), and any extension of such an ‘‘2801. Definitions. created the record prior to or at the same order, shall— ‘‘2802. Unlawful use of encryption. time the warrant is served on the provider of ‘‘(A) contain a provision that the ‘‘2803. Access to decryption assistance for the remote computing service; decryption assistance provided shall involve communications. ‘‘(ii) pursuant to a subpoena issued under disclosure of a private key only if no other ‘‘2804. Access to decryption assistance for the Federal Rules of Criminal Procedure or form of decryption assistance is available stored electronic communica- equivalent State warrant, a copy of which and otherwise shall be limited to the min- tions or records. subpoena shall be served on the person who imum necessary to decrypt the communica- ‘‘2805. Foreign government access to created the record, under circumstances al- tions intercepted pursuant to this chapter; decryption assistance. lowing that person a meaningful opportunity and ‘‘2806. Establishment and operations of Na- to challenge the subpoena; or ‘‘(B) terminate on the earlier of— tional Electronic Technologies ‘‘(iii) upon the consent of the person who ‘‘(i) the date on which the authorized ob- Center. created the record. jective is attained; or ‘‘(2) DEFINITION.—In this subsection, an ‘‘§ 2801. Definitions ‘‘(ii) 30 days after the date on which the electronic record is in ‘networked electronic ‘‘In this chapter: order or extension, as applicable, is issued. storage’ if— ‘‘(1) DECRYPTION ASSISTANCE.—The term ‘‘(3) NOTICE.—If decryption assistance is ‘‘(A) it is not covered by subsection (a) of ‘decryption assistance’ means assistance provided pursuant to an order under this sub- this section; that provides or facilitates access to the section, the court issuing the order described ‘‘(B) the person holding the record is not plaintext of an encrypted wire or electronic in paragraph (1)— authorized to access the contents of such communication or stored electronic informa- ‘‘(A) shall cause to be served on the person record for any purposes other than in con- tion, including the disclosure of a decryption whose communications are the subject of nection with providing the service of stor- key or the use of a decryption key to such decryption assistance, as part of the in- age; and produce plaintext. ventory required to be served pursuant to ‘‘(C) the person who created the record is ‘‘(2) DECRYPTION KEY.—The term section 2518(8), notice of the receipt of the able to access and modify it remotely ‘decryption key’ means the variable informa- decryption assistance and a specific descrip- through electronic means.’’. tion used in or produced by a mathematical tion of the keys or other assistance dis- SEC. 104. GOVERNMENT ACCESS TO LOCATION formula, code, or algorithm, or any compo- closed; and INFORMATION. nent thereof, used to decrypt a wire commu- ‘‘(B) upon the filing of a motion and for nication or electronic communication or good cause shown, shall make available to (a) COURT ORDER REQUIRED.—Section 2703 such person, or to counsel for that person, of title 18, United States Code, is amended by stored electronic information that has been for inspection, the intercepted communica- adding at the end the following: encrypted. ‘‘(3) ENCRYPT; ENCRYPTION.—The terms tions to which the decryption assistance re- ‘‘(h) REQUIREMENTS FOR DISCLOSURE OF LO- ‘encrypt’ and ‘encryption’ refer to the scram- lated, except that on an ex parte showing of CATION INFORMATION.—A provider of mobile bling (and descrambling) of wire communica- good cause, the serving of the inventory re- electronic communication service shall pro- tions, electronic communications, or elec- quired by section 2518(8) may be postponed. vide to a governmental entity information tronically stored information, using mathe- ‘‘(b) FOREIGN INTELLIGENCE INVESTIGA- generated by and disclosing, on a real time matical formulas or algorithms in order to TIONS.— basis, the physical location of a subscriber’s preserve the confidentiality, integrity, or au- ‘‘(1) IN GENERAL.—An order authorizing the equipment only if the governmental entity thenticity of, and prevent unauthorized re- interception of a wire or electronic commu- obtains a court order issued upon a finding cipients from accessing or altering, such nication under section 105(b)(2) of the For- that there is probable cause to believe that communications or information. eign Intelligence Surveillance Act of 1978 (50 an individual using or possessing the sub- ‘‘(4) FOREIGN GOVERNMENT.—The term ‘for- U.S.C. 1805(b)(2)) shall, upon request of the scriber equipment is committing, has com- eign government’ has the meaning given the applicant, direct that a provider of wire or mitted, or is about to commit a felony of- term in section 1116. electronic communication service or any fense.’’. ‘‘(5) OFFICIAL REQUEST.—The term ‘official other person possessing information capable (b) CONFORMING AMENDMENT.—Section request’ has the meaning given the term in of decrypting such communications, other 2703(c)(1)(B) of title 18, United States Code, is section 3506(c). than a person whose communications are the amended by inserting ‘‘or wireless location ‘‘(6) INCORPORATED DEFINITIONS.—Any term subject of the interception, shall promptly information covered by subsection (g) of this used in this chapter that is not defined in furnish the applicant with the necessary section’’ after ‘‘(b) of this section’’. this chapter and that is defined in section decryption assistance, if the court finds that

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00080 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4719 the decryption assistance sought is nec- court in which the person possessing infor- ‘‘(F) investigate and research new and essary for the decryption of a communica- mation capable of decrypting the commu- emerging techniques and technologies to fa- tion intercepted pursuant to the order. nication or information at issue resides— cilitate access to communications and elec- ‘‘(2) LIMITATIONS.—Each order described in ‘‘(A) directing that person to release a tronic information, including— paragraph (1), and any extension of such an decryption key or provide decryption assist- ‘‘(i) reverse-stenography; order, shall— ance to the Attorney General (or the des- ‘‘(ii) decompression of information that ‘‘(A) contain a provision that the ignee of the Attorney General); and previously has been compressed for trans- decryption assistance provided shall be lim- ‘‘(B) authorizing the Attorney General (or mission; and ited to the minimum necessary to decrypt the designee of the Attorney General) to fur- ‘‘(iii) demultiplexing; the communications intercepted pursuant to nish the foreign government with the ‘‘(G) investigate and research interception this chapter; and plaintext of the encrypted communication or and access techniques that preserve the pri- ‘‘(B) terminate on the earlier of— stored electronic information at issue. vacy and security of information not author- ‘‘(i) the date on which the authorized ob- ‘‘(2) CONTENTS OF ORDER.—An order is de- ized to be intercepted; and jective is attained; or scribed in this paragraph if it is an order di- ‘‘(H) obtain information regarding the ‘‘(ii) 30 days after the date on which the recting the person possessing information most current hardware, software, tele- order or extension, as applicable, is issued. capable of decrypting the communication or communications, and other capabilities to ‘‘(c) GENERAL PROHIBITION ON DISCLO- information at issue to understand how to access digitized informa- SURE.—Other than pursuant to an order ‘‘(A) release a decryption key to the Attor- tion transmitted across networks. under subsection (a) or (b) of this section, no ney General (or the designee of the Attorney ‘‘(4) EQUAL ACCESS.—State and local law person possessing information capable of General) so that the plaintext of the commu- enforcement agencies and authorities shall decrypting a wire or electronic communica- nication or information may be furnished to have access to information, services, re- tion of another person shall disclose that in- the foreign government; or sources, and assistance provided by the NET formation or provide decryption assistance ‘‘(B) provide decryption assistance to the Center to the same extent that Federal law to an investigative or law enforcement offi- Attorney General (or the designee of the At- enforcement agencies and authorities have cer (as defined in section 2510(7)). torney General) so that the plaintext of the such access. ‘‘§ 2804. Access to decryption assistance for communication or information may be fur- ‘‘(5) PERSONNEL.—The Director may ap- stored electronic communications or nished to the foreign government. point such personnel as the Director con- records ‘‘(3) REQUIREMENTS FOR ORDER.—The court siders appropriate to carry out the duties of the NET Center. ‘‘(a) DECRYPTION ASSISTANCE.—No person described in paragraph (1) may issue an order ‘‘(6) ASSISTANCE OF OTHER FEDERAL AGEN- may disclose a decryption key or provide described in paragraph (2) if the court finds, CIES.—Upon the request of the Director of decryption assistance pertaining to the con- on the basis of an application made by the the NET Center, the head of any department tents of stored electronic communications or Attorney General under this subsection, that— or agency of the Federal Government may, records, including those disclosed pursuant to assist the NET Center in carrying out its to section 2703, to a governmental entity, ex- ‘‘(A) the decryption key or decryption as- sistance sought is necessary for the duties under this subsection— cept— ‘‘(A) detail, on a reimbursable basis, any of ‘‘(1) pursuant to a warrant issued under the decryption of a communication or informa- tion that the foreign government is author- the personnel of such department or agency Federal Rules of Criminal Procedure or an to the NET Center; and ized to intercept or seize pursuant to the law equivalent State warrant, a copy of which ‘‘(B) provide to the NET Center facilities, of that foreign country; warrant shall be served on the person who information, and other nonpersonnel re- ‘‘(B) the law of the foreign country pro- created the electronic communication prior sources. vides for adequate protection against arbi- to or at the same time service is made on the ‘‘(7) PRIVATE INDUSTRY ASSISTANCE.—The trary interference with respect to privacy keyholder; NET Center may accept, use, and dispose of rights; and ‘‘(2) pursuant to a subpoena, a copy of gifts, bequests, or devises of money, services, ‘‘(C) the decryption key or decryption as- which subpoena shall be served on the person or property, both real and personal, for the sistance is being sought in connection with a who created the electronic communication purpose of aiding or facilitating the work of criminal investigation for conduct that or record, under circumstances allowing the the Center. Gifts, bequests, or devises of person meaningful opportunity to challenge would constitute a violation of a criminal money and proceeds from sales of other prop- the subpoena; or law of the United States if committed within erty received as gifts, bequests, or devises ‘‘(3) upon the consent of the person who the jurisdiction of the United States. shall be deposited in the Treasury and shall created the electronic communication or ‘‘§ 2806. Establishment and operations of Na- be available for disbursement upon order of record. tional Electronic Technologies Center the Director of the NET Center. ‘‘(b) DELAY OF NOTIFICATION.—In the case ‘‘(a) NATIONAL ELECTRONIC TECHNOLOGIES ‘‘(8) ADVISORY BOARD.— of communications disclosed pursuant to CENTER.— ‘‘(A) ESTABLISHMENT.—There is established section 2703(a), service of the copy of the ‘‘(1) ESTABLISHMENT.—There is established in the NET Center an Advisory Board for Ex- warrant or subpoena on the person who cre- in the Department of Justice a National cellence in Information Security (in this ated the electronic communication under Electronic Technologies Center (referred to paragraph referred to as the ‘Advisory subsection (a) may be delayed for a period of in this section as the ‘NET Center’). Board’), which shall be comprised of mem- not to exceed 90 days upon request to the ‘‘(2) DIRECTOR.—The NET Center shall be bers who have the qualifications described in court by the governmental entity requiring administered by a Director (referred to in subparagraph (B) and who are appointed by the decryption assistance, if the court deter- this section as the ‘Director’), who shall be the Attorney General. The Attorney General mines that there is reason to believe that no- appointed by the Attorney General. shall appoint a chairman of the Advisory tification of the existence of the court order ‘‘(3) DUTIES.—The NET Center shall— Board. or subpoena may have an adverse result de- ‘‘(A) serve as a center for Federal, State, ‘‘(B) QUALIFICATIONS.—Each member of the scribed in section 2705(a)(2). and local law enforcement authorities for in- Advisory Board shall have experience or ex- ‘‘§ 2805. Foreign government access to formation and assistance regarding pertise in the field of encryption, decryption, decryption assistance decryption and other access requirements; electronic communication, information secu- ‘‘(a) IN GENERAL.—No investigative or law ‘‘(B) serve as a center for industry and gov- rity, electronic commerce, privacy protec- enforcement officer may— ernment entities to exchange information tion, or law enforcement. ‘‘(1) release a decryption key to a foreign and methodology regarding information se- ‘‘(C) DUTIES.—The duty of the Advisory government or to a law enforcement agency curity techniques and technologies; Board shall be to advise the NET Center and of a foreign government; or ‘‘(C) support and share information and the Federal Government regarding new and ‘‘(2) except as provided in subsection (b), methodology regarding information security emerging technologies relating to provide decryption assistance to a foreign techniques and technologies with the Com- encryption and decryption of communica- government or to a law enforcement agency puter Investigations and Infrastructure tions and electronic information. of a foreign government. Threat Assessment Center (CITAC) and Field ‘‘(9) IMPLEMENTATION PLAN.— ‘‘(b) CONDITIONS FOR COOPERATION WITH Computer Investigations and Infrastructure ‘‘(A) IN GENERAL.—Not later than 2 months FOREIGN GOVERNMENT.— Threat Assessment (CITA) Squads of the after the date of enactment of this chapter, ‘‘(1) APPLICATION FOR AN ORDER.—In any Federal Bureau of Investigation; the Attorney General shall, in consultation case in which the United States has entered ‘‘(D) examine encryption techniques and and cooperation with other appropriate Fed- into a treaty or convention with a foreign methods to facilitate the ability of law en- eral agencies and appropriate industry par- government to provide mutual assistance forcement to gain efficient access to ticipants, develop and cause to be published with respect to providing decryption assist- plaintext of communications and electronic in the Federal Register a plan for estab- ance, the Attorney General (or the designee information; lishing the NET Center. of the Attorney General) may, upon an offi- ‘‘(E) conduct research to develop efficient ‘‘(B) CONTENTS OF PLAN.—The plan pub- cial request to the United States from the methods, and improve the efficiency of exist- lished under subparagraph (A) shall— foreign government, apply for an order de- ing methods, of accessing plaintext of com- ‘‘(i) specify the physical location of the scribed in paragraph (2) from the district munications and electronic information; NET Center and the equipment, software,

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00081 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4720 CONGRESSIONAL RECORD — SENATE May 12, 1998 and personnel resources necessary to carry SEC. 303. LICENSE EXCEPTION FOR PRODUCTS (iii) one shall be appointed by the Speaker out the duties of the NET Center under this WITHOUT ENCRYPTION CAPABLE OF of the House of Representatives; and subsection; WORKING WITH ENCRYPTION PROD- (iv) one shall be appointed by the Minority ‘‘(ii) assess the amount of funding nec- UCTS. Leader of the House of Representatives. Subject to section 307, any product that essary to establish and operate the NET Cen- (3) MEETINGS.— does not itself provide encryption capabili- ter; and (A) IN GENERAL.—Subject to subparagraph ties, but that incorporates or employs in any ‘‘(iii) identify sources of probable funding (B), the Board shall meet at the call of the form cryptographic application program- Under Secretary of Commerce for Export Ad- for the NET Center, including any sources of ming interfaces or other interface mecha- ministration. in-kind contributions from private industry. nisms for interaction with other encryption ‘‘(b) AUTHORIZATION.—There are authorized (B) MEETINGS WHEN APPLICATIONS PEND- products covered by section 301(a), shall be ING.—If any application referred to in para- to be appropriated such sums as may be nec- exportable without the need for an export li- graph (4)(A) is pending, the Board shall meet essary for the establishment and operation cense, and without restrictions other than not less than once every 30 days. of the NET Center.’’. those permitted under this Act, after a 1- ECHNICAL AND ONFORMING MEND (4) DUTIES.— (b) T C A - time, 15-day technical review by the Sec- MENT.—The analysis for part I of title 18, retary of Commerce. (A) IN GENERAL.—Whenever an application United States Code, is amended by adding at for a license exception for an encryption SEC. 304. LICENSE EXCEPTION FOR PRODUCT the end the following: SUPPORT AND CONSULTING SERV- product under this section is submitted to ‘‘124. Encrypted wire or electronic ICES. the Secretary of Commerce, the Board shall communications and stored elec- (a) NO ADDITIONAL EXPORT CONTROLS IM- determine whether a comparable encryption tronic information ...... 2801’’. POSED IF UNDERLYING PRODUCT COVERED BY product is commercially available outside the United States from a foreign supplier as TITLE III—EXPORTS OF ENCRYPTION LICENSE EXCEPTION.—Technical assistance specified in subsection (a). PRODUCTS and technical data associated with the in- stallation and maintenance of encryption (B) MAJORITY VOTE REQUIRED.—The Board SEC. 301. COMMERCIAL ENCRYPTION PRODUCTS. products covered by sections 302 and 303 shall shall make a determination under this para- (a) PROVISIONS APPLICABLE TO COMMERCIAL be exportable without the need for an export graph upon a vote of the majority of the PRODUCTS.—The provisions of this title apply license, and without restrictions other than members of the Board. to all encryption products, regardless of the those permitted under this Act. (C) DEADLINE.—The Board shall make a de- encryption algorithm selected, encryption (b) DEFINITIONS.—In this section: termination with respect to an encryption key length chosen, exclusion of key recovery (1) TECHNICAL ASSISTANCE.—The term product under this paragraph not later than or other plaintext access capability, or im- ‘‘technical assistance’’ means services, in- 30 days after receipt by the Secretary of an plementation or medium used, except those cluding instruction, skills training, working application for a license exception under this specifically designed or modified for military knowledge, and consulting services, and the subsection based on the encryption product. use, including command, control, and intel- transfer of technical data. (D) NOTICE OF DETERMINATIONS.—The Board ligence applications. (2) TECHNICAL DATA.—The term ‘‘technical shall notify the Secretary of Commerce of (b) CONTROL BY SECRETARY OF COMMERCE.— data’’ means information including blue- each determination under this paragraph. Subject to the provisions of this title, and prints, plans, diagrams, models, formulae, (E) REPORTS TO PRESIDENT.—Not later than notwithstanding any other provision of law, tables, engineering designs and specifica- 30 days after a meeting under this paragraph, the Secretary of Commerce shall have exclu- tions, manuals and instructions written or the Board shall submit to the President a re- sive authority to control exports of recorded on other media or devices such as port on the meeting. encryption products covered under sub- disk, tape, or read-only memories. (F) APPLICABILITY OF FACA.—The provi- section (a). SEC. 305. LICENSE EXCEPTION WHEN COM- sions of the Federal Advisory Committee Act SEC. 302. LICENSE EXCEPTION FOR MASS MAR- PARABLE FOREIGN PRODUCTS (5 U.S.C. App.) shall not apply to the Board KET PRODUCTS. AVAILABLE. or to meetings held by the Board under this (a) EXPORT CONTROL RELIEF.—Subject to (a) FOREIGN AVAILABILITY STANDARD.—An paragraph. section 307, an encryption product that is encryption product not qualifying under sec- (5) ACTION BY SECRETARY OF COMMERCE.— generally available, or incorporates or em- tion 302 shall be exportable without the need (A) APPROVAL OR DISAPPROVAL.—The Sec- ploys in any form, implementation, or me- for an export license, and without restric- retary of Commerce shall specifically ap- dium, an encryption product that is gen- tions other than those permitted under this prove or disapprove each determination of erally available, shall be exportable without Act, after a 1-time 15-day technical review the Board under paragraph (5) not later than the need for an export license, and without by the Secretary of Commerce, if an 30 days of the submittal of such determina- restrictions other than those permitted encryption product utilizing the same or tion to the Secretary under that paragraph. under this Act, after a 1-time 15-day tech- greater key length or otherwise providing (B) NOTIFICATION AND PUBLICATION OF DECI- nical review by the Secretary of Commerce. comparable security to such encryption SION.—The Secretary of Commerce shall— (b) DEFINITIONS.—In this section, the term product is, or will be within the next 18 (i) notify the Board of each approval or dis- ‘‘generally available’’ means an encryption months, commercially available outside the approval under this paragraph; and product that is— United States from a foreign supplier. (ii) publish a notice of the approval or dis- (1) offered for sale, license, or transfer to (b) DETERMINATION OF FOREIGN AVAIL- approval in the Federal Register. any person without restriction, whether or ABILITY.— (C) CONTENTS OF NOTICE.—Each notice of a not for consideration, including, but not lim- (1) ENCRYPTION EXPORT ADVISORY BOARD ES- decision of disapproval by the Secretary of ited to, over-the-counter retail sales, mail TABLISHED.—There is hereby established a Commerce under subparagraph (B) of a deter- order transactions, phone order transactions, board to be known as the ‘‘Encryption Ex- mination of the Board under paragraph (4) electronic distribution, or sale on approval; port Advisory Board’’ (in this section re- that an encryption product is commercially and ferred to as the ‘‘Board’’). available outside the United States from a (2) not designed, developed, or customized (2) MEMBERSHIP.—The Board shall be com- foreign supplier shall set forth an expla- by the manufacturer for specific purchasers prised of— nation in detail of the reasons for the deci- except for user or purchaser selection among (A) the Under Secretary of Commerce for sion, including why and how continued ex- installation or configuration parameters. Export Administration, who shall be Chair- port control of the encryption product which (c) COMMERCE DEPARTMENT ASSURANCE.— man; the determination concerned will be effec- (1) IN GENERAL.—The manufacturer or ex- (B) seven individuals appointed by the tive in achieving its purpose and the amount porter of an encryption product may request President, of whom— of lost sales and loss in market share of written assurance from the Secretary of (i) one shall be a representative from each United States encryption products as a re- Commerce that an encryption product is of— sult of the decision. considered generally available for purposes (I) the National Security Agency; (6) JUDICIAL REVIEW.—Notwithstanding any of this section. (II) the Central Intelligence Agency; and other provision of law, a decision of dis- (2) RESPONSE.—Not later than 30 days after (III) the Office of the President; and approval by the Secretary of Commerce receiving a request under paragraph (1), the (ii) four shall be individuals from the pri- under paragraph (5) of a determination of the Secretary shall make a determination re- vate sector who have expertise in the devel- Board under paragraph (4) that an garding whether to issue a written assurance opment, operation, or marketing of informa- encryption product is commercially avail- under that paragraph, and shall notify the tion technology products; and able outside the United States from a foreign person making the request, in writing, of (C) four individuals appointed by Congress supplier shall be subject to judicial review that determination. from among individuals in the private sector under the provisions of subchapter II of (3) EFFECT ON MANUFACTURERS AND EXPORT- who have expertise in the development, oper- chapter 5 of title 5, United States Code (com- ERS.—A manufacturer or exporter who ob- ation, or marketing of information tech- monly referred to as the ‘‘Administrative tains a written assurance under this sub- nology products, of whom— Procedures Act’’). section shall not be held liable, responsible, (i) one shall be appointed by the Majority (c) INCLUSION OF COMPARABLE FOREIGN or subject to sanctions for failing to obtain Leader of the Senate; ENCRYPTION PRODUCT IN A UNITED STATES an export license for the encryption product (ii) one shall be appointed by the Minority PRODUCT NOT BASIS FOR EXPORT CONTROLS.— at issue. Leader of the Senate; A product that incorporates or employs a

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00082 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4721 foreign encryption product, in the way it was and have introduced encryption legis- services, and conduct their personal intended to be used and that the Board has lation, with bipartisan support, in the and business affairs, maintaining the determined to be commercially available last Congress and again in this one, to privacy and confidentiality of our com- outside the United States, shall be export- balance the important privacy, eco- puter communications both here and able without the need for an export license and without restrictions other than those nomic, national security and law en- abroad has only grown in importance. permitted under this Act, after a 1-time 15- forcement interests at stake. The vol- As an avid computer user and Internet day technical review by the Secretary of ume of those alarm bells should be surfer myself, I care deeply about pro- Commerce. raised to emergency sirens. tecting individual privacy and encour- SEC. 306. NO EXPORT CONTROLS ON Hardly a month goes by without aging the development of the Internet ENCRYPTION PRODUCTS USED FOR press reports of serious breaches of as a secure and trusted communica- NONCONFIDENTIALITY PURPOSES. computer security that threaten our tions medium. (a) PROHIBITION ON NEW CONTROLS.—The Federal Government shall not restrict the critical infrastructures, including De- Encryption is the key to protecting export of encryption products used for non- fense Department computer systems, the privacy of our online communica- confidentiality purposes such as authentica- the telephone network, or computer tions and electronic records by ensur- tion, integrity, digital signatures, non- systems for airport control towers. The ing that only the people we choose can repudiation, and copy protection. lesson of these computer breaches— read those communications and (b) NO REINSTATEMENT OF CONTROLS ON often committed by computer savvy records. That is why the primary PREVIOUSLY DECONTROLLED PRODUCTS.— teenagers—is that all the physical bar- thrust of the encryption legislation I Those encryption products previously decon- riers we might put in place can be cir- have introduced is to encourage—and trolled and not requiring an export license as of January 1, 1998, as a result of administra- cumvented using the wires that run not stand in the way of—the wide- tive decision or rulemaking shall not require into every building to support the com- spread use of strong encryption. an export license. puters and computer networks that are Strong encryption serves as a crime SEC. 307. APPLICABILITY OF GENERAL EXPORT the mainstay of how we do business. A prevention shield to stop hackers, in- CONTROLS. well-focused cyber-attack on the com- dustrial spies and thieves from snoop- (a) SUBJECT TO TERRORIST AND EMBARGO puter networks that support tele- ing into private computer files and CONTROLS.—Nothing in this Act shall be con- communications, transportation, water stealing valuable proprietary informa- strued to limit the authority of the Presi- supply, banking, electrical power and tion. Unfortunately, we still have a dent under the International Emergency Economic Powers Act, the Trading with the other critical infrastructure systems long away to go to reform our coun- Enemy Act, or the Export Administration could wreak havoc on our national try’s encryption policy to reflect that Act, to— economy or even jeopardize our na- this technology is a significant crime (1) prohibit the export of encryption prod- tional defense or public safety. and terrorism prevention tool. ucts to countries that have been determined We have been aware of the Even as our law enforcement and in- to repeatedly provide support for acts of vulnerabilities of our computer net- telligence agencies try to slow down international terrorism; or works for some time. It became clear the widespread use of strong (2) impose an embargo on exports to, and to me almost a decade ago, during encryption, technology continues to imports from, a specific country. move forward. Ironically, foot-dragging (b) SUBJECT TO SPECIFIC DENIALS FOR SPE- hearings I chaired of the Judiciary CIFIC REASONS.—The Secretary of Commerce Subcommittee on Technology and the by the Administration on export con- shall prohibit the export of particular Law on the risks of high-tech ter- trols is driving encryption technology, encryption products to an individual or orga- rorism, that merely ‘‘hardening’’ our expertise and manufacturing overseas nization in a specific foreign country identi- physical space from potential attack is where we will lose even more control fied by the Secretary if the Secretary deter- not enough. We must also ‘‘harden’’ our over its proliferation. mines that there is substantial evidence that critical infrastructures to ensure our Indeed, due to the sorry state of our such encryption products will be used for security and our safety. export controls on encryption, we are military or terrorist end-use, including acts That is where encryption technology seeing rising numbers of our high-tech against the national security, public safety, or the integrity of the transportation, com- comes in. Encryption can protect the companies turning to overseas firms as munications, or other essential systems of security of our computer information suppliers of the strong encryption de- interstate commerce in the United States. and networks. Indeed, both former Sen- manded by their customers. For exam- (c) OTHER EXPORT CONTROLS REMAIN APPLI- ator Sam Nunn and former Deputy At- ple, Network Associates recently an- CABLE.—(1) Encryption products shall remain torney General Jamie Gorelick, who nounced that it will make strong subject to all export controls imposed on serve as co-chairs of the Advisory Com- encryption software developed in the such products for reasons other than the ex- mittee to the President’s Commission United States available through a istence of encryption capabilities. (2) Nothing in this Act alters the Sec- on Critical Infrastructure Protection, Swiss company. Other companies, in- retary’s ability to control exports of prod- have testified that ‘‘encryption is es- cluding Sun Microsystems, are cooper- ucts for reasons other than encryption. sential for infrastructure protection.’’ ating with foreign firms to manufac- SEC. 308. FOREIGN TRADE BARRIERS TO UNITED Yet U.S. encryption policy has acted ture and distribute overseas strong STATES PRODUCTS. as a deterrent to better security. As encryption software originally devel- Not later than 180 days after the date of long ago as 1988, at the High-Tech Ter- oped here at home. enactment of this Act, the Secretary of Com- rorism hearings I chaired, Jim Wool- Encryption technology, invented merce, in consultation with the United sey, who later became the director of with American ingenuity, will now be States Trade Representative, shall— (1) identify foreign barriers to exports of the Central Intelligence Agency, testi- manufactured and distributed in Eu- United States encryption products; fied about the need to do a better job of rope, and imported back into this coun- (2) initiate appropriate actions to address using encryption to protect our com- try. such barriers; and puter networks. Of particular concern Driving encryption expertise over- (3) submit to Congress a report on the ac- is the recent testimony of former Sen- seas is extremely short-sighted and tions taken under this section. ator Sam Nunn that the ‘‘continuing poses a real threat to our national se- Mr. LEAHY. Mr. President, I am federal government-private sector curity. Driving high-tech jobs overseas pleased to join Senator ASHCROFT, and deadlock over encryption and export is a threat to our economic security, others, in introducing today the policies’’ may pose an obstacle to the and stifling the widespread, integrated ‘‘Encryption Protects the Rights of In- cooperation needed to protect our use of strong encryption is a threat to dividuals from Violation and Abuse in country’s critical infrastructures. our public safety. The E-PRIVACY Act Cyberspace,’’ or E-PRIVACY Act, to re- I have long advocated the use of would reverse the incentives for Amer- form our nation’s cryptography policy strong encryption by individuals, gov- ican companies to look abroad for in a constructive and positive manner. ernment agencies and private compa- strong encryption by relaxing our ex- It is time the Administration woke up nies to protect their valuable and con- port controls. to the critical need for a common sense fidential computer information. More- Specifically, the bill would grant ex- encryption policy in this country. over, as more Americans every year port license exceptions, after a one- I have been sounding the alarm bells use the Internet and other computer time technical review, for mass market about this issue for several years now, networks to obtain critical medical products with encryption capabilities,

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00083 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4722 CONGRESSIONAL RECORD — SENATE May 12, 1998 products which do not themselves pro- This is not just an important issue ernment maintains diplomatic rela- vide encryption but are capable of for the privacy and security of Ameri- tions with the Burmese government interoperating with encryption prod- cans; it also is a significant human and is expected to turn over informa- ucts, and customized hardware and rights issue. Today, human rights orga- tion to the Burmese authorities. software with encryption capabilities nizations worldwide are using The FBI has argued that lives may be so long as foreign products with com- encryption to protect their work and lost in sensitive terrorist and other in- parable encryption are available. the lives of investigators, witnesses vestigations if government agencies do At the same time, the bill retains im- and victims overseas. Amnesty Inter- not have access to private encryption portant restrictions on encryption ex- national uses it. Human Rights Watch keys. However, the reverse is equally ports for military end-uses or to ter- uses it. The human rights program in true: weak encryption or easy govern- rorist-designated or embargoed coun- the American Association for the Ad- ment access to decryption assistance tries, such as Cuba and North Korea. It vancement of Science uses it. It is used could jeopardize lives as well. also affirms the continued authority of to protect witnesses who report human Finally, the E-PRIVACY Act con- the Secretary of Commerce over rights abuses in the Balkans, in tains provisions to enhance the privacy encryption exports and assures that be- Burma, in Guatemala, in Tibet. I have protections for communications, even fore export, the Secretary is able to been told about a number of other in- when encryption is not employed. Spe- conduct a one-time technical review of stances in which strong encryption has cifically, the bill would require law en- all encryption products to ensure that been used to further the causes of de- forcement to obtain a court order the product works as represented. mocracy and human rights. based on probable cause before using a The E-PRIVACY Act puts to rest the For example, in the ongoing trial of cellular telephone as a tracking device. specter of domestic controls on Argentinean military officers in Spain, In addition, the bill would require law encryption. This legislation bars gov- on charges of genocide and terrorism enforcement agencies to obtain a court ernment-mandated key recovery (or arising out of the ‘‘dirty war,’’ the order or provide notice when seizing key escrow encryption) and ensures human rights group Derechos uses the electronic records that a person stores that all computer users are free to encryption program Pretty Good Pri- on a computer network rather than on choose any encryption method to pro- vacy (PGP)—which the United States the hard drive of his or her own per- tect the privacy of their online com- government tried to keep out of the sonal computer. Finally, the bill grants munications and computer files. hands of foreigners—to encrypt par- Federal judges authority to evaluate At the heart of the encryption debate ticularly confidential messages that go the reasons proffered by a prosecutor is the power this technology gives com- between Spain and Argentina, to stop for issuance of an ex parte pen register puter users to choose who may access the Argentinean intelligence forces or trap and trace device order, by con- their communications and stored from being able to read them and so trast to their mere ministerial author- records, to the exclusion of all others. try to jeopardize the trial. ity under current law. For the same reason that encryption is A group in Guatemala is using a com- In sum, the E-PRIVACY Act accom- a powerful privacy enhancing tool, it puter database to track the names of plishes the eight goals that Senator also poses challenges for law enforce- witnesses to military massacres. A ASHCROFT and I set out during our ment. Law enforcement agencies want South African organization keeps the April 2, 1998, colloquy on the floor. Spe- access even when we do not choose to names of applicants for amnesty for po- cifically, we sought to craft legislation give it. We are mindful of these na- litical crimes carried out in South Af- that promotes the following principles: tional security and law enforcement rica during the apartheid regime. First, ensure the right of Americans concerns that have dictated the Ad- Workers at both groups could be sub- to choose how to protect the privacy ministration’s policy choices on ject to intimidation, harassment, or and security of their communications encryption. murder by those intent on preventing and information; With the appropriate procedural safe- the public discussion and analysis of Second, bar a government-mandated guards in place, law enforcement agen- the claims. Both systems are protected key escrow encryption system; cies should be able to get access to by strong cryptography. Third, establish both procedures and decryption assistance. The E-PRIVACY A not-for-profit agency working for standards for access by law enforce- Act contains a number of provisions human rights in the Balkans uses PGP ment to decryption keys or decryption designed to address these concerns, in- to protect all sensitive files. Its offices assistance for both encrypted commu- cluding a new criminal offense for will- have been raided by various police nications and stored electronic infor- ful use of encryption to hide incrimi- forces looking for evidence of ‘‘subver- mation and only permit such access nating evidence from law enforcement sive activities.’’ Last year in Zagreb, upon court order authorization, with detection, establishment of a NET Cen- security police raided its office and appropriate notice and other proce- ter to help federal, state and local law confiscated its computers in the hope dural safeguards; enforcement stay abreast of advanced of retrieving information about the Fourth, establish both procedures technologies, and explicit procedures identity of people who had complained and standards for access by foreign for law enforcement to obtain about human rights abuses by the au- governments and foreign law enforce- decryption assistance from third par- thorities. PGP allowed the group to ment agencies to the plaintext of ties for encrypted communications or communicate and protect its files from encrypted communications and stored records to which law enforcement has any attempt to gain access. The direc- electronic information of United lawful access. tor of the organization spent 13 days in States persons; One of the starkest deficiencies in prison for not opening his encrypted Fifth, modify the current export re- the Administration’s key recovery pro- files but has said ‘‘it was a very small gime for encryption to promote the posals has always been the question of price to pay for protecting our cli- global competitiveness of American foreign government access. The Admin- ents.’’ companies; istration has sought reciprocal rela- The Iraqi National Congress, a group Sixth, avoid linking the use of cer- tionships with foreign governments as opposing Saddam Hussein with offices tificate authorities with key recovery a critical part of an effective global in London and supporters inside Iraq, agents or, in other words, not link the key recovery system. Yet many Ameri- uses encrypted e-mail to communicate use of encryption for confidentiality cans and American companies are with its supporters inside Iraq. (Non- purposes with use of encryption for au- rightfully concerned about the terms governmental Internet connections are thenticity and integrity purposes; under which foreign governments banned in Iraq, but the dissidents with- Seventh, consistent with these goals would get access to decryption assist- in Iraq access e-mail by dialing outside of promoting privacy and the global ance. The E-PRIVACY Act makes clear the country with satellite telephones). competitiveness of our high-tech indus- what those terms will be and ensures Burmese human rights activists tries, help our law enforcement agen- that foreign governments will not get working in the relative safe haven of cies and national security agencies access to private decryption keys, but Thailand use encryption when commu- deal with the challenges posed by the only, at most, plaintext. nicating on-line, because the Thai gov- use of encryption; and

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00084 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4723 Eighth, protect the security and pri- The terms ‘‘encrypt’’ and ‘‘encryption’’ Act requires that any key recovery features vacy of information provided by Amer- mean the use of mathematical formulas or in encryption products used by the Govern- icans to the government by ensuring algorithms to scramble or descramble elec- ment interoperate with commercial that encryption products used by the tronic data or communications for purposes encryption products. of confidentiality, integrity, or authenticity. SEC. 103. Enhanced Privacy Protection For government interoperate with commer- As defined, the terms cover a broad range of Electronic Records on Computer Networks.— cial encryption products. scrambling techniques and applications in- The Act adds a new subsection (g) to section Resolving the encryption debate is cluding cryptographic applications such as 2703 of title 18, United States Code, to extend critical for our economy, our national PGP or RSA’s encryption algorithms; privacy protections to electronic informa- security and our privacy. This is not a stegonagraphy; authentication; and tion stored on computer networks. partisan issue. This is not a black-and- winnowing and chafing. Under United States v. Miller, 425 U.S. 435 The term ‘‘encryption product’’ includes (1976) (customer has no standing to object to white issue of being either for law en- bank disclosure of customer records) and its forcement and national security or for any hardware, software, devices, or other technology with encryption capabilities, progeny, records in the possession of third Internet freedom. Characterizing the whether or not offered for sale or distribu- parties do not receive Fourth Amendment debate in these simplistic terms is nei- tion. A particular encryption product in- protection. When held in a person’s home, ther productive nor accurate. cludes subsequent versions of the product, if such records can only be seized pursuant to Delays in resolving the encryption the encryption capabilities remain the same. a warrant based upon probable cause, or debate hurt most the very public safety The term ‘‘exportable’’ means the ability compelled under a subpoena which can be and national security interests that to transfer, ship, or transmit to foreign challenged and quashed. In both these in- stances, the record owner has notice of the are posed as obstacles to resolving this users. The term includes the ability to elec- tronically transmit via the Internet. search and an opportunity to challenge it. issue. We need sensible solutions in The term ‘‘key’’ means the variable infor- By contrast, production of records held by legislation that will not be subject to mation used in or produced by a mathe- third parties can be compelled by a govern- change at the whim of agency bureau- matical formula to encrypt or decrypt wire mental agent with a subpoena to the third crats. or electronic communications, or electroni- party holding the information, without no- Every American, not just those in cally stored information. tice to the person to whom the records be- the software and high-tech industries The term ‘‘technical review’’ means a re- long or pertain. The record owner may never and not just those in law enforcement view by the Secretary of Commerce based on receive notice or any meaningful oppor- tunity to challenge the production. agencies, has a stake in the outcome of information about a product’s encryption ca- pabilities supplied by the manufacturer that This lack of protection for records held by this debate. We have a legislative an encryption product works as represented. third parties presents new privacy problems stalemate right now that needs to be in the information age. With the rise of net- TITLE I—PRIVACY PROTECTION FOR COMMUNICA- work computing, electronic information that resolved, and I hope to work closely TIONS AND ELECTRONIC INFORMATION with my colleagues and the Adminis- was previously held on a person’s own com- SEC. 101. Freedom to use Encryption. puter is increasingly stored elsewhere, such tration on a solution. (a) IN GENERAL.—The Act legislatively con- I ask unanimous consent that the as on a network server or an ISP’s com- firms current practice in the United States puters. In many cases the location of such sectional summary for the ‘‘E-PRI- that any person in this country may lawfully information is not even known to the VACY Act’’ be printed in the RECORD. use any encryption method, regardless of record’s owner. There being no objection, the sum- encryption algorithm, key length, existence The Act amends section 2703 to extend the mary was ordered to be printed in the of key recovery or other plaintext access ca- same privacy protections to a person’s pability, or implementation selected. Spe- RECORD, as follows: records whether storage takes place on that cifically, the Act states the freedom of any person’s personal computer in their posses- SECTION-BY-SECTION ANALYSIS OF E-PRIVACY person in the U.S., as well as U.S. persons in sion or in networked electronic storage. The ACT a foreign country, to make, use, import, and term ‘‘networked electronic storage’’ applies SEC. 1. SHORT TITLE.—The Act may be cited distribute any encryption product without to electronic records held by a third party, as the ‘‘Encryption Protects the Rights of regard to its strength or the use of key re- who is not authorized to access the contents Individuals from Violation and Abuse in covery, subject to the other provisions of the of the record except in connection with pro- CYberspace (E-PRIVACY) Act.’’ Act. viding storage services, and where the person SEC. 2 Purposes.—The Act would ensure (b) PROHIBITION ON GOVERNMENT-COM- who created the record is able to access and that Americans have the maximum possible PELLED KEY ESCROW OR KEY RECOVERY modify the record remotely through elec- choice in encryption methods to protect the ENCRYPTION.—The Act prohibits any federal tronic means. Electronic data stored inci- security, confidentiality and privacy of their or state agency from compelling the use of dent to transmission (such as e-mail) and lawful wire and electronic communications key recovery systems or other plaintext ac- covered under 2703(a) is not included. and stored electronic information. The Act cess systems. Agencies may not set stand- The new section 2703(g) requires that a would also promote the privacy and con- ards, or condition approval or benefits, to governmental entity may only require dis- stitutional rights of individuals and organi- compel use of these systems. U.S. agencies closure of electronic records in ‘‘networked zations and the security of critical informa- may not require persons to use particular electronic storage’’ pursuant to (i) a state or tion infrastructures. Finally, the Act would key recovery products for interaction with federal warrant (based upon probable cause), establish privacy standards and procedures the government. These prohibitions do not with a copy to be served on the record owner for law enforcement officers to follow to ob- apply to systems for use solely for the inter- at the same time the warrant is served on tain decryption assistance for encrypted nal operations and telecommunications sys- the record holder; (ii) a subpoena that must communications and information. tems of a U.S. or a State government agen- also be served on the record owner with a SEC. 3 FINDINGS.—The Act enumerates six- cy. meaningful opportunity to challenge the teen congressional findings, including that a (c) USE OF ENCRYPTION FOR AUTHENTICA- subpoena; or (iii) the consent of the record secure, private and trusted national and TION OR INTEGRITY PURPOSES.—The Act re- owner. global information infrastructure is essen- quires that the use of encryption products SEC. 104. GOVERNMENT ACCESS TO LOCATION tial to promote citizens’ privacy, economic shall be voluntary and market-driven, and INFORMATION.—The Act adds a new sub- growth and meet the needs of both American no federal or state agency may link the use section (h) to section 2703 of title 18, United citizens and businesses, that encryption of encryption for authentication or identity States Code, to extend privacy protections technology widely available worldwide can (such as through certificate authority and for physical location information generated help meet those needs, that Americans digital signature systems) to the use of on a real time basis by mobile electronic should be free to use, and American busi- encryption for confidentiality purposes. For communications services, such as cellular nesses free to compete and sell, encryption example, some Administration proposals telephones. This section requires that when technology, programs and products, and that would condition receipt of a digital certifi- cellular telephones are used as contempora- there is a need to develop a national cate from a licensed certificate authority on neous tracking devices, the physical location encryption policy to advance the global in- the use of key recovery. Such conditions information generated by the service pro- formation infrastructure and preserve Amer- would be prohibited. vider may only be released to a govern- icans’ right to privacy and the Nation’s pub- SEC. 102. Purchase and Use of Encryption mental entity pursuant to a court order lic safety and national security. Products by the Federal Government.—The based upon probable cause. SEC. 4 DEFINITIONS.—The terms ‘‘agency’’, Act authorizes agencies of the United States SEC. 105. ENHANCED PRIVACY PROTECTION ‘‘person’’, ‘‘remote computing service’’ and to purchase encryption products for internal FOR TRANSACTIONAL INFORMATION OBTAINED ‘‘state’’ have the same meaning given those governmental operations and telecommuni- FROM PEN REGISTERS OR TRAP AND TRACE terms in specified sections of title 18, United cations systems. To ensure that secure elec- DEVICES.—The Act enhances privacy protec- States Code. tronic access to the Government is available tions for information obtained from pen reg- Additional definitions are provided for the to persons outside of and not operating ister and trap and trace devices by amending following terms: under contract with Federal agencies, the section 3123(a) of title 18, United States

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00085 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4724 CONGRESSIONAL RECORD — SENATE May 12, 1998 Code. This amendment would not change the or electronic communications may be re- sistance for stored electronic communica- standard for issuance of an ex parte order au- quired to release such assistance pursuant to tions may only release such assistance to a thorizing use of a pen register or trap and a court order, if the court issuing the order governmental entity pursuant to (1) a state trace device, but would grant a court author- finds that such assistance is needed for the or federal warrant (based upon probable ity to review the information presented in a decryption of communications covered by cause), with a copy to be served on the certification by the prosecuting attorney to the order. Specifically, such an order for record owner at the same time the warrant determine whether the information likely to decryption assistance may be issued upon a is served on the record holder; (2) a subpoena be obtained is relevant to an ongoing crimi- finding that the key or assistance is nec- that must also be served on the record owner nal investigation. Under current law, the essary to decrypt communications or stored with a meaningful opportunity to challenge court is relegated to a mere ministerial func- data lawfully intercepted or seized. The the subpoena; or (3) the consent of the record tion and must issue the order upon presen- standard for release of the key or provision owner. This standard closely mirrors the tation of a certification. of decryption assistance is tied directly to protection that would be afforded to In addition, the amendment requires law the problem at hand: the need to decrypt a encryption keys that are actually kept in enforcement to minimize the information message or information that the government the possession of those whose records were obtained from the pen register or trap and is otherwise authorized to intercept or ob- encrypted. In the specific case of decryption trace device that is not related to the dialing tain. assistance for communications stored inci- and signaling information utilized in call This will ensure that third parties holding dent to transit (such as e-mail), notice may processing. Currently, such devices capture decryption keys or decryption information be delayed under the standards laid out for not just such dialing information but also need respond to only one type of compulsory delayed notice under current law in section any other dialed digits after a call has been process—a court order. Moreover, this Act 2705(a)(2) of title 18, United States Code. completed. will set a single standard for law enforce- § 2805. Foreign government access to ment, removing any extra burden on law en- TITLE II—LAW ENFORCEMENT ASSISTANCE decryption assistance.—New section 2805 cre- forcement to demonstrate, for example, ates standards for the U.S. government to SEC. 201. ENCRYPTED WIRE OR ELECTRONIC probable cause for two separate orders (i.e., provide decryption assistance to foreign gov- COMMUNICATIONS AND STORED ELECTRONIC for the encrypted communications or infor- ernments. No law enforcement officer would COMMUNICATIONS.—The Act adds a new chap- mation and for decryption assistance) and ter 124 to Title 18, Part I, governing the un- be permitted to release decryption keys to a possibly before two different judges (i.e., the foreign government, but only to provide lawful use of encryption, protections and judge issuing the order for the encrypted standards for governmental access, including decryption assistance in the form of pro- communications or information and the ducing plaintext. No officer would be per- foreign governments, to decryption assist- judge issuing the order to the third party ance from third parties, and establishment of mitted to provide decryption assistance ex- able to provide decryption assistance). cept upon an order requested by the Attor- a ‘‘Net Center’’ to assist law enforcement in The Act reinforces the principle of mini- ney General or designee. Such an order could dealing with advanced technologies, such as mization. The decryption assistance pro- require the production of decryption keys or encryption. vided is limited to the minimum necessary assistance to the Attorney General only if (a) IN GENERAL.—New chapter 124 has six to access the particular communications or sections. This chapter applies to wire or elec- information specified by court order. Under the court finds that (1) the assistance is nec- tronic communications and communications some key recovery schemes, release of a key essary to decrypt data the foreign govern- in electronic storage, as defined in 18 U.S.C. holder’s private key—rather than an indi- ment is authorized to intercept under foreign § 2510, and to stored electronic data. Thus, vidual session key—might provide the abil- law; (2) the foreign country’s laws provide this chapter describes procedures for law en- ity to decrypt every communication or ‘‘adequate protection against arbitrary in- forcement to obtain assistance in decrypting stored file ever encrypted by a particular terference with respect to privacy rights’’; encrypted electronic mail messages, key owner, or by every user in an entire cor- and (3) the assistance is sought for a crimi- encrypted telephone conversations, poration, or by every user who was ever a nal investigation of conduct that would vio- encrypted facsimile transmissions, customer of the key holder. The Act protects late U.S. criminal law if committed in the encrypted computer transmissions and against such over broad releases of keys by United States. encrypted file transfers over the Internet requiring the court issuing the order to find § 2806. Establishment and operations of Na- that are lawfully intercepted pursuant to a that the decryption assistance being sought tional Electronic Technologies Center.—This wiretap order, under 18 U.S.C. § 2518, or ob- is necessary. Private keys may only be re- section establishes a National Electronic tained pursuant to lawful process, under 18 leased if no other form of decryption assist- Technologies Center (‘‘NET Center’’) to serve U.S.C. § 2703, and encrypted information ance is available. as a focal point for information and assist- stored on computers that are seized pursuant Notice of the assistance given will be in- ance to federal, state, and local law enforce- to a search warrant or other lawful process. cluded as part of the inventory provided to ment authorities to address the technical § 2801. Definitions.—Generally, the terms subjects of the interception pursuant to cur- difficulties of obtaining plaintext of commu- used in the new chapter have the same mean- rent wiretap law standards. nications and electronic information ings as in the federal wiretap statute, 18 For foreign intelligence investigations, through the use of encryption, U.S.C. § 2510. Definitions are provided for new section 2803 allows FISA orders to direct steganography, compression, multiplexing, ‘‘decryption assistance’’, ‘‘decryption key’’, third-party holders to release decryption as- and other techniques. ‘‘encrypt; encryption’’, ‘‘foreign govern- sistance if the court finds the assistance is TITLE III—EXPORTS OF ENCRYPTION PRODUCTS needed to decrypt covered communications. ment’’ and ‘‘official request’’. SEC. 301. Commercial Encryption Products. Minimization is also required, though no no- § 2802. Unlawful use of encryption.—This sec- (a) PROVISIONS APPLICABLE TO COMMERCIAL tice is provided to the target of the inves- tion creates a new federal crime for know- PRODUCTS.—This title applies to all tigation. ingly and willfully using encryption during encryption products other than those specifi- Under new section 2803, decryption assist- the commission of a Federal felony offense, ance is only required under third-parties cally designed or modified for military use. with the intent to conceal that information (b) CONTROL BY SECRETARY OF COMMERCE.— (i.e., other than those whose communica- for the purpose of avoiding detection by law tions are the subject of interception), there- This section grants exclusive authority to enforcement. This new offense would be sub- by avoiding self-incrimination problems. the Secretary of Commerce (the ‘‘Sec- ject to a fine and up to 5 years’ imprison- Finally, new section 2803 generally pro- retary’’) to control commercial encryption ment for a first offense, and up to 10 years’ hibits any person from providing decryption product exports. imprisonment for a second or subsequent of- assistance for another person’s communica- SEC. 302. License Exception for Mass Mar- fense. tions to a governmental entity, except pur- ket Products. § 2803. Access to decryption assistance for suant to the orders described. (a) EXPORT CONTROL RELIEF.—The Act per- communications.—In the United States today, § 2804. Access to decryption assistance for mits export under a license exception of gen- decryption keys and other decryption assist- stored electronic communications or records.— erally available, mass market, encryption ance held by third parties constitute third New section 2804 governs access to products, which by their nature are uncon- party records and may be disclosed to a gov- decryption assistance for stored electronic trollable given the volume sold and ease of ernmental entity with a subpoena or an ad- communications and records. distribution, without a license or restric- ministrative request, and without any notice As noted above, under current law third tions, other than those permitted under this to the owner of the encrypted data. Such a party decryption assistance may be disclosed Act, after a 1-time 15-day technical review low standard of access creates new problems to a governmental entity with a subpoena or by the Secretary. in the information age because encryption even a mere request and without notice. This (b) DEFINITIONS.—This section defines users rely heavily on the integrity of keys to standard is particularly problematic for ‘‘generally available’’ as a product offered protect personal information or sensitive stored encrypted data, which may exist in for sale, license, or transfer, including over- trade secrets, even when those keys are insecure media but rely on encryption to the-counter sales, mail or phone order trans- placed in the hands of trusted agents for re- maintain security; in such cases easy access actions, electronic distribution, or sale on covery purposes. to keys destroys the encryption security so approval and not designed, developed or cus- Under new section 2803, in criminal inves- heavily relied upon. tomized by the manufacturer for specific tigations a third party holding decryption Under new section 2804, third parties hold- purchasers (except for installation or con- keys or other decryption assistance for wire ing decryption keys or other decryption as- figuration parameters).

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00086 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4725 (c) COMMERCE DEPARTMENT ASSURANCE.— cision to disapprove a Board decision that a nologies so that U.S. companies can ef- This section permits requests from manufac- product is commercially available is per- fectively compete in the global mar- turers or exporters to the Secretary for writ- mitted. ketplace. The bill will also prevent the (c) INCLUSION OF COMPARABLE FOREIGN ten assurance that a product is ‘‘generally government from mandating risky and available,’’ and requires that the Secretary ENCRYPTION PRODUCTS IN A UNITED STATES notify the petitioner of a decision within 30 PRODUCT NOT BAISS FOR EXPORT CONTROLS.— expensive ‘‘key-recovery’’ or ‘‘key-es- days. This section prohibits imposition of li- This section permits export under a license crow’’ encryption systems domesti- ability or sanctions on petitioners who re- exception of products incorporating or em- cally. It’s a good bill, it has broad sup- ceive such a written assurance for failing to ploying a foreign encryption product in the port from the computer and commu- obtain an export license. way it was intended to be used and that the nications industry, Internet users, and SEC. 303. License Exception for Products Board has determined to be commercially privacy advocates from both the left available outside the United States, without Without Encryption Capable of Working and right of the political spectrum. With Encryption Products. an export license and without restrictions This section permits export under a license other than those under the Act, after a 1- The Clinton Administration has ex- exception of products, which do not provide time 15 day review by the Secretary. pressed concerns about the impact the any encryption themselves, but that are ca- SEC. 306. No Export Controls on Encryption e-Privacy Act would have on the legiti- pable of working with encryption products, Products Used For Nonconfidentiality Pur- mate needs of law enforcement and na- without restriction other than those per- poses. tional security. My colleagues and I do mitted under this Act, after a 1-time, 15 day (a) PROHIBITION ON NEW CONTROLS.—This not take their concerns lightly. Sev- technical review by the Secretary. section prohibits restrictions on encryption exports used for nonconfidentiality purposes eral provisions in the e-Privacy Act ad- SEC. 304. License Exception For Product dress the Administration’s valid con- Support and Consulting Services. such as authentication, integrity, digital sig- (a) NO ADDITIONAL EXPORT CONTROLS IM- natures, nonrepudiation and copy protection. cerns while at the same time freeing POSED IF UNDERLYING PRODUCT COVERED BY (b) NO REINSTATEMENT OF CONTROLS ON U.S. companies to effectively compete LICENSE EXCEPTION.—This section permits PREVIOUSLY DECONTROLLED PRODUCTS.—This in the global marketplace, and ensur- export of product support and consulting section prohibits administratively imposed ing that the American people can trust services, including technical assistance and encryption controls on previously decon- trolled products not requiring an export li- the Internet as a secure means of com- technical data associated with the installa- merce, education, and free expression tion and maintenance of mass market cense as of January 1, 1998. SEC. 307. Applicability of General Export of ideas. encryption products or products capable of Controls. The e-Privacy Act would create a Na- working with encryption products without (a) SUBJECT TO TERRORISTS AND EMBARGO an export license and without restrictions tional Electronic Technology Center CONTROLS.—Nothing in the Act shall limit other than those permitted under this Act. (‘‘NET Center’’) to serve as a central the President’s authority under the Inter- point for information and assistance to (b) DEFINITIONS.—This section defines tech- national Emergency Economic Powers Act, nical assistance as services, such as instruc- the Trading With the Enemy Act, or the Ex- federal, state, and local law enforce- tion, skills training, working knowledge, port Administration Act to prohibit export ment authorities to address the tech- consulting services and transfer of technical of encryption products to countries that nical difficulties of obtaining elec- data. ‘‘Technical data’’ is defined as informa- have repeatedly provided support for inter- tronic information because of tion, including blueprints, plans, diagrams, national terrorism, or impose an embargo on models, formulae, table, engineering designs encryption. National security and law exports or imports from a specific country. enforcement would be given seats at and specifications, manuals and instructions. (b) SUBJECT TO SPECIFIC DENIALS FOR SPE- the table in making these determina- SEC. 304. License Exception When Com- CIFIC REASONS.—The Secretary is required to parable Foreign Products Available. prohibit export of encryption products to an tions. Once again, I am very sensitive (a) FOREIGN AVAILABILITY STANDARD.—This individual or organization in a specific for- to the legitimate needs of national se- section permits unrestricted export of cus- eign country identified by the Secretary, if curity and law enforcement, and I tomized encryption hardware and software the Secretary determines that there is sub- think the provisions made in the e-Pri- products (i.e., not generally available mass stantial evidence that such encryption prod- vacy Act address them. market products) if a foreign encryption uct will be used for military or terrorist end- product using the same or greater key length The e-Privacy Act also extends to use, including acts against the critical infra- citizens that same privacy rights that or providing comparable security is, or will structure of the United States. within 18 months, be commercially available (c) OTHER EXPORT CONTROLS REMAIN APPLI- they have in their homes to their dig- outside the United States. CABLE.—Encryption products remain subject ital property in cyberspace. The bill (b) DETERMINATION OF FOREIGN AVAIL- to all export controls imposed for reasons would require a court order or sub- ABILITY.—This section establishes an other than the existence of encryption capa- poena to obtain either the plaintext or Encryption Export Advisory Board (the bilities, and the Secretary retains the au- decryption key from their parties. I be- ‘‘Board’’), which is chaired by the Under Sec- thority to control exports of products for retary of Commerce for Export Administra- lieve that this is the correct approach. reasons other than encryption. Citizens are also specifically given tion, with seven Presidential appointees (3 SEC. 308. Foreign Trade Barriers to United government and 4 private sector representa- States Products. the right to use whatever kind of tives); and four Congressional appointees The Secretary, in consultation with the encryption software at whatever from the private sector. The Board is re- United States Trade Representative, is re- strength they choose. The bill recog- quired to meet at the call of the Chairman, quired within 180 days of enactment of the nizes the folly of requiring the govern- or if there are any pending applications for a Act to: (1) identify foreign barriers to the ex- ment to create procedures to license license exception, the Board shall meet at port of U.S. encryption products; (2) initiate ‘‘key certificate authorities’’ and ‘‘key- least once every 30 days. appropriate actions to address such barriers; The primary duties of the Board shall be to and (3) submit to Congress a report on the recovery agents,’’ as well as require the determine whether comparable foreign actions taken under this section. development of a massive and com- encryption products are commercially avail- Mr. BURNS. Mr. President, I stand plicated infrastructure to ensure that able outside the United States. The decision before the chamber today in support of the government could recover the right is by majority vote, and must be made with- the e-Privacy Act because the very fu- key out of the hundreds of millions of in 30 days of receipt of application for a li- ture of electronic commerce on the keys in real time. cense exception. The Board must notify the Internet is being held hostage to cold- On many occasions, the world’s lead- Secretary of its determination, and submit a war era export controls. These out- ing cryptographers concluded that report to the President within 30 days. Board building such a key recovery infra- meetings are exempt from the Federal Advi- dated regulations tie the hands of the sory Committee Act. U.S. high technology industry and pose structure would be prohibitively expen- The Secretary is required to approve or a threat to privacy and security of all sive and would create a less secure net- disapprove each Board determination within Americans who use the Internet. De- work. The bill recognizes that manda- 30 days of receipt of that determination, no- spite some small concessions by the tory key escrow will never work, no tify the Board of the approval or disapproval, Administration, the competitive ad- one will use it and certainly no crimi- and publish notice of the approval or dis- vantage of the U.S. high technology in- nals or other bad actors will use a sys- approval in the Federal Register. The notice dustries and the privacy and security tem that is immediately accessible by shall include an explanation in detail of the reasons for the decision, including why and of our citizens remain trapped by the the government. how continued export controls will be effec- Clinton Administration’s outdated pol- I urge my colleagues to support the tive and the amount of lost sales and market icy. e-Privacy Act, which I feel is the true share of U.S. encryption product which re- The e-Privacy Act will relax current compromise package. We all have the sulted. Judicial review of the Secretary’s de- export controls on encryption tech- same goals in mind—allowing for the

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00087 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4726 CONGRESSIONAL RECORD — SENATE May 12, 1998 continued growth of high tech indus- correct this problem. Congress passed to me personally. In the 20 years prior tries while not harming national secu- the Unfunded Mandates Reform Act in to the Civil War, more than 40,000 rity. If we move forward with the com- 1995 with the recognition that State slaves escaped bondage and made their promise bill being offered today, I am and local governments are not way- way to free soil on the trails of the Un- confident we can do both. ward subordinates who cannot be trust- derground Railroad. More than 150 key ed to run their own affairs, nor are Underground Railroad sites have been By Mr. THOMPSON (for himself they just more entities for the Federal identified in Ohio—sites that symbol- and Mr. GLENN): Government to regulate. They are our ized freedom for thousands of enslaved S. 2068. A bill to clarify the applica- partners in government. The Unfunded Americans. tion of the Unfunded Mandates Reform Mandates Reform Act was intended to When I visit these places, it gives me Act of 1995, and for other purposes; to force Congress to stop and think twice some real cause for hope about the fu- the Committee on the Budget and the before violating this partnership. It ture of America. When we talk about Committee on Governmental Affairs, does not preclude new mandates, but it race relations in this country, we jointly, pursuant to the order of Au- does give any member the right to would do well to remind ourselves that gust 4, 1977, with instructions that if raise a point of order against new man- at one of the darkest times in our na- one Committee reports, the other com- dates which would cost States or local- tion’s history—the period of slavery— mittee have 30 days to report or be dis- ities more than fifty million dollars. some blacks and whites took immense charged. To avoid the point of order, the personal risks to work together to lib- UNFUNDED MANDATES LEGISLATION House and Senate intended that the erate slaves. Mr. THOMPSON. Mr. President, I flexibility required under the Act be That is the part of the American rise today to introduce a bill to clarify new flexibility, concomitant with the story that we should be proud of—and the application of the Unfunded Man- mandate-imposing legislation, for build on. In Ohio, we are very proud of dates Reform Act of 1995. On its face, States to amend their responsibilities the part our ancestors played in this this legislation is necessary to correct to provide ‘‘required services’’—not op- great story—and why I think this legis- the Congressional Budget Office’s in- tional services. CBO is not reading the lation is so important. terpretation of the law as it applies to law as Congress intended. The bill I am Mr. President, I ask my colleagues to large entitlement programs. But more introducing today amends the Un- support this legislation. It is very im- fundamentally, it is a bill to force Con- funded Mandates Reform Act to clarify portant to recognize this period in our gress to abide by the spirit of the law that new flexibility is required to off- history. we passed in 1995 to discourage Con- set any new federally-imposed costs Mr. President, I ask unanimous con- gress from imposing costly new man- that States or localities will incur sent that the text of the bill be printed dates on States and local governments. under large entitlement programs. in the RECORD CBO’s performance in fulfilling its . I am pleased that Senator GLENN, an There being no objection, the bill was responsibilities under the Unfunded original cosponsor and conferee on the ordered to be printed in the RECORD, as Mandates Reform Act has been com- Unfunded Mandates Reform Act of 1995, follows: mendable. CBO cost estimates have has joined me in cosponsoring this bill been timely and sound, and analysts S. 2070 to clarify its application. Be it enacted by the Senate and House of Rep- have been responsive. However, I have Mr. President, I ask unanimous con- serious concern that CBO is misinter- resentatives of the United States of America in sent that the text of the bill be printed Congress assembled, preting the definition of ‘‘Federal in the RECORD. SECTION 1. UNDERGROUND RAILROAD EDU- intergovernmental mandate’’ as pro- There being no objection, the bill was CATIONAL AND CULTURAL PRO- vided in the law. The result is a loop- ordered to be printed in the RECORD, as GRAM. hole that makes the Unfunded Man- follows: (a) SHORT TITLE.—This section may be dates Reform Act inoperative for two- S. 2068 cited as the ‘‘Underground Railroad Edu- cational and Cultural Act’’. thirds of all federal aid to all govern- Be it enacted by the Senate and House of Rep- (b) PROGRAM ESTABLISHED.—The Secretary ments for all purposes. Every State, resentatives of the United States of America in of Education, in consultation and coopera- every municipality is justifiably con- Congress assembled, tion with the Secretary of the Interior, is au- cerned; indeed, it is with the strong SECTION 1. FEDERAL INTERGOVERNMENTAL thorized to make grants to 1 or more non- MANDATE. backing of the National Governors’ As- profit educational organizations that are es- sociation that I introduce this bill Section 421(5)(B) of the Congressional Budget and Impoundment Control Act of 1974 tablished to research, display, interpret, and today. (2 U.S.C. 658(5)(B)) is amended— collect artifacts relating to the history of The Unfunded Mandates Reform Act (1) by striking ‘‘the provision’’ after ‘‘if’’; the Underground Railroad. defined ‘‘federal intergovernmental (2) in clause (i)(I) by inserting ‘‘the provi- (c) GRANT AGREEMENT.—Each nonprofit mandate’’ with the intent to cover new sion’’ before ‘‘would’’; educational organization awarded a grant requirements or a cap on the federal (3) in clause (i)(II) by inserting ‘‘the provi- under this section shall enter into an agree- share of costs under Medicaid or other sion’’ before ‘‘would’’; and ment with the Secretary of Education. Each (4) in clause (ii)— such agreement shall require the organiza- large entitlement programs—unless the tion— legislation imposing the new mandates (A) by inserting ‘‘that legislation, statute, or regulation does not provide’’ before ‘‘the (1) to establish a facility to house, display, also provides new flexibility in the pro- and interpret the artifacts related to the his- gram to offset the cost. However, CBO State’’; and (B) by striking ‘‘lack’’ and inserting ‘‘new tory of the Underground Railroad; has taken the position that existing or expanded’’. (2) to demonstrate substantial private sup- flexibility is sufficient to offset the port for the facility through the implemen- cost of new mandates. For example, By Mr. DEWINE: tation of a public-private partnership be- CBO has determined that the current S. 2070. A bill to provide for an Un- tween a State or local public entity and a ability of States to reduce ‘‘optional’’ derground Railroad Educational and private entity for the support of the facility, which private entity shall provide matching Medicaid services is, in effect, the Cultural Program; to the Committee funds for the support of the facility in an flexibility called for in the law. If this on Labor and Human Resources. amount equal to 4 times the amount of the had been the intent of the drafters, THE UNDERGROUND RAILROAD EDUCATIONAL contribution of the State or local public en- there would have been no reason for AND CULTURAL ACT tity, except that not more than 20 percent of them to cover Medicaid under the Act Mr. DEWINE. Mr. President, today I the matching funds may be provided by the in the first place. CBO’s interpretation am introducing the Underground Rail- Federal Government; of the law largely removes the point of road Educational and Cultural Act. (3) to create an endowment to fund any and order as a tool to discourage new man- This legislation will provide for the es- all shortfalls in the costs of the on-going op- dates or cost-shifts to States under the tablishment of programs to research, erations of the facility; (4) to establish a network of satellite cen- large entitlement programs where display, interpret, and collect artifacts ters throughout the United States to help mandates tend to be the most burden- relating to the history of the Under- disseminate information regarding the Un- some and expensive. ground Railroad. derground Railroad throughout the United Let’s stop for a moment and consider Let me tell you how important the States, if such satellite centers raise 80 per- why it is so important that we act to Underground Railroad is to Ohio—and cent of the funds required to establish the

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00088 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4727 satellite centers from non-Federal public and certain documents relating to human Generation Internet program and re- private sources; rights abuses in Guatemala and Hon- port to the President and the Congress (5) to establish the capability to electroni- duras. in its activities, and for other purposes. cally link the facility with other local and S. 1244 regional facilities that have collections and S. 1645 programs which interpret the history of the At the request of Mr. GRASSLEY, the At the request of Mr. ABRAHAM, the Underground Railroad; and name of the Senator from Missouri name of the Senator from Minnesota (6) to submit, for each fiscal year for which (Mr. ASHCROFT) was added as a cospon- (Mr. GRAMS) was added as a cosponsor the organization receives funding under this sor of S. 1244, a bill to amend title 11, of S. 1645, a bill to amend title 18, section, a report to the Secretary of Edu- United States Code, to protect certain United States Code, to prohibit taking cation that contains— charitable contributions, and for other minors across State lines to avoid laws (A) a description of the programs and ac- purposes. requiring the involvement of parents in tivities supported by the funding; S. 1251 (B) the audited financial statement of the abortion decisions. At the request of Mr. D’AMATO, the organization for the preceding fiscal year; S. 1723 (C) a plan for the programs and activities name of the Senator from Iowa (Mr. HARKIN) was added as a cosponsor of S. At the request of Mr. ABRAHAM, the to be supported by the funding as the Sec- names of the Senator from Missouri retary may require; and 1251, a bill to amend the Internal Rev- (D) an evaluation of the programs and ac- enue Code of 1986 to increase the (Mr. BOND), the Senator from North tivities supported by the funding as the Sec- amount of private activity bonds which Carolina (Mr. FAIRCLOTH), the Senator retary may require. may be issued in each State, and to from Idaho (Mr. CRAIG), and the Sen- (d) AUTHORIZATION OF APPROPRIATIONS.— index such amount for inflation. ator from Washington (Mr. GORTON) There are authorized to be appropriated to S. 1252 were added as cosponsors of S. 1723, a carry out this section $6,000,000 for fiscal bill to amend the Immigration and Na- year 1999, $6,000,000 for fiscal year 2000, At the request of Mr. D’AMATO, the names of the Senator from Iowa (Mr. tionality Act to assist the United $6,000,000 for fiscal year 2001, $3,000,000 for fis- States to remain competitive by in- cal year 2002, and $3,000,000 for fiscal year HARKIN) and the Senator from Missouri 2003. (Mr. BOND) were added as cosponsors of creasing the access of the United f S. 1252, a bill to amend the Internal States firms and institutions of higher education to skilled personnel and by ADDITIONAL COSPONSORS Revenue Code of 1986 to increase the amount of low-income housing credits expanding educational and training op- S. 249 which may be allocated in each State, portunities for American students and At the request of Mr. D’AMATO, the and to index such amount for inflation. workers. name of the Senator from California S. 1321 S. 1981 (Mrs. BOXER) was added as a cosponsor At the request of Ms. MIKULSKI, her At the request of Mr. HUTCHINSON, of S. 249, a bill to require that health name was added as a cosponsor of S. the name of the Senator from Kansas plans provide coverage for a minimum 1321, a bill to amend the Federal Water (Mr. BROWNBACK) was added as a co- hospital stay for mastectomies and Pollution Control Act to permit grants sponsor of S. 1981, a bill to preserve the lymph node dissection for the treat- for the national estuary program to be balance of rights between employers, ment of breast cancer, coverage for re- used for the development and imple- employees, and labor organizations constructive surgery following mentation of a comprehensive con- which is fundamental to our system of mastectomies, and coverage for sec- servation and management plan, to re- collective bargaining while preserving ondary consultations. authorize appropriations to carry out the rights of workers to organize, or S. 632 the program, and for other purposes. otherwise engage in concerted activi- At the request of Mr. KOHL, the name S. 1344 ties protected under the National of the Senator from Oregon (Mr. SMITH) At the request of Mr. BROWNBACK, the Labor Relations Act. was added as a cosponsor of S. 632, a name of the Senator from Arizona (Mr. S. 2017 bill to amend the Internal Revenue KYL) was added as a cosponsor of S. Code of 1986 with respect to the eligi- At the request of Mr. D’AMATO, the 1344, a bill to amend the Foreign As- names of the Senator from Iowa (Mr. bility of veterans for mortgage revenue sistance Act of 1961 to target assist- bond financing, and for other purposes. HARKIN), and the Senator from Ken- ance to support the economic and po- ORD S. 719 tucky (Mr. F ) were added as co- litical independence of the countries of sponsors of S. 2017, a bill to amend title At the request of Mr. WELLSTONE, the South Caucasus and Central Asia. name of the Senator from Wisconsin XIX of the Social Security Act to pro- S. 1464 vide medical assistance for breast and (Mr. FEINGOLD) was added as a cospon- At the request of Mr. HATCH, the sor of S. 719, a bill to expedite the nat- cervical cancer-related treatment serv- name of the Senator from Connecticut ices to certain women screened and uralization of aliens who served with (Mr. DODD) was added as a cosponsor of special guerrilla units in Laos. found to have breast or cervical cancer S. 1464, a bill to amend the Internal under a Federally funded screening S. 852 Revenue Code of 1986 to permanently program. At the request of Mr. LOTT, the name extend the research credit, and for of the Senator from Wyoming (Mr. other purposes. S. 2053 ARNER ENZI) was added as a cosponsor of S. S. 1529 At the request of Mr. W , the 852, a bill to establish nationally uni- At the request of Mr. BIDEN, his name name of the Senator from Virginia (Mr. form requirements regarding the ti- was added as a cosponsor of S. 1529, a ROBB) was added as a cosponsor of S. tling and registration of salvage, non- bill to enhance Federal enforcement of 2053, a bill to require the Secretary of repairable, and rebuilt vehicles. hate crimes, and for other purposes. the Treasury to redesign the $1 bill so S. 1089 S. 1609 as to incorporate the preamble to the At the request of Mr. SPECTER, the At the request of Mr. FRIST, the Constitution of the United States, the name of the Senator from North Da- name of the Senator from Vermont Bill of Rights, and a list of Articles of kota (Mr. DORGAN) was added as a co- (Mr. JEFFORDS) was added as a cospon- the Constitution on the reverse side of sponsor of S. 1089, a bill to terminate sor of S. 1609, a bill to amend the High- such currency. the effectiveness of certain amend- Performance Computing Act of 1991 to SENATE CONCURRENT RESOLUTION 88 ments to the foreign repair station authorize appropriations for fiscal At the request of Mr. D’AMATO, the rules of the Federal Aviation Adminis- years 1999 and 2000 for the Next Genera- names of the Senator from North Da- tration, and for other purposes. tion Internet program, to require the kota (Mr. CONRAD) and the Senator S. 1220 Advisory Committee on High-Perform- from Nevada (Mr. REID) were added as At the request of Mr. DODD, the name ance Computing and Communications, cosponsors of Senate Concurrent Reso- of the Senator from Massachusetts Information Technology, and the Next lution 88, A concurrent resolution call- (Mr. KENNEDY) was added as a cospon- Generation Internet to monitor and ing on Japan to establish and maintain sor of S. 1220, a bill to provide a process give advice concerning the develop- an open, competitive market for con- for declassifying on an expedited basis ment and implementation of the Next sumer photographic film and paper and

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00089 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4728 CONGRESSIONAL RECORD — SENATE May 12, 1998 other sectors facing market access bar- ing long-term care costs and about the need As a country, we need to have better riers in Japan. for families to plan for their long-term care alternatives so that our Golden Years needs; SENATE RESOLUTION 176 can be lived out with dignity. Our job (2) the Federal Government should take all At the request of Mr. DOMENICI, the as policy makers is to inform the pub- appropriate steps to inform the public that lic of the importance of planning names of the Senator from West Vir- Medicare does not cover most long-term care ginia (Mr. BYRD), the Senator from costs and that Medicaid covers long-term ahead. Employers need to be encour- Minnesota (Mr. WELLSTONE), the Sen- care costs only when the beneficiary has ex- aged to make private long-term care ator from New Mexico (Mr. BINGAMAN), hausted his or her assets; insurance coverage available to their the Senator from Georgia (Mr. COVER- (3) the Federal Government should take all employees. In turn, families should be appropriate steps not only to encourage em- DELL), and the Senator from Oregon encouraged to prepare themselves fi- ployers to offer private long-term care insur- nancially well in advance for this po- (Mr. SMITH) were added as cosponsors ance coverage to employees, but also to en- of Senate Resolution 176, a resolution tential expense. courage both working-aged people and older A similar proposal by my fellow Con- proclaiming the week of October 18 citizens to obtain long-term care insurance necticut colleague in the House of Rep- through October 24, 1998, as ‘‘National either through their employees or on their resentatives, Congressman CHRIS Character Counts Week.’’ own; (4) appropriate committees of Congress, to- SHAYS, has received strong bi-partisan f gether with the Department of Health and support. My hope is that this common- SENATE CONCURRENT RESOLU- Human Services and other appropriate Exec- sense, forward-looking proposal will re- TION 95—EXPRESSING THE utive Branch agencies, should develop spe- ceive the same kind of support by my SENSE OF CONGRESS WITH RE- cific ideas for encouraging Americans to colleagues here in the Senate. This plan for their own long-term care needs; SPECT TO PROMOTING COV- Senate resolution truly represents an (5) the congressional tax-writing commit- investment in our future. ERAGE OF INDIVIDUALS UNDER tees, together with the Department of the LONG-TERM CARE INSURANCE Mr. GRASSLEY. Mr. President, Treasury should determine whether the tax today I am pleased to join Senator Mr. DODD (for himself and Mr. rules for long-term care insurance need to be modified to ensure that the rules adequately DODD in submitting a common-sense GRASSLEY) submitted the following facilitate the affordability of long-term care Senate resolution to raise public concurrent resolution; which was re- insurance; and awareness of the need for all Ameri- ferred to the Committee on Finance: (6) the National Summit on Retirement In- cans to plan ahead for their long-term S. CON. RES. 95 come Savings should consider the impor- care needs. Resolved by the Senate (the House of Rep- tance of planning for long-term care in its Earlier this year, the Special Com- resentatives concurring), discussion of retirement security. mittee on Aging, which I chair, held a SECTION 1. PROMOTION OF COVERAGE OF INDI- Mr. DODD. Mr. President, I am hearing to explore the challenges of VIDUALS UNDER LONG-TERM CARE pleased to submit, with my colleague providing long-term care for the baby INSURANCE. Senator GRASSLEY, a Senate resolution boomer generation. A key message (a) FINDINGS.—The Congress finds the fol- that will focus attention on an ex- from that hearing was that policy lowing: tremely important health care issue makers need to encourage personal re- (1) As the baby boom generation begins to retire, funding Social Security and Medicare for American families—long-term care sponsibility for financing long-term will put a strain on the financial resources of needs. care. younger Americans. Rapidly increasing long-term care It is difficult to pay for long-term (2) Medicaid was designed as a program for costs pose huge financial risks to fami- care even when one has worked hard the poor, but in many States Medicaid is lies. With the average cost of nursing and saved for retirement. It’s impos- being used for middle income elderly people home care at $40,000 per year, early sible when a family is not prepared. to fund long-term care expenses. planning is required to ensure that Unfortunately, many seniors and their (3) In the coming decade, people over age 65 long-term care needs don’t leave the families find out too late that they will represent up to 20 percent or more of the spouses or children of the elderly and have not saved enough. Today’s aver- population, and the proportion of the popu- disabled destitute. age cost of nursing home care is about lation composed of individuals who are over What most Americans do not realize age 85, who are most likely to be in need of $40,000 a year. When individuals are long-term care, may double or triple. is that Medicare is very limited in the faced with a chronic or disabling condi- (4) With nursing home care now costing type of long-term costs it covers. Medi- tion in retirement, they often quickly $40,000 to $50,000 on average per year, long- care only provides coverage for exhaust their resources. As a result, term care expenses can have a catastrophic ‘‘acute’’ health care costs, such as these individuals turn to Medicaid for effect on families, wiping out a lifetime of short-term stays in certain kinds of help. In fact, the care for nearly 2 out savings before a spouse, parent, or grand- nursing homes, or short-term nursing of every 3 nursing home residents is parent becomes eligible for Medicaid. care in the home following a hos- paid for by Medicaid. (5) Many people are unaware that most pitalization. Medicare was never meant As policy makers, our job is to de- long-term care costs are not covered by Medicare and that Medicaid covers long- to cover chronic long-term health velop policies for public programs that term care only after the person’s assets have needs. can deliver efficient and cost-effective been exhausted. Medicaid does offer assistance with services. Yet, equally important is the (6) Widespread use of private long-term long-term costs, but only after an indi- role of private long-term care financ- care insurance has the potential to protect vidual has totally exhausted his or her ing. We must inform everyone about families from the catastrophic costs of long- assets. This means that families must the importance of planning for poten- term care services while, at the same time, become completely impoverished in tial long-term care needs. And, we easing the burden on Medicaid as the baby order to get Medicaid coverage for must provide incentives now for the boom generation ages. nursing home care. baby boomer generation to prepare fi- (7) The Federal Government has endorsed What fills in the gaps? We know that nancially for their retirement. the concept of private long-term care insur- sixty-five percent of many elderly who ance by establishing Federal tax rules for As Congress works to prepare for a tax-qualified policies in the Health Insur- live at home and need help rely exclu- growing demand for long-term care ance Portability and Accountability Act of sively on unpaid sources, such as fam- services, the role of private long-term 1996. ily and friends. But this help is not care insurance must not be ignored. (8) The Federal Government has ensured without a price—it takes a huge toll on Over the past ten years, the long-term the availability of quality long-term care in- families. Caregiving frequently com- care insurance market has grown sig- surance products and sales practices by petes with the demand of employment nificantly. The products that are avail- adopting strict consumer protections in the and requires caregivers to reduce work able today are affordable and of high Health Insurance Portability and Account- hours, take time off without pay, or quality. ability Act of 1996. quit their jobs. Families whose mem- This common-sense proposal has also (b) SENSE OF CONGRESS.—It is the sense of the Congress that— bers must be in institutional settings been introduced in the House of Rep- (1) the Federal Government should take all often exhaust all of their resources resentatives by Congress SHAYS where appropriate steps to inform the public about paying privately for nursing home it has received strong bi-partisan sup- the financial risks posed by rapidly increas- care. port. I encourage my colleagues in the

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00090 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4729 Senate to so-sponsor this worthwhile BACK, Senator GLENN, and myself, I ROCKEFELLER, and Ms. COLLINS) pro- proposal. And, I look forward to the send to the desk for reference to com- posed an amendment to the bill (S. passage of this resolution this year. mittee a sense-of-the-Senate resolution 1046) to authorize appropriations for f which, in essence, deals with the explo- fiscal years 1998 and 1999 for the Na- sion of three nuclear devices by the tional Science Foundation, and for SENATE RESOLUTION 227—EX- Government of India yesterday. As this other purposes; as follows: PRESSING THE SENSE OF THE body well knows, the Government of SENATE REGARDING THE MAY SECTION 1. SHORT TITLE. India conducted underground tests on 11, 1998 INDIAN NUCLEAR TESTS This Act may be cited as the ‘‘National three separate nuclear explosive de- Science Foundation Authorization Act of Mrs. FEINSTEIN (for herself, Mr. vices, including a fission device, a low- 1998’’. BROWNBACK, and Mr. GLENN) submitted yield device, and a thermonuclear de- SEC. 2. DEFINITIONS. the following resolution; which was re- vice. They did this also very close to In this Act: ferred to the Committee on Foreign the border of Pakistan, thereby raising (1) DIRECTOR.—The term ‘‘Director’’ means Relations: tensions between the two countries and the Director of the National Science Founda- tion established under section 2 of the Na- S. RES. 227 in the entire south Asia region. tional Science Foundation Act of 1950 (42 Whereas the Government of India con- This sense of the Senate will con- U.S.C. 1861). ducted an underground nuclear explosion on demn that explosion in the strongest (2) FOUNDATION.—The term ‘‘Foundation’’ May 15, 1974; possible terms and will call upon the means the National Science Foundation es- Whereas since the 1974 nuclear test by the tablished under section 2 of the National Government of India, the United States and President of the United States to carry out the provisions of the Nuclear Pro- Science Foundation Act of 1950 (42 U.S.C. its allies have worked extensively to prevent 1861). the further proliferation of nuclear weapons liferation Prevention Act of 1994 with (d) BOARD.—The term ‘‘Board’’ means the in South Asia; respect to India and invoke all sanc- National Science Board established under Whereas on May 11, 1998, the Government tions therein. section 2 of the National Science Foundation of India conducted underground tests of It will also call upon the Government Act of 1950 (42 U.S.C. 1861). three separate nuclear explosive devices, in- of India to take immediate steps to re- (4) UNITED STATES.—The term ‘‘United cluding a fission device, a low-yield device, duce tensions that this unilateral and States’’ means the several States, the Dis- and a thermo-nuclear device; trict of Columbia, the Commonwealth of Whereas this decision by the Government unnecessary step has caused. Puerto Rico, the Virgin Islands, Guam, of India has needlessly raised tension in the I am aware that Senator BROWN- American Samoa, the Commonwealth of the South Asia region and threatens to exacer- BACK’s subcommittee, of which I am a Northern Mariana Islands, and any other ter- bate the nuclear arms race in that region; member, will be meeting tomorrow, Whereas the five declared nuclear weapons ritory or possession of the United States. and will be discussing this issue, and, (5) NATIONAL RESEARCH FACILITY.—The states and 144 other nations have signed the hopefully, will be able to agree to this term ‘‘national research facility’’ means a Comprehensive Test Ban Treaty in hopes of research facility funded by the Foundation putting a permanent end to nuclear testing; resolution. Whereas the Government of India has re- I am delighted to work with the Sen- which is available, subject to appropriate fused to sign the Comprehensive Test Ban ator, and I note that he is present on policies allocating access, for use by all sci- Treaty; the floor at this time, so I will say no entists and engineers affiliated with research Whereas the Government of India has re- more but simply send this to the desk. institutions located in the United States. fused to sign the Nuclear Non-Proliferation The PRESIDING OFFICER. The Sen- TITLE I—NATIONAL SCIENCE FOUNDATION AUTHORIZATION Treaty; ator from Kansas. Whereas India has refused to enter into a SEC. 101. FINDINGS; CORE STRATEGIES. safeguards agreement with the International Mr. BROWNBACK. Mr. President, I would like to note my support for the (a) FINDINGS.—Congress finds the fol- Atomic Energy Agency covering any of its lowing: nuclear research facilities; resolution of my colleague from Cali- (1) The United States depends upon its sci- Whereas the Nuclear Proliferation Preven- fornia. I think this is an important, entific and technological capabilities to pre- tion Act of 1994 requires the President to im- quick statement for us to be making to serve the military and economic security of pose a variety of aid and trade sanctions the Government of India and to the na- the United States. against any non-nuclear weapons state that tions in the region, both Pakistan and (2) America’s leadership in the global mar- detonates a nuclear explosive device; There- ketplace is dependent upon a strong commit- fore, be it China in particular. The nuclear test that took place yesterday will have a ment to education, basic research, and devel- Resolved, That the Senate opment. (1) Condemns in the strongest possible tremendously destabilizing impact in (3) A nation that is not technologically lit- terms the decision of the Government of the region. It was a bad move on the erate cannot compete in the emerging global India to conduct three nuclear tests on May part of the Government of India. I economy. 11, 1998; think this is something the U.S. Sen- (4) A coordinated commitment to mathe- (2) Calls upon the President to carry out ate needs to speak out on clearly and matics and science instruction at all levels the provisions of the Nuclear Proliferation of education is a necessary component of Prevention Act of 1994 with respect to India quickly, to state our displeasure, and that this will have consequences to it. successful efforts to produce technologically and invoke all sanctions therein; literate citizens. (3) Calls upon the Government of India to I urge the administration to put for- (5) Professional development is a necessary take immediate steps to reduce tensions that ward the sanctions that are called for component of efforts to produce system wide this unilateral and unnecessary step has in the Glenn amendment. I don’t think improvements in mathematics, engineering, caused; we can stand by and tolerate the sort and science education in secondary, elemen- (4) Expresses its regret that this decision of actions that have taken place. I urge tary, and postsecondary settings. by the Government of India will, of neces- (6)(A) The mission of the National Science sity, negatively affect relations between the my colleagues to look at this resolu- tion, to sign on. Hopefully, we can pass Foundation is to provide Federal support for United States and India; basic scientific and engineering research, (5) Urges the Government of Pakistan, the this in an expedited fashion. and to be a primary contributor to mathe- Government of the People’s Republic of f matics, science, and engineering education China, and all governments to exercise re- at academic institutions in the United straint in response to the Indian nuclear AMENDMENTS SUBMITTED States. tests, in order to avoid further exacerbating (B) In accordance with such mission, the the nuclear arms race in South Asia; long-term goals of the National Science (6) Calls upon all governments in the re- THE NATIONAL SCIENCE FOUNDA- Foundation include providing leadership to— gion to take steps to prevent further pro- TION AUTHORIZATION ACT OF (i) enable the United States to maintain a liferation of nuclear weapons and ballistic 1998 position of world leadership in all aspects of missiles; and science, mathematics, engineering, and tech- (7) Urges the Government of India to enter nology; into a safeguards agreement with the Inter- (ii) promote the discovery, integration, national Atomic energy Agency which would MCCAIN (AND OTHERS) dissemination, and application of new cover all Indian nuclear research facilities at AMENDMENT NO. 2386 knowledge in service to society; and the earliest possible time. Mr. JEFFORDS (for Mr. MCCAIN, for (iii) achieve excellence in United States Mrs. FEINSTEIN. Mr. President, at himself, Mr. HOLLINGS, Mr. JEFFORDS, science, mathematics, engineering, and tech- this time, on behalf of Senator BROWN- Mr. KENNEDY, Mr. FRIST, Mr. nology education at all levels.

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(b) CORE STRATEGIES.—In carrying out ac- (iv) $507,310,000 shall be made available for (B) estimates of the costs for the operation tivities designed to achieve the goals de- Geosciences; and maintenance of existing and proposed scribed in subsection (a), the Foundation (v) $792,030,000 shall be made available for new facilities; and shall use the following core strategies: Mathematical and Physical Sciences; (C) in the case of proposed new construc- (1) Develop intellectual capital, both peo- (vi) $150,260,000 shall be made available for tion and for major upgrades to existing fa- ple and ideas, with particular emphasis on Social, Behavioral, and Economic Sciences, cilities, funding profiles, by fiscal year, and groups and regions that traditionally have of which up to $2,000,000 may be made avail- milestones for major phases of the construc- not participated fully in science, mathe- able for the U.S.-Mexico Foundation for tion. matics, and engineering. Science; (3) SPECIAL RULE.—The plan shall include (2) Strengthen the scientific infrastructure (vii) $182,360,000 shall be made available for cost estimates in the categories of construc- by investing in facilities planning and mod- United States Polar Research Programs; tion, repair, and upgrades— ernization, instrument acquisition, instru- (viii) $62,600,000 shall be made available for (A) for the year in which the plan is sub- ment design and development, and shared- United States Antarctic Logistical Support mitted to Congress; and use research platforms. Activities; (B) for not fewer than the succeeding 4 (3) Integrate research and education (ix) $2,730,000 shall be made available for years. through activities that emphasize and the Critical Technologies Institute; and (b) STATUS OF FACILITIES UNDER CONSTRUC- strengthen the natural connections between (B) $683,000,000 shall be made available to TION.—The plan required under subsection (a) learning and inquiry. carry out Education and Human Resources shall include a status report for each (4) Promote partnerships with industry, el- Activities; uncompleted construction project included ementary and secondary schools, community (C) $94,000,000 shall be made available for in current and previous plans. The status re- colleges, colleges and universities, other Major Research Equipment; port shall include data on cumulative con- agencies, State and local governments, and (D) $144,000,000 shall be made available for struction costs by project compared with es- other institutions involved in science, math- Salaries and Expenses; and timated costs, and shall compare the current ematics, and engineering to enhance the de- (E) $5,200,000 shall be made available for and original schedules for achievement of livery of math and science education and im- the Office of Inspector General. milestones for the major phases of the con- prove the technological literacy of the citi- (c) FISCAL YEAR 2000.— struction. (1) IN GENERAL.—There are authorized to be zens of the United States. SEC. 202. ADMINISTRATIVE AMENDMENTS. appropriated to the Foundation $3,886,190,000 (a) NATIONAL SCIENCE FOUNDATION ACT OF SEC. 102. AUTHORIZATION OF APPROPRIATIONS. for fiscal year 2000. 1950 AMENDMENTS.—The National Science (a) FISCAL YEAR 1998.— (2) SPECIFIC ALLOCATIONS.—Of the amount (1) IN GENERAL.—There are authorized to be authorized under paragraph (1)— Foundation Act of 1950 (42 U.S.C. 1861 et seq.) appropriated to the Foundation $3,505,630,000 (A) $2,935,024,000 shall be made available to is amended— for fiscal year 1998. carry out Research and Related Activities, of (1) in section 4(g) (42 U.S.C. 1863(g))— (A) by striking ‘‘the appropriate rate pro- (2) SPECIFIC ALLOCATIONS.—Of the amount which up to— authorized under paragraph (1)— (i) $2,000,000 may be made available for the vided for individuals in grade GS–18 of the (A) $2,576,200,000 shall be made available to U.S.-Mexico Foundation for Science; General Schedule under section 5332’’ and in- carry out Research and Related Activities, of (ii) $25,000,000 may be made available for serting ‘‘the maximum rate payable under which— the Next Generation Internet program; section 5376’’; and (i) $370,820,000 shall be made available for (B) $703,490,000 shall be made available to (B) by redesignating the second subsection Biological Sciences; carry out Education and Human Resources (k) as subsection (l); (ii) $289,170,000 shall be made available for Activities; (2) in section 5(e) (42 U.S.C. 1854(e)) by Computer and Information Science and Engi- (C) $94,000,000 shall be made available for striking paragraph (2), and inserting the fol- neering; Major Research Equipment; lowing: (iii) $360,470,000 shall be made available for (D) $148,320,000 shall be made available for ‘‘(2) Any delegation of authority or imposi- Engineering; Salaries and Expenses; and tion of conditions under paragraph (1) shall (iv) $455,110,000 shall be made available for (E) $5,356,000 shall be made available for be promptly published in the Federal Reg- Geosciences; the Office of Inspector General. ister and reported to the Committee on Labor and Human Resources, and the Com- (v) $715,710,000 shall be made available for SEC. 103. PROPORTIONAL REDUCTION OF RE- Mathematical and Physical Sciences; SEARCH AND RELATED ACTIVITIES mittee on Commerce, Science, and Transpor- (vi) $130,660,000 shall be made available for AMOUNTS. tation, of the Senate and the Committee on Social, Behavioral, and Economic Sciences, If the amount appropriated pursuant to Science of the House of Representatives.’’; of which up to $1,000,000 may be made avail- section 102(a)(2)(A) or (b)(2)(A) is less than (3) in section 14(c) (42 U.S.C. 1873(c))— able for the U.S.-Mexico Foundation for the amount authorized under that para- (A) by striking ‘‘shall receive’’ and insert- Science; graph, the amount available for each sci- ing ‘‘shall be entitled to receive’’; (vii) $165,930,000 shall be made available for entific directorate under that paragraph (B) by striking ‘‘the rate specified for the United States Polar Research Programs; shall be reduced by the same proportion. daily rate for GS–18 of the General Schedule under section 5332’’ and inserting ‘‘the max- (viii) $62,600,000 shall be made available for SEC. 104. CONSULTATION AND REPRESENTATION United States Antarctic Logistical Support EXPENSES. imum rate payable under section 5376’’; and (C) by adding at the end the following ‘‘For Activities; From appropriations made under author- the purpose of determining the payment of (ix) $2,730,000 shall be made available for izations provided in this Act, not more than compensation under this subsection, the the Critical Technologies Institute; and $10,000 may be used in each fiscal year for of- time spent in travel by any member of the (x) $23,000,000 shall be made available for ficial consultation, representation, or other Board or any member of a special commis- the Next Generation Internet program; extraordinary expenses. The Director shall sion shall be deemed as time engaged in the (B) $632,500,000 shall be made available to have the discretion to determine the ex- business of the Foundation. Members of the carry out Education and Human Resources penses (as described in this section) for Board and members of special commissions Activities; which the funds described in this section may waive compensation and reimbursement (C) $155,130,000 shall be made available for shall be used. Such a determination by the for traveling expenses.’’; and Major Research Equipment; Director shall be final and binding on the ac- (D) $136,950,000 shall be made available for (4) in section 15(a) (42 U.S.C. 1874(a)), by counting officers of the Federal Government. Salaries and Expenses; and striking ‘‘Atomic Energy Commission’’ and (E) $4,850,000 shall be made available for SEC. 105. UNITED STATES MAN AND THE BIO- inserting ‘‘Secretary of Energy’’. SPHERE PROGRAM LIMITATION. the Office of Inspector General. (b) NATIONAL SCIENCE FOUNDATION AUTHOR- No funds appropriated pursuant to this Act (b) FISCAL YEAR 1999.— IZATION ACT, 1976 AMENDMENTS.—Section 6(a) shall be used for the United States Man and (1) IN GENERAL.—There are authorized to be of the National Science Foundation Author- the Biosphere Program, or related projects. appropriated to the Foundation $3,773,000,000 ization Act, 1976 (42 U.S.C. 1881a(a)) is for fiscal year 1999. TITLE II—GENERAL PROVISIONS amended by striking ‘‘social,’’ the first place (2) SPECIFIC ALLOCATIONS.—Of the amount SEC. 201. NATIONAL RESEARCH FACILITIES. it appears. authorized under paragraph (1)— (a) FACILITIES PLAN.— (c) NATIONAL SCIENCE FOUNDATION AUTHOR- (A) $2,846,800,000 shall be made available to (1) IN GENERAL.—Not later than December IZATION ACT OF 1988 AMENDMENTS.—Section carry out Research and Related Activities, of 1, of each year, the Director shall, as part of 117(a) of the National Science Foundation which— the annual budget request, prepare and sub- Authorization Act of 1988 (42 U.S.C. 1881b(a)) (i) $417,820,000 shall be made available for mit to Congress a plan for the proposed con- is amended— Biological Sciences; struction of, and repair and upgrades to, na- (1) by striking paragraph (1)(B)(v) and in- (ii) $331,140,000 shall be made available for tional research facilities. serting the following: Computer and Information Science and Engi- (2) CONTENTS OF THE PLAN.—The plan shall ‘‘(v) from schools established outside the neering, including $25,000,000 for the Next include— several States and the District of Columbia Generation Internet program; (A) estimates of the costs for the construc- by any agency of the Federal Government (iii) $400,550,000 shall be made available for tion, repairs, and upgrades described in para- for dependents of the employees of such Engineering; graph (1); agency.’’; and

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00092 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4731 (2) in paragraph (3)(A) by striking ‘‘Science cost reimbursement rates, and the distribu- sistent with applicable Federal law (includ- and Engineering Education’’ and inserting tion by type of entity of the Federal indirect ing Executive Order No. 12999), donate educa- ‘‘Education and Human Resources’’. cost reimbursement rates; and tionally useful Federal equipment to schools (d) SCIENCE AND ENGINEERING EQUAL OP- (ii) the Federal indirect cost reimburse- in order to enhance the science and mathe- PORTUNITIES ACT AMENDMENTS.—The Science ment (as calculated in accordance with Of- matics programs of those schools. and Engineering Equal Opportunities Act (42 fice of Management and Budget Circular A– (2) REPORTS.— U.S.C. 1885 et seq.) is amended— 21), the rate of change of the Federal indirect (A) IN GENERAL.—Not later than 1 year (1) in section 34 (42 U.S.C. 1885b)— cost reimbursement, the distribution by cat- after the date of enactment of this Act, and (A) by striking the section heading and in- egory of the Federal indirect cost reimburse- annually thereafter, the Director shall pre- serting the following: ment, and the distribution by type of entity pare and submit to the President a report ‘‘PARTICIPATION IN SCIENCE AND ENGINEERING of the Federal indirect cost reimbursement; that meets the requirements of this para- OF MINORITIES AND PERSONS WITH DISABIL- (D) analyzing the impact, if any, of Federal graph. The President shall submit that re- ITIES’’; and State law on the Federal indirect cost port to Congress at the same time as the President submits a budget request to Con- and reimbursement rates; gress under section 1105(a) of title 31, United (B) by striking subsection (b) and inserting (E)(i) analyzing options to reduce or con- States Code. the following: trol the rate of growth of the Federal indi- (B) CONTENTS OF REPORT.—The report pre- ‘‘(b) The Foundation is authorized to un- rect cost reimbursement rates, including op- pared by the Director under this paragraph dertake or support programs and activities tions such as benchmarking of facilities and shall describe any donations of educationally to encourage the participation of persons equipment cost, elimination of cost studies, useful Federal equipment to schools made with disabilities in the science and engineer- mandated percentage reductions in the Fed- during the period covered by the report. ing professions.’’; and eral indirect cost reimbursement; and (2) in section 36 (42 U.S.C. 1885c)— (ii) assessing the benefits and burdens of SEC. 207. REPORT ON RESERVIST EDUCATION ISSUES. (A) in subsection (a), by striking ‘‘minori- the options to the Federal Government, re- (a) CONVENING APPROPRIATE REPRESENTA- ties,’’ and all that follows through ‘‘in sci- search institutions, and researchers; and TIVES.—The Director of the National Science entific’’ and inserting ‘‘minorities, and per- (F) analyzing options for creating a data- Foundation, with the assistance of the Office sons with disabilities in scientific’’; base— of Science and Technology Policy, shall con- (B) in subsection (b)— (i) for tracking the Federal indirect cost (i) by striking ‘‘with the concurrence of reimbursement rates and the Federal indi- vene appropriate officials of the Federal the National Science Board’’; and rect cost reimbursement; and Government and appropriate representatives (ii) by striking the second sentence and in- (ii) for analyzing the impact that changes of the postsecondary education community serting the following: ‘‘In addition, the in policies with respect to Federal indirect and of members of reserve components of the Chairman of the National Science Board may cost reimbursement will have on the Federal Armed Forces for the purpose of discussing designate a member of the Board as a mem- Government, researchers, and research insti- and seeking a consensus on the appropriate ber of the Committee.’’; (C) by striking sub- tutions. resolution to problems relating to the aca- section (c) and (d); (D) by inserting after sub- (2) REPORT TO CONGRESS.—The report pre- demic standing and financial responsibilities section (b) the following: pared under paragraph (1) shall be submitted of postsecondary students called or ordered ‘‘(c) The Committee shall be responsible to Congress not later than 1 year after the to active duty in the Armed Forces. for reviewing and evaluating all Foundation date of enactment of this Act. (b) REPORT TO CONGRESS.—Not later than matters relating to opportunities for the SEC. 204. FINANCIAL DISCLOSURE. 90 days after the date of the enactment of participation in, and the advancement of, Persons temporarily employed by or at the this Act, the Director of the National women, minorities, and persons with disabil- Foundation shall be subject to the same fi- Science Foundation shall transmit to the ities in education, training, and science and nancial disclosure requirements and related Congress a report summarizing the results of engineering research programs.’’; sanctions under the Ethics in Government the convening individuals under subsection (E) by redesignating subsections (e) and (f) Act of 1978 (5 U.S.C. App) as are permanent (a), including any consensus recommenda- as subsections (d) and (e), respectively; and employees of the Foundation in equivalent tions resulting therefrom as well as any sig- (F) in subsection (d), as so redesignated by positions. nificant opinions expressed by each partici- subparagraph (E), by striking ‘‘additional’’. SEC. 205. NOTICE. pant that are not incorporated in such a con- sensus recommendation. (e) TECHNICAL AMENDMENT.—The second (a) NOTICE OF REPROGRAMMING.—If any subsection (g) of section 3 of the National funds appropriated pursuant to the amend- SEC. 208. SCIENCE AND TECHNOLOGY POLICY IN- STITUTE. Science Foundation Act of 1950 is repealed. ments made by this act are subject to a re- (a) AMENDMENT.—Section 822 of the Na- SEC. 203. INDIRECT COSTS. programming action that requires notice to tional Defense Authorization Act for Fiscal be provided to the committees on appropria- (a) MATCHING FUNDS.—Matching funds re- Year 1991 (42 U.S.C. 6686) is amended— tions of the Senate and the House of Rep- quired pursuant to section 204(a)(2)(C) of the (1) by striking ‘‘Critical Technologies In- resentatives, notice of that action shall con- Academic Research Facilities Modernization stitute’’ in the section heading and in sub- currently be provided to the Committee on Act of 1988 (42 U.S.C. 1862c(a)(2)(C)) shall not section (a), and inserting in lieu thereof Commerce, Science, and Transportation of be considered facilities costs for purposes of ‘‘Science and Technology Policy Institute’’; determining indirect cost rates under Office the Senate, the Committee on Labor and (2) in subsection (b) by striking ‘‘As deter- of Management and Budget Circular A–21. Human Resources of the Senate, and the mined by the chairman of the committee re- (b) REPORT.— Committee on Science of the House of Rep- ferred to in subsection (c), the’’ and inserting (1) IN GENERAL.—The Director of the Office resentatives. in lieu thereof ‘‘The’’; of Science and Technology Policy, in con- (b) NOTICE OF REORGANIZATION.—Not later (3) by striking subsection (c), and redesig- sultation with other Federal agencies the Di- than 15 days before any major reorganization nating subsections (d), (e), (f), and (g) as sub- rector deems appropriate, shall prepare a re- of any program, project, or activity of the sections (c), (d), (e), and (f), respectively; port— National Science Foundation, the Director of (4) in subsection (c), as so redesignated by (A) analyzing the Federal indirect cost re- the National Science Foundation shall pro- paragraph (3) of this subsection— imbursement rates (as the term is defined in vide notice to the Committees on Science (A) by inserting ‘‘science and’’ after ‘‘de- Office of Management and Budget Circular and Appropriations of the House of Rep- velopments and trends in’’ in paragraph (1); A–21) paid to universities in comparison with resentatives and the Committees on Com- (B) by striking ‘‘with particular emphasis Federal indirect cost reimbursement rates merce, Science and Transportation, Labor on’’ in paragraph (1) and inserting ‘‘includ- paid to other entities, such as industry, gov- and Human Resources of the Senate, and Ap- ing’’; ernment laboratories, research hospitals, propriations of the Senate. (C) by inserting ‘‘and developing and main- and non-profit institutions; SEC. 206. ENHANCEMENT OF SCIENCE AND MATH- taining relevant information and analytical (B)(i) analyzing the distribution of the EMATICS PROGRAMS. tools’’ before the period at the end of the Federal indirect cost reimbursement rates (a) DEFINITIONS.—In this section: paragraph (1); by category (such as administration, facili- (1) EDUCATIONALLY USEFUL FEDERAL EQUIP- (D) by striking ‘‘to determine’’ and all that ties, utilities, and libraries), and by the type MENT.—The term ‘‘educationally useful fed- follows through ‘‘technology policies’’ in of entity; and eral equipment’’ means computers and re- paragraph (2) and inserting ‘‘with particular (ii) determining what factors, including lated peripheral tools and research equip- attention to the scope and content of the the type of research, influence the distribu- ment that is appropriate for use in schools. Federal science and technology research and tion; (2) SCHOOL.—The term ‘‘school’’ means a develop portfolio as it affects interagency (C) analyzing the impact, if any, that public or private educational institution and national issues’’; changes in Office of Management and Budget that serves any of the grades of kindergarten (E) by amending paragraph (3) to read as Circular A–21 have had on— through grade 12. follows: (i) the Federal indirect cost reimburse- (b) SENSE OF CONGRESS.— ‘‘(3) Initiation of studies and analysis of al- ment rates, the rate of change of the Federal (1) IN GENERAL.—It is the sense of the Con- ternatives available for ensuring the long- indirect cost reimbursement rates, the dis- gress that the Director should, to the great- term strength of the United States in the de- tribution by category of the Federal indirect est extent practicable and in a manner con- velopment and application of science and

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00093 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4732 CONGRESSIONAL RECORD — SENATE May 12, 1998 technology, including appropriate roles for dreds of students and demonstrators for de- ducted on noncommercial terms, or for non- the Federal Government, State governments, mocracy in Tiananmen Square on June 4, commercial purposes such as military or for- private industry, and institutions of higher 1989, and running the Laogai (‘‘reform eign policy considerations. education in the development and applica- through labor’’) slave labor camps. SEC. ll. APPLICATION OF AUTHORITIES UNDER tion of science and technology.’’; (2) The People’s Liberation Army is en- THE INTERNATIONAL EMERGENCY (F) by inserting ‘‘science and’’ after ‘‘Exec- gaged in a massive military buildup, which ECONOMIC POWERS ACT TO CHI- utive branch on’’ in paragraph (4)(A); and has involved a doubling since 1992 of an- NESE MILITARY COMPANIES. (G) by amending paragraph (4)(B) to read nounced official figures for military spend- (a) DETERMINATION OF COMMUNIST CHINESE as follows: ing by the People’s Republic of China. MILITARY COMPANIES.— ‘‘(B) to the interagency committees and (3) The People’s Liberation Army is engag- (1) IN GENERAL.—Subject to paragraphs (2) panels of the Federal Government concerned ing in a major ballistic missile moderniza- and (3), not later than 90 days after the date with science and technology.’’; tion program which could undermine peace of the enactment of this Act, the Secretary (5) by striking ‘‘subsection (d)’’ in sub- and stability in East Asia, including 2 new of Defense, in consultation with the Attor- section (d), as redesignated by paragraph (3) intercontinental missile programs, 1 sub- ney General, the Director of Central Intel- of this subsection, and inserting in lieu marine-launched missile program, a new ligence, and the Director of the Federal Bu- thereof ‘‘subsection (c)’’; class of compact but long-range cruise mis- reau of Investigation, shall compile a list of (6) by striking ‘‘Committee’’ in each place siles, and an upgrading of medium- and persons who are Communist Chinese mili- it appears in subsection (e), as redesignated short-range ballistic missiles. tary companies and who are operating di- by paragraph (3) of this subsection, and in- (4) The People’s Liberation Army is work- rectly or indirectly in the United States or serting ‘‘Institute’’; ing to coproduce the SU–27 fighter with Rus- any of its territories and possessions, and (7) by striking ‘‘subsection (d)’’ in sub- sia, and is in the process of purchasing sev- shall publish the list of such persons in the section (f), as redesignated by paragraph (3) eral substantial weapons systems from Rus- Federal Register. On an ongoing basis, the of this subsection, and inserting in lieu sia, including the 633 model of the Kilo-class Secretary of Defense, in consultation with thereof ‘‘subsection (c)’’; and submarine and the SS–N–22 Sunburn missile the Attorney General, the Director of Cen- (8) by striking ‘‘Chairman of Committee’’ system specifically designed to incapacitate tral Intelligence, and the Director of the each place it appears in subsection (f), as United States aircraft carriers and Aegis Federal Bureau of Investigation, shall make designated by paragraph (3) of this sub- cruisers. additions or deletions to the list based on section, and inserting ‘‘Director of Office of (5) The People’s Liberation Army has car- the latest information available. Science and Technology Policy’’. ried out acts of aggression in the South (2) COMMUNIST CHINESE MILITARY COM- (b) CONFORMING USAGE.—All references in China Sea, including the February 1995 sei- PANY.—For purposes of making the deter- Federal law or regulations to the Critical zure of the Mischief Reef in the Spratley Is- mination required by paragraph (1), the term Technologies Institute shall be considered to lands, which is claimed by the Philippines. ‘‘Communist Chinese military company’’— be references to the Science and Technology (6) In July 1995 and in March 1996, the Peo- (A) means a person that is— Policy Institute. ple’s Liberation Army conducted missile (i) engaged in providing commercial serv- tests to intimidate Taiwan when Taiwan SEC. 209. SENSE OF CONGRESS ON THE YEAR 2000 ices, manufacturing, producing, or exporting, PROBLEM. held historic free elections, and those tests and effectively blockaded Taiwan’s 2 principal With the year 2000 fast approaching, it is (ii) owned or controlled by the People’s ports of Keelung and Kaohsiung. the sense of Congress that the Foundation Liberation Army, and (7) The People’s Liberation Army has con- should— (B) includes, but is not limited to, any per- tributed to the proliferation of technologies (1) give high priority to correcting all 2- son identified in the United States Defense relevant to the refinement of weapons-grade digit date-related problems in its computer Intelligence Agency publication numbered nuclear material, including transferring ring systems to ensure that those systems con- VP–1920–271–90, dated September 1990, or PC– magnets to Pakistan. tinue to operate effectively in the year 2000 1921–57–95, dated October 1995, and any up- (8) The People’s Liberation Army and asso- and beyond; date of such reports for the purposes of this ciated defense companies have provided bal- (2) assess immediately the extent of the title. listic missile components, cruise missiles, risk to the operations of the Foundation (b) PRESIDENTIAL AUTHORITY.— and chemical weapons ingredients to Iran, a posed by the problems referred to in para- (1) AUTHORITY.—The President may exer- country that the executive branch has re- cise the authorities set forth in section 203(a) graph (1), and plan and budget for achieving peatedly reported to Congress is the greatest Year 2000 compliance for all of its mission- of the International Emergency Economic sponsor of terrorism in the world. Powers Act (50 U.S.C. 1702(a)) with respect to critical systems; and (9) In May 1996, United States authorities (3) develop contingency plans for those sys- any commercial activity in the United caught the People’s Liberation Army enter- States by a Communist Chinese military tems that the Foundation is unable to cor- prise Poly Technologies and the civilian de- rect in time. company (except with respect to authorities fense industrial company Norinco attempt- relating to importation), without regard to f ing to smuggle 2,000 AK–47s into Oakland, section 202 of that Act. California, and offering to sell urban gangs THE NATIONAL DEFENSE AUTHOR- (2) PENALTIES.—The penalties set forth in shoulder-held missile launchers capable of IZATION ACT FOR FISCAL YEAR section 206 of the International Emergency ‘‘taking out a 747’’ (which the affidavit of the Economic Powers Act (50 U.S.C. 1705) shall 1999 United States Customs Service of May 21, apply to violations of any license, order, or 1996, indicated that the representative of regulation issued under paragraph (1). Poly Technologies and Norinco claimed), and HUTCHINSON AMENDMENTS NOS. Communist Chinese authorities punished SEC. ll. DEFINITION. 2387–2388 only 4 low-level arms merchants by sen- For purposes of this title, the term ‘‘Peo- ple’s Liberation Army’’ means the land, (Ordered to lie on the table.) tencing them on May 17, 1997, to brief prison terms. naval, and air military services, the police, Mr. HUTCHINSON submitted two (10) The People’s Liberation Army contrib- and the intelligence services of the Com- amendments intended to be proposed utes to the People’s Republic of China’s fail- munist Government of the People’s Republic by him to the bill (S. 2057) to authorize ure to meet the standards of the 1995 Memo- of China, and any member of any such serv- appropriations for the fiscal year 1999 randum of Understanding with the United ice or of such police. for military activities of the Depart- States on intellectual property rights by AMENDMENT NO. 2388 ment of Defense, for military construc- running factories which pirate videos, com- pact discs, and computer software that are Add at the end the following new sec- tion, and for defense activities of the tions: Department of Energy, to prescribe products of the United States. (11) The People’s Liberation Army contrib- SEC. ll. FINDINGS. personnel strengths for such fiscal year utes to the People’s Republic of China’s fail- Congress makes the following findings: for the Armed Forces, and for other ing to meet the standards of the February (1) The United States Customs Service has purposes; as follows: 1997 Memorandum of Understanding with the identified goods, wares, articles, and mer- AMENDMENT NO. 2387 United States on textiles by operating enter- chandise mined, produced, or manufactured Add at the end the following new title: prises engaged in the transshipment of tex- under conditions of convict labor, forced tile products to the United States through labor, and indentured labor in several coun- TITLE ll—COMMERCIAL ACTIVITIES OF third countries. tries. PEOPLE’S LIBERATION ARMY (12) The estimated $2,000,0000,000 to (2) The United States Customs Service has SEC. ll. FINDINGS. $3,000,000,000 in annual earnings of People’s actively pursued attempts to import prod- Congress makes the following findings: Liberation Army enterprises subsidize the ucts made with forced labor, resulting in sei- (1) The People’s Liberation Army is the expansion and activities of the People’s Lib- zures, detention orders, fines, and criminal principal instrument of repression within the eration Army described in this subsection. prosecutions. People’s Republic of China, responsible for (13) The commercial activities of the Peo- (3) The United States Customs Service has occupying Tibet since 1950, massacring hun- ple’s Liberation Army are frequently con- taken 21 formal administrative actions in

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the form of detention orders against dif- SECTION 1. SHORT TITLE. ‘‘(3) CONSTRUCTION OF REMEDIES.—’’; and ferent products destined for the United This Act may be cited as the ‘‘Anti-slam- (3) by inserting after paragraph (1), as des- States market, found to have been made ming Amendment Act’’. ignated by paragraph (1) of this subsection, with forced labor, including products from TITLE I—SLAMMING the following: the People’s Republic of China. SEC. 101. IMPROVED PROTECTION FOR CON- ‘‘(2) SUBSCRIBER PAYMENT OPTION.— (4) The United States Customs Service does SUMERS. not currently have the tools to obtain the (a) VERIFICATION OF AUTHORIZATION.—Sub- ‘‘(A) IN GENERAL.—A subscriber whose tele- timely and in-depth verification necessary to section (a) of section 258 of the Communica- phone exchange service or telephone toll identify and interdict products made with tions Act of 1934 (47 U.S.C. 258) is amended to service is changed in violation of the provi- forced labor that are destined for the United read as follows: sions of this section, or the procedures pre- States market. ‘‘(a) PROHIBITION.— scribed under subsection (a), may elect to SEC. ll. AUTHORIZATION FOR ADDITIONAL ‘‘(1) IN GENERAL.—No telecommunications pay the carrier or reseller previously se- CUSTOMS PERSONNEL TO MONITOR carrier or reseller of telecommunications lected by the subscriber for any such service THE IMPORTATION OF PRODUCTS services shall submit or execute a change in received after the change in full satisfaction MADE WITH FORCED LABOR. a subscriber’s selection of a provider of tele- of amounts due from the subscriber to the There are authorized to be appropriated for phone exchange service or telephone toll carrier or reseller providing such service monitoring by the United States Customs service except in accordance with this sec- after the change. Service of the importation into the United tion and such verification procedures as the ‘‘(B) PAYMENT RATE.—Payment for service States of products made with forced labor, Commission shall prescribe. under subparagraph (A) shall be at the rate the importation of which violates section 307 ‘‘(2) VERIFICATION.— for such service charged by the carrier or re- ‘‘(A) IN GENERAL.—In order to verify a sub- of the Tariff Act of 1930 or section 1761 of seller previously selected by the subscriber scriber’s selection of a telephone exchange title 18, United States Code, $2,000,000 for fis- concerned.’’. cal year 1999. service or telephone toll service provider (c) RESOLUTION OF COMPLAINTS.—Section SEC. ll. REPORTING REQUIREMENT ON under this section, the telecommunications FORCED LABOR PRODUCTS DES- carrier or reseller shall, at a minimum, re- 258 of the Communications Act of 1934 (47 TINED FOR THE UNITED STATES quire the subscriber— U.S.C. 258) is amended by adding at the end MARKET. ‘‘(i) to affirm that the subscriber is author- thereof the following: (a) REPORT TO CONGRESS.—Not later than 1 ized to select the provider of that service for ‘‘(c) NOTICE TO SUBSCRIBER.—Whenever year after the date of the enactment of this the telephone number in question; there is a change in a subscriber’s selection Act, the Commissioner of Customs shall pre- ‘‘(ii) to acknowledge the type of service to of a provider of telephone exchange service pare and transmit to Congress a report on be changed as a result of the selection; or telephone toll service, the telecommuni- products made with forced labor that are ‘‘(iii) to affirm the subscriber’s intent to cations carrier or reseller shall notify the destined for the United States market. select the provider as the provider of that subscriber in a specific and unambiguous (b) CONTENTS OF REPORT.—The report service; writing, not more than 15 days after the ‘‘(iv) to acknowledge that the selection of under subsection (a) shall include informa- change is processed by the telecommuni- the provider will result in a change in pro- tion concerning the following: cations carrier or the reseller— (1) The extent of the use of forced labor in viders of that service; and ‘‘(1) of the subscriber’s new carrier or re- manufacturing products destined for the ‘‘(v) to provide such other information as seller; and United States market. the Commission considers appropriate for (2) The volume of products made with the protection of the subscriber. ‘‘(2) that the subscriber may request infor- ‘‘(B) ADDITIONAL REQUIREMENTS.—The pro- forced labor, destined for the United States mation regarding the date on which the cedures prescribed by the Commission to market, that is in violation of section 307 of change was agreed to and the name of the in- verify a subscriber’s selection of a provider dividual who authorized the change. the Tariff Act of 1930 or section 1761 of the shall— title 18, United States Code, and is seized by ‘‘(i) preclude the use of negative option ‘‘(d) RESOLUTION OF COMPLAINTS.— the United States Customs Service. marketing; ‘‘(1) PROMPT RESOLUTION.— (3) The progress of the United States Cus- ‘‘(ii) provide for a complete copy of ‘‘(A) IN GENERAL.—The Commission shall toms Service in identifying and interdicting verification of a change in telephone ex- prescribe a period of time for a telecommuni- products made with forced labor that are change service or telephone toll service pro- cations carrier or reseller to resolve a com- destined for the United States market. vider in oral, written, or electronic form; plaint by a subscriber concerning an unau- SEC. ll. RENEGOTIATING MEMORANDA OF UN- ‘‘(iii) require the retention of such thorized change in the subscriber’s selection DERSTANDING ON FORCED LABOR. verification in such manner and form and for of a provider of telephone exchange service It is the sense of Congress that the Presi- such time as the Commission considers ap- or telephone toll service not in excess of 120 dent should determine whether any country propriate; days after the telecommunications carrier or with which the United States has a memo- ‘‘(iv) mandate that verification occur in reseller receives notice from the subscriber randum of understanding with respect to re- the same language as that in which the of the complaint. A subscriber may at any ciprocal trade which involves goods made change was solicited; and time pursue such a complaint with the Com- with forced labor is frustrating implementa- ‘‘(v) provide for verification to be made mission, in a State or local administrative or tion of the memorandum. Should an affirma- available to a subscriber on request. judicial body, or elsewhere. tive determination be made, the President ‘‘(3) ACTION BY UNAFFILIATED RESELLER NOT should immediately commence negotiations IMPUTED TO CARRIER.—No telecommuni- ‘‘(B) UNRESOLVED COMPLAINTS.—If a tele- to replace the current memorandum of un- cations carrier may be found to be in viola- communication carrier or reseller fails to re- derstanding with one providing for effective tion of this section solely on the basis of a solve a complaint within the time period procedures for the monitoring of forced violation of this section by an unaffiliated prescribed by the Commission, then, within labor, including improved procedures to re- reseller of that carrier’s services or facili- 10 days after the end of that period, the tele- quest investigations of suspected prison ties. communication carrier or reseller shall— labor facilities by international monitors. ‘‘(4) FREEZE OPTION PROTECTED.—The Com- ‘‘(i) notify the subscriber in writing of the SEC. ll. DEFINITION OF FORCED LABOR. mission may not take action under this sec- subscriber’s right to file a complaint with As used in sections ll through ll of this tion to limit or inhibit a subscriber’s ability the Commission and of the subscriber’s Act, the term ‘‘forced labor’’ means convict to require that any change in the sub- rights and remedies under this section; labor, forced labor, or indentured labor, as scriber’s choice of a provider of inter- exchange service not be effected unless the ‘‘(ii) inform the subscriber in writing of the such terms are used in section 307 of the Tar- procedures prescribed by the Commission for iff Act of 1930. change is expressly and directly commu- nicated by the subscriber to the subscriber’s filing such a complaint; and f existing telephone exchange service pro- ‘‘(iii) provide the subscriber a copy of any COMMUNICATIONS ACT vider. evidence in the carrier’s or reseller’s posses- AMENDMENTS ‘‘(5) APPLICATION TO WIRELESS.—This sec- sion showing that the change in the sub- tion does not apply to a provider of commer- scriber’s provider of telephone exchange cial mobile service.’’. service or telephone toll service was sub- MCCAIN (AND HOLLINGS) (b) LIABILITY FOR CHARGES.—Subsection (b) mitted or executed in accordance with the AMENDMENT NO. 2389 of such section is amended— verification procedures prescribed under sub- (1) by striking ‘‘(b) LIABILITY FOR section (a). Mr. MCCAIN (for himself and Mr. CHARGES.—Any telecommunications carrier’’ ‘‘(2) RESOLUTION BY COMMISSION.— HOLLINGS) proposed an amendment to and inserting the following: the bill (S. 1618) to amend the Commu- ‘‘(b) LIABILITY FOR CHARGES.— ‘‘(A) DETERMINATION OF VIOLATION.—The nications Act of 1934 to improve the ‘‘(1) IN GENERAL.—Any telecommunications Commission shall provide a simplified proc- ess for resolving complaints under paragraph protection of consumers against ‘‘slam- carrier or reseller of telecommunications services’’; (1)(B). The simplified procedure shall pre- ming’’ by telecommunications carriers, (2) by designating the second sentence as clude the use of interrogatories, depositions, and for other purposes; as follows: paragraph (3) and inserting at the beginning discovery, or other procedural techniques Strike all after the enacting clause and in- of such paragraph, as so designated, the fol- that might unduly increase the expense, for- sert the following: lowing: mality, and time involved in the process.

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The Commission shall determine whether ‘‘(h) CHANGE INCLUDES INITIAL SELECTION.— ‘‘(C) to file petitions for appeal. there has been a violation of subsection (a) For purposes of this section, the initiation of ‘‘(4) VENUE; SERVICE OF PROCESS.—Any civil and shall issue a decision or ruling at the service to a subscriber by a telecommuni- action brought under this subsection in a earliest date practicable, but in no event cations carrier or a reseller shall be treated district court of the United States may be later than 150 days after the date on which it as a change in a subscriber’s selection of a brought in the district wherein the sub- received the complaint. provider of telephone exchange service or scriber or defendant is found or is an inhab- ‘‘(B) DETERMINATION OF DAMAGES AND PEN- telephone toll service.’’. itant or transacts business or wherein the ALTIES.—If the Commission determines that (d) CRIMINAL PENALTY.— violation occurred or is occurring, and proc- there has been a violation of subsection (a), (1) IN GENERAL.—Chapter 113A of title 18, ess in such cases may be served in which the it shall issue a decision or ruling deter- United States Code, is amended by adding at defendant is an inhabitant or where the de- mining the amount of the damages and pen- the end thereof the following: fendant may be found. alties at the earliest practicable date, but in § 2328. Slamming ‘‘(5) INVESTIGATORY POWERS.—For purposes of bringing any civil action under this sub- no event later than 90 days after the date on ‘‘Any person who submits or executes a which it issued its decision or ruling under section, nothing in this section shall prevent change in a provider of telephone exchange the attorney general of a State, or an official subparagraph (A). service or telephone toll service not author- or agency designated by a State, from exer- ‘‘(3) DAMAGES AWARDED BY COMMISSION.—If ized by the subscriber in willful violation of cising the powers conferred on the attorney a violation of subsection (a) is found by the the provisions of section 258 of the Commu- general or such official by the laws of such Commission, the Commission may award nications Act of 1934 (47 U.S.C. 258), or the State to conduct investigations or to admin- damages equal to the greater of $500 or the procedures prescribed under section 258(a) of ister oaths or affirmations or to compel the amount of actual damages for each violation. that Act— attendance of witnesses or the production of The Commission may, in its discretion, in- ‘‘(A) shall be fined in accordance with this documentary and other evidence. crease the amount of the award to an title, imprisoned not more than 1 year, or ‘‘(j) STATE LAW NOT PREEMPTED.— amount equal to not more than 3 times the both; but ‘‘(1) IN GENERAL.—Nothing in this section amount available under the preceding sen- ‘‘(B) if previously convicted under this or in the regulations prescribed under this tence. paragraph at the time of a subsequent of- section shall preempt any State law that im- ‘‘(e) DISQUALIFICATION AND REINSTATE- fense, shall be fined in accordance with this poses more restrictive requirements, regula- MENT.— title, imprisoned not more than 5 years, or tions, damages, costs, or penalties on ‘‘(1) DISQUALIFICATION FROM CERTAIN AC- both, for such subsequent offense.’’. changes in a subscriber’s service or selection TIVITIES BASED ON CONVICTION.— ‘‘(2) CONFORMING AMENDMENT.—The chapter of a provider of telephone exchange service ‘‘(A) DISQUALIFICATION OF PERSONS.—Sub- analysis for chapter 113A of title 18, United or telephone toll services than are imposed ject to subparagraph (C), any person con- States Code, is amended by adding at the end under this section. victed under section 2328 of title 18, United thereof the following: ‘‘(2) EFFECT ON STATE COURT PRO- States Code, in addition to any fines or im- ‘‘2328. Slamming’’. CEEDINGS.—Nothing contained in this section prisonment under that section, may not ‘‘(e) STATE RIGHT-OF-ACTION.—Section 258 shall be construed to prohibit an authorized carry out any activities covered by section of the Communications Act of 1934 (47 U.S.C. State official from proceeding in State court 214. 258), as amended by subsection (c), is amend- on the basis of an alleged violation of any ‘‘(B) DISQUALIFICATION OF COMPANIES.—Sub- ed by adding at the end thereof the fol- general civil or criminal statute of such ject to subparagraph (C), any company sub- lowing: State or any specific civil or criminal stat- stantially controlled by a person convicted ‘‘(i) ACTION BY STATES.— ute of such State not preempted by this sec- under section 2328 of title 18, United States ‘‘(1) IN GENERAL.—The attorney general of tion. Code, in addition to any fines or imprison- a State, or an official or agency designated ‘‘(3) LIMITATIONS.—Whenever a complaint ment under that section, may not carry out by a State— is pending before the Commission involving any activities covered by section 214. ‘‘(A) may bring an action on behalf of its a violation of regulations prescribed under ‘‘(C) REINSTATEMENT.— residents to recover damages on their behalf this section, no State may, during the pend- ‘‘(i) IN GENERAL.—The Commission may under subsection (d)(3); ency of such complaint, institute a civil ac- terminate the application of subparagraph ‘‘(B) may bring a criminal action to en- tion against any defendant party to the com- (A) to a person, or subparagraph (B) to a force this section under section 2328 of title plaint for any violation affecting the same company, if the Commission determines that 18, United States Code; and subscriber alleged in the complaint. the termination would be in the public inter- ‘‘(C) may bring an action for the assess- ‘‘(k) REPORTS ON COMPLAINTS.— est. ment of civil penalties under subsection (f), ‘‘(1) REPORTS REQUIRED.—Each tele- ‘‘(ii) EFFECTIVE DATE.—The termination of and for purposes of such an action, sub- communications carrier or reseller shall sub- the applicability of subparagraph (A) to a sections (d)(3) and (f)(1) shall be applied by mit to the Commission, quarterly, a report person, or subparagraph (B) to a company, substituting ‘‘the court’’ for ‘‘the Commis- on the number of complaints of unauthorized under clause (i) may not take effect earlier sion’’. changes in providers of telephone exchange than 5 years after the date on which the ap- ‘‘(2) EXCLUSIVE JURISDICTION OF FEDERAL service or telephone toll service that are plicable subparagraph applied to the person COURTS.—The district courts of the United submitted to the carrier or reseller by its or company concerned. States, the United States courts of any terri- subscribers. Each report shall specify each ‘‘(2) CERTIFICATION REQUIREMENT.—Any per- tory, and the District Court of the United provider of service complained of and the son described in subparagraph (A) of para- States for the District of Columbia shall number of complaints relating to such pro- graph (1), or company described in subpara- have exclusive jurisdiction over all actions vider. graph (B) of that paragraph, not reinstated brought under this section. When a State ‘‘(2) LIMITATION ON SCOPE.—The Commis- under subparagraph (C) of that paragraph brings an action under this section, the sion may not require any information in a shall include with any application to the court in which the action is brought has report under paragraph (1) other than the in- Commission under section 214 a certification pendant jurisdiction of any claim brought formation specified in the second sentence of that paragraph. that the person or company, as the case may under the law of that State. Upon proper ap- ‘‘(3) UTILIZATION.—The Commission shall be, is described in paragraph (1)(A) or (B), as plication, such courts shall also have juris- use the information submitted in reports the case may be. diction to issue writs of mandamus, or orders under paragraph (1) to identify telecommuni- ‘‘(f) CIVIL PENALTIES.— affording like relief, commanding the defend- cations carriers or resellers that engage in ‘‘(1) IN GENERAL.—Unless the Commission ant to comply with the provisions of this patterns and practices of unauthorized determines that there are mitigating cir- section or regulations prescribed under this changes in providers of telephone exchange cumstances, violation of subsection (a) is section, including the requirement that the service or telephone toll service. punishable by a forfeiture of not less than defendant take such action as is necessary to ‘‘(l) DEFINITIONS.—For purposes of this sec- $40,000 for the first offense, and not less than remove the danger of such violation. Upon a tion— $150,000 for each subsequent offense. proper showing, a permanent or temporary ‘‘(1) ATTORNEY GENERAL.—The term ‘attor- ‘‘(2) FAILURE TO NOTIFY TREATED AS VIOLA- injunction or restraining order shall be ney general’ means the chief legal officer of TION OF SUBSECTION (A).—If a telecommuni- granted without bond. a State. cations carrier or reseller fails to comply ‘‘(3) RIGHTS OF COMMISSION.—The State ‘‘(2) SUBSCRIBER.—The term ‘subscriber’ with the requirements of subsection shall serve prior written notice of any such means the person named on the billing state- (d)(1)(B), then that failure shall be treated as civil action upon the Commission and pro- ment or account, or any other person au- a violation of subsection (a). vide the Commission with a copy of its com- thorized to make changes in the providers of ‘‘(g) RECOVERY OF FORFEITURES.—The Com- plaint, except in any case where such prior telephone exchange service or telephone toll mission may take such action as may be nec- notice is not feasible, in which case the service.’’. essary— State shall serve such notice immediately (f) REPORT ON CARRIERS EXECUTING UNAU- ‘‘(1) to collect any forfeitures it imposes upon instituting such action. The Commis- THORIZED CHANGES OR TELEPHONE SERVICE.— under this section; and sion shall have the right— (1) REPORT.—Not later than October 31, ‘‘(2) on behalf of any subscriber, to collect ‘‘(A) to intervene in the action; 1998, the Federal Communications Commis- any damages awarded the subscriber under ‘‘(B) upon so intervening, to be heard on all sion shall submit to Congress a report on un- this section. matters arising therein; and authorized changes of subscribers’ selections

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00096 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4735 of providers of telephone exchange service or sent to subscribers more than 60 days after ‘‘SEC. 232. SURETY BONDS FROM TELECOMMUNI- telephone toll service. the date of enactment of this Act. CATIONS CARRIERS OPERATING AS SWITCHLESS RESELLERS. (2) ELEMENTS.—The report shall include SEC. 104. FCC JURISDICTION OVER BILLING the following: SERVICE PROVIDERS. ‘‘(a) REQUIREMENT.—Under such regula- tions as the Commission shall prescribe, any (A) A list of the 10 telecommunications Part III of title II of the Communications telecommunications carrier operating or carriers or resellers that, during the 1-year Act of 1934 (47 U.S.C. 271 et seq.) is amended seeking to operate as a switchless reseller period ending on the date of the report, were by adding at the end thereof the following: subject to the highest number of complaints shall furnish to the Commission a surety ‘‘SEC. 277. JURISDICTION OVER BILLING SERVICE bond in a form and an amount determined by of having executed unauthorized changes of PROVIDERS. the Commission to be satisfactory for pur- subscribers from their selected providers of ‘‘The Commission has jurisdiction to as- telephone exchange service or telephone toll poses of this section. sess and recover any penalty imposed under ‘‘(b) SURETY.—A surety bond furnished pur- service when compared with the total num- title V of this Act against an entity not a ber of subscribers served by such carriers or suant to this section shall be issued by a sur- telecommunications carrier or reseller to ety corporation that meets the requirements resellers. the extent that entity provides billing serv- (B) The telecommunications carriers or re- of section 9304 of title 31, United States Code. ices for the provision of telecommunications ‘‘(c) CLAIMS AGAINST BOND.—A surety bond sellers, if any, assessed forfeitures under sec- services, or for services other than tele- tion 258(f) of the Communications Act of 1934 furnished under this section shall be avail- communications services that appear on a able to pay the following: (as added by subsection (d)), during that pe- subscriber’s telephone bill for telecommuni- riod, including the amount of each such for- ‘‘(1) Any fine or penalty imposed against cations services, but the Commission may the carrier concerned while operating as a feiture and whether the forfeiture was as- assess and recover such penalties only if that sessed as a result of a court judgment or an switchless reseller as a result of a violation entity knowingly or willfully violates the of the provisions of section 258 (relating to order of the Commission or was secured pur- provisions of this Act or any rule or order of suant to a consent decree. unauthorized changes in subscriber selec- the Commission.’’. tions to telecommunications carriers). SEC. 102. ADDITIONAL ENFORCEMENT AUTHOR- SEC. 105. REPORT; STUDY. ITY. ‘‘(2) Any penalty imposed against the car- Section 504 of the Communications Act of (a) IN GENERAL.—The Federal Communica- rier under this section. ‘‘(3) Any other fine or penalty, including a 1934 (47 U.S.C. 504) is amended by adding at tions Commission shall issue a report within forfeiture penalty, imposed against the car- the end thereof the following: ‘‘Notwith- 180 days after the date of enactment of this rier under this Act. standing the preceding sentence, the failure Act on the telemarketing and other solicita- ‘‘(d) RESIDENT AGENT.—A telecommuni- of a person to pay a forfeiture imposed for tion practices used by telecommunications cations carrier operating as a switchless re- violation of section 258(a) may be used as a carriers or resellers or their agents or em- seller that is not domiciled in the United basis for revoking, denying, or limiting that ployees for the purpose of changing the tele- States shall designate a resident agent in the person’s operating authority under section phone exchange service or telephone toll United States for receipt of service of judi- 214 or 312.’’. service provider of a subscriber. (b) SPECIFIC ISSUES.—As part of the report cial and administrative process, including SEC. 103. OBLIGATIONS OF BILLING AGENTS. required under subsection (a), the Commis- subpoenas. (a) IN GENERAL.—Part I of title II of the sion shall include findings on— ‘‘(e) PENALTIES.— Communications Act 1934 (47 U.S.C. 201 et (1) the extent to which imposing penalties ‘‘(1) SUSPENSION.—The Commission may seq.) is amended by adding at the end thereof on telemarketers would deter unauthorized suspend the right of any telecommunications the following: changes in a subscriber’s selection of a pro- carrier to operate as a switchless reseller— ‘‘SEC. 231. OBLIGATIONS OF TELEPHONE BILLING vider of telephone exchange service or tele- ‘‘(A) for failure to furnish or maintain the AGENTS. phone toll service; surety bond required by subsection (a); ‘‘(a) IN GENERAL.—A billing agent, includ- (2) the need for rules requiring third-party ‘‘(B) for failure to designate an agent as re- ing a telecommunications carrier or reseller, verification of changes in a subscriber’s se- quired by subsection (d); or who issues a bill for telephone exchange lection of such a provider and independent ‘‘(C) for a violation of section 258 while op- service or telephone toll service to a sub- third party administration of presubscribed erating as a switchless reseller. scriber shall interexchange carrier changes; and ‘‘(2) ADDITIONAL PENALTIES.—In addition to ‘‘(1) state on the bill— (3) whether wireless carriers should con- suspension under paragraph (1), any tele- ‘‘(A) the name and toll-free telephone num- tinue to be exempt from the requirements communications carrier operating as a ber of any telecommunications carrier or re- imposed by section 258 of the Communica- switchless reseller that fails to furnish or seller for the subscriber’s telephone ex- tions Act of 1934 (47 U.S.C. 258). maintain a surety body under this section change service and telephone toll service; (c) RULEMAKING.—If the Commission deter- shall be subject to any forfeiture provided ‘‘(B) the identity of the presubscribed car- mines that particular telemarketing or other for under sections 503 and 504. rier or reseller; and solicitation practices are being used with the ‘‘(f) BILLING SERVICES FOR UNBONDED ‘‘(C) the charges associated with each car- intention to mislead, deceive, or confuse sub- SWITCHLESS RESELLERS.— rier’s or reseller’s provision of telecommuni- scribers and that they are likely to mislead, ‘‘(1) PROHIBITION.—No common carrier or cations service during the billing period; deceive, or confuse subscribers, then the billing agent may provide billing services for ‘‘(2) for services other than those described Commission shall initiate a rulemaking to any services provided by a switchless reseller in paragraph (1), state on a separate page— prohibit the use of such practices within 120 unless the switchless reseller— ‘‘(A) the name of any company whose days after the completion of its report. ‘‘(A) has furnished the bond required by charges are reflected on the subscriber’s bill; subsection (a); and ‘‘(B) the services for which the subscriber SEC. 106. DISCLOSURE OF CERTAIN RECORDS ‘‘(B) in the case of a switchless reseller not is being charged by that company; FOR INVESTIGATIONS OF TELE- MARKETING FRAUD. domiciled in the United States, has des- ‘‘(C) the charges associated with that com- ignated an agent under section (d). Section 2703 (c)(1)(B) of title 18, United pany’s provision of service during the billing ‘‘(2) PENALTY.— States Code, is amended by— period; ‘‘(A) PENALTY.—Any common carrier or (1) by striking ‘‘or’’ at the end of clause ‘‘(D) the toll-free telephone number that billing agent that knowingly and willfully (ii); the subscriber may call to dispute that com- provides billing services to a switchless re- (2) striking the period at the end of clause pany’s charges; and seller in violation of paragraph (1) shall be (iii) and inserting ‘‘; or’’; and ‘‘(E) that disputes about that company’s liable to the United States for a civil penalty charges will not result in disruption of tele- (3) adding at the end the following: not to exceed $50,000. ‘‘(iv) submits a formal written request rel- phone exchange service or telephone toll ‘‘(B) APPLICABILITY.—For purposes of sub- service; and evant to a law enforcement investigation paragraph (A), the provision of services to ‘‘(3) show the mailing address of any tele- concerning telemarketing fraud for the any particular reseller in violation of para- communications carrier or reseller or other name, address, and place of business of a sub- graph (1) shall constitute a separate viola- company whose charges are reflected on the scriber or customer of such provider, which tion of that paragraph. bill. subscriber or customer is engaged in tele- ‘‘(3) COMMISSION AUTHORITY TO ASSESS AND ‘‘(b) KNOWING INCLUSION OF UNAUTHORIZED marketing (as such term is in section 2325 of COLLECT PENALTIES.—The Commission shall OR IMPROPER CHARGES PROHIBITED.—A billing this title).’’. have the authority to assess and collect any agent may not submit charges for tele- TITLE II—SWITCHLESS RESELLERS penalty provided for under this subsection communications services or other services to SEC. 201. REQUIREMENT FOR SURETY BONDS upon a finding by the Commission of a viola- a subscriber if the billing agent knows, or FROM TELECOMMUNICATIONS CAR- tion of paragraph (1). should know, that the subscriber did not au- RIERS OPERATING AS SWITCHLESS ‘‘(g) RETURN OF BONDS.— thorize the charges or that the charges are RESELLERS. ‘‘(1) REVIEW.— otherwise improper.’’. Part I of title II of the Communications ‘‘(A) IN GENERAL.—The Commission may (b) EFFECTIVE DATE.—The amendment Act of 1934 (47 U.S.C. 201 et seq.) is amended from time to time review the activities of a made by subsection (a) applies to bills to by adding at the end the following: , as telecommunications carrier that has fur- subscribers for telecommunications services amended by section 103 of this Act, nished a surety bond under this section for

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00097 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4736 CONGRESSIONAL RECORD — SENATE May 12, 1998 purposes of determining whether or not to (A) may conduct an investigation to deter- on the attorney general by the laws of the retain the bond under this section. mine whether or not the electronic mail was State concerned to conduct investigations or ‘‘(B) STANDARDS OF REVIEW.—The Commis- transmitted in violation of such provision; to administer oaths or affirmations or to sion shall prescribe any standards applicable and compel the attendance of witnesses or the to its review of activities under this para- (B) if the Commission determines that the production of documentary or other evi- graph. electronic mail was transmitted in violation dence. ‘‘(C) FIRST REVIEW.—The Commission may of such provision, may— (e) VENUE; SERVICE OF PROCESS.—Any civil not first review the activities of a carrier (i) impose upon the person initiating the action brought under subsection (a) in a dis- under subparagraph (A) before the date that transmission a civil fine in an amount not to trict court of the United States may be is 3 years after the date on which the carrier exceed $15,000; brought in the district in which the defend- furnishes the bond concerned under this sec- (ii) commence in a district court of the ant is found, is an inhabitant, or transacts tion. United States a civil action to recover a civil business or wherever venue is proper under ‘‘(2) RETURN.—The Commission may return penalty in an amount not to exceed $15,000 section 1391 of title 28, United States Code. a surety bond as a result of a review under against the person initiating the trans- Process in such an action may be served in this subsection. mission; any district in which the defendant is an in- ‘‘(h) DEFINITIONS.—In this section: (iii) commence an action in a district court habitant or in which the defendant may be ‘‘(1) BILLING AGENT.—The term ‘billing of the United States a civil action to seek in- found. agent’ means any entity (other than a tele- junctive relief; or (f) ACTIONS BY OTHER STATE OFFICIALS.— communications carrier) that provides bill- (iv) proceed under any combination of the Nothing in this section may be construed to ing services for services provided by a tele- authorities set forth in clauses (i), (ii), and prohibit an authorized State official from communications carrier, or other services, if (iii). proceeding in State court on the basis of an charges for such services appear on the bill (2) DEADLINE.—The Commission may not alleged violation of any civil or criminal of a subscriber for telecommunications serv- take action under paragraph (1)(B) with re- statute of the State concerned. ices. spect to a transmission of electronic mail (g) DEFINITIONS.—In this section: (1) ATTORNEY GENERAL.—The term ‘‘attor- ‘‘(2) SWITCHLESS RESELLER.—The term more than 2 years after the date of the trans- ney general’’ means the chief legal officer of ‘switchless reseller’ means a telecommuni- mission. a State. cations carrier that resells the switched tele- (b) ADMINISTRATION.— (2) STATE.—The term ‘‘State’’ means any communications service of another tele- (1) NOTICE BY ELECTRONIC MEANS.—The State of the United States, the District of communications carrier without the use of Commission shall establish an Internet web Columbia, Puerto Rico, Guam, American any switching facilities under its own owner- site with an electronic mail address for the Samoa, the United States Virgin Islands, the ship or control. receipt of notices under subsection (a). Commonwealth of the Northern Marina Is- ‘‘(i) DETARIFFING AUTHORITY NOT IM- (2) INFORMATION ON ENFORCEMENT.—The lands, the Republic of the Marshall Islands, PAIRED.—Nothing in this section is intended Commission shall make available through the Federated States of Micronesia, the Re- to prohibit the Commission from adopting the Internet web site established under para- public of Palau, and any possession of the rules providing for the permissive detariffing graph (1) information on the actions taken United States. of long-distance telephone companies, if the by the Commission under subsection Commission determines that such permissive SEC. 304. INTERACTIVE COMPUTER SERVICE (a)(1)(B). PROVIDERS detariffing would otherwise serve the public (3) ASSISTANCE OF OTHER FEDERAL AGEN- (a) EXEMPTION FOR CERTAIN TRANS- interest, convenience, and necessity.’’. CIES.—Other Federal agencies may assist the MISSIONS.— TITLE III—SPAMMING Commission in carrying out its duties under (1) EXEMPTION.—Sections 301 or 305 shall this section. SEC. 301. REQUIREMENTS RELATING TO TRANS- not apply to a transmission of electronic MISSIONS OF UNSOLICITED COM- SEC. 303. ACTIONS BY STATES. mail by an interactive computer service pro- MERCIAL ELECTRONIC MAIL. (a) IN GENERAL.—Whenever the attorney vider unless— (a) INFORMATION TO BE INCLUDED IN TRANS- general of a State has reason to believe that (A) the provider initiates the transmission; MISSIONS.— the interests of the residents of the State or (1) IN GENERAL.—A person who transmits have been or are being threatened or ad- (B) the transmission is not made to its own an unsolicited commercial electronic mail versely affected because any person is engag- customers. message shall cause to appear in each such ing in a pattern or practice of the trans- (2) CONSTRUCTION.—Nothing in this sub- electronic mail message the information mission of electronic mail in violation of a section may be construed to require an inter- specified in paragraph (2). provision of section 301 or 305, the State, as active computer service provider to transmit (2) COVERED INFORMATION.—The following parens patriae, may bring a civil action on or otherwise deliver any electronic mail information shall appear at the beginning of behalf of its residents to enjoin such trans- message. the body of an unsolicited commercial elec- mission, to enforce compliance with such (b) ACTIONS BY INTERACTIVE COMPUTER tronic mail message under paragraph (1): provision, to obtain damages or other com- SERVICE PROVIDERS.— (1) IN GENERAL.—In addition to any other (A) The name, physical address, electronic pensation on behalf of its residents, or to ob- remedies available under any other provision mail address, and telephone number of the tain such further and other relief as the of law, any interactive computer service pro- person who initiates transmission of the court considers appropriate. vider adversely affected by a violation of a message. (b) NOTICE TO COMMISSION.— provision of section 301 or 305 may, within 1 (B) The name, physical address, electronic (1) NOTICE.—The State shall serve prior year after discovery of the violation, bring a mail address, and telephone number of the written notice of any civil action under this civil action in a district court of the United person who created the content of the mes- section on the Commission and provide the States against a person who violates such sage, if different from the information under Commission with a copy of its complaint, ex- provision. Such an action may be brought to subparagraph (A). cept that if it is not feasible for the State to enjoin the violation, to enforce compliance (C) A statement that further transmissions provide such prior notice, the State shall with such provision, to obtain damages, or to of unsolicited commercial electronic mail to serve written notice immediately on insti- obtain such further and other relief as the the recipient by the person who initiates tuting such action. court considers appropriate. transmission of the message may be stopped (2) RIGHTS OF COMMISSION.—On receiving a (2) DAMAGES.— at no cost to the recipient by sending a reply notice with respect to a civil action under (A) IN GENERAL.—The amount of damages to the originating electronic mail address paragraph (1), the Commission shall have the in an action under this subsection for a vio- with the word ‘‘remove’’ in the subject line. right— lation specified in paragraph (1) may not ex- (b) ROUTING INFORMATION.—All Internet (A) to intervene in the action; ceed $15,000 per violation. routing information contained within or ac- (B) upon so intervening, to be heard in all (B) RELATIONSHIP TO OTHER DAMAGES.— companying an electronic mail message de- matters arising therein; and Damages awarded for a violation under this scribed in subsection (a) must be accurate, (C) to file petitions for appeal. subsection are in addition to any other dam- valid according to the prevailing standards (c) ACTIONS BY COMMISSION.—Whenever a ages awardable for the violation under any for Internet protocols, and accurately reflect civil action has been instituted by or on be- other provision of law. message routing. half of the Commission for violation of a pro- (C) COST AND FEES.—The court may, in (c) EFFECTIVE DATE.—The requirements in vision of section 301 or 305, no State may, issuing any final order in any action brought this section shall take effect 30 days after during the pendency of such action, institute under paragraph (1), award costs of suit, rea- the date of enactment of this Act. a civil action under this section against any sonable costs of obtaining services of proc- SEC. 302. FEDERAL OVERSIGHT OF UNSOLICITED defendant named in the complaint in such ess, reasonable attorney fees, and expert wit- COMMERCIAL ELECTRONIC MAIL. action for violation of any provision as al- ness fees for the prevailing party. (a) TRANSMISSIONS.— leged in the complaint. (3) VENUE; SERVICE OF PROCESS.—Any civil (1) IN GENERAL.—Upon notice from a person (d) CONSTRUCTION.—For purposes of bring- action brought under paragraph (1) in a dis- of the person’s receipt of electronic mail in ing a civil action under subsection (a), noth- trict court of the United States may be violation of a provision of section 301 or 305, ing in this section shall prevent an attorney brought in the district in which the defend- the Commission— general from exercising the powers conferred ant or in which the interactive computer

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00098 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4737 service provider is located, is an inhabitant, sage, and does not encompass any inter- SEC. ll. MODIFICATION OF EXCEPTION TO PRO- or transacts business or wherever venue is vening interactive computer service whose HIBITION ON INTERCEPTION OF proper under section 1391 or title 28, United facilities may have been used to relay, han- COMMUNICATIONS. States Code. Process in such an action may dle, or otherwise retransmit the electronic (a) MODIFICATION.—Section 2511(2)(d) of be served in any district in which the defend- mail message, unless the intervening inter- title 18, United States Code, is amended by ant is an inhabitant or in which the defend- active computer service provider knowingly adding at the end the following: ‘‘Notwith- ant may be found. and intentionally retransmits, any elec- standing the previous sentence, it shall not (c) INTERACTIVE COMPUTER SERVICE PRO- tronic mail in violation of section 301 or 305. be unlawful under this chapter for a person VIDER DEFINED.—In this section, the term not acting under the color of law to inter- ‘‘interactive computer service provider’’ has cept a wire, oral, or electronic communica- the meaning given the term ‘‘interactive FEINGOLD AMENDMENT NO. 2390 tion between a health insurance issuer or computer service’’ in section 230(e)(2) of the Mr. MCCAIN (for Mr. FEINGOLD) pro- health plan and a subscriber of such issuer or Communications Act of 1934 (47 U.S.C. posed an amendment to the bill, S. plan, or between a health care provider and 230(e)(2)). a patient, only if all of the parties to the 1618, supar; as follows: communication have given prior express con- SEC. 305. RECEIPT OF TRANSMISSIONS BY PRI- VATE PERSONS. At the appropriate place, insert the fol- sent to such interception. For purposes of lowing: (a) TERMINATION OF TRANSMISSIONS.—A per- the preceding sentence, the term ‘health in- son who receives from any other person an SEC. ll. ENFORCEMENT OF REGULATIONS RE- surance issuer’ has the meaning given that electronic mail message requesting the ter- GARDING CITIZENS BAND RADIO term in section 733 of the Employee Retire- EQUIPMENT. mination of further transmission of commer- ment Income Security Act of 1974 (29 U.S.C. Section 302 of the Communications Act of cial electronic mail shall cease the initiation 1191b), the term ‘health plan’ means a group 1934 (47 U.S.C. 302) is amended by adding at of further transmissions of such mail to the health plan, as defined in such section of the end the following: person making the request. such Act, an individual or self-insured health ‘‘(f)(1) Except as provided in paragraph (2), (b) AFFIRMATIVE AUTHORIZATION OF TRANS- plan, the medicare program under title XVIII a State or local government may enforce the MISSION.— of the Social Security Act (42 U.S.C. 1395 et following regulations of the Commission (1) IN GENERAL.—Subject to paragraph (2), a seq.), the medicaid program under title XIX person may authorize another person to ini- under this section: of such Act (42 U.S.C. 1396 et seq.), the State tiate transmissions of unsolicited commer- ‘‘(A) A regulation that prohibits a use of children’s health insurance program under cial electronic mail to the person. citizens band radio equipment not authorized title XXI of such Act (42 U.S.C. 1397aa et by the Commission. (2) AVAILABILITY OF TERMINATION.—A per- seq.), and the Civilian Health and Medical son initiating transmissions of electronic ‘‘(B) A regulation that prohibits the unau- Program of the Uniformed Services under mail under paragraph (1) shall include, with thorized operation of citizens band radio chapter 55 of title 10, and the term ‘health each transmission of such mail to a person equipment on a frequency between 24 MHz care provider’ means a physician or other authorizing the transmission under that and 35 MHz. health care professional.’’. paragraph, the information specified in sec- ‘‘(2) Possession of a station license issued (b) RECORDING AND MONITORING OF COMMU- tion 301(a)(2)(C). by the Commission pursuant to section 301 in NICATIONS WITH HEALTH INSURERS.— any radio service for the operation at issue (c) CONSTRUCTIVE AUTHORIZATION OF (1) COMMUNICATION WITHOUT RECORDING OR shall preclude action by a State or local gov- TRANSMISSIONS.— MONITORING.—Notwithstanding any other ernment under this subsection. (1) IN GENERAL.—Subject to paragraphs (2) provision of law, a health insurance issuer, and (3), a person who secures a good or serv- ‘‘(3) The Commission shall provide tech- health plan, or health care provider that no- ice from, or otherwise responds electroni- nical guidance to State and local govern- tifies any customer of its intent to record or cally to, an offer in a transmission of unso- ments regarding the detection and deter- monitor any communication with such cus- licited commercial electronic mail shall be mination of violations of the regulations tomer shall provide the customer the option deemed to have authorized the initiation of specified in paragraph (1). to conduct the communication without being transmissions of unsolicited commercial ‘‘(4)(A) In addition to any other remedy au- recorded or monitored by the health insur- electronic mail from the person who initi- thorized by law, a person affected by the de- ance issuer, health plan, or health care pro- ated the transmission. cision of a State or local government enforc- vider. ing a regulation under paragraph (1) may (2) NO AUTHORIZATION FOR REQUESTS FOR (2) DEFINITIONS.—In this subsection: submit to the Commission an appeal of the TERMINATION.—An electronic mail request to (A) HEALTH CARE PROVIDER.—The term cease the initiation of further transmissions decision on the grounds that the State or ‘‘health care provider’’ means a physician or of electronic mail under subsection (a) shall local government, as the case may be, acted other health care professional. not constitute authorization for the initi- outside the authority provided in this sub- (B) HEALTH INSURANCE ISSUER.—The term ation of further electronic mail under this section. ‘‘health insurance issuer’’ has the meaning subsection. ‘‘(B) A person shall submit an appeal on a given that term in section 733 of the Em- decision of a State or local government to (3) AVAILABILITY OF TERMINATION.—A per- ployee Retirement Income Security Act of son initiating transmissions of electronic the Commission under this paragraph, if at 1974 (29 U.S.C. 1191b). mail under paragraph (1) shall include, with all, not later than 30 days after the date on (C) HEALTH PLAN.—The term ‘‘health plan’’ each transmission of such mail to a person which the decision by the State or local gov- means— deemed to have authorized the transmission ernment becomes final. (i) a group health plan, as defined in sec- under that paragraph, the information speci- ‘‘(C) The Commission shall make a deter- tion 733 of the Employee Retirement Income fied in section 301(a)(2)(C). mination on an appeal submitted under sub- Security Act of 1974 (29 U.S.C. 1191b); paragraph (B) not later than 180 days after (d) EFFECTIVE DATE OF TERMINATION RE- (ii) an individual or self-insured health its submittal. QUIREMENTS.—Subsections (a), (b)(2), and plan; (c)(3) shall take effect 30 days after the date ‘‘(D) If the Commission determines under (iii) the medicare program under title of enactment of this Act. subparagraph (C) that a State or local gov- XVIII of the Social Security Act (42 U.S.C. ernment has acted outside its authority in 1395 et seq.); SEC. 306. DEFINITIONS. enforcing a regulation, the Commission shall (iv) the medicaid program under title XIX In this title. reverse the decision enforcing the regula- of such Act (42 U.S.C. 1396 et seq.); (1) COMMERCIAL ELECTRONIC MAIL.—The tion. (v) the State children’s health insurance term ‘‘commercial electronic mail’’ means ‘‘(5) The enforcement of a regulation by a program under title XXI of such Act (42 any electronic mail that— State or local government under paragraph U.S.C. 1397aa et seq.); and (A) contains an advertisement for the sale (1) in a particular case shall not preclude the (vi) the Civilian Health and Medical Pro- of a product or service; Commission from enforcing the regulation in gram of the Uniformed Services under chap- (B) contains a solicitation for the use of a that case concurrently. ter 55 of title 10, United States Code. telephone number, the use of which connects ‘‘(6) Nothing in this subsection shall be the user to a person or service that adver- construed to diminish or otherwise affect the ROCKEFELLER AMENDMENT NO. tises the sale of or sells a product or service; jurisdiction of the Commission under this or section over devices capable of interfering 2392 (C) promotes the use of or contains a list of with radio communications.’’. Mr. DORGAN (for Mr. ROCKEFELLER) one or more Internet sites that contain an proposed an amendment to the bill, S. advertisement referred to in subparagraph (A) or a solicitation referred to in subpara- FEINSTEIN AMENDMENT NO. 2391 1618, supra; as follows: graph (B). At the appropriate place, insert the fol- Mr. DORGAN (for Mrs. FEINSTEIN) (2) COMMISSION.—The term ‘‘Commission’’ lowing: proposed an amendment to the bill, S. means the Federal Trade Commission. SEC. . CONSUMER TRUTH IN BILLING DISCLO- (3) The term ‘‘initiate the transmission’’ in 1618, supra; as follows: SURE ACT. the case of an electronic mail message At the appropriate place, insert the fol- (a) FINDINGS.—Congress makes the fol- means to originate the electronic mail mes- lowing: lowing findings—

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00099 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4738 CONGRESSIONAL RECORD — SENATE May 12, 1998 (1) Billing practices by telecommuni- SEC. 527. REQUIREMENTS RELATING TO RECRUIT drill sergeants and other training personnel cations carriers may not reflect accurately BASIC TRAINING. to a dormitory floor on which recruits are the cost or basis of the additional tele- (a) ARMY.—(1) Chapter 401 of title 10, housed during basic training shall be limited communications services and benefits that United States Code, is amended by adding at after the end of the training day, other than consumers receive as a result of the enact- the end the following new section: in the case of an emergency or other exigent ment the Telecommunications Act of 1996 ‘‘§ 4319. Recruit basic training: separate hous- circumstance, to drill sergeants and other (Public Law 104–104) and other Federal regu- ing and privacy for male and female re- training personnel who are of the same sex latory actions taken since the enactment of cruits as the recruits housed on that floor. that Act. ‘‘(a) SEPARATE HOUSING FACILITIES.—The ‘‘(c) BASIC TRAINING DEFINED.—In this sec- (2) The Telecommunications Act of 1996 Secretary of the Army shall require that tion, the term ‘basic training’ means the ini- was not intended to allow providers of tele- during basic training male and female re- tial entry training program of the Air Force communications services to misrepresent to cruits be housed in separate barracks or that constitutes the basic training of new re- customers the costs of providing services or other troop housing facilities. cruits.’’. the services provided. ‘‘(b) HOUSING PRIVACY.—The Secretary of (2) The table of sections at the beginning of (3) Certain providers of telecommuni- the Army shall require that access by drill such chapter is amended by adding at the cations services have established new, spe- sergeants and other training personnel to a end the following new item: cific charges on customer bills commonly barracks floor on which recruits are housed ‘‘9319. Recruit basic training: separate hous- known as ‘‘line-item charges’’. during basic training shall be limited after ing and privacy for male and fe- (4) Certain providers of telecommuni- the end of the training day, other than in the male recruits.’’. cations services have described such charges case of an emergency or other exigent cir- (d) IMPLEMENTATION.—(1) The Secretary of as ‘‘Federal Universal Service Fees’’ or simi- cumstance, to drill sergeants and other the Army, the Secretary of the Navy, or the lar fees. training personnel who are of the same sex Secretary of the Air Force shall implement (5) Such charges have generated significant as the recruits housed on that floor. section 4319, 6931, or 9319, respectively, of confusion among customers regarding the ‘‘(c) BASIC TRAINING DEFINED.—In this sec- title 10, United States Code (as added by this nature of and scope of universal service and tion, the term ‘basic training’ means the ini- section), as rapidly as feasible and shall en- of the fees associated with universal service. tial entry training program of the Army that sure that the provisions of that section are (6) The State of New York is considering constitutes the basic training of new re- applied to all recruit basic training classes action to protect consumers by requiring cruits.’’. beginning not later than the first such class telecommunications carriers to disclose (2) The table of sections at the beginning of that enters basic training on or after April fully in the bills of all classes of customers such chapter is amended by adding at the 15, 1999. the fee increases and fee reductions resulting end the following new item: (2)(A) If the Secretary of the military de- from the enactment of the Telecommuni- ‘‘4319. Recruit basic training: separate hous- partment concerned determines that it is not cations Act of 1996 and other regulatory ac- ing and privacy for male and fe- feasible, during some or all of the period be- tions taken since the enactment of that Act. male recruits.’’. ginning on April 15, 1999, and ending on Octo- (7) The National Association of Regulatory (b) NAVY AND MARINE CORPS.—(1) Part III ber 1, 2001, to comply with the requirement Utility Commissioners adopted a resolution of subtitle C of title 10, United States Code, for separate housing at any particular instal- in February 1998 supporting action by the is amended by inserting after chapter 601 the lation at which basic training is conducted Federal Communications Commission and following new chapter: because facilities at that installation are in- the Federal Trade Commission to protect ‘‘CHAPTER 602—TRAINING GENERALLY sufficient for such purpose, the Secretary consumers of telecommunications services ‘‘Sec. may grant a waiver of the requirement with by assuring accurate cost reporting and bill- ‘‘6931. Recruit basic training: separate hous- respect to that installation. Any such waiver ing practices by telecommunications car- ing and privacy for male and fe- may not be in effect after October 1, 2001, riers nationwide. male recruits. and may only be in effect while the facilities (b) REQUIREMENTS.—Any telecommuni- at that installation are insufficient for the ‘‘§ 6931. Recruit basic training: separate hous- cations carrier that includes any change re- purposes of compliance with the requirement ing and privacy for male and female re- sulting from Federal regulatory action shall for separate housing. cruits specify in such bill— (B) If the Secretary of a military depart- (1) the reduction in charges or fees for each ‘‘(a) SEPARATE HOUSING.—The Secretary of ment grants a waiver under subparagraph class of customers (including customers of the Navy shall require that during basic (A) with respect to an installation, the Sec- residential basic service, customers of other training male and female recruits be housed retary shall require that male and female re- residential services, small business cus- in separate barracks or other troop housing cruits in basic training at that installation tomers, and other business customers) re- facilities. during any period that the waiver is in effect sulting from any regulatory action of the ‘‘(b) HOUSING PRIVACY.—The Secretary of not be housed on the same floor of a bar- Federal Communications Commission; the Navy shall require that access by recruit racks or other troop housing facility. (2) total monthly charges, usage charges, division commanders and other training per- (3) In this subsection: percentage charges, and premiums for each sonnel to a barracks floor on which Navy re- (A) The term ‘‘requirement for separate class of customers (including customers of cruits are housed during basic training shall housing’’ means— residential basic service, customers of other be limited after the end of the training day, (i) with respect to the Army, the require- residential services, small business cus- other than in the case of an emergency or ment set forth in section 4319(a) of title 10, tomers, and other business customers); other exigent circumstance, to recruit divi- United States Code, as added by subsection (3) notify consumers one billing cycle in sion commanders and other training per- (a); advance of any charges in existing charges or sonnel who are of the same sex as the re- (ii) with respect to the Navy and the Ma- imposition of new charges; and cruits housed on that floor. rine Corps, the requirement set forth in sec- ‘‘(c) BASIC TRAINING DEFINED.—In this sec- (4) disclose, upon subscription, total tion 6931(a) of such title, as added by sub- tion, the term ‘basic training’ means the ini- monthly charges, usage charges, percentage section (b); and tial entry training programs of the Navy and charges, and premiums for each class of cus- (iii) with respect to the Air Force, the re- Marine Corps that constitute the basic train- tomers (including residential basic service, quirement set forth in section 9319(a) of such ing of new recruits.’’. customers of other residential service, small title, as added by subsection (c). (2) The tables of chapters at the beginning business customers, and other business cus- (B) The term ‘‘basic training’’ means the of subtitle C, and at the beginning of part III tomers). initial entry training program of an armed of subtitle C, of such title are amended by in- force that constitutes the basic training of f serting after the item relating to chapter 601 new recruits. the following new item: THE NATIONAL DEFENSE AUTHOR- ‘‘602. Training Generally ...... 6931’’. f IZATION ACT FOR FISCAL YEAR (c) AIR FORCE.—(1) Chapter 901 of title 10, 1999 United States Code, is amended by adding at NOTICE OF HEARING the end the following new section: COMMITTEE ON AGRICULTURE, NUTRITION, AND ‘‘§ 9319. Recruit basic training: separate hous- FORESTRY BROWNBACK AMENDMENT NO. 2393 ing and privacy for male and female re- Mr. LUGAR. Mr. President, I would (Ordered to lie on the table.) cruits like to announce that the Senate Com- Mr. BROWNBACK submitted an ‘‘(a) SEPARATE HOUSING.—The Secretary of mittee on Agriculture, Nutrition, and amendment intended to be proposed by the Air Force shall require that during basic Forestry will meet on Thursday, May training male and female recruits be housed him to the bill, S. 2057, supra; as fol- in separate dormitories or other troop hous- 14, 1998 at 9:00 a.m. in SR–328A. The lows: ing facilities. purpose of this meeting will be to ex- Strike out section 527, and insert in lieu ‘‘(b) HOUSING PRIVACY.—The Secretary of amine the year 2000 computer problem thereof the following: the Air Force shall require that access by compliance of the U.S. Department of

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00100 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4739 Agriculture, Commodity Futures Trad- deployment being made public, about provided for in the Oslo Agreement. I ing Commission and Farm Credit Ad- certain of Israel’s security concerns, understand from news reports that al- ministration. and about final status talks. I did not ternative proposals are now being con- f sign that letter, in part because I be- sidered by the Israeli government for a lieve the Administration should be 13 percent withdrawal which could hap- AUTHORITY FOR COMMITTEES TO commended, not criticized, for sticking pen in two stages—a substantial with- MEET with this process at a critical time, and drawal immediately, followed by an ad- COMMITTEE ON FOREIGN RELATIONS for its willingness to press for Israel’s ditional 2–4 percent withdrawal once Mr. JEFFORDS. Mr. President, I ask legitimate security concerns while rec- Mr. Arafat makes good on certain unanimous consent that the Com- ognizing the legitimate claims of the tough new security commitments he mittee on Foreign Relations be author- Palestinians. has reportedly agreed to make as a ized to meet during the session of the I have watched with growing concern part of the overall agreement. Senate on Tuesday, May 12, 11998, at over the past week or so as some crit- I understand these new arrangements 2:00 p.m. to hold a hearing. ics of the Administration’s policy to- include the kind of strong new Pales- The PRESIDING OFFICER. Without ward Israel here in Congress have tinian commitments to fight terrorism objection, it is so ordered. launched fierce, often partisan, attacks which the Israeli government has long on that policy. The Speaker, late last COMMITTEE ON INDIAN AFFAIRS been seeking, strengthening the terms week, was even quoted as saying, in a of the Memorandum of Understanding Mr. JEFFORDS. Mr. President, I ask press conference in which he criticized unanimous consent that the Senate negotiated at the end of last year, and the Administration’s recent handling providing for a test period before this Committee on Indian Affairs be author- of the peace process, that ‘‘America’s ized to meet during the session of the phase of withdrawal is completed. That strong-arm tactics would send a clear is a major victory for Israel, and Senate to conduct a hearing on Tues- signal to the supporters of terrorism day, May 12, 1998 at 9:30 a.m. on Indian should help to address legitimate that their murderous actions are an ef- Israeli concerns about the Palestinian gaming, focusing on lands taken into fective tool in forcing concessions from trust for purposes of gaming. The hear- Authority’s commitment to fighting Israel.’’ terrorism. ing will be held in room 106 of the Dirk- That is, simply put, Mr. President, a sen Senate Office Building. scandalous and demagogic accusation Now I am not an expert, and I ac- The PRESIDING OFFICER. Without to level at the President, who has been knowledge that I do not know all the objection, it is so ordered. engaged for over a year, along with his details of the various land parcels that COMMITTEE ON THE JUDICIARY senior foreign policy advisors, in a vig- are being discussed. But it is clear that Mr. JEFFORDS. Mr. President, I ask orous effort to bring the two sides to- on the issue of land, some progress is unanimous consent that the Com- gether at a critical time in the peace possible. Let us not forget that the mittee on the Judiciary be authorized process, and to help bridge the gaps Palestinians had originally sought a 30 to meet during the session of the Sen- that exist between them by offering percent withdrawal from the West ate on Tuesday, May 12, 1998 at 10:30 constructive, creative ideas for each to Bank, as the first in a 3-phase with- a.m. in room 226 of the Senate Dirksen consider. I understand that this pro- drawal to which Israel agreed—though Office Building to hold a hearing on posal was crafted over many months, the timing and extent of each with- ‘‘Raising Tobacco Prices: the Con- and was designed to address many of drawal were not explicitly established. sequences.’’ the Israeli government’s most pressing So the Palestinians had sought a 30 The PRESIDING OFFICER. Without security concerns and to meet many of percent withdrawal, the Israelis offered objection, it is so ordered. its criteria for evaluating real progress just under ten percent, and the Admin- istration has been pressing for a com- f on these issues. The President has repeatedly made promise of 13 percent. Mr. Netanyahu ADDITIONAL STATEMENTS clear that he is not trying to impose a has reportedly now privately agreed to solution on the parties, nor could he. a withdrawal of about 11 percent. And that he is not issuing ultimatums I understand that Mr. Arafat has also A CRITICAL TIME IN THE MIDDLE to anyone—as further evidenced by his agreed, as a condition for attending a EAST PEACE PROCESS willingness to have Secretary Albright Washington summit meeting with ∑ Mr. WELLSTONE. Mr. President, as reach out again to Mr. Netanyahu this President Clinton and Mr. Arafat, to a long-time strong supporter of Israel week. After months of on-and-off nego- allow the next redeployment to be con- and her security, and a fierce advocate tiations, with U.S. envoys shuttling sidered alongside final status talks, by of the Middle East peace process, I back and forth among the parties, the a joint Palestinian-Israeli Committee, want to commend President Clinton, major points of disagreement have be- operating on a parallel track. The Secretary Albright, Ambassador Ross come clear, and President Clinton is American proposal also reportedly con- and Assistant Secretary Indyk for now simply offering ideas for them to templates greater flexibility on the their ongoing efforts to preserve, and consider—an approach consistent with Oslo timetable, which had been set to even reinvigorate, the stalled peace America’s role at virtually every other conclude by May 4, 1999. Each of these process. I was encouraged to read this critical point in the Middle East peace changes would be significant achieve- morning that President Clinton has process over the years. At Camp David, ments for Israeli negotiators. asked Secretary Albright to forgo the in Madrid, and at subsequent major ne- Let me make four points about this G–7 meeting in Germany in order to gotiations, American attempts to situation, Mr. President. First, despite meet with Prime Minister Netanyahu bridge the gaps between the parties all of the recent (frequently partisan) while he is here this week in the have played a critical role in reaching criticism of the Administration, recent United States. final agreement. I have talked with polls both here and in Israel show sub- While they have come under fire re- senior American officials involved in stantial support for further progress in cently, as a Member of the Foreign Re- the discussions, and remain hopeful the peace process. And this includes lations Committee who has for years that a final agreement will soon be polls of Jewish Americans, of which I followed closely the peace process, I be- reached. The parties must not miss am proud to be one. Indeed, I read lieve they should be supported in their this key opportunity to move forward about a poll last week which noted efforts to help forge a just and lasting in the peace process. that a substantial majority of Jewish peace for the region by helping the par- Over the weekend Mr. Netanyahu re- Americans polled agreed that the U.S. ties to move forward urgently on the jected the Administration’s offer, in this process was doing just what we Israeli-Palestinian track. which Mr. Arafat had accepted, to should be doing—offering ideas, facili- About a month ago 81 Senators come to Washington this week for a tating discussions, working with the joined in a letter to President Clinton summit to agree on terms for a further parties on alternative formulations expressing concern about the Adminis- withdrawal from the West Bank, and to which could meet all of their legiti- tration’s ideas for the next phase of re- agree to accelerate final status talks mate security and other interests.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00101 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4740 CONGRESSIONAL RECORD — SENATE May 12, 1998 Second, let me remind my col- ‘‘principled, worthy efforts . . . ground- financial security and to allow tens of leagues, especially those who have of- ed in a deep commitment to Israel’s se- millions of others, who currently are fered such fierce criticism of the Ad- curity.’’ I agree with that assessment, denied access to a credit union, to be- ministration’s efforts in recent days, of and join her, Senator LAUTENBERG, and come members. the need for a sense of proportion. Let others in calling for restraint by my One of the most important financial me point out that the Administration colleagues who have unfairly criticized assets our country has, Mr. President, is not threatening, as the Bush Admin- the Administration during this dif- is our extensive system of not-for-prof- istration did with settlement assist- ficult and sensitive time in the peace it, community-based credit unions. ance, to cut off any kind of aid to process. Of course, offering principled, Credit unions provide unique and valu- Israel in this dispute. It is simply play- thoughtful critiques of Administration able services to members, most of ing the role mediators should play in foreign policy-making is a legitimate whom work for small businesses. Credit offering creative ideas, and allowing role of Congress, an important aspect unions offer their members lower costs, the parties to make their own decision of our system of checks and balances. higher returns, lower loan rates and about whether those ideas are accept- But it is a right accompanied by a re- greater convenience. They nonetheless able to them. sponsibility to be fair and informed. provide important benefits to their Third, let me commend the Adminis- Mr. President, the recent crisis in the members and crucial competition in tration on remaining engaged in the peace negotiations coincides with the financial services marketplace. peace process, a process for which Israel’s celebration of her 50-year jubi- But credit unions have been put in many Israelis—including most recently lee, an occasion of great joy for all of significant danger by a recent Supreme Prime Minister Rabin—have given us who love Israel. With the founding Court decision. That Court ruled that their lives. President Clinton has been of modern Israel, the Children of Abra- attempts by the National Credit Union a strong friend of Israel, and the Ad- ham and Sara, survivors of over 2000 Administration during the Reagan Ad- ministration is right to press the par- years of persecution and exile, were ministration to more broadly interpret ties to come to a final agreement, to home at last and free at last. But the 1982 ‘‘common bond’’ requirement offer solutions which can bridge gaps, Israel’s founder David Ben-Gurion’s for membership are beyond the scope of to ensure that proposals are on the dream, and that of his allies, was not original intent. The Court’s interpretation of this re- table from a neutral mediator which simply to provide a safe haven from quirement could result in over 10 mil- one side could perhaps not accept from centuries of Jewish suffering. It was lion Americans being forced out of their adversary, but could accept from also about fulfilling Isaiah’s prophecy their credit unions. It also means that a third party. of making Israel ‘‘a light unto the na- small businesses with fewer than 500 The administration has done so, I be- tions,’’ a powerful sign and symbol of employees—the engine of economic lieve, because it knows that the suc- justice and compassion to all peoples of growth in this country—are barred cess of these efforts is crucial to ful- the world. from offering credit union member- filling longstanding American commit- Although it’s fitting that we pause ships to their employees. ments to preserve the peace process, this year to celebrate all that the peo- Clearly, in the wake of the Court’s ensure Israel’s security, enhance re- ple of Israel have accomplished over ruling, the laws pertaining to credit gional stability, and protect U.S. inter- these past 50 years, we must also look union membership must be modified. ests in the Middle East. Most urgently, forward to the tasks which face her in Credit Unions have a proud history of the President recognizes that without the next millennium, chief among providing important benefits without a peaceful permanent resolution of the them the task of building a just, secure cost to either businesses or taxpayers. Israeli-Palestinian conflict, Israel’s se- and lasting peace. It is my deepest In Michigan alone 4 million people curity—clearly a vital U.S. interest— prayer that our children and grand- avail themselves of these benefits, and can never be guaranteed. Let us not children, fifty years from this year, they should be protected against unfair forget one thing in all of this, Mr. will be able to say with gratitude that limitations on credit union member- President: peace is the ultimate guar- we were the generation which over- ship. What is more, the growth of cred- antor of Israel’s security. came ancient hatreds, and enabled it unions in America has coincided Finally, let me ask my colleagues to them to achieve a just and lasting with a significant expansion of earn- contemplate what could happen if the peace which has by then embraced the ings for community bankers, another Administration did not press to pre- entire region and all its peoples. That crucial financial services asset for our serve this process, and it collapsed—as is a vision worthy of Israel’s founder, people and our economy. As reported it almost surely would without such and of all those who come after. It is a by the ABA Banking Journal’s Annual intervention. An alternative scenario, vision for which we should and must be Community Banking Earnings Report, with the peace process in a shambles— willing to struggle, to fight for, for the vast majority of community bank- an escalation in terrorist attacks, which all must continue to take risks. ers believe that earnings will continue Israel facing newly hostile Arab neigh- Prime Minister Netanyahu is coming expanding, seeing no threat from credit bors on all sides, and increased pres- to the U.S. this week, and will be meet- union expansion. sure from the Arab street for violent ing with Secretary Albright. I have There is no reason, in my view, to see action against her—is frightening to heard from sources both in the Admin- credit union expansion as anything but consider. istration and in Israel that the Israeli a significant benefit for our people and Some here in Washington act as if government is actually close to reach- our economy. That is why I am sup- the Israeli-Palestinian stalemate of the ing internal agreement on a variation porting legislation authored by Sen- past fifteen months does not pose dan- of the Administration’s proposed plan. ator D’AMATO, modelled after H.R. 1151, gers for all sides. I think they are I hope that is true, and that all the legislation that already has passed the wrong. It poses very grave dangers to parties will reassess their positions in House. This legislation will grant cred- Israel, to the Palestinians, and to the light of recent developments, and agree it unions authority to add Select Em- whole region. That’s why the Presi- this week to take one more important ployee Groups of 3,000 or less to their dent’s approach of urging the parties to step toward resolving this longstanding membership. uphold their commitments, facilitating and bitter dispute, thereby helping to This legislation also sets a moderate ongoing contacts and negotiations, forge a just and lasting peace for the cap on commercial loans in the inter- helping each side understand the oth- region worthy of Israel’s founders’ est of fairness and consensus. In my er’s legitimate security and other dream.∑ opinion, such a requirement was nec- needs, and presenting creative ideas in- f essary to respond to some of the con- tended to help bridge gaps between the cerns raised in response to extended parties, makes sense. CREDIT UNION MEMBERSHIP membership. Senator FEINSTEIN observed on the ∑ Mr. ABRAHAM. Mr. President, I rise The critical issue, Mr. President, is floor last week that the Administra- to support legislation protecting the 70 whether we are going to allow credit tion’s attempts to facilitate an agree- million Americans who belong to cred- unions to continue to provide impor- ment between the parties efforts were it unions from being stripped of their tant services at reasonable cost to a

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00102 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4741 vast and growing number of Ameri- A second inductee is Judge Constance Ms. Ponselle shocked the opera world cans, or impose new regulatory burdens Baker Motley. Born in New Haven, when she retired in 1937. She dedicated on one of our economy’s most impor- Connecticut, Judge Motley first be- the remaining forty-four years of her tant assets. I believe it is crucial that came interested in civil rights after life to helping train and teach aspiring we save credit unions from undue limi- being denied admission into a local young operatic youths. One of her most tations, and that this legislation will public beach and skating rink. notable students was Placido Domingo. achieve that goal without harming any After graduating from high school, She also served as the artistic director other industry. I urge my colleagues to she was unable to afford college, so she of the Baltimore Civic Opera Company. support this legislation.∑ worked for $50 a month refinishing fur- She died in Baltimore in May 1991. f niture. She continued to be active and Her voice was said to exude a blend of to voice her beliefs, despite her inabil- youthfulness and maturity and she re- FIFTH CLASS OF INDUCTEES INTO ity to further her education. A local mains an inspiration to opera students THE CONNECTICUT WOMEN’S philanthropist, Clarence Blakeslee, and audiences worldwide. HALL OF FAME heard her speak at the Youth Council Lillian Vernon, another inductee, is a ∑ Mr. DODD. Mr. President, I rise in 1939, and he was so impressed with resident of Greenwich, Connecticut. today to congratulate the fifth class of her that he offered to pay for her edu- She is the founder and CEO of Lillian inductees into the Connecticut Wom- cation. She graduated from New York Vernon Corporation. She entered the en’s Hall of Fame. These five women University in 1943, and three years industry of mail order catalogues in gained recognition in fields of nature, later received her law degree from Co- the 1950’s when it was dominated by in- justice, the arts, and finance and rep- lumbia University. dustry moguls such as Richard Sears resent the best of my state and of our After graduating from Columbia, she and A. Montgomery Ward. The com- nation. worked full time for the Legal Defense pany, which began in 1951, was one of I want to take this opportunity to and Educational Fund of the NAACP, the first to offer personalized merchan- speak about each of this year’s induct- under then chief counsel Thurgood dise by mail. The corporation was the ees. Marshall. She worked there for twenty first company founded by a woman to Dorrit Hoffleit, a resident of New years as a staff member and associate be publicly traded on the American Haven, Connecticut, has established counsel and she was known for her im- Stock Exchange. herself as a premiere astronomer pressive skill as an oral advocate. Dur- Ms. Vernon also does a great deal of through her work as senior researcher ing her time at the Legal Defense and charity work. She serves on the boards at Yale University. For over seventy Educational Fund she argued before of various non-profit organizations, in- years she has studied astronomy and the Supreme Court ten times, winning cluding the Kennedy Center, Lincoln has received an undergraduate degree nine appeals. She is renowned for her Center, New York University’s College from Radcliffe in mathematics and a work with Thurgood Marshall and oth- of Arts and Science, and the Children’s doctorate from Harvard. Her interest ers on the landmark Brown versus Museum. She has been honored for her in stars began early in her childhood Board of Education case. work as a business leader and commu- when she saw two stars collide. Judge Motley entered politics in 1964, During World War II, Professor nity activist. She received the Ellis Is- serving in the New York State Senate. Hoffleit worked as a mathematician at land Medal of Honor, the Big Brothers- In 1965 she became the first woman to the Ballistic Research Laboratories at Big Sisters National Hero Award, and the Aberdeen Proving Ground in Mary- serve as a City Borough President. the Direct Marketing Hall of Fame land. It is here that she felt the effects During this time, she worked on ways Award. Ms. Vernon is a remarkable en- of being a female in a male-dominated to improve the inner-city through bet- trepreneur, businesswomen, and role field. She was paid less for doing the ter housing and schools. In 1966, she be- model. same work as her male colleagues. In came the first African-American The final inductee is Mabel Osgood fact, despite her doctorate she still re- woman to be appointed to a federal Wright. She was a resident of Fairfield, ceived a sub-professional ranking. judgeship in the U.S. District Court for Connecticut and was the founder and However, she protested this treatment the Southern District of New York. As President of the Connecticut Audubon and as a result was given her due rank a federal judge she continued to break Society. Wright established the first and ultimately transferred to Wash- new ground. In 1982 she was made chief bird sanctuary in the United States, ington. judge and in 1986 was appointed senior naming it Birdcraft. She founded the In 1956, she went on to direct the judge. Neither position had ever been sanctuary around the turn of the cen- Maria Mitchell Observatory in Nan- held by a woman before her. tury, fearing that bird life was being tucket, Mass. Her work there helped to Judge Motley’s work for justice over gradually eradicated. provide women with more substantial five decades has been responsible for Wright saw conservation education opportunities in astronomy. An indica- some of the most extraordinary as a key element to sustaining wildlife. tion of her success is that twenty-five changes in American culture during She wrote many books in an effort to percent of the students who worked our history. She has received many introduce children to nature apprecia- with Professor Hoffleit have gone on to awards and honorary degrees for her tion and conservation. She published a become professional astronomers. immense contributions to civil rights field guide to New England birds in As a member of the Yale research and the legal profession. 1895. During this time, the Audubon faculty, Professor Hoffleit has made A third inductee is Rosa Ponselle. movement was still young and was immense academic contributions to Born Rosa Melba Ponzillo, she was a lacking public support. Through her in- her field. She is most renowned for her first generation American, the daugh- volvement she helped to revive the or- two star catalogs. Her most well ter of Italian immigrants who settled ganization on the state level. Aside known catalog, The Bright Star Cata- in Meriden, Connecticut. She began from serving as President of the Con- logue, has been defined as ‘‘the bible of studying music and singing at age ten. necticut Audubon Society, she served virtually every stellar astronomer.’’ Her musical break came at eighteen as an officer of the national group and Despite retiring from Yale over twen- when she auditioned for the great as an editor and writer for Bird Lore ty years ago, Professor Hoffleit con- opera legend, Enrico Caruso. Imme- magazine. tinues to go to work every day. In diately after auditioning, she was cast It is said that Wright was unique in these past twenty years, she has not in the role of Leonora in the Metropoli- the environmental movement. This is drawn a salary. She is dedicated to tan Opera’s staging of Verdi’s ‘‘La because she was a nature writer as well educating her colleagues and future as- Forza del Destino.’’ She remained loyal as a community leader and her mes- tronomers, rather than promoting her- to the Metropolitan throughout her ca- sage focused not on the protection of self and her career. As a result of her reer, and she spent all but four seasons our national parks but the preserva- profound selflessness and service, the of her nineteen-year career performing tion of our backyards, our gardens, and effects of her efforts will be as limitless there. In fact, she was the first Amer- our bird sanctuaries. She believed the as the stars she has spent a lifetime ican-trained singer to star at the Met- best way to preserve nature was studying. ropolitan. through teaching children how to do it.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00103 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4742 CONGRESSIONAL RECORD — SENATE May 12, 1998 Although she died in 1935, her mes- ported by the Administration. All of capped. Safeguards will also be im- sage lives on at the Birdcraft Bird the major veterans’ service organiza- posed to ensure the cap is not exceeded. Sanctuary which remains a museum tions have urged enactment of this leg- This bill may even save Medicare dol- containing exhibits of Connecticut islation. And, as I previously noted, the lars by imposing a mandatory five per- wildlife and providing frequent tours Senate approved this legislation last cent discount on its reimbursement for for school children. year as part of the Senate-approved services provided to veterans. All five of these inductees are richly Balanced Budget Act. Those targeted by this legislation are deserving of this award. I am pleased, I am pleased to add my name to this lower- and middle-income veterans who indeed, that their remarkable lives will bill as a cosponsor, and I urge my col- are no longer eligible for treatment at now become better known to the people leagues to support this legislation.∑ the VA because of its constrained re- of Connecticut and the United States f sources. People like Mr. John C. Elk- for generations to come.∑ ins, of Columbia, South Carolina, who RECOGNITION OF DR. LOUIS is in his late seventies and who served f AVIOLI over 28 years in the military. Recently, VETERANS’ EQUALITY FOR ∑ Mr. BOND. Mr. President, on May 19, Mr. Elkins wrote this in a letter to me: TREATMENT AND SERVICES ACT an endowed lectureship, at Washington ‘‘Oh, I know some think we hang on to OF 1998 University in my home State of Mis- life and drain government resources ∑ Mr. SPECTER. Mr. President, as souri, will be named in honor of Louis that are being paid for by the younger Chairman of the Veterans’ Affairs Avioli, M.D., for his contribution to workers. But I must ask you and those Committee, I have sought recognition the field of bone and mineral metabo- who question us: isn’t three wars in a to express my support for the Medicare lism. Washington University and St. lifetime worth something?’’ subvention demonstration project leg- Louis University employ the largest The veterans of our nation have islation which has been introduced by group of bone research scientists in the served honorably and faithfully, often Senator JEFFORDS. This important leg- world. Dr. Avioli is known as a legend under perilous conditions, and they islation was approved by the Senate in this field and for good reason. have sacrificed both with the loss of last year as part of the Balanced Budg- Dr. Avioli is the founder of the Amer- their lives and with their livelihoods. et Act, but the measure was stricken ican Society for Bone and Mineral Re- Thousands of veterans have experi- from the final version of that legisla- search (ASBMR), and is responsible for enced any number of health care prob- tion in conference. I hope that this individually combining the growing re- lems. These veterans should have the year, the House will recede from its ob- search interests beginning from a large same access to health care as all other jections, and we can send this legisla- range of disciplines into what is now Americans and, quite frankly, Mr. tion, which is supported by the Admin- the top scientific society devoted to President, they deserve more for the istration, to the President for his sig- bone and mineral research. The mem- sacrifices they have made. nature. bership of ASBMR has grown to more Mr. President, you will remember This bill would begin the process of than 3,000 scientists and more than what my good friend, the late Presi- opening a new—and vitally needed— 5,000 attend the annual convention. Dr. dent John F. Kennedy said in his inau- source of funding for the provision of Avioli has been appointed to numerous gural address: ‘‘Ask not what your health care services by the Department positions, been published countless country can do for you. Ask what you of Veterans Affairs (VA). It would times and has several honorary de- can do for your country.’’ The men and grant to VA, on a demonstration grees. women of the armed services, our vet- project basis, the authority to collect With so many impressive accomplish- erans, did just that. They answered and retain funds from Medicare—just ments, it is no wonder an endowed their country’s call to duty, and in re- as VA collects reimbursement funds lectureship is named in his honor. sponse they were often put in harm’s from veterans’ private insurance car- Commending Dr. Avioli for his many way. They served 24 hours a day, seven riers—for the costs associated with years of service to the field of bone and days a week, all around the world. treating Medicare-eligible veterans’ mineral metabolism, I am glad to say They continue to support and defend non-service-connected illnesses and in- that the State of Missouri is enriched our nation’s interests, and I believe it juries. with his wisdom and leadership. I join is time our nation supported their in- The Balanced Budget Act specifies the many who congratulate and thank terests. that appropriated funding for the pro- him for his hard work and wish him I urge my distinguished colleagues to vision of health care services by VA continued success in future years.∑ join Senators JEFFORDS, ROCKEFELLER, will be flat over the next five fiscal f SPECTER, MURKOWSKI, and me in sup- years. At the same time, 7.7 million porting the VETS Act of 1998. It is VETERANS’ EQUALITY FOR World War II veterans and 4.5 million among the very least that we in Con- TREATMENT AND SERVICES Korean War veterans—veterans who gress can do to continue our support (VETS) ACT OF 1998 are eligible for Medicare benefits—will for these veterans, like Mr. Elkins, who require extensive heath care assistance ∑ Mr. HOLLINGS. Mr. President, as a have given so much to this country, as they age. It is critical that these supporter of the Veterans’ Equality for while at the same time helping to pre- veterans be allowed to bring their Treatment and Services Act of 1998, in- serve the VA medical system and the Medicare benefits to VA so that VA troduced last Friday by Senator JEF- Medicare trust.∑ might be better able to meet their FORDS on behalf of myself, Senator f needs. ROCKEFELLER, Senator SPECTER, and This legislation will surely assist VA Senator MURKOWSKI, I am committed RECOGNITION OF CFIDS by providing a new revenue stream. to ensuring that our aging veterans AWARENESS DAY But it will also benefit Medicare. have access to quality, affordable, reli- ∑ Mr. SANTORUM. Mr. President, I Under the plan set out in this legisla- able, and convenient health services. rise today to reaffirm my support for tion, VA would be reimbursed at a level However, as budgets decrease so, un- the tireless efforts of the Chronic Fa- not to exceed 95% of the rate Medicare fortunately, do services provided. The tigue Syndrome Association of Lehigh would otherwise pay a private hospital demonstration project outlined in the Valley to fight Chronic Fatigue and for care supplied to a Medicare-eligible VETS Act of 1998 will allow Medicare Immune Dysfunction Syndrome veterans. In summary, under this legis- to reimburse the VA for its services (CFIDS), or Chronic Fatigue Syndrome lation Medicare would receive care for without putting a strain on the Medi- (CFS). its veteran beneficiaries at a discount, care trust, and will provide an addi- For six years, the CFS Association of and VA would receive a vitally needed tional funding source for the VA. The Lehigh Valley has been dedicated to new source of funding. project authorized by this legislation finding a cure for CFIDS, increasing Medicare subvention legislation is will be conducted over a three-year pe- public awareness, and supporting vic- supported by all of the members of the riod, at up to 12 sites across the nation, tims of this disease. The Lehigh Valley Veterans Affairs Committee. It is sup- and annual Medicare spending will be organization is actively involved in

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00104 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4743 CFS-related research. In addition, they TRIBUTE TO DEBORAH MILLER States Department of Commerce’s Mi- regularly participate in seminars to ∑ Mr. LAUTENBERG. Mr. President, I nority in Business Development Agen- train health care professionals. Public am pleased to extend my congratula- cy (MBDA). Dr. Kaiser is president of education is an essential aspect of the tions to Deborah Miller on her 14 years Inez Kaiser & Associates, Inc., the old- association’s mission. Likewise, the of outstanding service to the Solomon est African-American female-owned Lehigh Valley organization raises pub- Schecter Day School of Raritan Valley public relations firm in the United lic awareness through the Inter- in East Brunswick, NJ, where she cur- States. Dr. Kaiser was chosen for the award national CFIDS Awareness Day, which rently serves as Director. Deborah has based on her forty+ years of advocacy is held on May 12 each year. I would decided to leave the school to pursue on behalf of minority business develop- also note that the CFS Association of her own education, and I want to wish ment. In addition to her untiring ef- Lehigh Valley received the CFIDS Sup- her continued success in her future en- port Network Action Award in both forts to expand minority roles in the deavors. 1995 and 1996 for their initiatives in business industry, she was a consultant While I’m sure that everyone at Sol- public advocacy. and advisor to former Presidents Nixon Although researchers have made omon Schecter is saddened by Debo- and Ford on minority women’s busi- some advances in the study of this con- rah’s departure, her eagerness to earn a ness issues and organized the first na- dition, CFIDS remains a mysterious Ph.D. in Jewish Education at the Jew- tionwide conference of Women in Busi- illness. Presently, there is no known ish Theological Seminary is a fitting ness for the United States Department cause or cure. Victims experience a next step in Deborah’s already distin- of Commerce. Over the years she has wide range of symptoms including ex- guished academic career. After fin- strived to help other minority busi- treme fatigue, fever, muscle and joint ishing her undergraduate work at Bar- nesses by identifying their problems pain, cognitive and neurological prob- nard College, Deborah went on to earn and offering advice on how to address lems, tender lymph nodes, nausea, and a Masters in Jewish Education and a those problems. Being the only Afri- vertigo. Recently, the Centers for Dis- Day School Principals Certificate from can-American female in the National ease Control gave CFIDS ‘‘Priority 1’’ the Jewish Theological Seminary of Hall of Fame of Women in Public Rela- status in the new infectious disease America. tions, she is also the president of the category, which also includes cholera, Deborah has been a devoted educator National Association of Minority malaria, hepatitis C and tuberculosis. and administrator during her many Women in Business. Until this disease is obliterated, the years teaching. Since her arrival at Dr. Kaiser has set a positive example CFS Association of Lehigh Valley will Solomon Schecter Day School 14 years for minority business people every- continue its research and education ago, Deborah has done everything to where and it is a pleasure to see her campaigns. develop the school and make it a com- impressive accomplishments receive Mr. President, I urge my colleagues plete success. the recognition they deserve. My home to join me in commending the Lehigh While Deborah has served as Direc- State of Missouri is extremely fortu- Valley organization and in supporting tor, the school has been nationally rec- nate to have such a shining example of the following proclamation: ognized for its excellence in education. success and hard work. I wish her con- PROCLAMATION It is particularly well known for its in- tinued prosperity and achievement in Whereas, the Chronic Fatigue Syndrome tegration of Jewish and General Stud- the coming years.∑ (CFS) Association of the Lehigh Valley ies curricula and its ‘‘immersion’’ Jew- f joined the Chronic Fatigue and Immune Dys- ish Studies courses in Hebrew. The function Syndrome (CFIDS) Association of school has also grown in size during PRESIDENT OF SUNY FARMING- America, the world’s largest organization Deborah’s tenure. It originally taught DALE CELEBRATES TWENTY dedicated to conquering CFIDS, in observing students in pre-kindergarten through YEARS May 12, 1998 as International Chronic Fa- 6th grade. Now the school teaches 7th ∑ Mr. D’AMATO. Mr. President, I rise tigue and Immune Dysfunction Syndrome today to pay tribute to Dr. Frank A. Awareness Day; and and 8th graders as well. When Deborah Whereas, the Chronic Fatigue Syndrome started, there were 180 students en- Cipriani, whose long and outstanding Association of the Lehigh Valley, a member rolled. Now there are 315. career as president of SUNY Farming- of the Support Network of the CFIDS Asso- As if Deborah didn’t have enough to dale will be celebrated with much ciation of America, is celebrating their sixth keep her busy, her extracurricular ac- pomp on Wednesday, May 20, 1998. year of service to the community; and tivities are equally impressive. Outside Dr. Cipriani’s outstanding qualities Whereas, CFIDS is a complex illness which of Solomon Schecter, Deborah teaches of enlightened leadership and innova- is characterized by neurological, rheu- tion brought unprecedented success to matological and immunological problems, Jewish Studies to adults in neigh- boring educational facilities and syna- SUNY Farmingdale. Dr. Cipriani took incapacitating fatigue, and numerous other the school from a two year agrarian in- symptoms that can persist for months or gogues. She also happens to be a well- years and can be severely debilitating; and known author of children’s fiction. She stitution to a four-year college, one of Whereas, estimates suggest that hundreds currently has written five books for the largest of the nine Colleges of of thousands of American adults already children about Judaism. Her style is Technology in the New York State have CFIDS; and clever and fun-loving, and her books University system. Whereas, the medical community and the His great success is readily visible on are enjoyed by all ages as a result. general public should receive more informa- the SUNY Farmingdale Campus. Mr. Deborah’s departure from Solomon tion and develop a greater awareness of the Cipriani’s other associations and affili- Schecter Day School may be bitter- problems associated with CFIDS. While ations are not as well known but are much has been done at the national, state, sweet, but she has a great deal to look worthy of commendation. They in- and local levels, more must be done to sup- forward to as she continues to learn clude: Team Chairman for the Middle port patients and their families; and about Jewish literature, history and Whereas, research has been strengthened States Association of Colleges and the Torah. The lucky ones are not only by the efforts of the Centers for Disease Con- Schools Evaluation; Chairman of the trol, the National Institutes of Health, and those who have known her at Solomon Board, Regional Industrial Technical other private institutions, the CFS Associa- Schecter, but those students who will Education; Member, New York State- tion of the Lehigh Valley recognizes that have the privilege of being in Deborah’s wide Job Training Partnership Council; much more must be done to encourage fur- classroom when she returns to teach- Member, New York State Education ther research so that the mission of con- ing full time.∑ quering CFIDS and related disorders can be Department’s Advisory Council on achieved; f Postsecondary Education; just to name a few of the associations and affili- Therefore, the United States Senate com- RECOGNITION OF DR. INEZ KAISER mends the designation of May 12, 1998 as ations that demonstrate the special CFIDS Awareness Day and applauds the ef- ∑ Mr. BOND. Mr. President, I rise to concern that Dr. Cipriani has for edu- forts of those battling the illness. pay tribute to Dr. Inez Kaiser for being cation. I appreciate the Senate’s consider- named 1997 National Minority Advo- Born in New York of immigrant par- ation of this issue, and I thank my col- cate of the Year. She received this ents, Dr. Cipriani has been a New York- leagues for their attention.∑ prestigious award from the United er all of his life, with the exception of

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00105 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4744 CONGRESSIONAL RECORD — SENATE May 12, 1998 a stint in the United States Air Force. stitution and the Bill of Rights. The ity and capabilities of today’s Internet He attended PS 14 in Corona, Queens, three-day national competition simu- technologies, which were not designed and Brooklyn Technical High School, lates a congressional hearing whereby for either the scale or mode of its cur- and holds the A.B. degree from Queens students are given the opportunity to rent use. Even though new applications College and the M.A. and Ph.D. Degrees demonstrate their knowledge while and dramatic private investment have from New York University. they evaluate, take, and defend posi- increased the Internet’s abilities, tech- Dr. Cipriani was an officer in the tions on relevant historical and con- nological bottlenecks have sprung up United States Air Force who achieved temporary constitutional issues. The throughout the system. the rank of Captain and the rating of simulated congressional hearing con- The Next Generation Internet comes Navigator-Flight Instructor before re- sists of oral presentations by the stu- at a crucial juncture in the develop- ceiving an honorable discharge. As a dents before panels of adult judges. ment of the nation’s information infra- member of the American Society of Administered by the Center for Civic structure. During the period of NGI- Safety Engineers, he pursued his grad- Education, the ‘‘We the People . . .’’ sponsored research, the telecommuni- uate studies while employed in the En- program has provided curricular mate- cations backbone of the US will likely gineering Department of an inter- rials at upper elementary, middle, and undergo a dramatic transition in which national insurance company. He speaks high school levels for more than 75,000 the levels of packet-based traffic will Italian and French fluently, and has teachers and 24 million students na- surpass that of conventional telephone been a strong advocate of international tionwide. Members of Congress and traffic. The speed and degree of the im- education and a strong supporter of a their staff enhance the program by dis- pending transition is indicative of the humanities component in technical cussing current constitutional issues urgency with which the NGI goals must education curricula. with students and teachers. be pursued and the results of that re- Dr. Cipriani is married to Judith M. The ‘‘We the People . . .’’ program is search transition to the commercial Pellathy and has four children—Maria, designed to help students achieve a sector. Frank, Michael and Dominique. reasoned commitment to the funda- Recently, I had a first-hand look at His accomplishments are varied and mental values and principles that bind some of these advanced applications. great and we might say that Dr. Frank Americans together as a people. The Highway 1, a non-profit organization A. Cipriani is the salt of the earth. He program also fosters civic dispositions established to educate Members of Con- has done much for SUNY Farmingdale or traits of public and private char- gress and their staffs about the Inter- net and associated technical develop- and for the state of New York. It is no acter conducive to effective and re- ments, showcased several remarkable wonder that such a fine celebration is sponsible participation in politics and projects. As a physician, I was in- being prepared to commemorate his government. trigued by the virtual reality ‘‘Immer- twenty years of service to such a fine I want to commend these constitu- sion Desk’’ collaboration demonstra- institution. Frank, I salute you and tional experts on their academic tion. Using special glasses, I was able wish you much health and happiness in achievements as participants in the to take a guided tour of the human ear, the days to come.∑ ‘‘We the People . . .’’ program and observing its structure in three dimen- commend them for their great achieve- f sions, and able to interact with the ment in reaching the national finals.∑ ‘‘WE THE PEOPLE . . . THE guided and the structure in ‘‘real CITIZEN AND THE CONSTITUTION’’ f time’’. It was immediately obvious to ∑ Mr. MCCONNELL. Mr. President, last NEXT GENERATION INTERNET me the educational benefits that will week, more than 1200 students from ∑ Mr. FRIST. Mr. President, I rise evolve from putting similar devices across the nation came to Washington, today in support of S. 1609, the ‘‘Next into the hands of our nation’s teachers D.C. to compete in the national finals Generation Internet Research Act of and students. Sophisticated applica- of the ‘‘We the People . . . The Citizen 1998.’’ This legislation funds six agen- tions, such as the ones I witnessed at and the Constitution’’ program. I am cies that are involved in creating ad- Highway 1, place heavy technical de- proud to announce that the competing vanced computer networking tech- mands upon the network. However, until the Internet’s infrastructure lim- class for Kentucky represented Louis- nology that will make tomorrow’s itations have been overcome, these ap- ville Male High School. These young Internet faster, more versatile, more plications will remain outside the scholars worked diligently to reach the affordable, and more accessible than today. The Next Generation Internet reach of those who benefit the most. national finals by winning local com- Some of the limitations that now im- (NGI) is an advanced research program petitions in the Commonwealth. pede advanced applications can be mas- The distinguished members of the which fosters partnerships among aca- tered through a straightforward appli- class who represented Kentucky were: demia, industry, and Federal labora- cation of the existing technology, but Angela Adams, Perry Bacon, Katherine tories to develop and experiment with there is an entire class of problems Breeding, Will Carle, Eric Coatley, technologies that will enable more that requires new approaches. I believe Courtney Coffee, Brian Davis, Mary powerful, flexible information net- that our nation’s research and develop- Fleming, Matt Gilbert, Amanda Hollo- works in the 21st century. The overall ment enterprise hold the key. The Next way, Holly Jessie, Heath Lambert, objective of the program is to perform Generation Internet program will pro- Gwen Malone, Kristy Martin, Brian fundamental research in technologies vide grants to our universities and na- Palmer, Lauren Reynolds, Shane that will accelerate the development of tional laboratories to perform the re- Skoner, LaVonda Willis, Bryan Wilson, a high-speed, high-quality network in- search that will surmount these tech- Darreshia Wilson, Beth Wilson, Janelle frastructure to support revolutionary nical challenges and create the tech- Winfree, Treva Winlock, Jodie Zeller. applications. nology that will energize the Internet I would also like to recognize their The Internet is a prototypical suc- of tomorrow. teacher, Sandy Hoover, who deserves cess story. There are in fact, multiple Mr. President, I believe that passage much of the credit for the success of dimensions to its success. It was a suc- of this legislation will continue the the class. The state coordinators, cessful public-private collaboration. It tradition of prudent and successful in- Deborah Williamson and Jennifer Van demonstrated successful commercial vestment in science and technology. Hoose, and the district coordinator, application of technology developed as The Next Generation Internet Research Dianne Meredith, also contributed a part of a mission-directed research pro- Act will help ensure that the Internet significant amount of time and effort gram. It exhibited a successful transi- reaches its maximum potential to pro- to help the class reach the national tion of an operational system from the vide greater education and economic finals. public to the private sector. And most benefits to the country.∑ The ‘‘We the People . . . the Citizen importantly, it is a prime example of a f and the Constitution’’ program is the successful Federal investment. most extensive educational program in In some respects the Internet is now ORDER OF BUSINESS the country developed specifically to ‘‘suffering’’ from too much success. We Mr. MCCAIN. I note the absence of a educate young people about the Con- are currently constrained by the capac- quorum.

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00106 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4745 The PRESIDING OFFICER. The AUTHORIZING THE PRINTING OF A of Trade first established 150 years ago. clerk will call the roll. DOCUMENT ENTITLED ‘‘WASH- Food prices in the United States are The legislative clerk proceeded to INGTON’S FAREWELL ADDRESS’’ lower than they otherwise would be be- call the roll. Mr. MCCAIN. Mr. President, I ask cause of the Board of Trade. Interest Mrs. FEINSTEIN. Mr. President, I unanimous consent that the Senate rates on federal securities—and, there- ask unanimous consent that the order proceed to the immediate consider- fore, all interest rates that are related for the quorum call be rescinded. ation of S. Res. 228, submitted earlier to rates on Treasury securities—are The PRESIDING OFFICER. Without lower than they otherwise would be be- today by Senators WARNER and FORD. objection, it is so ordered. cause of the Chicago Board of Trade. The PRESIDING OFFICER. Without The Senator from California is recog- The existence of this extremely effi- objection, it is so ordered. The clerk nized. cient, vital marketplace has saved us will report the resolution. Mrs. FEINSTEIN. I thank the Chair. all money, whether we have ever pur- The assistant legislative clerk read (The remarks of Mrs. FEINSTEIN and chased a futures contract or not. Mr. BROWNBACK pertaining to the sub- as follows: It is not by accident that this market mission of S. Res. 227 are located in to- A resolution (S. Res. 228) to authorize the is located in Chicago. Due to its cen- printing of a document entitled ‘‘Washing- day’s RECORD under ‘‘Submission of tral location, access to waterways and ton’s Farewell Address.’’ Concurrent and Senate Resolutions.’’) proximity to farmland, Chicago is the Mr. BROWNBACK. Mr. President, I The Senate proceeded to consider the natural crossroads of commerce in the suggest the absence of a quorum. resolution. United States. Before the Board was The PRESIDING OFFICER. The Mr. MCCAIN. I ask unanimous con- created, however, problems of supply clerk will call the roll. sent that the resolution be agreed to and demand, transportation, and stor- Mr. MCCAIN. Mr. President, I ask and the motion to reconsider be laid age created chaos in the agricultural unanimous consent that the order for upon the table. marketplace. The solution was simple the quorum call be rescinded. The PRESIDING OFFICER. Is there but ingenious. Eighty-two Chicago The PRESIDING OFFICER (Mr. objection? Without objection, it is so merchants came together to establish a ALLARD). Without objection, it is so or- ordered. price discovery mechanism to insure dered. The resolution (S. Res. 228) was against volatile grains prices. The ex- f agreed to as follows: change began modestly—even giving a S. RES. 228 SKILLED WORKERS IMMIGRATION free lunch to guarantee the attendance Resolved, That the booklet entitled, ‘‘Wash- BILL of traders—but the concept caught on ington’s Farewell Address’’, prepared by the rapidly and spawned the global multi- Mr. MCCAIN. Mr. President, I had in- Senate Historical Office under the direction billion dollar futures industry we know tended to propound a unanimous con- of the Secretary of the Senate, be printed as today. sent agreement concerning S. 1723, the a Senate document. Belying its age, the Chicago Board of skilled workers immigration bill, SEC. 2. The Senate document described in Section 1 shall include illustrations and Trade remains energetic and eternally which Senator ABRAHAM has worked on shall be in the style, form, manner, and innovative. In the past ten years, the for at least a year and a half that I printing as directed by the Joint Committee Board has introduced over 100 new know of, and worked very hard. There on Printing after consultation with the Sec- products. Four years ago, the Board are still some objections. I do not retary of the Senate. launched Project A, their global over- think those objections are major on SEC. 3. In addition to the usual number of night electronic trading system, that the other side of the aisle. And since copies, there shall be printed 600 additional has enjoyed tremendous success and those objections would be voiced, I will copies of the document specified in Sec. 1 for will soon be expanded. This year, the not propound that unanimous consent the use of the Secretary of the Senate. Board of Trade will launch the Chicago request at this time. f Board Brokerage, a new electronic I hope we can work with the other COMMEMORATING THE 150TH ANNI- trading system for the trading of cash side of the aisle so that there can be an VERSARY OF THE ESTABLISH- US Treasury securities. agreement on relevant amendments MENT OF THE CHICAGO BOARD The success of the Board of Trade has and we can move forward on this issue. OF TRADE not only created huge benefits for our It is a very, very important issue, as nation generally, it has also contrib- Mr. MCCAIN. Mr. President, I ask Senator ABRAHAM pointed out earlier uted enormously to the economy of today. We have now reached our quota unanimous consent that the Senate Chicago. Chicago’s two future ex- of H–1B workers for the year. Our high- proceed to the consideration of S. Res. changes have created over 150,000 jobs, tech industries need workers. And this 229 introduced earlier today by Sen- and put over $10 billion each night in modest proposal, although an impor- ators MOSELEY-BRAUN and DURBIN. the city’s banks. The PRESIDING OFFICER. Without tant one, would simply raise that limit Moreover, the Board has also made objection, it is so ordered. The clerk by at least enough to get these high- major aesthetic contributions to Chi- will report the resolution. tech industries through this year. cago. In a city world-renowned for its I understand the concerns on the The assistant legislative clerk read architecture, the beautiful Board of other side of the aisle about this bill, as follows: Trade structure stands out as a major and yet I believe that we could address A resolution (S. Res. 229) commemorating example of late Art Deco style—and those through the amending process. the 150th anniversary of the establishment of one of Chicago’s treasured landmarks. the Chicago Board of Trade. So it would be our intention tomorrow The Chicago Board of Trade is a shin- to try and work out any concerns there The Senate proceeded to consider the ing example of what a little ingenuity might be and move forward tomorrow resolution. and Midwest common sense can accom- with the legislation. Ms. MOSELEY-BRAUN. Mr. Presi- plish. The resolution my good friend Mr. President, as soon as the staff is dent, this year, the Chicago Board of from Illinois, Senator DURBIN, and I are ready, it will be my intention to move Trade is celebrating its 150th anniver- today introducing, congratulates the to adjourn. sary. Its an anniversary well worth Board for 150 years of real accomplish- Mr. President, I suggest the absence celebrating, and not just in Chicago, ment, and salutes the Board for dem- of a quorum. but all across our country, because the onstrating the kind of leadership that The PRESIDING OFFICER. The vibrant, creative marketplace the Chi- will ensure that their markets are as clerk will call the roll. cago Board of Trade created has meant dynamic and useful to everyone in- The assistant legislative clerk pro- a lot to all of us. volved in agricultural and our financial ceeded to call the roll. Whether we are in the food produc- system—and to our economy gen- Mr. MCCAIN. Mr. President, I ask tion and distribution system, or not; erally—over the next 150 years. The unanimous consent that the order for whether we participate in our nation’s Chicago Board of Trade richly deserves the quorum call be rescinded. financial markets or not, we have all to be celebrated, and I urge all of my The PRESIDING OFFICER. Without benefitted from the agricultural and fi- Colleagues to work with Senator DUR- objection, it is so ordered. nancial marketplace the Chicago Board BIN and I to ensure that this resolution

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00107 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4746 CONGRESSIONAL RECORD — SENATE May 12, 1998 receives prompt and favorable consid- first telegraph line and the digging of the Il- options trading facility was born, eration by the Senate. linois and Michigan Canal? bringing buyers and sellers from all Mr. President, I ask unanimous con- What, despite its age, is so healthy and walks of life together under one roof vital that it is one of the city’s biggest eco- sent that the editorials from the Chi- nomic engines, generating 150,000 jobs and for the first time. cago Tribune and Chicago Sun-Times producing $35 billion in bank deposits? And With the birth of the Chicago Board be printed in the RECORD. what is so uniquely successful that cities of Trade came a financial industry There being no objection, the mate- around the world are trying to copy it? which has spread around the world over rial was ordered to be printed in the Obviously we are not talking about the the last 150 years. The Chicago Board RECORD, as follows: Cubs or the White Sox. Not even the world of Trade has been a vital part of Chi- famous Michael Jordan can claim this kind [From the Chicago Tribune, Apr. 3, 1998] cago since the first railroad, telegraph of impact. The answer is the Chicago Board lines, and the digging of the Illinois CBOT LOOKS BACK AND FORWARD AT 150 of Trade, which today celebrates the 150th As the City of Chicago grew up out of the anniversary of its founding. and Michigan Canal. The Board has prairie grasses and farmlands of the Amer- A far cry from the striking and historic ed- weathered through a Civil War, the ican Midwest in the latter half of the 19th ifice it now occupies at the foot of La Salle great Chicago fire, The Great Depres- Century, the Chicago Board of Trade grew Street, the exchange began in 1848 when 83 sion, World War I and II, and countless with it. Some would say it was the other way grain merchants met in rooms over a Water other struggles. around: The city grew as its status as a trade Street flour shop to discuss a creative idea: The Chicago Board of Trade is a pow- center grew. They wouldn’t be wrong. How to protect themselves against the risks erful economic engine that generates The first ‘‘skyscrapers’’ to dominate this of ever-changing grain prices. 150,000 jobs throughout the particular landscape were giant grain silos, Their idea caught on as Chicago rapidly be- erected to hold the millions of bushels of came an agricultural and shipping hub. Sim- Chicagoland area and also produces $35 grain pouring into the city from the west ply put, the exchange offered traders a billion in bank deposits each year. Over and south. The silos are long gone, but the chance to buy or sell grain for a certain price the years, the Chicago Board of Trade Board of Trade, which celebrates its 150th at a later date. For some, it offered the secu- has grown beyond grain and livestock, anniversary this year, remains a vibrant cen- rity of a hedge against troublesome price and has branched out into soybean fu- ter of commerce linking the buyers and sell- fluctuations; for others it offered a chance tures, corn options, and wheat options. ers of the world. for lucrative profits. Last year, the Chicago Board of Trade It was pure Chicago—innovative, risky, Founded by 82 Chicago merchants in 1848, set the record for the trading of soy- CBOT made its mark by revolutionizing how boisterous, expansive, entrepreneurial and grain was stored and sold. It standardized a gritty. And it grew with the city, from a bean futures traded. The Chicago Board method of weighing and grading grains so handful of corn, soybean and other grain of Trade also established records for that all grain of a particular grade could be contracts to imaginative trading in every- the trading soybean meal, and soybean stored together. The seller was given a re- thing from precious metals, stock options oil. ceipt for the grain he brought in, and that and interest rate futures to pollution emis- Mr. President, it has been a long receipt was sold to the buyer, who redeemed sion allowances and, most recently, the Dow time since the days when prices were it for the stated amount and grade of grain. Jones Industrial Average index. That growth shouted through a cloud of dust on the and its impact on Chicago and the world are Of course, it didn’t take long for traders to floor of the Chicago Board of Trade. figure out they could make a bundle if they detailed in today’s Business section on Page contracted at this month’s wheat prices to 58. The Board has relocated several times deliver a load of wheat next month—if the Its growth has not been without problems. throughout its 150 years. Currently, the price of wheat were to drop next month. The city’s leadership in this form of ‘‘risk Board is located in downtown Chicago. Then they could buy it at next month’s low management’’ is threatened by copycats, The base of the building spans an en- price and sell it for this month’s higher such as markets in Britain and other coun- tire city block, and is a Chicago land- price. tries where the freewheeling spirit that gave mark. Thus was born the futures market, a cen- Chicago its start is alive and well and func- Mr. President, I would like to take tioning without some questionable U.S. reg- tralized marketplace for sellers and buyers this opportunity to congratulate the of grain that replaced the cumbersome meth- ulations. A 1995 London Business School od of exchanging specific loads of grain. study, for example, found that the cost of Chicago Board of Trade on 150 years of From those origins have sprouted the world’s U.S. regulation is 57 percent higher than in bringing economic vitality to Chicago, largest futures exchange, now making mar- Britain. Furthermore, the Chicago exchanges the State of Illinois, and the world. kets in everything from soybeans to U.S. find themselves forever fending off proposals Mr. McCAIN. I ask unanimous con- Treasury bonds to the Dow Jones industrial for new taxes and restrictions on futures and sent that the resolution and preamble average. options. be agreed to, en bloc, and the motion Just as in the last century development of No one should fool himself into thinking to reconsider be laid upon the table, such restrictions would affect only a single, the railroads and telegraph helped CBOT and any statements relating thereto be reach beyond the Midwest, the modern Board high-flying industry. Consider: While bank- placed in the RECORD at the appro- of Trade is using cutting-edge technology to ing employment was declining nationally forge links with trading partners worldwide. from 1986 to 1994, it grew 10 percent in Chi- priate place as if read. In 1995, it became the first futures exchange cago. Thank Chicago’s exchanges, such as The PRESIDING OFFICER. Without to open a commercial service on the Inter- the Board of Trade, whose huge volumes cre- objection, it is so ordered. net, and since then it has established an ated the need for nearby banks, outfits from The resolution (S. Res. 229) was electronic system for overnight trades. New York, Europe and Asia—72 foreign agreed to. This year CBOT has entered into a cooper- banks in all—with their high-paying jobs. The preamble was agreed to. ative agreement with Eurex, its Swiss-Ger- The Sun-Times, this year celebrating its The resolution, with its preamble, man counterpart, and plans are in the works 50th anniversary, can admire this kind of reads as follows: to add a partner in Asia. Eventually, traders longevity, especially when it has meant for S. RES. 229 on the after-hours electronic system will be this community continuing prosperity and able to access those international markets opportunity for so many. Congratulations, from a single screen. CBOT. Whereas the Chicago Board of Trade, which That’s a long way from a bunch of grain Mr. DURBIN. Mr. President, I rise celebrates in April 1998 the 150th anniversary merchants exchanging slips of paper and today to pay tribute to the Chicago of its establishment, has been an essential contributor to financial growth in Chicago, shouting prices in a cloud of wheat dust. But Board of Trade, the most influential a remnant of that history lives on even at Illinois, and our Nation; marketplace for futures trading in the Whereas futures markets were developed the board’s new multimillion-dollar trading world, on the 150th anniversary of its floor, where ‘‘open outcry’’ trading still rules by finance pioneers in Chicago and today during normal trading hours. establishment. I am pleased to join my Chicago remains the commercial crossroads It’s a charming, chaotic anachronism—a colleague, Senator CAROL MOSELEY- of the world; link to the last century that cannot long en- BRAUN, in introducing a resolution Whereas the Chicago Board of Trade, the dure into the next if the Chicago Board of commemorating this momentous occa- oldest and largest futures and options ex- Trade is to maintain its pre-eminent place in sion. change, continues its tradition of innova- global commerce. On April 3, 1848, 83 merchants who re- tion, functioning as a global financial leader; Whereas the Chicago Board of Trade’s 150 [From the Chicago Sun-Times, Apr. 3, 1998] alized that the grain trade was growing years of accomplishments include such 150 YEARS OF SUCCESS rapidly, came together to form a mar- major achievements as inventing grain fu- What has been here as long as Chicago’s ketplace for grains and livestock. tures, founding the world’s premier trade first railroad? What arrived here with the Thus, the world’s largest futures and clearing system, launching the first stock

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00108 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY May 12, 1998 CONGRESSIONAL RECORD — SENATE S4747 options exchange, developing the first inter- Whereas the city of Madison was chosen as NATIONAL PEACE OFFICERS est rate futures, advancing the use of tech- the Wisconsin Territory’s permanent capital MEMORIAL DAY nology with its electronic trading system, in the fall of 1836 and construction on the and constructing the largest and most tech- Capitol Building began in 1837; Mr. MCCAIN. Mr. President, I ask nologically advanced trading floor in the Whereas, pursuant to legislation signed by unanimous consent that the Senate world; President James K. Polk, Wisconsin joined proceed to the immediate consider- Whereas the Chicago Board of Trade and the United States as the 30th state on May ation of calendar No. 336, S. Res. 201. its members have achieved success while ad- 29, 1848; The PRESIDING OFFICER. Without hering to the highest standards of uncompro- Whereas members of Native American objection, it is so ordered. The clerk mising integrity; and tribes have greatly contributed to the unique will report. Whereas the Chicago Board of Trade will culture and identity of Wisconsin by lending The assistant legislative clerk read continue as a world-leading financial institu- words from their languages to the names of tion into the next millennium: Now, there- as follows: many places in the State and by sharing fore, be it A resolution (S. Res. 201) to commemorate their customs and beliefs with others who Resolved, That the Senate— and acknowledge the dedication and sacrifice chose to make Wisconsin their home; (1) congratulates the Chicago Board of made by the men and women who have lost Trade and the city of Chicago, Illinois, on Whereas the Wisconsin State Motto of their lives while serving as law enforcement the 150th anniversary of the establishment of ‘‘Forward’’ was adopted in 1851; officers. Whereas Chester Hazen built Wisconsin’s the exchange; and The Senate proceeded to consider the (2) expresses its wishes for continued years first cheese factory in the town of Ladoga in of innovation, service, and leadership by the 1864, laying the groundwork for one of the resolution. Chicago Board of Trade into the next millen- State’s biggest industries; Mr. MCCAIN. I ask unanimous con- nium. Whereas Wisconsin established itself as a sent that the resolution and preamble f leader in recognizing the contributions of Af- be agreed to, en bloc, the motion to re- rican Americans by being the only State in consider be laid upon the table, and HONORING THE SESQUICENTEN- the union to openly defy the Fugitive Slave that any statements relating thereto NIAL OF WISCONSIN STATEHOOD Law; be placed in the RECORD at the appro- Mr. McCAIN. Mr. President, I ask Whereas the first recognized Flag Day priate place as if read. unanimous consent that the Senate celebration in the United States took place The PRESIDING OFFICER. Without at Stony Hill School in Waubeka, Wisconsin, proceed to the immediate consider- objection, it is so ordered. ation of calendar No. 360, S. Con. Res. on June 14, 1885; Whereas Wisconsin has sent 859,489 of its The resolution (S. Res. 201) was 75. sons and daughters to serve the United agreed to. The PRESIDING OFFICER. Without States in the Civil War, the Spanish-Amer- The preamble was agreed to. objection, it is so ordered. The clerk ican War, World War I, World War II, Korea, The resolution, with its preamble, will report. Vietnam, the Persian Gulf, and Somalia; reads as follows: The assistant legislative clerk read Whereas 26,653 Wisconsinites have lost S. Res. 201 as follows: their lives serving in the Armed Forces of A concurrent resolution (S. Con. Res. 75) the United States; Whereas the well-being of all citizens of honoring the sesquicentennial of Wisconsin Whereas Wisconsin allowed African Ameri- this country is preserved and enhanced as a statehood. cans the right to vote as early as 1866 and direct result of the vigilance and dedication The Senate proceeded to consider the adopted a public accommodation law as of law enforcement personnel; concurrent resolution. early as 1895; Whereas more than 700,000 men and Mr. McCAIN. I ask unanimous con- Whereas on June 20, 1920, Wisconsin be- women, at great risk to their personal safe- sent that the concurrent resolution came the first State to adopt the 19th ty, presently serve their fellow citizens in and preamble be agreed to, en bloc, the Amendment, granting women the right to their capacity as guardians of the peace; motion to reconsider be laid upon the vote; Whereas peace officers are the front line in Whereas in 1921 Wisconsin adopted a law table, and that any statements relating preserving our childrens’ right to receive an establishing equal rights for women; education in a crime-free environment that thereto be placed in the RECORD at the Whereas Wisconsin celebrated the centen- is all too often threatened by the insidious appropriate place as if read. nial of its statehood on May 29, 1948; fear caused by violence in schools; The PRESIDING OFFICER. Without Whereas many Wisconsinites have served Whereas 159 peace officers lost their lives objection, it is so ordered. the people of Wisconsin and the people of the in the performance of their duty in 1997, and The concurrent resolution (S. Con. United States and have contributed to the a total of 13,734 men and women have now Res. 75) was agreed to. common good in a variety of capacities, from made that supreme sacrifice; The preamble was agreed to. inventor to architect, from furniture maker Whereas every year 1 in 9 officers is as- The concurrent resolution, with its to Cabinet member, from brewer to Nobel saulted, 1 in 25 is injured, and 1 in 4,400 is preamble, reads as follows: Prize winner; killed in the line of duty; and S. CON. RES. 75 Whereas the State of Wisconsin enjoys a Whereas, on May 15, 1998, more than 15,000 diverse cultural, racial, and ethnic heritage peace officers are expected to gather in our nation’s Capital to join with the families of Whereas the land that comprises the State that mirrors that of the United States; their recently fallen comrades to honor them of Wisconsin has been home to numerous Na- Whereas May 29, 1998, marks the 150th an- and all others before them: Now, therefore, tive American tribes for many years; niversary of Wisconsin statehood; and be it Whereas Jean Nicolet, who was the first Whereas a stamp commemorating Wiscon- Resolved, That May 15, 1998, is hereby des- known European to land in what was to be- sin’s sesquicentennial will be issued by the ignated as ‘‘National Peace Officers Memo- come Wisconsin, arrived on the shores of United States Postal Service on May 29, 1998: rial Day’’ for the purpose of recognizing all Green Bay in 1634; Now, therefore, be it peace officers slain in the line of duty. The Whereas Father Jacques Marquette and Resolved by the Senate (the House of Rep- President is authorized and requested to Louis Joliet discovered the Mississippi resentatives concurring), That Congress— issue a proclamation calling upon the people River, one of the principal waterways of (1) honors the proud history of Wisconsin of the United States to observe this day with North America, at Prairie du Chien on June statehood; and the appropriate ceremonies and respect. 17, 1673; (2) encourages all Wisconsinites to reflect f Whereas Charles de Langlade founded at on the State’s distinguished past and look Green Bay the first permanent European set- forward to the State’s promising future. ORDERS FOR WEDNESDAY, MAY 13, tlement in Wisconsin in 1764; 1998 Whereas, before becoming a State, Wis- SEC. 2. TRANSMITTAL OF CONCURRENT RESOLU- consin existed under 3 flags, becoming part TION. Mr. MCCAIN. Mr. President, I ask of the British colonial territory under the Congress directs the Secretary of the Sen- unanimous consent that when the Sen- Treaty of Paris in 1763, part of the Province ate to transmit an enrolled copy of this con- ate completes its business today, it of Quebec under the Quebec Act of 1774, and current resolution to each member of the stand in adjournment until 9:30 a.m. on a territory of the United States under the Wednesday, May 13th. I further ask Second Treaty of Paris in 1783; Wisconsin Congressional Delegation, the Whereas on July 3, 1836, the Wisconsin Ter- Governor of Wisconsin, the National Ar- unanimous consent that on Wednesday, ritory was created from part of the North- chives, the State Historical Society of Wis- immediately following the prayer, the west Territory with Henry Dodge as its first consin, and the members of the Wisconsin routine requests through the morning governor and Belmont as its first capital; Sesquicentennial Commission. hour be granted and the Senate resume

VerDate Mar 15 2010 00:44 Oct 31, 2013 Jkt 081600 PO 00000 Frm 00109 Fmt 4624 Sfmt 0634 E:\1998SENATE\S12MY8.REC S12MY8 mmaher on DSKCGSP4G1 with SOCIALSECURITY S4748 CONGRESSIONAL RECORD — SENATE May 12, 1998 consideration of the motion to proceed DEPARTMENT OF STATE IN THE NAVY to S. 1873, the missile defense bill. PAUL L. CEJAS, OF FLORIDA, TO BE AMBASSADOR EX- THE FOLLOWING-NAMED OFFICER FOR APPOINTMENT The PRESIDING OFFICER. Without TRAORDINARY AND PLENIPOTENTIARY OF THE UNITED IN THE UNITED STATES NAVY TO THE GRADE INDICATED STATES OF AMERICA TO BELGIUM. WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND objection, it is so ordered. CYNTHIA PERRIN SCHNEIDER, OF MARYLAND, TO BE RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: Mr. MCCAIN. I further ask unani- AMBASSADOR EXTRAORDINARY AND PLENIPOTENTIARY OF THE UNITED STATES OF AMERICA TO THE KINGDOM To be Vice Admiral mous consent that the time between OF THE NETHERLANDS. 9:30 a.m. and 11:30 a.m. be equally di- REAR ADM. CHARLES W. MOORE, JR., 0000. IN THE AIR FORCE THE FOLLOWING-NAMED OFFICER FOR APPOINTMENT vided for debate on the motion to pro- IN THE UNITED STATES NAVY TO THE GRADE INDICATED ceed. Further, I ask unanimous consent THE FOLLOWING-NAMED OFFICER FOR APPOINTMENT WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: that following the debate, the Senate CATED WHILE ASSIGNED TO A POSITION OF IMPORTANCE proceed to vote on the motion to in- AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION To be vice admiral 601: voke cloture on the motion to proceed VICE ADM. ROBERT J. NATTER, 0000. to the missile defense bill. To be general THE FOLLOWING-NAMED OFFICER FOR APPOINTMENT IN THE UNITED STATES NAVY TO THE GRADE INDICATED The PRESIDING OFFICER. Without LT. GEN. CHARLES T. ROBERTSON, JR., 0000. WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND objection, it is so ordered. THE FOLLOWING-NAMED OFFICER FOR APPOINTMENT RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: Mr. MCCAIN. Mr. President, I suggest IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- To be vice admiral the absence of a quorum. CATED WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION VICE ADM. THOMAS B. FARGO, 0000. The PRESIDING OFFICER. The 601: clerk will call the roll. THE FOLLOWING-NAMED OFFICER FOR APPOINTMENT To be lieutenant general IN THE UNITED STATES NAVY TO THE GRADE INDICATED The assistant legislative clerk pro- WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND ceeded to call the roll. MAJ. GEN. WALTER S. HOGLE, JR., 0000. RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: Mr. McCAIN. Mr. President, I ask THE FOLLOWING-NAMED OFFICER FOR APPOINTMENT To be vice admiral IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- unanimous consent that the order for CATED WHILE ASSIGNED TO A POSITION OF IMPORTANCE REAR ADM. WALTER F. DORAN, 0000. the quorum call be rescinded. AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION THE FOLLOWING-NAMED OFFICER FOR APPOINTMENT The PRESIDING OFFICER. Without 601: IN THE UNITED STATES NAVY TO THE GRADE INDICATED WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND objection, it is so ordered. To be lieutenant general RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: ADJOURNMENT UNTIL 9:30 A.M. TOMORROW MAJ. GEN. JOHN L. WOODWARD, JR., 0000. To be vice admiral Mr. McCAIN. Mr. President, if there THE FOLLOWING NAMED OFFICER FOR APPOINTMENT VICE ADM. ARTHUR K. CEBROWSKI, 0000. is no further business to come before IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- CATED WHILE ASSIGNED TO A POSITION OF IMPORTANCE THE FOLLOWING-NAMED OFFICER FOR APPOINTMENT the Senate, I now ask unanimous con- AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION IN THE UNITED STATES NAVY TO THE GRADE INDICATED sent the Senate stand in adjournment 601: WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: under the previous order. To be lieutenant general There being no objection, the Senate, To be vice admiral MAJ. GEN. GREGORY S. MARTIN, 0000. at 7:39 p.m., adjourned until Wednes- REAR ADM. DENNIS V. MC GINN, 0000. THE FOLLOWING-NAMED OFFICER FOR APPOINTMENT THE FOLLOWING-NAMED OFFICERS FOR APPOINTMENT day, May 13, 1998, at 9:30 a.m. IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- IN THE UNITED STATES NAVY TO THE GRADE INDICATED CATED WHILE ASSIGNED TO A POSITION OF IMPORTANCE f UNDER TITLE 10, U.S.C., SECTION 624: AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION NOMINATIONS 601: To be rear admiral (lower half) Executive nominations received by To be lieutenant general CAPT. MICHAEL E. FINLEY, 0000. CAPT. GWILYM H. JENKINS, JR., 0000. the Senate May 12, 1998: LT. GEN. JOHN B. SAMS, JR., 0000. CAPT. JAMES A. JOHNSON, 0000.

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